Measuring the Unmeasurable: Governance & Management of Information Technology
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Transcript of Measuring the Unmeasurable: Governance & Management of Information Technology
©2010 Infonomics Pty Ltd Governance & Management of IT 21 April 2023
Measuring the Unmeasurable:Governance & Management of
Information Technology
Mark ToomeyAuthor: Waltzing with the Elephant
Managing Director Infonomics Pty LtdMember, Standards Australia Committee IT-030
Member, ISO/IEC JTC-1 WG6
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©2010 Infonomics Pty Ltd Governance & Management of IT 21 April 2023
Today’s briefing
• The topic, and the problem: Governance of Information Technology;
• The ISO 38500 Framework for governance;• The Infonomics approach to assessment;• What we learn about governance effectiveness.
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©2010 Infonomics Pty Ltd Governance & Management of IT 21 April 2023
The topic and the problem:
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… IT keeps going wrong!2004
Five Day Fiasco
2005
Cargo Management
2006
ERP Consolidation
2007
Futures Market
2009
Amadeus
2010
Crippled
2010
Year 2010
2008
Terminal 5Choked
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©2010 Infonomics Pty Ltd Governance & Management of IT 21 April 2023
The promise of Information Technology...
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... or a shattered dream.
©2010 Infonomics Pty Ltd Governance & Management of IT 21 April 2023
We have tried to make IT better… …but we have missed the key issue!
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©2010 Infonomics Pty Ltd Governance & Management of IT 21 April 2023
ISO 38500: First GlanceAustralian guidance leads the world…
21 April 2023
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Corporate Governance: The System by which
entities are directed and controlled.
(Cadbury)
The ISO 38500 Framework for governance:Part of Corporate Governance.
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Adapted from “Corporate Governance – A Working Definition”, Teresa Barger, Director IFC/World Bank Corporate Governance Department
Adapted from “Corporate Governance – A Working Definition”, Teresa Barger, Director IFC/World Bank Corporate Governance Department
Governance“Protect owners interests”
Management“Develop business capabilities”
“Run business operations”
Ownership“Appoint the Directors”
EstablishStrategy
Direct Monitor
Definition from “Report of the Committee on the Financial Aspects of Corporate Governance” (Chair: Sir Adrian Cadbury), London, 1992
Definition from “Report of the Committee on the Financial Aspects of Corporate Governance” (Chair: Sir Adrian Cadbury), London, 1992
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Ongoing business
operations
StrategicBusinessFuture
Reliable IT Service
Effective IT enabled change
Information technology in context...
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Business Domain: How IT
is used to enable and operate the
business
IT Domain: How IT is
managed and delivered.
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... management responsibilities.
©2010 Infonomics Pty Ltd Governance & Management of IT 21 April 2023
Ongoing business
operations
StrategicBusinessFuture
Reliable IT Service
Effective IT enabled change
Business Domain: How IT
is used to enable and operate the
business
IT Domain: How IT is
managed and delivered.
Information technology in context...
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Ongoing business operations
StrategicBusinessFuture
Reliable IT ServiceEffective IT
enabled change
Business Domain: How IT is used to enable and operate the business
IT Domain: How IT is managed and
delivered.
Dem
and
Dem
and
©2010 Infonomics Pty Ltd Governance & Management of IT 21 April 2023
GovernanceEvaluate
Information technology in context...... Governance oversees management.
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Managem
en
tR
esp
onsi
bili
tyTop level
overs
igh
t
Th
e S
yst
em
of
Govern
ance
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Ongoing business operations
StrategicBusinessFuture
Reliable IT ServiceEffective IT
enabled change
Business Domain: How IT is used to enable and operate the business
IT Domain: How IT is managed and
delivered.
Dem
and
Dem
and
Direct MonitorCurrent & proposed
demand for & supply of IT
©2010 Infonomics Pty Ltd Governance & Management of IT 21 April 2023
GovernanceEvaluate
Governance and management of IT...... a symbiotic system...
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Managem
en
tR
esp
onsi
bili
tyTop level
overs
igh
t
Th
e S
yst
em
of
Govern
ance
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Business Domain: How IT is used to enable and operate the business
IT Domain: How IT is managed and
delivered.
Ongoing business operations
Reliable IT Service
Dem
and
StrategicBusinessFuture
Effective IT enabled change
Dem
and
Direct MonitorCurrent & proposed
demand for & supply of IT
Evaluate
Direct Monitor
IT enabled business
operations
IT enabled business change projects
Business
Pressures
©2010 Infonomics Pty Ltd Governance & Management of IT 21 April 2023
Governance and management of IT...... a symbiotic system...
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GovernanceEvaluate
Direct Monitor
IT enabled business
operations
IT enabled business change projects
Business
Pressures
Business
Pressures
Governance
Management
Evaluate
Direct Monitor
IT enabled business change
projects
IT enabled business
operations
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Governance and management of IT...... a symbiotic system based on principles.
ISO 38500 principles• Responsibility;• Strategy;• Acquisition;• Performance;• Conformance;• Human Behaviour.
