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SUN ITG
1.
Welcome Beyond Mandates: Getting to “Sustainable”
IT Governance Best Practices Steve Romero PMP, CISSP, CPM IT Governance Evangelist
2.
Agenda
> IT Governance Definition > IT Governance Principles > IT Governance Decisions > IT Governance Processes > IT Governance Mechanisms > Summary & Wrap-up 2 July 09 CA Clarity™ Marketing Copyright © 2009 CA
3.
First, What is
IT Governance? > Structure of relationships and processes to direct and control the IT enterprise to achieve IT’s goals by adding value while balancing risk versus return over IT and its processes. © IT Governance Institute. All rights reserved. > “The processes that ensure the effective and efficient use of IT in enabling an organization to achieve its goals.” © 2006 Gartner, Inc. All rights reserved. > “The process by which decisions are made in IT investments.” © 2005 Forrester Research, Inc. All rights reserved. > Simple Version - The processes and relationships that lead to reasoned decision-making in IT > 3 Key Questions: What decisions need to be made? Who is accountable for making the decisions? How will the decisions be made? 3 July 09 CA Clarity™ Marketing Copyright © 2009 CA
4.
An Executive View
of IT Governance Based on 2008 Survey of 255 Non-IT CEOs/Executives > 50% Ranked ITG as “very important” > 75% of businesses consider ITG to be an integral part of enterprise governance, but the overall maturity level is still relatively low > Stronger ITG practices correlate positively with better IT outcome (ITG is more often found in organizations where IT is a significant contributor to business value) 4 July 09 CA Clarity™ Marketing Copyright © 2009 CA
5.
Every Organization Addresses
Five Key IT Governance Decisions IT Principle Decisions Clarifying Enterprise Objectives for IT IT Infrastructure Decisions IT Investment and IT Architecture Prioritization Decisions Decisions Business Application Decisions © Peter Weill and Jeanne Ross, CISR MIT Sloan School of Management 5 July 09 CA Clarity™ Marketing Copyright © 2009 CA
6.
IT Governance is
Based on Meeting Five Principles > Ensure IT is aligned with the business – focus on aligning with the business and collaborative solutions > Ensure IT delivers value to the business – concentrating on optimizing expenses and proving the value of IT (#1*) > Ensure IT manages risk– addressing the safeguard of IT assets, disaster recovery and continuity of operations (#2*) > Ensure IT manages resources– realizing the optimal investment in, and proper management of, critical IT resources > Ensure IT manages performance– tracking and monitoring strategy implementation, project success, resource usage, process performance and service delivery *According to the ITGI 2008 Survey of 255 Non-IT Executives 6 July 09 CA Clarity™ Marketing Copyright © 2009 CA
7.
IT Governance Decisions
IT Principles - Clarifying the role of IT in the business – basis for defining IT Archetype > Based on the Business Principles of the enterprise – business drives IT > Driven by Business’ expectations and industry sector constraints > Developed by IT and business leadership > A related set of high-level statements about how IT is used in the business > IT Principles provide clarity and focus for the IT enterprise, establishing the direction for all other decisions 7 July 09 CA Clarity™ Marketing Copyright © 2009 CA
8.
IT Archetypes
Partner Player ► IT organizations expected to create © 2007 Forrester Research, Inc. unique and competitive solutions with All rights reserved. customers, suppliers, and internal users — plus, being a Trusted Partner Supplier. Player Trusted Supplier ► IT organizations expected to deliver app projects on time and on budget, based on Trusted operating units’ requirements and priorities — plus, being a Solid Utility. Supplier Solid Utility: Solid Utility ► IT organizations expected to provide cost-effective, dial-tone reliability with transparent, constantly declining costs. Approximately one-third of companies are in each of the archetypes according to the Forrester State Of IT Governance In North American And European Enterprises Report © 2008, Forrester Research, Inc. All rights reserved. 8 July 09 CA Clarity™ Marketing Copyright © 2009 CA
9.
IT Governance Decisions
IT Architecture - Defining integration and standardization requirements > Organizing logic for data, applications and infrastructure > Captured in policies, relationships and technical choices > Technical and data standardization > Defines where shared infrastructure ends and applications begin > Supports current and future application needs 9 July 09 CA Clarity™ Marketing Copyright © 2009 CA
10.
