Time
10 hours 8 minutes
Difficulty
Advanced
CEU/CPE
9

Video Transcription

00:00
Good afternoon, Cyberia Ian's and welcome back to another certification course. This one, of course, being on siege it which is certified in the governance of enterprise I t. And ah, for those of you that have been joining us all along
00:20
Welcome back. And for those of you that are joining us for the first time,
00:24
we're glad you're here. What we've been covering throughout this course has been, of course has been, of course, ah, focus on the elements of enterprise I t. So it's a little bit different than a technical focus.
00:39
Ultimately, what we're looking to do is we're looking to justify
00:45
and provide, ah support for the value of I t within the organization. We've talked about the fact that unfortunately, many times folks don't know exactly what I t does. You know what is our purpose within the organization? They know they call us. We show up in
01:02
fix things, but that doesn't necessarily feel profoundly
01:06
value filled. When you look at, we may have an organization 25 people. So what this section is all about
01:14
is governing I t. And making sure or what this this whole courses about is governing. I t in such a way that we're in full alignment with the goals of the business and that we're providing value as we move along. So one of the main frameworks that we've talked about so far
01:34
we talked about a couple we've talked about.
01:36
I so 27,000.
01:40
We talked about Kobe it and we've talked a little bit about vow I t. And out of all those Val, i t is probably ah, gonna be the one you're going to see the most on the exam because this is so closely tied to what we're doing show and prove. Demonstrate to me
01:57
the value of I t investments.
02:00
Otherwise, why am I gonna keep investing? Why am I gonna keep continuing?
02:06
So vow? I t
02:08
Now this is another framework from my sacha. So this is the same organization that puts out this Egypt exams so we can have a pretty good understanding or expectation that Val i t is gonna be on the exam. Um, So ultimately,
02:27
Val I t's job
02:29
is to set out practices, goals and objectives of the I t investment. And that's really gonna be a change for us. The change for us is going to require that we start thinking about all I i t endeavors as investments into the organized into the organization, because
02:49
ultimately
02:50
everything that we should do should deliver value. And this really isn't any different than any other part of the organization. Right Oven organization fails to bring in value. That organization either gets a total and complete re hall or that organization gets phased out of the enterprise. So what we're looking to do
03:08
is to make sure senior management understands the value,
03:13
because when push comes to shove in order for a 90 department to thrive and be successful, we need funding. And we need support from senior management. They're not gonna keep throwing dollar bills at us unless they truly understand the value we bring to the tape.
03:29
All right, Now, um, and the rest of this by providing enterprises with the structure they require
03:38
Here we go to measure, monitor and optimize the realization of business values. So we want to be able to provide tangible metrics. I want to be able to demonstrate, and I want to show information that clearly ***
03:55
Tate, or that clearly indicates rather
03:59
the amount of value that we've delivered now understanding full well off course value isn't always profit, right? But that doesn't make it value any. The less we're going to be able to monitor so that we can determine if we're continuing to bring in value. And if our controls are meeting their objectives
04:18
and if not, we're gonna make modifications to control and optimize
04:23
because ultimately everything we do, we're going to manage as an investment. And we're going to focus on what brings the greatest value to the organization as a whole.
04:35
All right, so value governance practices and some of this we may have hit or address just very briefly towards the end of class. And that's okay. This is so valuable. And you spend a little bit more time there because I know his classes. Aziz classes wrapping up. Sometimes we go a bit quickly. So the Val I t. Framework principles.
04:56
What we're looking for is managing
04:59
a portfolio of our investments because it's important not just to show the benefits of a particular or single of investment, but we want to be able to have a collection of I t investments that provide value to the organization so that we're not just justifying a specific
05:17
process or project.
05:19
We're justifying the existence of I t as a whole through our portfolio. Hey, the full scope of activities required to achieve business value. So we understand
05:35
or we need to understand rather maybe the better, better use of that word. But what we want to make sure that we do is we're tracking two. I don't know if any of you guys have ever worked with the requirements Traceability matrix, very useful in project management. And ultimately what we do
05:54
is we take stakeholder needs
05:57
to stakeholder requirements, stakeholder requirements to deliver bols of the project. So at any point in time, I can look a deliver balls and go back to the requirement that they provider that they help us meet. Or at any point in time, I can go from a stakeholder
06:14
and I can trace backwards
06:16
Why we produce that. How that meant a stakeholders requirement or forward stakeholder to the requirement.
06:23
I don't know if I said that very well, but ultimately I hope you get the point. I can see where the stakeholders requirements were satisfied and I can look at deliver Bols and know which stakeholder had that requirement. So ultimately, when we're talking about
06:39
mapping what we do in I t to business values, the same approach should be there. We should be doing the same thing mapping out value, mapping out what we do to business objectives.
06:53
We also need to make sure that we're monitoring these elements through the full life cycle off these investments because some investments have a very high upfront value
07:04
and they may have a slow rate of return. You know, when you implement a lot of mechanisms geared towards security, you don't see that change instantly, right? You don't just all the Hutton sudden start saving thousands of dollars per month or tens of thousands of dollars a month. But
07:25
over time, through loss prevention, we're going to see that value come through.
07:30
So we have to be very complete and comprehensive in what we monitor in end in what we report.
