5 Myths of IT Governance
IT governance plays a key role in helping organizations reach goals and objectives. It can be an essential component to advance business strategy. Unfortunately, IT leaders may have some mistaken beliefs that hinder the effectiveness of IT governance. In some cases, these misconceptions can even work against business objectives. In this case, organizations may become saddled with unnecessary risks, compliance issues, and missed opportunities.
To get IT and business governance working together, leaders will need to reject fallacies floating around the industry. Here are some of the myths that can hinder IT governance in any organization.
Outsourcing a Business Process Outsources its Risk
Cybersecurity remains a genuine, and very serious risk for all companies, regardless of industry. A recent survey found that nearly 80 percent of IT leaders felt their companies didn’t have enough protection against cyberattacks. While increasing the cybersecurity budget may help businesses think they are safe, the reality is that outsourcing increases the risk of harm. Many IT leaders fail to investigate the cyber hygiene habits of third-party vendors. Instead, leaders often assumed that these organizations are doing all they can to protect themselves and your data. Unfortunately, this can be a costly mistake that isn’t recognized until it is too late.
To mitigate the risk and protect your organization’s data, assess third-party vendors’ cybersecurity activities. It is essential to understand their processes and controls. Consider those actions against the risk of the data you are entrusting to them. But, for even better IT governance, monitor the vendor’s performance to see that the best measures are in place and working. These assessments should become standard operating procedures for your organization.
IT Governance Eliminates Cost Control Issues
One of the benefits of IT governance is the increase in visibility and control over costs. It gets better over time as governance controls develop, cost overruns will become less common. However, keeping costs down is not a one-time activity. There needs to be ongoing monitoring and effort made in IT cost optimization.
During the provisioning process, governance will be vital in keeping the costs down. To further reduce expenses, IT leaders should look for different ways to reduce costs. For example, those organizations that operate in the cloud should take advantage of the scalability and versatility. You can create a schedule for those resources that do not need to be available 24-7. Also, be aware of any discounts that providers are offering.
Software Can Resolve Problems Rooted Within the Organization
To get the most from workflow software, you need to have well-defined processes in place first. Software is only a tool to carry out the operation. It is not designed to be the method. Therefore, it is crucial for IT governance to clearly define vision, mission, and objectives. Once established, governance can then create operational processes that efficiently carry out these objectives and goals.
Only once these processes develop can you select the right software tools to assist in the process. Many times, organizations lack a well-defined process to achieve business goals. Having the right tools in place is vital but clearly defining business processes is the first step.
IT Governance Can be Achieved Through a Single Pane of Glass
While IT governance is an essential component of reducing risk and utilizing resources and strategies to meet business objectives, it often cannot be reduced to a simple business report. Unfortunately, most organizations require these reporting activities to determine the effectiveness of actions taken.
Many vendors claim their tool or solution is the key to conducting the evaluation desired by the organization. However, the reality is that the demand for comprehensive data often outpaces the ability to collect and analyze such data. Additionally, the fast pace of technology and change within the industry means that the information and data shift too rapidly for most IT departments to keep up.
Organizations that want to use these reporting tools to see the efficiency of IT governance when it comes to risk, security, compliance, controls, and cost would be better to invest in multiple reporting solutions. It will provide a more accurate view of the state of things rather than trying to determine the effectiveness of IT governance with a single tool.
Metrics Ensure Compliance
Numbers have no relevance unless there is context surrounding them. While organizations need to collect and compile metrics to measure a program’s success, this data on its own cannot verify compliance.
IT governance requires a complete understanding of people, processes, and technologies. Good leaders understand that a business goal determines IT spending. The IT solutions then give way to the next set of plans for the business.
A more reasonable approach to IT governance is to see how the metrics compare from quarter to quarter. Leaders should look for consistency in the data. If you are happy with what you are seeing, then there is no urgent need to change.
One last point on good IT governance is that it should constantly be changing and evolving. Look for better ways or solutions for your business processes that can improve efficiency and reduce costs. Business goals and needs change over time, so too should your IT governance.