Proposal to Optimize Johnson & Johnson’s It Governance Model

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To: Johnson & Johnson Leadership Committee Date: April 29, 2015 From: LaVerne Council, CIO Re: Proposal to Optimize Johnson & Johnson’s IT Governance Model Context: Johnson & Johnson’s current IT governance structure consists of a highly decentralized system. The company may be experiencing duplicative efforts across business units and markets, which may be hindering overall growth and financial success. Operating companies focus primarily on cost-reduction strategies that are relevant to their respective markets when they should also be promoting business growth opportunities that can be fueled by IT. Proposal for Optimized IT Governance Model: Given the breadth of…show more content…
The ITOG will comprise one representative from each major business, one member from a geographic region, members of the Core Team, a lead financial analyst, and a newly created position – CInO, Chief Innovation Office. The purpose of the ITOG is to minimize duplicative efforts across geographies and operating companies as well as to serve as a platform for vetting through matters that include resource allocation, risk management, and change control. Each member of the ITOG will be responsible for overseeing IT projects in their respective markets or business units. Coordinating IT In Company’s Subsidiaries: ITOG will meet on a bi-weekly basis, or as needed should there be matters that require immediate attention. To ensure appropriate reporting, communication, and prioritization processes are in place, each individual will be required to review, acknowledge, and sign the committee’s charter. This will include an escalation process and a formal tracking system to include key performance indicators, return on investment metrics, and financial information including, but not limited to, cost reductions projections, net present value of technology investments, and any further data on revenue enhancements such as resource savings, new business development, and sales of consumer goods. Approval Levels for Subsidiary Projects: All projects that are between $100,000-$249,999 will be handled and approved by the ITOG representative of

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