1. Info-Tech Research Group1 1 Info-Tech Research Group, Inc. is a global leader in providing IT research and advice. Info-Tech’s products and services combine actionable insight and relevant advice with ready-to-use tools and templates that cover the full spectrum of IT concerns. © 1997-2016 Info-Tech Research Group Inc. V4 Establish an Effective IT Steering Committee Have the right people making the right decisions to drive IT success. Info-Tech's products and services combine actionable insight and relevant advice with ready-to-use tools and templates that cover the full spectrum of IT concerns.© 1997 - 2016 Info-Tech Research Group

2. Info-Tech Research Group2 2 This Research is Designed For:This Research Will Help You: This Research Will Assist:This Research Will Help You: This Research Is Designed For:This Research Will Help You: This Research Will Also Assist:This Research Will Help Them: Our understanding of the problem CIOs IT Leaders Structure an IT steering committee with the appropriate membership and responsibilities Define appropriate cadence around business involvement in IT decision making Define your IT steering committee processes, metrics, and timelines Obtain buy-in for IT steering committee participations Define the project prioritization criteria Business Partners Understand the importance of IT governance and their role Identify and build the investment prioritization criteria

3. Info-Tech Research Group3 3 Resolution Situation Complication Info-Tech Insight Executive Summary An effective IT steering committee (ITSC) is one of the top predictors of value generated by IT, yet only 11% of CIOs believe their committees are effective. An effective steering committee ensures that the right people are involved in critical decision making to drive organizational value. Unfortunately, when CIOs do implement IT steering committees they often lack the appropriate structure and processes to be effective. Due to the high profile of the IT steering committee membership, CIOs need to get this right – or their reputation is at risk. Leverage Info-Tech’s process and deliverables to see dramatic improvements in your business satisfaction through an effective IT steering committee. This blueprint will provide three core customizable deliverables that you can use to launch or optimize your IT steering committee. These include: 1. IT Steering Committee Charter: Customizable charter complete with example purpose, goals, responsibilities, procedures, RACI, and processes. Use this template in combination with this blueprint to get a highly tailored committee. 2. IT Stakeholder Presentation: Use our customizable presentation guide to build understanding around the goals and purpose of the IT steering committee and generate support from your leadership team. 3. IT Steering Committee Project Prioritization Tool: Engage your IT steering committee participants in defining the project prioritization criteria. Use our template to track project prioritization and assess your portfolio. 1.88% of IT steering committees fail. The organizations that succeed have clearly defined responsibilities that are based on business needs. 2.Without a documented process your committee can’t execute on its responsibilities. Clearly define the flow of information to make your committee actionable. 3.Limit your headaches by holding your IT steering committee accountable for defining project prioritization criteria.

4. Info-Tech Research Group4 4 IT steering committees drive IT and business strategy alignment by having business partners jointly accountable for the prioritization and selection of projects and investments within the context of IT capacity. The ITSC facilitates the involvement and commitment of executive management through clearly defined roles and accountabilities for IT decisions in five critical areas: investments, projects, risk, services, and data. The ITSC is responsible for the ongoing evaluation of IT value and performance of IT services. The committee should define these standards and approve remediation plans when there is non-achievement. IT Steering Committee Effective IT governance critical in driving business satisfaction with IT. Yet 88% of CIOs believe that their governance structure and processes are not effective. 1 The IT steering committee (ITSC) is the heart of the governance body and brings together critical organizational stakeholders to enable effective decision making. IT STEERING COMITEES HAVE 3 PRIMARY OBJECTIVES – TO IMPROVE: AlignmentAccountability Value Generation 1 1 2 2 3 3 Everyone needs good IT, but no one wants to talk about it. Most CFOs would rather spend time with their in- laws than in an IT steering-committee meeting. But companies with good governance consistently outperform companies with bad. Which group do you want to be in? – Martha Heller, President, Heller Search AssociatesHeller Search Associates 1 Info-Tech Research Group Webinar Survey

5. Info-Tech Research Group5 5 An effective IT steering committee improves IT and business alignment and increases support for IT across the organization CEOs’ PERCEPTION OF IT AND BUSINESS ALIGNMENT A well devised IT steering committee ensures that core business partners are involved in critical decision making and that decisions are based on business goals – not who shouts the loudest. Leading to faster decision-making time, and better quality decisions and outcomes. 47% 67% of CIOs/CEOs are misaligned on the target role for IT. of CEOs believe that business goals are going unsupported by IT. of CEOs believe that improvement is required around IT’s understanding of business goals. 64% of business leaders are supporters of their IT departments. 28% Source: Info-Tech CIO/CEO Alignment data

