Governance of IT for the Organization

Governance of IT for the Organization

ISO/IEC 38500:2015, titled “Governance of Information Technology for the Organization,” is an international standard providing guidelines and principles for governing bodies of organizations to use in their governance of information technology (IT). Developed by the International Organization for Standardization (ISO) and the International Electrotechnical Commission (IEC), this framework aims to ensure that IT supports the organization’s strategies and objectives effectively.

What is ISO/IEC 38500:2015?

ISO/IEC 38500:2015 offers a set of high-level principles and guidelines for corporate governance of IT. It is designed to be applicable to organizations of all sizes, from small businesses to multinational corporations, and across all sectors, including public and private sectors. The standard helps organizations understand and fulfill their legal, regulatory, and ethical obligations concerning their IT resources.

Origin of the Framework

ISO/IEC 38500:2015 was developed by ISO/IEC Joint Technical Committee 1, which specializes in information technology. It builds upon earlier work and publications in the field of IT governance, including standards and models that preceded its publication. The standard was established to provide a global benchmark for effective governance of IT, reflecting the growing importance of IT in achieving business goals and creating value.

How It Works

The framework is built around six core principles for good corporate governance of IT:

1. Responsibility: Everyone has clear and accepted responsibilities for the outcomes of IT usage.
2. Strategy: IT must align with and enable the business strategy.
3. Acquisition: IT acquisitions should be made for valid reasons, with clear and transparent decision-making processes.
4. Performance: IT resources must be used responsibly to deliver value to the organization.
5. Conformance: IT must comply with all relevant laws, regulations, and policies.
6. Human behavior: IT policies, practices, and decisions should respect human behavior, including culture, ethics, and norms within the organization.

These principles are supported by a model for good governance that encourages organizations to evaluate, direct, and monitor IT usage to ensure alignment with business goals.

Why It Is Valuable

ISO/IEC 38500:2015 provides several key benefits to organizations, including:

• Alignment of IT and Business: Ensures that IT investments and initiatives are closely aligned with business strategies and objectives.
• Risk Management: Helps identify and manage IT-related risks, protecting the organization and maximizing the value from IT investments.
• Resource Optimization: Promotes efficient and effective use of IT resources, ensuring they are utilized in a way that delivers value to the organization.
• Compliance and Ethics: Guides organizations in meeting their legal, regulatory, and ethical obligations concerning IT.
• Stakeholder Confidence: Enhances confidence among stakeholders through transparent and effective governance practices.

When and How to Use It

Organizations should consider implementing ISO/IEC 38500:2015 when seeking to improve their governance of IT. This may be particularly relevant during periods of significant IT investment, organizational change or when addressing compliance requirements. The framework can be used:

• To assess current governance practices against an internationally recognized set of principles.
• As a guide for establishing or improving IT governance policies and practices.
• To facilitate communication and understanding between the governing body, management, and IT specialists.

Implementation involves:

1. Understanding the current state of IT governance within the organization.
2. Identifying gaps between current practices and the principles outlined in ISO/IEC 38500:2015.
3. Developing and executing an action plan to address these gaps which may involve changes to policies, procedures, roles, and responsibilities.

Shortcomings/Criticisms

While ISO/IEC 38500:2015 is widely recognized for its comprehensive approach to IT governance, some criticisms include:

• Generality: The high-level nature of the guidelines may require significant interpretation to apply in specific organizational contexts.
• Implementation Challenge: Smaller organizations may find the framework challenging to implement due to limited resources or IT governance expertise.
• Rapid Technological Change: The pace of technological advancement may outstrip the framework’s ability to provide timely guidance.

The ISO/IEC 38500:2015 offers a valuable framework for organizations seeking to ensure that their use of IT is aligned with their business goals, compliant with regulations, and effectively governed. By adhering to its principles, organizations can improve their IT governance practices, thereby enhancing overall organizational performance and stakeholder confidence. However, successful implementation requires a tailored approach that considers the organization’s specific context and challenges.