07:39
Okay, so we'll talk about value governance, portfolio management and investment management. Ah, we've already talked a little bit about value governance, so I'm just gonna add a few things now, vow I t. And again, we looked at thes very briefly
07:56
at the end of last week's course, but I don't necessarily feel like we did them justice. So
08:01
I'm gonna come back and just spend a little bit more time here and just enhance or build on, perhaps what we talked about. So when we're talking about governance again, this is senior management. Cee Io's This is for you that our job is to get on board,
08:20
you know, get on board or get left behind, so to speak,
08:24
because what we need to do is we need to have that senior management backing. And ultimately, if senior management doesn't get it, no one else will write. Culture, understanding, focus. All of that comes down to the from the top,
08:41
and one of the things I find is rarely
08:43
are the folks in I t value driven. You know, so many times we have a set of tasks and activities. We've just got to get done. But what we don't understand is how we do them may have a bigger impact on the business as a whole, right? So it's not all equal. Just fix this system. We have
09:03
priorities,
09:05
we have processes, we have better solutions. Perhaps, so what we want to do is get our I t team to stop thinking in the basement
09:16
technology, technology, technology. We want our I T team to be out of the out of the basement head of the basements into the streets. We want them to be visible, so it's gotta start with senior management. They have to be informed, and they have to be committed to
09:35
the process and the idea of delivering value.
09:39
You know, it's no longer OK to think. Well, of course I t has value, right? Everybody understands that. Well, not everybody understands that. It's coming more and more clear,
09:54
so it starts with governance and it has to
09:58
okay, design and implement processes. So governance is on board. Governance gets it. We're working towards value and we're working towards.
10:28
We have to start with defining and implementing our processes. What are those processes will? Often,
10:33
they're gonna be built based on a framework, right? We've talked about Kobe. It, for instance, and Kobe. It is perfect in this environment because it starts out with enterprise goals. Tell me what the goals of the enterprise are. Do we want to be more productive
10:50
and and really we can start with. What's the problem the Enterprise is trying to stop
10:54
to solve while we're not in compliance were not as productive as we need to be?
11:00
All right. We look at those
11:03
to particular problems and we figure out, well, how can enhancing the technology that we provide solve those problems?
11:13
Sounds right. Think in terms of how to relate to the bottom line with the organization's value and the bottom line. Kenneth, I I appreciate you pointing that in because that's so true.
11:22
We just can't talk in terms of technology and we've got to get our heads up and we've got a look at the business as a whole. You know, one of the things I tell my classes is there is only one
11:35
single reason
11:37
anyone in I t. Has a job,
11:39
really
11:41
No reason other than the fact that I somehow support the business.
11:46
And if I fail to support the business at some point in time, my position will go away. I'll be retrained. Something's gonna have to change, right? So we've got to show, you know, we've gotta prove
12:01
that we add to the bottom line so many I t sources air being outsourced to cloud providers. Well, if we're delivering the value in house that needs to be accomplished, or if we can deliver a better value in house than we need to demonstrate that and be able to speak to management's needs,
12:22
I find a framework,
12:24
find a framework and conduct the gap analysis. This is where I am. Here's what where I wanna be according to the framework. Now let's figure out how we're going to get there. So where are we? Where do we need to be? Gap analysis. We can use
12:41
ah ko Bit or Val I T. Or capabilities maturity model. But ultimately we look at what processes they have in place,
12:50
and we figure out how to change our processes to get us there
12:54
thing.
12:56
All right, what are the characteristics of the portfolios? Right. So having categories within the portfolios. You know, if if we're having projects that are geared towards producing or increasing productivity projects that are towards loss prevention,
13:15
well, we want to categorize those,
13:18
and we want to determine what's the best way to develop, to track to monitor that information
13:24
and also to help us understand which of those categories has greater value to the organization, specifically to senior management. Right? Reduction of up time might be worth more than increased productivity.
13:43
I don't think I said that. Right. Reduction of down time may be of higher value than increased productive ITI just being able to be up 24 7
13:52
Well, that that's something that we need to note because we're going to focus our efforts on redundancy as opposed to possibly creating, you know, getting higher links, faster links and so on. Okay. Now,
14:05
Ah, what are the requirements As we move from stage to stage off our process for improvement,
14:13
right. Sometimes we refer to those a C s s critical. Um, successfactors.
14:20
Yeah, I totally got tongue tied on that low basher, and I think I said that exactly backwards. I'm pretty sure we don't want to reduce up time.
14:30
All right. Uh, value, uh, governance for
14:35
a line. And integrate value management. I know you guys get sick of me saying alignment with the business, but just him talking about that. That's Onley possible if we understand the business. And it can't just be an understanding of the business at the top right of course, the C I o. Hopefully
14:54
understands the business.
14:56
But what about the se's? Oh, what about the lead engineers? What about the head of I T? What about the lead engineers in the technical staff? Do we really understand our purpose? Do we really understand? It's not about the computers. It's about implementing the processes that
15:13
promote the goals of the business,
15:16
right? So we've got to think about from a financial standpoint from a value driven standpoint, what our requirements are
15:26
and
15:28
how we identify those requirements change. Want to make sure that we have the financial. We want to make sure that we have the funding in place. But in order to get that funding, we have to make a strong business case.
15:43
All right. Effective governance and governance is going to oversee the I T endeavors.
15:52
Most important key metrics. Key performance indicators. Key goal indicators, Key risk indicators. What are those elements that we want to capture that air value to the organization, and that's what dictates what we capture?
16:08
There's no point in reporting on something senior management doesn't care about just cause the I T. Team thinks it's cool,
16:15
right?
16:17
Yeah. Can I I really believe that, too. Is that really understanding? What we're about is the business as a whole. We can get caught up in the day. Today we can get caught up of this element or that element, but it's about the business,
16:34
and that comes from the c I o down.
16:37
But yeah, it is tough to get by in especially. And I always say, You know, it's easier to start on the right foot than it is to go back and correct, But rarely are you and I going into, Ah, company is their first ever see Io and we walk in and everything's at our discretion.
16:56
So coming in in trying to change and environmental culture,
17:00
that can really be tricky.
