In today’s IT world, business managers and decision makers face various risks and uncertainties. This mostly happens due to the lack of proper guide with relevant advice and practical standards for updating the personnel with the business revolution. So a proper strategy with IT governance is in a high demand in this industry.
The IT governance is not only confined to the IT related issues, it covers the whole governance strategy of the entity. The organization policy and the practices of the IT management can control the five areas like:
- Value Delivery: Ensure that the IT organization is so designed that it can impel maximum value from the IT. Therefore the value delivery is one of the important factors for accessing the return on investment.
- Resource Management: The IT resources should be used optimally with high level effectiveness. You are required to ensure that there are sufficient amount of fund for the IT at its enterprise level. The infrastructure should be modified for supporting the present and the expected future requirements of the business.
- Alignment: The alignment and the strategic direction of IT should be designed with concern to the services and projects of the business.
- Performance Measurement: With the strategic compliance, the performance can be measured whether it aligns with the IT objectives or not. The performance can be reviewed according to the contribution of IT to the business and it should be checked the promised business values are delivered within the time.
- Risk Management: All the processes must be properly in place so that it can ensure that the risks can be managed properly. The risk assessment factors can be managed through the IT investments.
How can IT Governance Work for Your Organization?
The IT Governance includes a number of realistic process and organizational issues. While planning for the IT governance, the enterprise wide approach can be adopted in the following methods:
- The IT and the business should go hand in hand while defining the control requirements
- A particular control model can be applied with the business units and the divisions where the IT needs to be developed.
- For setting up, monitoring, directing and agreeing, the committee approach is always recommended.
- The IT governance should be shared throughout the enterprise with a common language
- A clear understanding and approval from the stakeholders can be included within the scope of IT governance
The highly effective commitment with the clear accountability is very important:
- Right from the executive level, the IT governance require a mandatory standard for practicing successfully
- The accountabilities and the responsibilities of the management should be clearly stated
A control framework and the agreed IT governance is required:
- Though there are obstructions and challenges, a consensus is required for defining the IT processes and to manage the functions in the right process.
- The IT governance processes can be integrated with all the government practices that take place in the IT organizations.
- Through the effective communication and awareness campaigns, the framework of the IT organization requires to be supported by an effective communication.
- All the incentives are to be considered while adhering to the frameworks of the IT organization.
- The IT organization can maintain a proper balance between the central policies and the implemented practices.
Trust is very important for the IT functions:
- The IT service providers can supply their services in the organization and can gain trust. Joint workshops, awareness programs can really be helpful in gaining the trust.
The performance measurement systems can own or monitor the objectives:
- The IT scorecard will emphasize the achievements of the IT governance objectives
- Creation of standards of measures can be an effective way for raising awareness of the IT governance programs
- The effective measures can be used in business terms that can be approved with the stakeholders
The focus should always be on the cost effectiveness:
- With the implementation of the IT governance rules and the standards, there can be opportunities of the financial savings. The improvement initiatives can gain a lot of support with this implementation process.
Now, let us go through the stakeholders and their actual requirements in the IT governance:
Investors : business partners, business and IT managers
- The investors actually provide the funding for observing the return on the investments and the alignment of the strategic objectives.
- The requirements can be financial which includes the ROI, budget, productivity, and the realization of benefits. The customers will include the feedback, strategies and the strategic objectives. The process requirements can include performance exceptions, transformational capability and the benchmark of the capability. The learning skills will prevent attrition, resource short fall and will enhance the training and development.
Controllers : internal and external audit, industry specific regulators, risk and compliance officers
- The controllers are responsible in monitoring the risk and compliance in the due processes. The regulatory and the legal requirements of the risk management can be accomplished with the proper strategy.
- The financial requirements will control all the improvements of the losses and the investments. The customer’s compliance will include legislations and the regulations. The control effectiveness and the compliance management can be controlled by the process. The learning skills will initiate risk identification and risk prevention.
Providers : procurement and management staff, IT service suppliers
- The providers can meet all the customer requirements with their effective delivery process.
- The financial requirements may include the allocation service, project and operational costs, credit optimization etc.
Key Points from the Article
From the article we can understand the
- The importance of the IT governance
- The basic concept of the IT governance
- The process of using the IT governance in your organization
Therefore, a proper organizational strategy can be delivered with the IT governance which covers every sector like the investors, controllers and the providers of the IT organization.