SA/SNZ TS 8019:2016. Technical Specification. Governance of benefits realization for IT enabled investments SA/SNZ TS 8019:2016

Transcription

1 SA/SNZ TS 8019:2016 Technical Specification Governance of benefits realization for IT enabled investments SA/SNZ TS 8019:2016

2 SA/SNZ TS 8019:2016 This joint Australian/New Zealand technical specification was prepared by joint Technical Committee IT-030, ICT Governance and Management. It was approved on behalf of the Council of Standards Australia on 4 December 2015 and on behalf of the Council of Standards New Zealand on 11 December This technical specification was published on 29 January The following are represented on Committee IT-030: Australian Computer Society Australian Industry Group Australian Information Industry Association Australian Institute of Company Directors Consumers Federation of Australia Council of Small Business Organizations of Australia Governance Institute of Australia ISACA (Australia) ISACA (Wellington, NZ) Manukau Institute of Technology National ICT Australia New Zealand Computer Society Project Management Institute Quantitative Enterprise Software Performance State Government of Victoria The IT Service Management Forum (Australia) Web Science Australia Women on Boards Keeping standards up to date Standards are living documents which reflect progress in science, technology, and systems. To maintain their currency, all standards are periodically reviewed, and new editions are published. Between editions, amendments may be issued. Standards may also be withdrawn. It is important that readers assure themselves they are using a current standard, which should include any amendments which may have been published since the standard was purchased. Detailed information about joint Australian/New Zealand standards can be found by visiting the standards webshop in Australia at or Standards New Zealand s website at Alternatively, Standards Australia publishes an annual printed catalogue with full details of all current standards. For more frequent listings or notification of revisions, amendments, and withdrawals, Standards Australia and Standards New Zealand offer a number of update options. For information about these services, users should contact their respective national standards organisation. We also welcome suggestions for improvement in our standards, and especially encourage readers to notify us immediately of any apparent inaccuracies or ambiguities. Please address your comments to the Chief Executive of either Standards Australia or Standards New Zealand at the address shown on the title page.

3 SA/SNZ TS 8019:2016 Technical Specification Governance of benefits realization for IT enabled investments First published as SA/SNZ TS 8019:2016. COPYRIGHT Standards Australia Limited/Standards New Zealand All rights are reserved. No part of this work may be reproduced or copied in any form or by any means, electronic or mechanical, including photocopying, without the written permission of the publisher, unless otherwise permitted under the Copyright Act 1968 (Australia) or the Copyright Act 1994 (New Zealand). Jointly published by SAI Global Limited under licence from Standards Australia Limited, GPO Box 476, Sydney, NSW 2001 and by Standards New Zealand, Private Bag 2439, Wellington ISBN (Print) ISBN (PDF)

4 SA/SNZ TS 8019: PREFACE This Technical Specification was prepared by the Joint Standards Australia/Standards New Zealand Committee IT-030, ICT Governance and Management. A large number of organizations, both in public and private sectors have difficulty in showing that IT enabled investments actually delivered the intended value. The objective of this Technical Specification is to provide guidance to the governing bodies and executive management to support better decision making involving IT enabled investments. This Technical Specification is based on AS/NZS 8016:2013, Governance of IT enabled projects and ISO/IEC 38500:2015, Information technology Governance of IT for the organization. The term informative has been used in this Standard to define the application of the appendix to which it applies. An informative appendix is only for information and guidance.

5 3 SA/SNZ TS 8019:2016 CONTENTS Page FOREWORD... 4 SECTION 1 SCOPE AND GENERAL 1.1 SCOPE AND APPLICATION GOVERNANCE OF BENEFITS REALIZATION REFERENCED DOCUMENTS DEFINITIONS... 7 SECTION 2 FRAMEWORK AND MODEL FOR GOVERNANCE OF BENEFITS REALIZATION FOR IT ENABLED INVESTMENTS 2.1 GOVERNANCE FRAMEWORK ACCOUNTABILITY OF GOVERNING BODY DELEGATION THE MODEL SECTION 3 APPLICABILITY OF PRINCIPLES FOR GOVERNANCE OF IT 3.1 PRINCIPLES FOR GOOD GOVERNANCE OF IT APPLICATION OF THE PRINCIPLES OF GOOD GOVERNANCE OF IT TO BENEFITS REALIZATION FOR IT ENABLED INVESTMENTS APPENDIX A BIBLIOGRAPHY... 17