17:04
So senior management doesn't they pick a framework? We do a gap analysis. We get buy in from the team. We identify metrics for our endeavor. We determine how we're gonna capture those metrics and what to do if the metric chart where we want to be,
17:22
how we report to whom we report, what format we used to report, how frequently we report
17:30
all of those pieces
17:33
and then we look at continuous improvement. It's a term sometimes called kaizen continuous improvement. We can always get better,
17:44
all right, so
17:48
we select programs and projects based on our ability to deliver those programs. That sounds like such a no brainer to me. Choose projects and programs you can accomplish that you can deliver. But that's not always the case. We don't always
18:07
in our feasibility studies,
18:08
take a good, long look at where strengths are. You know, sometimes you hear about SWAT analysis, strengths, weaknesses, opportunities and threats and to really examine what our organization has, and we certainly have strengths, and there's certainly opportunities. But we have weaknesses and well as well
18:29
and not biting off more than we can chew
18:32
and staying focused on those projects and programs that we can accomplish. If that means we have to outsource certain elements, that's OK. But is it feasible? Is it going to be feasible for the amount of money that that we want to devote okay in a way that makes sense from a return on investment?
18:59
So this statement, having methodologies in place is less important than whether or not business managers and specialists use those.
19:10
Well, you know that that's ah comment from, Ah ah, source that we were looking at. And I understand what that source are a source that I used and I put paraphrased and put it on here because I want to discuss it a little bit now. First of all, I'm a
19:27
big believer in if you have policies. If you have
19:32
procedures,
19:33
follow them.
19:34
But you've gotta start with the policies and procedures and the methodologies. And not every situation is gonna require the same processes as you know, best practices or whatever. So it's OK if they're variations.
19:51
This bullet point doesn't mean have policy for the sake of policy. Who cares who follows it?
19:56
It's simply that even if there exceptions to the rules and business managers don't follow methodologies at all times, we still need them is in place. There are guidelines right there. The baselines that we adhere to
20:12
all right, realistic business cases, air used and if possible, include benefits for all impacted departments and ages, agencies and business functions. So in a little while, we're gonna talk about developing a business case. We're gonna talk about selling I t
20:33
from the very
20:34
get go A. We're looking at an I T project. We're looking at an upgrade or an update. We're looking at something that requires senior management sign off. We're gonna present with our business case first. And the business case is exactly that. Here's how we're going to support the organization
20:55
and we'll get into that business case development just a little bit.
21:00
All right. Um,
21:03
so let's see here. Yep. I've already mentioned managing the benefits and documenting the benefits over the entire life cycle off the product,
21:15
making sure that planning
21:18
addresses benefit delivery. So when we're planning and we're doing our checks and we're stopping to verify certain pieces of information or metrics that those value oriented metrics are being tracked as well,
21:33
ownership and accountability are assigned for all benefits and changes targeted.
21:41
Let me tell you what
21:42
policies, procedures, vision results are only or desired. Results are on Leah's good as the accountability associated with them.
21:56
You know, for instance, I don't know if any of you have a little bit of a lead foot. I've been known to drive a little too fast from time to time. I've tried to slow that down, but some days are better than others.
22:06
Um, I go back and forth to North Carolina quite a bit. Um, I've got family there, and there's a particular stretch of highway between Durham and South Hill, Virginia that tends to be frequent and frequented by police officers more than others.
22:26
I may or may not have gotten a ticket driving there once or twice.
22:30
So you convey bet high, slow, right on down for that 20 miles. And sure enough, every time I drive through there, I'll see police officers just waiting to pull somebody. That's enforcement. That's accountability. The speed limit says 60 miles an hour, which, by the way,
22:49
when you've been going 70 miles an hour the entire time, it's really lousy to throw 60 mile an hour. And there
22:57
I'm just saying, just throwing that out there. But the bottom line is holding folks accountable, enforcing policies that really makes a difference in changing the environment. I'll guarantee if you go into an environment, start holding people accountable for following policies,
23:17
all of a sudden you're going to see policies
23:19
followed. So when we assign ownership, we have someone that is ultimately accountable to produce the value that we have determined is necessary, or that were capable of determining. So with that accountability tied to value and tied to
23:40
benefits,
23:41
as opposed to just function of the control or implementation of the mechanism that starts to change things and they start to work smarter, not harder,
23:52
and be more concerned about the efficiency of the process. So rather than just a signing requirements for completion
24:00
a sign, a sign, accountability to value at completion, if that makes sense,
24:11
All right, governance practices. Ah, we want to make make sure we meet success and delivering value. Yes, yes, yes. Investments.
24:22
Evaluate them. Not whether or not
24:25
the you know, we've just said that. Did it deliver value
24:30
and always governance is responsible for ensuring that lessons learned are captured
24:36
and are well documented and are available to project managers or department heads for the next step forward. With the next investment process, we can always get better, and having these lessons learned is a big step of that idea of caisson. We can always get
24:56
better,
24:57
but how
24:59
well we go back. We looked our lessons learned, and we find those obstacles and hurdles that were in our path and we evaluate was at a good plan, was it not? How could I do things differently if I were going to make changes?
25:12
So we gotta Look, we've got a look at the past somebody, some somebody had a quote that I thought was really good. I'm gonna butcher it. But the line says the past teaches us nothing.
25:26
The past teaches us nothing. Onley Introspection of the path
25:32
will allow us to learn.
25:33
So what that means is, if we don't track this information and if we don't use it again,
25:41
then we will keep mistaking, making the same mistakes over and over and over. I mean, you look at business continuity examples, and you look it over and over and over. How many organizations crumble in the event of a fire of flood? A major event, a major catastrophe. And what we see is
26:00
over.
