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Journeys in it governance v2


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Journeys in it governance v2

  1. 1. Journey’s in IT Governance MISA Ontario Conference June 14 th 2010 [email_address]
  2. 2. Overview <ul><li>Common IT challenges municipalities face </li></ul><ul><li>What governance is – and how it addresses the challenges </li></ul><ul><li>Our experiences of recommending and implementing governance </li></ul><ul><li>Specific experience at the Town of Aurora </li></ul>
  3. 3. About us <ul><li>Founded in 1980 </li></ul><ul><li>Public-sector focus </li></ul><ul><li>A history of IT Strategic Planning (1989) </li></ul>
  4. 4. Some of our recent work <ul><li>IT Strategy & Governance </li></ul><ul><ul><li>Regina , Oshawa , Kitchener , Region of Waterloo , York Region, Waterloo , Oakville , Burlington , Whitby, Ajax, Aurora , Whitchurch-Stouffville </li></ul></ul><ul><li>GIS Strategies </li></ul><ul><ul><li>Region of Peel, Red Deer, Cambridge </li></ul></ul><ul><li>Strategic Studies </li></ul><ul><ul><li>Mississauga, Business Application Simplification Strategy, MISA Ontario Strategic Plan </li></ul></ul>
  5. 5. Everyone wants to be … <ul><li>… a technology leader in municipal services </li></ul>
  6. 6. Common current themes <ul><li>Demand/project overload (all organizations) </li></ul><ul><li>IT is grappling with changing focus from technical to business enabler / Partner from Supplier </li></ul><ul><li>Senior Managers on SMT represent IT poorly </li></ul><ul><li>Infrastructure typically good – applications and information flow is the challenge </li></ul><ul><li>Operating & maintaining existing technologies consume a large % of resources (industry around 70%) </li></ul>
  7. 7. Common current themes <ul><li>Tactical departmental technology projects (short term view) </li></ul><ul><li>Duplication of projects initiated in different departments </li></ul><ul><li>Most projects fail to fully meet expectations </li></ul><ul><li>Lack of shared accountability for IT projects </li></ul><ul><li>Senior managers feel IT is out of their control </li></ul><ul><li>Expectation vs. Delivery </li></ul>
  8. 8. <ul><li>“ Inadequate, and in many cases ad hoc IT governance, is one of the primary reasons why perceptions do not meet reality” </li></ul><ul><li>IT Portfolio Management: Step-by-Step </li></ul>
  9. 9. IT environment has changed … <ul><li>Small work group  large corporate/enterprise solutions </li></ul><ul><li>Inter-dependencies & integration complexity </li></ul><ul><li>IT projects are typically business transformation projects supported by technology </li></ul><ul><li>IT projects are not engineering projects </li></ul><ul><ul><li>Inexact specifications </li></ul></ul><ul><ul><li>Managing change </li></ul></ul><ul><ul><ul><li>people, </li></ul></ul></ul><ul><ul><ul><li>processes </li></ul></ul></ul><ul><li>IT projects must align with the business goals - otherwise why do it? </li></ul>
  10. 10. Reality check <ul><li>Technology presents infinite possibilities </li></ul><ul><li>Can’t do all that your customers want to do </li></ul><ul><li>Someone needs to decide what the organization’s priorities are – and it shouldn‘t be you </li></ul><ul><li>Requires collective decision making or senior direction setting </li></ul>
  11. 11. Define IT Governance <ul><li>“ Specifying the decision rights and accountability framework to encourage desirable behaviour in the use of IT” </li></ul><ul><li>Weill & Ross, IT Governance </li></ul>You must know and be able to articulate what desirable and undesirable behaviors are
