Is Outmoded Governance Cutting Into Business Value?

Reports by the Harvard Business Review, MIS Quarterly, and IGI Global all conclude that widely practiced governance protocols are “failing,” “killing innovation,” and “delivering substandard results” when measured against enterprise key performance indicators and mission-critical business goals. Seven of ten cross-functional leaders surveyed say their companies’ governance models are not designed to fit the needs of digital business teams. IT governance as conceived in the 1990s had three key objectives: Make sure that technology generates business value, oversee management, and mitigate risk associated with technology use. Since then the standard governance models have become skewed toward risk mitigation, and according to one expert quoted, are causing procedural knots, delays, and denial of resources – problems that were exacerbated by the pandemic. Governance guidelines conceived before the emergence of the digital-first economy can hamper business value and productivity.