26:04
You'll lack of, um,
26:10
of documentation, a real lack of understanding and a riel lack of changing the processes. Okay, so we got to rethink how we do these elements and we've got to make sure that we're taking advantage,
26:25
you know, for those of you that have managed projects ideally in your organization, you have a PMO
26:30
and a project management offices job is to make sure that value that
26:37
project managers have access to material that will help them manage projects better each time. So if we don't have that, if we don't have that capability of accessing lessons learned or debriefing or postmortems or whatever your organization wants to call him,
26:53
well, then we're not gonna be able to utilize all those things that are. Company has it are disposed.
27:00
All right.
27:03
Effective governance.
27:07
I t governance effective. I t Governance is the single most important predictor
27:14
of the value
27:15
an organization generates for my teeth. Well, that me, that means that we, the Cee, Io's and senior management were the ones that will determine. Does this organization get value for my tea? And is it visible?
27:32
All right.
27:38
Okay, um,
27:44
let's see, our next section.
27:48
I had to write something down because I wanted to mention it to you all. If I don't write it down, I often forget it. So when we talk about and I'll talk about this after break, but, um, this next section enterprise governance of I t. Focus areas,
28:03
governance, what are the things that I t governance and we've talked about this earlier,
28:10
so
28:11
we have to think about things like value delivery not even say in that again. You guys have value delivery hopefully and understand, but also of risk management. And when risk management is done well, it ultimately provides us with a cost benefit analysis, analysis, off strategies
28:32
and a deeper understanding off the potential for risks. So risk management enterprise risk management is essential to the nature of I t governance.
28:41
Okay, Um however, in order to properly deliver value and manage risks accordingly, we have tohave strategic alignment with the business, which means we have to understand that
28:53
we have tohave measurements that we track
28:59
and we need tohave resource. Is that air well managed? We don't have unlimited staff. We don't have unlimited funds. So being able to have resource is that we manage well efficiently and that are optimized,
29:14
then
29:15
ideally will be able to provide effective governance. All right, the four R's invalidity and it's not our like the letter r, it is Are Are we
29:30
okay? So are we doing the right things? And this is governance. This is not management. This is not the tech team. This is for I t governance to answer. Are we doing the right things? Are we providing the right technology? Do we have the right infrastructure? Are we doing the right stuff?
29:49
Are we doing them the right way?
29:52
So we're doing the right stuff.
29:55
But are we doing them right? Are we doing them efficiently and effectively? Are we cost conscious? Are we monitoring expenditures as investments? Are we being proper custodians off? The resource is that have been entrusted to us?
30:11
Okay. Are we getting them done? Well,
30:15
so we're doing them the right way. Are we? Get them done. Are we getting them done on time with reasonable, you know, with ah, you know, higher benefit than the cost.
30:26
And then are we getting the benefits? Are these benefits being realized? So we're implementing technology to improve productive ity. Is that happening?
30:37
And if not, if we're not meeting any of these ours, what we need to do is go back and conduct a gap analysis and figure out why.
30:47
Where are things not?
30:49
Why are we not getting where we wanna be? Right? Because we want to do the right things the right way.
30:55
We want to get him done well, and we want the benefits.
31:00
All right, Now, that's a good place to stop and take. Ah, little bit of a break. Stretch your legs. Me? I'm still drinking coffee here. 3 30 in the afternoon. My coffee mug for your enjoyment provides us with the anatomy of a pug. Quite amusing.
31:18
Ah, I enjoy it quite a bit myself. But at any rate, I'm gonna go refill this cup of coffee, and I hope you do too. We're gonna start back at 3 43 40 with the topic of investment management.
31:38
All right, Welcome back. Welcome back from our afternoon break in a refill of coffee and, uh, anything else it takes to keep you awake at 3 30 in the afternoon. Always find that's the hardest part, right? Like if you take a 900 mile road trip, it seems like the last 40 miles takes forever
31:59
in the afternoon. Somewhere about
32:00
3 15 3 30 s starts drag a little bit. So coffee is my defense. All right, so we've just been talking about riel value and providing,
32:13
um, demonstrably all
32:15
meaning that we can demonstrate the value that we have to senior management.
32:20
And we've talked about governance really being the key. And that's what this entire courses about, how governance provides because the value isn't going to come from the I t. Staff. If governance isn't on board right, If the CEO isn't on board, isn't value focused and no one in the
32:37
in the i t ah I T department will be
32:40
right. So starts from the top. We talked about making sure that we're doing the right things. Well, one of those right things that we need to do is about managing I t. Endeavors as investments for those of you that invest in stock. Are you going in?
33:00
Invest in stocks
33:01
That's going down, down, down, down, Regan, Invest in stock on it. Or let me say, Do you want to invest in stock that's going down or that's going up? When are you more prone to have confidence in an organization and be more willing to invest well when it's a profitable company
33:21
when it showing return on investment?
33:23
And those are the elements that we're looking for from our technology and our I T department, So we want to make sure that we understand and focus on these endeavors as investments, right that deliver value.
33:42
Now,
33:43
our commitment to investment is a big part of it. That this is an investment. You will get your money back. You're not tossing money to the win. You're not funding. I tease passion for, ah, high edge bleeding edge. Uh uh.
34:02
I t toys and technologies that we all like to see. We're investing in something that will come back to us, right?
34:10
So
34:13
start with the business requirements. I know I say this a lot, but it just goes back over and over and over to the requirements of the business.
34:28
All right, now, investment categories. So the idea is not all I t elements or endeavors. You're gonna bring value in the same way right there. Lots of ways that we can add value to an organization.
34:44
So ultimately and this can kind of go into our portfolio management section as well, because we're going to categorise our investments.
34:52
But ultimately we can think about things like innovation. How much money do we want to spend to innovate? Do we want to be on the cutting edge of technology? What's our line of business? And how would that influence our customer base or how my that
35:08
increase our potential to
35:12
acquire new customers.
