Although the model for IT governance varies from airport to airport, an effective framework covers six areas:
2.3.1Effective Decision-Making and a Strong Focus on Process
Devising clearly defined processes represents the most challenging component of IT governance. CIOs and IT managers need to start by defining the goals for each aspect of IT governance. Potential IT governance objectives include: reaching an effective decision on whether a project should be approved; identifying the project’s priority in the context of IT and business objectives; and determining how funding will be structured for a new investment. The processes that support those objectives must address the many IT operational areas that investment decisions affect: security policy, business continuity policy, IT architecture, development standards, supplier policies, centralization vs. decentralization of IT management and resources, and ownership and usage policy and processes.
2.3.2IT Project and Systems Portfolios That Align With Business Priorities
The importance of aligning IT projects with business objectives has been well documented. Still, an over-emphasis on project management should not obscure the fact that the majority of work performed by an IT department does not involve projects, but rather operations and maintenance. Although project portfolio management can and should serve as an important process in an IT governance context, CIOs should understand that portfolio management processes also apply to the IT systems and the non-project work that the rest of the business depends on. In doing so, they can make better decisions about the value of systems—and when to replace them.
Key considerations include:
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The alignment and integration of business and IT planning
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The total amount of resources (financial and non-financial) to be devoted to IT
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The allocation of IT spending and resources between business units
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The criteria for assessing the value of proposed investments in IT-related projects
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The relative priorities to be established for investment alternatives
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Accountability for realizing the benefits of investment projects
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New IT investment funding and usage and chargeback policies
2.3.3An Efficient, Cost-Effective IT Department
The size of the IT line item in most airport budgets demands that IT departments operate in a transparent and measurable manner. CIOs must be prepared to demonstrate their departments’ efficiency through up-to-date documentation and metrics. IT governance programs can also improve relations between IT and the business. Once the IT governance is in place, the CIO can talk the language of the executives and the CFO. This allows the CIO’s planning efforts to be aligned with those which are practiced by other business leaders in the company.
Effective IT governance includes the assignment of decision-making responsibility. Who is responsible for different IT governance decisions? If IT employees make decisions that support higher-level business objectives, their performances should be evaluated based on the quality of those decisions . IT managers need to clarify when an individual is required to make a decision and when collaboration is necessary. They must also understand what information is required for corporate decision making and how it is communicated.
2.3.5Satisfied Customers
The most client-focused activity that IT managers and employees perform involves the managing and fulfilling of requests from their system users. That work is unpredictable and difficult to manage and guide without clear processes and documentation. Yet those difficult-to-measure, qualitative activities must be managed and measured if CIOs are to understand fully the cost of systems, projects, and the overall effectiveness of operations.
2.3.6Complete Audit Capabilities Supporting Each of These Points
Processes play an important role in effective IT governance, but to bear fruit those processes must be documented and continually monitored.. Proper governance requires accountability as well as measurement. In addition, processes and procedures must be both detailed and documented to show that IT has a consistent approach to solving the issues across the company. Finally, essential governance ensures that an enterprise derives maximum value from its IT investments. IT executives should weave personal as well as departmental accountability into any IT governance framework. CIOs must have at their disposal accurate and timely information in order to present themselves well in the boardroom. Just as CFOs are called upon to drill down into the origins of consolidated financial information, so will more CIOs be asked to present high-level measures of IT governance. Boards will ask CIOs to explain how and why they derived specific numbers and how they can more effectively drive top-level objectives. Additionally, CIOs need to justify new investments by presenting detailed information that sheds light on the value of past investments in similar projects and systems.
CIOs must avoid the following pitfalls that commonly weaken IT governance efforts:
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Inadequate participation by business management
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A lack of clearly defined governance processes
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A lack of clearly articulated goals
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The failure to monitor ongoing performance
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Insufficient links to individual performance—Individual IT employees should be evaluated, in part, based on the degree to which their performance supports and furthers IT governance principles.
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Cultural breakdowns—the most common obstacles to effective IT governance. These obstacles include organizational friction, poor communication, weak enforcement, and cumbersome processes. Organizational culture wields a powerful influence on the success or failure of governance mechanisms. Specific governance goals and decision-making criteria must be clearly articulated to individual IT employees.
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