Governance turns off IT

New research shows IT leaders have relatively little awareness of impending business changes

Written by Lem Bingley, IT Week

Almost half of all IT managers in the UK can see no benefit in current efforts to improve corporate management standards.

An in-depth study by IT Week and sister magazine Financial Director, sponsored by IT supplier Unisys, quizzed IT leaders and financial chiefs at 400 large organisations in the UK. Thirty-seven percent could name no improvement that a greater focus on corporate governance might bring, and almost a third simply said "I don't know" when asked to suggest any likely benefit.

IT leaders were the largest group shrugging their shoulders, with 48 percent of IT chiefs giving a non-committal answer, compared with 26 percent of financial directors.

These opinions arise despite widespread efforts to improve standards of governance within UK organisations. Seventy-nine percent of IT managers and 92 percent of finance chiefs confirmed that they had witnessed an increased focus on this task in the past two to three years.

High-profile examples of inadequate controls at WorldCom and Enron have provided substantial stimulus for change.

Among those who could see benefits from improved systems for corporate governance, most cited increased accountability as an advantage. Many IT chiefs also cited the benefits of better standardisation, and some also predicted that increased investment in technology would result.

There was no shortage of criticism of tighter governance. One public-sector finance director said increased control "takes away individual responsibility and imposes bureaucratic procedures as an ineffective substitute".

More focus on accountability
"What increase in governance activity has there been in the last 2-3 years?"

 none moderate significant

IT chiefs:

21%46%33%

Finance leaders:

8%34%58%
Source: IT Week/Unisys

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