ISO IEC 29382 -The New Standard for ICT Governance

8/16/2019 ISO IEC 29382 -The New Standard for ICT Governance

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itSMF-NL Spring 2008 Conference

"Best Practices in IT Management:

BEYOND ITIL, BEYOND CONTROL"

April 22, 2008 Hotel & Congrescentrum De Reehorst , Ede , Nederland

July 21, 2010 1

Christophe Feltus

Member of the ISO Study Group on ICT Governance

Public Research Centre Henri Tudor,

29, Rue John F. Kennedy

L-1855 Luxembourg

[email protected]

ISO/IEC 29382 - the new standard

for ICT Governance


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"Best Practices in IT Management: BEYOND ITIL, BEYOND CONTROL" 2

Outline

ICT Governance definitions

SG on ICT Governance

itSMF involvement

Interim Report

Beyond ISO 29382

Scope Application

Objectives

6 principles

Model for Corporate Governance of ICT

Conclusions


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Some definitions

AS 8015 – Australian National Standards

Corporate Governance of ICT is the system by which the current andfuture use of ICT is directed and controlled. It involves evaluating anddirecting the plans for the use of ICT to support the organization andmonitoring this use to achieve plans. It includes the strategy and policiesfor using ICT within an organization. (Corporate Governance of Information and Communication Technology; January 2005).

OECD Corporate Governance

Corporate governance involves a set of relationships between acompany‘s management, its board, its shareholders and other stakeholders. Corporate governance also provides the structure throughwhich the objectives of the company are set, and the means of attainingthose objectives and monitoring performance are determined. Good

corporate governance should provide proper incentives for the board andmanagement to pursue objectives that are in the interests of the companyand its shareholders and should facilitate effective monitoring. (OECDCode on Corporate Governance)


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Some definitions

ITGI (IT Governance Institute)

IT Governance is the responsibility of the board of directors and executivemanagement. It is an integral part of enterprise governance and consists

of the leadership and organisational structures and processes that ensure

that the organisation‘s IT sustains and extends the organisation‘s

strategies and objectives. (Board Briefing, 2 nd edition; 2003).

World Bank Definition of Corporate Governance

Corporate governance refers to the structures and processes for the

direction and control of companies. Corporate governance concerns the

relationships among the management, the Board of Directors, the

controlling shareholders and other stakeholders. Good corporate

governance contributes to sustainable economic development byenhancing the performance of companies and increasing their access to

outside capital.


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Some definitions

MIT Sloan Center for Information Systems Research :

IT Governance is specifying the decision rights and accountability

framework to encourage desirable behaviour in the use of IT. (MIT CISR Working Paper No. 326; April 2002).

University of Tasmania

The survey of the literature by academics from the University of Tasmania(Webb, Phyl, Pollard, Carol, and Ridley, Gail (2006), Attempting to DefineIT Governance: Wisdom or Folly?, Proceedings of the 39th Hawaii International Conference on Systems Sciences) brings out the ‗elements‘that are common to a range of suggested definitions. The elements are:strategic alignment, delivery of business values, performancemanagement, risk management, policies and procedures, and control andaccountability. Their resultant definition is : IT Governance is the

strategic al ignment of IT with the business such that max imum bus iness value is achieved th rough the developmen t and

maintenance of effective IT contr ol and accoun tabi l i ty, perfo rmance

management and risk management.


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Outline



itSMF involvment

Interim Report

Beyond ISO 29382

Scope Application

Objectives

6 principles


Conclusions


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Study Group in ISO

JTC1 : Information Technology Standards

JTC1 / SC7 : Software and System Engineering

JTC1 / SC7 / WG25 : IT Operations (service management)

Basically : Study Group in WG25

Study Group Chair : Al iso n Holt (New Zeland) Co-Chair : Ed Lewis (Aus tralia)

Members : Alwyn Smit, South AfricaMelanie Cheong, South Africa

Jyrki Lahnalahti, Finland

Craig Pattison, itSMFI/New ZealandDarcie Destito, United States

Gargi Keeni, India

Sushil Chatterji, ISACA/ITGI

Brian Cusack, New Zealand

Christophe Feltus, Luxembourg

Yoshiyuki Hirano, Japan

K.T. Hwang, Korea

Bill Powell, United States

Dennis Ravenelle, itSMFI

Hella Shrader, United Kingdom

Mark Toomey, Australia

Mikhail Pototsky, Russian Federation/itSMFI

Max Shanahan, ISACA/ITGI

Luis Rosa, Spain

Jenny Dugmore, UK.


