IT Governance Framework:

Challenges for the

21st Century Government Leader
DonnaS.Canestraro,MS,PMP
September22,2015

NationalStateAuditorsAssociation(NSAA)ITConference
Hartford,CT
Our Approach
Foster public sector innovation,
enhance capability, generate
public value, and support good
governance.
Policy
Government University

Business
Management Technology
Research-Practice
Partnerships
Important
Practitioner public Academic skill
skill problems & knowledge
& knowledge

Builds capability Contributes to

research

Enhance executive
& university
education
 Topics
WhatisITGovernance?
Definitionalframetogroundus
Andwoven
VariousflavorsofITgovernance
throughoutwill
ComponentsofITgovernance bestoriesfrom
Whyisthissohardtodo? ourwork
Howtoaddressthecomplexity?
Howdoyouassessthevalue?
HowdoesitimpactyourworkasyouauditIT
initiativesinyourstate?
So what is IT Governance?
What is Governance?

Theactionormanorof
governing.
IT Governance
...isaboutensuringthatstategovernmentiseffectively
usinginformationtechnologyinalllinesofbusinessand
leveragingcapabilitiesacrossstategovernment
appropriately,tonotonlyavoidunnecessaryor
redundantinvestments,buttoenhanceappropriatecross
boundaryinteroperability.

Thetermappropriateisusedbecauseinmanycases
stategovernmenthasexistingstatutoryconstraintsand
boundingthatcanoftenlimitaswellasempowerproper
governance.
Source:NASCIO
IT Governance

ITgovernance(ITG)isdefinedasthe
PROCESSESthatensuretheeffectiveand
efficientuseofITinenablinganorganizationto
achieveitsgoals.
http://www.gartner.com/itglossary/itgovernance
Two Widely Quoted Definition
ITGovernanceisastructuredwaytoidentifynot
thedecisionstobemadebutthestructurethat
allowsITdecisionstobemadewithin.
PeterWeillandJeanneRoss

ITGovernanceisthearrangementofauthority
patternsoverITactivitiesacrossanorganization.
V.SambamurthyandR.W.Zmud

14
To expand on this.
ITGovernancespecifiesthedecisions,the
rights,andtheaccountabilityframeworkto
encouragedesirablebehaviorintheuseofIT.
ITGovernanceanswersthequestions:
Whatdecisionsmustbemade?
Whoshouldmakethesedecisions?
Howwilldecisionsbemade?
Whatistheprocessformonitoringresults?
Weill&Ross
Components of Governance
Scope
Organizationalstructure
Authority
Membersrolesandresponsibilities
Process
 Scope
Thescopeofgovernanceatanyparticularlevelrefersto
therangeofissuescoveredbytheauthorityofa
governancestructure.

Awidescopeofgovernancewouldincludemost,ifnot
all,ofthepossibleITissuesinaparticularsetting,i.e.,
procurement,standards,architecture,policies,business
ITalignment.

Amorenarrowonemightfocussolelyonstandards
developmentorprocurementspecifically.
Structure
Structurereferstothebodies,committees,
groupsthathavetheauthorityandprocess
controlarrangementsinagovernment
setting.

Differentkindsormodelsofgovernancecan
existatthesamegovernmentlevel.IT
governanceattheprovincelevelcanmeana
clusterofagenciesorallprovincial
agencies. 18
 NYS Circa 2008
CS
OCIO
CIO Council IT Investment CSCIC
Board

OFT
? OGS

DOCS ATP OSC ?

DCJS+ IJAB DOB
NYS
Procurement
Service Grp.
?
State FMS
Police WCB
Parole
OCFS DOL ? Canal
Corp.
? GOER ESHSAB DOH
Thruway

OTDA DOH
 NYS Circa 2008
CS
OCIO
CIO Council IT Investment CSCIC
Board

OFT
? The Big e OGS

DOCS ATP OSC ?

DCJS+ IJAB DOB
NYS
Procurement
Service Grp.
?
State FMS
Police WCB
Parole
OCFS DOL ? Canal
Corp.
? GOER ESHSAB DOH
Thruway
Little es DOH
OTDA
Structure: Coordination Mechanisms

Externalcommittees,councils,andboards
OutsidethecontrolofthestateIToffice

EnterpriseorientedunitswithinthestateIToffice
Responsibleforlookingacrossthestatefor
opportunitiestobenefitfromanenterpriseapproachto
IT.
 Structure: Coordination Mechanisms

CommunitiesofPractice(CoP)
Groupsformedtosolveproblemsrelevanttothe
community.Maybeformalizedwithinthestates
governancestructureorinformalandpossibly
unreported.

