Governance Model and Alignment
Define guidelines and decision rights for funding governing bodies and promote decision-making alignment with organization-wide decision-making cycles.
Improvement Planning
Practices-Outcomes-Metrics (POM)
Representative POMs are described for Governance Model and Alignment at each level of maturity.
- 2Basic
- Practice
- Define a basic governance model for IT funding-related decisions within the IT function.
- Outcome
- While a governance model is established, it is often limited to annual budgeting discussions.
- Metrics
- % of funding decisions in alignment with governance criteria.
- % of funding decisions formally recorded and reviewed.
- Practice
- Establish an initial funding decision-making process and apply it within the IT function.
- Outcome
- Some funding decisions are made in alignment with a formal process.
- Metric
- % of funding decisions where the decision-making process is applied.
- 3Intermediate
- Practice
- Agree a standardized funding governance model across the IT function.
- Outcomes
- Funding is directly linked to IT function initiatives.
- Clear justification exists for funding decisions.
- Metrics
- % of funding decisions in alignment with governance criteria.
- % of funding decisions formally recorded and reviewed.
- Practices
- Consistently apply funding decision-making processes within the IT function and within some other business units.
- Ensure funding decisions are visible and objective and are linked to business initiatives.
- Outcome
- There is enhanced transparency regarding funding decisions, and clear and explicit decision criteria, which allows funding applicants to better develop their proposals and/or funding applications.
- Metrics
- % of funding decisions where the decision-making process is applied.
- % of funds directly linked to business initiatives.
- 4Advanced
- Practice
- Ensure the IT function and the rest of the business share and apply a consistent funding governance model with explicit governance criteria across the organization.
- Outcome
- There is transparency and objectivity in governance processes, and decisions can be clearly aligned with organizational priorities.
- Metrics
- % of funding decisions in alignment with governance criteria.
- % of funding decisions formally recorded and reviewed.
- Practices
- Consistently apply funding decision-making processes organization-wide.
- Ensure a portfolio approach to funding, aligning IT and business strategies, and sharing processes across IT and the rest of the business.
- Outcome
- There are an increasing number of IT investments funded that have clearly articulated links to business initiatives and strategic goals.
- Metrics
- % of funding decisions where the decision-making process is applied.
- % of funds directly linked to business initiatives.
- 5Optimized
- Practice
- Continuously review and improve the funding governance model.
- Outcomes
- Transparency and objectivity in governance processes are always assured.
- Funding allocation effectiveness is optimized.
- All senior stakeholders understand the strategic value of funding IT correctly and from different sources ensuring capital cost efficiency.
- Metric
- Frequency of review and update to the funding governance model.
- Practice
- Continually review and improve the funding decision-making processes.
- Outcomes
- Transparency and objectivity in funding decision-making processes are always assured.
- Funding allocation effectiveness is optimized.
- Metric
- Frequency of review and update to the funding decision-making processes.