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Saskia de Wit

influence map - making the most of best practices

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Edited by Saskia de Wit, Sunday, 4 Nov 2012, 10:20
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Saskia de Wit

Simonsson, Johnson and Ekstedt (2010) - the effect of IT governance maturity on IT governance performance

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Edited by Saskia de Wit, Sunday, 9 Sept 2012, 19:19

Title

The effect of IT Governance Maturity on IT Governance Performance

Author

Publication

Year

Read

(Simonsson, et al., 2010)

Information Systems Management

2010

09-Sep-2012

Key words

Alignment, business value, governance, strategic planning, ITIL,  COBIT

Summarizing comments

This article by Simonsson, Johnson and Ekstedt (2010) aims to provide evidence for the correlation between IT Governance Maturity and IT Governance Performance. The article defines IT Governance as the structures, processes and relational mechanism for the IT decision making in an organization. It is considered a complex array of interfirm relationships involved in achieving strategic alignment between business and IT.

The article defines IT governance maturity as the internal IT organization efficiency. IT governance performance  is considered to be the external effectiveness of services that the IT organization delivers to the business.

The authors recognize that ITIL has its focus on value adding indicating an alignment for business and IT. They do not see that ITIL is supporting governance as much as COBIT or as Val IT do. The authors use the COBIT process structure to research this correlation in the four governance domain (according to COBIT): PO. Plan and Organize (10 processes); AI. Acquire and Implement (7 processes); DS. Deliver and Support (13 processes); ME. Monitor and Evaluate (4 processes). The assessment of the correlations is based upon 35 organizations, with 158 interviewees providing face-to-face input and additional survey. The results were further interpreted by 15 experts in the field, as it was considered that IT persons could better better evaluate the research results. I do question this aspect of the research, as the ever-so-common mismatch between Technology and Business objectives is founded in the fact that they develop on two separate parallel lines. To evaluate IT governance performance representatives from both lines should contribute.

Nevertheless, the research provided evidence for the correlation between IT governance maturity and IT governance performance. The correlations were strongest in the Planning and organizing processes (as expected) and Monitor and evaluate. The Delivery and Support seems to have the weakest correlation. The expert  was surprised by the fact that the Project management process had such a weak correlation. I was also surprised to see this weaker correlation for Problem management and service level agreement management, and the performance and capacity management processes.

My personal stance on the strengths of the correlations between IT governance maturity and performance is that the closer the processes are to the daily operations, the less it is specifically linked to higher level objectives. Project management is so much aimed at achieving something pre-defined; there is not too much thought going into the higher purpose of the project objectives. It is very much aimed at the day-to-day. Whereas other PO processes are much more targeting the alignment with business. Problem management is rather often reactive, which is considered a valid justification for the weaker correlation for this process.

The IT performance and capacity management process is not discussed in the article. I would think that this process indeed is very much aimed at the internal IT efficiency and not so much considering the external interfaces. The weak correlation for Service level agreement management I find hard to explain. Maybe because the study was performed in Sweden and the culture is less prone to seek competitive advantages on this level of negotiations. No idea. For a weak correlation in compliance management an similar argument was presented.

I like the list in Table 9 sorting the COBIT processes in order of the correlation strength between the process's IT governance maturity and performance. This list could be useful to focus our improvement efforts.  I do not like the description of the study which I think is not sufficiently comprehensive to understand how the maturity level and performance level is measured. The article could have at least have provided the survey questions.

Interesting quotes

Definitions for IT governance, IT governance maturity and IT governance performance

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09-Sep-12

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Saskia de Wit

Iden & Langeland (2010) - setting the stage for successful ITIL adoption

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Edited by Saskia de Wit, Wednesday, 29 Aug 2012, 08:28

Author

Article

Year

Read

Iden & Langeland

Setting the stage for a successful ITIL adoption: a Delphi study of IT experts in the Norwegian armed forces

2010

18-Aug-12

Key words

ITIL, armed forces, Delphi method, ITSM, success factor

Summarizing comments

This article (Iden & Langeland, 2010) I recently read seems useful to distribute within the NCIA to a wider audience.

The article reports on a recent study to determine the success factors for adopting ITIL within the IT services in the Norwegian armed forces. The authors have used the Delphi method to analysis these factors and sought consensus between 15 experts on their relative relevance to succeed in creating value from adopting ITIL. ITIL (v.3) is the most widely accepted ITSM framework and outlines an extensive set of best practices captured in nearly 30 process areas.

