Holistic approach to IT governance needed
While most organisations recognise the importance of IT governance, the majority of these do not have a holistic view that considers all of its dimensions. This is the conclusion of a worldwide study recently conducted by PricewaterhouseCoopers...
While most organisations recognise the importance of IT governance, the majority of these do not have a holistic view that considers all of its dimensions. This is the conclusion of a worldwide study recently conducted by PricewaterhouseCoopers (PwC).
The main objective of the PwC report is to provide more details to the survey statistics as presented in the second global status report on IT governance commissioned by the IT Governance Institute (ITGI), elaborating on a number of practices and issues gathered through face-to-face interviews with CIOs (chief information officers) and IT governance specialists within large organisations worldwide.
Major findings of the report highlighted that top management was the strongest pushing force behind IT governance principles, while the benefits of such implementation are not measured, as organisations find it difficult to quantify results.
Survey findings also indicate that IT alignment was the most appealing result from these practices. Respondents confirmed the importance of IT alignment for the deliverance of sustainable business results, indicating IT governance as one of the best means to achieve it.
The focus of most activities was mainly on IT risk and control activities, thus narrowing the focus of IT governance to a very limited scope. Such initiatives are not considering IT governance holistically as a tool used to enhance the value of IT for the organisation.
In many instances the desired benefits of IT governance are not defined upfront, which makes it impracticable to measure them. Consequently, it is harder to accept changes required to introduce better governing practices.
IT governance is not being properly measured and managed. In those organisations were such practices are measured, these organisations are erroneously measuring the work flow of IT governance process (performance indicator) and only few organisations measure the hard benefits or the induced outcome of the IT governance practices (outcome indicators). Among the benefits reported; were cost reductions, improved customer satisfaction and enhanced alignment between IT and business.
The study also found out that most outsourcing arrangements lack appropriate IT governance considerations and that the IT governance aspects of outsourcing agreements are almost exclusively centrally managed by the corporate CIO office.
Maturity levels vary considerably across organisations; nonetheless, numerous critical success factors were identified. These include
• the support of senior management,
• taking cognisance of the current culture of the organisation during implementation,
• continuous communication to overcome resistance to change and measuring and
• monitoring the progress of the implementation.
Resulting from the current worldwide scenario, focus should be on improving the IT-related decision-making mechanisms and, at a later stage, one should focus on the automation of some of the IT governance mechanisms, PwC said.
The full report is available online on www.pwc.com/mt
The main objective of the PwC report is to provide more details to the survey statistics as presented in the second global status report on IT governance commissioned by the IT Governance Institute (ITGI), elaborating on a number of practices and issues gathered through face-to-face interviews with CIOs (chief information officers) and IT governance specialists within large organisations worldwide.
Major findings of the report highlighted that top management was the strongest pushing force behind IT governance principles, while the benefits of such implementation are not measured, as organisations find it difficult to quantify results.
Survey findings also indicate that IT alignment was the most appealing result from these practices. Respondents confirmed the importance of IT alignment for the deliverance of sustainable business results, indicating IT governance as one of the best means to achieve it.
The focus of most activities was mainly on IT risk and control activities, thus narrowing the focus of IT governance to a very limited scope. Such initiatives are not considering IT governance holistically as a tool used to enhance the value of IT for the organisation.
In many instances the desired benefits of IT governance are not defined upfront, which makes it impracticable to measure them. Consequently, it is harder to accept changes required to introduce better governing practices.
IT governance is not being properly measured and managed. In those organisations were such practices are measured, these organisations are erroneously measuring the work flow of IT governance process (performance indicator) and only few organisations measure the hard benefits or the induced outcome of the IT governance practices (outcome indicators). Among the benefits reported; were cost reductions, improved customer satisfaction and enhanced alignment between IT and business.
The study also found out that most outsourcing arrangements lack appropriate IT governance considerations and that the IT governance aspects of outsourcing agreements are almost exclusively centrally managed by the corporate CIO office.
Maturity levels vary considerably across organisations; nonetheless, numerous critical success factors were identified. These include
• the support of senior management,
• taking cognisance of the current culture of the organisation during implementation,
• continuous communication to overcome resistance to change and measuring and
• monitoring the progress of the implementation.
Resulting from the current worldwide scenario, focus should be on improving the IT-related decision-making mechanisms and, at a later stage, one should focus on the automation of some of the IT governance mechanisms, PwC said.
The full report is available online on www.pwc.com/mt