2. 2
Executive summary
• IT governance is the #1 predictor of value generated by IT, yet many organizations struggle to organize their governance effectively.*
• Current IT governance does not address the changing goals, risks, or context of the organization so IT spend is not easily linked to
value.
• The right people are not making the right decisions about IT.
• Organizations do not have a governance framework in place that optimally aligns IT with the business objectives and direction.
• Implementing IT governance requires the involvement of key business stakeholders who do not see IT’s value in governance and
strategy.
• The current governance processes are poorly designed, creating long decision-making cycles and driving non-compliance with
regulation.
Establish IT-business fusion. In governance, alignment is not enough. Merge IT and the business through
to ensure business success.
With great governance comes great responsibility. Involve relevant business leaders, who will be impacted by IT
outcomes, to take on governing responsibility of IT.
Let IT manage and the business govern. IT governance should be a component of enterprise governance, allowing
leaders to focus on managing.
3. 3
IT governance is…
An enabling framework of decision-making context and accountabilities for related processes.
A means of ensuring business-IT collaboration, leading to increased consistency and transparency in
decision making and prioritization of initiatives.
A critical component of ensuring delivery of business value from IT spend and satisfaction with IT.
IT Governance is not…
An annoying, finger-waving roadblock in the way of getting things done.
Limited to making decisions about technology.
Designed tacitly; it is purposeful, with business objectives in mind.
A one-time project; you must review and revalidate the efficiency.
4. 4
Determine which business stakeholders will be impacted or
involved in the redesign process
Identify the stakeholders for the IT governance redesign
It is vital to identify key business and IT stakeholders before the IT governance redesign has begun.
Consider whose input and influence will be necessary in order to align with the business context and
redesign the governance framework accordingly.
Example: some
governments mandate
that organizations
develop and implement
an IT governance
framework.
Example: the CEO
wants to know how
IT will support the
achievement of
strategic corporate
objectives.
Example: the CIO
would like validation
from the business
with regards to
prioritization criteria.
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5
Executive summary
Situation…
IT governance is the #1 predictor of value generated by IT, yet many
organizations struggle to organize their governance effectively.*
Current IT governance does not address the changing goals, risks, or context
of the organization so IT spend is not easily linked to value.
The right people are not making the right decisions about IT.
Complication…
Organizations do not have a governance framework in place that optimally
aligns IT with the business objectives and direction.
Implementing IT governance requires the involvement of key business
stakeholders who do not see IT’s value in governance and strategy.
The current governance processes are poorly designed, creating long
decision-making cycles and driving non-compliance with regulation.
Resolution….
Successful completion of the IT governance redesign will result in the following outcomes:
1. Align IT with the business context.
2. Assess the current governance framework.
3. Redesign the governance framework.
4. Implement governance redesign.
Establish IT-business fusion. In
governance, alignment is not
enough. Merge IT and the
business through governance to
ensure business success.
With great governance comes
great responsibility. Involve relevant
business leaders, who will be
impacted by IT outcomes, to take
on governing responsibility of IT.
Let IT manage and the business
govern. IT governance should be a
component of enterprise
governance, allowing IT leaders to
focus on managing.
6. 6
IT governance sets direction through
prioritization and decision making, and
monitors overall IT performance.
Governance aligns with the mission and
vision of the organization to guide IT.
Management is responsible for executing
on, operating, and monitoring activities as
determined by IT governance.
Management makes decisions for
implementing based on governance
direction.
Don’t blur the lines between governance and management; each has a unique role to
play. Confusing these results in wasted time and confusion around ownership.
Management
Governance
Drawing the line…
Image Source: ISACA, 2012
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7
IT Governance
Enterprise Governance
Authority for enterprise governance falls to the board and
executive management.
Governance of IT is a component of enterprise governance.
Engage in
Influence
The business should engage in IT governance and IT should
influence the direction of the business.
Responsibilities Include:
• Provide strategic direction for the
organization.
• Ensure objectives are met.
• Set the risk standards or profile.
• Delegate resources responsibly. Responsibilities Include:
• Build structure, authority, process, and membership
designations in a governance framework.
• Ensure the IT organization is aligned with business goals.
• Influence the direction of the business to ensure business
success.
