Executive Cheat Sheet Improving the Effectiveness of IT
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
• IT investments are more effectively aligned with business 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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