Effective information technology governance arrangements

Abstract

For many organisations Information Technology (IT) enabled business initiatives and IT infrastructure constitute major investments. If these investments are not managed properly or the technological initiatives are not integrated correctly within the business, the organisation’s competitive position is impaired. Currently, both management and IT professionals are concerned with design, implementation, and assessment of IT governance strategies to ensure that technology truly serves the needs of the business. These strategies aim to align IT applications with the objectives of the business. The question addressed by this research is: How does a complex organisation devise, implement, and assess its IT governance arrangements? Devising IT governance arrangements is challenging because the success of IT strategies and procedures is contingent upon a variety of internal and external factors, such as workgroup interdependency and competitive strategy. Implementing an IT governance framework can be a complex endeavour because organisations must integrate the unique expertise of diverse stakeholders and service providers. This research explores the factors influencing the IT governance structures, processes, and outcome metrics. Using data from an in-depth case study conducted in a complex energy organisation, this research provides empirical evidence that increases our understanding of IT governance arrangements. Interview responses indicated that effective IT governance performance outcomes are characterised by a shared understanding of business and IT objectives; active involvement of IT steering committees; a balance of business and IT representatives in IT decision making; and comprehensive and wellcommunicated IT strategies and policies. IT governance plays a key role in fostering project success and delivering value. Effective IT project governance outcomes are characterised by the existence of executive leaders as project champions of IT, the use of appropriate measurement techniques during a priori and interim evaluations of IT projects, and extensive post implementation evaluation.