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The Powers That Should Be

23.09.2002
Von Christopher Koch

Governance (not governance)

Understanding governance is easiest if first you understand what itisn't: It isn't management. Management is the decisions you make;governance is the structure for making them. Without good governance,you won't get good decisions consistently, no matter how wise orshrewd you are. The executive IT committee is the most powerful toolcompanies have to steer IT decision making at all levels, but it can'tbe the only mechanism you have.

The two main components of governance are 1. the decision-makingmechanisms you create, whether committees and review boards or writtenpolicies, and 2. the assignment of decision-making authority andaccountability. IT governance drives decisions in three main areas: ITstrategy, and investment in IT projects and IT architecture.

The big challenge in IT governance, as 3M's Drew discovered, is thatbusinesspeople view all IT as local unless the governance structureforces them to think otherwise. CIOs have to build governance systemsthat fulfill the strategic business goals of every part of the companywhile somehow imposing standards for the safest, lowest- cost use oftechnology across the entire enterprise.

A tall order for sure.

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