1. ForrTel: IT Governance Frameworks
Craig Symons
Principal Analyst
Forrester Research
June 21, Call in at 12:55 p.m. Eastern Time

2. IT alignment and value are derived from good IT governance
Theme
IT alignment and value are derived from good IT governance

3. Agenda IT governance defined An IT governance maturity model
Structural issues to consider
The four dimensions of IT governance
Existing frameworks
The three pillars of IT governance
Recommendations

4. Definition
IT governance is the process by which decisions are made around IT investments. How these decisions are made, who makes the decisions, who is held accountable, and how the results of the decisions are measured and monitored are all parts of IT governance.

5. IT governance vs. enterprise governance
Governing for
constraints
Governing for
success
Accountability
fiduciary
responsibility
Wealth/value
creation
sustainability
Conformance/compliance
Performance/results

6. The five decision types
IT governance
IT principles
IT architecture
IT infrastructure
strategies
Business
application needs IT
investment
These are high-
level statements
about how IT is
used in the business
Defining integration and standardization requirements
Determining shared and enabling services
Specifying the business need for purchased or internally developed IT applications
Choosing which initiatives to fund and how much to spend
Source: Forrester Research, Inc.

7. IT governance maturity model
Best practices
At the fourth level of maturity, IT governance processes are fully evolved and optimized across the enterprise. A strong IT portfolio management process is in place to ensure that all IT investment decisions are optimized; the CEO and executive team are active participants in the governance process; and IT strategy is part of the enterprise strategy. IV
Consistent
At the third level of maturity, IT governance processes have been consistently applied across the enterprise. All business units/entities conform to the same set of IT governance processes. IT investment decisions are based on the enterprise view.
III
Fragmented
There is an attempt to formalize IT governance processes but on a fragmented basis. These formalized processes may exist in one or more business units and IT decisions within those business units may be optimized, but there is no enterprise-wide effort to coordinate investment decisions or examine tradeoffs between business units or enterprise-wide investments versus BU investments. II
Ad hoc
There are no formal IT governance processes, and it's not recognized by management as being a necessity. IT investments are made on a completely ad hoc basis. This scenario is almost always found in highly decentralized organizations, but it is not limited to them. I
Source: Forrester Research, Inc.

8. Structural issues to consider
Project based
All IT resources are centralized under a single reporting structure with
centralized resource allocation (staffing). The organizational structure is built around resource pools. Line managers are replaced by resource managers.
Federated
IT takes on a hybrid structure. A centralized IT organization supports all infrastructure and enterprise-wide applications, usually in a shared services environment. Individual business units maintain their own applications development organizations and budgets for business unit specific systems.
Decentralized
IT is decentralized by business unit, operating group, subsidiary, or geography. Each of these entities has its own CIO, IT organization, and IT budget. There is little or no attempt to coordinate across units or with corporate. Corporate IT supports the corporate HQ staff and perhaps some enterprise-wide applications.
Centralized
IT is centralized under a single Enterprise CIO. All IT systems and budgets reside at the corporate level.
Source: Forrester Research, Inc.

9. The four dimensions of IT governance
IT value
and
alignment
Accountability IT
governance
Performance
management
Risk
management
Source: Forrester Research, Inc.

10. Existing frameworks
COBIT
ITIL
ISO 17799

11. Source: Forrester Research, Inc.
COBIT
Source: Forrester Research, Inc.

12. Planning to implement service management
ITIL T h e B u s i n T h e c n o l g y
Planning to implement service management
The
business
perspective
Service mgmt
ICT infrastructure
management
Service
support
Service
delivery
Security
management
Application management
Source: ITIL

13. ISO 17799 Business continuity planning System access control
System development and maintenance
Physical and environmental security
Compliance
Personal security
Security organization
Computer and operations management
Asset classification and control
Security policy

14. The three pillars of IT governance
structures
Governance
processes
Governance
communications

15. Governance structures
Reporting relationships
CIO reports to CEO
Governance specific positions
IT governance officer
IT relationship managers
Committees
IT steering committees
IT architecture and standards committees

16. Governance processes IT portfolio management
Service level agreements (SLAs)
Chargeback mechanisms
Demand management

17. Governance communication
IT balanced scorecard
IT portal
Annual report

18. Recommendations Perform a governance maturity assessment
Understand the structural/cultural issues
Obtain executive buy-in
Develop the governance structures first
Develop processes next
Don’t start from scratch
Communicate, communicate, communicate

19. Thank you Craig Symons csymons@forrester.com www.forrester.com
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