35:15
You know what would be the benefits we're gonna venture? We're gonna look to grow. We're gonna look for improvements in the way that we do things, you know, maintenance. Sometimes you just have to do maintenance and maintenance isn't real profitable, but it will prevent loss.
35:34
And then sometimes your value that you're delivering is to be in compliance, right? Mandatory investments in maintaining compliance with HIPAA or socks or Gramm, Leach, Bliley or whatever That may be
35:52
all right. Management objectives. So
35:55
there are four main classifications for our investments, and this is from M I t. OK, so you can take that for what it's worth. But certainly something to think about in your organization may classify a little bit differently,
36:10
but
36:12
ultimately,
36:13
um,
36:15
I would see here ultimately
36:17
transactional. Okay, transactional in business are transactional investments. So ultimately, what we want to do is do the same thing better,
36:29
Faster, more efficiently.
36:31
That would be an example of transactional investments.
36:36
Okay, informational investments.
36:39
A eso here we might seek to provide better information distribution, better content of information, better analysis of data.
36:51
Um however,
36:53
whatever it is that we're looking to communicate, can we do that better?
36:59
Okay, so certainly an objective here.
37:04
Alright. Strategic.
37:06
This is broader and income your strategic Think long term vision.
37:09
We want to gain an edge in the market. We want to be thought of as a leader. We want to innovate, very talk about innovation
37:17
and then also infrastructure investments as well.
37:22
Ultimately, we can't support the business if we don't have the infrastructure in place to do so.
37:30
So making sure that we have the foundation, we have the policies and procedures in place. We have the technology, we have the strategy and vision,
37:39
and we have the physical equipment and the staff that knows how to use it.
37:45
So when we're investing in i t, these are things that we think about is our objectives.
37:50
Um,
37:52
a key challenge. I like this key challenge for enterprises during periods of boom or bust
38:00
is aligning to the strategic intent.
38:04
So we know the economy flexes right? You know, we have this period of incredible success, and then things start to head downwards and we may start talking of recessions than we come back up and down, and the idea is still, regardless of where we are,
38:22
we still woke
38:24
to value.
38:27
We still align with the corporate strategy. We still adhere to our frame more so ultimately with that saying is, regardless of what sort of external influences,
38:40
right, we need to make sure that we can adhere to our framework
38:45
and yet still be flexible and allow that variation, you know, be able to cut down on some of our investments. Be ableto have the ideas in place that okay, we need to do maintenance. We don't have the funds right now. The government shut down. There's no money coming in or there's no staff available. So now what?
39:05
What are some things we can do with duck
39:06
taping chewing gum? And I think anybody that's been a technician or network admin at some point in their life knows what I mean when I say duct tape and chewing gum. And actually I think it's WD 40 and chewing gum, so you know I can do anything with WD 40 and
39:24
no, it's duct tape, WD 40 and duct tape.
39:28
If it moves and it shouldn't you use duct tape if it doesn't move. And it should. You use WD 40.
39:34
So are we flexible to think on our feet toe? Look at other solutions, right? We're going to continue to adhere to the strategic vision
39:45
and to the framework, no matter what.
39:46
What? We have to be flexible
39:50
on how and not just how we want to do it, but what we do. If Plan A isn't available, can we think on our feet and offer that flexibility?
40:00
Okay. Already talked about the importance of monitoring and reporting on I t investments,
40:07
very proving our value. I was writing an article for a magazine and one of the questions waas.
40:17
Well, the first question was essentially, how does a manager demonstrate value? And that's all the stuff we've talked about here. But then the second question was, Why is it even important? Why should I t have to demonstrate their value?
40:31
Because we want funding? We want support. We want to keep our jobs. We want to be given the freedom to do the things that need to be done and to better support the organization.
40:43
Right, if we don't, if we're not perceived, is delivering value that will never happen.
40:49
All right, Um, so investment management is a part of i t governance. So financial planning and understanding and looking for that return on investment in reporting on
41:04
return on investment, using controls based on the potential for return.
41:09
Ultimately,
41:10
we've got to look at selecting, controlling and evaluating
41:16
selecting the proper project
41:20
that we believe we're capable of doing. That will deliver product, uh, deliver value.
41:25
We will control and really with that monitor and control the project to ensure that its meeting its objectives and evaluate and determine what happens next. All right, So for select
41:38
prioritization and again with prioritization got understand their multiple investments I t can make, we can go high in, just like, you know, when you're looking to buy a product.
41:52
You know, you go out to Amazon and you'll see very high end products and you'll see very low in products and all those in between the joke in our houses, we bythe second most expensive problem.
42:05
Because if we bought the most expensive product all the time, that just be overkill, right? What? We don't want to buy lousy products that don't work. So So we choose the second I wish I could say I was joking, but more times than not, that's kind of our deciding factor. Um, obviously not the best plan. And I don't mean we do that for everything, however
42:24
done at a time or two.
42:27
Okay, So what are your priorities? Is it cost? Is it quality? Is it warranty? Is it redundancy? Is it availability? What is it?
42:37
Right?
42:38
Prioritize Senior management's the Onley entity that can prioritize what the values of the organization are and where to prioritize budget time, scope of work,
42:52
quality.
42:52
All right,
42:54
analyze the cost versus the benefits of the control.
43:00
Manage that project. Meet your milestones.
43:04
All right.
43:05
And evaluate whether or not you move forward.
43:10
And then the evaluation piece is your post implementation reviews. So control.
43:19
Do the work of the project. Right? Move forward or not Evaluate the reviews at the end. Evaluate your critical success factors and determine if you met it if you met them.
43:30
All right. More goals of investment management.
43:36
Pausing for coffee.