  12. 12. Components of IT Governance <ul><li>Decision making groups (e.g. membership, inter-relationships) </li></ul><ul><li>Policies & standards (e.g. architecture, software procurement policy) </li></ul><ul><li>Processes & methods (e.g. prioritization, ops) </li></ul><ul><li>Measurement (e.g. KPI reporting) </li></ul>
  13. 13. Components of IT Governance <ul><li>Decision making groups (e.g. membership, inter-relationships) </li></ul><ul><li>Policies & standards (e.g. architecture, software procurement policy) </li></ul><ul><li>Processes & methods (e.g. prioritization, ops) </li></ul><ul><li>Measurement (e.g. KPI reporting) </li></ul>desirable behaviors
  14. 14. Department/IT Alignment
  15. 15. IT governance is about <ul><li>The need to engage… </li></ul><ul><li> involve… </li></ul><ul><li> and </li></ul><ul><li> educate </li></ul>
  16. 16. <ul><li>“ A problem shared is a problem halved” </li></ul>
  17. 17. IT Governance Mechanisms <ul><li>Bodies/Groups </li></ul><ul><li>ELT/SMT/CMT </li></ul><ul><li>IT Strategy Committee </li></ul><ul><li>IT Steering Committee </li></ul><ul><li>IT Management Team </li></ul><ul><li>IT Leadership Team </li></ul><ul><li>Projects Approval Board </li></ul><ul><li>Architecture Team </li></ul><ul><li>Relationship Management </li></ul><ul><li>Project Management Office </li></ul><ul><li>Processes </li></ul><ul><li>Business planning </li></ul><ul><li>IT investment process </li></ul><ul><li>Architecture & exceptions </li></ul><ul><li>Service Level Agreements </li></ul><ul><li>Charge backs </li></ul><ul><li>Project/portfolio reporting </li></ul><ul><li>Project Management </li></ul><ul><li>Business value tracking </li></ul>Communication senior management announcements, portfolio reporting, formal decisions,
  18. 18. Typical municipal IT governance <ul><li>IT director/manager responsible for budgets and prioritization of projects </li></ul><ul><li>Department head level may have some projects in departmental budgets </li></ul><ul><li>SMT and/or Council </li></ul><ul><ul><li>“ This is a MUST-DO project” – imposes new priorities (regardless of impact) </li></ul></ul><ul><li>IT steering committees (where they are present) </li></ul><ul><ul><li>Dysfunctional, low level, turns into an IT user group </li></ul></ul><ul><li>Projects tend to be tactical responses, not strategic </li></ul>
  19. 19. Some are doing well where… <ul><li>IT has credibility, respect & is trusted </li></ul><ul><li>Good IT representation on SMT helps: </li></ul><ul><ul><li>the corporation focus on priorities </li></ul></ul><ul><ul><li>allows IT to ‘hold the line’ </li></ul></ul><ul><ul><li>ensure that the right resources are committed to solutions </li></ul></ul><ul><li>IT has defined professional standards & corporate policies are supported & endorsed </li></ul><ul><li>Business recognizes the value that IT bring to the table </li></ul><ul><li>IT is not seen as a bottleneck – IT has realized that its about getting things done – not being confined by its own capacity </li></ul>
  20. 20. Changing Attitudes? <ul><li>Preaching a similar message for the last 10 years. What’s different now? </li></ul><ul><li>We appear to be getting acceptance at the senior level </li></ul><ul><li>IT is now starting to be recognized as core to business service delivery </li></ul><ul><ul><li>End to End customer service </li></ul></ul><ul><li>CAO/SMT willingness to allocate time to IT </li></ul>
  21. 21. IT governance model © MIT Sloan School Centre for Information Systems Research
  22. 22. Governance bodies <ul><li>Define responsibility for each domain </li></ul><ul><li>Bodies must be representative to achieve corporate engagement </li></ul><ul><li>Corporate policy must support governance bodies (including budget processes) </li></ul><ul><li>Governance bodies must be sustained and reinforced (Council, SMT, Directors) </li></ul>
  23. 23.
  24. 24. Mapping Accountabilities
  25. 25.
