IT governance still seems to be a big black hole for the majority of organizations. Lack of clarity leads to CIOs resigning or companies wanting to find a new one after an IT failure. In this article at CFO.com, Martha Heller shares 5 IT governance best practices that you must follow for better outcomes.
Governance Best Practices
Organizations keep aside a major amount of their annual budget for IT initiatives and maintenance. It is disappointing when CFOs do not know whom CIOs are writing off these checks to. IT governance allows filling this gap. This approach helps seniors to understand and supervise IT investments. You can use the following best practices to receive clarity on investments:
1. Set Up Your Business Goals:
IT governance ensures that the IT strategy aligns with the company objectives. You need to know which direction you want the business to go before setting up a committee.
2. Assess Continuously:
Jeanne Ross, director at MIT, opines that governance should help understand IT better. Instead of starting with the implementation reviews, she observes that companies prefer working on the IT budget first. With an effective committee, you must, in fact, continuously monitor ROIs for each business case. Before moving on to another IT project, understand the success and shortcomings of the current one.
3. Keep to the Core Committee:
Though it is exciting to start a new IT initiative, inviting all to add their two bits can lead to confusion. Have regular meetings with the core committee and update the business partners on the project progress. This is necessary to keep them involved and prevent withdrawal of funds and support midway. They should know where the project is headed and what responsibilities each should shoulder to enjoy the resultant success.
4. Effective Governance Does Not Mean Successful Projects:
An IT governance committee supervises the investment and has no control over the project management. So, despite having a superb committee in place, an IT project can fail. Just being present in the meetings will not yield any result. You can experience success in the project when both the IT and business leaders start carrying their own weight.
5. Shape It as per Your Organizational Structure:
If your company has operations worldwide, it is bound to have more complex processes. Build your governing team as per the organizational structure. The senior management should know every action the committee takes to give you the required support. Ross remarks that the more people know about the IT processes, the easier it is to achieve success.
To view the original article in full, visit the following link: http://ww2.cfo.com/it-value/2012/08/five-best-practices-for-it-governance/