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IT Governance: Establishing Who Decides

IT Governance: Establishing Who Decides. OR. Andrew J. Clark (Syracuse University). Value of organization’s IT. My interest in Governance Ineffective governance symptoms Why is it important - who cares? IT Governance model Conclusion. IT Governance by Weill & Ross.

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IT Governance: Establishing Who Decides

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  1. IT Governance:Establishing Who Decides OR Andrew J. Clark (Syracuse University)

  2. Value of organization’s IT • My interest in Governance • Ineffective governance symptoms • Why is it important - who cares? • IT Governance model • Conclusion

  3. IT Governance by Weill & Ross My interest in IT Governance • Recent reading/research • New CIO at SU • Functional area relationships • Enterprise thinking

  4. What is Governance? In the English language, “governance” is an old term which, like “civil society”, fell into disuse, but which has been revived, given new meaning, and attained widespread currency. Like “government” and “governor”, it is derived from the Latin work “gubernare” – the action of steering a ship. A popular definition reflects these ancient Roman roots by defining governance as “steering, not rowing.[1] [1] MacLean, Don, “Herding Schrodinger’s Cats: Some Conceptual Tools for Thinking about Internet Governance”, page 6, Background paper for the ITU Workshop in Internet Governance Geneva, 26-27 February 2004. Accessed November 15, 2005. Available at http://www.itu.int/osg/spu/forum/intgov04/contributions.html Internet

  5. What is Governance? “Providing the structure for determining organizational objectives and monitoring performance to ensure that objectives are obtained.”[2] [2] “OECD Principles of Corporate Governance, Organization for Economic Cooperation and Development, Directorate for Financial, Fiscal and Enterprise Affairs, SG/CG (99) 5 and 219, April 1999

  6. What is IT Governance? Information Technology Governance, IT Governance or ICT Governance, is a subset discipline of Corporate Governance focused on information technology (IT) systems and their performance and risk management3. 3. Wikipedia

  7. What is IT Governance?(continued)4 Describes the rules and procedures for making and monitoring decisions on strategic IT concerns. IT governance is the term used to describe how those persons entrusted with governance of an entity will consider IT in their supervision, monitoring, control and direction of the entity. 4. Holland, Norma, EDUCAUSE Leadership Program, June 2005

  8. IT Governance is: The assignment of decision rights and the accountability framework to encourage desirable behaviors in the use of IT. • Decision rights • Accountability • Desirable behaviors

  9. Symptoms of ineffective governance • Low IT value • IT barrier to strategies • Ineffective IT mechanisms • Can’t explain governance • Projects late & over budget • Outsourcing seen as fix • Changes frequently

  10. Why is it important? • IT Costs / Business value • New business models • Business risk • Dependence on other entities • Essential business knowledge • Business’s reputation

  11. Why is it important? (2) Research findings: Thoughtful design leads to above average returns on IT investments Percent of executives who can describe IT governance.

  12. Governance ModelThree Major Components • What decisions need to be made? • (Domains) • Who has decision and/or input rights? • (Styles) • How are the decisions formed and • enacted?(Mechanisms)

  13. What Decisions Need to be Made?(Domains) There are five major decisions domains • Principles • Infrastructure strategies • Architecture • Business application needs • Investment and prioritization

  14. Who has Decision & /or Input Rights?(Styles) • Business Monarchy • IT Monarchy • Feudal • IT Duopoly • Federal • Anarchy

  15. Key players in Governance Archtypes5 5. Weill, P. & Ross, J.W. (2004)

  16. How are Decisions Formed & Enacted?(Mechanisms) • Decision-making structures • Alignment processes • Communication approaches

  17. Mechanisms: Decision-making structures5 5. Weill, P. & Ross, J.W. (2004)

  18. Mechanisms: Alignment Processes6 6. IBid

  19. Mechanisms: Communication Approaches7 7. Ibid

  20. The Governance ModelThe “Harmony ‘What-How’ Framework” What What Governance Arrangements Performance Goals Strategy How How How Governance Mechanisms Metrics & Accountabilities Desirable Behaviors What What

  21. Domains Principles Architecture Infrastructure Business Applications Investment & Priorities Styles Input Decision Input Decision Input Decision Input Decision Input Decision Business Monarchy IT Monarchy Feudal Federal Duopoly Anarchy Mapping Styles Against Domains

  22. Domains Principles Architecture Infrastructure Business Applications Investment & Priorities Styles Input Decision Input Decision Input Decision Input Decision Input Decision Business Monarchy IT Monarchy Feudal Federal Duopoly Anarchy SU’s Mapping of Styles Against Domains √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √

  23. Domains Principles Architecture Infrastructure Business Applications Investment & Priorities Styles Input Decision Input Decision Input Decision Input Decision Input Decision Business Monarchy 0 IT Monarchy 1 Feudal Federal Duopoly Anarchy Mapping Styles Against Domains 30 27 0 6 0 7 1 12 1 73 59 18 20 10 0 8 0 9 0 3 0 0 1 2 1 18 0 3 83 46 59 81 30 93 27 14 4 6 36 34 27 30 15 15 30 23 17 6 0 0 0 1 0 1 0 3 0 1

  24. How Top Financial Performers Govern8

  25. Non-Profit IT Governance • More Business Monarchies • Less IT Monarchies • More Federal decision arrangements • More Federal input arrangements • More IT duopolies

  26. Top 10 Leadership Principles • Actively design governance • Know when to redesign • Involve senior managers • Make choices • Clarify exception handling

  27. Top 10 Leadership Principles (continued) • Provide right incentives • Assign ownership & accountability • Design at multiple levels • Provide transparency & education • Implement common mechanisms

  28. References Board Briefing on IT Governance , Available from http://www.isaca.org Click on Governance, then on Downloads, and scroll down to Anonymous Access Broadbent, M. & Kitzis, E., The New CIO Leader: Setting the Agenda and Delivering Results, Cambridge, Harvard Business School Press, 2004 Lane, D, CIO Wisdom: Best Practices from Silicon Valley’s Leading IT Experts, Upper Saddle River, Pearson Prentice Hall, 2004 McCredie, J. (2006) Improving IT Governance in Higher Education (Research Bulleting 18). Boulder, CO: EDUCAUSE Center for Applied Research. Available from http://www.educause.edu/ecar McNurlin, B.C. & Sprague Jr, R.H. (2004) Information Systems Management in Practice, Upper Saddle River, Pearson Prentice Hall. Weill, P. & Ross, J.W. (2004), IT Governance: How Top Performers Manage IT Decision Rights for Superior Results, Boston, Harvard Business School Press

  29. Contact Information: • Andrew J. Clark • Syracuse University • Chief Process Architect • E-mail: ajclark@syr.edu

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