1. Allocating Decision Rights
Acuan: Weill, P. and Ross, J.W. 2004

2. IT Governance Archetypes
Style
Who has decision or input rights
Business monarchy
A group of business executives or individual executives.
Includes committees of senior business executives.
IT monarchy
Individuals or groups of IT executives
Feudal
Business unit leaders
Federal
C-level executives and business groups
IT duopoly
IT executives and one other group (business unit or process leader)
Anarchy
Each individual user

3. Business Monarchy Group of executives make decisions
Input comes from different sources:
CIO’s direct reports
IT leaders from business units
Enterprisewide IT budget management process
Service-level agreement and chargeback
Activity-tracking system showing all IT resources and how they are deployed

4. IT Monarchy IT profesionals make IT decisions Example:
UPS: IT Governance committee, consist of senior IT managers
State Street: Office of IT Architecture
Dupont: enterprise IT architecture group

5. Feudal Each business unit, region or function make IT decisions
Does not facilitate enterprisewide decision making
Not common because there is no synergy between business units

6. Federal
Coordinated decision making involving both center and business units
Unit representatives: unit leaders/business process owners, business unit,IT leaders as additional participants.
Most difficult archetypes for decision making
Biggest, most powerful business units get most attention and have most influence

7. IT Duopoly Two-party arrangement: IT executives and one other group
IT executives: central IT group or a team of central and business unit IT organization
Other group: CxOs, business unit leaders.

8. Forms of IT Duopoly Bicycle wheel
Describes duopoly involving central IT group and business units
IT group at the hub and business units are around the rim
Each business unit get individual attention but the same hub support the whole enterprise

9. Forms of IT Duopoly (cont.)
T-shape
Describes duopoly involving central IT group and senior management team
Implemented by two overlapping committees
The executive committee (horizontal part) comprises business managers
IT committee (vertical part) comprises technical managers

10. Forms of IT Duopoly (cont.)
T-shape (cont.)
Used for three less-technical IT decision domains: IT principles, business application needs, and IT investment.
Frequently used to provide input for architecture and infrastructure domains.
Popular because involve only two decision-making parties.

11. Anarchy
Individuals and small groups make their own decisions based only on their local needs.

12. How Enterprise Governs IT
IT principles
IT architecture
IT infrastructure
Business application needs
IT investment
Input
Decision
input
decision
Business monarchy 27 6 7 1 12 30
IT monarchy 18 20 73 10 59 8 9
Feudal 3 2
Federal 83 14 46 4 81 93
Duopoly 15 36 34 23 17
Anarchy
No data

13. IT Principles Duopoly approach : T-shaped duopoly
Business and IT monarchy
Federal

14. IT Architecture
IT monarchy : senior managers view architecture more as technical than strategic issues
Duopoly : T-shaped

15. IT Infrastructure
IT monarchy
Duopoly

16. IT Business application needs
Federal
IT Duopoly
Feudal

17. IT Investment and Priorization
Monarchy
Federal
Duopoly : T-shaped

18. Factors of Variations Strategic and performance goals
Organizational structures
Governance experience
Size and diversity
Industry and regional differences

19. Case study: DuPont

20. Case study: DBS Bank

21. Case study: Motorola