What is IT Governance?

Hello,

'IT Governance' is a term we're hearing more about these days, yet if you ask any number of people what they understand from it, you might receive a fair number of explanations. Hence, what follows is a simple definition which will help in gaining a clearer understanding of this often, misunderstood term.

I've based this concise description on 'the' framework for IT Governance, namely COBIT [1]. COBIT (Control Objectives for Information and related Technology), currently in version 4.1, it is the principal IT Governance framework available today and, can be used to implement IT Governance effectively.

"IT Governance is the responsibility of executives and the board-of-directors and, consists of the leadership, organisational structures and processes which ensure that the enterprise's IT sustains and extends the organisation's strategies and objectives."

It should be noted that:

• The drivers for IT Governance vary from regulatory compliance requirements (e.g. SOX), to the need for Corporate Management to access reliable information for effective decision making.
  
• One of the core reasons for IT Governance is to have a business-focus in order to facilitate alignment between the business and IT objectives.
  

COBIT stipulates five (5) IT Governance Focus Areas, these are:

1. Strategic Alignment: ensuring that IT is in-line with the business direction
   
2. Value Delivery: ensuring IT is providing value to the business, gaining the expected returns and focusing on what will deliver maximum value to the business
   
3. Risk Management: ensuring that risks are identified and managed appropriately
   
4. Resource Management: diligent management of resources, COBIT includes here applications, information, infrastructure and people
   
5. Performance Measurement: COBIT uses a number of techniques to ensure that IT performance is measured not only from an IT perspective, but also from the business perspective

These are shown graphically below [2]:

Hence, IT Governance avails tools (such as COBIT, ITIL, Balanced Scorecards) and techniques (such as formal structures, reporting, audits) to ensure that:

• IT is aligned with the business
• IT is more responsive to business needs
• Resources are utilised effectively
• IT Risks are identified and managed in the correct manner
• There is an improved relationship between IT and related stakeholders

Regards,

Musab Qureshi

References:

[1] http://www.isaca.org/cobit

[2] Image source: http://www.itsmf.org.sg/newsletter/0705/newsletter.html

What is PRINCE2?

Hello,

PRINCE2 (Projects In Controlled Environments) provides a common, structured method for effective project management, it is the de facto UK government standard, is widely recognised and used within the UK and abroad. PRINCE2 embodies proven, good practice in project management and can be applied to any project of any scale, encompassing the organisation, management and control of projects.

Project failure rates according to a number of research reports are not very optimistic, e.g. seven out of ten UK government projects failing despite a £14 billion annual IT spend [1]. The reasons for failure vary, from inadequate planning, insufficient definition of the business case or required outcomes to lack of quality control causing delivery of products which are unacceptable or unusable.

Hence it is a vital to adopt a standard project management method to provide a common term of reference for all stakeholders to be aware of their mutual responsibility, accountability, authority, what's expected from them, why the project was started in the first place, what the end product will be, what work will be carried out to achieve that and the responsibility of each party in contributing to that product.

PRINCE2 defines a 'project' as a management environment that is created for the purpose of delivering one or more business products according to a specified Business Case. Hence a project has:

• a defined start and end date
• defined and measurable business products
• a corresponding set of activities to achieve those business products
• a defined amount of resources
• an organisation structure with defined responsibilities to manage the project
  

PRINCE2 is scalable, customisable, repeatable, teachable, built on experience, it helps clarify roles and responsibilities, it proactively provides early warnings of potential problems.

PRINCE2 defines 8 Components, 8 Processes and 3 Techniques as explained below.

Figure 1: PRINCE2 Components and Processes:


© Crown Copyright 2005

Hence the 8 Components defined by PRINCE2 are the:

1. Business Case
2. Organisation structure
3. Project Plans
4. Controls
5. Management of Risk
6. Quality in a Project Environment
7. Configuration Management, and
8. Change Control.

The 8 Processes are:

1. Starting up a Project (SU)
2. Initiating a Project (IP)
3. Directing a Project (DP)
4. Controlling a Stage (CS)
5. Managing Product Delivery (MP)
6. Managing Stage Boundaries (SB)
7. Planning (PL)
8. Closing a Project (CP)

Although PRINCE2 is not prescriptive by nature, guidance is provided in 3 areas, these are called Techniques:

1. Product Based Planning
2. Change Control
3. Quality Review

Some of the unique characteristics of PRINCE2 are:

- Pivotal nature of Business Case
The Business Case answers the why? or the viability of the project; it is created at the start and then updated and checked against at key points throughout the project. The Business Case embodies the rationale and the business justification for the project.

- Management by Exception
Resources are assigned work and given flexibility to complete the tasks. Disruption is decreased thru minimal meetings, the Project Board and stakeholders are kept informed via agreed regular, brief Reports.

- Adaptability
PRINCE2 can be tailored to any project, and complements or even enhances other project management frameworks such as the PMBOK (Project Management Body of Knowledge); specific examples where PRINCE2 helps bridge the gap with PMBOK include the below:

• The PMBOK contains no specific pre-project process equivalent to PRINCE2's 'Starting Up a Project (SU)' process, the SU process is extremely valuable in providing guidance in who or what should be in place before project start.
• The PMBOK offers Project Plans, however PRINCE2 recognising the challenge of accurate detailed planning at an early stage (especially for long or complex projects), divides plans into the Project, Stage and Team plans - this facilitates easier and more accurate planning.
• The PMBOK offers high-level advice on Product-based planning; PRINCE2 provides more detailed guidance on defining Product Descriptions, Product Breakdown Structures and Product Flow Diagrams - thus facilitating clearer communication of specialist products (those geared towards the customer and what they expect from the project) with stakeholders.

Conversely the PMBOK complements PRINCE2 in certain areas (as it is more detailed and prescriptive in nature).

In brief, PRINCE2 provides a methodical and proven approach to project management, this can be applied in selected areas or across the entire project. It can be used to complement existing processes & if followed correctly will help manage risks and ensure greater chances of project success.


[Note: The author, Musab Qureshi is a certified PRINCE2 Practitioner]

References:
[1] http://news.zdnet.co.uk/itmanagement/0,1000000308,39287110,00.htm

The IT Management Blog - Welcome!

Hello,

Welcome to the IT Management Blog!

Here you'll find a somewhat random collection of interesting posts from the intriguing world of IT Management.

My domains of expertise are IT Strategy and IT Service Management; do check back for beneficial information & links to assist with your IT Management efforts.

Your comments & feedback are always welcome, my email is: musabqureshi4@yahoo.co.uk

Musab Q.