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Study Group in ISO

In Seoul (2006) :

Reduce – if not remove – the confusion in the professional and the

academic literature about the topic

Resolutions :

- New SG

- 1st

report- Fast Track

In Moscow (May 2007) :

Preparation of 1st report Definition of ICT Governance

What is ICT Governance ?


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Study Group in ISO

Montreal (November 2007)

Fast Track on Australian Standard on ICT Governance

Accepted in July

Resolution of comments on Fast Track : 149 Canada : 2

Spain : 1

France : 5

Italy : 10

Japan : 10

Korea : 1

Luxembourg : 46

New Zealand : 6

UK : 4

Sweden : 9

USA : 15

South Africa : 40

1st report

NWI


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Outline



itSMF involvement

Interim Report

Beyond ISO 29382

Scope Application

Objectives

6 principles


Conclusions


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ISO – itSMF liaison (by WG)


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ISO – itSMF liaison (by WG)


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ISO 20000 - The standard describes the controls needed to effectively deliver services that meet the needs of the customer and business

requirements.

The processes described in ISO 20000 underpin an effectivegovernance framework and therefore need to be closely aligned toany proposed ICT Governance standard.

All reviewed stand ards have a relationship w ith ICT Governance

and many sec tions ov erlap no t on ly in comparis on to ISO/IEC

38500 standard b ut also amongs t th e indiv idual rev iewed

s tandards . Any d raf ting o f a new in ternational ICT

Governance s tandard needs to take the above exis ting

standards into account and ensure that a) there are no

conf l ic ts and b) all go vern ance related sec tions are co vered .A weakness of all reviewed standards is arou nd the need for

strategic di rect ion and the implementat ion of contro ls to

suppor t and manage this area.

Link with ISO 20000


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The formal description it offers is:

“Governance is the coll ectiv e set of p rocedu res, po l icies, roles

and responsibi l i t ies , and organizational stru ctu res requ ired

to supp ort an effective decis ion-making process ” .

Advisory Board Paper


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Benefits of Governanc e : (Key wo rds )

Achieving business objectives by ensuring that each element of the mission and strategy are assigned and managed with a clearly understood and transparent decisions rights and accountability framework.

Defining and encouraging desirable behavior in the use of IT and in the executionof IT outsourcing arrangements.

Implementing and integrating the desired business processes into the organization.

Providing stability and overcoming the limitations of organizational structure.

Improving customer, business and internal relationships and satisfaction, and reducing internal territorial strife by formally integrating the customers, business

units, and external IT providers into a holistic IT governance framework.

Enabling effective and strategically aligned decision making for the IT Principlesthat define the role of IT, IT Architecture, IT Infrastructure, Application Portfolio and Frameworks, Service Portfolio, Information and Competency Portfolios and IT Investment & Prioritization.

Advisory Board Paper


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Outline



itSMF involvement

Interim Report

Beyond ISO 29382

Scope Application

Objectives

6 principles


Conclusions


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Interim Report

A review of national governance activities

The identification of a set of guiding principles for the development of an ICT

Governance standard to meet market requirements The identification of the ICT governance needs to be addressed in the

standard

An assessment of where ICT governance sits within JTC1

A review of elements of ICT governance in existing SC7 standards

Analysis to determine the level of standard required to sit above existingframeworks and methodologies without replacing or displacing existingmaterial. Identification of the sort of ―standard‖ required - TR, code ofpractice or guidelines

Analysis of what would need to be added to AS 8015 to meet these needs

Analysis of whether a maturity framework could be included from the outset

Liaison Relationships: Contributions requested from existing bodies ofknowledge

Call to action dependent on AS 8015 fast tack result (which is now known)


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Written and oral reports were presented to the ICT StudyGroup reviewing the state of different ICT Standards

environments within the different jurisdictions.