43:45
Sorry, gang. All right. So investment management goals are continued. Um,
43:52
alternatives. Analysis is what we call when you look at other ways. We used to say this in North Carolina, saying, There's more than one way to skin a cat,
44:04
and the more I think about that, that's a really unpleasant saying. No cats were harmed during the production of this video,
44:10
right? But alternatives analysis There's always another way. And once again, the prioritization off our values and of our mission comes from senior management to help us determine which alternative we choose.
44:24
Every program in project has a business case and a set of objectives for supporting the business. And we measure the success of that programmer project against the business case, and we'll talk about developing.
44:42
Yes, My Bashar, thank you very much. That's a much nicer thing to say than more than one ways toe. I like that more than one way to peel a banana. I'm going with that.
44:54
But then my question is, how many ways are there really to peel a banana?
45:01
I'm just asking the question.
45:05
All right, so develop a business case, maintain it.
45:09
The success of the project should be mapped to the success of accomplishing the solution. The business pick case proposed
45:21
clear accountability
45:22
for value
45:24
and monitor and report on performance. There's nothing new here
45:29
Okay,
45:30
so
45:31
business case program, management benefits realization.
45:36
We're gonna talk about business case next.
45:38
Then we've already talked about Project and Program management, really
45:44
going through the various processes that are necessary to bring a project to a successful completion.
45:50
All right, then we have benefits realization, making sure that we get the benefits of those programs. All right, so once again, our friend vow I t comes back
46:02
and prescribes the following processes
46:07
Business case. Start with the business case. We'll look at that in just one second.
46:13
Um, understand. Implementation options. Develop a plan up a project management plan or programme management plan
46:25
Developed full life cycle costs and benefits. So do your cost benefit analysis and your feasibility study and determine
46:36
whether or not that's gonna work.
46:37
Okay, determine which program and when it says candidate program These air for programs that were were essentially think of it is being cat. Uh uh.
46:51
Think of it is being shown multiple programs and it being your choice to choose which program we follow. So each of those programs are a candidate, all right. So again to determine which candidate which program we're going to choose is going to determine its gonna be based on priorities of the business.
47:10
Okay, get the business case
47:14
launch and manage the program.
47:15
Update operational portfolios the business case
47:21
monitoring report and retire the program. So what we're really seeing kind of is the life span of the processes for investment management in relation toe I t projects. Right? Start with your business case all the way up through retiring the program. All good things must come to an end.
47:40
And we cannot quit
47:42
at step nine, right?
47:45
Once we're to the end, where we either transition our program over to our customer or we upgrade to another product or another service or software, whatever. Having that graceful transition, the graceful retirement of the program ensures that we don't have remnants of data left behind
48:05
insurers that we are getting the most value out of the components that were used.
48:09
Gotta do it.
48:12
All right. Business realization.
48:15
Two things or two ways. The business, um,
48:21
the two types of benefits, maybe we'll say to the business so I can kind of think of them as direct or indirect.
48:30
So I Sacha calls them benefits business benefits and intermediate
48:35
to me, they're direct benefits and indirect benefits. So when you talk about direct benefits, business benefits by, um,
48:45
by implementing an I T. Solution,
48:50
we enhance directly the value of the organization. So we might implement, um,
48:59
we might implement new technology that allows ah production to skyrocket. Right? That's a direct value. With the implementation or the upgrade of this system. This software productivity has increased
49:15
right or were able to sell more products or whatever, because we can take more calls
49:22
now. Indirect benefits.
49:24
So we might be, um,
49:30
we might be in a position. Where were our customer reputation? Our reputation with their customers increases because we're providing cutting edge technology.
49:43
We might find that
49:45
are, um,
49:46
customer service in his Enhanced because we have that technology were better able to serve our customers
49:54
morale.
49:55
People hate toe work on dated systems. I don't want to be on a penny, um, one system, right? I don't have to have the latest greatest, but I want to be on the system that works. I wanna have confidence
50:09
in the resource is that my organization provides to me.
50:14
Okay, so that's an indirect benefits. Not as tangible, certainly, but,
50:20
uh, benefit no less.
50:22
All right.
50:27
Portfolio management.
50:30
So portfolios were in a store and track our investments as a whole.
50:36
Right? It's one thing to be able to show individual value for our endeavors. But what about the value of I t is a hole.
50:45
So in our portfolio, we're going to collect the information on our programs, our projects, our investments,
50:52
our assets. And ultimately, this is gonna be a central location in which we can use to assess the value off our department and the services that we offer.
51:06
All right, so with portfolio management as opposed to I t. Governance management, what we're looking for is to make sure that the entire portfolio
51:19
demonstrates value,
51:21
right? I don't just want to say Okay, well, this one component had value. What about everything else? Well, I have all of our investments. I have all of our programs. I have all of our projects in a single location in order to demonstrate.
51:36
Okay. Ah, disciplined. It supports disciplined improvement and drives on consistency, repeatability and accountability. Absolutely. Absolutely. Because what we're looking for is we're evaluating our programs against each other
51:54
against our bench. More
51:57
us. And we're examining how we can have better results and better results come with consistent methodology,
52:07
being able to repeat the methodology,
52:09
being accountable for losses and failures as well as successes.
52:15
And again, we're looking to support the overall value of I t. Not just a specific investment, not just a particular mechanism or control, but the overall value. And really the overall value can only be seen as part of portfolio management.
52:35
Okay, so what are the steps?
52:37
Well, we have i saca's Port Folio management practices that essentially provide us with six. Well, sorry. Can't click happy there with six different processes.
52:52
Okay.
