Governance Structure for Alignment

Governance Structure for Alignment

Petter Gottschalk (Norwegian School of Management, Norway) and Hans Solli-Saether (Norwegian School of Management, Norway)
DOI: 10.4018/978-1-60566-648-8.ch008
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Abstract

Given the political nature of back-office integration, should cross-organizational back-office integration be seen as a command and control challenge or a process management challenge? This question was phrased by Bekkers (2007), who found that comparative case studies primarily have shown that integration is the outcome of a process, in which offices have been able to create a shared understanding about the necessity of integration and in which conflicting rationalities, with their own core values, internal logic and legitimacy, have to be weighted against each other. Bekkers (2007) argues that it is a goal-searching, incremental process, which should anticipate a changing political agenda in order to gain support. Understanding is reached through the ongoing recognition of the interdependencies among back-of- fices, and as a result of a focus on the content of the problem and not on jurisdictions and costs. Trust and political and legal pressure are the drivers that facilitate this process. Co-ordination in terms of governance has to consider a mix of conflict and co-operation.
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1. Governance Structure For Alignment

Given the political nature of back-office integration, should cross-organizational back-office integration be seen as a command and control challenge or a process management challenge? This question was phrased by Bekkers (2007), who found that comparative case studies primarily have shown that integration is the outcome of a process, in which offices have been able to create a shared understanding about the necessity of integration and in which conflicting rationalities, with their own core values, internal logic and legitimacy, have to be weighed against each other. Bekkers (2007) argues that it is a goal-searching, incremental process, which should anticipate a changing political agenda in order to gain support. Understanding is reached through the ongoing recognition of the interdependencies among back-offices, and as a result of a focus on the content of the problem and not on jurisdictions and costs. Trust and political and legal pressure are the drivers that facilitate this process. Co-ordination in terms of governance has to consider a mix of conflict and co-operation.

We start this chapter trying to answer what is IT governance. We take look at the broader issue of organizational governance and contracts in governance, and we list reasons why IT governance is important. Other topics covered are such as decision makers and decision rights, categories of decisions, stakeholders and distribution of decision rights.

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