6. Info-Tech Research Group6 6 WHY DO IT STEERING COMMITTEES FAIL? IT steering committees are given inappropriate responsibilities The IT steering committee is fundamentally about decision making; it’s not a working committee. CIOs struggle with clarifying these responsibilities on two fronts: either the responsibilities are too vague and there is no clear way to execute on them within a meeting, or responsibilities are too tactical and require knowledge that participants do not have. Responsibilities should determine who is on the ITSC, not the other way around. IT steering committees are given inappropriate responsibilities The IT steering committee is fundamentally about decision making; it’s not a working committee. CIOs struggle with clarifying these responsibilities on two fronts: either the responsibilities are too vague and there is no clear way to execute on them within a meeting, or responsibilities are too tactical and require knowledge that participants do not have. Responsibilities should determine who is on the ITSC, not the other way around. 2 2 Despite the benefits, 9 out of 10 steering committees are unsuccessful A lack of appetite for an IT steering committee from business partners An effective ITSC requires participation from core members of the organization’s leadership team. The challenge is that most business partners don’t understand the benefits of an ITSC and the responsibilities aren’t tailored to participants’ needs or interests. It’s the CIOs responsibility to make this case to stakeholders and right-size the committee responsibilities and membership. A lack of appetite for an IT steering committee from business partners An effective ITSC requires participation from core members of the organization’s leadership team. The challenge is that most business partners don’t understand the benefits of an ITSC and the responsibilities aren’t tailored to participants’ needs or interests. It’s the CIOs responsibility to make this case to stakeholders and right-size the committee responsibilities and membership. 1 1 Lack of process around execution An ITSC is only valuable if members are able to successfully execute on the responsibilities. Without well defined processes it becomes nearly impossible for the ITSC to be actionable. As a result, participants lack the information they need to make critical decisions, agendas are unmet, and meetings are seen as a waste of time. Lack of process around execution An ITSC is only valuable if members are able to successfully execute on the responsibilities. Without well defined processes it becomes nearly impossible for the ITSC to be actionable. As a result, participants lack the information they need to make critical decisions, agendas are unmet, and meetings are seen as a waste of time. 3 3

7. Info-Tech Research Group7 7 GOVERNANCE and ITSC and IT Management Organizations often blur the line between governance and management, resulting in the business having say over the wrong things. Understand the differences and make sure both groups understand their role. The ITSC is the most senior body within the IT governance structure, involving key business executives and focusing on critical strategic decisions impacting the whole organization. Within a holistic governance structure, organizations may have additional committees that evaluate, direct, and monitor key decisions at a more tactical level and report into the ITSC. These committees require specialized knowledge and are implemented to meet specific organizational needs. Those operational committees may spark a tactical task force to act on specific needs. IT management is responsible for executing on, running, and monitoring strategic activities as determined by IT governance. This blueprint focuses exclusively on building the IT steering committee. For more information on IT governance see Info-Tech’s blueprint Tailor an IT Governance Plan to Fit Organizational Needs.Tailor an IT Governance Plan to Fit Organizational Needs RELATIONSHIP BETWEEN STRATEGIC, TACTICAL, AND OPERATIONAL GROUPS

8. Info-Tech Research Group8 8 IT GOVERNANCE AREAS Info-Tech’s approach to optimizing IT governance uses five governance areas to bucket IT decisions Governance of the IT Portfolio & Investments: ensures that funding and resources are systematically allocated to the priority projects that deliver value. Governance of Projects: ensures that IT projects deliver the expected value, and that the PM methodology is measured and effective. Governance of Risks: ensures the organization’s ability to assess and deliver IT projects and services with acceptable risk. Governance of Services: ensures that IT delivers the required services at the acceptable performance levels. Governance of Information and Data: ensures the appropriate classification and retention of data based on business need. 1 5 3 4 2

9. Info-Tech Research Group9 9 If these symptoms resonate with you, it might be time to invest in building an IT steering committee SIGNS YOU MAY NEED TO BUILD AN IT STEERING COMMITTEE As CIO I find that there is a lack of alignment between business and IT strategies. I’ve noticed that projects are thrown over the fence by stakeholders and IT is expected to comply. I’ve noticed that IT projects are not meeting target project metrics. I’ve struggled with a lack of accountability for decision making, especially by the business. I’ve noticed that the business does not understand the full cost of initiatives and projects. I don’t have the authority to say “no” when business requests come our way. We lack a standardized approach for prioritizing projects. IT has a bad reputation within the organization and I need a way to improve relationships. Business partners are unaware of how decisions are made around IT risks. Business partners don’t understand the full scope of IT responsibilities. There are no SLAs in place and no way to measure stakeholder satisfaction with IT.

10. Info-Tech Research Group10Info-Tech Research Group10 Info-Tech’s approach to implementing an IT steering committee HOW WE CAN HEL P Info-Tech’s IT steering committee development blueprint will provide you with the required tools, templates, and deliverables to implement a right-sized committee that’s effective the first time. Measure your business partner level of awareness and interest in the five IT governance areas, and target specific responsibilities for your steering committee based on need. Customize Info-Tech’s IT Steering Committee Charter Template to define and document the steering committee purpose, responsibilities, participation, and cadence. Build critical steering committee processes to enable information to flow into and out of the committee to ensure that the committee is able to execute on responsibilities. Customize Info-Tech’s IT Steering Committee Stakeholder Presentation template to make your first meeting a breeze, providing stakeholders with the information they need, with less than two hours of preparation time. Leverage our workshop guide and prioritization tools to facilitate a meeting with IT steering committee members to define the prioritization criteria for projects and investments and roll out a streamlined process.

11. Info-Tech Research Group11Info-Tech Research Group11 IT Steering Committee Stakeholder Survey IT Steering Committee Charter Purpose Responsibilities RACI Procedures IT Steering Committee SIPOC (Suppliers, Inputs, Process, Outputs, Customers) Defined process frequency Defined governance metrics IT Steering Committee Stakeholder Presentation template Introduction Survey outcomes ITSC goals Responsibilities Next steps IT project prioritization facilitation guide IT Steering Committee Project Prioritization Tool Project Intake Form Info-Tech’s Four- Phase Process 1 1 2 2 3 3 4 4 Define ITSC Processes Build the Stakeholder Presentation Define the Prioritization Criteria Build the Steering Committee Charter KEY DELIVERABLES:

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