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Enterprise Technology: Good IT Governance Vital to Success
Organizations that can execute well in their governance of IT assets are able to deliver 20 percent higher returns. That’s the conclusion of Tina Nunno, VP and distinguished analyst at Gartner. Good governance equates with higher value IT assets.
Nunno identifies two stages of IT governance:
- Organizations that have put into place and execute on governance controls [good].
- Organizations that can use governance to provide guidance, navigate risks and achieve competitive advantage [great].
Organizations on the first level typically have good governance, but top performing organizations are those that can achieve the second level. In the first level, organizations create a decision-making framework for governance to support their goals and priorities. In the second level, the organization builds processes which allow the organization to “execute and institutionalize the governance framework”.
When governance works well, organizations can not only identify bad risks which can help them avoid potential landmines, more importantly, governance allows organizations to identify “good risks” which which can lead to high returns.
Nunno said that “if an effective governance framework is implemented, it reduces conflict between stakeholders, finance can easily track organization spending against framework priority categories, business performance significantly improves and the organization reacts better to competitive threats”.
Nunno also emphasized that great governance in an organization is not something that can be implemented by one person or one group in the organization. She called it a “team sport” where key players exist in all parts of the organization and where all players excel in their roles.
