IT Governance Introduction
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IT Governance from the – Organisational Imperative Collection – An Introduction Contents CIO Challenges Governance Definition IT Governance Challenge Symptoms of Ineffective Governance Measuring Effectiveness Governance Processes Designing Governance Next Steps
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This is a brief overview of IT Governance issues and how to approach improving IT governance.
Transcript of IT Governance Introduction
IT Governancefrom the
– Organisational Imperative Collection –
An Introduction
Contents CIO Challenges Governance Definition IT Governance Challenge Symptoms of Ineffective Governance Measuring Effectiveness Governance Processes Designing Governance Next Steps
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CIO Challenges
Revenue Increases
Complexity
Compliance
Profitability
CIO
Innovation
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What keeps the CIO up at night?
- It may not be what you think.Stories of phone calls at 3 a.m. that the network is down or that a critical customer interface has gone awry are part of the CIO’s daily grind. But in the changing world of today’s CIO where ‘keeping the lights on’ has become the price of admission, increasing focus on delivering business value drives new challenges in IT Governance.
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Governance – What is it?
In their highly regarded book “IT Governance” Peter Weill and Jeanne W. Ross define IT governance as:
“specifying the decision rights and accountability framework to encourage desirable behaviour in
using IT”
This definition establishes a few key dimensions in which IT governance is understood, refined, and evolved.
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What is IT Governance?
IT Governance addresses three key management decisions:
Source: MIT Sloan Center for Information Systems Research (CITR).
Management Decisions Governance Trade-Offs
What decisions need to be made?
Who has decision and input rights?
How are the decisions formed and enacted?
Enterprise scope vs. LOB scope
IT involvement vs. business involvement
All LOBs vs. some LOBs
Mix of required bodies, roles and processes (e.g. chargeback, service level management)
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The Challenge of IT Governance
Organisational Behaviour Current Desired
Governance Archetypes Business R&R IT R&R
Governance Mechanisms Decision making structures Alignment processes Communication Approaches
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Symptoms of Governance Ineffectiveness
Executives perceive lower than expected value fromIT investments
IT is a barrier rather than an enabler for New Strategies IT decisions are inconsistent and/or protracted. Management does not know how IT decisions are made. IT Projects are challenged to meet expected schedule,
budget, and/or functional requirements. Outsourcing is perceived as an alternative to in-house
IT delivery. IT Governance is fluid.
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Measuring Governance Effectiveness
Measuring performance of existing governance is often a prerequisite to understanding where the problem lies and should help identify suitable strategies for enhancing performance.Typical means of measuring effectiveness are through interviews and surveys to determine the organisational capability in the areas of: Governance Outcomes Success Measures Identify effective and ineffective areas of governance
Source: “IT Governance” by Peter Weill and Jeanne W. Ross
IT Governance Processes
Original Framework Sourced from Gartner 9
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Designing Effective andEfficient IT Governance
“A fixed or predetermined policy or mode of action.”
A basic or essential quality or element determining intrinsic nature or characteristic behavior…”
A rule or law concerning the functioning of natural phenomena or mechanical processes…”
The Guiding Principles are used in conjunction with the IT architecture, IT infrastructure, business application needs, and IT investment prioritisation to support the business to evaluate governance design alternatives and develop an overall design for the IT function.
Strategy Articulation RoadmapStrategy Articulation Roadmap
Guiding PrinciplesGuiding Principles
Design RequirementsDesign Requirements
Organizational StructureOrganizational Structure
Scope E2E ProcessesScope E2E Processes
Functional StructureFunctional Structure
Operational StructureOperational Structure
Conceptual ModelConceptual Model
Alternative DesignsAlternative Designs
Current State Organization BaselineCurrent State Organization Baseline
Enterprise IT Design
Functional and Operational Design
Basic ProcessesBasic Processes
E2E Process ModelE2E Process Model
ServicesServices
Leading Practices
The guiding principles should directly reflect the strategic intent of the organization
The guiding principles should define the role of the organization design in supporting the strategy
Guiding principles should ideally be used to generate, evaluate and select design alternatives
Guiding PrinciplesGuiding Principles
Definitions are from www.dictionary.com
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Next Steps
Establish a Business Case for IT Governance IT Governance Maturity and Performance Assessment Establish the “Desired” State Define the IT Governance Improvement Plan Execute!
