Three pillars for successful IT governance Effective IT governance depends on three critical

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Three pillars for successful IT governance Effective IT governance depends on three critical pillars which are leadership, organization and decision rights, flexible and scalable process and use of enabled technology. Leadership, organization and decision rights – we need to define the structure of organization, roles and responsibilities, the decision rights, vision and interface and touch points for the proactive change. • The roles and responsibilities should be well defined with respect to each of the IT governance components and processes. This includes the steering and review hierarchies for investment authorization, resolution of issues and periodic review sessions. • Clear hand off and interface agreements and contracts should…show more content…
Benefits of Effective and sustainable IT governance Executives • Business improvement due to participation in IT decision-making from an enterprise perspective • Can ensure key IT investments support the business and provide optimum returns to business • Can ensure compliance with respect to laws and regulations Middle-level managers • Ability to convince senior business managers that their combined business-IT resources are managed effectively Senior IT managers • Obtain sponsorship and support and a clear focus on importance strategic and operational initiatives • Improves customer relationships and also delivers results in a more predictable and consistent manner with customer involvement Operational Managers • Helps to resolve issues, review progress and enable faster decisions Everyone • Facilitates communication about IT contributes to the business • Helps to improve co-ordination, co-operation, communications and synergy across the organization • Productivity and less stress Results of ineffective IT Governance The results of ineffective IT Governance can be devastating. This could would include the following • Damaged of reputation, losses in business, disruption and weak competitive position Examples:  Nike suffered a loss of $200 million by facing difficulties in installing a supply chain software system.  Hershey was not successful in its attempt to install SAP several years ago and it cost the company significant money and lots of embarrassment. 

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