Matakuliah
Tahun
: Pengantar IT Governance
: Feb - 2010
Mechanisms for Implementing IT Governance
Pertemuan ke-11 & 14
IT Governance – three mechanisms
• Decision making structures
– Org units and roles for making IT decisions such as
committees, executive teams, business/IT relationship
managers
• Alignment processes
– Formal processes for ensuring daily behaviors are
consistent with IT policies and provide input back to
decisions
• Communication approaches
– Announcements, advocates, channels, education efforts
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Decision making structures
The most visible IT governance mechanisms are the
organizational structures that locate decision-making
responsibilities according to intended archetypes.
Ideally, every enterprise engages both IT and business
leaders in the governance process.
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Decision-making structures are
The natural approach to generating commitment – albeit
some executives have been known to wiggle out their IT
governance responsibilities.
Enterprises with effective governance mix and match
decision-making structures to implement predetermined
archetypes and ultimately achieve organizational goals.
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Business Monarchy Decision-Making Structures
Business Monarchies – usually in the form of executive
committees – often play a role. Enterprises vary
considerably in the design of their executive commitees.
In some enterprises the CEO works with a small team of
top executives to ensure that IT aligns with corporate
objectives.
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Federal Decision-Making Structures
Senior executive committee played a role in IT governance.
Where these senior executive teams drew members from
all business units, they implemented a federal rather
than business monarchy archetype.
Because fereal structures overtly work to balance
enterprise and business unit priorities, they can provide
valuable input to IT governance decisions.
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• The desire for shared data and IT infrastructures is at the
heart of most federal IT organization designs.
• Mechanisms implementing federal IT governance protect
business unit autonomy while developing the standards
needed for integrated business capabilities.
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IT Monarchy Decision-Making Structures
IT monarchies make most of the world’s IT architecture and
infrastructure decisions.
The two most common implementations of IT monarchies :
- IT leadership teams
- IT architecture committees.
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IT leadership teams
• The IT monarchy is represented by IT leadership teams.
• Leadership teams may comprise IT functional heads
(operations, architecture, applications, and so on).
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IT architecture committees
• IT architecture committees are responsible for defining
standards and in some cases granting exceptions.
• The role of the architecture committee is to advise the IT
leadership team on architectural issues, but occasionally
the architecture committee is a key governance decisionmaking body.
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Coordinating Business and IT Monarchies
• IT monarchies are a natural and valuable approach to
applying the enterprise’s IT expertise.
• But the risk of IT monarchies is in coordinating IT efforts,
they can become isolated from organizational reality.
• Enterprises waste considerable resources making
technical improvements that no one converts into
business value.
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• Overlapping membership in IT leadership teams and
senior executive teams, often in the person of the CIO,
can align the activities of IT and business monarchies.
• The effect of these IT monarchies is then similar to a
federal arrangement, though it is simpler to implement.
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Duopoly Decision-Making Structures
• The typical role of business leaders in IT governance is
to clarify business objectives and incorporate IT
capabilities into strategy formulation.
• The typical role of IT leaders is to help envision IT
enabled strategies, clarify architectural standards and
design shared infrastructures.
• The responsibilities of these two groups are obviously
intertwined.
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3 mechanisms support duopoly archetypes :
• IT Councils with Joint Business / IT Membership
• Process Organizations
• Business / IT relationship managers.
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IT Stewardship Model
Enterprise
information solution
(EIS) steering
committee
IT council
• Business group
• CTO/EIS leadership
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Business performance
teams
• Source and support
• Production operations
• Business and
operations analysis
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Alignment processes
• Alignment processes are IT management techniques for
securing widespread involvement in the effective
management and use of IT.
• Alignment processes should bring everybody on board
both by providing input into governance decisions and by
disseminating the outputs of IT decisions.
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Key alignment processes include :
•
•
•
•
•
•
IT investment approval process
The architecture exception process
Service level agreements
Chargeback
Project tracking
Formal tracking of business value from IT.
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Communications Approaches
Communication mechanisms are intended to ‘spread the
word’ about IT governance decisions and processes and
related desirable behaviors throughout the enterprise.
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Communication Approaches
•
•
•
•
•
Senior Management Announcements
Formal committees
Office of CIO or IT Governance
Working with Nonconformists
Web-based portals
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High-Impact but Challenging Mechanisms
Mechanisms
Objectives
Desirable Behavior
Undesirable Behavior Observed
Executive and senior management
committee
Holistic view of business, including
IT
Seamless management
incorporating IT
IT ignored
architecture committee
Identify strategic technologies and
standards
Business driven IT decision
making
IT police and delays
Process teams with IT membership
take process view using IT
effectively
End to end process
management
Stagnation of functional skills and
fragmented IT infrastructure
Capital investment approval and
budgets
Consider IT as another business
investment
Prudent IT investing-different
approaches for different
investment types
Paralysis by analysis
Service level agreements
Specify and measure IT service
Professional supply and
demand
Manage to SLA not buisness need
Chargeback
Recoup IT costs from business
Responsible use of IT
Arguments about charges and warped
demand
Formal tracking of business value of IT
Measure IT investments and
contribution to business
value often using balanced
scorecard
Makes transparent : goals,
benefits, and costs
Separates IT from other assets (focus on
money, not value)
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Case study : Carlson
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Coordinating Multiple Mechanisms
The case of Carlson companies
• IT Principles :
– Application development can continue to take place
within operating groups, but applications should be
presented to users through a shared portal, and
where necessary, data will be shared across business
units.
– Carlson will have a shared IT infrastructure.
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Case study : Carlson
• Decision-Making Structures
• Carlson Technology Archetecture Committee
(CTAC) -- Enterprise Architecture Organization
(EOA)
• Carlson Shared Services (CSS)
• IT Council
• Investment Commitee
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Case Study : Carlson
• Alignment Processes
– Service Catalog
– Investment and Funding Approach
– Architecture Exception Process
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Case Study : Carlson
• Communication Tools
– Senior Management Announcements
– Formal committees that disseminate their decisions.
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Implementing governance :
Principles for mechanisms
3 Characteristics of Mechanisms :
•
•
•
Simple
Transparent
Suitable
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• Simple  Mechanisms unambiguously define the
responsibility or objective for a specific person or group
• Transparent  Effective mechanisms rely on forma
processes
• Suitable  mechanisms engage individuals in the best
position to make given decisions
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5 Principles for designing effective sets of mechanisms :
• Choose mechanisms from all three types
• Limit decision-making structures.
• Provide for overlapping membership in decision-making
structures
• Implement mechanisms at multiple levels in the
enterprise
• Clarify accountability
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Governance Mechanisms
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Use of Governance Mechanisms
Effectiveness of Governance Mechanisms
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