IT Governance Decisions
IT Infrastructure Strategies - Determining shared and enabling services > Foundation of planned IT capability > Shared and reliable services used by multiple applications > Includes infrastructure applications > All communications pass through a security and risk capability > Enables rapid implementation of future business initiatives 10 July 09 CA Clarity™ Marketing Copyright © 2009 CA
11.
IT Governance Decisions
Business Application Needs - Specifying the business need for purchased or internally developed IT applications > Fundamentally improve business processes > Enables operating efficiency > Balance of creativity and discipline > Willingness to sacrifice functionality for architectural integrity > Contributes to strategic value 75% Said IT is “failing”, especially on application delivery* *According to the ITGI 2008 Survey of 255 Non-IT Executives 11 July 09 CA Clarity™ Marketing Copyright © 2009 CA
12.
IT Governance Decisions
IT Investment and Prioritization - Choosing which initiatives to fund and how much to spend > How much do we spend? > What do we spend it on? > How do we reconcile the needs of different constituencies? > Requires business-led and IT- enabled Portfolio Management > Ensures IT spending reflects strategic priorities 12 July 09 CA Clarity™ Marketing Copyright © 2009 CA
13.
Each IT Governance
Decision is Enabled by IT Governance Processes > Integrated Business & IT Planning > IT Investment Assessment, Prioritization, Funding & Benefits Realization Accountability > IT Financial & Resource Allocation > Project Prioritization & Decision-making > Emerging Technology Evaluation & Adoption > Client Relationship Management > Building & Maintaining Applications & Infrastructure > Provisioning of IT Services > Outsourcing Services > Audit & Risk Management > Architecture Management - Standards & Review 13 July 09 CA Clarity™ Marketing Copyright © 2009 CA
14.
IT Governance Processes
Integrated Business and IT Planning > IT Strategic Plan based on Business Strategic Plan > IT Tactical Plan based on IT Strategic Plan > IT Operational Plan based on IT Tactical Plan 14 July 09 CA Clarity™ Marketing Copyright © 2009 CA
15.
IT Governance Processes
Architecture Management > Defined architecture > Policies, standards, relationships and technical choices > Architecture Committee 15 July 09 CA Clarity™ Marketing Copyright © 2009 CA
16.
IT Governance Processes
IT Investment Assessment, Prioritization, Funding & Benefits Realization Accountability > Demand Management > Portfolio Management Project, Demand, Resource, Asset, Application, Service > Governance or Steering Committee > PMO Supported 16 July 09 CA Clarity™ Marketing Copyright © 2009 CA
17.
IT Governance Processes
IT Financial and Resource Allocation > Financial Services for IT > Financial plans > Budgets and forecasts > Cost accounting > Chargeback > Resource management 17 July 09 CA Clarity™ Marketing Copyright © 2009 CA
18.
IT Governance Processes
Project Prioritization and Decision-making > Project Portfolio Management > Fact-based decision-making > Scenarios and what-if analysis > Monitoring, speeding, slowing, stopping, trade-offs and killing projects > Empowered PMO - Project management best practices and center of excellence 18 July 09 CA Clarity™ Marketing Copyright © 2009 CA
19.
IT Governance Processes
Emerging Technology Evaluation and Adoption > Research and development > Market side – not just supply side > Linked to business strategy > IT Management believes they provide the business with frequent info about new tech opportunities, but the biz side does not seem to receive the info* *According to the ITGI 2008 Survey of 255 Non-IT Executives 19 July 09 CA Clarity™ Marketing Copyright © 2009 CA
20.
IT Governance Processes
Client Relationship Management > Advocate for business and IT > Acute understanding of business needs > Acute understanding of IT capability > Facilitate communication and collaboration > Speed and improve decisions > Improve requirements processes > Ensure value and performance 20 July 09 CA Clarity™ Marketing Copyright © 2009 CA
21.
IT Governance Processes
> Building and Maintaining Applications and Infrastructure > Provisioning of IT Services > SDLC – CMMI - Testing - Q&A > ITIL Service Lifecycle Service Strategy Service Design Service Transition Demand Mgt. SLM Change Mgt. Service Portfolio Mgt. Service Catalogue Service Asset Mgt. Capacity Mgt. Configuration Mgt. Service Operation Event Mgt. Continual Service Incident Mgt. Improvement Strategy to Operation Problem Mgt. Improve quality of Request Fulfilment service 21 July 09 CA Clarity™ Marketing Copyright © 2009 CA
22.
