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A Practical Approach for IT Governance

Archive for March 2014

ABIT 2: Micro Analytics

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In the first blog on Analytics Based IT Governance (ABIT 1), we discussed that ITIL offers over 100 KPIs for assessing the value of IT delivered. They classify the KPIs into several areas:

  1. Service Portfolio Management
  2. Financial Management
  3. Service Level Management
  4. Capacity Management
  5. Availability Management
  6. IT Service Continuity Management
  7. IT Security Management
  8. Supplier Management
  9. Change Management
  10. Project Management (Transition Planning and Support)
  11. Release and Deployment Management
  12. Service Validation and Testing
  13. Service Asset and Configuration Management
  14. Incident Management
  15. Problem Management
  16. Service Evaluation
  17. Process Evaluation
  18. Definition of CSI Initiatives

The secret sauce is not to choose all 100 or so micro-analytics, but pick the ones that are most applicable to the Enterprise.   Examples of KPIs include the following:

  •  Number of Releases: Number of releases rolled out into the productive environment, grouped into major and minor releases.
  •  Adherence to Project Budget: Actual versus planned consumption of financial and personnel resources.
  •  Gaps in Disaster Preparation: Number of identified gaps in the preparation for disaster events (major threats without any defined counter measures).
  • Number of Planned New Services: Percentage of new services, which are developed, being triggered by Service Portfolio Management.
  • Duration of Service Interruptions: Average duration of service interruptions.

In ABIT 3, I will present a framework for selecting the best KPIs based on the maturity of the Enterprise and the maturity of IT.

 

 

 

 

Written by Subbu Murthy

March 28, 2014 at 3:37 am

IT Alignment to Business: Over-spoken but Under-achieved

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JoelEnterprises seek more from technology than just simple efficient operations, They expect technology to provide value, and perhaps, a competitive edge. Aligning technology to business requires transparent IT planning and budgeting processes to ensure that all stakeholders contribute to the IT strategy.  The walk-talk ratio for “aligning IT to business” is not good – usually over discussed and under-achieved.  The reason why aligning IT is so difficult has to do with the old-school IT culture that still prevails.  Transparency is not regarded as critical to achieving alignment. Managing resources and budgets judiciously and prioritizing technology investments to ensure that the triaging process is best for the Enterprise and the customers they serve. Past history and performance metrics facilitate judicious resource allocation and project control, but innovation helps the Enterprise move forward.  This process helps nurture the IT organization to seek and deliver technology effectively.

I had a chance to briefly chat with Joel Golub, Deputy Commissioner and CIO for the Fire Department of the City of New York. Joel was previously a CIO for 28 years at NY Transit, he was also CIO in my neighborhood, San Bernardino County.  He was talking about how he is leveraging technology and implementing systems that can  save lives.  Alignment of IT to business is natural for Joel.  He has been a fireman for 42 years!

Written by Subbu Murthy

March 28, 2014 at 2:36 am

CIO Summit on IT Governance

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Is the role of the CIO over as we know it? This was the topic of discussion at the First CIO Summit on IT Governance held at the Cerritos Sheraton on March 7th, 2014. With over 55 IT executives at the conference with three panels provided guidance on how the Mid Market, Fortune 500 and Service Providers leverage IT Governance to forge ahead.

John Dohm chaired the panel on IT Governance for Mid-Market companies with four leading CIOs on the panel: Jon Grunzweig, Vasu Kadambi, Keith Golden and Tak Fujji.  One of the key points John identified was that if the CIO is talking technology issues/decisions at the Executive level, there is something fundamentally wrong.

Becky Wanta chaired the panel on IT Governance at Fortune 500 companies with four IT Leaders on the panel: Jim Sutter, Joel Manfredo, Maria Fitzpatrick and Jim Thomas. Becky brought out the key point that CIOs must focus on innovation.

Dave Phillips chaired the panel on IT Governance with four cutting edge CEOs: Kevin Parikh, Ravi Chatwani, Jim Savitz and Jason Rosenfeld. Dave’s point was that CEOs of IT companies will bring a very unique perspective on IT Governance that will be beneficial to CIOs.

In summary, if CIOs are talking technology to the leadership team, they will not be able to retain their seat at the executive table.  In the past CIOs were brought in to be the bridge between technology and business. Now leadership looks to how CIOs can bring innovation and revenues to the Enterprise. The best way for a CIO to forge ahead is to ensure that IT Governance is nimble and simple, yet robust to provide sensible direction to run the business of IT that is aligned to the Enterprise.  A good Governance process will leverage tools to guide the stewardship of the IT department, leaving more time to focus on innovation.

Written by Subbu Murthy

March 24, 2014 at 4:28 pm

Posted in IT Governance