IT Governance Overview

1. IT Governance Overview GTEC - October 15, 2007 Gale Blank, IBM Chuck Henry, Chief Information Officer Branch, TBS RDIMS# 593166

2. Part One: Governance Overview

3. What is Governance? IT Governance is defined as: “…Specifying the framework for decision rights and accountabilities to encourage desirable behavior in the use of IT” Center for Information System Research, Sloan School of Management – MIT: Peter Weill • It is driven by the need for closer interaction and involvement with stakeholders…. basically integrating the three "C's" : Cooperation, Consensus and Community, into the model • IT Governance is not about the specific decisions made, but rather about determining who makes each type of decision, who has input into the decision, and how one is held accountable for their role

4. Today Tomorrow Aligned Unaligned Shared Common Moving Towards The Role of Governance in “Acting as One” • Governance is a key enabler in this transformation • CIOs and IT Heads are agents of “business transformation” • Defined and active central governance is essential in federated organizations with distributed decision-making to achieve the strategic outcomes

5. The Governance and Organization’s Relationship 1 • Decisions are at the core of governance, as • which decisions are to be made; • where decision will be opened and closed; • how decisions are reached; and • who will be accountable for results Decision Rights & Accountability Structure Governance 1 2 Structure defines the composition of the bodies that make or execute on joint decisions. 2 Relationship Management 3 Relationship Management informs how parties work together 3

6. Simple Simple to understand and explain Easy to maintain Participative and inclusive Stakeholders must be part of the decision process All parties concerned should be given the opportunity to provide input and feedback All departments and agencies must be informed of the decisions made Formal Governance - its roles, responsibilities and structures are recognized and supported The decision process will follow a known process that ensures appropriate consultation and engagement from all stakeholders Decisions made are universal and are inherited Decisions made are for all of government, including international, and any exception required will be handled by an established variance process Flexible The governance structure should be able to accommodate new directions and decision areas, and new stakeholders Acting as One The model should support the alignment of government-wide and departmental decisions Departments’ and agencies will implement a governance structure for IT that is in line with Treasury Board Secretariat (CIOB) to facilitate communication and alignment Proposed Principles for the TBS IT Governance Model

7. Part Two: The Shared Services Vision

8. FY 2003-04 $4.95B Corporate Administrative Shared Services (CASS) 7% Telecom 16% Program Applications 23% Data Center 21% Security & Distributed Architecture Computing 2% 31% Scope of IT Infrastructure in the GC PWGSC/ITSB has provided IT Services to other GC departments since 1970s – annually now »$ 500M. IT Shared Services $3B IT Infrastructure which could be a “Utility” IT Infrastructure is pervasive and critical to GC Operations

9. Aging workforce, shrinking IT labour pool 89K short in Canada, of 600K total, in five years Aging infrastructure, too little re-capitalization, not “Green” Rustout occurring, year end buy process not viable We are accepting additional Business and Security risks from having many networks and data centres to manage, secure and test effective Business Continuity plans Not fully leveraging Industry and our scale Stove-piped duplication, inefficiency on the order of $300-500M/year 144 separate networks GC-wide 315,000 non-standardized desktops, >120 helpdesks 140 data centres, 120,000 servers We are not alone - other Governments, the Private Sector are acting Current Health of GC IT Infrastructure Status quo is not sustainable Opportunity - Grow IT Shared Services

10. The GC is adopting Service Orientation as a fundamental design principle Departments Departmental Applications Security and Business Continuity Access Enablers IT-SSO Data Centres Networks Access Devices

11. Part Three: A Governance Model for the Management of IT Policy

12. The Management of IT Framework Governance STRATEGY (act as one) MANAGEMENT ACCOUNTABILITY FRAMEWORK (MAF) • MIT • POLICY • Governance Directive • Tech & App Strategy Directive T & AS G Key Performance Indicator (KPI) MEASUREMENTS

