hicss//track8/pdf). 7 Source: Peter Weill and Richard Woodham, “State Street Corpora- tion: Evolving IT Governance.” Working Paper no. Surely, to improve your life quality, every e-book IT Governance: How Top Performers Manage IT Decision. Rights For Superior Results By Peter Weill, Jeanne. IT Governance: How Top Performers. Manage IT Decision Rights for Supe- rior Results by Peter Weill and Jeanne W. Ross. Boston: Harvard Business School.
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PDF | 25 minutes read | On Jun 1, , Peter David Weill and others published IT Governance: How Top Performers Manage IT Decision. Library of Congress Cataloging-in-Publication Data Weill, Peter. IT governance: how top performers manage IT decision rights for superior results / Peter Weill. This work identified governance is- be associated with the successful use of sues associated with IT and organizational technology. Peter Weill and Jeanne.
Skip to main content. Log In Sign Up. IT governance: How top performers manage IT decision rights for superior results Ardi Satiamulyana.
Implement mechanisms at multiple levels in the enterprise 5. Clarify accountability IT Governance Themes 1. More managers in leadership positions can describe IT governance 2.
Senior management engaged in governance and communicates to rest of organization 3. More direct involvement of senior leaders in IT governance 4. Clear business objectives for IT investment 5. Differentiated business strategies 6. Fewer renegade and more formally approved exceptions 7. Actively design governance 2.
Know when to redesign 3.
Involve senior managers 4. Make choices 5. Clarify the exception-handling process 6. Provide the right incentives 7. Assign ownership and accountability for IT governance 8. Design governance at multiple organizational levels 9. Provide transparency and education Implement common mechanisms across the six key assets IT Governance Themes 1.
Five Key IT Decisions: How are they related?
How must the data be integrated? Ardi Satiamulyana. Peter Weill.
Jeanne Ross. Mike Krey. Ross All rights reserved Printed in the United States of America 08 07 06 05 04 5 4 3 2 1 No part of this publication may be reproduced, stored in, or introduced into a retrieval system, or transmitted, in any form, or by any means electronic, mechanical, photocopying, recording, or otherwise , without the prior permission of the publisher. Requests for permission should be directed to permissions hbsp. IT governance: Includes bibliographical references and index.
ISBN 1. Information technology—Management. Ross, Jeanne W. W Contents Preface and Acknowledgments vii 1.
Five Key IT Decisions: Making IT a Strategic Asset 25 3. Mechanisms for Implementing IT Governance 85 5. Government and Not-for-Profit Organizations 8. Research Sites Appendix B: Do your IT investments target enterprisewide strategic priorities—or does your firm squander resources on diverse tactical initiatives? Sim- ply put, are you getting acceptable value from your IT investments? Firms manage many assets—people, money, plant, and cus- tomer relationships—but information and the technologies that collect, store, and disseminate information may be the assets that perplex them the most.
Business needs constantly change, while systems, once in place, remain relatively rigid. IT implementations involve both up-front and ongoing investments for outcomes that no one can precisely predict. These uncertainties and complexities lead many managers to abdicate their responsibilities for ensuring that their people use IT effectively. For many years, some organizations could succeed despite weak IT management practices. But information—and consequently IT— is an increasingly important element of organizational products and services and the foundation of enterprisewide processes.
Getting more value from IT is an increasingly important organizational competency. Leaders throughout an enterprise must develop this competency. Our research shows that top-performing enterprises generate returns on their IT investments up to 40 percent greater than their competitors. Top-performing enterprises succeed where others fail by imple- menting effective IT governance to support their strategies.
For ex- ample, firms with above-average IT governance following a specific strategy for example, customer intimacy had more than 20 per- cent higher profits than firms with poor governance following the same strategy. IT governance is not about making specific IT decisions— management does that—but rather determines who systematically makes and contributes to those decisions. IT governance reflects broader corporate governance principles while focusing on the management and use of IT to achieve corporate performance goals.
This book is intended to alert both business and IT unit executives to the critical role they play in defining IT governance processes—a role that ultimately deter- mines how much value the enterprise receives from IT.
All enterprises have IT governance. In these enterprises, IT can factor significantly into competitive strategy. Desirable behaviors changed to include optimization of enterprisewide as well as business unit objectives. State Street estab- lished and refined a set of governance mechanisms, including en- terprisewide IT budgeting and an Office of IT Architecture, to encourage the new behaviors.
One financial services firm was pursuing a cost reduction strategy. Rather than create a comprehensive set of mechanisms that would encourage cost sav- ing, this firm relied on a new chargeback system to curtail demand for IT services. When the chargeback system led to bickering among IT and business managers, the CIO assigned relationship managers to restore internal customer satisfaction.
They improved satisfaction scores but did not lower IT or business process costs. Without a cohesive IT governance design, enterprises must rely on their CIOs to ameliorate problems through tactical solutions rather than position IT as a strategic asset. To understand IT value creation, we studied IT governance in over multibusiness unit for-profit and not-for-profit enter- prises in twenty-three countries in the Americas, Europe, and Asia Pacific see appendix A.
Even in the more tech- ness executives or individual executives nically oriented decisions architecture and CxOs. Includes committees of senior infrastructure , about half of the firms used business executives may include CIO.
The authors point Excludes IT executives acting indepen- out that of the six archetypes, the federal dently. Individuals or groups of still maintaining a differentiation between IT executives central and distributed authorities. Business unit leaders, key pro- empirical results for actual decision author- cess owners, or their delegates ity are less consistent. C-level executives and busi- principles tended somewhat to be made ness groups e.
Equivalent of the business executives or corporate ex- the central and state governments work- ecutives but not both. The business mon- ing together. IT executives and one corporate executives alone, also was other group e.
Each individual user p. Decision structures for business applica- By building a matrix with decisions tion needs and investments tended to re- types along the horizontal and archetypes semble each other with the federal and along the vertical, the authors use their duopoly archetypes being common for model to analyze their survey data.
For example, the authors found sions.
Organizational structure sions except architecture 3. Size and diversity decisions 5. Of particular interest to read- ers of this review may be Chapter 7, which specifically addresses government and These differences are attributed to not-for-profit organizations.
In this chap- broader representation in decision mak- ter, the authors use the Metropolitan Po- ing that has been adopted by not-for-profit lice Service-Scotland Yard, the Tennes- organizations in order to balance the chal- see Valley Authority, and UNICEF to il- lenges in developing performance mea- lustrate the use and adaptation of their sures and goals.
Certainly, further thought framework in the public sector. The diffi- about these differences between private culty of measuring value in the public sec- and public sector organizations would be tor is addressed, and a value framework interesting. Strategic for not-for-profit organizations in order to Management in Government, Cam- improve their IT governance performance.
Harvard University Press, These five are the following: The same survey re- capability to provide the unified services vealed that not-for-profits tended to be that have become so critical to govern- more like than unlike for-profits in their mental organizations.
Academics ously for principles pp. First In summary, the concepts and frame- of all, the framework provides a valuable works developed in IT Governance: While the sion Right for Superior Results provide authors offered a few suggestions for ap- both an analytic model and a normative plying the framework in the public sector, framework that managers and academics the existing pubic administration literature can use to better understand IT gover- may offer other opportunities for better nance.