V 4 Establish an Effective IT Steering Committee

V 4 Establish an Effective IT Steering Committee Have the right people making the right decisions to drive IT success. Info-Tech Research Group, Inc. is a global leader in providing IT research and advice. Info-Tech’s products and services combine actionable insight and relevant advice with ready-to-use tools and templates that cover the full spectrum of IT concerns. © 1997 -2016 Info-Tech Research Group Inc. Info-Tech Research Group 1

Our understanding of the problem This Research is Is Designed For: This Research Will Help You: üCIOs üIT Leaders üStructure an IT steering committee with the appropriate membership and responsibilities üDefine appropriate cadence around business involvement in IT decision making üDefine your IT steering committee processes, metrics, and timelines üObtain buy-in for IT steering committee participations üDefine the project prioritization criteria This Research Will Also Assist: This Research Will Help You: Them: üBusiness Partners üUnderstand the importance of IT governance and their role üIdentify and build the investment prioritization criteria Info-Tech Research Group 2

Executive Summary Situation Info-Tech Insight • An effective IT steering committee (ITSC) is one of the top predictors of 1. 88% of IT steering committees fail. The organizations that succeed have clearly defined responsibilities that are based on business needs. • value generated by IT, yet only 11% of CIOs believe their committees are effective. An effective steering committee ensures that the right people are involved in critical decision making to drive organizational value. Complication • Unfortunately, when CIOs do implement IT steering committees they • often lack the appropriate structure and processes to be effective. Due to the high profile of the IT steering committee membership, CIOs need to get this right – or their reputation is at risk. 2. Without a documented process your committee can’t execute on its responsibilities. Clearly define the flow of information to make your committee actionable. 3. Limit your headaches by holding your IT steering committee accountable for defining project prioritization criteria. Resolution Leverage Info-Tech’s process and deliverables to see dramatic improvements in your business satisfaction through an effective IT steering committee. This blueprint will provide three core customizable deliverables that you can use to launch or optimize your IT steering committee. These include: 1. IT Steering Committee Charter: Customizable charter complete with example purpose, goals, responsibilities, procedures, RACI, and processes. Use this template in combination with this blueprint to get a highly tailored committee. 2. IT Stakeholder Presentation: Use our customizable presentation guide to build understanding around the goals and purpose of the IT steering committee and generate support from your leadership team. 3. IT Steering Committee Project Prioritization Tool: Engage your IT steering committee participants in defining the project prioritization criteria. Use our template to track project prioritization and assess your portfolio. Info-Tech Research Group 3

IT Steering Committee Effective IT governance critical in driving business satisfaction with IT. Yet 88% of CIOs believe that their governance structure and processes are not effective. 1 The IT steering committee (ITSC) is the heart of the governance body and brings together critical organizational stakeholders to enable effective decision making. IT STEERING COMMITTEES HAVE 3 PRIMARY OBJECTIVES – TO IMPROVE: 1 Alignment IT steering committees drive IT and business strategy alignment by having business partners jointly accountable for the prioritization and selection of projects and investments within the context of IT capacity. 2 Accountability The ITSC facilitates the involvement and commitment of executive management through clearly defined roles and accountabilities for IT decisions in five critical areas: investments, projects, risk, services, and data. 3 Value Generation The ITSC is responsible for the ongoing evaluation of IT value and performance of IT services. The committee should define these standards and approve remediation plans when there is non-achievement. Everyone needs good IT, but no one wants to talk about it. Most CFOs would rather spend time with their inlaws than in an IT steering-committee meeting. But companies with good governance consistently outperform companies with bad. Which group do you want to be in? – Martha Heller, President, Heller Search Associates 1 Info-Tech Research Group Webinar Survey Info-Tech Research Group 4

An effective IT steering committee improves IT and business alignment and increases support for IT across the organization CEOs’ PERCEPTION OF IT AND BUSINESS ALIGNMENT 67% 47% of CIOs/CEOs are misaligned on the target role for IT. of CEOs believe that business goals are going unsupported by IT. 64% 28% of CEOs believe that improvement is required around IT’s understanding of business goals. of business leaders are supporters of their IT departments. A well devised IT steering committee ensures that core business partners are involved in critical decision making and that decisions are based on business goals – not who shouts the loudest. Leading to faster decision-making time, and better quality decisions and outcomes. Source: Info-Tech CIO/CEO Alignment data Info-Tech Research Group 5

