Chris Vanderweylan

Successfully using standards to engage Successfully using standards to engage the relevant people in the organisationthe relevant people in the organisation

Chris van der WeydenCIO & Director, Technology and Educational Development

OZeWAI 2007OZeWAI 2007

Presentation OutlinePresentation Outline

• Chisholm Institute and the TAFE Sector• ICT Management Has a Problem• Standards and Frameworks• Best Practice Frameworks from the OGC• Governance Theory Applied: Case Study

Seven CampusesSeven Campuses

Chisholm InstituteChisholm Institute

Annual Operating BudgetNo. Staff (EFT)No. StudentsInternational StudentsOn-shoreOff-shore

$94,300,0001,000 36,500

2,027827

1,200

Sources of Funding 2006Sources of Funding 2006

Government Recurrent,

71.6%

Fee-for-Service, 19.0%

Student Fees and Charges,

6.5%

Other, 2.8%,

Student DeliveryStudent Delivery

2005 DELIVERY BY INSTITUTECHISHOLM 2005 & 2006

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2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

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The Skills / Jobs MismatchThe Skills / Jobs Mismatch

Job Pathways

University pathway

VET pathway

No qualifications

Current

20%

30%

50%

Future

24%

62%

14%

Figures from the Centre for the Economics of Education and Training website http://www.education.monash.edu.au/centres/ceet/CEET

Enthusiastic ICT Hype:ICT transforms educational opportunities…the tsunami of e-learning products...adopt XXX or our students will miss out...

Senior Management Response:fiercely scrutinise ICT budgetsrationalise ICT departmentsgrow impatient with IT rhetoric & hypebelieve IT is oversold & under-deliveredoutsource everything in sight

Why?Why?

Lack of knowledge about IT at a Snr Mgt?

Requires more technical expertise?

Created as separate entity?

Complexity (increasing)?

IT strategy gets less scrutiny at a high level than other dimensions of business

What research suggests…What research suggests…

Weak strategic links with IS investmentMisalignment between IT and org’nInappropriate mgmt of IT-related changeLack of formal benefits mgmt approachInability to leverage existing infrastructuresRelationship gap between IT & Snr MgtPoor use of sourcingPoor process innovation:

• Paving the cowpaths!

ICT Project FailureICT Project Failure

(From John Thorp http://www.thorpnet.com/2005)

Project Success MeasuresProject Success Measures

• Commonly cited PM metrics are:o On timeo On budgeto To specification, quality

• Good measures for delivery of business value from IT investments?NO!

NO! NO!

POOR IT Governance???

Definition of GovernanceDefinition of Governance

Dictionary.com defines “Governance” as “government; exercise of authority; control” or further, “a method or system of government or management.”

A simply and open definition from The Australian Concise Oxford Dictionary is “the act, manner, fact, or function of governing, sway, control.”

So therefore, Governance is the process by which control is exercised and management of a domain undertaken.

Governance of ICTGovernance of ICT

•What decisions must be made?

•Who should make these decisions?

•How will we make and monitor decisions?

(Weill & Ross 2004)

Governance of ICTGovernance of ICT

“consists of leadership and organisational structures and processes that ensure that the organisation’s IT sustains and extends the organisation’s strategies and objectives”

(ITGI: Board Briefing on IT Governance 2001:9)

“system by which the current and future use of ICT is directed and controlled. It involves evaluating and directing the plans for the use of ICT to support the organisaition and monitoring this use to achieve plans. It includes the strategy and policies for using ICT within an organisation

AS8015 Corporate Governance of ICT

The Governance QuestionThe Governance Question

• Are we managing our investments in ICT such that:

we are getting optimal value; at an affordable cost; and with an acceptable level of risk?

ITGI, Val IT Framework

Is evidenced through

Effective IT Governance

with the aim of monitoring & controlling IT investments & associated activities to ensure the delivery of business value from IT

Maxims

Structures Processes

Capabilities

Effective ICT GovernanceEffective ICT Governance

“Enterprises that actively design their top-level IT governance arrangements make and implement better IT-related decisions”Gartner

“Effective IT Governance is the single most important predictor of the value an organization generates from IT”Peter Weill and Jeannie W. Ross, IT Governance

“Firms with focused strategies and above average IT Governance had more than 20% higher profits than other firms following the same strategies”Peter Weill and Jeannie W. Ross, IT Governance

(Gillies 2005)

Theory of ActionTheory of Action

Theories-in-Use vs Espoused Theory

Chris Argyris & Donald Schön Organisational Learning II 1996

Theory of ActionTheory of Action

Single-loop & Double-loop learning

Values of Model I are:Values of Model I are:

