We were recently asked by a client for our views on how to optimise their IT governance model, in the context of the overarching SIAM operating model.
In our experience, establishing an effective governance model which spans the entire supplier eco-system is vital to the success of a SIAM operating model.
The governance model must be applied consistently, and cover the entire service lifecycle from project demand, through to design, delivery and operation.
Another critical success factor is to scale the extent of governance to the size, complexity and risk of the supplier. In other words, apply governance in a way which is commensurate with the eco-system supplier’s size, complexity and risk.
Where organisations have selected an external Service Integrator, as is often the case, the organisation must also decide to what level it will devolve governance responsibility. This decision goes hand-in-hand with the “make versus buy” decisions in terms of the SIAM scope and process execution responsibilities. In practical terms, this results in the decision of whether to let the external Service Integrator directly manage the suppliers in its scope, or whether the customer organisation should own and manage this governance. In our experience, there are merits and drawbacks to either model. You can read more about our “make versus buy” approach, in our SIAM Graphic Equaliser blog
The governance model must consider many factors, such as risk, complexity and organisational culture, to design a model which provides sufficient freedom to the outsourced Service Integrator and the suppliers it manages, whilst also satisfying the customer organisation’s own desire to demonstrate that it is adequately controlling the quality of service delivery from its suppliers.
Often the contractual construct will have a big influence on the final governance model, particularly where the customer’s supplier contract already has non-negotiable governance requirements built into it. One final factor to consider is the capability and capacity within the customer organisation to absorb the workload of a SIAM governance model. Where capability and/or capacity is low, it is often preferable to give greater freedom to the service integrator, to allow them to bring their best practice experience to the operation of governance models, as well as relieving the workload on the customer organisation.
In summary, rather than prescribing a particular governance model design, we recommend the following guiding principles are considered:
- There is no one-size-fits-all approach.
- Consider the extent to which you wish to devolve governance to the Service Integrator
- Consider the size, risk and complexity of each supplier in your portfolio, adopting a governance model which is commensurate for each supplier.
- Ensure the governance model spans the entire service lifecycle, and involves the suppliers who are engaged in each phase of the lifecycle
- Consider the capacity and capability available within the customer organisation to operate the SIAM governance model