A general movement towards compliance frameworks was

reported in terms of legislation, Standards adoption andcontrol framework adoption (eg. CobiT, ITIL, and so on).

Several reports noted that regulatory requirements were

pending and that there is considerable momentum gathering

for comprehensive directives (both explicit and implicit). The

importance of ICT Governance and the current opportune

moment in time for ICT Governance advancement was

reported in each case.

Review of the status of ICT

Governance across different nations


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What is ICT Governance?

The Working Group should establish a Glossary of governanceterms. The Glossary especially should include definitions that help

to establish the difference between Governance and Management.The definitions must be compatible with those in existing ISOStandards

Director

Member of the most senior governing body of an organization.Includes owners, board members, partners, senior executives orsimilar, and officers authorized by legislation or regulation.

Management

Management is the process of controlling the activities required toachieve the strategic objectives set by the organisation's governingbody. Management is subject to the policy guidance andmonitoring set through corporate governance.


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What is ICT Governance?

The objective of governance is to determine and cause the desired

behavior and results to achieve the strategic impact of IT .

The system in which directors monitor, evaluate and direct IT management to

ensure effectiveness, accountability and compliance of IT

The active distribution of decision-making rights and accountabilities

among different stakeholders in an organization and the rules and procedures for making and monitoring those decisions to determine and

achieve desired behaviors and results .

who makes directing, controlling and executing decisions

how the decisions will be made

what information is required to make the decisions

what decision-making mechanisms should be required

how exceptions will be handled

how the governance results should be reviewed and improved


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Outline


SG on ICT Governance itSMF involvement

Interim Report

Beyond ISO 29382

Scope Application

Objectives

6 principles


Conclusions


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The ob jectiv e of this Standard is to provid e a framework of prin cip les fo r Director s to use when evaluating , directin g and monito ring the

use of info rmation techn ology (IT) in their org anizations .

Beyond ISO 29382 : scope


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Governance is dist inc t from management , and fo r the avo idance of

confu sion, the two concepts are clearly defined in the stand ard.

…the members of the go vernin g bod y may also occu py the key roles in m anagement .

I t prov ides guidance to those adv is ing, in forming, or ass is t ing

directo rs. They inc lude: • Senior managers.

• Members of gro up s mo nito ring the resou rces with in the org anization.

• External bu sines s or techn ical special ists , su ch as legal or accounting

special ists, retai l assoc iat ions , or profess ional bodies.

• Vendor s of hardw are, so ftware, communic ations and other IT pro ducts.

• Internal and external servic e pro viders (inclu ding co nsu ltants).• IT audito rs.

The stan dard is app licab le fo r all or gan izations, from the smallest, to

the largest, regardless of pu rpo se, desig n and ownersh ip struct ure.

Beyond ISO 29382 : scope


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Outline



Interim Report

Beyond ISO 29382

Scope Application

Objectives

6 principles


Conclusions


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This stand ard is app licab le to al l org anization s , inc lud ing publ ic and pr ivate compan ies , government en t it ies , and not -fo r-p ro fi t

organizat ions.

The standard is appl icable to organizat ions of all sizes f rom the

smallest to the largest, regard less o f the exten t of their us e of IT.

Beyond ISO 29382 : application

O


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Outline



Interim Report

Beyond ISO 29382

Scope Application

Objectives

6 principles


Conclusions

B d ISO 29382 bj ti


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The purp ose of th is Standard is to p romote effect ive, eff ic ient, and accep tab le us e o f IT in all organ ization s by:

assur ing stakeholders (inc luding consumers, shareholders , and

employees ) that , i f the s tandard i s fo ll owed, they can have

confid ence in the organization’s co rpo rate go vernance of IT;

inform ing and gu iding directors in go vern ing the use of IT in their

org anization; and

p rovid ing a bas is for ob jec t ive evaluat ion o f the co rpo rate

go vernance of IT.

