As you enter 2019, you are probably among the many CIOs around the world considering strategic goals and thinking about how to carry out the growing number of strategic projects without a significant proportional increase in your IT budget. And all the statistics on the failures of the project are engraved in the back of your mind.

McKinsey & Company writes that about 17% of IT projects go so bad that they threaten the company's existence. According to Gartner, the failure rate for projects with a budget greater than $ 1 million is 50% higher than projects with a budget of less than $ 350,000. And then there's the state of Rhode Island, where a $ 110 million project cost almost three times as much. I'm sure you do not want to be the next statistical reference. So! Why are the failures of the project still happening?

Each year, we continue to read about the statistics of failed projects and their numbers will increase as strategic projects play a greater role in project portfolios. Well, MIT and Capgemini have led a study with more than 1,300 global executives to identify key barriers to the successful execution of strategic digital innovation projects.

Guess what was on the list? These leaders identified governance as one of the major obstacles to the success of digital transformation efforts that harness technology as a strategic asset. When C-Suite executives identify strategic initiatives that leverage technology to improve customer value, improve business processes, and rethink business models, these initiatives are compromised and can negatively impact the success of your business if your process governance is inefficient or immature.

Therefore, you need to transform your current, possibly reactive, IT governance model into a new and mature proactive model, which I call Strategic IT Governance 2.0, which will reduce business risk, ensure alignment total on the selection / execution of projects and allow the company to: to accomplish its strategy, goals and objectives.

So, the obvious question is How does an IT organization ensure project alignment, increase project throughput and reduce risk, while enabling the company to achieve its strategic objectives? ? The solution is to develop a proactive competence in strategic IT governance – at the enterprise level – that focuses on project alignment, process discipline, and excellence. leadership.

Over the past year, I've covered this topic at many IT leaders' events and met with IT executives to share their insights, challenges, and opportunities to take on the challenge of a increasing portfolio of complex projects without proportional increase in budget. What is more difficult is that these complex technology projects are subject to greater risks that could affect timing, costs and quality. Therefore, if you are an ISD facing the same problems, let me introduce you to a methodology, framework, and strategic IT maturity assessment for Strategic Governance 2.0, which focuses on project alignment, discipline processes and leadership excellence.

Strategic IT Governance 2.0 encompasses the business. This implies that the focus is on the business value as well as the efficiency of the processes throughout the project lifecycle. To succeed in strategic IT governance, the company must embrace six critical success factors and the underlying best practices. A maturity assessment will determine how well your organization adheres to these best practices. I will discuss the maturity assessment in a few moments, but for the moment I want to give you a brief overview of the six critical success factors and the underlying best practices.

[Note: In future months I will share success stories on how CIOs are leading the charge to integrate Strategic IT Governance 2.0 across the business enterprise.]

strategic governance in IT Phil Weinzimer

Commercial value

Business value encompasses leadership excellence and includes the three critical success factors and associated best practices that form the foundation for executive and operational level governance across the organization and the organization. the computer organization. I am a strong supporter of IT in the enterprise, but I use both terms until the stigma of separating IT and business is eliminated.

Executive Sponsorship

Leadership sponsorship is an absolute necessity for the success of any business initiative and must be adopted by the entire management hierarchy.

  • Strategic imperative is the key phrase required by the executive suite for this type of initiative to succeed
  • Sponsorship C-suite must be on the agenda of each C-suite leader and be adopted and communicated within its organizations.
  • Vice President / Director / Sponsored Manager At all levels of the organization, you need to "walk the talk" and actively and proactively participate in the implementation of a strategic IT governance competency across the organization. # 39; company.
  • Business / IT partnership

    The business / IT partnership is now recognized as a necessity by many companies. Gone are the days when IT remained a tactical organization subject to the whims of the company. Today, technology is at the heart of every company's products, services, and business processes. The IT organization proactively collaborates with business unit leaders as teammates to identify and develop new products and services. and integrate technology as an integral part of the business strategy.