52:52
And I'm guessing you would not be shocked to see that the very first process is to establish strategic direction. And you know that that's going to mean Make sure that that strategic direction is in alignment with the business
53:07
and determine a target investment mix. Meaning we're not just investing and we deliver more value than just increasing productive ity. We want to make sure that we have security products to reduce loss. We want to make sure
53:27
that we,
53:29
um, enable growth through our technology. We want to minimize downtime. We want eso all of these investments We want to make sure that we have them
53:42
from different
53:44
areas of benefit or different areas of value. That makes sense. You know, if you goto an investment adviser and he says, OK, put all your money in thermal flux capacitors. They're selling like crazy. Put all your money there. Well, that's not a very good investment manager, right?
54:00
It's the same thing with our investment portfolios with I t
54:05
remember the different types of value I t brings to a business. And we want investments across loss reduction, productivity increase,
54:15
um,
54:16
customer or
54:21
brand recognition,
54:22
reputation, improvement, whatever those may be.
54:27
All right.
54:29
Next piece when we have to work with
54:30
what are our funds?
54:32
Who's sourcing where the funds coming from?
54:36
All right, because ultimately, one of the number one constraints honest is gonna be actually really the too big constraints. Time and costs. What's schedule we have to work within. And what's our budget?
54:50
Okay.
54:51
Do we have the people
54:52
manage? The availability of human resource is drive the staff.
54:57
Are they trained? Are they confident? Do I need to outsource? Do I need to add training to my internal staff? How do we work with our H bar are human. Resource is
55:08
all right. Now when we understand the cost, we have to work whether the budget, we understand the people in their limits again, kind of going back to swat analysis here with our human re sources and with our organization. Um, Then
55:24
we use that to help us figure out which programs to fund. We can't go after everything
55:30
we monitor and report on the investment.
55:34
And then ultimately, we look at kaizen
55:37
improve, optimize.
55:44
All right. So
55:45
with management of the portfolios, we've got the day to day operations which, you know, monitoring.
55:52
Are we meeting our objectives? And if not,
55:55
why?
55:57
And what can we do about it?
56:00
Watch four scope, creep,
56:04
scope creep will kill a project, kill a program about as quickly as anything else I can think about.
56:10
And scope creep comes when one element of work leads to another, leads to another, leads to another and we're working outside of the agreed upon scope.
56:22
And, you know,
56:24
usually scope creep happens based out of good intentions. Hey, as long as I'm here, let me do something else and the ideas with our programs. We have a limited funding. We have a limited schedule. We have to stay focused.
56:43
This extra work isn't really billable because it's not meeting requirements. So we have to provide the work that we've been tasked with and that must always take priority. Anything that's outside of our scope statement in our work breakdown structure, it's extra work. It's not billable, its scope creep.
57:02
Don't
57:04
do it.
57:04
And if you still think you might want to do it, tuned back in for a project management class tomorrow afternoon at 3 30 or
57:12
yeah, 3 33 o'clock and I'll say over and over again, Why Scope creep is bad in the ways that we take to eliminates good creep. All right, if we're working with limited resource is, can we squeeze every drop of value from them?
57:30
That means taking your salaried folks and working them into the ground. I joke. That's not what that means. It means that we have a limited announce amount of people limited skill set. Can we offer folks in house the opportunity to grow their skill set and provide internal training?
57:49
Might that be cheaper than outsourcing?
57:51
Um,
57:52
are we able to make sure our folks are doing things in as a efficient a manner as possible. You know, a lot of times there's waste built into our processes,
58:04
and can we determine what that waste is and whether or not we're able to cut back,
58:12
Um, sometimes the focus of business changes
58:16
sometimes, especially when you have senior management change, you know, so as, UM, your organization may go through management change, you'll see the priorities of one set of managers
58:30
may not be reflected in the next set of managers. You know, an organization
58:35
that has lost their schism
58:37
and brings in a new se's Oh, you'll see the focus shift
58:43
so and it doesn't even have to be changing. Management could be changing the market. It could be, you know, change of stockholders. It could be stakeholders. It could be from a private company going public. Whatever happens where the business shifts and value portfolio management is
59:02
ideally going to allow us
59:06
to shift as well, and now we choose our programs and our investments based on the new set of priorities from senior management. But if we don't understand, our portfolios were not going to be able to select programs based on the highest value.
59:23
Okay,
59:24
what does it take? Commitment.
59:25
It's always going to take commitment from senior management enterprise level. And I have to tell you if if there are those of you who are planning on taking the siege it exam, I can't imagine any time where the answer senior management buy in is not correct,
59:45
right? For everything I do, I have tohave
59:49
senior management buy in or it won't be successful if I don't have senior management,
59:53
you know? Where is the funding going to come from? Where's the support? How is this gonna be implemented into the organization?
60:00
If senior management doesn't support what we're doing, that is never gonna be a wrong answer. To get senior management committed
60:09
to the process is okay.
60:12
Defined thresholds. Okay. So established, managed resource is Yep, we got that. Define what thresholds are. How much are we willing to invest? What risks are we willing to take on? What is our risk capacity or what's the risk tolerance for this particular endeavor? What
60:31
are
60:32
you know? What's that amount of loss
60:36
that we can take before we pull the plug on this project?
60:40
So really understanding their limits, this looks like a good idea. We think it's gonna deliver value. Things don't always work this plan. So we have to have the stress holds documented and determined to have a time.
60:52
Okay, um, we're gonna determine so basically, evaluate, prioritize, select, differ or reject new investments. They may not fit our portfolio.
61:07
They may not bring diversity to the portfolio. They may be redundant investments. We may not be able to show that wide range of value from different
61:17
Ah, from different categories. OK, and I see a just go. Might I have used some jargon there? Probably. Sometimes it slips out. Can you tell me what specifically was said? And I can provide some clarification on that.