Agencyliaisonunits
Elicittheneedsofthestateagencies,maintainsliaisons
witheachstateagencyoradomainlevelclustersof
agencies.
 Authority

Authorityarrangementsidentifythelegitimate
abilityofpersonsororganizationalunitsto
controlhowpower,rights,roles,and
responsibilitiesaredistributed.

Thewaytheauthorityarrangementsare
linkedisimportant.Theycanbemore
hierarchicalormorenetworklikeandoften
aresuggestiveofhowauthorityisdistributed.
Authority arrangements
Centralized
AllauthorityanddecisionmakingpowerinoneIT
office;allITpersonnelemployedinthatIToffice.
Decentralized
Allauthorityanddecisionmakingpowerdistributed
amongindividuallowerlevelagencies.
Federal/hybrid
Authorityoverdecisionmakingdistributedamong
centralorganizationandlowerlevelunits.
Authority arrangements
Strongfederal/hybrid
Formalcontrolmechanisms(projectreview,
management,andoversightauthority,managementof
ITbudgets)liewiththestateITofficeorexternal
coordinationmechanism.
Weakfederal/hybrid
ControldistributedacrosstheStateCIO,statelevelIT
office,coordinatingmechanisms,andindividual
agencies.
StateITofficeorexternalcoordinatingmechanismlack
fullauthoritytoenforcepolicies.
New York State pre 2012

50+ Data Centers 53+ IT Help 87% Legacy 53% on Siloed E-mail
& Server Closets Desks Phone Lines

72% of Large Projects 61% of Project Spend on 14% of Workforce Staff-

Span 5-22 Years Consultants Aug Consultants

The States IT environment is too complex, too difficult to maintain, and increasingly difficult
to secure.
 New York State Transformation 2012
Work Horizontally Across Agencies

Agency A Agency B Agency C

Procurement
Realestate
Core Core Core BusinessServices
Functions Functions Functions Fleet
GrantsReform
LearningManagement
Enterprise Shared Services System

InformationTechnology
Services
Elicensing
Common Common Common
Callcenters
Functions Functions Functions
New York State Transformation 2012
Current IT Future IT
Environment Environment

Tier 3 Data Center Consolidated Helpdesk Converged Network NYSeMail (Cloud)

Service & DR Service

Enterprise Identity Enterprise Data Enterprise Document Standard State-

Management Management Management wide Portal

The result is a more efficient, open and responsive New York State
Government
Members and Roles and
Responsibilities
Memberswhoarethemembersof
thegovernancestructure?
Externalcommittees,councils,and
boards
CommunitiesofPractice(CoP)
Agencystakeholders
RolesandResponsibilitieswhat
aretheirspecificrolesand
responsibilities?
Process
Whoconvenesthemeetings?
Whatdotheydointhesemeetings?
WhattypeofprocessistheGovernance
Bodyresponsiblefor?
Implementation
Coordination
Decisionmaking
2008 Environmental Scan
California Michigan
Florida Minnesota
Kansas Pennsylvania
Kentucky NorthCarolina
Maine Virginia
What we learned ...
Theearlyfocusofmoststateswason
costsavings
newstatewideprocurementandIT
consolidationefforts.
Throughuseitbecameclearthis
focuswasinsufficienttomeetthe
goalsofmorebroadlybased
enterpriseITgovernancegoals.
What we learned ...
Mostareusingamixtureofframeworks
andstructures.
MosthadcentralITofficessome
providedITservicessupport,development
andmanagementandothersprovidedboth
servicesandpolicyandplanning.
Mostchosehybrid/federalstructure.
What we learned ...
Formalizedstructureswithinstatesweresimilar
Mosthadadvisoryboardsofsomesort.
Mostvariationwerefoundincomposition,or
placementwithinthehierarchyandauthority.

