10
Governance in Action
Effective IT Governance requires a mature, stable overall governance structure and strong, well-functioning
committee. The focus should be on achieving results from strategic choices and helping the IT investment leaders
and stakeholders navigate through the most challenging financial and implementation issues. Enhancing value
creation by getting the most out of the IT portfolio requires making difficult decisions about how to allocate finite
resources among all the potential opportunities and then sequencing the ones that are approved. The agency
needs to be accountable for the delivery of value from IT-enabled operational capabilities.
Decision Making
With respect to technology there are five major decision domains related to the high-level decisions connected to
the strategic role of IT in the business.
• IT Principles: Strategic use of IT requires the members of the IT Governance Committee to specify the
agency long-term operating model and any other directives clarifying the role of IT within the agency.
Governance allocates decision rights determined based on established IT principles -- usually to one
or more members of the senior management team. The principles give guidance, such as emphasis
on simplification, usability, integrated workflows, single sources of data, Cloud-first polices, etc.
• Elements of Architecture: Includes an integrated set of technical choices to guide the organization in
satisfying business needs. Refers to the design of the agency digital platform and specify the people
responsible for establishing business process, data, and technology standards, and for dealing with
requests for exceptions to those standards.
• IT Infrastructure: Trade-offs between directly building, operating, and maintaining IT infrastructure
versus leveraging common cost-effective Shared Services available to all parts of the enterprise. The
IT Chart is to designate responsibility for defining and assessing pricing of IT shared services.
• Business needs and Project Deliverables: New systems and processes emerge from an extended
agency effort that starts with a business case for a new system and ends, ideally, with a review of the
outcomes of that system implementation. The IT Charter is to assign ownership for defining the
business case, ensuring successful implementation, and delivering the benefits.
• IT Investment and Prioritization: Lastly, prioritization and investment decisions determining how
much and where to invest in IT. Although critical, IT investment and prioritization are just one of five
IT decisions that needs to be governed.
Each of these decision areas can be addressed at many levels: enterprise level, business unit or functional level, or
some combination of the three, and senior management can hold business unit or IT leadership accountable for
the related outcomes. Thus, the charter determines who should make and be held accountable for each decision
area.
• Decision Making Processes: Within the procedures of the IT Governance Committee, the decision-
making processes are established to secure effective involvement of the members chartered
specifically for this purpose. The following are common decision-making processes to be detailed
within the governance charter and adopted.
o Establishing an IT investment proposal process; this process delineates steps for defining,
presenting, reviewing, and prioritizing IT investments. (For example, starting with an IT
investment and budgetary business case documentation).