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Some thoughts on_gov06102010

Peter Salmon
Peter Salmon

The document provides an overview of governance and its importance from a presentation given by Peter Salmon. It discusses how poor governance leads to high costs from IT failures, late and over budget projects. Governance enables cost reduction, focusing investment to create value, and rigorous project assessment. Effective governance requires leadership, implementing frameworks like ISO 38500 and COBIT, and defining roles and responsibilities. Governance provides substantial value when senior commitment embeds it in the organizational culture.

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Some Thoughts on Governance Peter M Salmon, CA Governance Lead ISACA Wellington Chapter Wednesday, 6 October 2010
Important Notice please make sure you read This notice applies to all materials and information available in this presentation. All information and materials are provided on an 'as is' basis and are not intended in any way to be comprehensive. Any reader making use of this material does so at his/her own risk and readers are advised to take independent professional advice before acting on any information or materials found here. Neither Peter Salmon, nor Manning Charles & Associates Limited , nor ISACA Wellington Chapter accepts any responsibility for, nor do they give any representations or warranties, express or implied, that any of the information and materials contained in this document and presentation are complete, accurate or free from errors or omissions. 息 October 2010 Peter M Salmon & 06/10/2010 ISACA Wellington Chapter 2
Why Governance? Cost of IT failure is huge US$ 6.2 trillion p.a by one estimate 30% to 70% of IT projects are late, over budget or dont meet plan Negative impact on services, productivity Informed decision making is essential, now more than ever Yet measurement of value is poor 息 October 2010 Peter M Salmon & ISACA 06/10/2010 Wellington Chapter 3
Value Measurement To what extent does your organisation measure the value of its investments in % IT? Dont know 5 Fully 32 Not at all 10 Partly 53 Total 100 Source: ISACA Nine Country Survey on IT Value July 2009 息 October 2010 Peter M Salmon & ISACA 06/10/2010 Wellington Chapter 4
So why do we have a problem Given what appears to be waste on a massive scale, why do we keep pouring money into projects in this way? What stops us from achieving improvement? Clearly there is a need for action. To my mind ISO 38500 is a good starting point, especially when allied with supporting frameworks such as CoBit and ValIT. Furthermore, there needs to be a much better understanding that IT of itself will not solve business problems, we need effective organisational change and process management as well. This must be coupled with a determination to identify, evaluate and monitor benefits on a continuing basis. 息 October 2010 Peter M Salmon & ISACA 06/10/2010 Wellington Chapter 5
Governance Enables Cost reduction, through informed decision making, thus avoiding the degradation of value resulting from broad- brush reductions, which are often the kneejerk reaction to a crisis Focusing investment so as to create and maintain value ; enabling mitigating action where risk to value emerges Rigorous assessment and delivery of new initiatives, in a manner based on optimal benefit/value achievement over the lifecycle, with appropriate risk mitigation when required See as well Thorp: Using governance to navigate through troubled times 息 October 2010 Peter M Salmon & ISACA 06/10/2010 Wellington Chapter 6
Need for Leadership Effective Governance requires leadership This leadership must , in my strongly held view, be combined with a sound ethical framework and robust values of integrity and straight dealing Without leadership and values the plethora of acronyms such as CoBIT, SarBox etc will be worthless 息 October 2010 Peter M Salmon & ISACA 06/10/2010 Wellington Chapter 7
