1. Info-Tech Research Group1 1 Info-Tech Research Group, Inc. Is a global leader in providing IT research and advice. Info-Tech’s products and services combine actionable insight and relevant advice with ready-to-use tools and templates that cover the full spectrum of IT concerns. © 1997-2014 Info-Tech Research Group Inc. Tailor an IT Governance Plan to Fit Organizational Needs Drive business value and enable effective decision making by optimizing IT governance structure and processes. Info-Tech's products and services combine actionable insight and relevant advice with ready-to-use tools and templates that cover the full spectrum of IT concerns.© 1997 - 2014 Info-Tech Research Group

2. Info-Tech Research Group2 2 This Research is Designed For:This Research Will Help You: This Research Will Assist:This Research Will Help You: This Research is Designed For:This Research Will Help You: This Research Will Also Assist:This Research Will Help Them: Our Understanding of the Problem CIOs Achieve and maintain executive and business support for optimizing IT governance. Optimize your IT governance structure. Build governance committee charters and set accountability for decision making. Build high level governance processes. Plan the transition to the optimized governance structure and processes. Project Managers IT managers IT customers Improve performance on key metrics. Benefit from enhanced process and effective decision making. Receive a better overall quality of service.

3. Info-Tech Research Group3 3 Info-Tech Insight Resolution Situation ! Complication ? Executive Summary IT governance is the #1 predictor of value generated by IT, yet many organizations struggle to implement effectively. Effective IT governance encompasses the spectrum of IT decision making, and spans across IT. Effective governance supports increased transparency around IT decision making that provides business value. Achieving effective IT governance is difficult. Despite the importance of IT governance, many organizations struggle to define the optimal structure and processes. As a result, tackling IT governance optimization can be daunting for CIOs, especially because success necessitates involvement from key stakeholders across the organization. Use Info-Tech’s 5-step process for optimizing your IT governance structure and processes. Our client tested methodology and processes support the enablement of IT/business alignment, decrease decision making cycle times, and increase IT’s transparency and effectiveness around risk, service, projects, information life cycle, and PPM which represent all activities performed by IT. Successful completion of the IT governance optimization project will result in the following outcomes: 1.Buy in for IT governance optimization obtained. 2.Optimal IT governance target state structure built. 3.Governance committee charters approved. 4.Effective IT governance processes built. 5.IT governance structure and processes successfully implemented. 1. Tailor your governance structure by centering your optimization around key capability enhancements goals in 5 governance areas. 2. IT governance is about decision making. Make the right decisions faster with an optimized governance structure. 3.Business involvement in IT governance is essential. To be effective you need business support and involvement. 4. Committee empowerment is key. Ensure they have organizational endorsement and the tools needed to make decisions.

4. Info-Tech Research Group4 4 Enroll in a GI for your project. Email guidedimplementations@infotech.com guidedimplementations@infotech.com Or call 1-888-670-8889 and ask for the GI Coordinator. How to use this blueprint We recommend that you supplement the Best Practices Toolkit with a Guided Implementation. Guided Implementations are included in most advisory membership seats. Our expert analysts will provide telephone assistance to you and your team at key project milestones to review your materials, answer your questions, and explain our methodology. Info-Tech Research Group’s expert analysts will come onsite to help you work through our project methodology in a 2-5 day project accelerator workshop. We take you through every phase of the project and ensure that you have a road map in place to complete your project successfully. In some cases, we can even complete the project while we are onsite. Do-It-Yourself Best-Practice Toolkit OnsiteWorkshops Book your workshop now! Email workshopbooking@infotech.com to get started.workshopbooking@infotech.com Leverage each of the tools in this blueprint to complete the optimization of this project. Do-It-Yourself Implementation Use this Best-Practice Blueprint to help you complete your project. The slides in this Blueprint will walk you step-by-step through every phase of your project with supporting tools and templates ready for you to use. You can also use this Best-Practice Blueprint to facilitate your own project accelerator workshop within your organization using the workshop slides and facilitation instructions provided in the Appendix. Free Guided Implementation