61:35
All right, move, basher. In terms of evaluating business case process,
61:39
how does the notion of disruptive technologies compare to it
61:45
where management might be evaluating the benefits and return on investments based on historic trends
61:52
and on lee existing customer focus so that risk management could be too inward looking and miss opportunities?
62:00
That is a great question. You've got a lot of good pieces there, you know, um, eso I'm not familiar with Clayton Christiansen. Um, but this idea of disruptive technologies.
62:15
So having management be too inward looking, not have the foresight toe look to the future or do not look to expand toe Onley cater to existing customers. That's not really maximizing the value potential, right? That's not really
62:34
making. The most out of the resource is that we've been entrusted with
62:37
because, you know, if we don't in tip attempt to grow our customer base, we're going to say, stay stagnant. And the only way we can go for not going up is to go down. So absolutely, that's a limitation. And that's up to governance to ensure that that doesn't happen.
62:57
That's up to governments governance to ensure that we continue to move forward and that we don't, um, that we don't move backwards, right? So I don't know that that necessarily. Um,
63:13
I answered your question, but I think you bring up the good point of what If we don't have the proper governance, where's that gonna leave us? And if we don't have,
63:24
um, forward thinking means,
63:30
you know, if you look at disruptive technology, we can talk about a lot of ways we've seen just environments get thrown on their ear, right? Were saying, You know, cloud technology, think about public transportation and think about how sorry I am. I'm click happy here. Can't find where, um, way
63:50
some way off.
63:52
Uh,
63:52
bear with me.
64:02
Yeah.
64:03
I hate when I get played, Cappie and then lose where I am. You know, if you want to talk about disruptive technologies, think about how uber change the world, right? Change. Transportation industry is a hole,
64:17
right? We're doing things totally different
64:20
and different than we've done them before. And what you're seeing is businesses step up
64:28
like uber
64:29
think about food delivery, right?
64:31
It used to be able to sit at home and order food to be brought to your doorstep. Now, you look at Postmates and they'll bring anything to your doorstep for a fee. So the idea is when we're stagnant, when we're content content with the status quo, we don't realize the benefits that are available.
64:51
And I love
64:53
the fact that you brought that up. I've heard disruptive technologies before. I haven't had that attributed deflate Christiansen. I just wasn't familiar with him, but yeah, you know, the idea is
65:04
we look at the priorities of our organization and our we content with just putting one foot in front of the other, just moving along day today. Do we have enough confidence in what we provide? Think about what the iPhone did
65:20
in the realm of technology,
65:23
right? How much did the iPhone change things?
65:26
Good Lord and I remember the iPad when it first came out, and people laughed at the name and people are like men
65:33
and then look at the explosion into the tablet market.
65:38
So you will have organizations that you look to to innovate,
65:44
and then you will have organizations that will just keep up with the status quo.
65:49
For organizations that air innovators, we have to have good guidance from governance. As far as risk management, we have to have those thresholds set and understood. His book
66:04
Innovator's Dilemma
66:06
is very interesting. Oh, absolutely innovator solution. And I would imagine the dilemma is to manage the need to innovate, to elevate your organization above, to differentiate yourself from the crowd and separate yourself from the pack,
66:25
but also the risks that can come from doing something out of the box, doing something new and doing something different.
66:33
And if that's not the dilemma that he discusses. Well, that's a dilemma of innovation. So, great question, Mubasher. Thank you for that.
66:43
And Lance, I agree with you as well. Strategy committee.
66:47
Looking at what we're doing in, Does it meet industry trends? Are we putting ourselves in a good place by the investments that we make?
66:59
All right,
67:00
I t enable business case investment.
67:03
Um, resource is that air? You know, we're looking at
67:08
the cause and effect here
67:10
with our business case. What do we need?
67:14
What do we have
67:15
and how do we get and satisfy objectives with what we have or with minimal costs associated with getting there?
67:25
All right,
67:27
so
67:29
our business case, our business cases coming up
67:31
and ultimately, what that business case is going to do is it's gonna justify the investment. And we have to make sure that our business cases well written that it's persuasive that it clearly demonstrates how the investment solves a problem the company has. And we'll talk on Thursday about
67:50
problem statement versus solution statement
67:54
and how we can make sure that we really are meeting the requirements of the organization.
68:00
All right, so that takes us up to the business case, which I think is a great spot to wrap things up because it's a good discussion on business case. We don't have enough time to do it justice this afternoon. So really have enjoyed some of your comments and thoughts. I think you guys have asked Cem
68:17
terrific question. So I have to turn in the heat here.
68:25
Uh,
68:26
okay, So I've really enjoyed your questions and your comments. It's so more much more interesting for everyone. When those of you that are out in the field bring in your thoughts. I always tell people, you know, I know what I know. And there are a 1,000,000 Other resource Is that know exactly as much or more than I do.
68:45
So for those of you that are students, feel free to chime in, participate in class,
68:50
add your two cents worth because that just increases the value for us all. All right, guys, I appreciate your time this afternoon. Thanks for stopping by for the siege. It certification course to Morrow. We start off with C I s S P at 9 30
69:09
Ah, that particular classes going to wrap up looking at telecommunications and networking and move into identity management
69:17
if you get a chance, Please take a look at the pink button underneath the video that says, Take a survey.
69:26
So Oh, good, Kenneth, glad you're on that track. It's a great track
69:30
to really help you prepare to get the certifications that you need to fulfill that role. So
69:36
finish up, take the survey and I wish you guys a happy afternoon and wish you best of luck in future, and
69:45
we'll see you next time.

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Certified in the Governance of Enterprise IT (CGEIT)

This course is designed to be a supplementary resource to the preparation for the CGEIT certification exam. CGEIT certification consists of professional knowledge and application of enterprise IT governance principles and practices.

Instructed By

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Kelly Handerhan
Senior Instructor