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The IT Governance Evangelist

Passionate advocacy for improving IT Governance processes

Getting IT a Seat at the Business Leadership Table

 

This blog entry was inspired by a comment posted by "Mike" to my recent post entitled "Who owns IT Governance, the Business or IT?" Mike asked about how you convince the IT department to "accept" its role as a business partner when IT Governance isn't adopted within the organization. He asked if there is a general rule or set of steps that companies can begin to use as a foundation for change that both sides can agree on.

 

More questions with far from simple answers. Let me start by saying IT is not in a position to "accept" its role as a business partner until it is "invited." According to CIO Magazine, barely half of the CIOs in North America sit at the Enterprise Leadership Team table. Instead, they are relegated to be the CFO's or the COO's problem. In fact, I spend much of my time advising IT leadership on how to get a seat at the table and convincing business leaders to give IT a seat.

 

The best and quickest way to do establish IT as a business partner is to set up governance for project and portfolio management (PPM). Yes, I recognize this runs the risk of reinforcing the pervasive misconception that IT Governance is synonymous with IT investment decision-making. Too often, organizations mistakenly equate ITG to PPM so they don't address all of the governance-related processes required to succeed. I'll take that risk because PPM is such a great place to start the IT Governance journey.

 

Here are a few of the advantages associated with starting with PPM:

  • 80% of the average IT budget is allocated to keeping the lights on, or "standing still" as I put it. PPM makes the most of that meager 20% left for moving forward. Done correctly, it addresses every penny IT spends and is the only way to move toward the more desirable 60/40 split. Some companies are shooting for 50/50.
  • PPM establishes the mechanisms required for the business to hold IT accountable for the money it spends. PPM and, as I have said countless times, all of IT Governance, are business functions that benefit the business! When business leaders recognize this, it won't be a matter of IT "accepting" their role, because frankly, they won't have a choice.
  • PPM is a fantastic means for IT to foster collaboration and trust with the business and ultimately improve their relationship. Providing financial transparency, stellar program and project delivery and proven value for every IT investment will turn that relationship into a love affair.

 

So I suggest starting with PPM--IT investments at the least, all Enterprise investments being the ideal. Yes, I would rather the business realize at the outset the potential of ITG to enable it to leverage technology for strategic advantage and save IT a spot at the leadership table.

 

I'm working on it.

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About Steve Romero

Steve Romero is the IT Governance Evangelist at CA, Inc. In this capacity, Romero acts as a strong advocate for the customer, speaking around the world to users, prospective customers, industry organizations and IT luminaries to identify and communicate IT governance best practices. His mission is to help IT organizations improve the effectiveness of their initiatives and their engagement with internal customers. Romero’s areas of focus include developing ITG processes, improving ITG maturity, optimizing IT portfolio decisions, aligning IT with the corporate strategy and maximizing IT’s return on investment. Romero is an innovative, passionate IT professional with over 30 years experience working in almost every area of IT. For the past 10 years his career has focused on helping large enterprises run their IT departments like a business. Steve is a recognized expert in IT Governance, IT program and project management and business process management. He is a Certified Project Management Professional, a Certified Information Systems Security Professional, ITIL Foundation Certified, a Certified Process Master, and a Certified Computer Professional. Romero’s extensive technical and IT leadership background started in the US Navy before joining Pacific Bell where he founded numerous ground-breaking governance processes. He then joined Pacific Technology Consulting to create, launch and lead their IT project management consulting practice. Romero worked at Charles Schwab and the California State Automobile Association as an IT Director where he resumed leading the establishment of formal process management and IT Governance processes. Romero is a member of the Information Systems Security Association (ISSA) and the Project Management Institute (PMI). He is a San Francisco Chapter committee member of the Information Systems Audit and Control Association (ISACA), and the President of the Information Technology Service Management Forum (itSMF) San Francisco Local Interest Group. He is a Board Member for the Center for Electronic Business at San Francisco State University and is a regular guest speaker in their Masters Program. Romero attended the University of LaVerne, graduation cum laude with a Bachelor of Science degree in Business Management.
 
 
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