Week 9 Monday, March 27

1. Week 9Monday, March 27 Organizational Focus: User vs. IT Domination Leadership and IT Governance

2. User Dominance vs. IT Dominance • Tensions between business users of IT and IT staff • Innovation (introduction of IT) and control (quality assurance) issues • Where should innovation begin? • Do the IT applications comply with organizational processes (e.g., accounting practices)? • Fulfilling immediate needs and ensuring long-term standards • Are end-user developed IT applications and investments compatible to other organizational resources? • Should adherence to long-term goals override immediate needs (e.g., Maginot line thinking)?

3. Four Difference Perspectives • From centralized, IT-driven innovation to decentralized end-user driven innovation (“lighting fires” – Gary Brooks, VSP) • End-user driven innovation over IT department protests • From decentralized, end-user driven innovation to centralized IT management (e.g., Sutter Health in the mid-1990s) • From decentralized, end-user driven innovation to unexpected centralized innovation (e.g., Sutter Health in the 2000s)

4. Drivers Toward User Dominance • Pent-up user demand • Need for staff flexibility • Growth in the IT services industry • User’s desire to control their own destiny • Fit with the organization

5. Drivers Toward a Centralized IT Structure • Staff professionalism • Standard setting and ensuring system maintainability • Envisioning possibilities and determining feasibility • Corporate data management • Cost estimation and analysis

6. Manage-ment IT Domain User Domain Coordination SharingResponsibilities

7. IT Responsibilities • Develop and manage long-term architectural plan and ensure new projects fit with the plan • Develop process to establish, maintain and evolve company standards • Establish procedures to consider outsourcing of proposed projects • Inventory of installed and planned systems and services • Identify career paths of IT staff • Provide users with better understanding of IT costs • Ensure compatibility of new acquisitions

8. IT Responsibilities • Identify and maintain relationships with preferred suppliers • Educate users of benefits and pitfalls of new technologies • Periodically review legacy systems

9. User Responsibilities • Get the “big picture” of IT and the organization • Realistically estimate costs of deploying IT • Get user support (buy-in) of new projects • Match staffing to relevancy of IT to business strategy • Audit system reliability standards, communications services performance, and security procedures • Get involved with planning

10. Management Support • Balance IT and business user dominance • Ensure comprehensive corporate IT strategy • Manage inventory of hardware and software systems and services • Establish standards for acquisitions, development and IT systems operations • Facilitate transfer of technology throughout the organization • Encourage technical experimentation • Planning and control link IT to company’s goals

11. Strategic Grid User-driven vs. IT-driven High Strategic Strategic IT plan, initiatives Factory Operational IT IT Impact on Business Operations Support Basic elements Turnaround Gradual adoption Low IT Impact on Strategy Low High

12. Leadership and Governance:Management vs. Leadership • Managers… • Managers have subordinates • Managers have a position of authority vested in them by the company, and their subordinates work for them and largely do as they are told • Managers are paid to get things done • Due to their backgrounds, managers generally like to run a “happy ship” http://changingminds.org/disciplines/leadership/articles/manager_leader.htm

13. Leadership and Governance:Management vs. Leadership • Leaders… • Leaders have followers • Appeal to followers, showing how following them will lead to their (followers’) hearts' desire • Always good with people, and have quiet styles that give credit to others (and takes blame on themselves) • Are very effective at creating the loyalty that great leaders engender • Appeared as risk-seeking, although they are not blind thrill-seekers http://changingminds.org/disciplines/leadership/articles/manager_leader.htm

14. http://changingminds.org/disciplines/leadership/articles/manager_leader.htmhttp://changingminds.org/disciplines/leadership/articles/manager_leader.htm

15. Managers vs. Leaders • The manager administers; the leader innovates • The manager maintains; the leader develops • The manager accepts reality; the leader investigates it • The manager focuses on systems and structures; the leader focuses on people • The manager relies on control; the leader inspires trust • The manager has a short-range view; the leader has a long-range perspective • The manager asks how and when; the leader asks what and why • The manager has his or her eye always on the bottom line; the leader has his or her eye on the horizon • The manager imitates; the leader originates • The manager accepts the status quo; the leader challenges it • The manager is the classic good soldier; the leader is his or her own person http://www.telusplanet.net/public/pdcoutts/leadership/LdrVsMngt.htm

16. Three Rules of Leadership • Rule 1: You must have or develop the skill, and take the time to find out what is in the follower's mind concerning his situation and how he perceives you • Know what is perceives as negative • Create and manage a system of feedback loops that keep people in permanent touch with follower mindset • Rule 2: To be a powerful leader, you must present your "leaderself" to others, rather than your natural self • Do exactly the leadership behavior called for by the situation • Rule 3: To create an effective leaderself, you must operate from self-awareness rather than from an automatic mind • Focus on the “good of the whole” http://www.businessleader.com/bl/sep97/leadrshp.html

17. Four Competencies of Leadership • Know ourselves very, very well • Recognizing that all of us are actually three people in one: what we are, what we think we are, and what others think we are • Know our people—thoroughly • Be able to motivate people with the right ideas, the right work, and the right methods or techniques • Highly competent on the technical and people sides of our job if we intend to be successful • Know the laws and principles of leadership and management as they relate to leading ourselves and people • If you want to play the game, you've got to know the rules http://www.leadershiphelp.com/introduction.cfm?show=4

18. Four Key Principles of LeadershipMark Willes, former COO of General Mills • Lead • Set high standards • Empower others • Accountability • Kindle passion • “People will work for a living but they'll die for a cause”

19. IT Governance: Definitions • A generic term which describes the ways in which rights and responsibilities are shared between the various corporate participants, especially the management and the shareholders.

20. IT Governance: Definitions • The relationship between the shareholders, directors and management of a company, as defined by the corporate charter, bylaws, formal policy and rule of law.

21. IT Governance: Definitions • Corporate governance is the method by which a corporation is directed, administered or controlled. It includes the laws and customs affecting that direction, as well as the goals for which it is governed. The principal participants are the shareholders, management and the board of directors. Other participants include regulators, employees, suppliers, partners, customers, constituents (for elected bodies) and the general community.

22. IT Governance: Definitions • The term "governance" refers to the decision-making processes in the administration of an organization. • Different nations and different organizations within a nation may approach governance concerns (who makes decisions? who pays the bills?) in very different ways. 

23. IT Governance: Definitions • Gartner defines Governance as the “assignment of decision rights and the accountability framework to encourage desirable behavior in the use of IT.” • In plain English, IT Governance is the rules and regulations under which an IT department functions. It is a mechanism, put in place to ensure compliance with those rules and regulations.

24. IT Governance • Involves… • Policies and procedures that specify and guide decision making and the actions of people • Specifying the responsibilities of management, employees and shareholders (stakeholders), and decision rights • Administering the policies and procedures in daily operations • Adhering to the policies and procedure in short- and long-term planning