We're all in IT together: aligning technology with business through IT governance.

• Author: Kavanagh, Shayne C.

Information and people are the key resources that public organizations employ in their operations. As technology has evolved over the past 20 years, so too has the public organization. Today, the modern government relies heavily upon information technology such as computers, data servers, management software, Web sites, and e-mail to accomplish the business of government.

While it is often believed that these technologies improve the efficiency of government and lower the cost, many public organizations find that they struggle to realize the full range of benefits promised by advanced information technology. In many instances the failure lies not with the technologies themselves, but rather with the implementation of these technologies. The successful implementation of an IT solution depends not only on the technical installation, but also on the successful integration of that technology with business processes and the behaviors of employees and citizens. Because of the complexity of these relationships, a dedicated approach and frame work for decision making as to how technologies will be used, what technologies will be invested in, and who is responsible for realizing value from those investments is required. The approach that is in wide use among leading private and public sector organizations is called "IT governance." By adopting IT governance concepts, the best use of technology can be made and governments transformed into 21st century institutions.

WHAT IS IT GOVERNANCE?

A governance structure is a system of management tools and structures that helps to "steer" and define how an organization operates through rules of engagement, rather than to administer or manage particular functions directly. A governance structure allows those who have a stake in the organization an opportunity to influence its operations, without micro-managing them. Hence, an IT governance system gives the stakeholders ("customers") of the organization's IT operations (such as operating departments) the opportunity to be involved in the technology decisions that impact them. It also puts the IT organization in closer contact with its customers and connects the customers with each other, promoting synergies in technology use across departments. In short, the concept of IT governance is consistent with the idea that government business needs should drive technology decisions, not the other way around.

IT governance can address a host of issues and comprises a number of specific tools and techniques. Here are a few examples of some of the most common uses of IT governance and the tangible tools and structures associated with those uses.

* Identifying Technology Needs. A process to identify technology needs, including the benefits, costs, and risks associated with each potential use, helps to prioritize technology purchases. A business case is a formal method that helps departments consider their needs and document benefits, costs, and risks so that technology use can be evaluated. The GFOA has developed several resources on developing business cases. (1)

* Prioritizing Technology Investments. Funds for technology investments are limited and must be directed to the best uses. Business cases for technology projects help a cross-departmental committee evaluate and prioritize projects. The committee can then recommend a set of projects for funding.

* Assigning Accountability. Once an investment has been prioritized, there must be accountability for achieving the results and realizing the value promised by the business case for technology. For example, the King County, Washington, governance system establishes an executive committee to review the progress of projects against their original business case. If a project is not on-track, the executive committee can withhold funding. Accountability for results should rest primarily with the operating department that implements a new technology, as that department will be ultimately responsible for the business process and employee behavior changes from which benefits are realized. An IT governance structure provides the means for the operating department to be closely involved in its technology projects while still receiving the support it needs from central IT resources.

* Aligning IT Department Activities. In many cases, there is a divide between the activities of the IT department and other operating departments, where operating departments feel that their technology needs are not being met, while the IT department feels that it does not get adequate guidance from operating departments on their needs. By bringing technology and business professionals together in a joint decision-making structure, IT governance helps bridge...