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TYPES OF GOVERNANCE
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White Board Ideas
• Enterprise - How does IT (or any department) fit in?
• IT• Sub-IT functions (network,
data center, applications, security, etc)
• Cross functional governance
4
IT GOVERNANCE IS KEY Enterprises are sacrificing money, productivity and
competitive advantage by not
implementing effective IT governance
Executives need a better way to:
Direct IT for optimal advantage
Measure the value provided by IT
Manage IT-related risks
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5
• An apparel manufacturing company’s difficulties in installing supply chain software cost it an estimated US $200 million
• A publicly traded company admitted that a virtual collapse of its financial reporting system reduced its market value by one-third in a single day
• An operational meltdown after the merger of two transportation companies was traced to the inability to coordinate their IT systems
• A major airline’s supply chain transformation improved the forecast of demand, reduced procurement costs and increased service levels
• A technology products and services company saved US $12 billion by linking pieces of its supply chain and reducing inventory levels
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IMPACT OF GOVERNANCE
Information Services
AS A CIO, WHAT BUSINESS ARE YOU IN?
Information Systems
(IS)Informati
on Technolo
gy(IT)
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CASE REVIEW
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Business Intelligence at SYSCO
1. Read the excerpt from the case
2. Make notes about key governance issues
3. Prepare for group discussion
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INDIVIDUAL REVIEW
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Your own organizationDescribe what governance policies and
processes you would design and apply to your own organization.
Large and small organizations shed different light to consider, such as degree of formality, legal considerations, resources required, time efficiency, ability to enforce decisions, etc.
Your insights into your specific situation are important to share, and for others to consider when building their own."
Your answers are for your private use. However …
Prepare a synopsis of key points for contributing to group conversation
9Co
ntro
l Obj
ective
s fo
r In
form
atio
n an
d
rela
ted
Tech
nolo
gy
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WHICH OF YOU USED A FRAMEWORK?COBIT
10www.SteveTarrConsulting.com
ITEC Support Group
Project Review Team
ITOC
Apps SteeringCommittees
PartnershipCommittee
ITEC
Vendor Plans / Roadmap
NWH Plans / Roadmap
Application Priorities
NewProjects
Decisio
n F
eedb
ackD
ecis
ion
Fee
db
ack
Decision Information
An IT Governance Model
details …
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FINAL COMMENTS, 1 OF 4
If there are decisions to be made someone will exercise the authority to do that
In lean times governance loses its relevance
If a senior executive overrides decisions, people will not cooperate
It's worth asking if an organization with capital constraints can afford to invest time and money in a process that may, ultimately, frustrate the staff and waste resources
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FINAL COMMENTS, 2 OF 4
Every project requires an executive sponsor
Every proposal must include a business case
Workflow must be assessed and redesign included
Standards apply
No end runswww.SteveTarrConsulting.com
13
FINAL COMMENTS, 3 OF 4
Committee chairs must sit on the next higher level in the decision tree
A structure with unconnected levels of governance WILL break down.
Each committee level must understand what it can decide on its own… and when it can advise.
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14
FINAL COMMENT
Wenzlick's First LawIf you find yourself believing you should go out on a limb, make up a list of those who must go out on the limb with you. Include anyone who owns a saw, knows someone who owns a saw and anyone who has money and knows where to buy a saw. www.SteveTarrConsulting.com
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