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Keller Graduate School of Management class - PM600 - this was the final presentation - created and presented by Scott Lang & Rajeshwer Subramanian

We were a 2 man team working over the length of the course creating and developing this project.

Hoping to show presentation skills and the understanding of the principles of project management

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  1. 1. An Implementation Model for Effective IT Governance Scott Lang & Rajeshwer Subramanian
  2. 2. Agenda <ul><li>Background </li></ul><ul><li>Vision, Goals & Scope </li></ul><ul><li>Technical Plan </li></ul><ul><li>Management Plan </li></ul><ul><li>Cost Plan </li></ul><ul><li>Project Updates </li></ul>
  3. 3. Background
  4. 4. The Company <ul><li>KIG Insurance company </li></ul><ul><li>Large IT shop (> 500 staff) </li></ul><ul><li>IT Challenges </li></ul><ul><ul><li>“ 29% of IT Project succeeded while the remainder were either challenged or failed” </li></ul></ul><ul><ul><li>The Standish Group International </li></ul></ul><ul><ul><li>2004 Third Quarter CHAOS Report </li></ul></ul>
  5. 5. Problem <ul><ul><li>Numerous silos </li></ul></ul><ul><ul><li>Varied technologies </li></ul></ul><ul><ul><li>Multiple decision points </li></ul></ul><ul><ul><li>Separate Business Committees </li></ul></ul><ul><ul><li>____________________________ </li></ul></ul><ul><li>Lack of Business – IT alignment </li></ul>
  6. 6. Current Business Units & Alignment VP Unit Manager - Property Development Manager Unit Manager - Auto Unit Manager - Life Change Control Manager Architect Systems Analyst Developer Developer Systems Analyst Developer Developer Developer Developer Systems Analyst
  7. 7. Final Catalyst For This Project <ul><li>“ 57% of respondents in a CEO/CIO-level executives survey said that IT is very important to the delivery of corporate strategy” </li></ul><ul><ul><li>IT Governance Global Status Report 2006, IT Governance Institute </li></ul></ul><ul><li>Effective IT Governance is the single most important predictor of the value an organization generates from IT </li></ul><ul><ul><li>Weill, Peter & Ross, Jeane, IT Governance </li></ul></ul>
  8. 8. Vision, Goals & Scope
  9. 9. Vision Statement <ul><li>To successfully execute IT projects that add value to the business by implementing IT Governance </li></ul>
  10. 10. Goals <ul><li>Make a business case for IT Governance (Why?) </li></ul><ul><li>Identify areas that need to be addressed (Where?) </li></ul><ul><li>Provide an Implementation Plan (What?) </li></ul><ul><li>Explain how the plan will be implemented (How?) </li></ul><ul><li>Provide timelines (When?) </li></ul><ul><li>Identify resource needs, roles & responsibilities (Who?) </li></ul>
  11. 11. Scope <ul><li>Create a single Point alignment of project consideration </li></ul><ul><li>Create an IT governance office </li></ul><ul><li>Establish decision rights within business units </li></ul><ul><li>Create best practices and processes </li></ul><ul><li>Procure a single software package to be used for all project development and tracking </li></ul><ul><li>Hire appropriate staff </li></ul>
  12. 12. Technical Plan
  13. 13. Technical Plan <ul><li>Definitions </li></ul><ul><li>Governance Categories </li></ul><ul><li>Change Model Utilized </li></ul><ul><li>High Level Changes Proposed </li></ul>
  14. 14. Definitions <ul><li>Definition of IT Governance: </li></ul><ul><ul><li>Specifying the decision rights and accountability framework to encourage desirable behavior in the use of IT </li></ul></ul>Courtesy: Weill, Peter, & Ross, Jeanne W., “IT Governance – How Top Performers Manage IT Decision Rights for Superior Results”, Harvard Business School Press
  15. 15. Definitions… <ul><li>Definition of successful IT Project: </li></ul><ul><ul><li>A successful IT project is one that creates the expected business value </li></ul></ul><ul><ul><li>Needs to provide business value </li></ul></ul><ul><ul><li>Business value expected should be defined </li></ul></ul><ul><ul><li>Relevant metrics should be measured </li></ul></ul>
  16. 16. Governance Categories Are we doing the right things? Are we doing them the right way? Are we getting the benefits? Are we getting them done well? Strategy Architecture Value Delivery Courtesy: IT Governance Institute, “The Val IT Framework”
  17. 17. Change Model Utilized <ul><li>Kotter’s Change Model </li></ul><ul><ul><li>Increase Urgency </li></ul></ul><ul><ul><li>Build the Guiding Team </li></ul></ul><ul><ul><li>Get the Vision Right </li></ul></ul><ul><ul><li>Communicate for Buy-In </li></ul></ul><ul><ul><li>Empowering Action </li></ul></ul>
