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Is Business Performance Improved by Better IT Governance?

It’s easy to say that better IT governance improves the business. Even from the most abstract level of thinking, any part of the business that saves money must save money for the whole business, right? But how do you prove that having strong IT governance helps the business? How can you put that into a quantifiable form to see? This is precisely what an IT Process Institute study set out to prove, and by all accounts it seems that they could back up the claim with hard data proof. From the article on Agile IT Governance: The study assessed the maturity of IT Governance initiatives, by collecting its survey data from 389 organizations from multiple industries in North America, the United Kingdom, and Australia. IT Governance maturity was determined by a combination of the use of governance practices and performance.  Enterprises at the lowest level of maturity have governance objectives focused on cost and risk reduction. High-maturity organizations have the highest focus on customer- and business-related objectives. What the study boiled down to is this: IT organizations that had a more robust IT governance operation in place were able to focus more on customer and business needs, contributing directly to the success of the overall business. This made the IT organizations a strategic asset for the business, which in itself proved the value of having better IT governance. The factors that contribute to better IT governance are focused IT strategies, senior business leader involvement, and more managers in leadership positions who understand governance agreements.

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