Managers' ignorance of IT governance wrecks projects

Despite CIOs spending huge sums on governance and compliance, many companies are finding that their investment is not being utilised fully.

Despite CIOs spending huge sums on governance and compliance, many companies are finding that their investment is not being utilised fully.

Half of the UK CIOs questioned in a survey by Deloitte and Touche LLP throw 5-16% of IT budget at governance, proving it's a serious item on the business agenda. Yet over three-quarters of the CIOs were convinced their senior managers could not explain their company's IT governance framework.

Deloitte says this 'connection failure' between CIOs and management impacts directly the success of IT change projects. In the survey, 70% of the CIOs claimed that one in four IT projects were over budget or late.

"There's a direct correlation in the way management understand governance and their projects failing," says Stephen Ley, technology assurance and advisory director at Deloitte.

Governance is all about aligning IT to the business, but this alignment is only skin deep, suggests the survey findings. Only 15% of the CIOs designed their service level agreements for performance management with business unit representatives, while only 43% felt senior management and the board had a good understanding of risk management.

"Performance management, risk management, communication and the alignment of strategy are all elements of governance. You don't expect the business to understand network protocols, but you do need them to get involved," says Ley.

Putting in a governance framework will only produce results if business people understand why it is being done, says Ley. .
 

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