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Allocating Decision Rights & Accountability: Elements of Effective IT Governance
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Reference: HBS-3595BC-E
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Number of pages: 31
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Publication Date: Jul 7, 2009
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Source: HBSP (USA)
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Type of Document: Book Chapter
Description
Every firm, at some level, needs a digitized platform, or integrated set of electronic business processes, to operate effectively. The only way to deliver a digitized platform--and superior business value from IT--is to design IT decision rights and accountabilities so that daily decisions about IT support the firm's strategic goals. In this chapter, the authors explain the importance of transparency in IT governance and describe how a firm's governance mechanisms clarify how each of five key decisions will be made and who will be held accountable. Having a clear direction in each of the five decision areas will help promote desirable behavior in the management and the use of IT. This chapter was originally published as chapter 5 of "IT Savvy: What Top Executives Must Know to Go from Pain to Gain."