The authors contrast IT service management, as process based, with more technical approaches to IT operations. The article uses a quote from Van Bon 2002 as the principle behind ITSM “Providers of IT services can no longer afford to focus on technology and their internal organization, they now have to consider the quality of the services they provide and focus on the relationship with customers”.

The expectations for the benefits of ITSM are high. Literature asserts improved customer satisfaction; increased quality of services; lower production costs; clearer organizational structure; increased management control; a service oriented culture; as well as uniform terminology for internal and external communications. The relative benefits that an organization will experience will obviously be dependent to the initial state of the organization and the ambitions it has.  

As NCIA NPC Glons has a mature quality management system, I do not expect that introducing ITIL within NCIA NPC Glons will bring many benefits with regard to organizational clarity or management control. The claim of cost reduction is questioned by, for instance, Marquis (2006). The most substantial benefits from ITIL I expect to see in its value for merging the various sub-groups within the NCIA, as it provides us a framework to refer to and terminology to use in our communication as enablers to grow towards a shared identity.

Earlier case studies recognized that ITIL is becoming essential in IT operation and that many organizations experience problems during implementation. These case studies identified 3 focus areas for successful adoption: management engagement, training and competence, and information and communication. The objective of this Delphi study is to develop an authoritative list of factors that need special attention when an organization is adopting ITIL, by bringing together expert opinions with respect to the variety of stakes

The article identifies 65 success factors in 9 categories: Management; Tools; Training; Information & Communication; Project Management; Measurement; ITIL Processes; Organization and Organizational Culture; Customer relations. The full list is attached to the article as an appendix.

From these the most important 12 factors (50% of the experts indicating that the factor is in the top 10) were selected and then next ranked in consensus by the experts in order of importance.

1. Managers at all levels must have an ownership to the introduction of ITIL

2. Senior Management must formally decide the introduction of ITIL

3. Identify and involve key personnel, and let them participate in the design and improvement of processes

4. Senior Management must have knowledge about and understanding of what process orientation means

5. Start with and prioritize a few ITIL processes where there are greatest opportunities for success

6. Information, characterized by openness, must be given up front to personnel and customers about what ITIL means, why ITIL is being introduced and what it will entail

7. General competence in process thinking, ITSM and ITIL must be provided for all concerned

8. A modular ITSM system is needed and must be applied for all processes

9. Plan for and communicate positive project results early and along the way

10. A specific training programme for the ITIL introduction of the various processes must be provided

11. Implement a standard system for measuring, analyzing, and reporting on service level

12. Be conscious about the fact that introducing ITIL means changing organizational culture

From ‘top 4’ 3 factors relate to management. An interesting observation is that factors related to technology and methods are considered to have less importance.

In their conclusion, the authors specifically mention that prior studies never revealed such big emphasis on the role of the management, compare to the general knowledge and commitment of staff. I wonder to which extent this can be attributed to the military culture and has less to do with the introduction of ITIL and the character of IT services. The article does pick on this aspect and suggest continuing this study in other organizations and in different countries.

The article provides a number of anchors for further readings, for instance from Pallard & Cater-Steel (2009) and Van Bon (2002)

Interesting quotes

“Providers of IT services can no longer afford to focus on technology and their internal organization, they now have to consider the quality of the services they provide and focus on the relationship with customers.”

“An IT service is based on the use of information technology and supports the customer’s business processes. An IT service is made up from a combination of people, processes and technology, and should be defined in a service level agreement.”(Evans & Macfarlane, 2001).

“A reference model may be defined as “an abstracted depiction of reality that serves as a standardized or suggestive conceptual basis for the design of enterprise specific models, usually within a like domain” (Taylor & Sedera, 2003).

Too many to mention

Actions

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1. Read and summarize

19-Aug-12

Done

2. Distribute to C-MAO, QSAC

20-Aug-12

Done

3. Re-read

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Saskia de Wit

Marquis (2006) - ITIL: What it is and what it isn't

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Edited by Saskia de Wit, Saturday, 18 Aug 2012, 11:35

Author

Article

Year

Read

Marquis

ITIL: What it is and what it isn’t

2006

17-Aug-2012

Key words

ITIL; standards

Summarizing comments

This article (Marquis, 2006) basically warns its readers to take ITIL as anything else but guidance for building and maturing a service provision system. The guidelines are a set of practices that require alignment and tailoring with business objectives, organizational culture and infrastructure. Marquis argues that it is impossible and undesirable to go for ITIL compliance. He claims that adopting ITIL principles in your organization and your activities is about adding value for your customers and not about cost reductions. It is not unlikely to call for additional efforts and costs. ITIL forces IT to address business requirements. “Sometimes IT is inefficient and wastes money; and ITIL will show this. Other times IT is underfunded and requires more money; and ITIL will show this as well”.

