Chapter 8. Direction and Control

There has been an unfortunate perception for a long time in many companies that IT somehow plays by a different set of rules than the rest of the business. At best, from an upper-level management perspective, it's regarded as an enigma; at worst, it's the proverbial redheaded stepchild. This outlook often diminishes the CIO's credibility with his or her peers, compounding IT's perennial struggle to demonstrate its true value to the business.

To counter the negative perceptions that have traditionally plagued IT, CIOs need a mechanism for speaking the same language as any other senior manager: that of strategic direction and tactical control ”or more commonly ”governance. First, they need to be able to ask themselves , "Are we doing the rights things?" and then ask, "Are we doing the right things right?" Being able to answer just these two questions well will better prepare CIOs to engage their business counterparts as equals.

While governance is not a new concept for IT, its recognition as a suitable combatant against runaway technology investments has never been stronger. As it relates to the IT function overall, governance encompasses a plethora of management areas and activities ”including the management of portfolios, programs, assets, costs, human capital, service providers, etc. Obviously, this entire subject is too broad for this discussion. In keeping with the scope of this chapter, I'll limit the discussion to two primary subjects: strategic direction and tactical control.