Information TechnologyGovernance

Ron HaySeptember 29, 2004

“The managerial functions cannot be performed without information.”

Robert Murdoch & Joel Ross Journal of System Management

1969

“Knowledge has become the central economic resource.”

Peter F. DruckerA long time ago …

“Without business intelligence, companies are swiftly punished.”

Gary CokinsPerformance Management

2004

“The general lack of success in fully utilizing the computerized information system is made even more acute, and its resolution made even more imperative, by the fact that some companies have achieved success. ”

John H. BurnettJournal of Systems Management

1969

“Our mission is to be the recognized global leader in IT governance, control and assurance.”

ISACA

Michael P. CangemiInformation System Control

Vol. 2, 2000

“...IT... is a cost of doing business that must be paid by all, but provides distinction to none.”

Nicholas Carr“IT Doesn’t Matter”

Howard Business Review2003

“Technicians – not management – are setting the goals for computers.”

John DieboldHarvard Business Review, 1969

Ron HayRalph & Kacoo’s, 2004

Top-10 Current IT Issues 1. Funding IT2. Administrative/ERP/Information

Systems3. Security and Identity Management4. Strategic Planning for IT5. Faculty Development, Support, and Training6. Infrastructure Management for IT

Top-10 Current IT Issues… 7. E-learning/Distributed Teaching and

Learning8. (tie) Web Services/Web-Based

Systems8. (tie) Enterprise-Level Portals10. (tie) Business Continuity/Disaster

Recovery10. (tie) Governance, Organization, and

Leadership for IT Donald Z. Spicer

CAUSE ReviewMay/June 2004

Reality Currently, in my professional

experience, there are three prevailing management attitudes about IT:

Costs too much Too many staff Takes too long

Ron Hay2004

“As more value is placed on information, the group charged with information management will be moved higher in the organization structure and will be given greater identity.”

Harold SillenbergerManagement Service

1969

The CIO “Hampered by a lack of leadership

training, an unwillingness to take risks and simply not knowing when (or how) to lead, most CIO’s today fall back on their management role to get them through.”

Mark StruckmanPublic CIOFall 2004

“Investments in technology are no longer under

the primary control of IT departments and the chief information officer (CIO). The power is shifting out into the business functions – to the leaders in sales, marketing, procurement, customer service, logistics, and human resources. They are uncomfortable relying on the IT function…they are taking control of their own destiny and driving the IT strategy for their portion of the business.”

Gary CokinsPerformance Management

2004

Rabbits Spreadsheet Solutions Best of Breed Applications Distributed Computing Solutions ERP Implementations CRM Implementations Data Warehousing Data Mining Off Shore Processing

Rabbits… Outsourcing End To End Solutions Business Continuity Plans Disaster Recovery Plans Supply Chain Management Employee Relations Management

(HRM) Activity Based Management

“Organizations that are very, very good at doing things that are not important will never be market leaders.”

Gary CokinsPerformance Management

2004

“… new users of IT introduce new risks, which in turn requires new controls.”

Frederick GallegosInformation Systems Control

Vol. 3, 2003

“It appears possible that business firms can actually bankrupt themselves in the search for efficiency in data processing.”

Neal J. DeanHarvard Business Review

1968

“Today, advances in software and

data management are well ahead of most organizations’ ability to harness what can be done with these tools.”

“… a fool with tool is still a fool.”

Gary CokinsPerformance Management

2004

“We use two percent of what we measure,

the rest is CYA … The appearance of precision substitutes for substance … We measure far too much and get far too little for what we measure because we never articulated what we need to get better at, and our measures aren’t tied to support higher level decision making.”

Michael HammerAgenda

2003

“Retailers … (using CRM software) … are trying to get to where they were in 1903.”

Stacy CollettComputerworldSept. 20, 2004

“ERP Systems deluge employees with data, but not necessarily with business intelligence for decision support.”

Gary CokinsPerformance Management

2004

“IT governance is good business and contributes to accomplishing the organizational mission.”

Ronald SaullInformation Systems Control

Vol. 2, 2000

“What is clear from today’s headlines is the need for top executives to take a second look at governance in light of increased market, shareholder, political and regulatory sensitivity.”

Stacey HamakerInformation Systems Controls

Vol. 3, 2003

“The cost of slack governance does not appear in expense budgets, it appears in the media, in share prices, in the waste bin or behind closed doors.”

Stacey HamakerInformation Systems Controls

Vol. 3, 2003

Corporate governance is enterprise wide!

“Corporate governance is the system by which companies are directed and controlled.”

Cadbury Report1992

“IT governance is part of corporate

governance and has to provide the organizational structure to enable the creation of business value through IT, the assurance that there are no IT investments in bad projects and that there are adequate IT control mechanisms.”

Win Van GrembergenInformation Systems Control

Vol. 2, 2000

“IT governance is the responsibility of

the board of directors and executive management. It is an integrated part of enterprise governance and consists of the leadership and organizational structures and processes to ensure that the organization’s IT sustains and extends its strategies and objectives.”

Claudio CitlioInformation Systems Control

Vol. 3, 2003

“Performance scorecards help organizations move from being financially driven to mission driven.”

Gary CokinsPerformance Management

2004

Adoption of BSC is an advantage.“Evaluation of an organization

should not be restricted to a traditional financial evaluation but should be supplemented with measures concerning customer satisfaction, internal processes and the ability to innovate.”

Kaplan and Norton

“Weakest of the links in the chain of information technologies available today for use by business and industry is management itself.”

J. W. HaslettJournal of Systems Management

1969

“The reality is that the principal

reasons for failure among projects requiring significant changes in workflow and organizational design have not been technical or economic, but rather organizational and/or political.”

Jerry MechlingPublic CIO

2004

Computerworld Ad for SAP:

77% of all IT projects experience problems or failed

49% exceed their budget and timeline 28% are cancelled

ComputerworldSept. 2004

Components of IT Governance Strategic Alignment of IT with Business

Objectives Delivering Value

Defined and Measured Performance Management

How Plans are Transferred into Results “You cannot manage what you cannot

measure.” Managing Risks IT Resource Management

IT Governance Institute2003

Components of IT Governance Worldwide Survey by ITGI Have you implemented, are you

considering implementation, or are you in the process of implementing:

Strategic Alignment 49%Delivery Value 39%Performance Management 34%Managing Risks 34%IT Resource Management ??

IT Governance Institute2003

“The mere presence of a high level steering committee is not governance.”

S. Arantha SayamI.S. Control Vol. 2, 2004

“After growing wildly for years, the field of … information technology … now appears to be approaching its infancy.”

Joel RossJournal of Supplies Management

1970

“The concepts of IT governance are evolving and the methods of implementing sound governance technologies vary from organization to organization so please treat this introduction as food for thought.

Advice fromIT Governance Institute

2003

“Top management still doesn’t get IT.”

Ron Hay2004

“The four most expensive words in the English language are:

“this time it’s different.””

John TempletonSource unknown

A long time ago …