IT Governance is not just an IT issue or only of interest to the IT function. In its broadest sense it is a part of the overall governance of an entity, but with a specific focus on improving the management and control of Information Technology for the benefit of the primary stakeholders. Ultimately it is the responsibility of the Board of Directors to ensure that IT along with other critical activities is adequately governed.
IT Governance spans the culture, organization, policy and practices that provides for IT management and control across five key areas:
Alignment – Provides for strategic direction of IT, the alignment of IT and the business with respect to services and projects.
Value Delivery – Confirms that the IT/Business organization is designed to drive maximum business value from IT. Oversees the delivery of value by IT to the business and assesses ROI.
Risk Management – Ascertain that processes are in place to ensure that risks have been adequately managed. Include assessment of the risk aspects of IT investments.
Resource management – Provides high-level direction for sourcing and use of IT resources. Oversees the aggregate funding of IT at enterprise level. Ensures there is an adequate IT capability and infrastructure to support current and expected future business requirements.
Performance measurement – Verifies strategic compliance, i.e. achievement of strategic IT objectives. Reviews the measurement of IT performance and the contribution of IT to the business (i.e. delivery of promised business value).
One of the greatest challenges faced by those trying to manage IT in today’s fast moving economy and complex technical environment is knowing whether the “ship is on course” and being able to predict and anticipate failures before it is too late. Like driving a car or steering a ship, good instruments are essential. The use of measurements to help steer the IT function has for many years been a challenge that few appear to have successfully addressed, which is why the expression “it’s like driving a car with a blacked out windscreen and no instruments” is often used. If it is difficult for those literate in technology and relatively close the IT function, then it is even worse for the end customer who finds technical jargon a smokescreen and lack of information relevant to his business a major headache.
IT Governance is not a one-time exercise or something achieved by a mandate or setting of rules. It requires a commitment from the top of the organization to install a better way of dealing with the management and control of Information Technology. IT Governance is an ongoing activity that requires a continuous improvement mentality and responsiveness to the fast changing IT environment.