13. Scope: Strategic Decisions • The IT decisions to be made are related to the Directive on Technology and Application Strategies and the defined end state of services: aligned, shared, common: • Data Centre • Network • Desktop • Application Development • IT Strategic Planning • IT Management Process

14. Developed an engagement strategy, which included the list of stakeholders for consultation and engagement, 17 departments participated (CIOs) Developed and conducted three(3) workshops to gain consensus from stakeholders Provided the summary of the general notes from each of the workshops Based on the analysis and summary workshop reports, refined the government‑wide IT governance model for input into a Treasury Board policy instrument. Developed an implementation plan for the introduction of the renewed IT governance model. Presentations to senior management committees on the findings and results. Approach

15. The relationship between Governance and an Organization 1 • Decisions are at the core of governance, as • which decisions are to be made; • where decision will be opened and closed; • how decisions are reached; and • who will be accountable for results Decision Rights & Accountability Structure Governance 1 2 Structure defines the composition of the bodies that make or execute on joint decisions. 2 Relationship Management 3 Relationship Management informs how parties work together 3

16. Decision Rights and Accountability Which: Data Centre, Network, Desktop, Application Development, IT Strategic Planning, IT Management Process Where: Opened and closed with the CIO of TBS, based on the recommendations of the spring planning outcomes How: Recommended by CIOC, based on recommendations from working groups Who: CIO of TBS 1 Decision Rights & Accountability Structure Governance 1 2 2 Relationship Management 3 3

17. Governance Structure Which: Data Centre, Network, Desktop, Application Development, IT Strategic Planning, IT Management Process Where: Opened and closed with the CIO of TBS, based on the recommendations of the spring planning outcomes How: Recommended by CIOC, based on recommendations from working groups Who: CIO of TBS 1 Decision Rights & Accountability Structure Governance 1 2 2 Relationship Management CIO Council will be the central part of the governance Structure; it will recommend the agenda, recommend decisions and charter the working groups. 3 3

18. Relationship Management Which: Data Centre, Network, Desktop, Application Development, IT Strategic Planning, IT Management Process Where: Opened and closed with the CIO of TBS, based on the recommendations of the spring planning outcomes How: Recommended by CIOC, based on recommendations from working groups Who: CIO of TBS 1 Decision Rights & Accountability Structure Governance 1 2 CIO Council will be the central part of the governance Structure; it will recommend the agenda, recommend decisions and charter the working groups. 2 Relationship Management 3 Proposed planning cycle, agenda set yearly though this cycle, affirmed by the CIO of TBS 3

19. For decisions where CIO of TBS is the leader and accountable Deputy Ministers (DMs) are accountable and responsible to participate in the process and to understand the process DM’s IT person is accountable for their department having an IT governance, adhering to the Government of Canada Directive on Technology and Applications Strategies, and participating in the CIO community and MAF CIOC provides the leadership, consults with the community, as appropriate, and provides recommendations to TBS CIO CIOs and Heads of IT are accountable for ensuring that decisions made at the departmental level are in line with the GoC and departmental Enterprise Architectures. Strategic Decisions - Who is Accountable

20. CIO Council within the IT Planning Cycle CIO Council is integral to IT policy management and planning CIO Council Advisory Body for Community issues related to IT Policy For example : DCE, DCC, Network(IPV6) Provide insights and recommendations to the CIO of Canada Other Inputs • Eg., MAF results Evaluate Prioritize GoC IT Planning Cycle CIO Council Spring Plan Review Fall Plan Assess CIO Council Sets direction and feeds into • TBS Priorities • MAF • Fiscal planning • Dept/Agency IT Plans Execute Access plan against tactical and strategic directions, and current community interests to develop new requirements, launch new subcommittees

21. Thank-you

22. Plan, Build, Run, Measure DEPT SILOS GC PROGRAM SCALE Climate Change Grants & Contributions EASD Common Admin Shared Services (CASS) BRIDGE OCG CPSA ETAS IT-SSO