Marquis recognizes that ITIL best practices require a process framework and can build upon other practices to support ITIL principles;

· Project management and continuous service improvement program=

· Appropriate goal setting through a process maturity framework

· Rigorous auditing and reporting through QMS

My view on this article is that it briefly provides me generic statements on many different IT standards, just adding the term ‘service’. I have seen alike articles written about CMMI and ISO standards. Nevertheless nicely put together and good for a few quotes.

Does not come with a reference list, so a dead-end.

Interesting quotes

On processes: "Good enough"is actually perfect when it comes to ITIL

The ITIL is clear that it does not stand alone, and in fact, can only succeed when used with other practices.

All ITIL provides is advice to those preparing to change how they operate in order to "concentrate on service quality and a more customer-oriented approach."

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18-Aug-12

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Heston & Phifer (2011) The multiple quality models paradox: how much 'best practice' is just enough?

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Edited by Saskia de Wit, Saturday, 18 Aug 2012, 11:33

Author

Article

Year

Read

Heston & Phifer

The multiple quality models paradox: how much ‘best practice’ is just enough?

2011

12-Aug-12

Key words

Quality management, Standards, Quality models,

Summarizing comments

The title of this article (Heston & Phifer, 2011) left me with the expectations of an academic paper into a struggle between standardization and formality vs. flexibility and speed to best meet current and future business objectives. The article does not meet these expectations and is predominantly an outline of characteristics of typical standards / models / best practices used within the software industry (ISO 9001, CMMI, ITIL, ISO 27001, eSCM-SP, Six Sigma, Lean).

Heston and Phifer argue that implementing one or more of these should not be a goal on its own and claims that many organizations are putting effort in implementation of these without taking full advantage of such implementation. They encourage the purposeful application of parts of these models/standards to best meet the organization’s needs.

They are using the terms ‘Process DNA’ and ‘Quality Genes’ as building blocks of each standard/model and compare how each standard/model focusses on each of these.  I don’t know how they came to the selection of the Reference model capabilities to map the ‘Q-genes’ of each standard/model.  The explanation provided is that it represents an’ initial, high-level view of many elements that currently are incorporated into the reference models and standards in scope for this paper’. The paper suggests that this list could be easily expanded with other comparison criteria, attuned to the specific needs from the organization.

The article provides 4 different scenario’s where different type of organizations are selecting different best practices from different model/standards based upon their culture, their needs (I skipped these scenarios; I can see the point).

The message of the article is a little lost in the amount of tables delivering the comparisons. The tables are poorly positioned and also poorly introduced. At a number of occasions, I had to go backward and forward to understand why the table was there.  Their content, however, the comparisons of the different models/standards is useful for my project and for my normal work too.

Paragraph 6 provides a nice overview of common challenges and risks when pursuing process improvements and suggests mitigations.

· Lack of focus on people change management

· Lack of skills in process improvements

· Belief in silver bullet

· Belief, compromises and conflicts on what is enough (actually what triggered me reading this article; the authors introduce the 80/20 rule and suggest that you move to maintenance mode once you have reached your business objective)

· Being model centric

This article feels as a rush-rush job, insufficiently filtering the information required for the reader to take in the case; it just uses everything available. Valid points, but not really contributing to the case (for instance this list of common challenges and risks with their mitigations). The conclusion is not really following the line set out in the article. The conclusion suddenly mentions the costs of implementation of standards as a major issue. I do not disagree; I just don’t think it should be an important part of the conclusion if it hasn’t been a major part of the article.

Interesting quotes

· “organizations need a straightforward framework that establishes a systematic, value-added, and effective governance structure and delivery mechanism based on industry-accepted business process management principles.”

· “…first analyze the ‘DNA’ of each of the models in scope and identify those building blocks, the ‘quality genes’ that form its core. In effect, this approach could enable each organization to rationalize and form its own reference model – one best sized and suited to address its business needs and objectives.”

· “… the idea of process improvement is pretty straightforward: figure out what is not working as well as you would like and take actions to make it work better”

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12-Aug-12

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