labels: it news
IT Governance Institute issues guidance on how to align IT and business news
22 November 2005

New Delhi: Though IT has become a primary driver of business, more than 50 per cent of organisations do not have a formal structure to ensure that IT is aligned with business strategies, according to a recent survey by the IT Governance Institute (ITGI).

When IT and business work in harmony to achieve common goals, the organisation is more likely to realise maximum results. To provide guidance on achieving and maintaining IT and business alignment, ITGI released today IT Alignment: Who Is in Charge?, the fifth volume in the IT governance domain practices and competencies series.

Each of the publications in the series focuses on an aspect of one of the five domains of IT governance: risk management, value delivery, resource management, strategic alignment and performance measurement. The publications are based on a study of 200 IT professionals from 14 countries conducted by ITGI and Lighthouse Global.

IT Alignment: Who Is in Charge? covers strategic alignment and provides guidance on the responsibilities of the CIO, CEO and board. "IT alignment helps enterprises achieve and sustain long-term success through value delivery to stakeholders," says ITGI trustee Paul Williams, author of the publication and president of Paul Williams Consulting, UK.

"To succeed in aligning the business and IT, the CEO and board need to be involved and committed."

The publication provides 13 steps for maximising alignment, including:

  • Ensure that board members and senior managers are educated on the risks associated with IT and how business value arises from IT.
  • Ensure that IT is a regular item on the board agenda — not just annually as part of the budgeting process.
  • The CIO should be a full or ex officio member of the board, participating in all key business discussions and decisions. At minimum, the CIO must report directly to a board member.
  • Establish an IT-related committee with active representation from senior business leaders and board members.
  • Establish active IT investment portfolio management based on agreed-upon metrics and regular, reliable reporting.

 


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IT Governance Institute issues guidance on how to align IT and business