Matakuliah
Tahun
: Pengantar IT Governance
: Feb - 2009
Leadership Principles for IT Governance
Pertemuan ke-25 & 26
The philosophical approach to good
governance
“Good people do not need laws to tell them to act
responsibly, while bad people will find a way
around the laws"
- Plato (427 - 347 B.C.)
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Background
 The principles of good governance apply
to all organisations
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Private sector
Public sector
Not-for-profit sector
Universities
Even Regulators – increasing pressure…
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Symptoms of Ineffective Governance
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•
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Senior management senses low value from IT
Investments.
IT is often a barrier to implementing new strategies
The mechanisms to make IT decisions are slow or
contradictory.
Senior management cannot explain IT governance.
IT projects often run late and over budget
Senior management sees outsourcing as a quick fix to
IT problems.
Governance changes frequently.
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Steps for Reviewing and
Designing IT Governance
1. Map the enterprise’s current governance onto both
diagrams (governance design framework and the
governance arrangements matrix)
2. Compare the two diagrams and ask how well the
objectives on the governance design framework are
achieved the arrangements of the governance
arrangements matrix.
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Steps for Reviewing and
Designing IT Governance (cont.)
3. Audit IT governance mechanisms.
4. In a senior management team meeting, debate the
upper left and right boxes of the governance design
framework.
5. Lead the change using the ‘to be’ versions of the
governance design framework and governance
arrangements matrix for your enterprise.
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Role of Leadership
 Leadership and commitment are the key
elements in the development of a successful
governance system
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Top Ten Leadership Principles
of IT Governance
1.
2.
3.
4.
5.
6.
7.
Actively design governance
Know when to redesign
Involve senior managers
Make choices
Clarify the exception handling process
Provide the right incentives
Assign ownership and accountability for IT governance
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Top Ten Leadership Principles
of IT Governance (cont.)
8. Design governance at multiple organizational levels
9. Provide transparency and education
10. Implement common mechanisms across the six key
assets
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Assessing the CIO
Multiple dimensions of the CIO’s impact :
• Responsibilities of the CIO that are clearly under the
CIO’s control
• Decisions and behaviors influenced by the CIO
• Contributions made by the CIO as a member of the
senior management team generating value for the
enterprise
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3 Factors in CIO assessment
1. IT unit cost and service levels
2. Business and IT process management
3. Business value
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IT unit cost and service levels
• IT unit cost is the cost to the business for each IT service
used per unit consumed.
• The IT service levels resulting from the IT investment are
part of the calculation and an important deliverable of the
CIO.
• Assessing IT unit cost and service levels is primarily
quantitative based on benchmarks, year-to-year
comparisons, user satisfaction, and meeting servicelevel agreements.
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Business and IT process management
• 2 types of process management :
– Business
– IT
• The relationship between process and IT management is
symbiotic and thus hard to assess separately.
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Business value
• Assesses the CIO contribution to business value through
leadership and teamwork.
• Identify strategic opportunities and recognize potential
synergies in the enterprise, particularly exploiting
existing IT capabilities.
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Assessing the CIO requires assessing multiple dimensions
of the CIO’s impact :
• Responsibilities of the CIO that are clearly under the
CIO’s control
• Decisions and behaviors influenced by the CIO
• Contributions made by the CIO as a member of the
senior management team generating value for the
enterprise
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ASSESSING THE CIO
CIO Assessment Factors
Accountability & influence
Unit cost/service levels
Business value
Business
IT
Primarily
quantitative
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Process (business & IT)
Both qualitative
And quantitative
Primarily
qualitative
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Current and Future Challenges of
Governance
• Information about products, services and customers will
continue to drive business processes
• Business process modularity will increasingly depend on
an enterprise’s ability to create standardized, reusable
systems, business processes, and data components.
• Enterprises will have to make decisions more quickly,
will increase pressure on governance, particularly joint
business and IT decision making.
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Current and Future Challenges of
Governance (cont.)
• Enterprises will continue to outsource more commodity
IT services.
• In the future, describing how much an enterprise spends
on IT will be meaningless. IT will be imbedded in every
process and budget, just like capital.
• Effective governance allows enterprises to extract
maximum value from IT and ultimately all six key assets
of the enterprise.
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