Read the summary and the most important questions on Don’t Just Lead, Govern: Implementing Effective IT Governance

• 1 HC 1 – Course introduction and ITG

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• What is IT investment and prioritization 

  
  
  
  

  • choose which initiatives to fund and how much to
    spend
    
    

• What is business monarchy?

  
  
  
  A group of business executives or individual executives (CxO’s). Includes committees of senior executives (may include CIO). Excludes IT executives acting independently.

• 2 WC1 – Why is IT Governance Important?

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• Why does ITG matter?

  IT governance matters because it influences the benefits received from IT investments.
  - Does IT matter?
  - Extracting value from IT requires innovations in business practices.
  - IT spending rarely correlates with superior financial results.
  - Need to change practices and exploit new capabilities.
  - Link it to innovation.
  ROI IT = f(BPI, Governance, matched IT investments)

• How top performers govern IT

  - Governance performance is a function of:
  o Cost-effective use of IT
  o Effective use of IT for asset utilization
  o Effective use of IT for growth
  o Effective use of IT for business flexibility
  
  - Financial performance is assessed by comparing three-year averages of industry adjusted measures of profit (ROE), growth (% change in revenue) and asset utilization (ROA).
  - Governance performance was associated with duopolies for IT principles/investments. 
  - The poorer governance-performing enterprises typically use federal arrangements for their decision making. 
  - Leaders on Asset Utilization 
  - Leaders on Profit 
  Leaders on Growth

• What does  ''Governance performance was associated with duopolies for IT principles/investments.'' mean

  o IT duopolies work well for these decisions because they enable joint decision making between the business leaders and IT professionals, but remain focused on the specific and often local issues facing the business leaders.

• What does - Leaders on Asset Utilization mean?

  IT duopoly governance for all five IT decisions.

• What does Leaders on Profit mean?

  o Centralized IT governance approach with IT-savvy business leaders (e.g. business monarchies) making the IT decisions on principles, architecture, and investments.

• What does - Leaders on Growth mean?

  o A business monarchy typically defines the IT principles, attempting to balance operational unit and firm-wide goals.
  o IT investments are typically governed by either feudal or a business monarchy

• What is Infrequently redesigned

  - Rethinking the entire IT governance design is a major undertaking, so it should be done infrequently and only when desirable behaviours change.

• What is Education about IT governance

  Education to help managers understand and use IT governance mechanisms is critical.