six signs your it governance is failing

John Krogh

Twitter:@jakrogh

Blog:

www.johnakrogh.com"

6 Signs of Poor IT Governance"

proven experience • proven tactics • proven success

© Service Management Art 2013"

What is governance"

?  

IT Governance Definitions take your pick!"

The responsibility of executives and the board of directors, and consists of the leadership, organizational structures and processes that ensure that the enterprise’s IT sustains and extends the organization’s strategies and objectives."

© IT Governance Institute. All rights reserved. ""

“The set of processes that ensure the effective and efficient use of IT in enabling an organization to achieve its goals.” "

© 2010 Gartner, Inc. All rights reserved. ""

“A decision-making framework for IT investments that is designed to maximize the return of benefits while managing risk to acceptable levels.” "

© 2010 Forrester Research, Inc. All rights reserved. ""

Specifying the decision rights and accountability framework to encourage desirable behavior in using IT. "

©  Peter  Weill  &  Jeanne  W.  Ross  (MIT  CISR)  All  rights  reserved.    

.  www.isaca.org  

Simple Definition"

“The processes and relationships that lead to reasoned decision-making in

the use of IT”!

What is alignment?"

“The business wants nothing more from you than for you to demonstrate that you have

control over IT”… Paul Wilkinson Gamingworks"

…www.construcConmachines.org  

…www.construcConmachines.org  

What do we need to control?"

ITIL  

Resources!"

Financial"Infrastructure"Information"Applications"

People"

Capabilities!"

Organization"Management"

Process"Knowledge"

People"

5 Elements of Governance"

Establish and Maintain a Governance Frameworks"

Benefit Realization"Risk Optimization"

Resource Optimization"Stakeholder Transparency"

Cobit  5  

# 6 Symptom of Failing IT Governance"

“We don’t kill Projects!”"

“43% of respondents said that they have euthanized a project”"

Top reasons to kill an IT projects"•  Business needs changed " " "30%"•  Failed to deliver on promise" " "23%"•  No Longer a priority" " " " "14%"•  Exceeded Budget " " " " "13%"•  Did not support business strategy "7%"•  Fell behind schedule " " " "4%""

…www.baselinemag.com  &  ISACA    

…improlityfiles.wordpress.org  

# 5 Symptom of Failing IT Governance"

Loss of control of IT services to external providers"

"

Nasa.org  

“Does the business trust us with their

critical business

systems?”""

Loss of control could also mean the loss of core business assets"

"

# 4 Symptom of Failing IT Governance"

“Business and Customer Dis-satisfaction”"

“50% of surveyed CEOs say IT has a problem executing, only 10% of CIOs

agree”!"

“50% of surveyed CEOs say IT has a problem executing, only 10% of CIOs

agree”!"

“53% of all statistics are made up on the

spot”!"

# 3 Symptom of Failing IT Governance"

Project and operational failures for which an approved mitigation strategy

was not in place"

Would killing this project, before complete failure occurred, have been

the right thing to do?"

# 2 Symptom of Failing IT Governance"

“Continually escalating costs without an associated return of value ”"

Norcalminis.com  

Over-engineering""

Too much capacity""

Calgary $829M"Salt Lake $1.2B"

Torino $3.6B"Vancouver $1.7B"Sochi $50B est."

Costs of Poor Governance"Indirect Costs"

Retraining IT staff"Loss of business credibility"

Failed audits"Lost productivity"

Poorly operating systems""

Direct costs"Failed or delayed IT projects"

Lost revenue"Extra time spent gathering business requirements"

Higher-than-average help desk costs"Security breaches/non-compliance fines"

# 1 Symptom of Failing IT Governance"

Absence of business leaders in the IT decision making processes"

&"Absence of IT leaders in the

business decision making processes"

Shows up as IT managing risk and costs myopically…"

…www.onemansblog.com  

Or.. "the Business using IT in inappropriate ways"

…www.onemansblog.com  

“Today, businesses are 100% reliant on information technology for day-to-day

operations, yet fewer than 50% of organizations involve senior management in IT decisions”!

"

InfoTech  Research  Group  

"“If an initiative takes time away from

revenue-generating activities, management won’t participate. IT must communicate potential quantitative benefits to gain

management involvement”!"

IT  Governance  in  PracCce  –  Insights  from  leading  CEOs  

"“On average, only 38% of senior managers in poorly governed firms understand how

technology is governed”!"

IT  Governance  in  PracCce  –  Insights  from  leading  CEOs  

There are four key areas where senior management must play an active role:"

"– Making IT investment decisions."– Prioritizing and approving projects."– Evaluating IT service delivery."– Mitigating risks and vulnerabilities to IT assets."

"

InfoTech  Research  Group  

Governance must be in place in order to foster the appropriate relationship between IT & the Business."

Trusted  Supplier  

Partner    Player  

Solid  UClity  

Forrester  IT  Archetype  Model  

Time  

“TacCcal”  BR

M  

“Strategic”  BR

M  

Business  Efficiency  

Level  1  IT  Focus  •  Provide  basic  systems  and  services  •  Stabilize  operaCons  and  support  •  Improve  service  delivery  •  IT  management  fundamentals  

Business  Effec5veness  

Business  Transforma5on   Level  3  Business  Needs  

•  Business  growth  and  InnovaCon  •  Rapid  reconfiguraCon  capability  •  Market  informaCon  •  Business  integraCon  orientaCon  

Level  3  IT  Focus  •  ConCnuous  strategy  and  planning  •  Converge  business  and  IT  •  Expand  and  extend  infrastructure  •  Enable  flexibility  and  agility  •  Embrace  ‘ConsumerizaCon  of  IT’  

Demand  

Supply  

�    

Level  

�    Level  

Level  

�    

Supp

ort  

Improve  

Inno

vate  

Value  

Level  2  IT  Focus  •  Establish  common  IT  infrastructure  •  Build  IT  credibility  •  Improve  soluCon  delivery  •  Establish  Enterprise  Architecture  •  Respond  to  ‘ConsumerizaCon  of  IT’  

Level  2  Business  Needs  •  Business  network/process  redesign  •  Enable  business  and  partnerships  •  Management  informaCon  •  Process  orientaCon  

Level  1  Business  Needs  •  FoundaCon  systems  •  Cost  savings  •  OperaConal  informaCon  •  FuncConal  orientaCon  

Focus  is  S

upply  Managem

ent  

Focus  is  D

emand  Managem

ent  

Business Demand/Provider Supply Maturity

72% Insufficient IT Resources Planned"69% Misalignment Between Business/IT Strategy"69% Business Unaware of Services IT Provides"

"

InfoTech  Research  Group  

Recent poll of problems due to lack of business involvement in IT decision making."

"

Summary"

– Failure  to  kill  projects  – Loss  of  control  of  IT  services  to  external  suppliers  – Business  and  customer  dissaCsfacCon  – Project  and  OperaConal  Failures  for  which  an  approved  miCgaCon  strategy  was  not  in  place  

– ConCnually  escalaCng  costs  without  an  associated  return  in  business  value  

– Absence  of  business  involvement  in  IT  governance  and  IT  involvement  in  business  governance  

“Effective decision-making is critical to the governance of IT investments, projects,

service delivery, and risk, all of which keep the business in business”!

Forrester  Research  

Questions?"

itSMF Presentation"

“Business Relationship Management is about Innovation”"

Peter Lijnse""

November 28, 2011"Breakfast Event"

"Register at itsmf.ca"