A set of technology governanace questions for every charity in NZ

1. Technology Governance Questions
Page 1 of 4
Dale Jennings Associates
www.dalejennings.co.nz
BACKGROUND
The original questions are from a McKinsey and company article published online at
http://www.mckinsey.com/insights/business_technology/the_do-or-die_questions_boards_should_ask_about_technology
You will need to register (for free) before getting access to this useful resource site.
The original questions are designed for larger commercial organisations but they are re-framed for a New
Zealand Common Good Organisation
A Common Good Organisation is any NGO, non-profit, more than profit, charity or other socially focussed
organisation. The term is taken from the Common Good Organisation Development model from Judith
McMorland and Ljiljana Erakoviƈ.
This development model is a useful tool for development and organisational design
More information and the book can be found at CGO transitions
http://www.cgotransitions.co.nz/

2. Technology Governance Questions
Page 2 of 4
Dale Jennings Associates
www.dalejennings.co.nz
McKinsey
Question
Common Good
Questions
McKinsey
Sub-questions
Common Good
Sub-questions
Thoughts
1: How will IT
change the basis
of competition in
our industry?
1: What do our
stakeholders
(separately and
collectively) expect
of our use of IT?
 Who are our emerging
competitors?
 How is technology helping us win
against traditional and new
competitors?
 How can we use our technology to
enter new markets?
 How does our technology
compare to that being used by
other agencies?
 Are new players emerging
through effective technology use?
 How can we use our technology to
offer new services? Obtain further
funding or contracts?
o If you seek contestable funding you have
competitors
o Will individualised funding bring more
competitive pressures to services?
o Three “customer” perspectives to
consider; contract funders, donors and
clients.
o Does technology have a role in supporting
the collaboration Government wants to
see?
2: What will it
take to exceed
our customers’
expectations in a
digital world?
2: What will it take
to meet or exceed
our client (or
donor)
expectations in a
digital world?
 How does our customer
experience compare with that of
leaders in other sectors?
 What will our customers expect in
the future, and what will it take to
delight them?
 Do we have clear plans for how to
meet or exceed their
expectations?
 How does our client and/or donor
experience compare to that of
 What will client (or donor) needs
and expectations be in the future?
What will it take to meet them?
 Do we have clear plans for how to
meet needs and exceed
expectations?
o How will the use of mobile phones change
the communication needs and
expectations of clients?
o Is our clients’ lack of access to the internet
an opportunity or a threat?
3: Do our business
plans reflect the
full potential of
technology to
improve our
performance?
3: Do our plans
reflect the full
potential of
technology to
reduce operational
costs and improve
client outcomes?
 Has the P&L opportunity and
threat from IT been quantified by
business unit and by market?
 Will our current plans fully
capture the opportunity and
neutralise the threat?
 What is the time horizon of these
plans and have they been factored
into our future financial
projections for both business and
IT?
 Has the financial opportunity and
threat from technology been
considered by organisational
function and by client service?
 How do our current plans fully
capture the opportunity and
neutralise the threat?
 What is the time horizon of these
plans and have they been factored
into our future financial
projections for services,
operational functions and
technology?
o Do all services or divisions the face the
same opportunities and threats?
o Different types of investment have
different lifetimes.
o How will we engage with the financial
challenge of moving to cloud - capex
funding to opex funding?