Manyusecoordinationmechanismstohelp
supporttheirITgovernance.
Externalcommittees,councils,andboards
Enterpriseorientedoffices,divisionsorunites
Communitiesofpractices(thosethatcometogether
tosolveaproblemrelevanttothecommunity)
AgencyliaisonswithincentralITgovernancemodel
Critical Success Factors

Needstobeflexible
Acknowledgeandrespecttotheagencies
perspective
Cleardelineationofroles,responsibilities,and
decisionmakingmechanisms
Establishmeasurementprocesses
Needstobuildcapacityandcapabilityatseveral
levels
IT Governance:
in the eye of the beholder
Why is it so hard?
 The Government Innovation
Context
Technology
10,000 mph

Organization &
management Public policies
1000 mph 10 mph
Systems thinking is . . . seeing
wholes . . . seeing Interconnectedness
interrelationships rather than and Context Matter
things, seeing patterns of
change rather than static
snapshots.. . . . systems thinking
is a sensibility
for the subtle
interconnectedness
that gives living
systems their unique
character.
Peter Senge 5th Discipline
 Layers of complexity
Policy, program &
Organizational economic context
setting

Work processes &

Tools
practices
What do we know
Todaysgovernmentleadersandmanagersarefaced
withWickedandTangledproblemsonadailybasis.
Citizensdemandsforservicescontinuetogrow.
ITresourcesandbudgetsarecontinuallyshrinking
ITchoicesareamongthemostcomplexand
expensivedecisionsmadebygovernmentleaders
today
 Wicked Problems
Broadandvaguesocietalchallenges,suchas
brokenurbanneighborhoodsorreforming
publiceducation.
Unstructured,crosscuttingpolicyareas,
relentlessproblems.
Littleconsensusexistsabouthowtodefinethem,
causeandeffectareunclear,andattemptstosolve
themoftencausethemtomorphintodifferent
problems.
WeberandKhademian(2008)
Wicked Problems
Associatedwithmultiplediverse
stakeholders,highlevelsof
interdependence,competingvalues,and
socialandpoliticalcomplexity.
Theycansometimesbemitigated,butthey
areneverfullyresolved.
WeberandKhademian(2008)
 Tangled Problems
Fallinthemiddlegroundofacontinuumof
complexityandmanageability,betweenthose
thatareroutineandwellunderstoodatone
endandwickedproblemsattheother.
FromNeedtoKnowtoNeedtoShareTangledProblems,InformationBoundariesand
theBuildingofKnowledgeNetworks.S.Dawes,ACresswell,T.Pardo
https://www.ctg.albany.edu/publications/journals/par_knowledgenetworks_may09
Tangled Problems
Plaguetheinterconnectedmissionsand
activitiesoforganizationsoperatinginthe
samepolicydomainsuchaschildwelfareor
cityplanning.

Theycancomeaboutasaresultofthe
unintendedconsequencesofinteractions
acrossdifferentpolicydomainsor
professionalperspectives.
How do we address this
complexity?
Identifying the gap
Thesekindofproblemsrequireakindofcross
unit,crossagency,andcrosssectoralapproach
tomanagementthatis
illsuitedtoconventionalbureaucraticstructures,
perceivedasriskytoleadersandadministrators
withinthem,and
oftenalieninitsneedsforcooperationina
Madisoniansystempredicatedoncompetition
ratherthancooperation.
Wilson1989
Changing landscape
Neworganizationalformsandinteroperability
emergingascentraltosolutionstrategies.
Newpoliticalandprogrampriorities
Transparency
Integratedservicedelivery
Publicvalue
Regionalandglobalization
Andmore
Complexity Challenges

Embeddedness
Risk
Differencesamongprofessionsandroles
Centralizedvs.decentralizedvs.distributed
waysofworking
Management Challenges

Understandingandmanagingcomplexity
Assumptionsthatsimplifybutarewrong
Contraryincentives
Competingvalues
Unrealisticgoals,timeframes,andfunding
 Complexity Matrix
Program Enterprise
Specific Capacity
Problem-solving Building
Inter-governmental

Inter-organizational

Organizational
Assessing Value through the
Public Value Framework
 The concept of public value
is not new
Whatisvaluableorgoodforsociety?
Whatistheroleofgovernmentinpromoting
thegoodofsociety?
Howtoensurethatvalueiscreatedand
deliveredbygovernmentactionorpolicy?
 Basic value-oriented questions
Valueforwhom?
Whatkindofvalue
Whatdoesittaketoofferthatvalue?
Whattobeneficiariesneedtohave/be/doin
ordertoderivethevalue?
Howcanthevaluebeassessed?
Value based on interests: What level?

