F ROM THE B IG P ICTURE TO D AILY O PERATIONAL P ROCESSES 1

IT GOVERNANCE

FROM THE BIG PICTURE TO DAILY OPERATIONAL PROCESSES

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PURPOSE OF GOVERNANCE


Economist "The Shareholder Awakens"

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TYPES OF GOVERNANCE


White Board Ideas

• Enterprise - How does IT (or any department) fit in?

• IT• Sub-IT functions (network,

data center, applications, security, etc)

• Cross functional governance

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IT GOVERNANCE IS KEY Enterprises are sacrificing money, productivity and

competitive advantage by not

implementing effective IT governance

Executives need a better way to:

Direct IT for optimal advantage

Measure the value provided by IT

Manage IT-related risks


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• An apparel manufacturing company’s difficulties in installing supply chain software cost it an estimated US $200 million

• A publicly traded company admitted that a virtual collapse of its financial reporting system reduced its market value by one-third in a single day

• An operational meltdown after the merger of two transportation companies was traced to the inability to coordinate their IT systems

• A major airline’s supply chain transformation improved the forecast of demand, reduced procurement costs and increased service levels

• A technology products and services company saved US $12 billion by linking pieces of its supply chain and reducing inventory levels


IMPACT OF GOVERNANCE

Information Services

AS A CIO, WHAT BUSINESS ARE YOU IN?

Information Systems

(IS)Informati

on Technolo

gy(IT)


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CASE REVIEW


Business Intelligence at SYSCO

1. Read the excerpt from the case

2. Make notes about key governance issues

3. Prepare for group discussion

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INDIVIDUAL REVIEW


Your own organizationDescribe what governance policies and

processes you would design and apply to your own organization.

Large and small organizations shed different light to consider, such as degree of formality, legal considerations, resources required, time efficiency, ability to enforce decisions, etc.

Your insights into your specific situation are important to share, and for others to consider when building their own."

Your answers are for your private use. However …

Prepare a synopsis of key points for contributing to group conversation

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WHICH OF YOU USED A FRAMEWORK?COBIT

10www.SteveTarrConsulting.com

ITEC Support Group

Project Review Team

ITOC

Apps SteeringCommittees

PartnershipCommittee

ITEC

Vendor Plans / Roadmap

NWH Plans / Roadmap

Application Priorities

NewProjects

Decisio

n F

eedb

ackD

ecis

ion

Fee

db

ack

Decision Information

An IT Governance Model

details …

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FINAL COMMENTS, 1 OF 4

If there are decisions to be made someone will exercise the authority to do that

In lean times governance loses its relevance

If a senior executive overrides decisions, people will not cooperate

It's worth asking if an organization with capital constraints can afford to invest time and money in a process that may, ultimately, frustrate the staff and waste resources


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Every project requires an executive sponsor

Every proposal must include a business case

Workflow must be assessed and redesign included

Standards apply

No end runswww.SteveTarrConsulting.com

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Committee chairs must sit on the next higher level in the decision tree

A structure with unconnected levels of governance WILL break down.

Each committee level must understand what it can decide on its own… and when it can advise.


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FINAL COMMENT

Wenzlick's First LawIf you find yourself believing you should go out on a limb, make up a list of those who must go out on the limb with you. Include anyone who owns a saw, knows someone who owns a saw and anyone who has money and knows where to buy a saw. www.SteveTarrConsulting.com

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F ROM THE B IG P ICTURE TO D AILY O PERATIONAL P ROCESSES 1