Despite the benefits, 9 out of 10 steering committees are unsuccessful WHY DO IT STEERING COMMITTEES FAIL? 1 2 3 A lack of appetite for an IT steering committee from business partners An effective ITSC requires participation from core members of the organization’s leadership team. The challenge is that most business partners don’t understand the benefits of an ITSC and the responsibilities aren’t tailored to participants’ needs or interests. It’s the CIOs responsibility to make this case to stakeholders and right-size the committee responsibilities and membership. IT steering committees are given inappropriate responsibilities The IT steering committee is fundamentally about decision making; it’s not a working committee. CIOs struggle with clarifying these responsibilities on two fronts: either the responsibilities are too vague and there is no clear way to execute on them within a meeting, or responsibilities are too tactical and require knowledge that participants do not have. Responsibilities should determine who is on the ITSC, not the other way around. Lack of process around execution An ITSC is only valuable if members are able to successfully execute on the responsibilities. Without well defined processes it becomes nearly impossible for the ITSC to be actionable. As a result, participants lack the information they need to make critical decisions, agendas are unmet, and meetings are seen as a waste of time. Info-Tech Research Group 6

GOVERNANCE and ITSC and IT Management RELATIONSHIP BETWEEN STRATEGIC, TACTICAL, AND OPERATIONAL GROUPS Organizations often blur the line between governance and management, resulting in the business having say over the wrong things. Understand the differences and make sure both groups understand their role. The ITSC is the most senior body within the IT governance structure, involving key business executives and focusing on critical strategic decisions impacting the whole organization. Within a holistic governance structure, organizations may have additional committees that evaluate, direct, and monitor key decisions at a more tactical level and report into the ITSC. These committees require specialized knowledge and are implemented to meet specific organizational needs. Those operational committees may spark a tactical task force to act on specific needs. IT management is responsible for executing on, running, and monitoring strategic activities as determined by IT governance. This blueprint focuses exclusively on building the IT steering committee. For more information on IT governance see Info-Tech’s blueprint Tailor an IT Governance Plan to Fit Organizational Needs. Info-Tech Research Group 7

Info-Tech’s approach to optimizing IT governance uses five governance areas to bucket IT decisions 1 2 3 Governance of the IT Portfolio & Investments: ensures that funding and resources are systematically allocated to the priority projects that deliver value. IT GOVERNANCE AREAS Governance of Projects: ensures that IT projects deliver the expected value, and that the PM methodology is measured and effective. Governance of Risks: ensures the organization’s ability to assess and deliver IT projects and services with acceptable risk. 4 Governance of Services: ensures that IT delivers the required services at the acceptable performance levels. 5 Governance of Information and Data: ensures the appropriate classification and retention of data based on business need. Info-Tech Research Group 8

If these symptoms resonate with you, it might be time to invest in building an IT steering committee SIGNS YOU MAY NEED TO BUILD AN IT STEERING COMMITTEE As CIO I find that there is a lack of alignment between business and IT strategies. I’ve noticed that projects are thrown over the fence by stakeholders and IT is expected to comply. I’ve noticed that IT projects are not meeting target project metrics. I’ve struggled with a lack of accountability for decision making, especially by the business. I’ve noticed that the business does not understand the full cost of initiatives and projects. I don’t have the authority to say “no” when business requests come our way. We lack a standardized approach for prioritizing projects. IT has a bad reputation within the organization and I need a way to improve relationships. Business partners are unaware of how decisions are made around IT risks. Business partners don’t understand the full scope of IT responsibilities. There are no SLAs in place and no way to measure stakeholder satisfaction with IT. Info-Tech Research Group 9