5. Info-Tech Research Group5 5 Section 1: Build the project charter Review your IT governance optimization project charter and discuss the project stakeholder RACI chart, metrics for success, strategy for engaging stakeholders, and objection handling. Section 2-3: Build the target IT governance structure Discuss your IT governance structure, committee responsibilities and participation, and ensure effective tailoring to your organization. Info-Tech will also review your organization’s committee charters and coach you to ensure that your agenda, RACI, and purpose statements are appropriate. Section 4: Build the IT governance high-level processes Discuss your IT governance responsibilities SIPOC, and ensure that inputs and outputs are sufficiently mapped together and that no large gaps exist. Info-Tech will also help you to prepare to present the structure and processes to management. Section 5: Build the IT governance implementation plan Review your IT governance communication and implementation plans, and ensure that they are realistic, attainable, and cover all of the necessary elements. Info-Tech is ready to assist. Book a free guided implementation today! Book a Guided Implementation Today: Info-Tech is just a phone call away and can assist you with your project. Our expert Analysts can guide you to successful project completion. For most members, this service is available at no additional cost.* * Guided Implementations are included in most advisory membership seats. Here are the suggested Guided Implementation points in the IT Governance Optimization project:

6. Info-Tech Research Group6 6 Establish baseline metrics MetricHow to collect measurement Current Metric Future Goal IT Governance Capability Score Use the IT Governance Capability Level percentage from the IT Governance Structure Selection Tool, Tab 3. Assessment. Take the assessment before you start the project and assess only the “Current State” again 6 months after completing the project. __ % IT Governance Satisfaction Score Rate your level of satisfaction with the following statements on a score out of 5 (5 – completely satisfied, 4 -satisfied 3- somewhat satisfied, 2 – somewhat dissatisfied, 1 – completely dissatisfied) and add the score for your total. How satisfied are you… 1. with the time required to make decisions? 2. with the level of decision reversals? 3. with the level of business stakeholders’ engagement with IT governance and decision making? 4. with the business’ level of understanding of IT investment? 5. with the number of and productivity of governance meetings? __/25 1.Increased efficiency, through having the optimal decision-making authorities on committees. 2.Increased information availability to committees. Committees will have access to the needed information to make appropriate decisions. 3.Clear escalation paths. Knowing when and where to escalate tasks sooner can decrease wasted time. Baseline metrics will improve through:

7. Info-Tech Research Group7 7 What’s in this Section:Sections: Project rationale Build a project charter Define and build governance structure Build future state governance committee charters Build the IT governance process Build an implementation plan Define IT Governance The Value of IT Governance Keys to Successful Governance Perform a Maturity Assessment Assess the Value of IT Governance Info-Tech’s Approach to Optimizing Your IT Governance Structure and Process

8. Info-Tech Research Group8 8 Maximize the value of your IT organization through effective IT governance IT governance is composed of the structure and processes that ensure effective decision making and optimal use of IT to meet organizational goals. Effective governance needs to be designed purposefully with business objectives in mind. Too often, an organization’s governance structure and processes are built in an ad-hoc manner. These band- aid solutions to governance mean that organizations have the wrong committee structure and committees are made up of members who don’t have the appropriate authority level to make decisions, which ultimately leads to failure. A well devised governance structure enables decisions to be better supported by relevant and accurate stakeholders, leading to faster decision-making time, better quality decisions and outcomes. Effective IT governance structures and processes will help enable the alignment of IT initiatives with organization objectives and strategy. These objectives should be clearly outlined to ensure the unity of expectations and benefit realization for IT governance. higher profits reported by organizations with effective governance over those with poor governance. 20% of organizations who optimized for superior governance report productivity was “highly improved.” 40% increase in IT-driven value, reported companies who optimized IT governance. 38% (*) Source: The Val IT Framework Most important predictor of the value generated from IT is effective IT governance. #1

9. Info-Tech Research Group9 9 Harness the benefits of an optimized and streamlined approach to IT governance Core benefits of IT governance are seen through: IT governance is difficult to structure appropriately, but having an effective structure will allow you to:  Clarify decision-making accountabilities and provide a formalized process for managing organizational decision making.  Save time and money – by optimizing the responsibilities and participation on IT governance committees.  Improve transparency of IT costs.  Foster a culture of accountability for decision making, identifying and resolving issues, and open communication throughout the organization.  Ensure processes are in place and followed around the prioritization and management of projects, changes, and services.  Optimize risk by ensuring proper risk thresholds are understood, targeted, and ultimately managed.  Optimize your resourcing by ensuring that priority initiatives, services, and projects are provided adequate staffing through defined, documented, and communicated roles and responsibilities. Increases the speed of decision making and alignment with business priorities. Value creation Limits duplication of effort, and ensures meetings are effective by setting appropriate meeting goals and participation. Operating cost reduction Increases regulatory compliance, and ensures the appropriate processes are in place and monitored to mitigate risk issues. Risk optimization

