The document outlines an implementation model for effective IT governance at Kig Insurance Company, addressing significant challenges such as low project success rates and lack of alignment between business units and IT. It defines goals, a technical plan, and a management plan aimed at enhancing IT decision rights, aligning IT projects with business strategy, and measuring the success of these projects using clearly defined metrics. Additionally, it details a risk management plan and critical success factors, highlighting the importance of top management commitment and effective communication.

1. An Implementation Model for Effective IT Governance Scott Lang & Rajeshwer Subramanian

2. Agenda Background Vision, Goals & Scope Technical Plan Management Plan Cost Plan Project Updates

3. Background

4. The Company KIG Insurance company Large IT shop (> 500 staff) IT Challenges “ 29% of IT Project succeeded while the remainder were either challenged or failed” The Standish Group International 2004 Third Quarter CHAOS Report

5. Problem Numerous silos Varied technologies Multiple decision points Separate Business Committees ____________________________ Lack of Business – IT alignment

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. Final Catalyst For This Project “ 57% of respondents in a CEO/CIO-level executives survey said that IT is very important to the delivery of corporate strategy” IT Governance Global Status Report 2006, IT Governance Institute Effective IT Governance is the single most important predictor of the value an organization generates from IT Weill, Peter & Ross, Jeane, IT Governance

8. Vision, Goals & Scope

9. Vision Statement To successfully execute IT projects that add value to the business by implementing IT Governance

10. Goals Make a business case for IT Governance (Why?) Identify areas that need to be addressed (Where?) Provide an Implementation Plan (What?) Explain how the plan will be implemented (How?) Provide timelines (When?) Identify resource needs, roles & responsibilities (Who?)

11. Scope Create a single Point alignment of project consideration Create an IT governance office Establish decision rights within business units Create best practices and processes Procure a single software package to be used for all project development and tracking Hire appropriate staff

12. Technical Plan

13. Technical Plan Definitions Governance Categories Change Model Utilized High Level Changes Proposed

14. Definitions Definition of IT Governance: Specifying the decision rights and accountability framework to encourage desirable behavior in the use of IT Courtesy: Weill, Peter, & Ross, Jeanne W., “IT Governance – How Top Performers Manage IT Decision Rights for Superior Results”, Harvard Business School Press

15. Definitions… Definition of successful IT Project: A successful IT project is one that creates the expected business value Needs to provide business value Business value expected should be defined Relevant metrics should be measured

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. Change Model Utilized Kotter’s Change Model Increase Urgency Build the Guiding Team Get the Vision Right Communicate for Buy-In Empowering Action

18. High Level Changes Proposed IT – Business Alignment Decision Rights Monitoring

19. Management Plan

20. Management Plan Table of Organization Corporate, IT Governance Office, Committees Stakeholder Communications Implementation Plan Risk Management Plan Critical Success Factors

21. Corporate Table of Organization Chief Executive Officer Chief Information Officer Chief Technology Officer Chief Financial Officer IT Governance Office

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. Stakeholder Communications The PM will provide the status reports Reports will be submitted by E-mail with milestones for face to face communications Department heads, CEO and CIO will be copied on all status reports Bi-weekly status reports to include: Milestones met Milestones missed Projected issues Projected solutions for projected issues Projected accomplishments by the next report

24. Implementation Plan

25. Risk Management Plan Risk 1: Not enough business involvement Training, Commitment Risk 2: Changing organizational decision rights may be time consuming Iterative (Think Big, Start Small, Work Smart) Risk 3: No clear metrics to measure Research industry metrics, Business needs

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. 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. Critical Success Factors Commitment from top management All changes recommended implemented and institutionalized within the first 2 years Balancing control & creativity Uncertainly in making project decisions decreased improving staff morale Increase Value Good mechanism to monitor and track value of projects put in place within the first 2 years

29. Cost Plan

30. Benefits & Costs

31. Payback Analysis

32. Project Updates

33. Some Milestones Met Creation of the IT Governance Office Hiring of a Program Manager Hiring of an IT Governance Leader Hiring needed PM’s Creation of a project steering committee Implementation of pilot projects

34. Unexpected Event Lead Project Manager of a Pilot Project Left Impact: Project delayed Resolution: Promote from within

35. Scope Change Original Scope – 5 year plan 1 year implementation per business unit Change requested from CIO 3 year complete roll out to encompass all business units

36. New - Adjusted Plan