Effective Governance Requires leadership, which means as well that leaders and others must be coached and educated to necessary levels of understanding Means implementing, ideally within a framework such as ISO 38500, supported by Val IT and CoBIT, appropriate policies, processes and organisations with unambiguous roles, responsibilities and accountabilities, and Needs to be supported by appropriate performance reporting such as KPIs, Programme and Project Reviews, Portfolio Management tools and the like Various studies suggest substantial value results (20% +) Requires strong senior executive commitment to make it happen and to embed robust, effective governance in the organisational culture See as well Thorp: Using governance to navigate through troubled times 息 October 2010 Peter M Salmon & ISACA 06/10/2010 Wellington Chapter 8
The Four Ares Enterprise Proactive management of Alignment of process with activities seeking to business objectives. maximize benefits Strategy Value Business Are we doing the right Are we getting the things? benefits? Organisation Delivery Operations Are we doing them Are we getting them the right way? done well? Organizational structure and Organizational capability, process, and the integration resources available and of programmes within supporting infrastructure needs Adapted from the Four Ares developed by John Thorp in The Information Paradox 息 October 2010 Peter M Salmon 06/10/2010 9 & ISACA Wellington Chapter
Conclusion Important to develop a clear view of outcomes required Clear focus on the overall perspective is invaluable Getting the engagement of all parties is critical Building a climate of trust aids resolution of governance situations, rather than a blame When setting up structures and processes, harness culture and people to them, not in competition or combat with them 息 October 2010 Peter M Salmon 06/10/2010 & ISACA Wellington Chapter 10
ISACA who are we? History ISACA was incorporated in 1969 by a small group of individuals who recognized a need for a centralized source of information and guidance in the growing field of auditing controls for computer systems. Today, ISACA has more than 95,000 members worldwide. What We Offer & Who We Serve ISACA provides practical guidance, benchmarks and other effective tools for all enterprises that use information systems. Through its comprehensive guidance and services, ISACA defines the roles of information systems governance, security, audit and assurance professionals worldwide. The COBIT, Val IT and Risk IT governance frameworks and the CISA, CISM and CGEIT certifications are ISACA brands respected and used by these professionals for the benefit of their enterprises. 息 October 2010 Peter M Salmon 06/10/2010 & ISACA Wellington Chapter 11
Some Resources Websites ISACA Taking Governance Forward IT Governance Institute Center for Information Systems Research Some Thoughts Peter Salmons website John Thorp Infonomics Bazpractice Michael Krigsman OGC Best Management Practice Cranfield Information Systems Research Centre Books IT Savvy - Ross & Weill Benefits Management John Ward & Elizabeth Daniel Waltzing with the Elephant Mark Toomey IT Governance Ross & Weill 息 October 2010 Peter M Salmon & ISACA 06/10/2010 Wellington Chapter 12
Peter Salmon Principal - Manning Charles & Associates Ltd Peter is a senior executive and consultant with an extensive business management, professional services leadership and delivery background. He combines this with significant organisational change, business assessment, and resource management experience. This is complemented by having worked in a number of countries and a varied range of business sectors. Peter's consulting experience includes IT consulting, general consulting, financial investigations and valuations, and litigation support. His other experience includes practice development, practice management including service economics and profitability, quality assurance and resource management. This knowledge and expertise is combined with a strong record of achievement. For many years Peter has worked with CxO level executives, management and staff to provide business focused outcomes to issues. Should you wish to contact Peter on this or any other matter, where he might be able to assist then :- Web:- Some Thoughts Peter Salmons website Phone:- +64 21 533651, or Email:- manning.charles.assoc@gmail.com Mail:- PO Box 25197, Panama St, Wellington 6146, NZ 息 October 2010 Peter M Salmon 06/10/2010 & ISACA Wellington Chapter 13

