displaydocumentation workshop it governance

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Workshop: Designing Practical Governance

for Your Enterprise

The Future of IT

September 13, 2011

JW Marriott Hotel

Lima Peru

Ione de Almeida Coco

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].

This presentation, including any supporting materials, is owned by Gartner, Inc.and/or its affiliates and is for the sole use of the intended Gartner audience orother authorized recipients. This presentation may contain information that isconfidential, proprietary or otherwise legally protected, and it may not be furthercopied, distributed or publicly displayed without the express written permissionof Gartner, Inc. or its affiliates. 2011 Gartner, Inc. and/or its affiliates. All rights reserved.

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Workshop: Designing Practical Governance for Your Enterprise

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This presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates and is f or the sole use of theintended Gartner audience or other authorized recipients. This presentation may contain information that is confidential,proprietary or otherwise legally protected, and it may not be further copied, distributed or publicly displayed without the expresswritten permission of Gartner, Inc. or its affiliates. 2011 Gartner, Inc. and/or its affiliates. All rights reserved.


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Governance mechanisms are the structures, tools and roles that make up the governance process and help

institutionalize and execute the governance framework.

What are the two types of governance mechanisms?

Standing governance mechanisms are structures and procedures put into place to administer decision-making

rocesses. These rocesses overn decisions that are made re ularl and often c clicall such as the ca ital

investment process, portfolio process, strategic planning and prioritization.

Project governance mechanisms are structures, tools and roles that are used on a temporary basis to engage

stakeholders in a single initiative. When the initiative is complete, project governance mechanisms are often

disbanded, as they are no longer needed.

A common governance issue is applying standing and project governance inappropriately. When project

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,

that governance has gone awry.


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Use the graphic above as a tool to analyze your stakeholder roles.

To use, note on the chart above the initials of the five to 10 people most involved in IT governance, and place

them in the quadrant you feel is most accurate today.

The tool can be applied to a key steering committee, or the governance group around a larger project or

ro ram.

By noting which stakeholders are in which roles, CIOs can determine if current governance participants have

the resources and information needed to make strong decisions and implement them.

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Use the graphic above as a tool to analyze your stakeholder roles.

To use, note on the chart above the initials of the five to 10 people most involved in IT governance, and place

them in the quadrant you feel is most accurate today.

The tool can be applied to a key steering committee, or the governance group around a larger project or

ro ram.

By noting which stakeholders are in which roles, CIOs can determine if current governance participants have

the resources and information needed to make strong decisions and implement them.

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.

Most importantly, the board wants to know if IT governance is mature and healthy. The above maturity model

summarizes various stages of governance development, from none to competitive innovation, and they key

characteristics of each level.

Consider where your enterprise is on the maturity model based on each criterion. Look for opportunities to

adapt and mature your governance model to deliver even greater value to your enterprise and demonstrate

success w t t e oar o rectors.

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The most common elements of successful governance are as follows:

A corporate governance decision framework that is understood and easily applied by all stakeholders in the

enterprise

A standing governance process that ensures success by leveraging minimized governance structures, sound

stakeholder roles and well-honed tools, such as communications

n ntegrate pro ect governance process t at ena es sta e o ers to compare one propose nvestment to

another using business value metrics, clear portfolio views and a benefits scorecard

A customized approach to governance based on business goals, maturity, culture and complexity (leading

CIOs adapt their investment groups, voting methods and scale of governance to the enterprise's environment

and opportunities)

Ultimately, the measure of governance success is how well the enterprise meets business performance goals.

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s w o mp emen e c en an e ec ve governance e ver ng nnova on, a g re urn on nves men

and competitive advantage prove their mastery of the field and help the entire enterprise succeed.


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To speed decision making, IT executives must provide small amounts of the right information to key

stakeholders. Practical information is often lost in overly long or miscategorized investment proposals.

The project investment dashboard, a one-page investment template, summarizes much of the key data a senior

executive needs to make investment decisions and track progress.

Combine this tool with the ortfolio views and the business benefits scorecard that follow. All three tools

should be based on the identical value and risk categories to keep the entire governance process consistent and

avoid duplication of effort.

A standard proposal format helps stakeholders compare initiatives under consideration and track milestones

and the general progress of approved initiatives in a single, easy to understand document. While actual

business cases may be much more detailed and lengthy, summary documents, such as the investment

dashboard, help governance groups make decisions quickly by focusing on only the most critical information.

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Portfolio views are an important shortcut tool for IT executives who want to facilitate IT decisions, inasmuch

as the sheer volume of decisions that need to be made will slow governance. Obviously, when many proposals

are on the table, going through each one individually can be time-consuming and difficult.

The portfolio view tool shows project proposals, IT-related assets and the financial impact as groups of

options. Portfolio views help stakeholders understand patterns of investments and their implications. Since

t ere are myr a ways to sp ay ata patterns, t e port o o opt ons are samp es t at o not re ect t e

complexities of every enterprise.

Combine this tool with the previous project investment dashboard. Business outcome categories from the

investment proposal process can be used to cut the data into portfolio views. The more useful the categories

were to that process, the more useful they will be to the portfolio views, and the easier it will be to cut the data.

Later, the data can be leveraged within the business benefits scorecard.

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When to use: CIOs should consider creating portfolio views for governance groups or senior executives

whenever an enterprisewide decision needs to be made.


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Successful CIOs consistently communicate in terms of business rather than technology results. A business

benefits scorecard helps CIOs communicate not only the business value of IT but also the value of the

governance process itself.

The business benefits scorecard gives a business-level summary of the value delivered by IT-related

investments. The scorecard needs to highlight the metrics of greatest interest to the board of directors and

sen or execut ve team. ese metr cs usua y re ect top- ne growt , ottom- ne mpact an r s m t gat on.

Combine this tool with the project investment dashboard and the portfolio views previously shown. Match thevalue categories in the business benefits scorecard with those used to populate both of the other tools.

Expected outcomes: CIOs with sound scorecards improve the perception of IT and the quality of IT-related

decision making. The most important question posed to CIOs is how investments in IT add value to the

enterprise. A business benefits scorecard can provide the answer.

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The highest levels of governance maturity produce the most value. Innovation and exception processes allow

for change and positive risk-taking. While most enterprises limit governance to gaining control and eliminating

bad risks, the highest-performing enterprises also use it to take good risks and gain competitive advantage.

The sample exception process tool suggests a path to sound exceptions. CIOs can use these guidelines to assess

IT ventures that appear high-risk or that require technology inconsistent with the existing enterprise

arc tecture. xcept on processes are espec a y cr t ca n t e ear y p ases o governance, w en t e enterpr se

decision framework or the governance processes probably will be suboptimal because of their immaturity.

Exceptions help governance improve, grow, evolve and build credibility.

Ione de Almeida CocoThis presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates and is f or the sole use of theintended Gartner audience or other authorized recipients. This presentation may contain information that is confidential,proprietary or otherwise legally protected and it may not be further copied distributed or publicly displayed without the express

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