How to Improve Board Accountability in ISO/IEC 38500 Based on IT Governance Implementations: Cascading and Rolling up IT BSCs

With the standardization of Information Technology (IT) governance through ISO/IEC 38500 in the last decade, a good number of organizations have implemented IT governance (ITG) frameworks. Although it is not a fully extended practice. Given the fact that the use of balanced score cards (BSC) on ITG is not an unknown practice, the application of BSC in the implementation of ISO/IEC 38500 has been given less importance, since it normally appears as just examples of good practices. This work not only explains why the BSC's applicability to align IT with business in ISO/IEC 38500 implementations is not included in the standard, but also justifies the importance of BSC to report to the board or senior executive team in a clear way, without the details of the particular implementation framework of the standard. Thus, a framework that allows implementing IT BSCs within the context of IT governance is proposed, cascading objectives included in the strategic map through the tactical and operational level and backwards on the construction of the KPIs to better monitor IT.

[1]  Mirela Gheorghe.  Audit Methodology for IT Governance , 2010 .

[2]  Jerry N. Luftman.  Assessing It/Business Alignment , 2003, Inf. Syst. Manag..

[3]  R. Peterson.  Integration Strategies and Tactics for Information Technology Governance , 2004 .

[4]  W. V. Grembergen,et al.  Using COBIT and the balanced scorecard as instruments for service level management , 2003 .

[5]  Kridanto Surendro,et al.  A process capability assessment model of IT governance based on ISO 38500 , 2015, 2015 International Conference on Information Technology Systems and Innovation (ICITSI).

[7]  Soroosh Nalchigar,et al.  Information technology project evaluation: An integrated data envelopment analysis and balanced scorecard approach , 2010, Expert Syst. Appl..

[8]  Michael Howell-Moroney.  A Mixed Method Look at State Growth Management Policy , 2008 .

[9]  P. Weill,et al.  It Governance on One Page , 2004 .

[10]  Carlos Juiz,et al.  A Guide for Cascading and Scaling up Green IT Governance Indicators Through Balanced Scorecards: The Case of Datacenter Consolidation , 2019, ICITS.

[11]  Carlos Juiz,et al.  Implementing Good Governance Principles for the Public Sector in Information Technology Governance Frameworks , 2014 .

[12]  Carlos Juiz,et al.  Cascading ISO/IEC 38500 based Balanced Score Cards to improve board accountability , 2018 .

[13]  R. Kaplan,et al.  Linking the Balanced Scorecard to Strategy , 1996 .

[14]  Robert M. Davison,et al.  The balanced scorecard: a foundation for the strategic management of information systems , 1999, Decis. Support Syst..

[15]  Carlos Juiz.  New Engagement Model of IT Governance and IT Management for the Communication of the IT Value at Enterprises , 2011, DEIS.

[16]  John C. Henderson,et al.  Strategic Alignment: Leveraging Information Technology for Transforming Organizations , 1999, IBM Syst. J..

[17]  Suchit Ahuja,et al.  Strategic Alignment Maturity Model (SAMM) in a Cascading Balanced Scorecard (BSC) Environment: Utilization and Challenges , 2012, CAiSE Workshops.

[18]  Chang‐Soo Kim,et al.  The effects of IT expenditures on banks’ business performance: using a balanced scorecard approach , 2004 .

[19]  Shengnan Han,et al.  The Influence of Culture on IT Governance: A Literature Review , 2014, 2014 47th Hawaii International Conference on System Sciences.

[20]  Kurt Sandkuhl,et al.  Method engineering in information systems analysis and design: a balanced scorecard approach for method improvement , 2018, Software & Systems Modeling.

[21]  Derek Oliver,et al.  COBIT 5: Adding Value Through Effective Geit , 2012 .

[22]  Steven De Haes,et al.  An Exploratory Study into IT Governance Implementations and its Impact on Business/IT Alignment , 2009, Inf. Syst. Manag..

[23]  Stefan Voß,et al.  Business/IT Alignment in Two Sided Markets: A Study of COBIT 5 for Internet Based Business Models , 2014, Int. J. IT Bus. Alignment Gov..

[24]  Carlos Juiz,et al.  To govern IT, or not to govern IT? , 2015, Commun. ACM.

[25]  R. Saull,et al.  Linking the IT Balanced Scorecard to the Business Objectives at a Major Canadian Financial group , 2003 .

[26]  Mark Toomey,et al.  A survey of information technology governance capability in five jurisdictions using the ISO 38500:2008 framework , 2015, International Journal of Disclosure and Governance.