Enterprise Governance is a framework that was created by the Enterprise Governance Working Group at BearingPoint, Inc and continued at Deloitte Consulting. Enterprise Governance is a well-define set of processes, procedures, and feedback mechanisms for more effectively governing large scale enterprises. Enterprise Governance leverages the power of crowd sourcing to solicit and elicit input from the enterprise at large. This presentation was given as a series of lecture at Virginia Commonwealth University School of Business.
2. Purpose of this session
To provide you an overview and an overarching construct for the topics
addressed in this module
To introduce to you a complex topic that is becoming more and more
important in the both the public and private sector
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Enterprise Governance Overview final.pptx
To challenge you to think about your company and your mentor’s
company in a more holistic way as it pertains to managing IT as the
integral part of the business.
5. Many Types of Governance – Corporate Governance
Corporate governance is the set of processes, customs, policies, laws, and institutions affecting the way a corporation (or company) is directed,
administered or controlled. ... en.wikipedia.org/wiki/Corporate_governance
Corporate governance comprises the long-term management and oversight of the company in accordance with the principles of responsibility
and transparency. The German Corporate Governance Code sets out basic principles for the management and oversight of publicly listed
companies. www.annualreport2008.bayer.com/en/glossary.aspx
the practices, principles and values that guide a company and its business every day, at all levels of the organization.
investor.colgatepalmolive.com/glossary.cfm
The framework of how directors and management perform their respective duties to add and create shareholder value.
www.dayarayan.info/english-Glossary%20.php
setting up of processes guaranteeing transparent information, an equal treatment of all shareholders and a balanced level of the power of
decision shared between the company's management and its shareholders. www.societegenerale.com/en/node/7/c
The system by which business corporations are directed and controlled. The corporate governance structure specifies the distribution of rights
and responsibilities among different participants in the organization, such as the Board, managers, shareholders and other stakeholders, and
spells out ... www.interpraxis.com/glossary.htm
The management of the business, the supervision of that management, the rendering of account thereon and the way in which stakeholders
can influence decisions.
www.kendrion.com/en/Investor-Relations/Glossary.aspx
Set of rules and relations referring to the company administration, ownership structure and management efficiency to reach the company
targets. investors.benettongroup.com/phoenix.zhtml
Code of [behavior] that defines guidelines for the transparent management and control of companies. It creates transparency, strengthens
confidence in the company management and in particular serves the protection of the shareholders. www.ir.airberlin.com/glossar.php
Process of directing and controlling agencies. www.finance.gov.au/Publications/annual-reports/annualreport99-00/gloss.htm
This refers to the way in which the Department is directed and controlled in order to achieve its strategic and operational goals. The control
environment makes the organization reliable in achieving its goals and objectives within an acceptable degree of risk. ...
education.qld.gov.au/strategic/eppr/legal/lgspr007/definitions.html
Refers to the way a company is run. In the wake of disasters such as Enron and WorldCom, the market is keen to see companies have the
right checks and balances in place to avoid wholesale fraud or abuse of office. www.thefti.com/glossary.html
An instrument which is required by professional financial analysts and investors when performing modern company analysis. It can also
redress current deficits in the traditional valuation processes particularly in respect of growth values. ...
www.patrizia.ag/en/investor_relations/service_contact/glossary.html
Describes how companies are run and managed. The relationship between the different company organs (AGM, board and CEO) is at the
heart of corporate governance.
www.ap3.se/sites/english/aboutus/Pages/Glossary.aspx
6. Many Types of Governance – IT Governance
Information Technology Governance, IT Governance is a subset discipline of Corporate Governance focused on information technology (IT)
systems and their performance and risk management. ...
en.wikipedia.org/wiki/Information_technology_governance
Consists of the leadership, organizational structures, and processes that ensure that the enterprise's information technology sustains and
supports the organization's strategies and objectives.
www.theiia.org/guidance/standards-and-guidance/ippf/standards/full-standards/
7. Starting to get to the heart of the matter
Enterprise Governance of IT:
Achieving Strategic Alignment and Valu
By: Van Grembergen, Wim; De Haes, Steven
Enterprise governance of IT is a relatively new concept that is gaining traction in both the academic
and practitioner worlds. Going well beyond the implementation of a superior IT infrastructure,
enterprise governance of IT is about defining and embedding processes and structures
throughout the organizations that enable both business and IT people to execute their
responsibilities, while maximizing the value created from their IT-enabled investments. At the forefront
of the field, the authors draw from years of research and advising corporate clients to present the first
comprehensive resource on the topic. Featuring numerous case examples from companies around
the world, the book integrates theoretical advances and empirical data with practical application,
including in-depth discussion of such frameworks as COBIT and VALIT, which are used to measure
and audit the value of IT investments and ensuring regulatory compliance. A variety of elements,
including executive summaries and sidebars, extensive references, and questions and activities (with
additional materials available on-line) ensure that the book will be an essential resource for
professionals, researchers, and students alike.
