Free: Executive Cheat Sheet: IT-Business Governance

EXECUT I VE CHEAT SHEET | IMPROV ING THE EFFECT I VENESS OF I T

IT-BUSINESS GOVERNANCE

An IT-business governance model provides a decision-rights and accountability framework to encourage desirable behavior in the use of IT. It ensures that technology positively impacts revenue generation, and helps IT leaders shift their focus from operational excellence to driving business growth and innovation.

HOW IT-BUSINESS GOVERNANCE MAKES A DIFFERENCE

With

Without

/ IT investments are more effectively aligned with bu- siness plans and strategies / Requests for IT investments and services are managed, measured, and tracked in a more consistent, repeatable, and flexible manner / IT resources are allocated to highest business-value-add activities such as portfolio investment management / Accountability is established or improved, with clearly defined roles and responsibilities / Organizational performance, responsiveness, reliability, maturity, staff development, and compliance are improved /

IT investments may not reflect enterprise-wide priorities and needs / Important IT decisions are made without the benefit of business input and collaboration / IT initiatives lack accountability for business value and results / Overall confusion regarding decision-making authority —lack of decisions or decision by default / IT programs create overlapping capabilities resulting in architectural complexity and other operational impacts / Prioritization across operating units is difficult resulting in an unfocused project portfolio and mediocre execution

EFFECTIVE IT GOVERNANCE WILL ANSWER 3 QUESTIONS

1. What decisions must be made to ensure effective management and use of IT?

2. Who should make these decisions?

3. How will these decisions be made and monitored?

SYMPTOMS OF POOR GOVERNANCE

1. Senior executives can’t describe your IT governance

2. Decisions take too long

3. There is little accountability for decisions

4. Senior management is less than happy

5. There is ineffective IT portfolio management — duplication, too many applications, low percentage spend on new initiatives

6. IT governance seen as overhead and “red-tape”

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EXECUT I VE CHEAT SHEET | IMPROV ING THE EFFECT I VENESS OF I T

HOW TO BALANCE ORGANIZATIONAL CULTURE AND OBJECTIVES?

Optimal targets based on requirements

Over-engineered / No room for creativity / Bureaucratic and slow / Too many metrics

Under-engineered / Free for all / Unrepeatable process / No metrics / No documentation / Relies on ‘heroes ’

Governance / Balanced / Repeatable process / Measurable / Documented and used / Continuously improved

/ Policy and procedure excess / Often ignored and undermined

THREE LEVELS OF IT GOVERNANCE

IT Governance on the executive level focuses on decisions and the domains with impact on the alignment of IT with the business, the overall IT Strategy and the investment. / Business application and IT service needs / IT principles / IT investment and prioritization The management level of IT governance focuses on directing the business of IT e.g. architectural topics, prioritization, and tactical measures. / Business application and IT service needs / IT principles / IT investment and prioritization On this level, the decision domains are broken down into more detail describing the day-to-day decision right allocations, e.g. describing the committees, roles and responsibilities within the project management practice (project sponsors, project managers, and project steering committee). This level is focused on executing and applying the principles and directions.

Executive Level

Management Level

Operational Level

/ Project governance / Application architecture governance / Data architecture governance / Infrastructure architecture governance, etc

HOW STRONG IS YOUR IT-BUSINESS GOVERNANCE? We’ve analyzed the IT-business governance attributes of top-performing companies and distilled them into eight questions. Have a go at the list below to see how you fare. 1. Can your executives accurately describe your IT governance procedure? 2. Are decisions made on time? 3. Is accountability for IT-decision-making known and followed? 4. Is governance performance measured and assessed as good? 5. Are project ROIs captured and closely correlated with project business cases? 6. Is your IT portfolio management effective (prevents duplication, focused on high-value initiatives)? 7. Is IT governance seen as enabling the business and IT strategy, as opposed to red tape that needs to be circumvented? 8. Does IT governance balance enterprise needs with BU needs?

If you answered “no” to any one of these questions, it’s time to take corrective action and realize the full potential of IT-business governance.

Visit us at www.wavestone.com or give us a call at (610) 854-2700 to speak with an IT-business governance expert.

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