The Round Table Forum on IT Governance

by Ben Scheltus, Infonomics Business Development Manager

Infonomics and Oppeus hosted another very successful roundtable Forum on ICT Governance on the 15^th June, 2006 at the Westin Hotel in Melbourne (the first Round Table was reported in the June Edition).

The breakfast was well attended by Directors and senior executives, representing a broad spectrum of industry and government.

The Round Table is designed to provide a stimulating atmosphere where senior people can have a candid exchange of ideas.  We have no doubt that this objective was achieved.  To launch the discussion, we picked on a frequent journalistic observation that objectives and success criteria for projects need to be very clearly articulated.  The discussion traversed several related points for more than an hour, and would have continued far longer had we not maintained our commitment to finishing on time.  Attendees commented on the value and relevance of the session.  It was particularly valuable to have Directors, CEO’s and CIO’s in the room discussing the issues from different perspectives. 

Although we had a total of six issues, we found the conversation flowed so naturally that it was better to let it run!

The consistent themes that came from the discussion were:

• It may be inappropriate for Board members to rely too heavily on the opinion of one Director who is IT literate.  It behoves all Directors to ask the hard questions.  Infonomics recommends that Directors who are unsure of the questions they should ask start with our Executive Briefs and ask the 12 AS8015 Indicator questions.  If the answers do not give sufficient comfort, Infonomics can help with range of questions to ask in various situations.

• The people who carry out the traditional Audit function are generally not suited to carry out an effective audit of IT.  New, specialist expertise is required to meet this need.

• It is difficult for a Non Executive Director to effectively absorb information about more than one large IT project.  More effective Board reporting methods are needed to inform Directors efficiently.  Better methods of prioritising projects are needed.  Under no circumstances should “techno-speak” be used to justify a project.

• Large IT systems and infrastructure should be treated in the same manner as other depreciating assets.  Provision (in this case meaning prudent reservation and allocation of resources) must be made for regular and timely renewals that are not disruptive to business operations.

• New Non-Executive Directors who are experienced in IT and understand wider business issues can add value to Boards’ capabilities and executives with these skills are becoming increasingly available. 

• It is critical that there is a common, shared understanding of the business strategy that an IT project underpins.  A business executive should sponsor the project – whether the project is a new initiative or an upgrade.

• There are no “IT Projects”.  There are only Business Projects that use IT.

For our next Forum, Infonomics is going regional! Planning is under way for an Infonomics/Oppeus IT Governance Forum to be held in Geelong during September or October.  Please email bscheltus@infonomics.com.au if you wish to receive an invitation.