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Some thoughts on_gov06102010

  • 1. Some Thoughts on Governance Peter M Salmon, CA Governance Lead ISACA Wellington Chapter Wednesday, 6 October 2010
  • 2. Important Notice please make sure you read This notice applies to all materials and information available in this presentation. All information and materials are provided on an 'as is' basis and are not intended in any way to be comprehensive. Any reader making use of this material does so at his/her own risk and readers are advised to take independent professional advice before acting on any information or materials found here. Neither Peter Salmon, nor Manning Charles & Associates Limited , nor ISACA Wellington Chapter accepts any responsibility for, nor do they give any representations or warranties, express or implied, that any of the information and materials contained in this document and presentation are complete, accurate or free from errors or omissions. 息 October 2010 Peter M Salmon & 06/10/2010 ISACA Wellington Chapter 2
  • 3. Why Governance? Cost of IT failure is huge US$ 6.2 trillion p.a by one estimate 30% to 70% of IT projects are late, over budget or dont meet plan Negative impact on services, productivity Informed decision making is essential, now more than ever Yet measurement of value is poor 息 October 2010 Peter M Salmon & ISACA 06/10/2010 Wellington Chapter 3
  • 4. Value Measurement To what extent does your organisation measure the value of its investments in % IT? Dont know 5 Fully 32 Not at all 10 Partly 53 Total 100 Source: ISACA Nine Country Survey on IT Value July 2009 息 October 2010 Peter M Salmon & ISACA 06/10/2010 Wellington Chapter 4
  • 5. So why do we have a problem Given what appears to be waste on a massive scale, why do we keep pouring money into projects in this way? What stops us from achieving improvement? Clearly there is a need for action. To my mind ISO 38500 is a good starting point, especially when allied with supporting frameworks such as CoBit and ValIT. Furthermore, there needs to be a much better understanding that IT of itself will not solve business problems, we need effective organisational change and process management as well. This must be coupled with a determination to identify, evaluate and monitor benefits on a continuing basis. 息 October 2010 Peter M Salmon & ISACA 06/10/2010 Wellington Chapter 5
  • 6. Governance Enables Cost reduction, through informed decision making, thus avoiding the degradation of value resulting from broad- brush reductions, which are often the kneejerk reaction to a crisis Focusing investment so as to create and maintain value ; enabling mitigating action where risk to value emerges Rigorous assessment and delivery of new initiatives, in a manner based on optimal benefit/value achievement over the lifecycle, with appropriate risk mitigation when required See as well Thorp: Using governance to navigate through troubled times 息 October 2010 Peter M Salmon & ISACA 06/10/2010 Wellington Chapter 6
  • 7. Need for Leadership Effective Governance requires leadership This leadership must , in my strongly held view, be combined with a sound ethical framework and robust values of integrity and straight dealing Without leadership and values the plethora of acronyms such as CoBIT, SarBox etc will be worthless 息 October 2010 Peter M Salmon & ISACA 06/10/2010 Wellington Chapter 7
  • 8. Effective Governance Requires leadership, which means as well that leaders and others must be coached and educated to necessary levels of understanding Means implementing, ideally within a framework such as ISO 38500, supported by Val IT and CoBIT, appropriate policies, processes and organisations with unambiguous roles, responsibilities and accountabilities, and Needs to be supported by appropriate performance reporting such as KPIs, Programme and Project Reviews, Portfolio Management tools and the like Various studies suggest substantial value results (20% +) Requires strong senior executive commitment to make it happen and to embed robust, effective governance in the organisational culture See as well Thorp: Using governance to navigate through troubled times 息 October 2010 Peter M Salmon & ISACA 06/10/2010 Wellington Chapter 8
  • 9. The Four Ares Enterprise Proactive management of Alignment of process with activities seeking to business objectives. maximize benefits Strategy Value Business Are we doing the right Are we getting the things? benefits? Organisation Delivery Operations Are we doing them Are we getting them the right way? done well? Organizational structure and Organizational capability, process, and the integration resources available and of programmes within supporting infrastructure needs Adapted from the Four Ares developed by John Thorp in The Information Paradox 息 October 2010 Peter M Salmon 06/10/2010 9 & ISACA Wellington Chapter
  • 10. Conclusion Important to develop a clear view of outcomes required Clear focus on the overall perspective is invaluable Getting the engagement of all parties is critical Building a climate of trust aids resolution of governance situations, rather than a blame When setting up structures and processes, harness culture and people to them, not in competition or combat with them 息 October 2010 Peter M Salmon 06/10/2010 & ISACA Wellington Chapter 10
  • 11. ISACA who are we? History ISACA was incorporated in 1969 by a small group of individuals who recognized a need for a centralized source of information and guidance in the growing field of auditing controls for computer systems. Today, ISACA has more than 95,000 members worldwide. What We Offer & Who We Serve ISACA provides practical guidance, benchmarks and other effective tools for all enterprises that use information systems. Through its comprehensive guidance and services, ISACA defines the roles of information systems governance, security, audit and assurance professionals worldwide. The COBIT, Val IT and Risk IT governance frameworks and the CISA, CISM and CGEIT certifications are ISACA brands respected and used by these professionals for the benefit of their enterprises. 息 October 2010 Peter M Salmon 06/10/2010 & ISACA Wellington Chapter 11
  • 12. Some Resources Websites ISACA Taking Governance Forward IT Governance Institute Center for Information Systems Research Some Thoughts Peter Salmons website John Thorp Infonomics Bazpractice Michael Krigsman OGC Best Management Practice Cranfield Information Systems Research Centre Books IT Savvy - Ross & Weill Benefits Management John Ward & Elizabeth Daniel Waltzing with the Elephant Mark Toomey IT Governance Ross & Weill 息 October 2010 Peter M Salmon & ISACA 06/10/2010 Wellington Chapter 12
  • 13. Peter Salmon Principal - Manning Charles & Associates Ltd Peter is a senior executive and consultant with an extensive business management, professional services leadership and delivery background. He combines this with significant organisational change, business assessment, and resource management experience. This is complemented by having worked in a number of countries and a varied range of business sectors. Peter's consulting experience includes IT consulting, general consulting, financial investigations and valuations, and litigation support. His other experience includes practice development, practice management including service economics and profitability, quality assurance and resource management. This knowledge and expertise is combined with a strong record of achievement. For many years Peter has worked with CxO level executives, management and staff to provide business focused outcomes to issues. Should you wish to contact Peter on this or any other matter, where he might be able to assist then :- Web:- Some Thoughts Peter Salmons website Phone:- +64 21 533651, or Email:- manning.charles.assoc@gmail.com Mail:- PO Box 25197, Panama St, Wellington 6146, NZ 息 October 2010 Peter M Salmon 06/10/2010 & ISACA Wellington Chapter 13