Académique Documents
Professionnel Documents
Culture Documents
IT Governance Themes
1. Governance Definition 2. Effective Governance & Governance Decisions and Archetypes 3. Governance and Management 4. Governance Mechanisms 5. Importance of Good Governance 6. Characteristics of Top Governance Performers 7. Additional Information
Governance
Providing the structure for determining organizational objectives and monitoring performance to ensure that objectives are attained. (OECD 1999)
IT Governance
Specifying the decision rights and accountability framework to encourage desirable behavior in using IT. IT governance is not about making specific IT decisionsmanagement does thatbut rather determines who systematically makes and contributes to those decisions,
(Weill & Ross 2004, p. 2).
Governance Components
Strategy: Set of choices Desirable behaviors: Beliefs and culture of organization defined and enacted by strategy, mission statements, etc. Assets Human, financial, physical, intellectual property, information & IT, relationships Governance of assets: Through organizational mechanisms such as committees & procedures
(Beyer and Sproull 1981)
In IT Governance
Formal and informal relationships Assign decision rights to specific individuals or groups of individuals
In IT governance
Defines mechanisms for formalizing relationships Rules and operating procedures to ensure objectives are met
IT Governance Themes
1. Governance Definition 2. Effective Governance & Governance Decisions and Archetypes 3. Governance and Management 4. Governance Mechanisms 5. Importance of Good Governance 6. Characteristics of Top Governance Performers 7. Additional Information
Effective Governance
Actively designedset of IT governance mechanisms (committees, budgeting processes, approvals, and so on) that encourage behavior consistent with the organizations mission, strategy, values, norms, and culture, (Weill & Ross 2004, p. 2-3).
Can overcome limitations of organizational structure
IT principles
IT architecture
IT infrastructure
Governance as a system
Decision IT principles IT architecture IT Application infrastructure needs strategies IT investment
Archetype
Domain monarchy
IT monarchy Federal Duopoly
Feudal
Anarchy
IT Governance Themes
1. Governance Definition 2. Effective Governance & Governance Decisions and Archetypes 3. Governance and Management 4. Governance Mechanisms 5. Importance of Good Governance 6. Characteristics of Top Governance Performers 7. Additional Information
Management
Process of making and implementing decisions
IT Governance Themes
1. Governance Definition 2. Effective Governance & Governance Decisions and Archetypes 3. Governance and Management 4. Governance Mechanisms 5. Importance of Good Governance 6. Characteristics of Top Governance Performers 7. Additional Information
2. Alignment processes
2. Transparent
3. Suitable
IT Governance Themes
1. Governance Definition 2. Effective Governance & Governance Decisions and Archetypes 3. Governance and Management 4. Governance Mechanisms 5. Importance of Good Governance 6. Characteristics of Top Governance Performers 7. Additional Information
IT is expensive
Focus IT spending on strategic priorities
IT is pervasive
Well-defined IT governance arrangements distribute IT decision-making to those responsible for outcomes, (Weill and Ross 2004, p. 15)
IT Governance Themes
1. Governance Definition 2. Effective Governance & Governance Decisions and Archetypes 3. Governance and Management 4. Governance Mechanisms 5. Importance of Good Governance 6. Characteristics of Top Governance Performers 7. Additional Information
Harmonize business objectives, governance approach, governance mechanisms, performance goals and metrics Balance multiple performance goals Governance models blend centralized and decentralized decision-making Tension around IT decisions, such as standardization and innovation, are made transparent
IT Governance Themes
1. Governance Definition 2. Effective Governance & Governance Decisions and Archetypes 3. Governance and Management 4. Governance Mechanisms 5. Importance of Good Governance 6. Characteristics of Top Governance Performers 7. Additional Information
Additional Information
Chapter 2: Five Key IT Decisions: Making IT a strategic asset Chapter 3: IT Governance Archetypes for Allocating Decision Rights Chapter 7: Government and Not-For-Profit organizations Chapter 8: Leadership Principles for IT Governance References
Chapter 2
IT Principles
What is the enterprises operating model? What is the role of IT in the business? What are ID-desirable behaviors? How will IT be funded?
IT Architecture
What are the core business processes of the enterprise? How are they related? What information drives these core processes? How must the data be integrated? What technical capabilities should be standardized enterprise-wide to support IT efficiencies and facilitate process standardization and integration? What activities must be standardized enterprisewide to support data integration? What technology choices will guide the enterprises approach to IT initiatives?
IT Infrastructure
What infrastructure services are most critical to achieving the enterprises strategic objectives? For each capability cluster, what infrastructure services should be implemented enterprise-wide and what are the service-level requirements of those services? How should infrastructure services be priced? What is the plan for keeping underlying technologies up to date? What infrastructure services should be outsourced?
Chapter 3
IT Monarchy
Individuals or groups of IT executives make decisions about IT architecture
Feudal
Business unit, key process owners or their delegates, region, or function Does not facilitate business-wide decisionmaking
Federal
Equivalent to central and state governments working together
C-level executives and business units or processes
IT executives as additional participants
Business leaders have different interests than business unit leaders Biggest, most powerful business units get most attention and have greatest influence Management teams and executive committees resolve inherent conflicts
IT Duopoly
Bilateral agreement between IT executives and one other group Advantages
Two decision-making parties can achieve federal model objectives with simpler management structure Central IT can view enterprise as a whole and look for opportunities Manage adherence to IT architecture
Disadvantage
Expensive and ineffective for organization-wide issues
Anarchy
Each individual user makes local decisions based on own needs Expensive to support and secure Very few enterprises have formally sanctioned anarchy governance models
Chapter 7
Not-for-Profits
IT governance in not-for-profits similar to for-profits Different approaches come from broader definition of public value and ability to develop external capabilities and coproduction Cultural norms focus on consensus, transparency, equity
Affect governance design
Authorizing environment
Potential clients or customers, funding sources, political influences Not for profit authorized to fulfill charter by clients, funding, political influences
Capabilities
Resources in the form of money and authority to create capabilities Legislation, regulation, influence can require other organizations to add capabilities that help not-forprofit meet goals
Public Value
All three components (authorizing framework, capabilities & public value) must be aligned Goal for managers to create public value to maximum extent possible given authorizing environment expectations and available internal and external capabilities
Chapter 8
Senior management senses low value from IT investments IT often seen as barrier to implementing new strategies Mechanisms to make IT decisions are slow or contradictory Senior management cannot explain IT governance IT projects often run late or are over budget Senior management sees outsourcing as a quick fix to IT problems Governance changes frequently
References
See Beyer, J., and Sproull, L., Ed. Nystrom, P.C., and Starbuck, W.H., 1981, Handbook of Organization Design, Volume 2, New York, Oxford University Press Moore, M., 1995, Creating Public Value: Strategic Management in Government, Harvard University Press, Harvard, MA Nestor, S., 2000, International Efforts to Improve Corporate Governance: Why and How, Organization for Economic Cooperation and Development Organization for Economic Cooperation and Development, Directorate for Financial, Fiscal and Enterprise Affairs, OECD Principles of Corporate Weill, P., and Ross., J.W., 2004, IT Governance: How Top Performers Manage IT Decisions Rights for Superior Results, Harvard Business School Press, Boston, MA