The idea of this blog is to help in understanding the definition of governance and simplify it as much as possible for the ease of learning for the purpose of ISCA examination.
What is Governance? (as given in the study material)
- This term is derived from Greek verb meaning "to steer".
-A governance system typically refers to all the means and mechanisms that will enable multiple stakeholders in an enterprise to have organized mechanism for evaluating options, setting direction and monitoring compliance and performance in order to satisfy specific enterprise objectives.
Now, lets look at each term carefully.
Steer: It means to guide or control the movement.
So Governance actually means to guide or control the movement of something.
Means: It means methods.
Organized: Systematic
Mechanisms: Established process.
Evaluating : Assess.
Monitoring: Maintain regular check.
Compliance: Action
The difference between Evaluating and Monitoring is that data and information are collected periodically in case of monitoring e.g. for a certain period of time, a week, month.
In case of evaluating the process of collection of data and information is happening continuously.
Now what is the meaning of stakeholders?
These are people who have an interest or concern in business...proprietors, management,
So governance is basically all the methods and processes which will help the management to have systematic processes for assessing various alternatives, setting direction and maintaining regular check on the actions of the organization to satisfy the objectives of the enterprise.
So basically, the governance is to steer the organization to achieve specific objectives of the enterprise.
So lets sum this important definition again as given in the institute module:
- All the means and mechanisms
- That will enable multiple stakeholders in an enterprise
- to have an organized mechanism for:
- evaluating options,
- setting objectives and
- monitoring compliance and performance
- in order to satisfy specific enterprise objectives.
Benefits of Governance:
- Achieving enterprise objectives by ensuring that each element of the mission and strategy are assigned and managed with a clearly understood and transparent decision rights and accountability framework:
Simplifying it:
- Achieving enterprise objectives
- How?
- by making certain (ensuring) that
- each element of the mission and strategy : element here means part which includes people working for the organization, everything from IT to marketing departments. These are the parts of the mission and strategy i.e. objectives of the enterprise
- are assigned and managed: they are allotted properly and managed
- with a clearly understood and transparent decision rights: this talks about the rights of those elements
- and accountability framework: this talks about the responsibilities of those elements.
So basically it means that enterprise objectives are to be achieved
By ensuring that each part of the organization are allocated the appropriate job i.e what one is best at
and those are then managed with clearly understood and transparent decision rights i.e. there should not be any confusion regarding their rights
accountability framework i.e. along with their rights they should be held responsible also.
2. Defining and encouraging desirable behavior in the use of IT and in the execution of IT outsourcing arrangements:
Simplifying it:
This basically concerns with the IT part. It means there should be definite behavior which is to be set in the use of Information Technology to insure that IT is secure from intrusion.
And if any part of the IT is outsourced i.e. there is any 3rd party arrangement that should also be defined properly; meaning thereby that there should be proper agreement for any outsourcing arrangement.
3. Implementing and integrating the desired business process into the enterprise:
Desired business process means the processes which the management thinks best in terms of its utility and finances. So this point basically tries to say that governance helps in including all the business processes that management wants in the enterprise.
4. Providing stability and overcoming the limitations of organizational structure:
Organizational structure basically means how the organization is made in terms of command. Who is to be reported and what is the duty and responsibility of each officer of the company?
Governance helps in making the best organizational structure and eliminates any problem in it. There may be issues regarding unity of command or responsibilities of various individuals.
5. Improving customer, business and internal relationships and satisfaction, and reducing internal territorial strife by formally integrating the customers, business units, and external IT providers into a holistic IT governance framework:
So it basically talks about adjusting customers, various branches of the business and external companies that provide IT help to the organization into some set i.e. into some chart.
So, governance helps in simplifying these things by arranging them in some proper order.
6. Enabling the effective and strategically aligned decision making for the IT principles that define the role of IT, IT Architecture, IT Infrastructure, Application Portfolio and Frameworks, Service Portfolio, Information and competency portfolios and IT investment and Prioritization:
Governance helps in setting the role of IT in the enterprise; how much investment should be made in it and what information in proper quantity should be stored in IT.
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1.Achieving enterprise objectives by ensuring that each element of
the mission and strategy are assigned and managed with a clearly understood
and transparent decision rights and accountability framework
|
2. Defining and encouraging desirable behavior in the use of IT and
in the execution of IT outsourcing
arrangements.
|
3. Implementing and integrating the desired business processes into
the enterprise.
|
4. Providing stability and overcoming the limitations of organizational structure.
|
5 Improving customer, business and internal relationships and
satisfaction and reducing internal territorial strife by formally
integrating the customers, business units, and external IT providers into a
holistic IT governance framework.
|
6. Enabling effective and strategically aligned decision making for
the IT principles that define the role of IT, IT architecture, IT
infrastructure, Application Portfolio and Frameworks, Service Portfolio,
Information and competency Portfolios and IT investment and Prioritization
|
