IT governance could be industry's biggest challenge yet

As EU regulatory legislation passes through Parliament with IT in its sights, the industry could be facing its biggest challenge yet, according to analysts.

With the threat of jail sentences hanging over CEOs or CFOs whose companies don't comply with IT governance, execs want to be seen to be doing the right thing – and have landed their CIOs with the job of sorting out the compliance chaos.

A new report from analyst house Butler Group, IT Governance – The Exploitation of, Control and Measurement of Information and Technology Resources, says that a good starting point for worried CIOs should be understanding exactly what IT governance is. The report defines governance as aligning corporate and IT strategy, or, more specifically, safeguarding against criminal activity inside or outside the firm – and then working out a strategy to manage it.

Butler Group suggests a divide and conquer approach – setting up teams each with individual responsibilities to assess and deal with particular areas of governance.

Mike Thompson, principal research analyst at Butler Group, told silicon.com that education is another key element in governance: "Although the technology infrastructure is key, implementation of governance goes across the whole organisation. CIOs should explain to those who may not feel that they're involved and get them to tie into that."

However, while CIOs might not relish their increased workload, Butler Group president, Martin Butler, says that it could work in their favour, boosting a CIO's standing and responsibilities. "The keys to the kingdom have been handed to the CIO," he said in a statement. "It is simply a matter of picking them up and using them."

While governance requirements will no doubt become stricter and more numerous with time, Butler Group says that companies who consider them a burden could be looking down the wrong end of the telescope. Thompson told silicon.com: "Organisations will become more structured and performance-based as a result. Although the drive may come from external legislation that organisations may be forced into complying with, there are benefits for them."