The Importance of IT Governance Framework
The uniformity and thoroughness of IT procedures are provided by the IT governance framework, which is designed to improve IT project management techniques. IT governance gives management the tools for deciding on IT roles and creates an accountability structure that makes sure technology is used properly in business management. Processes through which important choices on IT investments are made are included into well-structured and effective information technology governance. The success of an IT project also depends on constant, efficient communication that spans all levels and branches of governance, as demonstrated by DiFalco, Keeler, and Warmack (2016). This article provides an overview of an information technology governance structure for the business and that meets the various needs of customers and other stakeholders as it also provides the management with a structure to efficiently manage a complex IT environment through an executive branch, and produce services that add value to the business.
IT Governance Framework
The company can institute four formal governing bodies within its IT Governance Framework separated across three governance categories of IT that differentiate their responsibilities as Planning, Vision, and Alignment of Technology Operations. The organization can utilize both the Responsibility Assignment Matrix as well as the criteria-based matrix to define decision rights and make the right decisions. Roles in the Responsibility Assignment Matrix framework, commonly known as RACI Matrix, derive from one distinct category of four factors that include: (R) Responsible, (A) Accountable, (C) Consulted, (I) or Informed (Bailey, Minto-Coy, & Thakur, 2017).
The criteria-based matrix is an objective and structured methodology, which is useful in balancing the needs of the company and its stakeholders as well as achieving consensus. One such approach or method used for companies that need to make hard decisions objectively is by the application of a prioritization matrix. This matrix works by attaching a rating score to each criterion and determine the project that achieves the highest score following the approach above. Every project will be rated and assigned a numerical value to assist in the decision-making process. The matrix allows the management to work with the most objective decision-making process, which is created by applying the costs, benefits, and risks associated with every single project. It is a useful tool that allows proper prioritization of projects based on the business and customer impact and not bias (DiFalco, Keeler, & Warmack, 2016).
The organization`s IT governance framework will be structured to efficiently oversee the firm`s administrative activities and observe its large IT structures. The framework will be responsible for ensuring effective monitoring and overall management of large-scale IT projects. It will also be structured to develop and monitor business geared IT projects, provide guidance on enhancing practices in IT project administration, offer a platform for the assessment of the firm`s IT projects, and assist in making IT-related investment decisions. The governance framework for IT will also clarify the relationship between the centralized IT organization and its consumers and customers, and that is also a companion to the organization`s comprehensive service agreements that are placed to represent the most active role of customers in IT governance and delivery systems strategies.
Ethical Considerations in the IT Governance Process
An efficient, ethical compliance IT governance system has unlimited opportunities for the business. Hence, the IT governance process is geared towards ensuring that ethical considerations are observed. First, the firm will ensure that the legal and ethical awareness of employees increases by educating them accordingly. The IT department will also address all questions and concerns of employees regarding their work and the working environment. Besides, the management will deal with all reports of violations as well as encourage transparency in the organization. It will increase the commitment of employees since a culture of ethical compliance develops value congruence that comes with a sense of organizational responsibility and community among employees. An ethical compliance environment is also useful for detecting and preventing conduct that can cause danger to the IT governance objectives, and in particular, the positioning of business strategies and IT goals.
IT Governance and Strategic Planning
Strategic planning is a process that involves defining strategy, direction, and formulating decisions regarding the allocation of resources to pursue the policy. IT governance influences strategic planning through prioritizing the implementation of IT-related initiatives that can reorganize the operations of the organization. IT governance also creates a roadmap that affects future IT initiatives that support the strategies of the business and ensure that the input of key stakeholders is represented to support the mission statement and vision of the company.
It also ensures that the management can facilitate agile, transparent, and effective decision making, which requires communication that is both consistent and timely. Proper IT governance allows stakeholders who are impacted by decisions to have a way of knowing what decisions need to be made at a given point in time as well as understand the means of providing effective feedback. Also, since IT services account for significant operational expenses, the formal processes of an IT governance framework ensure that the requirements of companies ultimately drive the planning decisions for the proper management of information technology resources. Formalizing of IT governance processes also ensures that business leaders and technology are in agreement on matters concerning the appropriate level of risk that powers daily operations (Juiz, Guerrero & Lera, 2014). All these factors will assist the organization in defining sound strategies, direction, and formulating decisions relating to the allocation of resources that help in pursuing the plans.
Conclusion
Establishing an IT governance framework is a significant effort required for IT program mobilization and effective operations and business management. It is evident that IT governance has a positive influence on an organization and affects the IT Investment performance. The IT Investment influence is direct, statistically significant, and quite high. Transparent negotiations and decision-making guide good governance that includes stakeholder involvement and input, and that is a factor leading to the success of an organization. The IT Governance Framework creates a platform for a foundation for productive change as well as effective management of the company`s vital functions. Inevitably, this roadmap will later be modified as the organization matures. It is, therefore, a living document and the processes outlined will be adjusted to meet the company`s needs on an ongoing basis.
References
Bailey, A., Minto-Coy, I., & Thakur, D. (2017). IT Governance in E-Government
Implementations in the Caribbean: Key Characteristics and Mechanisms. In Information Technology Governance in Public Organizations (pp. 201-227). Springer, Cham.
DiFalco, R. A., Keeler, K. L., & Warmack, R. L. (2016). U. S. Patent No. 9,256,841.
Washington, DC: U. S. Patent and Trademark Office.
Juiz, C., Guerrero, C., & Lera, I. (2014). Implementing good governance principles for the public sector in information technology governance frameworks. Open Journal of Accounting, 3(01), 9.