3. Technology Governance Questions
Page 3 of 4
Dale Jennings Associates
www.dalejennings.co.nz
McKinsey
Question
Common Good
Questions
McKinsey
Sub-questions
Common Good
Sub-questions
Thoughts
4: Is our portfolio
of investments
aligned with
opportunities and
threats?
4: Is our portfolio
of investments
aligned with
opportunities and
threats?
 How well is our IT investment
portfolio aligned with business
value with regard to opportunities
and threats?
 How well does the IT portfolio
balance short-term and long-term
needs?
 Do we have effective value
assurance processes in place to
mitigate execution risk?
 How proportional is our It
investment aligned with our
revenue sources?
 How well does the IT portfolio
balance short-term and long-term
needs?
 How does our change
management framework the
mitigate risks inherent in new
technology projects?
 How do we “experiment” with
technology to maximise
opportunities and minimise risks?
o Balancing the short and long term needs is
critical. Rather than delay spending when
money is tight plans should be
reconsidered.
o Partnerships and grant funding are vital
when experimenting with technology
5: How will IT
improve our
operational and
strategic agility?
5: How will IT
improve our
capacity and
capabilities?
 How does our business and IT
agility measure up with that of our
competitors?
 How do our IT plans increase our
business and IT agility?
 Are our sourcing relationships
increasing or reducing our agility?
 How does our capacity and
capability compare to that of
other agencies?
 Do our IT plans increase our
capacity and capabilities?
 How fast can we recognise and
realise new opportunities from
technology?
o What does agility mean to you?
o Can you make use of cloud provisioning
for trails, testing etc.
o Suppliers provide both technical capacity
and capability. Is the Trust limited by
either?
6: Do we have the
capabilities
required to
deliver value from
IT?
6: Do we have the
capabilities
required to deliver
what we need from
IT?
 Do we have the capabilities we
need to drive full value from our
existing IT systems?
 What are the weakest links in our
capabilities?
 Do we have enough IT literate
executives?
 What is our plan for upgrading our
capabilities?
 Are we getting the most from our
existing IT systems?
 How could we get more value
from them?
 Do our managers use technology
appropriately?
 What is our ongoing staff
development plan for technology?
o Capability improvements need a
development programme. Look for
funding e.g. MSD funding under ISO CIR
o A significant improvement would be
moving to simple databases rather than
using spreadsheets as the data tool of first
resort.
o Capability is needed at individual,
management and governance level

4. Technology Governance Questions
Page 4 of 4
Dale Jennings Associates
www.dalejennings.co.nz
McKinsey
Question
Common Good
Questions
McKinsey
Sub-questions
Common Good
Sub-questions
Thoughts
7: Who is
accountable for IT
and how do we
hold them to
account?
7: who is
accountable for
technology
development and
how are they held
to account?
 What is our operating model for IT
and how is it aligned with our
business priorities?
 Who is accountable for delivering
business value from It – both
overall and by activity?
 Are those accountable being
measured using business-friendly
scorecards that create the right
incentives?
 What is our IT operational
framework? Is it clearly
articulated and understood by
suppliers and service managers?
 How do we measure IT value
beyond cost? What are our
targets for IT value?
o The board need to see the framework
exists and have confidence it is
appropriate. They do not develop it
themselves although policy can shape it.
8: Are we
comfortable with
our level of IT
risk?
8: Are we
comfortable with
our level of IT risk?
 Do we have a comprehensive
understanding of the IT risk
factors we face?
 How is our level of IT risk
measured, and is it aligned with
the company’s overall risk
appetite?
 How are we reducing our IT risk
on an ongoing basis?
 Who is responsible for overseeing
the level of IT risk?
 Are the IT risk factors understood
for each funding source and
service we provide?
 Is the level of risk aligned with the
consequences of event?
 Who is responsible for measuring,
reporting and mitigating the level
of IT risk?
o The setting of acceptable risk levels is a
governance issue. Compliance assurance is
management.
o Different services and functions can have
different risk types and (impact) levels
 Operational failure
 Reputational
 Financial
 Compliance
9. Are we making
the most of our
technology story?
9. Are we making
the most of our
technology story?
 What are the key messages we
should communicate?
 How when and to whom should
they be communicated?
 What are the key messages we
should communicate?
 How when and to whom should
they be communicated?
o Communication needs vary by stakeholder
group
 Government
 Competitive agencies
 Collaborative agencies
 Donors
 Philanthropic funders
 Clients
 Staff