  • A corporate governance / IT consulting must be established to oversee all major technology investment decisions. We all know that being at the heart of projects sometimes prevents us from seeing the forest among the trees and that a board of corporate governance / IT can add objectivity to the supervision of the project.
  • Collaboration between business partners and IT must occur continuously, as it helps to reduce the divide between these two organizations.
  • Finally, each project requires owned by the business / IT sponsor. We have all attended meetings where pointing out becomes the main defense against difficult projects. This must stop and the best way to do this is to ensure that the business owner and the IT owner are jointly responsible for the results of the project.
  • Strategic Alignment

    In simple terms, strategic alignment consists of best practices ensuring that the selection / execution of projects aligns with the strategic objectives of the company. We are all aware of black hole projects this does not correspond to the company's strategy, but takes time, resources and money, which limits the flow of projects and creates a backlog of projects which, if they were performed, would provide measurable commercial value.

  • A communication program at the company level ensures that everyone understands the commercial value of strategic project alignment.
  • An integrated business technology / IT plan who supports the business strategy and the objectives of the company facilitates the process of collaboration between the technical and commercial staff of the company.
  • A project selection / alignment process must adopt a disciplined approach using objective and metric methodology.
  • Metric of the results of the company to be defined during the project justification phase as they Define measurable business results (10% sales growth, 15% customer loyalty, 20% reduction in delivery times, 15% customer wait times, etc.)
  • The efficiency of the process

    Process efficiency is a combination of people working on the right project activities and executing them with the excellence of the project processes. This must be the new standard in the business. It's about doing the right things and doing them right. In simple terms, it's a combination of efficiency (doing well) and efficiency (doing well).

    Collaboration

    Collaboration is a word often used but not always practiced. Most importantly, collaboration must be proactive and non-reactive. What do I mean by that? Each project has key stakeholders, but often they do not have a voice when they provide information on the status of the project.

  • active Stakeholder participation is an ingredient necessary for the success of the project. This can only be achieved through the active participation of key stakeholders. Regularly scheduled surveys or evaluations can be generated by specific project issues, stakeholder roles and project milestones. The important factor here is to ensure that stakeholder comments are integrated into the project management process and taken into account. This proactive process will minimize the risks associated with the project, improve team building and adopt a concrete communication program.
  • login project risk indicators is a must as part of your project management discipline. These risk indicators may be a combination of subjective and objective measures captured during the stakeholder engagement best practice discussed above and represented on a project dashboard for real-time risk status.
  • Criteria for project success is another collaborative best practice that measures the effectiveness of the project delivery process. These generally relate to, but are not limited to, the effectiveness of the project implementation process, such as SLAs, problem solving, timing of the mitigation process, etc.
  • Process optimization

    Process optimization is a critical success factor based on four best practices that involve project management and execution processes.

  • A review committee of project implementation is an essential ingredient for the success of the project. This is where business and IT staff with oversight / governance processes can effectively review key projects and provide objective coaching and mentoring to help project teams succeed.
  • A second key best practice is to develop a defined process, roles, responsibility matrix which clearly defines the project management processes, appropriate roles and responsibilities of the project staff. I want to take a moment to stress the importance of improving the skills of staff involved in planning and implementing projects. These individuals generally have excellent tactical project management skills, but lack the professional skills required in the current business environment, where IT teams collaborate regularly and are integrated into business / IT teams that identify and develop the products, services, and associated business processes that integrate the strategy. business objectives.
  • A third best practice is Real-time project tracking. I am sure that many of you will remember the time when the monthly project review meetings consisted of historical data. Well, those days are over and we need today a real time project tracking with dashboard reports, so that potential risks can be identified and mitigated quickly.
  • Metrics of best practices

    Best practice measures focus on proactive project management. We recognize that there are times when projects require a reactive approach and that we must take appropriate measures to mitigate the risks. Although we can not predict the future accurately, we can, however, attempt to predict results based on past experience using Data Analytics / AI.