Notes accompany this presentation. Please select Notes Page view. These materials can be reproduced only with written approval from Gartner. Such approvals must be requested via e-mail: [email protected]. Gartner is a registered trademark of Gartner, Inc. or its affiliates. IT Governance – Executives are from Mars, IT management is from Venus Peter Hidas
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IT Governance – Executives are from Mars, IT management is from Venus
IT Governance – Executives are from Mars, IT management is from Venus. Peter Hidas. IT Management Evolves — IT Governance Becomes a Critical Enabler. Business managers with a functional responsibility for IT. 2012. High. IT Governance Impact. IT Leadership Focus. - PowerPoint PPT Presentation
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Notes accompany this presentation. Please select Notes Page view. These materials can be reproduced only with written approval from Gartner.Such approvals must be requested via e-mail: [email protected] is a registered trademark of Gartner, Inc. or its affiliates.
IT Governance – Executives are from Mars, IT management is from Venus
Peter Hidas
IT Management Evolves — IT Governance Becomes a Critical Enabler
IT Leadership Focus
Company Leadership Focus
Internal Efficiency and Control
IT managers supporting
business management
Partnerships, Agility, Global Business
Ecosystem
2006
Business managers with a
functional responsibility for IT
20122012
IT Governance Impact
Low
High
Governance = styring
Management = få utført det som er bestemt
Key Issues
• How can IT governance be described pragmatically in terms of its scope and application?
• How do I develop the best IT governance strategy for my organization?
• What are best practices for implementing IT governance effectively?
IT Governance
"The processes that ensure the effective and efficient use of IT in enabling an organization to achieve its goals"
IT governance is made up of processes with activities, inputs, outputs, roles and responsibilities
IT's role is identified as "ensuring" as opposed to "executing"
The goals of IT governance are business goals
Key performance measures are effectiveness and efficiency
IT Demand Governance: The CIO's View …
• IT governance, broad in scope, a high-impact issue, a senior management operating responsibility
• However, business doesn't understand its responsibilities; therefore, it isn't committed, accountable or fully engaged
• IT governance is getting better, but going only from bad to neutral
• Business management's lack of understanding is a key inhibitor, but no compelling change is planned
• Business management and IT management each see IT governance as a way to control the other
Source: Gartner CIO IT Governance Survey, 2005
… Of a Persistent Challenge"To what extent is each of the following a priority for you in 200X?"
2004 20062005Delivering projects that enable business growth
Applying metrics to IS organization and services
Tightening security and privacy safeguards
Improving business continuity readiness
Improving the quality of IS service delivery
Consolidating the IS organization and operations
Developing leadership in the senior IS team
Attracting, developing and retaining IS personnel
Applying metrics to the IS organization and IT services
Improving the quality of IS service delivery
Flexible technology infrastructure
Consolidating the IS organization and operations
Delivering projects that enable business growth
Delivering projects that enable business growth
Improving the quality of IS service delivery
Attracting, developing and retaining IS personnel
Providing new types of information (for example, analytics)
IT Governance• Goals• Domains• Principles and Policies• Decision and Input Rights
IT Governance OperationsWhat Should IT Work
On?
Demand Governance
Business Primary Responsibility
Supply Governance
How Should IT Do What It Does?
IT Management Primary Responsibility
IT Governance Strategy
Goals: Why?
What do we want to achieve through IT governance?
Decision Rights: Who?
Who makes what decisions? And who has input rights?
Principles/Policies: How?
How should we view the use of IT in the business?
Domains: What?
Which areas need to be governed?
Example Domains and Decision Rights
Input Decision
Goals
Input Decision
Principles
Input Decision
Bus. App.Requirements
Input Decision
Company Architecture
Input Decision
IT Investment and Prioritization
Exec.Committee
SteeringCommittee
LOBManagers
ITLeadershipBus. Proc.
Owners
DomainStakeholders
IT Rel.Managers
Note: This chart is adapted from MIT Sloan Center for Information Systems Research and Gartner drawing on the framework of Peter Weill and Richard Woodham, 2002.
• LOB Managers — Business unit (BU) heads/presidents
• Steering Committee — IT steering committee (representatives from executive and LOB management and senior IT management)
• Exec. Committee — Executive committee (C-level executives) • IT Leadership — CIO, CIO Office and BU CIOs• Bus. Proc. Owners — Business process owners
• IT Rel. Managers — IT/business relationship managers
• Bus. App. Requirements — Business application requirements
Example IT Principle/Policy — Investment Decision Making
Implications:• Business units (project sponsors) are responsible for benefits
realization of IT expenditure; IT is responsible for IT cost management• IT is a critical functional component of the business unit, and
business unit leaders are expected to understand and articulate how to achieve business value from this function
• IT is responsible for providing the right information to educate the business on the value, cost and risk of its investment
Principle/Policy:
• Business unit leaders and department heads are responsible for determining IT investment and prioritization decisions to maximize the business value of IT
Rationale:
IT is the organization's largest capital investment, and we need to manage the investment of technology expenditure to maximize the return on that asset