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Some thoughts on_gov06102010


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Some thoughts on_gov06102010

  1. 1. Some Thoughts on Governance Peter M Salmon, CA Governance Lead – ISACA Wellington Chapter Wednesday, 6 October 2010
  2. 2. Why Governance? • Cost of IT failure is huge – US$ 6.2 trillion p.a by one estimate • 30% to 70% of IT projects – are late, over budget or don’t meet plan • Negative impact on services, productivity • Informed decision making is essential, now more than ever • Yet measurement of value is poor © October 2010 Peter M Salmon & ISACA 06/10/2010 Wellington Chapter 2
  3. 3. Value Measurement To what extent does your organisation measure the value of it’s investments in % IT? Don’t know 5 Fully 32 Not at all 10 Partly 53 Total 100 Source: ISACA Nine Country Survey on IT Value – July 2009 © October 2010 Peter M Salmon & ISACA 06/10/2010 Wellington Chapter 3
  4. 4. So why do we have a problem • Given what appears to be waste on a massive scale, why do we keep pouring money into projects in this way? What stops us from achieving improvement? • Clearly there is a need for action. To my mind ISO 38500 is a good starting point, especially when allied with supporting frameworks such as CoBit and ValIT. • Furthermore, there needs to be a much better understanding that IT of itself will not solve business problems, we need strong organizational change and process management as well. This must be coupled with a determination to identify, evaluate and monitor benefits on a continuing basis. © October 2010 Peter M Salmon & ISACA 06/10/2010 Wellington Chapter 4
  5. 5. Governance Enables • Intelligent cost cutting decisions avoiding the value destruction inherent in across the board (%) cuts • Direction of on-going investments to create and sustain value and, where this is at risk, take early and appropriate corrective action • Identification, definition, selection and execution of new investments such that they optimize value creation and sustainment, again taking early corrective action when this is at risk © October 2010 Peter M Salmon & ISACA 06/10/2010 Wellington Chapter 5
  6. 6. Need for Leadership • Effective Governance requires leadership • This leadership must , in my strongly held view, be combined with a sound ethical framework and robust values of integrity and straight dealing • Without leadership and values the plethora of acronyms such as CoBIT, SarBox etc will be worthless © October 2010 Peter M Salmon & ISACA 06/10/2010 Wellington Chapter 6
  7. 7. Effective Governance • Involves getting leadership understanding and commitment, • Implementing required processes and structures with clear roles, responsibilities and accountabilities, and • Implementing metrics and supporting tools. • It is not easy, but it is worth it. • Studies indicate considerable benefits from doing so, in the order of 20% © October 2010 Peter M Salmon & ISACA 06/10/2010 Wellington Chapter 7
  8. 8. The Four Ares Enterprise Proactive management of Alignment of process with activities seeking to business objectives. maximize benefits Strategy Value Business Are we doing the right Are we getting the things? benefits? Organisation Delivery Operations Are we doing them Are we getting them the right way? done well? Organizational structure and Organizational capability, process, and the integration resources available and of programmes within supporting infrastructure needs Adapted from the ‘Four Ares’ developed by John Thorp in The Information Paradox © October 2010 Peter M Salmon 06/10/2010 8 & ISACA Wellington Chapter
  9. 9. Conclusion • Important to develop a clear view of outcomes required • Clear focus on the overall perspective is invaluable • Getting the engagement of all parties is critical • Building a climate of trust aids resolution of governance situations, rather than a blame • When setting up structures and processes, harness culture and people to them, not in competition or combat with them © October 2010 Peter M Salmon 06/10/2010 & ISACA Wellington Chapter 9
  10. 10. ISACA – who are we? • History – ISACA was incorporated in 1969 by a small group of individuals who recognized a need for a centralized source of information and guidance in the growing field of auditing controls for computer systems. Today, ISACA has more than 95,000 members worldwide. • What We Offer & Who We Serve – ISACA provides practical guidance, benchmarks and other effective tools for all enterprises that use information systems. Through its comprehensive guidance and services, ISACA defines the roles of information systems governance, security, audit and assurance professionals worldwide. The COBIT, Val IT and Risk IT governance frameworks and the CISA, CISM and CGEIT certifications are ISACA brands respected and used by these professionals for the benefit of their enterprises. © October 2010 Peter M Salmon 06/10/2010 & ISACA Wellington Chapter 10
  11. 11. Some Resources • Websites – ISACA – Taking Governance Forward – IT Governance Institute – Center for Information Systems Research – Some Thoughts – Peter Salmon’s website – John Thorp – Infonomics – Bazpractice – Michael Krigsman – OGC Best Management Practice – Cranfield Information Systems Research Centre • Books – IT Savvy - Ross & Weill – Benefits Management – John Ward & Elizabeth Daniel – Waltzing with the Elephant – Mark Toomey – IT Governance – Ross & Weill © October 2010 Peter M Salmon & ISACA 06/10/2010 Wellington Chapter 11
  12. 12. Peter Salmon – Principal - Manning Charles & Associates Ltd • Peter is a senior executive and consultant with an extensive business management, professional services leadership and delivery background. He combines this with significant organisational change, business assessment, and resource management experience. This is complemented by having worked in a number of countries and a varied range of business sectors. • Peter's consulting experience includes IT consulting, general consulting, financial investigations and valuations, and litigation support. His other experience includes practice development, practice management including service economics and profitability, quality assurance and resource management. • This knowledge and expertise is combined with a strong record of achievement. For many years Peter has worked with CxO level executives, management and staff to provide business focused outcomes to issues. Should you wish to contact Peter on this or any other matter, where he might be able to assist then :- Web:- Some Thoughts – Peter Salmon’s website Phone:- +64 21 533651, or Email:- Mail:- PO Box 25197, Panama St, Wellington 6146, NZ © October 2010 Peter M Salmon 06/10/2010 & ISACA Wellington Chapter 12