IT governance is not a luxury but an essential element
in a business's long-term survival, according to a BCS seminar on
the subject earlier this month.
Good IT governance provides direction, encourages better
customer relationships, improves performance, drives transparency
across an organisation, helps manage risk, provides a robust
service delivery and pushes towards a higher degree of
professionalism, the seminar heard.
In any organisation the executive should ensure that technology
helps drive the business strategy. Management should enable
technology, create business value and manage risk, while those in
charge of architecture drive technological innovation forward.
Additionally, quality assurance needs to encourage consistency and
deliver appropriate management information.
Good IT governance requires stakeholder management and
communications, decision-making structures, efficient IT processes
and procedures and strategy-driven performance management.
The BCS seminar heard that performance measurement was a vital
area. Companies often get themselves into a "measurement trap"
where the wrong things are measured the wrong way. Companies often
focus too much on delivering measurements rather than services.
Managers need to identify key goals across IT to help support
business strategy. This will also help provide a balance between
"lag" and "lead" key performance indicators. One must, however,
remember that these are simply indicators that can help people see
where they fit within the organisation. When people know how their
job links into the overall business strategy they are more
empowered to deliver. Only in an environment of good communication
can business and workers thrive.
IT sustains and extends an organisation's strategies and
objectives, however, one size does not fit all. Strategies vary, as
do structures and an organisation's culture. Effective governance
builds with, and on, trust, but is contingent on culture.
A balance is required between precise measurement (eg call
duration at call centres) and customer empathy (ie did we solve our
customer's problem?), the seminar heard.
It managers have to accept that they cannot measure everything.
One cannot measure intangibles, one can only design indicators for
them. A business model can create common purpose and shared
identity, but it still requires meaningful and relevant
indicators.
A few years ago the Harvard Business Review famously stated that
IT was "just a utility" and "didn't really matter". This attitude
needs to change. However, this requires that business has the
foresight to allow for changes. IT is a utility, but an important
one, and it needs to become more visible if it is to be recognised
for the significant contribution it makes to a business'
well-being.
There is often insufficient opportunity for IT managers to
engage with the executive and directors, and often very little
dialogue regarding IT and IT governance. IT governance requires
sponsorship from the top of an organisation throughout its
implementation.
Businesses need to encourage better learning and knowledge
sharing within an organisation. There is a real need for improved
performance and quality measuring. Essentially, performance is
everyone's everyday job.