Beyond ISO 29382 : objectives

O tli


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Outline



Interim Report

Beyond ISO 29382

Scope Application

Objectives

6 principles


Conclusions

B d ISO 29382 6 i i l


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Princip le 1: Estab lish clearly understood respon sibi l i t ies fo r IT

Princip le 2: Plan IT to best support the org anization

Princip le 3: Acquire IT val idly

Prin cip le 4: Ensur e that IT perf orms well , whenever requ ired

Princip le 5: Ensu re IT con form s w ith form al rules

Prin cip le 6: Ensur e IT use respects human factor s

Beyond ISO 29382 : 6 principles

O tli


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Outline



Interim Report

Beyond ISO 29382

Scope Application

Objectives

6 principles


Conclusions

B d ISO 29382 M d l f


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Beyond ISO 29382 : Model for

Corporate Governance of ICT

Directors s hou ld gov ern ICT through three main tasks:

(a) Evaluate t he use o f ICT.

(b) Direct preparat ion and imp lementation o f plans and po l ic ies.

(c) Moni tor con formance to pol ic ies, and performance against the plans.

E l t


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Evaluate

Directors should examine and make judgement on the current andfuture use of IT, including strategies, proposals and supply

arrangements (whether internal, external, or both).

In evaluating the use of IT, directors should consider the pressures

acting upon the business, such as technological change, economicand social trends, and political influences.

Directors should also take account of both current and future

business needs — the current and future organizational objectives

that they must achieve, such as maintaining competitiveadvantage, as well as the specific objectives of the strategies and

proposals they are evaluating.

Di t


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Direct

Directors should assign responsibility for, and direct preparationand implementation of plans and policies. Plans should set the

direction for investments in IT projects and IT operations. Policies

should establish sound behaviour in the use of IT.

Directors should ensure that the transition of projects tooperational status is properly planned and managed, taking into

account impacts on business and operational practices and

existing IT systems and infrastructure.

Directors should encourage a culture of good governance of IT intheir organization by requiring managers to provide timely

information, to comply with direction and to conform with the six

principles of good governance.

Monitor


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Monitor

To complete the cycle, directors should monitor, throughappropriate measurement systems, the performance of IT use.

They should reassure themselves that performance is in

accordance with plans, particularly with regard to business

objectives.

They should also make sure that the use of IT conforms with

external obligations (regulatory, legislation, common law,

contractual) and internal work practices. If necessary, directors

should direct the submission of proposals for approval to address

identified needs.

Outline


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Outline



Interim Report

Beyond ISO 29382

Scope Application

Objectives

6 principles


Conclusions

Conclusions and Future Works


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Review the use of the Plan, Do, Check Ac t (PDCA) li fecyc le versus Evaluate,

Direct Monitor (EDM). Show m apping of EDM versus PDCA.

Incorporate hum an behavioural aspects to the cho sen l i fecycle.

Produc e a diagram demo nstrat ing the inter-relat ion of princ iples .

Develop derivative material to cover:

· Clari fi cat ion on the r isks o f poor governance and decis ion mak ing ;

· Analys is on the benef i ts of Governance across the IT l i fecyc le; and

· The exp lanat ion o f each pr inc ip le.



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Determine market requirements and then d etermin e the coverage of future

standards for example IT Projects, IT Operations, IT Use or some other

f rameworks.

Development of a TR2 for CIOs and execut ives to assist them in explaining

the rationale and impl icat ions (r isks and benef i ts) of the pr inc iples.

Development of a TR2 for gu idel ines for the use of the standard by Publ ic

Sector organizat ions

Documents

ISO IEC 29382 -The New Standard for ICT Governance