• Win, do not lose• Suppress negative feelings• Emphasize rationality• Control environment and task unilaterally • Protect self and others unilaterally• Advocating courses of action which discourage inquiry e.g.. "Lets not talk about the past, that's over."• Treating ones' own views as obviously correct• Face-saving moves such as leaving embarrassing facts unstated• Defensive relationships and Low freedom of choice• Reduced production of valid information• Little public testing of ideas

Values of Model II are:Values of Model II are:

• Valid information • Free and informed choice• Internal commitment• Sharing control • Participation in design and implementation of action• Attribution and evaluation illustrated with relatively directly observable data• Surfacing conflicting view• Encouraging public testing of evaluations• Minimally defensive relationships• High freedom of choice • Increased likelihood of double-loop learning

Standards & FrameworksStandards & Frameworks

• AS 8000-2003, Good Governance Principles Standard• AS 8015-2005, Governance of ICT Standard• ISO/IEC 20000, IT Service Management Standard• AS/NZS 27001:2006, Information Security Mgt Standard• MSP, Programme Management Framework• PRINCE2, Project Management Framework • M_o_R Management of Risk Framework• ITIL, IT Service Management Framework• Val IT, IT Investment Framework• COBIT, IT Management Framework

Standards & FrameworksStandards & Frameworks

• AS 8000-2003, Good Governance Principles• AS 8015-2005, Governance of ICT• ISO/IEC 20000, IT Service Management• AS/NZS 27001:2006, Information Security Mgt• MSP, Programme Management Framework• PRINCE2, Project Management Framework • M_o_R Management of Risk• ITIL, IT Service Management Framework• Val IT, IT Investment Framework• COBIT, IT Management Framework

AS8015 Governance of ICTAS8015 Governance of ICT

1. Establish clearly understood responsibilities

2. Plan ICT to best support the organization

3. Acquire ICT validly

4. Ensure the ICT performs well when required

5. Ensure ICT conforms with formal rules

6. Ensure ICT use respects human factors

AS8015 Principles

Val ITVal IT

OGC Best Practice GuidanceOGC Best Practice Guidance

MSP: Managing Successful Programmes

PRINCE2: Projects in Controlled Environments

ITIL: IT Infrastructure Library

M_o_R: Management of Risk

Managing Successful ProgrammesManaging Successful Programmes

• Vision Driven

• Bounded vs Unbounded Change

• Outcomes rather than Outputs

Managing Successful ProgrammesManaging Successful ProgrammesP

rogr

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Project One

Project Three

Project Five

Project Four

Project Six

Project Two

PRINCE2PRINCE2

• Business Case and benefits focused• Integrated suite – Org’nal change• Range of implementation materials• Product focused and therefore tangible• Evolved over 30 years by practitioners• Crown Copyright & IP is free of royalty

PRINCE2 DisadvantagesPRINCE2 Disadvantages

• Framework (What) not a Method (How)• Can be seen as an overhead• PRINCE2 can be compliance driven• Scaling is important, Small vs Large project

ITIL CharacteristicsITIL Characteristics

Non ProprietaryApplicable to any organization without royalty

Non-prescriptiveMature practice framework not methodology

Best PracticeContinuously refined by practitioners v2 to v3

Good PracticeYesterdays Best Practice is today’s Common Practice

M_o_RM_o_R

• Risk Cause and Ownership• Likelihood or Probability• Impact• Value• Countermeasures• Residual Risk• Risk Status

M_o_RM_o_R

Strategic Risks

Programme Risks Operational Risks

Project Risks

Change Management Objectives

Day-to-Day Management Objectives

Governance Theory Applied at Chisholm Institute

Organisational Strategy * prospector * analyser * defender

ALIGNMENT

Role of IS/IT in organisation *opportunistic *comprehensive *efficientSourcing of IT *insourcing *selective sourcing *outsourcingIS Structure *decentralised *federal/shared *centralised View of IT infrastructure * enabling * dependent * utility

Dimensions of the OrganizationDimensions of the Organization

Strategy

Structure &Systems

Technology

Processes

People &Culture

Dimension of the OrganizationDimension of the Organization

IT Governance ArchetypesIT Governance Archetypes

SubheadText

Style Who Has Decision or Input Rights?

Executive Monarchy A group of senior management or individual executives and excludes IT executives acting independently.

IT Monarchy Individual or groups of IT executives.

Feudal Organisational unit leaders and/or key process owners.

Federal Senior Management and organisational groups may also include IT executives.

IT Duopoly IT executives and one other senior manager working together.

