Critical Success Factors (CSFs) for Effective IT Governance Implementations
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The document discusses critical success factors (CSFs) for effective IT governance implementations, emphasizing the necessity of executive sponsorship, resource allocation, and clear understanding of problems. It outlines the role of IT governance in ensuring strategic alignment, value delivery, and risk management within organizations. Additionally, it highlights the importance of adhering to frameworks and maintaining a continuous improvement approach to achieve organizational objectives.
Critical Success Factors (CSFs) for Effective IT Governance Implementations
- 1. Rachid Meziani, PhD, CGEIT, PMP GRC Kuwait Forum: 6-7 March 2018 CriticalSuccessFactors(CSFs) forEffectiveITGovernance Implementations
- 2. Agenda • Background • Positioning IT Governance • IT Governance Drivers • Success Factors • Summary 2
- 3. We’ve always done it this way! 3
- 4. IT Governance Defined 4 gov·er·nance noun(ˈgə-vər-nən(t)s) : the way that a city, company, etc., is controlled by the people who run it
- 5. What is IT Governance? 5 It is … The responsibility of the Board and Executive It consists of … The Leadership, Organizational Structures, and Processes To ensure that the enterprise’s IT … Sustain and extend organizational strategies and objectives
- 6. Why IT Governance? 6 GEIT Objectives IT Value Delivery to the Business Mitigation of IT-related risks ▪ Strategic alignment ▪ Resources availability & Mgmt. ▪ Monitoring
- 7. 7 Enterprise governance is about: Conformance Adhering to legislation, internal policies, audit requirements, etc. Performance Improving profitability, efficiency, effectiveness, growth, etc.
- 8. Positioning IT Governance 8 IT Governance supports both Corporate and Business Governance inside Enterprise Governance
- 9. IT Governance focus areas 9 IT Governance should focus on these key areas: ▪ Strategic alignment with business ▪ Value delivery ▪ Risk management ▪ Resource management ▪ Performance measurement
- 10. Context - IT Governance 10 What is the purpose of IT? How is IT managed?
- 11. 11 IT Governance "Which skills should be developed and kept internal and which activities should be outsourced?" "How should the IT service portfolio be managed and controlled from a corporate perspective?" "How should BUILD, TRANSFORM, and RUN be managed? How should the development process look like? What are appropriate standards for delivery (SLAs, availability ...)? "How are corporate-wide architecture standards developed and implemented for the entire organization?" How is IT managed? "How should the IT organization be structured to account for local and global needs?" "How well are the overall business strategy and IT strategy aligned?" What is the purpose of IT for the company? Overall: "How much value does IT contribute to the organization?" Business and IT strategy alignment IT architecture IT planning and controlling IT leader- ship and organization Skills and sourcing IT develop- ment and delivery Context - IT Governance
- 12. IT governance is an integral part of corporate governance and analogously combines leadership, organizational structures, and processes that ensure that IT sustains and extends the organization’s strategies and objectives IT governance provides guidelines, establishes criteria and standards for decision making, monitoring, measuring, and improving the performance of IT IT governance is the responsibility of the executive board and the executive management (incl. IT) and supports the interaction of all the organization's parties involved with IT What? How? Who? 12
- 13. What are the Drivers? 13 Need for new or improved IT governance organization is usually recognized by: Pain points / trigger events Board and executive management should: ▪ Analyze pain points to identify root cause ▪ Look for opportunities during trigger events
- 14. Typical Pain Points 14 • Failed IT initiatives • Rising costs • Perception of low business value for IT investments • Significant incidents related to IT risk (data loss) • Service delivery problems • Failure to meet regulatory or contractual requirements (GDPR) • Audit findings for poor IT performance or low service level
- 15. IT GovernanceTrigger Events 15 ▪ Merger, acquisition or divestiture ▪ Shift in the market, economy or competitive position ▪ Change in business operating model or sourcing arrangements ▪ New regulatory or compliance requirements ▪ Significant technology change or paradigm shift