6 SA/SNZ TS 8019: FOREWORD This Technical Specification provides guidance to those at the highest level of organizations in the effective governance of benefits realization for IT enabled investments; these are investments that deliver IT enabled business capability and outcomes and are usually executed as projects rather than managed as part of business as usual operations. A 2015 Pulse of the Profession * survey by Project Management Institute shows (a) poor performance results in organizations wasting US$109 million for every US$1 billion spent on projects; (b) only one in five organizations have a high level of benefits realization maturity; and (c) organizations that report a high benefits realization maturity have significantly better project outcomes, as noted in the Figure 1. 76% 66% 67% 54% 38% 43% LEGEND: % among organizations that have high benefits realization maturity % among organizations that have low benefits realization maturity Met original goals/business intent Finished on time Finished with budget FIGURE 1 BENEFITS REALIZATION AND PROJECT OUTCOMES Organizations spend considerable effort in development of business cases for investments. However, in many organizations the business case is seen as a bureaucratic hurdle to be cleared in order to get required resources, especially financial. Their focus is on the technology and its costs, with only a cursory discussion of benefits, or of the other changes that the organization might have to make to actually realize benefits from the use of the technology changes that could impact the business model, processes, people s competencies, technology, organizational structure etc. Business cases are also all too often treated as one-off documents that are rarely looked at again once the required resources have been obtained other than, possibly, at a post-implementation review. As a result, organizations may (i) have limited or no shared understanding of expected benefits from their investments; (ii) fail to understand and manage the full scope of organizational change required to realize those benefits, and consequently significantly underestimate the complexity and associated time, cost and risk impact; (iii) lack clear accountability (and associated consequences) for the realization of benefits; (iv) lack metrics to know if claimed benefits are being realized and, consequently, resort to forcing or extracting benefits with no traceability back to the business case; and (v) fail to come close to realizing the potential benefits from their investments. * Project Management Institute, 2015 PMI Pulse of the Profession Report, Copyright and all rights reserved. Material from this publication has been reproduced with the permission of PMI.

7 5 SA/SNZ TS 8019:2016 An April 2012 survey from Moorehouse in the UK has shown that less than 24% of projects track the benefits upon completion. This raises a challenge for the leadership of organizations related to the governance of their investment decisions. The failure of organizations to step up to this challenge is disturbing. The consequences are often catastrophic, with the costs being borne by taxpayers and shareholders, and the opportunity cost the value not being delivered having huge economic and social impacts. This Technical Specification aims to raise the profile of this issue and provide guidance to the governing bodies to help them ask the right questions and promote the culture of accountability on benefits realization in their organizations. Moorhouse Survey, Benefits of Organizational Change, April 2012.

8 SA/SNZ TS 8019: STANDARDS AUSTRALIA/STANDARDS NEW ZEALAND Australian/New Zealand Technical Specification Governance of benefits realization for IT enabled investments SECTION 1 SCOPE AND GENERAL 1.1 SCOPE AND APPLICATION Scope This Technical Specification provides guiding principles on the governance of benefits realization for IT enabled investments. It proposes a framework for governance incorporating definitions, principles and a model Application This Technical Specification is applicable to IT enabled investments and can be easily extended to include other investments. This Technical Specification applies to the governance of benefits realization of such investments, and does not focus on the delivery of the capability, which is addressed in AS/NZS It applies to the entire business life cycle of the investments, from conception to realization, with a focus on realizing intended business outcomes, benefits and value. This Technical Specification is intended for use by the governing bodies and executive managers of organizations (including owners, board members, directors, partners and senior executives) and those with responsibility for identification, definition, tracking and optimization of benefits realization. 1.2 GOVERNANCE OF BENEFITS REALIZATION Principles Section 3 outlines principles for the governance of benefits realization that aim to balance value opportunities and risks arising from IT enabled investments Performance Good governance of benefits realization for IT enabled investments ensures that investments contribute positively to the performance of the organization and that the governing body and management are informed about the risks associated with benefits realization for IT enabled investments at conception and throughout the investment life-cycle. The outcomes of good governance of benefits realization include the following: (a) Standard terminology around the investment life-cycle. (b) Clarity of desired outcomes of investments, the expected contribution of the investment to those outcomes, and how internal and external factors can impact the achievement of those outcomes. (c) Benefits which are SMART (Specific in terms of the expected outcomes, Measureable, Attainable, Relevant, and Timely). COPYRIGHT

9 SA/SNZ TS 8019:2016 Governance of benefits realization for IT enabled investments This is a free sample only. Purchase the full publication here: Or contact Standards New Zealand using one of the following methods. Freephone: (New Zealand) Phone: enquiries@standards.govt.nz