IT Governance Processes
Outsourcing Services > Facilitates decision that services are better provided externally > Vendor and contract management > Fact-based price comparisons > Sets clear expectations for provider performance > Ensures architectural fit 22 July 09 CA Clarity™ Marketing Copyright © 2009 CA
23.
IT Governance Processes
Audit and Risk Management > Risk modeling and assessment > Partner with IT Audit – COBIT > Security > Service continuity and disaster recovery > Compliance > Policies & Standards 23 July 09 CA Clarity™ Marketing Copyright © 2009 CA
24.
Many Companies are
Undertaking IT Governance Initiatives – What We Hear > Audit Influence ISACA/IT Governance Institute Audit Issues > Risk and Compliance Regulatory Requirements Legal Requirements Security Requirements > Investment Decision-making - PPM IT-Business Alignment IT Accountability to the Business > Increased IT Governance Awareness > Driven by the Board of Directors 24 July 09 CA Clarity™ Marketing Copyright © 2009 CA
25.
ITG is Intended
for the Board of Directors Board’s Ability to Govern IT > To ensure IT is aligned with business strategy > To ensure IT brings value to the business > To ensure IT manages risk > To ensure IT manages resources > To ensure It manages performance > IT matters are discussed predominantly on an ad hoc basis at the board level* *According to the ITGI 2008 Survey of 255 Non-IT Executives 25 July 09 CA Clarity™ Marketing Copyright © 2009 CA
26.
Why IT Governance?
To Enable IT to Support Business Strategy ITG Principles Results to ITG Decisions Enabled by Activities/Tasks ITG Processes Specific IT Processes To Direct Ensured by Policies, Standards ITG Value Engine - Connection between business strategy and personnel action to realize the principles of IT Governance 26 July 09 CA Clarity™ Marketing Copyright © 2009 CA
27.
IT Governance Processes
Require Process Management Changing from a Function-centric to a Process- centric Organization > Process design > Process implementation > Process management lifecycle > Process governance > Institutionalize processes 27 July 09 CA Clarity™ Marketing Copyright © 2009 CA
28.
Organizational Accountability
Examples of Decision-making Bodies > IT Governance Committee > IT Steering Committee > IT Policies & Standards Committee > IT Architecture Committee > Business Leadership > CFO, CIO, CTO, CISO > Process Owners 28 July 09 CA Clarity™ Marketing Copyright © 2009 CA
29.
IT Governance Principle
Metrics Strategic Alignment > Show how IT supports the Value Delivery Enterprise Strategy > Show how IT delivers > Show how IT Operations are appropriate quality on-time aligned with current Enterprise and within budget Operations > Show how actual cost and ROI is managed Risk Management > Risk Controls Resource Management > Show how IT optimizes the > Transferring risk infrastructure > Risk acceptance > Show how IT optimizes human resources Performance Management > Show how IT measures performance (balanced scorecard, KPIs, etc.) > Use of automated systems providing performance data and information 29 July 09 CA Clarity™ Marketing Copyright © 2009 CA
30.
Advice when Addressing
IT Governance > Absolutely requires Executive sponsorship and leadership – Vision and Enablement > Absolutely requires Business participation – IT facilitates but the business must be a partner, if not the leader in the effort > Business process initiative – This requires skills in process management, design, implementation – and organizational change > Decisions require fact-based information – This requires a systematic approach to collect, integrate, analyze and provide meaningful data 30 July 09 CA Clarity™ Marketing Copyright © 2009 CA
31.
Benefits of Sustainable
IT Governance IT Functions as a Business Partner Enabling Competitive Advantage > Executive leadership freed from day-to-day execution > IT freed from proving value > Focused on the future vision > Exploring avenues to leverage IT for competitive advantage > IT’s contribution to efficiency is deemed more important than its innovative value* *According to the ITGI 2008 Survey of 255 Non-IT Executives 31 July 09 CA Clarity™ Marketing Copyright © 2009 CA
32.
Wrap-up
Q&A 32 July 09 CA Clarity™ Marketing Copyright © 2009 CA
33.
Thank you
Steve Romero IT Governance Evangelist steven.romero@ca.com Twitter @itgEvangelist http://community.ca.com/blogs/theitgovernanceevangelist/
Notas del editor
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