Info-Tech’s approach to implementing an IT steering committee Info-Tech’s IT steering committee development blueprint will provide you with the required tools, templates, and deliverables to implement a right-sized committee that’s effective the first time. HOW WE CAN HELP ü Measure your business partner level of awareness and interest in the five IT governance areas, and target specific responsibilities for your steering committee based on need. ü Customize Info-Tech’s IT Steering Committee Charter Template to define and document the steering committee purpose, responsibilities, participation, and cadence. ü Build critical steering committee processes to enable information to flow into and out of the committee to ensure that the committee is able to execute on responsibilities. ü Customize Info-Tech’s IT Steering Committee Stakeholder Presentation template to make your first meeting a breeze, providing stakeholders with the information they need, with less than two hours of preparation time. ü Leverage our workshop guide and prioritization tools to facilitate a meeting with IT steering committee members to define the prioritization criteria for projects and investments and roll out a streamlined process. Info-Tech Research Group 10

Info-Tech’s Four- Phase Process 1 2 Build the Steering Committee Charter Define ITSC Processes 3 4 Build the Stakeholder Define the Presentation Prioritization Criteria KEY DELIVERABLES: ü IT Steering Committee Stakeholder Survey ü IT Steering Committee Charter • Purpose • Responsibilities • RACI • Procedures ü IT Steering Committee SIPOC (Suppliers, Inputs, Process, Outputs, Customers) ü IT Steering Committee Stakeholder Presentation template ü IT project prioritization facilitation guide ü Defined process frequency • Introduction ü IT Steering Committee Project Prioritization Tool • Survey outcomes ü Project Intake Form ü Defined governance metrics • ITSC goals • Responsibilities • Next steps Info-Tech Research Group 11

Leverage both COBIT and Info-Tech-defined metrics to evaluate the success of your program or project COBIT METRICS • INFO-TECH METRICS Alignment Survey Metrics: • Percent of enterprise strategic goals and requirements supported by strategic goals. Level of stakeholder satisfaction with scope of the planned portfolio of programs and services. Accountability • • Percent of executive management roles with clearly defined accountabilities for IT decisions. Value Generation • Level of stakeholder satisfaction and perceived value. • Number of business disruptions due to IT service incidents. Rate of execution of executive IT-related decisions. • Percent of business leaders who believe they understand how decisions are made in the five governance areas. • Percentage of business leaders who believe decision making involved the right people. Value of Customizable Deliverables: • Estimated time to build IT steering committee charter independently X cost of employee • Estimated time to build and generate customer stakeholder survey and generate reports X cost of employee • # of project interruptions due to new or unplanned projects Info-Tech Research Group 12

Overview CASE STUDY Industry Consumer Goods Source Interview SITUATION SOLUTION A newly hired CIO at a large consumer goods company inherited an IT department with low maturity from a her predecessor. Satisfaction with IT was very low across all business units and IT faced a lot of capacity constraints. The business saw IT as a bottleneck or red tape in terms of getting their projects approved and completed. The CIO established a new steering committee engaging senior members of each business unit. The roles of the committee members were clearly established in the new steering committee charter and business stakeholders were informed of the changes through presentations. The previous CIO had established a steering committee for a short time but it had a poorly established charter that did not involve all of the business units. Also the role and responsibilities of the steering committee were not clearly defined. This led the committee to be bogged down in politics. Due to the previous issues, the business wary of being involved in a new steering committee. In order to establish a new steering committee, the new CIO needed to navigate the bad reputation of the previous CIO. The importance of the committee was demonstrated through the new intake and prioritization process for projects. Business stakeholders were impressed with the new process and its transparency and IT was no longer seen as a bottleneck. RESULTS • Satisfaction with IT increased by 12% after establishing the committee and IT was no longer seen as red tape for completing projects • IT received approval to hire two more staff members to increase capacity • IT was able to augment service levels, allowing them to reinvest in innovative projects • Project prioritization process was streamlined Info-Tech Research Group 13

