F ROM THE B IG P ICTURE TO D AILY O PERATIONAL P ROCESSES 1

2 Economist "The Shareholder Awakens"

3 White Board Ideas Enterprise - How does IT (or any department) fit in? IT Sub-IT functions (network, data center, applications, security, etc) Cross functional governance

4  Enterprises are sacrificing money, productivity and competitive advantage by not implementing effective IT governance  Executives need a better way to:  Direct IT for optimal advantage  Measure the value provided by IT  Manage IT- related risks

5 An apparel manufacturing company’s difficulties in installing supply chain software cost it an estimated US $200 million A publicly traded company admitted that a virtual collapse of its financial reporting system reduced its market value by one-third in a single day An operational meltdown after the merger of two transportation companies was traced to the inability to coordinate their IT systems A major airline’s supply chain transformation improved the forecast of demand, reduced procurement costs and increased service levels A technology products and services company saved US $12 billion by linking pieces of its supply chain and reducing inventory levels

Information Services Information Systems (IS) Information Technology (IT) 6

7 Business Intelligence at SYSCO 1.Read the excerpt from the case 2.Make notes about key governance issues 3.Prepare for group discussion

8 Your own organization Describe what governance policies and processes you would design and apply to your own organization. Large and small organizations shed different light to consider, such as degree of formality, legal considerations, resources required, time efficiency, ability to enforce decisions, etc. Your insights into your specific situation are important to share, and for others to consider when building their own." Your answers are for your private use. However … Prepare a synopsis of key points for contributing to group conversation

9 Control Objectives for Information and related Technology COBIT

10 ITEC Support Group Project Review Team ITOC Apps Steering Committees Partnership Committee ITEC Vendor Plans / Roadmap NWH Plans / Roadmap Application Priorities New Projects Decision Feedback Decision Information An IT Governance Model details …

 If there are decisions to be made someone will exercise the authority to do that  In lean times governance loses its relevance  If a senior executive overrides decisions, people will not cooperate  It's worth asking if an organization with capital constraints can afford to invest time and money in a process that may, ultimately, frustrate the staff and waste resources 11

 Every project requires an executive sponsor  Every proposal must include a business case  Workflow must be assessed and redesign included  Standards apply  No end runs 12

 Committee chairs must sit on the next higher level in the decision tree  A structure with unconnected levels of governance WILL break down.  Each committee level must understand what it can decide on its own… and when it can advise. 13

Wenzlick's First Law If you find yourself believing you should go out on a limb, make up a list of those who must go out on the limb with you. Include anyone who owns a saw, knows someone who owns a saw and anyone who has money and knows where to buy a saw. 14