Governance is a decision making and accountability framework for effective business management. Excellent governance is typically found in top performing companies and is a key factor for success. Poor governance has been highlighted in recent years through scandals receiving much press, such as that of Enron and Worldcom.
IT organizations are now placing a much greater emphasis on this important management concept. Several elements must be considered in developing an effective IT governance strategy including formal metrics, solid processes and procedures, strong management, open communications lines, and a clear set of business priorities.
Providing effective IT governance in the areas mentioned above is critical in developing an IT strategic plan that is closely aligned with the needs of the business. Even so, Computer Economicsâ research indicates that nearly half of all companies still feel their IT strategic planning process is no more than minimally effective, as shown in Figure 1.
Source: Computer Economicsâ 2004 Information Systems Spending & Technology Figure 1
Computer Economics provides ongoing research into many key IT management practices including governance, IT and business alignment, strategic planning, and process development and reengineering. Many of our reports and studies on these important topics provide extensive benchmarking information to help organizations ensure they are on the right track. Computer Economicsâ latest report on governance entitled Improving IT Through Governance will be available by November 15, 2004. To order your copy, contact Computer Economics at 1-800-326-8100 ext. 51.