10. Info-Tech Research Group10Info-Tech Research Group10 Optimized IT governance structures and processes will mitigate risks associated with poor decision rights Symptoms of inappropriate decision rights:  Delays in decision making – A project proposal has been on hold for several months and is still waiting for a sign-off decision, causing the delay of other ongoing projects.  Reversal of decisions – An initially approved project proposal with specifics has been overturned by decision makers due to internal/external factors.  Ambiguous decisions – Information has been communicated by decision makers without detailed directions and feedback; consistent follow-ups are needed to determine the next steps.  Inability to activate decisions that were already made – Approved project proposals are being put on hold due to insufficient resources, lack of corporate competence, and internal resistance.  Chronically poor results arising from the decision – Inexperienced IT decision makers often make poor decisions because they fail to consult more experienced staff or external sources. Does IT have the right level of involvement in decision making? Stakeholders outside of IT make technology decisions without consulting IT, ignoring current standards, decreasing the ability for cross-departmental collaboration, and unintentionally creating additional technical standards. This can result in a need for additional integration tools, or labor to support technology and an increase in the cost of technology stewardship. Stakeholders outside of IT make technology decisions without consulting IT, ignoring current standards, decreasing the ability for cross-departmental collaboration, and unintentionally creating additional technical standards. This can result in a need for additional integration tools, or labor to support technology and an increase in the cost of technology stewardship. Risks when IT has too little involvement: Business stakeholders abdicate responsibility for priority setting and approval of project specifications, resulting in IT having to make assumptions about business needs and priorities. As a result, IT is seen as the project gate keeper, and consistently blamed for project delays, or not delivering projects that are seen by the business as key value drivers. Business stakeholders abdicate responsibility for priority setting and approval of project specifications, resulting in IT having to make assumptions about business needs and priorities. As a result, IT is seen as the project gate keeper, and consistently blamed for project delays, or not delivering projects that are seen by the business as key value drivers. Risks when IT has too much involvement: In many organizations, decisions are made by the wrong people, and no one is held accountable for the results. Effective governance puts the structure and processes in place to ensure that decisions are made by the right people and with the right information.

11. Info-Tech Research Group11Info-Tech Research Group11 Don’t confuse management decisions with governance decisions Management Governance IT governance sets direction through prioritization and decision making, and monitors overall IT performance. Governance sets the vision and approves policies for the organization. Management is responsible for executing on, running, and monitoring activities as determined by IT governance. Management makes decisions for implementing the policies. In this blueprint, we will guide you through the process of setting up clear committees, roles, responsibilities, and decision-making processes for governance, which will in turn enable effective IT management. The IT Steering Committee decides which projects IT undertakes, resource allocation, and investment. At the close of the project the committee reviews project success metrics. Management receives the list of projects that have been prioritized, creates and executes the project plan, and reports on their success to the governance committee. Organizations often blur the line between governance and management, resulting in the business having say over the wrong things. Effective governance should enable IT managers to work smart, not be an extra set of hoops for IT to jump through. By setting up the right governance committees with the appropriate responsibilities and members, you will be setting your IT management team up for success from the start. What is the difference between governance and management? Project governance as an example:

12. Info-Tech Research Group12Info-Tech Research Group12 Info-Tech Research Group Helps IT Professionals To: Sign up for free trial membership to get practical solutions for your IT challenges www.infotech.com Quickly get up to speed with new technologies Make the right technology purchasing decisions – fast Deliver critical IT projects, on time and within budget Manage business expectations Justify IT spending and prove the value of IT Train IT staff and effectively manage an IT department “Info-Tech helps me to be proactive instead of reactive – a cardinal rule in a stable and leading edge IT environment. - ARCS Commercial Mortgage Co., LP Toll Free: 1-888-670-8889