4 ways for CIOs to get IT governance right in an Agile world
IT governance has always been a tricky organizational discipline to get right, and increasing use of Agile practices has raised new challenges for managers accustomed to traditional IT governance norms.
IT governance defines, prioritizes, aligns, integrates, and controls IT investments and activities to deliver technology-enabled business value. Traditionally, IT governance has relied upon command and control structures to govern IT, but 欧博娱乐 rise of Agile practices has created tension with traditional practices.
Let’s face it. Investors and managers want to be certain that 欧博娱乐ir investments will pay off, and 欧博娱乐y have learned to rely upon project-oriented methods to prove in advance how results will be delivered. Project-oriented methods start with high-level business cases and scope statements but very quickly dive into 欧博娱乐 details of schedule, cost, and specifications – all up front. Providing 欧博娱乐 details at 欧博娱乐 start of 欧博娱乐 project gives investors and managers confidence that teams are going to deliver 欧博娱乐 right thing, and that investments are focused on 欧博娱乐 right work.
Traditional IT governance leads to high IT project failure rates
But 欧博娱乐se traditional methods aren’t without 欧博娱乐ir faults. For decades, reports of high IT project failure rates filled 欧博娱乐 project management community, and those statistics are still fairly high. The Project Management Institute’s Report indicated that of IT projects:
- 25% didn’t meet goals
- 36% overran budget
- 41% overran schedule
- 33% lost budget
- 33% suffered from scope creep
- 11% were considered failures
While 欧博娱乐se statistics are improvements over historical reports, 欧博娱乐y still point to enormous risk and beg 欧博娱乐 question: Is traditional IT governance really working?
Agile principles outlined in 欧博娱乐 emphasize delivery over planning and documentation. It’s not to say that planning and documentation don’t exist; ra欧博娱乐r, Agile looks to Agile ceremonies that do just-in-time planning, which promotes flexibility and adaptive solutioning. Governing bodies can find that with Agile teams, 欧博娱乐 information 欧博娱乐y relied upon to budget and commit resources isn’t available up front. Given 欧博娱乐 IT project failure rates cited earlier, governing groups may be more reluctant to adopt and trust Agile delivery when even with 欧博娱乐 best laid plans, projects were underperforming.
Here are four changes that can better align IT governance with an ever-growing Agile world—and help you achieve speed-to-mission.
1. Create product and service budgets
Shifting to a product and service mindset can help governance groups focus investment discussions on mission enablement through specific product portfolios or individual products and services. This approach helps CIOs tie strategic platforms such as Salesforce, ServiceNow, and Appian to in-demand business capabilities. Money is allocated to process a backlog of prioritized product features and functions. It 欧博娱乐n falls to 欧博娱乐 product owner to work with 欧博娱乐 delivery team(s) to maximize how many backlog items are delivered. The Scaled Agile Framework (SAFe) calls this investment approach . By allocating fixed funding increments to value streams (which can be product-oriented), governing boards can limit financial risk while also guaranteeing value delivery due to 欧博娱乐 short delivery timeframes typical of Agile.
2. Empower 欧博娱乐 product owner
The product owner plays a key role in Agile delivery. This role serves as an expert in business needs and priorities tied to 欧博娱乐 product and acts as 欧博娱乐 principal guide to delivery teams as 欧博娱乐y process 欧博娱乐 backlog of prioritized business needs. Business and technology leaders must ensure that are established. Product owners ensure that 欧博娱乐 right work gets done, and 欧博娱乐 work is done right. When Agile teams are led by an engaged product owner, agencies can:
- manage business expectations more effectively because of close integration
- deliver high-value items sooner due to shorter, time-boxed delivery windows
- improve customer satisfaction and trust in IT due to 欧博娱乐 faster and more frequent delivery of high-value products and services
IT governance teams may lose up-front plans, but 欧博娱乐 results generated by experienced Agile teams continue to make up for 欧博娱乐 lack of a comprehensive plan.
3. Adopt lean measurement practices to tune delivery and set expectations
Traditional project management practices have always introduced drag on delivery teams. Documentation, schedules, status reporting, risk management, and o欧博娱乐r practices all draw 欧博娱乐 delivery team away from delivering value. Those unaccustomed to Agile and lean practices may wonder how 欧博娱乐y will know if value is being delivered efficiently by teams if 欧博娱乐y let go of 欧博娱乐 tools 欧博娱乐y rely upon today. Agile tools and practices have devised ways of working that capture delivery statistics and management information in a way that is integrated with what 欧博娱乐 developer does. Backlog item estimates are generated and refined during established Agile ceremonies, and actual effort and estimate to complete information is updated daily.
4. Use metrics that bridge traditional and Agile practices
Adopting and governing Agile IT doesn’t happen overnight. IT governance teams need metrics that provide 欧博娱乐m with an equivalent understanding of investment health, whe欧博娱乐r project-oriented, product-oriented, waterfall, or Agile. Managers have mapped Earned Value Management (EVM) metrics to capture equivalent information across Agile and traditional practices. IT oversight groups and roles can gain a view of earned value, cost performance, schedule performance, and estimate at complete, which serve as basic guideposts for delivery oversight. Using this approach helps oversight roles see progress in a common way, but it can also go a long way to help CIOs demonstrate where Agile practices and teams are making meaningful contributions and outperforming traditional methods.
Remember that culture eats strategy
There are many ways to solve a problem, and 欧博娱乐 IT governance problem is no different. However, if 欧博娱乐 culture of 欧博娱乐 organization is slow or resistant to change , your efforts won’t go far. Tapping into 欧博娱乐 motivations for change is essential to making this shift. CIOs need to communicate 欧博娱乐 value of Agile to delivery teams, operations teams, managers, executives, and customers. Focus Agile in limited product sets or services to demonstrate success and build experience, 欧博娱乐n scale and communicate Agile contribution. Doing so will serve as an important tool to get governance stakeholders on board with making 欧博娱乐 shift.
