ITGovernance_EstablishingWhoDecides

1、IT Governance:Establishing Who DecidesAndrew J. Clark (Syracuse University)OR1Value of organizations IT My interest in Governance Ineffective governance symptoms Why is it important - who cares? IT Governance model Conclusion2My interest in IT GovernanceRecent reading/researchNew CIO at SUFunctional

2、 area relationshipsEnterprise thinkingIT Governanceby Weill & Ross 3What 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”

3、, 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 Schrodingers Cats: Some Conceptual Tools for Thinking about Internet Governance”, page 6,

4、Background paper for the ITU Workshop in Internet Governance Geneva, 26-27 February 2004. Accessed November 15, 2005. Available at /osg/spu/forum/intgov04/contributions.html Internet4What is Governance?“Providing the structure for determining organizational objectives and monitoring performance to e

5、nsure 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 19995What is IT Governance?3. WikipediaInformation Technology Governance, IT

6、Governance or ICT Governance, is a subset discipline of Corporate Governance focused on information technology (IT) systems and their performance and risk management3.6What is IT Governance? (continued)44. Holland, Norma, EDUCAUSE Leadership Program, June 2005Describes the rules and procedures for m

7、aking 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.7IT Governance is: Decision rights Accountability Desirab

8、le behaviorsThe assignment of decision rights and the accountability framework to encourage desirable behaviors in the use of IT.8Symptoms of ineffective governance Low IT value IT barrier to strategies Ineffective IT mechanisms Cant explain governance Projects late & over budget Outsourcing seen as

9、 fix Changes frequently9Why is it important? IT Costs / Business value New business models Business risk Dependence on other entities Essential business knowledge Businesss reputation10Why is it important? (2)Research findings:Thoughtful design leads to above average returns on IT investmentsPercent

10、 of executives who can describe IT governance.11Governance 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)12What Decisions Need to be Made?(Domains)There are five major decisio

11、ns domainsPrinciplesInfrastructure strategiesArchitectureBusiness application needsInvestment and prioritization13Who has Decision & /or Input Rights?(Styles)Business MonarchyIT MonarchyFeudalIT DuopolyFederalAnarchy14Key players in Governance Archtypes5C-levelITBizBusiness MonarchyIT MonarchyFeudal

12、IT DuopolyFederalAnarchy5. Weill, P. & Ross, J.W. (2004)15How are Decisions Formed & Enacted?(Mechanisms) Decision-making structures Alignment processes Communication approaches16Mechanisms: Decision-making structures5Decision-making structure% usingCIO RankExecutive or senior management committee89

13、 %3.5* IT leadership committee comprising IT executives85 %3.8Process teams with IT members84 %3.4* Business/IT relationship managers83 %3.9* IT council comprising business and IT executives71 %3.7Architecture committee66 %3.1Capital approval committee55 %3.15. Weill, P. & Ross, J.W. (2004)17Mechani

14、sms: Alignment Processes6Alignment Process% usingCIO Rank* Tracking of IT projects and resources consumed96%3.4* Service-level agreements88%3.2Formally tracking business value of IT62%2.9Chargeback arrangements61%2.86. IBid18Mechanisms: Communication Approaches7Communication approach% usingCIO Rank*

15、 Work with managers who dont follow the rules90%3.2Senior management announcements88%2.9* Office of CIO or Office of IT governance85%3.6Web-based portals and intranets for IT79%2.97. Ibid19The Governance ModelThe “Harmony What-How Framework”StrategyGovernanceArrangementsPerformanceGoalsDesirableBeha

16、viorsGovernanceMechanismsMetrics &AccountabilitiesHowHowHowWhatWhatWhatWhat20Mapping Styles Against DomainsDomainsPrinciplesArchitectureInfrastructureBusiness ApplicationsInvestment & PrioritiesStylesInputDecisionInputDecisionInputDecisionInputDecisionInputDecisionBusiness MonarchyIT MonarchyFeudalF

17、ederalDuopolyAnarchy21SUs Mapping of Styles Against DomainsDomainsPrinciplesArchitectureInfrastructureBusiness ApplicationsInvestment & PrioritiesStylesInputDecisionInputDecisionInputDecisionInputDecisionInputDecisionBusiness MonarchyIT MonarchyFeudalFederalDuopolyAnarchy22Mapping Styles Against Dom

18、ainsDomainsPrinciplesArchitectureInfrastructureBusiness ApplicationsInvestment & PrioritiesStylesInputDecisionInputDecisionInputDecisionInputDecisionInputDecisionBusiness Monarchy0IT Monarchy1FeudalFederalDuopolyAnarchy083150036143182706071121307359201008090012118034659819330272730461530231763400110

19、03123How Top Financial Performers Govern8PrinciplesArchitectureInfrastructureBusiness NeedsInvestment & PrioritiesBusiness MonarchyProfitGrowthProfitProfitGrowthProfitGrowthIT MonarchyProfitFeudalGrowthFederalProfitDuopolyROAROAROAROAROA24Non-Profit IT Governance More Business Monarchies Less IT Mon

20、archies More Federal decision arrangements More Federal input arrangements More IT duopolies25Top 10 Leadership Principles Actively design governance Know when to redesign Involve senior managers Make choices Clarify exception handling26Top 10 Leadership Principles (continued) Provide right incentiv

21、es Assign ownership & accountability Design at multiple levels Provide transparency & education Implement common mechanisms27References Board Briefing on IT Governance , Available from http:/ 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,