8. Enterprise Governance
is the integrated set of processes and
procedures used by an organization and its
stakeholders to control, direct, or strongly
influence the actions and conduct of the
aggregate organization through the use of
policy and / or directive in an agile and
collaborative manner
11. The Need for Enterprise Governance
Enterprise of Enterprises
Public Sector Example
Private Sector Example
President of United States
Director of
National
Intelligence
Department of
Defense
Intelligence Community Support to DoD
Department of the
Army
Department of the
Air Force
Department of the
Navy
NGA
NSA / CSS
NRO
…
United States
Marine Corp
INSCOM
AIA
ONI
Defense
Intelligence Agency
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Enterprise Governance Overview final.pptx
DoD Support to the Intelligence Community
16. The Parts of Enterprise Governance
From Reference Model to Implementation
17. - 17 -
Enterprise Governance Overview final.pptx
The Enterprise Governance Reference Model
18. The Enterprise Governance Process
is a series of actions or operations linking the
enterprise functional areas, in order to enable
an economic organization to control, direct, or
strongly influence the actions and conduct of
the underling organization through the use of
policy and / or directive.
19. The Governance Process
is the series of steps that
represents the primary
flow of information
between process
functions. (Smith, 2007)
Feedback Loop
is the series of steps that
supply understanding /
insight to a providerfunctional area based on
the consumer-functional
area’s usage of the given
information. (Smith, 2007)
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Feed-forward Loop
is the series of steps that
manage expectations
between functional areas.
(Smith, 2007, pp. 51-52)
Enterprise Governance Overview final.pptx
Process Loop
20. The Enterprise Governance Lifecycle
is the series stages (Plan, Mobilize, Execute,
Measure, and Improve) by which each the
Enterprise and the Enterprise Functional Areas
evolves and aligns.
21. The Governance Lifecycle
Plan
Mobilize
Vision, Mission, Goals,
Objectives, and/or Milestone
Find resources human capital,
technical, facilities, training
Schedule, Budget, Priorities
Prepare to execute
Define Key Performance
Indicators and Measures of
Effectiveness
Conduct operation
Measure
Execute to the plan
Improve
Collect Metrics based on the
execution of operations
Analyze collected metrics
Make recommendation for
improvement
Be critical
Validate the results
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Enterprise Governance Overview final.pptx
Execute
22. Policy Process
interoperation between the functional areas is
based on policy, directive, and supporting
artifacts; a well-define mechanism of definition,
implementation, enforcement, and reporting is
required in successful governance
23. The Policy Process
policies must be
implementable and
enforceable
policy is different than
value
Implement
Enforce
requires communication requires a continuous
of the new policy
monitoring, snapshot
enforcement is not
requires enforceable
sufficient
implementation
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Report
the mechanism by
which policy is
communicated to next
level in the enterprise
Enterprise Governance Overview final.pptx
Define
24. - 24 Enterprise Governance Overview final.pptx
Bringing it all together
37. References – Enterprise Governance
Gupta, P., (2007). Six Sigma Business Scorecard. New York: McGrawHill. Mauborgne, R., (2005). Blue Ocean Strategy. Boston: Harvard
Business School Press.
Kaplan, R., & Norton, D. (2004). Strategy Maps. Boston: Harvard
Business School Press.
Scott, J., Cullen, A., & An, M. (2010). IT Capability Map Help CIOs
Manage IT Like a Business Forrester Research, Inc
Smith, R. F. (2007). Business Process Management and the Balanced
Scorecard. Wiley-Interscience.
Tapscott, D., & Williams, A. D. (2008). Wikinomics: How mass
collaboration changes everything
Portfolio Hardcover.
What We ThinkIt isn't just “IT Governance” anymore. You have to have IT Governance as an integral part of Corporate Governance. Corporate officers should be proactive in setting up a Corporate Governance model that assumes accountability for major IT decisions.Just as in other areas of Corporate Governance, corporate officers should set “policies” and define “control objectives” to provide direction and to understand and monitor the business value of their IT spend.It takes more than a change in technology to improve IT performance. We work with clients to adjust their approach to information management and move it to a higher level of maturity to achieve business, budget and productivity gains.We can advise a client on how to change its internal operational model to one that takes better advantage of technology, making it more flexible, responsive and more integrated with the overall enterprise objectives.Governance is just one component of an optimal IT strategy, but governance is the key to getting it right.
Karen Cole to talk about Enterprise Risk Management