Governance, Meaning, Objectives, and Implementation

23 Apr 2024

Organizations consist of multiple departments and sections with different responsibilities and goals that work with each other in order to achieve the goals of the organization. Therefore, the role of governance takes place to organize the roles of these departments and reduce the gap between them. What is the meaning of governance, what are its objectives, and how can it be implemented in the field of information technology?


The meaning of governance

Governance is a set of laws, rules and procedures that aim to achieve quality and excellence in performance by choosing the correct and effective methods for managing organizations and achieving their goals.

In short, governance is the adoption of a certain system to control the relationships between the primary parties that affect the performance of organizations, which helps to organize work and define responsibilities to achieve long-term goals.


 Governance objectives

There are many goals that can be achieved in organizations when applying governance, such as:

  • Establishing rules and principles to help manage and control organizations and institutions.
  • Building an environment of trust, transparency and accountability.
  • Protecting the rights of shareholders and stakeholders in organizations.
  • Distribution of roles and responsibilities through tight organizational structures.



IT Governance

If you're an IT expert or employee of a technology company, you've likely heard the term IT governance but didn't fully understand what it is. IT governance is a critical component of any organization, and you are almost certainly using the features of governance without even knowing. What is IT Governance?

Information technology governance, or what is known as “IT Governance”, is one or several processes that enable information technology employees to implement the correct policies and strategies efficiently to benefit the organization in general. It also clarify roles, responsibilities and decision-making mechanisms to help face challenges as IT Governance is compatible with corporate governance because it is a set of processes that fall under the concept of corporate governance and are designed to maintain the effectiveness and efficiency of the entire organization.

Information systems managers, when implementing IT governance, cooperate with executives and administrators to ensure the efficient performance of IT systems and manage risks that may occur in the organization.

IT governance is also a set of policies and procedures, usually set at the board or executive level. These procedures are designed to provide the maximum benefit and value from the organization's IT assets and its stakeholders.

The “governance” part of IT governance refers to a broad and long-term vision of an organization's IT assets. Governance is not concerned with the day-to-day management of IT assets, but rather establishes policies and procedures that control and define the ongoing management of IT assets.


IT Governance Objectives

The use and implementation of IT governance in organizations would achieve many goals for organizations, including:

  • Ensure the delivery of value to key stakeholders

Providing value to stakeholders is one of the fundamentals of governance in general and IT governance in particular. Getting the most value out of your organization's IT assets requires a clear understanding of how your organization delivers value. so, by implementing an IT governance plan, you can ensure that the most value is generated from those assets.

  • Develop an IT strategy

Creating an IT strategy is related to defining the vision and direction of current and future investments in IT activities in the organization. Whether it's buying new software or servicing new IT hardware, all IT investments should have a clear direction. The development of an IT strategy also helps to better align the IT department with the organization's overall business goals, which helps achieve the goals.

  • Risk Management

Controlling IT risks cannot be done without a structured work environment that is subject to specific processes that can be measured, managed and tracked. Therefore, the existence and implementation of IT governance helps to track, measure, manage and iterate the process within a controlled environment. It also helps to ensure that the organization complies with specific rules and regulations which in turn helps to manage, assess and thus reduce risks.

  • Performance Measurement

It is impossible to have a complete operational view of measuring goals in every aspect of the business, including information technology. So, board members and executives rely on setting and measuring Key Performance Indicators (KPIs) to see how IT assets are performing periodically.


What types of organizations use IT governance?

Both public and private sector organizations need a method to ensure that their IT functions support business strategies and objectives. A formal IT governance program should be placed in any organization and in any industry that needs to comply with regulations related to financial and technology accountability, although implementing a comprehensive IT governance program requires a lot of time and effort.


IT Governance Frameworks

IT governance frameworks can be defined as a roadmap that outlines the methods an organization uses to implement, manage, and report on IT governance within the organization.

Let's take a look at two of the most popular IT governance frameworks according to PeopleCert:

  • ITIL:

ITIL is a set of practices and techniques used to manage IT services, focused on aligning those services with business needs.

The ITIL framework includes 5 best management practices from strategy to design. These practices are intended to ensure that information technology supports the core operations of the organization.

Find out more about the ITIL Foundation course we offer in Bakkah here

  • COBIT:

The COBIT framework is considered one of the most common and globally accepted framework for the governance and management of IT. It aligns business goals to IT processes and goals, providing tools, resources and guidance to achieve, identify and associate responsibilities of business and IT processes.

 COBIT stimulates innovation in IT, bridging the gap between control requirements, technical issues and business risks. Learn more about the COBIT 5 Foundation course that we offer at Bakkah here


How can IT governance help organizations in the success of IT projects?

The implementation of IT governance in organizations is critical to the success of projects and investments in the field of information technology. Having an IT governance framework helps you think about the IT assets in your organization and thus you will be able to quantify, measure, and efficiently deliver IT value to your organization. Then you can say that your organization's IT governance is successful.

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