Download - Six SIgns your IT Governance is failing
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John Krogh
Twitter:@jakrogh
Blog:
www.johnakrogh.com"
6 Signs of Poor IT Governance"
proven experience • proven tactics • proven success
© Service Management Art 2013"
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What is governance"
?
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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
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Simple Definition"
“The processes and relationships that lead to reasoned decision-making in
the use of IT”!
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What is alignment?"
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“The business wants nothing more from you than for you to demonstrate that you have
control over IT”… Paul Wilkinson Gamingworks"
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…www.construcConmachines.org
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…www.construcConmachines.org
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What do we need to control?"
ITIL
Resources!"
Financial"Infrastructure"Information"Applications"
People"
Capabilities!"
Organization"Management"
Process"Knowledge"
People"
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5 Elements of Governance"
Establish and Maintain a Governance Frameworks"
Benefit Realization"Risk Optimization"
Resource Optimization"Stakeholder Transparency"
Cobit 5
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# 6 Symptom of Failing IT Governance"
“We don’t kill Projects!”"
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“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
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…improlityfiles.wordpress.org
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# 5 Symptom of Failing IT Governance"
Loss of control of IT services to external providers"
"
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Nasa.org
“Does the business trust us with their
critical business
systems?”""
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Loss of control could also mean the loss of core business assets"
"
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# 4 Symptom of Failing IT Governance"
“Business and Customer Dis-satisfaction”"
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“50% of surveyed CEOs say IT has a problem executing, only 10% of CIOs
agree”!"
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“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”!"
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# 3 Symptom of Failing IT Governance"
Project and operational failures for which an approved mitigation strategy
was not in place"
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Would killing this project, before complete failure occurred, have been
the right thing to do?"
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# 2 Symptom of Failing IT Governance"
“Continually escalating costs without an associated return of value ”"
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Norcalminis.com
Over-engineering""
Too much capacity""
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Calgary $829M"Salt Lake $1.2B"
Torino $3.6B"Vancouver $1.7B"Sochi $50B est."
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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"
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# 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"
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Shows up as IT managing risk and costs myopically…"
…www.onemansblog.com
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Or.. "the Business using IT in inappropriate ways"
…www.onemansblog.com
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“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
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"“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
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"“On average, only 38% of senior managers in poorly governed firms understand how
technology is governed”!"
IT Governance in PracCce – Insights from leading CEOs
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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
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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
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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
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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."
"
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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
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“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
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Questions?"
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itSMF Presentation"
“Business Relationship Management is about Innovation”"
Peter Lijnse""
November 28, 2011"Breakfast Event"
"Register at itsmf.ca"