Effectiveness of Information Technology Governance: Perceptions of Board Directors and Senior Managers

Abstract

IT governance is viewed as a managerial innovation, which responds to the needs of strong leadership, strategic direction, and control from the highest level within an organization. In today’s business world, most organizations depend on information technology (IT) for their day-to-day activities and attainment towards their future business strategies. However, despite improved project management, according to KPMG the track record of IT initiatives in many organizations is not strong, and many fail—particularly when measured against the outcomes they were intended to produce. Recent studies have found “an IT attention deficit” at board level, despite calls for directors to consider a wide range of IT matters including governance. This chapter examines practices and frameworks for effective IT governance in industry and business settings. Utilizing a multi-method research approach comprised of survey and interview techniques, 20 board directors’ and senior mangers’ perceptions of IT governance and management were sought and analyzed. The findings show there is a need and opportunity for improvement in IT governance and that in most organizations, Australian Standard AS8015-2005—provides a sound foundation for such improvement.