“Connecting Phoenix to Information”

IT Governance in a Decentralized Organization

Charles T. Thompson

Chief Information Officer

City of Phoenix

“Connecting Phoenix to Information”

Key Discussion Points

• The many definitions of IT Governance…• ‘Take Aways’• Why IT Governance at the City of Phoenix?• Six Key Assets• ITG Model & Decision Rights• ‘Take Aways’ – Take Two!• Questions??

“Connecting Phoenix to Information”

IT Governance (ITGI)

• IT Governance: IT governance is the responsibility of the board of directors and executive management. It is an integral part of enterprise governance and consists of the leadership and organizational structures and processes that ensure that the enterprise’s IT sustains and extends the enterprise’s strategies and objectives.

“Connecting Phoenix to Information”

……is specifying the decision rights and accountability framework to encourage desirable behavior in IT usage.

IT Governance (Ross/Weill)

“Connecting Phoenix to Information”

IT Governance at the City of Phoenix

• IT Governance (ITG) is the structure of relationships and processes which ensure the effective and efficient use of information technology in enabling the City to achieve its goals.

“Connecting Phoenix to Information”

Take Aways!

• IT GOVERNANCE = CORPORATE GOVERNANCE• Your model and framework MUST fit into your

CULTURE – there is no single answer• Compliance/Enforcement Mechanisms must have a

FINANCIAL component• The model MUST be read from LEFT to RIGHT• The top level of the model, must set the IT

PRINCIPLES• IT leadership (CIO) must do the marketing and

branding, via facilitation

“Connecting Phoenix to Information”

Why IT Governance for City of Phoenix?

• Preserving the Public Trust

• KPMG & City Audit Findings

• Operations & Maintenance Cost

• IT Spend – 3%- 10% - (Cost Shift)

• Standardizing Solutions

• P.S. – this does not happen overnight!

“Connecting Phoenix to Information”

People Money Property Knowledge Technology Relationships

Six Key Assets

What methodical, consistent policies & processes govern how these assets will be acquired, controlled, managed, and applied to attain City goals and objectives?

1

2

Who controls, manages, makes decisions as to how these assets will be acquired and used to attain City goals?

“Connecting Phoenix to Information”

ITG Board – “Lines of Business” by Department

Public Safety•Police•Fire•Municipal Court

Resident Services•Human Services•Neighborhood Services•Housing•Library•Parks & Recreation•Water•Public Works•City Manager Functions (Family Advocacy, etc.)

Administrative•ITS•Personnel•City Clerk•Finance•Budget & Research•City Attorney•Retirement•Equal Opportunity•Public Information Office•Intergovernmental Programs•City Auditor

Infrastructure/Transportation•Aviation•Streets•Engineering•Planning•Public Transit

Business Services•Development Services•Phoenix Convention Center•Community & Economic Development•Downtown Development

Financial•Finance•Budget & Research

Public Representation•Mayor’s Office•Council Staff

Executive Representation•Deputy City Manager(s)

“Connecting Phoenix to Information”

IT Governance Model

“Connecting Phoenix to Information”

Five Key “IT” DecisionsIT

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IT In

vest

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Pri

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ecis

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sIT InfrastructureDecisions

Business ApplicationNeeds

IT Principles Decisions

Based on IT Governance by Dr. Peter Weill & Jeanne W. Ross

“Connecting Phoenix to Information”

City Executives“Business Monarchy”

ITS“IT Monarchy”

Operating Department

“Feudal”

Multi-Departmental Group

“Federal”

ITS with Operating Department

“Duopoly”

“Anarchy”

• City Executives decide for everyone

• ITS decides for everyone

• Operating Departments decide for themselves

• Multi-Departmental group decides

• ITS works with the Operating Departments to make decisions

• No formal decisions - “IT just happens”

ITG Matrix Definitions

“Connecting Phoenix to Information”

The ITG MatrixIT

PrinciplesIT

ArchitectureIT

InfrastructureBusiness

ApplicationsIT

Investment

Business Monarchy

IT Monarchy

Feudal

Federal

Duopoly

Anarchy

Don’t Know

inp

ut

dec

isio

n

Based on IT Governance by Dr. Peter Weill & Jeanne W. Ross

“Connecting Phoenix to Information”

City of Phoenix - ITG MatrixThe ITG Matrix IT Principles IT Architecture IT Infrastructure

Business Applications

IT Investment

Input Decide Input Decide Input Decide Input Decide Input Decide

City Executives X X XITS X X

Operating Department

Multi-Departmental Group X X X

ITS with Operating Department X X

“Connecting Phoenix to Information”

Take Aways!

• IT GOVERNANCE = CORPORATE GOVERNANCE• Your model and framework MUST fit into your

CULTURE – there is no single answer• Compliance/Enforcement Mechanisms must have a

FINANCIAL component• The model MUST be read from LEFT to RIGHT• The top level of the model, must set the IT

PRINCIPLES• IT leadership (CIO) must do the marketing and

branding, via facilitation

“Connecting Phoenix to Information”

Questions??