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5 Areas of focus for IT Governance

May 30, 2008

Fundamentally, IT governance is concerned about two things: IT ‘s delivery of value to the business and mitigation of IT risks. The first is driven by strategic alignment of IT with the business. The second is driven by embedding accountability into the enterprise. Both need to be measured adequately. This leads to five main focus areas for IT governance, all driven by stakeholder value:

  • Value delivery

  • Strategic alignment

  • Resource management

  • Risk management

  • Performance management

The relationship between the three drivers, strategic alignment, resource management, which overlays them all, and performance measurement and the two outcomes, value delivery and risk management, is visualised in the diagram below. This picture shows a continuous life cycle, which can be entered at any point. Usually one starts with the strategy and its alignment throughout the enterprise. Then implementation occurs, delivering the value the strategy promised and addressing the risks that need mitigation. At regular intervals (some recommend continuously) the strategy needs to be monitored and the results measured, reported and acted upon.

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