  26. 26. Steering Committee Effectiveness The Bad, The Ugly The Good Sometimes large up to 25 members – unwieldy forum for decision making <ul><ul><ul><li>Smaller groups more effective </li></ul></ul></ul><ul><ul><li>Delegation leads to low level membership & lack the ability to look holistically </li></ul></ul><ul><ul><ul><li>Senior members more effective </li></ul></ul></ul><ul><ul><li>Defense of turf vs. corporate view </li></ul></ul><ul><ul><ul><li>Corporate view essential </li></ul></ul></ul><ul><ul><li>Can turn into an IT user group & communication forum </li></ul></ul><ul><ul><ul><li>Operating at the strategic level is more effective (but a willingness to get into the details is necessary) </li></ul></ul></ul>
  27. 27. Steering Committee Alternatives <ul><li>Do we need to run a democracy? Does everyone need to be represented? </li></ul><ul><ul><li>Small selected non-partisan Director level </li></ul></ul><ul><li>Re-use the Executive team (GM’s, CAO, IT Dir) </li></ul><ul><li>Re-use another existing forum </li></ul><ul><ul><li>Departmental Management Teams </li></ul></ul><ul><ul><li>Management Committee </li></ul></ul><ul><li>IT run with increased mandate for co-ordination function, reinforced by Senior support </li></ul>
  28. 28. Aurora: What we did <ul><li>IT Strategy May 2009 </li></ul><ul><li>One of central themes focused upon establishing governance and processes to support IT governance </li></ul>
  29. 29.
  30. 30. Key Governance Elements <ul><li>Executive IT Steering Committee = ELT </li></ul><ul><li>IT portfolio ranking process, aligned with corporate priorities = agreed corporate project priorities </li></ul><ul><li>Standard method for initiating projects = business cases + project forms – through EITSC </li></ul><ul><li>Improved project accountability and project resources = project sponsors, secondments, external resources </li></ul>
  31. 31. Additional Strategy Outcomes <ul><li>Re-organized IT into functional groups </li></ul><ul><li>Added 2 new staff – 1 Application Analyst, 1 Network Analyst </li></ul>
  32. 32. Lessons Learnt <ul><li>Achieving buy in at the Senior Level (sustaining buy in) </li></ul><ul><ul><li>“ Why are we doing this” </li></ul></ul><ul><ul><li>Establish the mantra “current project volume is unsustainable” </li></ul></ul><ul><li>It’s a new process for everyone, learn as you go – be ready to tweak and change as required </li></ul><ul><ul><li>We tweaked ranking mechanisms </li></ul></ul>
  33. 33. Lessons Learnt <ul><li>It is a journey, not an overnight process </li></ul><ul><li>Forms and processes don’t change behaviors </li></ul><ul><li>You win some, you lose some </li></ul><ul><ul><li>Celebrate and make examples of the successes </li></ul></ul><ul><ul><li>Roll with the punches – get tougher </li></ul></ul>
  34. 34. Lessons Learnt <ul><li>Learn to use the Governance bodies to your advantage </li></ul><ul><ul><li>Raise issues that a project sponsor hasn’t addressed (e.g. RFID) </li></ul></ul><ul><li>IT staff implications </li></ul><ul><ul><li>IT is in the spotlight </li></ul></ul><ul><ul><li>behavior and performance expectations </li></ul></ul><ul><ul><li>IT staff have to be business focused, even in a small shop </li></ul></ul>
  35. 35. Outcomes <ul><li>Escalated the level for IT </li></ul><ul><li>Corporate priorities defined </li></ul><ul><li>Major “business transformation” projects underway </li></ul><ul><li>Restructuring of IT Team allows supervisors to focus upon improving processes </li></ul><ul><li>IT has grown in importance / profile </li></ul><ul><ul><li>Seen as a Corporate success </li></ul></ul>
  36. 36. Summary <ul><li>Good corporate IT starts with good IT governance </li></ul><ul><li>Recognise the signs </li></ul><ul><ul><li>Project overload, business IT disconnect, “leave it to IT”, project failures </li></ul></ul><ul><li>Formalize governance and raise the level of business engagement </li></ul><ul><ul><li>Educate, engage and involve senior decision makers (size, impact, opportunity, capacity) </li></ul></ul><ul><ul><li>Let them see/share your pain </li></ul></ul><ul><li>More work (transparency + education is two-way) </li></ul><ul><ul><li>Leaders, departments and for IT </li></ul></ul><ul><li>Stick the course, the rewards will come </li></ul>
  37. 37. Questions?
  38. 38. Book recommendations <ul><li>IT Governance: How Top Performers Manage IT Decision Rights for Superior Results Peter Weill & Jeanne W Ross </li></ul><ul><li>Managing IT as a business : A survival guide for CEO’s </li></ul><ul><li>Mark D. Lutchen </li></ul><ul><li>IT Portfolio Management : Step by Step Bryan Maizlish, Robert Handler </li></ul>