  18. 18. High Level Changes Proposed <ul><li>IT – Business Alignment </li></ul><ul><li>Decision Rights </li></ul><ul><li>Monitoring </li></ul>
  19. 19. Management Plan
  20. 20. Management Plan <ul><li>Table of Organization </li></ul><ul><ul><li>Corporate, IT Governance Office, Committees </li></ul></ul><ul><li>Stakeholder Communications </li></ul><ul><li>Implementation Plan </li></ul><ul><li>Risk Management Plan </li></ul><ul><li>Critical Success Factors </li></ul>
  21. 21. Corporate Table of Organization Chief Executive Officer Chief Information Officer Chief Technology Officer Chief Financial Officer IT Governance Office
  22. 22. IT Governance Office Table of Organization Program Manager IT Governance Leader Project Manager Project Manager Project Manager Team Member Team Member Team Member Team Member Team Member Team Member Team Member Team Member Team Member
  23. 23. Stakeholder Communications <ul><li>The PM will provide the status reports </li></ul><ul><li>Reports will be submitted by E-mail with milestones for face to face communications </li></ul><ul><li>Department heads, CEO and CIO will be copied on all status reports </li></ul><ul><li>Bi-weekly status reports to include: </li></ul><ul><ul><li>Milestones met </li></ul></ul><ul><ul><li>Milestones missed </li></ul></ul><ul><ul><li>Projected issues </li></ul></ul><ul><ul><li>Projected solutions for projected issues </li></ul></ul><ul><ul><li>Projected accomplishments by the next report </li></ul></ul>
  24. 24. Implementation Plan
  25. 25. Risk Management Plan <ul><li>Risk 1: Not enough business involvement </li></ul><ul><ul><li>Training, Commitment </li></ul></ul><ul><li>Risk 2: Changing organizational decision rights may be time consuming </li></ul><ul><ul><li>Iterative (Think Big, Start Small, Work Smart) </li></ul></ul><ul><li>Risk 3: No clear metrics to measure </li></ul><ul><ul><li>Research industry metrics, Business needs </li></ul></ul>
  26. 26. Risk Management Matrix Risk Item Description of Risk Impact Severity Contingency Plan 1. Process change Resistance to doing things differently Morale, time line High Track successes and reward accomplishments 2. Not enough business involvement Training, Commitment Schedule, if people are not trained, the project will take more time Medium Track successes, survey those who have been trained – inform management to keep them committed 3. Changing organizational decision rights Moving the decisions on projects out of the individual business units Morale, time line High Obtain clear support from upper management and have them inform all involved that they are behind the project 4. No clear metrics to measure Without a measurement tool it is hard to gauge success and keep things moving in a timely manner Time line High Build a metric from the first task projects to apply to the remainder of the project
  27. 27. Step Step Process Risk Factors Max Wideman’s process for dealing with risk Step 5 Step 4 Step 3 Consequence 2 Probability 1 Event D O C U M E N T R E S P O N D A N A L Y S E I D E N T I F Y
  28. 28. Critical Success Factors <ul><li>Commitment from top management </li></ul><ul><ul><li>All changes recommended implemented and institutionalized within the first 2 years </li></ul></ul><ul><li>Balancing control & creativity </li></ul><ul><ul><li>Uncertainly in making project decisions decreased improving staff morale </li></ul></ul><ul><li>Increase Value </li></ul><ul><ul><li>Good mechanism to monitor and track value of projects put in place within the first 2 years </li></ul></ul>
  29. 29. Cost Plan
  30. 30. Benefits & Costs
  31. 31. Payback Analysis
  32. 32. Project Updates
  33. 33. Some Milestones Met <ul><li>Creation of the IT Governance Office </li></ul><ul><li>Hiring of a Program Manager </li></ul><ul><li>Hiring of an IT Governance Leader </li></ul><ul><li>Hiring needed PM’s </li></ul><ul><li>Creation of a project steering committee </li></ul><ul><li>Implementation of pilot projects </li></ul>
  34. 34. Unexpected Event <ul><li>Lead Project Manager of a Pilot Project Left </li></ul><ul><li>Impact: </li></ul><ul><li>Project delayed </li></ul><ul><li>Resolution: </li></ul><ul><li>Promote from within </li></ul>
  35. 35. Scope Change <ul><li>Original Scope – 5 year plan </li></ul><ul><ul><li>1 year implementation per business unit </li></ul></ul><ul><li>Change requested from CIO </li></ul><ul><ul><li>3 year complete roll out to encompass all business units </li></ul></ul>
  36. 36. New - Adjusted Plan