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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

IT Governance:Establishing Who Decides

OR

Andrew J. Clark (Syracuse University)

slide2

Value of organization’s IT

  • My interest in Governance
  • Ineffective governance symptoms
  • Why is it important - who cares?
  • IT Governance model
  • Conclusion
slide3

IT Governance

by Weill & Ross

My interest in IT Governance

  • Recent reading/research
  • New CIO at SU
  • Functional area relationships
  • Enterprise thinking
slide4

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

slide5

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

slide6

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

slide7

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

slide8

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
slide9

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
slide10

Why is it important?

  • IT Costs / Business value
  • New business models
  • Business risk
  • Dependence on other entities
  • Essential business knowledge
  • Business’s reputation
slide11

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.

slide12

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)
what decisions need to be made domains
What Decisions Need to be Made?(Domains)

There are five major decisions domains

  • Principles
  • Infrastructure strategies
  • Architecture
  • Business application needs
  • Investment and prioritization
who has decision or input rights styles
Who has Decision & /or Input Rights?(Styles)
  • Business Monarchy
  • IT Monarchy
  • Feudal
  • IT Duopoly
  • Federal
  • Anarchy
key players in governance archtypes 5
Key players in Governance Archtypes5

5. Weill, P. & Ross, J.W. (2004)

how are decisions formed enacted mechanisms
How are Decisions Formed & Enacted?(Mechanisms)
  • Decision-making structures
  • Alignment processes
  • Communication approaches
mechanisms decision making structures 5
Mechanisms: Decision-making structures5

5. Weill, P. & Ross, J.W. (2004)

the governance model the harmony what how framework
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

mapping styles against domains

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
su s mapping of styles against domains

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

mapping styles against domains23

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

non profit it governance
Non-Profit IT Governance
  • More Business Monarchies
  • Less IT Monarchies
  • More Federal decision arrangements
  • More Federal input arrangements
  • More IT duopolies
top 10 leadership principles
Top 10 Leadership Principles
  • Actively design governance
  • Know when to redesign
  • Involve senior managers
  • Make choices
  • Clarify exception handling
top 10 leadership principles continued
Top 10 Leadership Principles (continued)
  • Provide right incentives
  • Assign ownership & accountability
  • Design at multiple levels
  • Provide transparency & education
  • Implement common mechanisms
references

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

slide29

Contact Information:

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