Anarchy Each individual user. (Weill & Ross 2004)

DEPUTY CEOEXEC. DIRECTOR PROGRAMS 1

Strategic & Profile PlanningRegional Campuses: Rosebud & Bass Coast

Berwick TECCentre for Professional Education

& Training Practice(Frankston)

DIRECTORCENTRE FOR

INTEGRATED ENGINEERING & SCIENCE

Manufacturing Engineering & LogisticsComputer Engineering & Applied Science

Electrical, Electronics EngineeringNATA Lab, CNC

(Dandenong/Berwick)

DIRECTORCENTRE FOR

SERVICES & ARTS SERVICESHospitality

Design, Multimedia & ArtsHair & Beauty

Food Processing Unit(Frankston/Dandenong)

DIRECTORCORPORATE SERVICES

DIVISION (CFO)2

Financial ServicesBuilt EnvironmentOffice of Students

(Dandenong)

DIRECTORCENTRE FOR

ADVANCED BUSINESS SKILLSBusiness & Management

Administration & Customer ServiceBusiness IT

Customer Service(Berwick/Cranbourne)

DIRECTORCENTRE FOR

VOCATIONAL PATHWAYSLanguage & Cultural Studies

inc Indigenous StudiesELICOS

(Dandenong)

DIRECTORCENTRE FOR

SUSTAINABLE TECHNOLOGIESAutomotive Technology

Building & Furniture, PlumbingHorticulture & CLM

Water Operations/ISU(Frankston/Cranbourne)

DIRECTORTECHNOLOGY &

EDUCATIONAL DEVELOPMENTDIVISION (CIO) 3

Educational Development ServicesLibrary & Information Management

IT Services(Cranbourne)

DIRECTORCENTRE FOR

INTEGRATED HEALTH & COMMUNITY WELL-BEING

Health & Community CareChildren’s & Community ServicesAdvanced Professional Studies

(Berwick/Frankston)

DIRECTORINTERNATIONAL &

ENTERPRISE DIVISIONContinuing Education/Short Courses

International Student ProgramsInternational Projects

(Dandenong)

DIRECTORORGANISATIONAL

CULTURE & COMMUNICATIONS DIVISION 4

Marketing & Corporate Communications Learner & Community Engagement

Human Resource Development(Frankston)

CEO

Board responsibilities1 Exec Officer, Strategic Development & Monitoring Committee 2 Exec Officer, Resource Management Committee3 Exec Officer, Audit & Risk Management Committee4 Board Secretary

Italics indicates a commercial business unit –at least one per Centre

Campus/LGA responsibilities to be assigned to theSix Centre Directors

Chisholm StructureChisholm Structure

Priorities Areas for Technology and Priorities Areas for Technology and Educational DevelopmentEducational Development

1. ICT Governance – AS80152. Links between ITS, EDS and L&IM3. Leadership of Educational Support4. Leadership of IS and IT Services5. ICT Operations and Projects6. Integration of Business Systems

Chisholm Institute Board

Resource Management

CommitteeAudit & RiskManagementCommittee

Strategic Development &

MonitoringCommittee

Executive Committee

Strategic Business

DevelopmentCommittee (SBDC)

ICT GovernanceCommittee

(IGC)Board of Studies

Chisholm Directors Group

(CDG)

School / DivisionalICT SteeringCommittees

Quality ManagementCommittee

OccupationalHealth & Safety

Committee

Co

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cil

Co

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Co

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Chief Executive Officer

Functional relationship Monitoring relationship

Institute Committee StructureInstitute Committee Structure

IT Services RestructuredIT Services Restructured

IT ServicesManager

Team Leader Change &

Procurement

Team Leader Information Systems

Team LeaderInfrastructure

Team LeaderClient Services

Snr Incident Support

Officer x 3

Incident Support

Officers x 4

Systems Engineer

Network Engineer

Web Developer

.NET Developers x 3

Desktop Engineer

Change & Procurement Officer

Departmental Assistant 0.4

Training Coordinator

PRINCE2 Governance StructurePRINCE2 Governance StructureICT Governance Committee

Project Board

Senior User Executive Senior Supplier

Team Leader

Project Manager

Project Support

Project Assurance

Lines of authority

Assurance

Lines of guidance

From the supplier

From the customer

AS8015 Governance of ICTAS8015 Governance of ICT

AS8015 Governance of ICTAS8015 Governance of ICT

AS8015 Governance of ICTAS8015 Governance of ICTChisholm

ICT Governance Committee

School/Division ICT Steering Committees

ReferencesReferencesOGC Frameworks

www.best-management-practice.com

IT Governancewww.itgi.org

Val IT and Cobitwww.isaca.org

Service Mgt User Groupwww.itsmf.org.au

IS Developmentwww.dsdm.org

Governance Consultancywww.infonomics.com.au

Thank youThank you

Questions?

[email protected]