PersonalWhatsgoodforme?
InterestgroupsWhatsgoodformygroup?
OrganizationalorinstitutionalWhatsgood
formytown?State?Organization?Employer?
Church?
SocietalWhatsgoodforallofus?
Public Value is a social concept
Valueintermsofindividualandgroup
intereststhereisnoabsolutevalue
Seldomfullagreementabouthowtoassess
valueacrosscommunitiesorjurisdictions
Individualinterestslinktoinstitutionaland
governmentalformsconsiderhealthcare
reform,guncontrol,immigration,etc.
Government: Many Things to Many People
 A common view of public
returns
The
Investment

Good
Good
things
things
happen
happen

A Better
World
Need for a New Framework
Forawaytorecognizemany,oftencompeting
notionsofvalue
Forlinkstoanexpandedinvestmentrationale
forgovernment
Mustincorporateunderstandingstakeholder
interestsandvaluecreatingmechanisms
Provideamorecomprehensivemodeland
results,beyondfinancialandeconomicmodels
 Core Public Value Concepts
Two major kinds of public value:
The value that results from delivering specific
benefits directly to persons or groups
The value to the public that results from improving
the government as a public asset

The public point of view:

Assessing public returns should reveal value in
terms of stakeholder interests
 Economic Value Social Value
income, asset values, family or community
liabilities, entitlements, relationships, social
risks to these mobility, status, identity

Quality of Life
Political Value Security, health,
personal or corporate recreation, personal
influence on liberty
Public Value Types
government &
politics

Strategic Value Ideological Value

economic or political alignment of beliefs,
advantage or moral or ethical
Stewardship Value
opportunities, goals, values with
publics view of
resources for innovation government actions
government officials as
or planning or outcomes
faithful stewards
Where does the value come from?
Value Generators

Increasesinefficiency

Increasesineffectiveness

Enablement

Intrinsicenhancements
 Value Generators
A Stakeholders Perspective
Efficiency:
Obtainingincreasedoutputsorgoalattainmentwiththesameresources,orobtainingthe
sameoutputsorgoalswithlowerresourceconsumption.
Effectiveness
Improvementsinthequalityand/orquantityofprogramresultsorotheroutputsof
governmentperformance.
Intrinsicenhancements
Changesintheenvironmentorcircumstancesofastakeholderthatarevaluedfortheirown
sake.
Transparency
Accesstoinformationabouttheactionsofgovernmentofficialsoroperationofgovernment
programsthatenhancesaccountabilityorinfluenceongovernment.
Participation
Frequencyandintensityofdirectcitizensinvolvementindecisionmakingaboutor
operationofgovernmentprogramsorinselectionoforactionsofofficials.
Collaboration
Frequencyordurationofactivitiesinwhichmorethanonesetofstakeholdersshare
responsibilityorauthorityfordecisionsaboutoperation,policies,oractionsofgovernment.
 A Portfolio View
Questions of interest
Bystakeholdergroup.
Whoisimpactedbytheseinitiatives?Howareimpactsdistributed?
Areweservingourmostimportantconstituencies?Therightmixof
stakeholders?

Bypublicvaluetype.
Doesourportfolioincludeallpublicvaluetypesdesired?Attherightlevels?
Arewesatisfiedwiththebalanceofvalueintheportfolio?Whatsmissing?

Byagencymission,goals,andcapabilities.
Doesportfoliomeetouragency'sstrategicinterestsandmission?
Arewemaximizingourcurrentcapabilitiesandtactics?
Isthevaluecreatedalignedwithouragency'smission?
Doestheportfoliobalanceattentionacrossstakeholdersandinterests?
Isthereabalanceintypesandnumberofinitiativeswithinprogramsacross
theagency?
Public Value
PublicROIisameasureofthedeliveryofspecificvaluetothe
peopleandtheimprovementofthevalueofgovernmentitselfasa
publicasset.

AdvancingReturnonInvestmentAnalysis
forGovernmentIT:APublicValueFramework
The questions of interest
Whatvaluemustbecreatedtomakethe
enhancementofenterpriseITgovernance
worthwhile?
Whatkindofchangeswillbenecessaryto
deliverthisvalue?
Dowehavethecapabilitynecessaryto
implementandsustainthesechanges?
So, how does this translate to
your work as you audit IT
initiatives in your state?
A Closing Thought On People
WhoSaysElephantsCantDance

Icametosee,inmytimeatIBM,thatcultureisnt
oneaspectofthegameitisthegame

Intheend,anorganizationisnothingmorethanthe
collectivecapacityofitspeopletocreatevalue

LouisV.Gerstner,jr.
WhoSaysElephantsCantDance(p.182)
Thank you

www.ctg.albany.edu
dcanestr@ctg.albany.edu
Twitter @DonnaCanestraro