How to make technology decisions for better business outcomes |
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Technology organizations must take care when selecting a governance model for the decision domain, as each comes with trade-offs. Models lower on the control dimension require management executives to trust their people and delegate decision-making to accelerate effective decisions. Technology leaders working with these models become coaches to their empowered teams. By relinquishing direct control, organizations will realize that they have increased business alignment and improved the quality of decisions being made. Models lower on the agility dimension have a more concentrated structure wherein a core group of leaders exert a large amount of control and decision-making power. Decisions are propagated throughout the organization; though this model offers greater operational cohesiveness, it is considerably less fast-paced and adaptive. Enablers are supporting processes, tools, templates and emerging practices that help accelerate adoption of a governance model.Each decision domain has a set of key processes that must be adopted and adapted to the organizational context. Below are a sample set of processes by decision domain: Strategic alignment — portfolio management Funding and investment — demand management Value management — balanced scorecards, benefits realization Risk, compliance and change — risk assessment, risk monitoring Resource management — workforce planning, cost allocation Operations and delivery — architecture reviews, service performance managementAn effective governance model aims at changing years of organizational memory in making technological decisions and instilling new behaviors in line with the updated decision-making structure. In order to successfully implement governance, the governance approach should be adapted to the organization’s unique situation and strategic focus. Performance measures are critical to track progress and proactively course-correct the path to business value.A successful governance model must be self-governing in order to adapt to changes in internal factors such as corporate strategy, business unit priorities and external factors such as political, economic, social, technological, legal and environmental situations. A governance model that is performance-oriented can aid in the design of activity-based leading measures and outcome-based lagging measures to optimize the path to value. While each organization needs to design a set of measures based on the improvements targeted, leveraging collective wisdom in starting with a set of leading-practice measures will go a long way. Key learnings from EY collective experience in designing effective technology governance models across industries and organizations highlight a few common points of failure that a successful organization would need to avoid: Fail to enable governance — governance structures must be supported by defined functions and processes to facilitate and track the performance of decisions made Overdesigning the model — complex structures and levels of governance slow down the decision-making process and can lead to immediate rejection of TGM design Forgetting performance management — continuous improvement is critical to TGM success and requires formal performance tracking processes and feedback loops to be implemented Failure to increase velocity — identify and refine slow or broken decision processes early in TGM design to capture quick wins and stakeholder buy-in Missing key perspectives — solicit input from outside IT to influence and inform non-technology decision-making, including legal, procurement, risk management, HR and others One-and-done design — understand that TGM is refined iteratively through socializing and testing the model with stakeholders across the organization Failure to drive change — identify key pain points/barriers that prevent implementation of a governance structure and proactively enable change management Better questions: what do we need to ask?Key questions each organization should consider when designing an effective Technology Governance Model 1. Purpose and designGovernance facilitates decisions and should not be bureaucratic Key questions: Why do we need governance, and what is the desired outcome? Are we striking the right balance across control, flexibility and speed? 2. Domains and scopeMajor areas of decision-making should get coverage Key questions: How can we account for non-IT perspectives in our decision-making? Which decisions require a higher authority or escalation path? 3. Structure and authorityGoverning bodies should be lean and enable quick decision-making Key questions: Are governing bodies necessary to make decisions? Do we have the right representation (inclusions and exclusions) for making critical decisions? 4. Tools and enablementSpeed up decision-making by maturing and automating processes Key questions: Which decisions require significant time or interaction from multiple parties? What tools can we implement to drive better and faster decision-making? 5. Performance measuresGoverning bodies are accountable for their decisions and should adapt Key questions: How can the effectiveness and success of the governance decisions be evaluated? How often should performance be reviewed? |
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