Use these icons to help direct you as you navigate this research Use these icons to help guide you through each step of the blueprint and direct you to content related to the recommended activities. This icon denotes a slide where a supporting Info-Tech tool or template will help you perform the activity or step associated with the slide. Refer to the supporting tool or template to get the best results and proceed to the next step of the project. This icon denotes a slide with an associated activity. The activity can be performed either as part of your project or with the support of Info-Tech team members, who will come onsite to facilitate a workshop for your organization. Info-Tech Research Group 14

Info-Tech offers various levels of support to best suit your needs DIY Toolkit “Our team has already made this critical project a priority, and we have the time and capability, but some guidance along the way would be helpful. ” Guided Implementation Workshop Consulting “Our team knows that we need to fix a process, but we need assistance to determine where to focus. Some check-ins along the way would help keep us on track. ” “We need to hit the ground running and get this project kicked off immediately. Our team has the ability to take this over once we get a framework and strategy in place. ” “Our team does not have the time or the knowledge to take this project on. We need assistance through the entirety of this project. ” Diagnostics and consistent frameworks used throughout all four options Info-Tech Research Group 15

Establish an Effective IT Steering Committee Build the Steering Committee Charter 1. 1 Survey Your Steering Committee Stakeholders 1. 2 Build Your ITSC Charter Define ITSC Processes 2. 1 Build a SIPOC 2. 2 Define Your ITSC Process Build the Stakeholder Presentation 3. 1 Customize the Stakeholder Presentation Define the Prioritization Criteria 4. 1 Establish your Prioritization Criteria 4. 2 Customize the Project Prioritization Tool 4. 3 Pilot Test Your New Prioritization Criteria Best-Practice Toolkit Launch your stakeholder survey Build and review your SIPOC Customize the presentation Review and select prioritization criteria Analyze the results of the survey Review your high-level steering committee processes Build a script for the presentation Review the Project Prioritization Tool Practice the presentation Review the results of the tool pilot test Build your new ITSC charter Guided Implementations Review your completed charter Module 1: Build a New ITSC Charter Module 2: Design Steering Committee Processes Module 3: Present the New Steering Committee to Stakeholders Module 4: Establish Project Prioritization Criteria Phase 1 Results: • Customized ITSC charter Phase 2 Results: • Completed SIPOC and steering committee processes Phase 3 Results: • Customized presentation deck and script Phase 4 Results: • Customized project prioritization tool Onsite Workshop Info-Tech Research Group 16

Workshop overview Deliverables Activities Contact your account representative or email Workshops@Info. Tech. com for more information. Workshop Day 1 Workshop Day 2 Workshop Day 3 Workshop Day 4 Workshop Day 5 Build the IT Steering Committee Define the ITSC Goals Define the ITSC Charter Define the ITSC Process Define Project Prioritization Criteria 1. 1 Launch stakeholder survey for business leaders 1. 2 Analyze results with an Info-Tech Advisor 1. 3 Identify opportunities and threats to successful IT steering committee implementation. 1. 4 Develop the fit-forpurpose approach 2. 1 Review the role of the IT steering committee 2. 2 Identify IT steering committee goals and objectives 2. 3 Conduct a SWOT analysis on the five governance areas 2. 4 Define the key responsibilities of the ITSC 2. 5 Define ITSC participation 3. 1 Build IT steering committee participant RACI 3. 2 Define your responsibility cadence and agendas 3. 3 Develop IT steering committee procedures 3. 4 Define your IT steering committee purpose statement and goals 4. 1 Define your high-level IT steering committee processes 4. 2 Conduct scenario testing on key processes, establish ITSC metrics 4. 3 Build your ITSC stakeholder presentation 4. 4 Manage potential objections 5. 1 Create prioritization criteria 5. 2 Customize the Project Prioritization Tool 5. 3 Pilot test the tool 5. 4 Define action plan and next steps 1. Report on business leader governance priorities and awareness 2. Refined workshop agenda 1. IT steering committee priorities identified 2. IT steering committee key responsibilities and participants identified 1. IT steering committee charter: procedures, agenda, and RACI 2. Defined purpose statement and goals 1. IT steering committee SIPOC maps 2. Refined stakeholder presentation 1. Project Prioritization Tool 2. Action plan Info-Tech Research Group 17