IT Governance to Drive High Performance

IT Governance to Drive High Performance: Lessons from Accenture

ROBERT E. KRESS
Copyright Date: 2010
Published by: IT Governance Publishing
Pages: 47
https://www.jstor.org/stable/j.ctt5hh6jz
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  • Book Info
    IT Governance to Drive High Performance
    Book Description:

    This pocket guide provides you with an insider’s detailed description of Accenture’s IT governance policy and details its governance structure. It will show how effective IT governance links IT strategy and IT decisions to Accenture’s business strategy and business priorities. Following the best practices approach set out in this pocket guide will serve as an excellent starting point for any organisation with ambitions to achieve high performance.

    eISBN: 978-1-84928-038-9
    Subjects: Technology, Business

Table of Contents

  1. Front Matter
    (pp. 2-4)
  2. PREFACE
    (pp. 5-6)
  3. ABOUT THE AUTHOR
    (pp. 7-7)
  4. Table of Contents
    (pp. 8-8)
  5. INTRODUCTION
    (pp. 9-16)

    In the late 1990s, Andersen Consulting was preparing to spin off from Andersen Worldwide, the holding company for the consulting firm and for its sister company, accounting firm Arthur Andersen. Faced with building its own information technology (IT) organization, Andersen Consulting (now Accenture) quickly realized it was taking on a formidable challenge. At the time, the firm operated in more than 40 countries, and each country, and even some regions within large countries such as the United States, had their own IT organizations, systems and processes.

    This arrangement was a legacy of how Andersen Consulting grew, as a decentralized partnership...

  6. CHAPTER 1: SETTING AN IT GOVERNANCE POLICY
    (pp. 17-19)

    Before Accenture’s IT governance model was fully implemented, nothing drove home its value more vividly than several notable failed IT initiatives. One was a global markets portal that employees did not end up using and had to be written off. In another case, an electronic scheduling application was selected based on an operating group relationship rather than an independent product review. After four years, the costly tool ceased to meet business requirements and had to be replaced.

    These missteps led Accenture to expand the scope of its IT governance model. They also reinforced the importance of adhering to its IT...

  7. CHAPTER 2: BUILDING AN IT GOVERNANCE STRUCTURE
    (pp. 20-27)

    After constructing its IT governance policy, Accenture created a structure for carrying out the policy. To fit the needs of its matrixed organization, Accenture established five central roles in the IT governance process. They are:

    Accenture Capital Committee

    IT Steering Committee (ITSC)

    IT organization

    business sponsor

    stakeholder.

    Accenture’s Capital Committee, made up of the company’s senior leadership, approves all capital investments for the firm. In addition, regardless of whether an IT investment is capitalized or expensed, the committee sets the overall IT investment funding level and provides guidance for IT spending across IT investment categories.

    In recent years, Accenture has...

  8. CHAPTER 3: LEVERAGING THE STRUCTURE
    (pp. 28-32)

    To cover other major IT decisions, Accenture has mapped out additional responsibilities and accountabilities among the same five governance groups:

    managing global vs. local needs;

    integrating governance with planning and budgeting;

    managing benefit realization.

    Like all corporations and not-for-profit organizations with locations scattered across the globe, Accenture sometimes faces a tug-of-war of interests over single global capabilities or multiple capabilities designed to meet specific local needs.In many cases, Accenture’s managed services model solves this dilemma.

    The company’s geographic leaders are responsible for the local infrastructure and local application and support needs of the geographic units, including personal computers, e-mail, Internet...

  9. CHAPTER 4: CASCADING IT GOVERNANCE
    (pp. 33-39)

    Within its governance framework, Accenture has spelled out governance procedures for multiple IT areas, including investments, products and services, standards and architecture.

    After the Capital Committee establishes annual budget targets, the IT Steering Committee oversees the IT investment and initiative decision-making processes. The IT governance process groups investment requests into five categories, based primarily on the beneficiary of the investment:

    individual businesses

    company-wide

    corporate function (such as finance or HR)

    IT function

    legal and regulatory.

    Each category has an ITSC subcommittee, made up of ITSC members, that reviews the cases that fall into its domain. Each committee typically evaluates 30...

  10. CHAPTER 5: ADAPTING ACCENTURE’S IT GOVERNANCE TO OTHER ORGANIZATIONS
    (pp. 40-44)

    An effective IT governance model can put an organization on the path to high performance. Accenture’s research on high performance businesses has established a strong link between high performance in IT and overall business excellence. With IT so critical, chief executives increasingly include high performance IT among their strategic imperatives, according to the research.

    In addition to its research, Accenture’s own experience is a testament to the power of smart IT governance in driving high performance IT and corporate high performance. Its IT governance model is world-class, with major benefits falling directly to the bottom-line while building organizational capabilities that...

  11. ITG RESOURCES
    (pp. 45-47)