Matakuliah
Tahun
: Pengantar IT Governance
: Feb - 2009
Governance and Not-for-profit Organization
Pertemuan ke-23 & 24
Framework for Value in Not-for-profit
Organizations
Delivery
•Sales
•Transfers
•Direct provision
Authorizing environment
•Customers
•Fund providers
•Political power holders
Resource acquisition
•Money
•Authority
Permission
•Market signals
•Political acceptance
Public Value
•Goods & services
•Public goods
•equity
Production
Capabiilities
•Organizational
•external
Coproduction
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Particular Challenges for Governance in
Governments and Not-for-profits
4 factors influence the way not-for-profit organizations
govern IT :
1. Measuring value and performance
2. IT infrastructure Investment
3. Coproduction and Architectures
4. Citizens, Clients, and Customers
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Measuring Value and Performance
• The broad concept of public value in not-for-profit
organizations make measuring value and performance
very complex.
• Uncertain science, more of an art
• Broadening the representation on the mechanism used
for IT Governance in several of the five IT decisions.
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IT Infrastructure Investment
•
1.
2.
3.
Infrastructure investments can be justified in 3 ways :
They are mandated
They reduce costs
They enable new capabilities
•
Governing IT infrastructure in not for profits requires
different tools and mechanisms than in for-profit
organizations.
External representation on committees for infrastructure
investment decisions can be valuable
•
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Coproduction and Architectures
• Coproduction provides unique opportunities and
responsibilities for not-for-profit organizations.
• IT Architecture decision makers must consider many
issues outside the organization.
• A key dilemma for governance and decision makers is
the willingness and capability of the coproducers to
invest in standard compliant systems.
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Citizens, Clients, and Customers
• Virtually all government organizations operate in some
type of legislative authorizing environment that requires
the organization to provide services.
• Making IT decisions requires balancing the needs of the
three types of consumers – customers, clients, and
citizens.
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How Not-for-profit Organizations Govern
• More business monarchies in all decisions except
architectures.
• Significantly fewer IT monarchies in all decisions
• More federal arrangements in all decisions except
investments.
• More federal arrangements for inputs to all decisions
• More duopolies for IT architecture
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Comparing IT Governance Arrangements in
Not-for Profit and For-profit Organizations
• Governance performance in not for profits is statistically
significantly lower than in for profit organizations.
• The complexity described earlier makes performance
measurements, organization goal setting, and thus It
governance more difficult in not for profits, resulting in an
average 10% lower governance performance.
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Comparing Governance Performance of
Not-for-profit and For-profit Organizations
•More business monarchies in all decisions
except architectures
•Significantly fewer IT monarchies in all
decisions
•More federal arrangements in all decisions
except investment
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How Top Performers Govern
• Aligned value creation and governance-designed
frameworks
The process began with understanding and
communicating the way value was to be created.
The top performers articulated their required capabilities
both internally and via coproduction to create
maximum value within the limits of their authorizing
environment.
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• Top governance performers govern differently
– Use joint business and IT decision making for
principles
– Consider IT infrastructure principles to be strategic
business decisions
– Don’t use a feudal model for business application
needs
– Use joint decision making for IT investments
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• Mechanisms Used by Top Performers
– Executive committees focused on all key assets
including IT
– IT council comprising business and IT executives
– IT leadership committee comprising IT executives
– Architecture committee
– Tracking of IT projects and resources consumed
– Business/ IT relationship managers
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UNICEF Case Study
• Authorizing environment – Customers, funds providers,
and political power holders
• Capabilities – organizational and external
• Public value – goods and services, public goods and
quity
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IT Governance at UNICEF
• UNICEF’s business objectives include achieving results
for children, sharing and reusing information globally,
and achieving operational excellence under difficult field
conditions with limited budgets.
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What is Different in Not-for-profits
• In many ways, IT governance in not-for-profit
organizations is the same as for profit seeking firms.
• The cultural norms of not for profits, with more focus on
consensus, transparency, and equity.
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