In today's world, the IT management department is no longer just a team responsible for hardware and software maintenance. It has become a key strategic partner in achieving an organization’s goals.
However, with this growing role, the need for a framework that ensures technology is managed effectively and efficiently has emerged; this framework is known as Technological Governance or IT Governance.
Some people might confuse technological governance with IT management.
Therefore, in this article, we will clarify the fundamental difference between the two concepts, and we will explore the objectives of IT Governance, its essential pillars, and how it can transform the IT management department from a mere cost center into a driver of growth and innovation.
My ambitious friend, in a world where everything relies on automation, technology, and AI, there is no alternative but to learn these principles and apply them by integrating them into your management. Let's start now!
What is Technological Governance?
Technological Governance, or IT Governance, is a strategic framework that defines how technology is managed within an organization.
It’s not just about owning the latest hardware and software; it's a set of processes and rules that ensure every decision or action related to technology serves the institution's overall objectives.
It ensures that risks are managed effectively, that technology investments achieve the desired value, and that the use of technology is responsible.
Technological Governance acts as a compass that guides the organization on its journey towards digital transformation, enhancing its ability to innovate and grow.
What is Technological Governance?
Technological governance is defined as the comprehensive framework that sets the rules, policies, and decision-making processes related to the use of technology.
It answers questions like:
- What do we do with our technology?
- Why are we investing in this specific technology?
- How do we manage the risks associated with it?
On the other hand, IT management is the practical, day-to-day aspect that implements these decisions. It focuses on:
- How do we maintain the continuity of networks and servers?
- How do we develop programs and manage projects?
- How do we provide technical support to users?
Simply put, technological governance determines the direction and strategy, while IT management is a part of it, executing the daily operations to achieve that direction.
The relationship between them is complementary; IT management cannot be effective without strategic guidance, and IT Governance cannot be applied without a strong management team to execute its plans.
Key Objectives of Technological Governance
Technological Governance offers a set of strategic objectives that enhance an organization's ability to compete and grow:
Business Alignment:
Aligning IT management with the organization's strategic goals is the most important objective of IT Governance.
It ensures that every technological step contributes to achieving business objectives, whether it's increasing sales or improving the customer experience.
Achieving Value from Investments:
Governance helps ensure that all of the organization's technology investments achieve maximum possible value.
It assesses potential returns, monitors performance, and redirects resources when necessary.
For example, a decision like subscribing to a Zoho tool or the entire Zoho One suite is a big step towards automating your company's operations and utilizing technology in the best possible way, but there is a cost that must be paid as an investment.
Studying this decision would be the responsibility of those in charge of technological governance in your company.
Risk Management:
In the digital age, cyber and operational risks are increasing. Technological governance sets a risk management framework aimed at identifying, evaluating, and effectively dealing with them, which enhances the organization's security.
Transparency and Accountability:
Technological governance provides a clear system of accountability, where it defines roles and responsibilities and simplifies the decision-making process, which enhances transparency within the organization.
Effective Technological Governance Pillars
To turn objectives into reality, IT Governance is built on a set of pillars that form a solid framework for IT management:
Value Governance:
This pillar focuses on ensuring that every investment in technology achieves a real return for the organization.
It goes beyond just buying hardware and software, and focuses on measuring the value that these investments add to business operations, whether it's increasing efficiency, improving the customer experience, or achieving a competitive advantage.
Risk Governance:
This pillar is a cornerstone of technological governance.
It is concerned with identifying potential risks, such as cyberattacks, system failures, or non-regulatory compliance, and setting proactive plans to manage and mitigate them.
It ensures that the organization is prepared to deal with technological threats efficiently.
Resource Governance:
This pillar ensures that the organization's technological resources (such as employees, budget, and infrastructure) are used efficiently and effectively.
It is concerned with making decisions related to resource allocation, setting project priorities, and avoiding waste, which ensures that IT management is sustainable.
Performance Governance:
This pillar focuses on measuring and evaluating the performance of IT systems.
It uses key performance indicators (KPIs) to assess the extent to which objectives have been achieved and helps identify areas for improvement, which enables the organization to make data-driven decisions to improve performance.
Compliance Governance:
This pillar is essential to ensure the organization's commitment to all laws, regulations, and standards related to technology and data.
It is concerned with creating mechanisms to monitor compliance, updating policies periodically, and avoiding legal penalties that may harm the organization's reputation.
These pillars together form the framework that guides IT management toward achieving the organization's strategic goals.
They are concerned with the matters that the organization must monitor and manage at the leadership level, to ensure that technology is used as a tool for growth and not as a source of risk.
Applying Technological Governance in Practice
This information you read will not be of high value unless we provide you with how to apply it practically in your project or institution.
The transition from traditional IT management to a technological governance approach requires a clear plan and the participation of senior leadership.
Here's how you can get started:
- Evaluate the current situation: Analyze your current IT management status and identify existing weaknesses and risks.
- Build the governance team: Form a multidisciplinary team that includes leaders from different departments, not just from the technology department.
- Set objectives: Define clear and measurable goals for your governance framework.
- Apply tools and policies: Use tools for monitoring and project management, and set written policies for risk management, cybersecurity, and asset use.
- Awareness and training: Train all employees on the importance of technological governance and their role in applying it.
It is not just a management term, but a conclusive strategy to ensure that the organization remains safe, effective, and able to innovate in a digital age that does not stop changing.