8. 8
A well-designed IT governance framework will help you to:
3 Optimize the speed and quality of decision making.
2 Align IT with the mission and the vision of the organization.
1 Make sure IT keeps up with the evolving business context.
Meet regulatory and compliance needs in the external environment.
4
9. Stakeholders
A stakeholder power map helps to visualize the importance of various
stakeholders and their concerns so you can prioritize your time according to the
most powerful and most impacted stakeholders.
1. Evaluate each stakeholder in terms of power and involvement, impact, and
support.
• Power: How much influence does the stakeholder have? Enough to drive the
project forward or into the ground?
• Involvement: How interested is the stakeholder? How involved is the
stakeholder in the project already?
• Impact: To what degree will the stakeholder be impacted? Will this
significantly change how they do their job?
• Support: Is the stakeholder a supporter of the project? Neutral? A resister?
2. Map each stakeholder to an area on the included power map template (slide
4) based upon the level of his or her power and involvement (high or low).
• Vary the size of the circle to distinguish stakeholders that are highly
impacted by the IT strategy from those who are not.
• Color each circle to show each stakeholder’s estimated or gauged level of
support for the project.
9
10. Stakeholder continued…
3. Ask yourself if the power map looks accurate. Is there someone who
has no involvement in IT strategy development, but should?
• A) For example, if a CFO who has the power to block project
funding is heavily impacted and not involved, the success of the
IT strategy will be put at risk.
Draw a dotted circle to show where that stakeholder needs to be
located (increased involvement and support), and an arrow with a
dotted line to signify the needed change.
4. Some stakeholders may have influence over others.
• B) For example, a COO who highly values the opinion of the
Director of Operations would be influenced by that director.
• Draw an arrow from one stakeholder to another to signify this
relationship.
• Focus on key players: relevant stakeholders who have high power,
should have high involvement, and are highly impacted.
Engage the stakeholders that are impacted most and have the power to
impede IT strategy success.
10
Role
Role
Strongly
Impacted
Moderately
Impacted Role
Weakly
Impacted
Supporter Neutral Resister
CEO
CIO
CFO
Chief
Architect
Marketing
Head
Production
Head
Low Power
CFO
A) needs to be
engaged
Required
position
Director
of Ops
COO
Role
Keep satisfied Key players
Minimal effort Keep informed
Role
Role
Strongly
Impacted
Moderately
Impacted Role
Weakly
Impacted
Supporter Neutral Resister
CEO
CIO
CFO
Chief
Architect
Marketing
Head
Production
Head
High Power
Low Power
High
Involvement
Low
Involvement
CFO
A) needs to be
engaged
Required
position
Director
of Ops
COO
Role
11. 11
Legend
(copy these elements to the
map on the left as needed)
Power
High
Keep satisfied Key players
Low
Minimal effort Keep informed
Low High
Involvement
<Role>
<Role>
Needs to be
engaged
Influences
Current position
Required position
Role
Role
Strongly Impacted
Moderately Impacted
Role Weakly Impacted
Supporter
Neutral
Resister
Stakeholder Mapping
12. 12
Firefighter
• Delivers lower value
• Duplication of effort
• Unclear risk profile
• High risk exposure
Business Partner
• Increased speed of decision making
• Aligned with business priorities
• Optimized utility of people, financial,
and time resources
• Monitors and mitigates risk and
compliance issues
Without business-IT fusion, IT will go in a different direction, leading to a
divergence of purpose and outcomes. IT can transform into a fused partner of the
business by ensuring that they govern toward the same goal.
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13
Metric
Formula
While benefits of governance are often qualitative, the power of effective
governance can be demonstrated through quantitative financial gains.
Scenario 1 – Realizing Expected
Gains
Scenario 2 – Mitigating Unexpected
Losses
Track the percentage of initiatives that
provided expected ROI year over year. The
optimization of the governance framework
should generate an increase in this metric.
Monitor this metric for continuous
improvement opportunities.
Track the financial losses related to non-
compliance with policy or regulation. An
optimized governance framework should
better protect the organization against
policy breach and mitigate the possibility
and impact of “rogue” actions.
Cost of non-compliance in year 2 – cost of
non-compliance in year 1
The expected result should be negative.
ROI of all initiatives / number of initiatives
in year 2 – ROI of all initiatives / number of
initiatives in year 1
The expected result should be positive.
Lets talk about the Benjamin's….
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