Introduction
In the current world Technology has become one of the most inevitable and paramount tool in the running of day-to-day operations of business. Technology has evolved immensely to accommodate all aspects of life. Most governments in the developed countries have sensitized its citizens to adopt modern methods of technology to enhance efficiency in their places of work and reduce costs, which results from asymmetric information. For instance in our organization the management invested in internet connection which has facilitated simultaneous sharing of information across all levels of job specialization. Further, a special task force was formulated to spearhead the fast track of Information technology policies that will enhance quick adoption of IT with minimum costs. Hence, there is need for monitoring of technology progress due to its delicate situation and prone to eventualities.
Corporate governance involves coordination of all management structures to facilitate harmonious functioning. One of the many ways of enhancing efficient governance is through IT. Ensuring that the management is updated about periodic running of the organization within the day is imperative in achieving the organizations set goals. Furthermore, it will help in maintaining their organizations visions and mission of goal maximization and customer satisfaction
IT governance is a subset of corporate governance. The area concentrates on coordination of the overall governance through Information technology. Its overall mandate is to enhance effectiveness I the organization through harmonious technological techniques. For instance, the use of Video conferencing in our organization was a milestone towards realization of our goals and it saved on costs, thus improving on our revenues.
IT Governance has several definitions formulated by different authors trying to demystify its content. In overall, IT governance refers to a formulation of structural relationship among relevant parties within an organization to control directly or indirectly the running of the organization’s activities to achieve the set objectives. Overall, the universal set objective is to maximize revenue, maximize profits and reduce cost. Others, especially the non –governmental organizations work towards maximizing o surplus and enhance good service delivery to the clients.
Importance of It Governance
Information technology sector is a very delicate area and cannot be left to operate automatically. They needs close monitoring of its progress and various amendments to be made to retain the key objective, that is reduce information costs and maximize revenue.
One of the major importances is that it helps in ensuring that there is value addition in investing in the in the organization. The task force committee in our organization mandated to monitor and implement the concept of It in our organization prepares reports and presents it to the executive management about the progress of IT and the measures that needed to be taken to remain positive.
It helps mitigate technology risks. These risks include the circumstantial price fluctuations of maintaining the technology assets and remain relevant in the business. The sector is prone to many risks and therefore close monitoring is necessary.
Furthermore, the IT sector has a very rapid growth that could surpass the overall growth of the organizations .New operation applications are invented at high rate and therefore it’s necessitates close monitoring of the overall market response to IT concepts to remain ahead of its rivals.
In our organizations, the taskforce committee formulated a performance Index to assess the efficiency of IT governance achievement towards the organization’s set objectives. Some of the key performance assessment levels are ability to mitigate risk within a period of time, reduction of costs of delivering IT governance and continuous improvement of quality service in line with the current times. Two of the main performance metric assessment criteria are development metric and service metrics
Constraints facing IT Governance
Like in any management structure, It governance also encounters hindrances to its core mandate.
Lack of skills in IT: this is the main problem to IT progress since senior management officials have little or no knowledge about Information technology .Their bureaucratic policies inhibit the formation of a special taskforce of IT experts
Poor risk management: This involves assess risk loopholes and finding mechanisms to mitigate the risks when due. This requires brainstorming session that projects potential threats to the effectiveness of the project.
In adequate resources to the department: Poor funding of the Information technology kitty is a potential threat to IT governance achievement
Introduction of concept of IT application in governance of any organizations resulted from the organizations dire need to delegate powers to junior employees and enhance effective management. Either delegation invites different opinions from different levels of management that may have a positive or negative impact of the organization’s objective .Therefore harmonization of all departments’ activities and decisions is paramount. The idea of centralization which has been implemented for long proved challenging especially when multiple objectives need to be achieved .To eliminate this bureaucratic management approach, decentralization of responsibilities came in different departments were formulated to deal with issues affecting a different stage of operations activity and make rational decisions to solve its problems in consultation with the executive management. This strategy, cannot work effectively unless there is an overall harmonization of all departments activities. The concept of IT governance acts as a complement to this approach.
Several delegation models have been proposed with intent to ensure that the organization does not deviate from its core objective of income or profit maximization and service delivery .The main models that are applicable to the concept of IT governance are centralized models, federation model and decentralized model. In a centralized model, a down-wad vertical model of decision-making is applied. It policies are formulated from a central point and orders given to the junior departments on how to implement them. This model cautious but lacks free interaction between affected parties to improve the concept. The federation model involves a chain of management where the IT players report to both the department directors and to the central unit. This approach is usually time consuming and demotivating since despite the efforts of junior IT officers to suggest decisions, the overall decision lies with the executive director.
Decentralized model creates a path where the employees only report to the relevant agency directors. This approach is better than federation model and it is quick to implement. It therefore empowers the agency directors and gives them freedom to align their approach to the department needs.
Governance structure
In our organization, Federation model is applied to achieve the set objectives. This model is headed by an overall executive council that formulates guidance policies that harmonize all departments regardless of the area of specialization. Departments relevant to the line of production or delivery of services are formed and mandated to oversee and report about that department. However, all these agency managers are required to report to the department directors and to the overall executive board. This approach proves uneconomical especially when an issue is contentious or results in different opinions from directors. It costs time and resources of brainstorming meetings to make conclusive approach.
Decision making process
In any organization there has to be a chain of decisions mandates where an overall director ordinates all the decisions made in departmental levels. Our organization entails a board of directors that has the overall mandate on the operations of the activities in the organization. They formulate policies and oversee its implementation. Besides, directors are responsible for departmental roles in the organization .Each director are mandated to manage the operations of his department and make appropriate approaches to eliminate hurdles. However, these directors have to report to the executive committee where they are members .they inform the committee of the decisions they have made and also present the complex issues that affects the overall running of the organizations
In addition, these directors have the mandate over their juniors in their departments who report to them. These juniors are titled as managers and report to both their departmental directors and the executive board of directors. The main mandate of the managers is to report on the daily operations of their small segments of work and seek consultations in case of any contentious issue.
Challenges facing the decision making Model
Multiple reporting is a challenge to the progress of the organization. The decision consumes time and resources before the decision are approved unanimously. In addition, people have different views of handling issues and therefore there is likely to be dissenting opinions. The approach is uneconomical since it incurs extra cost due to many departments.
Recommendation
As management expert, decentralized approach would serve most appropriate in the organization. This would reduce the grace period spent before a decision is approved. Agency directors will be able to deal directly with the agency managers without always involving the executive directors .The executive board would only intervene when the issue affects all the departments and the organization as a whole. Besides, it will ensure individual responsibility and accountability rather than blame game that may instill acrimonious attitude in the work place. The model cuts on information costs and enhances coordination
Work cited
Cater-Steel, Aileen. Information Technology Governance and Service Management: Frameworks and Adaptations. Hershey: Information Science Reference, 2009. Print.
