Information Technology Governance: Key Success Factors Tim Brooks VP & CIO Saint Louis University AITP September 22, 2011 Tim Brooks - Saint Louis University 1
Discussion Points What is IT Governance? Why is it important? What are the Key Success Factors? Example IT Governance structure Tim Brooks - Saint Louis University 2
Rules of Engagement Your presentation I am offering one perspective and one set of experiences Your experiences and expertise add value to the discussion. So, speak up! Tim Brooks - Saint Louis University 3
What is IT Governance? IT Governance is about making choices about IT spend. Choices pertaining to: Strategic alignment Level of investment Where to invest Project prioritization Resource allocation Managing IT performance Tim Brooks - Saint Louis University 4
What is IT Governance? Corporate governance of IT involves evaluating and directing the use of IT to support the organization. - ISO/IEC 38500 IT governance is an integral part of enterprise governance and consists of the leadership and organizational structures and processes that ensure that the organization's IT sustains and extends the organization's strategies and objectives. - IT Governance Institute Tim Brooks - Saint Louis University 5
Governance vs. Management Governance is not Management Governance is not Operations Once high level investment decisions are made and resources allocated, then operations begin. Not a perfect comparison. Have you ever canceled a project? Tim Brooks - Saint Louis University 6
Why is IT Governance Important? Tim Brooks - Saint Louis University 7
Why is IT Governance Important? Limited funds Limited personnel Limited cycles Competing priorities Strategic alignment Rapidly changing environment Information Technology is an integral part of virtually every aspect of any organization. It is critical to success and generates competitive advantage. Tim Brooks - Saint Louis University 8
Value Add Effort According to the 2009 Cutter Benchmark Review, the greater the use of governance processes, the more company management believes that IT delivers value. Tim Brooks - Saint Louis University 9
Value Add Effort IT Governance Inst. (ITGI) 2009 CIO Survey 50% indicate that IT is very important to the enterprise 75% regularly align IT with business strategies However Despite the perceived importance, the majority stated that IT matters are discussed and decided on an ad-hoc basis! Tim Brooks - Saint Louis University 10
IT Governance IT governance needs to be a formal process, engrained in the overall organizational structure. IT governance needs to be integrated into the overall planning process: Strategic planning what to do Tactical planning how to do it Operational planning who, when and where Budget planning how much Tim Brooks - Saint Louis University 11
Key Success Factors Audience survey: What do you think are some of the factors that drive a successful IT governance process? Tim Brooks - Saint Louis University 12
# 1 Accountability and Responsibility Know who is in charge Who are the decision makers? Who are the funders? Who needs to be involved in IT decisions making? Tim Brooks - Saint Louis University 13
# 1 Accountability and Responsibility Who is in charge? Audience survey: How many of us consider ourselves to be part of the IT governance process? What role? Tim Brooks - Saint Louis University 14
# 1 Accountability and Responsibility Value acknowledgement must start at the top! Who is responsible for governance? All levels of the organization Board (Directors/Trustees) Management Project Managers Resource Managers Business Managers Tim Brooks - Saint Louis University 15
# 1 Accountability and Responsibility Who is responsible for governance? According to the ITGI 2009 Survey: Majority of respondents acknowledge that executive management is accountable for IT governance. Who is in charge in your organization? Tim Brooks - Saint Louis University 16
# 1 Accountability and Responsibility Understand where the responsibilities lie in your organization for IT governance. Know your role Know your boss s role Know your team s role(s) Tim Brooks - Saint Louis University 17
# 2 Strategic Alignment Strategic planning is critical to an effective IT governance framework. Strategy alignment ensures wise investment decisions Strategy sets priorities Planning determines what to do, how to do it, who is responsible, when it should be completed, etc. Tim Brooks - Saint Louis University 18
# 3 Governance Framework & Processes Must have a framework and processes in place to manage priorities: Decision making hierarchy Project Management (PM) framework Business Analysis (BA) Framework Effective capacity planning and resource allocation PPM project portfolio management system Data business intelligence; project dashboards and other forms of IT performance metrics Tim Brooks - Saint Louis University 19
# 4 Transparency Engage constituents to determine priorities Communicate priorities organization wide Communicate early and often Transparency avoids surprises How do you communicate your priorities? Communicate what you plan to do and of equal importance, what you do not plan to do! Tim Brooks - Saint Louis University 20
# 4 Transparency How do you determine AND communicate strategic alignment and priorities? Tim Brooks - Saint Louis University 21
# 4 Transparency Agreed Upon Ranking Criteria R1 Corrects risk to health, safety, security or reputation R2 Corrects risk of non-compliance or critical service disruption R3 Drives organization forward; tangible growth related outcome R4 Creates cost efficiencies or process improvements R5 Externally mandated deadline or project dependencies R6 More than 70% complete or less than 45 days to closing R7 No criteria apply Tim Brooks - Saint Louis University 22
Ranking Analysis Here Tim Brooks - Saint Louis University 23
# 5 Authorize and Empower Do not create unnecessary bottlenecks Effective governance models have authorized decision makers at many levels Share vision, develop strategy, tactics, operational plans and budgets Then let your leaders make decisions! Tim Brooks - Saint Louis University 24
# 6 Business Partnership Approach Is your IT organization business focused or technology focused? Take a business partnership approach with constituents. IT organization plays many roles strategic, tactical, operational, support, etc. Ultimately, the success of the IT organization is based on the success of its customer base. Must know all lines of business; know the customer Customers must understand and recognize the portfolio Spend time in your customers shoes Tim Brooks - Saint Louis University 25
# 6 Business Partnership Approach What is your Business Engagement Maturity? Process Enabler Process Leader Process Improvement KPI: Business Value Service Provider Reliable Service KPI: Service Levels Technology Provider Manage Technology KPI: Cost Effectiveness 2011 Gartner, Inc. Business Value of IT Applications and Benefits Realization Tim Brooks - Saint Louis University 26
# 7 Risk and Compliance Framework Integrate risk management into decision making process Compliance and risk management pressures will shape portfolio prioritization Risks involve information and therefore information technology. Governance of IT helps management tackle these risks. - ITGI 2009 Tim Brooks - Saint Louis University 27
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Current Issues to Consider Executive management style Organizational structure Organizational culture Operating in the cloud Outsourced & blended workforces Mergers and acquisitions Security and compliance Tim Brooks - Saint Louis University 29
Summary IT Governance is essential Should be formalized and engrained into organization IT Governance helps to ensure business value Key Success Factors 1. Accountability and Responsibility 2. Strategic Alignment 3. Governance Framework & Processes 4. Transparency 5. Authorize and Empower 6. Business Partnership Approach 7. Risk and Compliance Framework Tim Brooks - Saint Louis University 30
Questions and Comments Tim Brooks - Saint Louis University 31