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- 17. External IT service providers Internal IT service providers (IT organization, shared services center) Transparency needed: roles, influence and mandate of each involved party Board of directors Central functions (Corporate strategy, Accounting, Controlling, HR ...) Business units, subsidiaries, affiliated companies Employees, workers' council Cooperation Regulatory authorities(1) 17
- 18. Each framework can be deployed in different situations accordingly ITIL Business/IT alignmentIT focus Focus on operations Focus on strategy BCG Gartner Giga Group COBIT ISO 27001 ITIL Company individual De facto standard IT process performance controls and metrics IT security management IT services management Structure of global IT organizations KPMG IBM IT decision structures and processes Business and IT strategy integrated Business and IT strategy alignment Implementation of IT governance using CobiT, ITIL Content Primary objective 18
- 19. Critical Success Factors (CSF) 19 Limited number (usually between 3 to 8) of characteristics, conditions, or variables that have a direct and serious impact on the effectiveness, efficiency, and viability of an organization, program, or project. Activities associated with CSF must be performed at the highest possible level of excellence to achieve the intended overall objectives. Also called key success factors (KSF) or key result areas (KRA).
- 20. 20 IT Governance Critical Success Factors (CSFs) 1 2 3 4 5 6 7
- 21. 1. Get Executive Sponsorship 21 ▪ The higher in the organization the better. If IT governance is seen as “optional,” it won’t work. ▪ On the business side, it would be ideal to have a C-level executive.
- 22. 2. Put Resources on the Team 22 ▪ Success depends on strong teamwork and alliances across IT and the business side. ▪ By exposing both key business-side and IT users to the system early, you create champions who carry the story across the company Marshmallow Challenge
- 23. 23 2. Put Resources on the Team
- 24. 3. Understand the Problem 24 ▪ Aim before you fire. Take the time to determine where you’re starting from in the Capability Maturity Model. ▪ Pick an attainable target to start with, ideally a particular pain point that is costing you time and money.
- 25. 25 where you’re starting from in the Capability Maturity Model?
- 26. 4. Envision the Solution 26 ▪ Think hard about what you want to accomplish initially. Set goals high, but don’t make them unattainable—it demoralizes people. ▪ Make sure your requirements are clearly defined and universally understood among all the stakeholders. ▪ Stick to the original plan once you’ve adopted it ▪ Focus on process improvement areas.
- 27. 5. Pick the Right Software for the Right Reasons 27 ▪ Recognize that successful IT governance requires clear, enforceable processes and standards. ▪ Think beyond your initial implementation. ▪ Leverages, best practice frameworks such as ITIL and CMMi, and supports such quality issues as Six Sigma.
- 28. 6. Take Small Steps 28 ▪ Don’t “swing for the fences.” ▪ Training is extremely important. ▪ Take the time to win recalcitrant users over through collaborative engagement. ▪ You have to keep moving forward once you’ve started. Small steps will get you there,
- 29. 7. Include Post-Implementation Activities 29 ▪ This is one of the most overlooked parts of the process, though it is potentially the most important. ▪ Make sure you have developed clear plans for the transition. ▪ This is a critical time to assess the effectiveness of your training. ▪ This is also the time to promote the system on the business side. ▪ Actively ask for feedback.
- 30. Summary 30 ▪ IT Governance is more than just a process- and-organization recipe ▪ IT Governance is first of all a management challenge taking into account the enterprise’s culture. ▪ Recognizing that CSFs are essential for successful IT Governance ▪ It is a long Journey …
- 31. 31 Where there is poor organizational governance practice in place, it will be difficult to implement good IT and information practice that delivers consistent quality deliverables. Alison Holt
- 32. Rachid Meziani, PhD, CGEIT, PMP @rmeziani http://www.linkedin.com/in/rachidmeziani
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