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Business
Pressures
Governance
Management
Evaluate
Direct Monitor
IT enabled business change
projects
IT enabled business
operations
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©2010 Infonomics Pty Ltd Governance & Management of IT 21 April 2023
The ISO 38500 Assessment FrameworkAre we governing and managing effectively?
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What does each cell mean?
How do you perform?
What should you seek to improve?
What consequences of improvement should you seek?
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©2010 Infonomics Pty Ltd Governance & Management of IT 21 April 2023 Page 15
The Infonomics Assessment System:The first 6 Indicators from a set of 84 points.
11 22 33 44 55 66Huh?Huh? NoNo Very littleVery little SomewhatSomewhat
Assertion Score
1 Your organisation has a formal system for Governance of (to direct and control) IT.
2 All business and technology managers understand and comply with the system for Governance of IT.
3 The system for Governance of IT protects you from IT failures in operations and projects.
4 The system keeps management and directors properly informed of IT status.
5 Ongoing business dependence on IT is well understood.
6 IT is used effectively in day to day business operations and plans for IT use contribute to future business sustainability.
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Very closeVery close ExactlyExactly
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The Infonomics Assessment System:The scoring model.
• Assertions reflect good practice and outcomes that would be observed in organisations that have good governance that is well aligned with ISO 38500.
• Consider each and score it using the 1 to 6 scale below.
• Score 1 if you think your organisation would not understand the point.
• Score 2 if your organisation would understand it, but clearly doesn’t do it.
• Score higher as you see the extent of alignment.
11 22 33 44 55 66Huh?Huh? NoNo Very littleVery little SomewhatSomewhat Very closeVery close ExactlyExactly
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The Infonomics Assessment System:Interpretation framework.
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1122
3344
5566
Unknown GapUnknown Gap
Known GapKnown Gap
WeakWeak
BasicBasic
GoodGood
ExemplaryExemplary
Don’t know what a car is.Don’t know what a car is.
Know what a car is: Can’t drive.Know what a car is: Can’t drive.
Can get the car moving – crash at first corner.Can get the car moving – crash at first corner.
Can drive to many places. Crash if there’s oil on the road.Can drive to many places. Crash if there’s oil on the road.
Competently identifies and controls most road hazards including the bad driving of others.Competently identifies and controls most road hazards including the bad driving of others.
Never gets driving wrong, whether on public roads or race tracks.Never gets driving wrong, whether on public roads or race tracks.
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The Infonomics Assessment System:Benchmarking and comparing performance
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Principles Responsibility Plan Acquire Perform Conform Human Factors
Corporate Governance of ICT - Indicators
Exemplary
Good
Basic
Weak
None
No view
Human Communities:•Who are they?•How do they behave?•What do they need?•What motivates them?
Human Communities:•Who are they?•How do they behave?•What do they need?•What motivates them?
Principles Strategy Performance Human Behaviour
RMIT and Infonomics research 2006-7. Published in “Achieving Business Sustainability” (Infonomics), and “Information Technology Entrepreneurship and Innovation”, edited by Fang Zhao, published by IGI Global, 2008.
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Responsibility Acquisition Conformance
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The Infonomics Assessment System:Behavior drives performance
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Can improved conformance lead to better re
sults?
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The Infonomics Assessment System:Cross referencing provides insight
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Corporate Governance of ICT - Indicators
Exemplary
Good
Basic
Weak
None
No view
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©2010 Infonomics Pty Ltd Governance & Management of IT 21 April 2023 Page 21
The Infonomics Assessment System:Detailed modeling exposes behaviour patterns.
• One executive (X1) has a much more positive view, consistently, across all assertions, including several “exemplary”.
• Technology managers tend to be broadly consistent in their views, and see things differently to the business managers in several areas. However most executives agree with technology managers.
• One executive (X1) has a much more positive view, consistently, across all assertions, including several “exemplary”.
• Technology managers tend to be broadly consistent in their views, and see things differently to the business managers in several areas. However most executives agree with technology managers.
• Broader engagement and some comfort in finance may be linked to closer engagement on SAP.
• The “black holes” reflect poor business engagement and participation in setting the IT agenda. Improvement in this area would almost certainly help performance in other areas.
• Broader engagement and some comfort in finance may be linked to closer engagement on SAP.
• The “black holes” reflect poor business engagement and participation in setting the IT agenda. Improvement in this area would almost certainly help performance in other areas.
Alignment Index = 3Alignment Index = 3Overall ViewOverall View
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T1
T5
T2
T4
T3
F3
F1
F5
F2
F6
R6
R4
R1
S5
S2
S3
S4
M1
M3
M8
M4
X1
X6
X8
X3
X5
X1
0 G1 Governance system
G2 Management compliance
G3 Effective protection
G4 Inform & engage
G5 Dependence understood
G6 Continuity & sustainability
G7 Business alignment
G8 Resource allocation
G9 Business innovation
G10 Investment value
G11 Deployment capability
G12 Acceptable risk
AS8015 Alignment - Top level by role
©2010 Infonomics Pty Ltd Governance & Management of IT 21 April 2023 Page 22
Questions
More information: www.infonomics.com.au
The Infonomics LetterWaltzing with the Elephant
Today’s slides:www.infonomics.com.au/PresACOSM2010.htm
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