Introduction

In a recent Harvard Business Review blog post, the topic of IT Governance and its potential impact on innovation was brought to light. While the report’s title and content have stirred controversy, it cannot be denied that many IT Governance initiatives have historically taken on a policing role rather than an enabling one. This has raised concerns about whether data governance, like its IT counterpart, could inadvertently stifle innovation.

The Historical Context

In examining the roots of the issue, it’s essential to consider the historical perspective of IT management. In the past, IT departments operated with relatively unchecked spending, leading to bloated budgets and limited returns on investment for businesses. The lack of alignment between technologists and businesspeople further exacerbated the problem. Consequently, IT underwent significant changes, shifting its focus from being purely technology-centric to becoming more business-oriented.

IT Governance: A Cause or an Effect?

With this historical context in mind, it becomes crucial to question whether IT governance itself caused the limitation of IT innovation or whether it was merely a reaction to the excesses of the past. The latter viewpoint gains traction, as highly restrictive IT governance often hinders technology vision and strategy alignment with overall business objectives. Many IT organizations have shifted into operation mode, delivering projects without a broader vision, which limits their competitive advantage.

The problem that was ignored in the blog is IT history. In management’s collective memory, they relive the days when IT spent all the money allocated on technology and people (and then asked for more). Back in the day, ITs spending had no restraint. IBM would walk into a client and sell them storage based on the floor space in the data center and not business need. There was a disconnect between technologists and businesspeople that fueled the problem. Technologists would walk in and tell businesspeople, we need this, sign here. Businesspeople, not understanding, trusted and signed. Bloated IT budgets with little or no returns for the business led to oversight, IT management smack downs, and a shift in the role of CIOs from technology centric to business focused.

But IT still had some freedom to explore grander initiatives. Of course IT blew the opportunity during the “Mega Project Madness” phase. You know, those “IT knows better than the business and can reinvent the world in one big effort.” projects that ate 10s or 100s of millions of dollars and produced … “nothing”. I know of dozens of entities (public and private) that have gone this route. I’ve helped realign a few; watched others implode despite warnings; helped shutdown some; or redirected efforts to salvage others. Smack down #2 followed and the role of the CIO changed from business technologist to accountancy and tending the tech children who cannot manage their money.

Given this missing history, does it make sense to blame IT governance as the cause for limiting IT innovation? Or was it ITs bad old days that drove restrictive IT governance? I vote the latter. The blog is on target when they describe highly restrictive IT governance as non-functional. It takes technology vision/strategy out of the business which limits competitive advantage. Many IT organizations have become operations, order takers, and project delivery with limited vision. To fully realize the promise and value, IT needs to create technical strategy and integrate it with the business and overall strategy and execution.

Lee Morrow – LinkedIn

The Lessons for Data Governance

Drawing parallels between the history of IT governance and the nascent field of data governance, it is evident that data governance must avoid repeating the same mistakes. Data governance should focus on enabling business efficiencies rather than merely imposing restrictions. Legislation and regulations, such as the Protection of Personal Information (PoPIA) or international privacy rules, indeed drive the need for data governance. However, such restrictions alone should not define data governance’s purpose.

Embracing an Enablement-Oriented Approach

To ensure that data governance becomes an enabler rather than a suppressor of innovation, it is imperative to adopt an attitude of enablement in governance programs. By reducing rework and firefighting, which commonly occur in IT environments without proper governance, resources will be freed up for innovative endeavours.

Conclusion

In conclusion, while the HBR report on IT Governance’s impact on innovation might spark debate, its underlying message serves as a critical reminder for data governance. Striking the right balance between control and innovation is essential to maximize the value of data while fostering an environment that encourages creativity and business growth. By embracing an enablement-oriented approach, data governance can be a catalyst for positive change within organizations.

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