CIOs need both leadership and execution to master IT governance, said research firm Gartner at its PPM & IT Governance Summit 2011, London.
Gartner vice-president Tina Nunno told the conference that good governance is about control while great governance is about guidance and competitive advantage.
Nunno said, "One of the most important functions of governance is to provide controls that prevent chaotic or reckless behaviour on the part of the organisation and its people. Organisations with good IT governance enjoy benefits such as increased business value of IT-related assets. Strongly governed organisations receive 20 percent higher return on assets."
However, controls alone do not guarantee competitive advantage, said Nunno, adding that leading CIOs incorporate innovation and competitive advantage into their governance systems.
"CIOs with great governance create competitive advantage by embracing emerging technologies, innovation and, most important, the concept of calculated risk," said Nunno.
Nunno added, "As governance becomes more mature, it becomes less bureaucratic."
According to Nunno, participants should occupy optimal roles for the success of IT governance.
"Governance is a team sport. Just as an athletic team cannot function unless players master their positions, governance falters when individuals do not fit their roles," said Nunno.
CiOs also need to inventory their communication tools when they notice lack of compliance with governance decisions or excessive revisiting of established decisions.
"The highest levels of governance maturity produce the most value," said Nunno.
"While most organisations limit governance to gaining control and eliminating bad risks, the highest-performing organisations also use it to take good risks and gain competitive advantage."
