21_743593 bindex.qxd 9/13/05 12:05 PM Page 265

Index

Aberdeen Group, IT spending forecast, Applied information economics (AIE), 28 137, 138, 161–164 ABN-AMRO, 107, 227, 247 praise, 163–164 Accountability Arguments/specializations, 184–185 concepts/promises, 41 Arthur, W. Brian, 80–82 forms, 1–2 Arthur Andersen, fanaticism, 21 responsibility, 10 Auditing, dissemination, 8 Accountants, 235 Autonomic computing, 33–34 Accounting, dissemination, 8 Action, implementation, 171 Babble, limits, 63–68 Activity-Based Budgeting (ABB), 142 Balanced Scorecard (BSC), 88, 104, Activity-based costing (ABC), 11, 43, 138, 159 70, 137 criticism, 159–160 advantages, 152 development, 241 criticism, 158–161 portfolio approach, 111–115 implementation, 143–150 usage, 236 IT relationship, 150–153 Barclays Bank, fanaticism, 21 portfolio approach, 111–115 Bartelsman, Eric, 54, 57 price, 150–153 Behavior refinement/parameterization, desire, blind spot, 172–174 145–146 factors, 170 scenarios, 145–146 importance, 243–247 system, establishment, 139 stimulation, 169 usage, 75 Benko, Cathleen, 122 examples, 151 Betrayed trust, impact/challenges, 16 value, underestimation, 142 Blind faith, 16–17 Activity-Based Management (ABM), Blind trust, 212–213 142 Blodget, Henry, 22 Ahold scandal/problems, 179, 232 Bolkestein, Frits, 229 Alignment, 46 Booch/Jacobsen/Rumbaugh, software abandonment,COPYRIGHTED 42 MATERIALdevelopment paradox, 33 Ambition/limitations, human measure, Bounded rationality, 182 164–166 Bovenberg, Lans, 57 American CIO Council, 115 Bricolage, 37, 199–200 Americanization, 221–222 Broadbent, Marianne, 42, 63–65, 75, Annual Corporate Governance 82–83 Statement, 230 IT portfolio pyramid, 95 Application architecture, 101 opinion, 81

265 21_743593 bindex.qxd 9/13/05 12:05 PM Page 266

266 INDEX

Broker, 205 Cisco Systems, e-business status, 53–54 Business Clinger-Cohen Act (IT Management architecture, 101 Reform Act of 1996), 6, 109, IT integration, 106 222–226 motivation, 171–172 budgeting, improvement, 118–119 portfolios, 91 expertise, absence, 118 responsibility, 43 functionality, 225–226 Business Control Models, 237 observance, 117–119 Business performance, 43. See also Coase, Ronald, 174 Corporate governance Committee of Sponsoring relationship, 10 Organizations of the Treadway types, 3 Commission (COSO), 237 Business process reengineering (BPR), Common sense, 14–15 41, 48, 58 types, 3 Business-Technology-Organization- Competing Value Framework, 203 Process People (BTOPP), 149 Complexity impact, 56 Cameron, Bobby, 64–65, 68, 71 side effect. See Strategy Cap Gemini America, 35 Computer Science Corporation (CSC), Capability Maturity Model (CMM), 72–73 11, 103 Consortium of Advanced Capitalism, distribution, 195–197 Manufacturing International premises, 196–197 (CAM-I), 141 Carr, Nicholas, 48–49, 58 Control, 193–197 Cash flow, financial metric, 98 drama, 200 Casti, John L., 56 drift, 254 Center for Information Systems tolerance, 197–203 Research (CISR), 66 Control Objectives for Information Chambers, John, 53–55 and Related Technology Change, overseeing, 190 (COBIT), 14, 191, 235 Charisma, 216–217 assembly, 238–240 Chief Executive Officer (CEO), 82 balanced scorecard, relationship, signing. See Reports 240–241 Chief Financial Officer (CFO), 223 function, 240 CIO level, comparison, 80 IT governance maturity model, signing. See Reports 255–258 Chief Information Officer (CIO), 63, standards, 237 223–226 world standard, 236 responsibility, 131 Cooper, Robin, 141 strategic role, 79–85 Cooperation, coercion (contrast), tasks, 224 207–209 Chief Information Officer Council, 124 Coordinator, 205 Chief Process Officer, 81 Corporate governance, 259–260 Chief Strategy Officer (CSO), 82, 124 business performance, 9–10 Chief Technical Officer (CTO), 82 European type, 9 Ciborra, Claudio, 36–37, 194, 197–200 management perspective, 7–9 corporate management Corporate responsibility, 27–28 transformation, argument, Corporate Responsibility Office 201–202 (CRO), 27 21_743593 bindex.qxd 9/13/05 12:05 PM Page 267

Index 267

Cost Management System research Enron, 25 project, 146–147 failure, 19–21 Covey, Stephen R., 207 fraud, 6, 16, 19 Credit Suisse First Boston, 156 presidential intervention, 26–28 correspondence, 22 Enterprise architecture fanaticism, 21 need, 100–102 Critical Success Factors (CSFs), 77 strategic information asset base, 100 Cyert, Richard, 180 Enterprise Financial Interface, 96 Enterprise resource planning (ERP), 94 Dashboards, usage, 129–130 Europe Data architecture, 101 fraud, tracking ability, 22 De Vries, Manfred Kets, 213, 215 governance code, existence, 230–231 Deception, 16–17 legislation, 229–231 Decree, dialogue shift, 57–59 example, 231–233 Deep support, 196 production increase, IT impact, 57 Define Measure Analyze Improve productivity measurement, 54 Control (DMAIC), 243 European Corporate Governance Dell Computers, e-business status, Forum, establishment, 231 53–54 European Foundation for Quality Design Measure Analyze Design Verify Management (EFQM), 191–192 (DMADV), 243 European Institute for Business Deutsch, Waverly, 59–60 Administration (INSEAD), 209 Deutsche Bank, fanaticism, 21 European Member States, corporate DHS & Associates, 162 governance (definitions), Dialogue 259–260 babble, 61–62, 74 exT movement, 70 promotion, 45 Directors, 205 Facilitator, 204 structure/role/duties, 8 Federal Bureau of Investigation (FBI) Documents, change, 228 audit report, 117–118 Donaldson, William, 22 failure, 132 Drapeau, Anne Seibold, 210–211 Federal Enterprise Architecture Dutch Corporate Governance Code, Framework (FEAF), 101–102 231 Federal Enterprise Architecture Dutch legislation, 231–233 Program Management Office (FEAPMO), 102 E-business, 57–59 First Boston, EVA adoption, 156 eCommerce Portal, 96 Forrester Research, 20, 43, 59, 68, 72 Economic value added (EVA), 11, 43, alignment, notion, 85 137, 138 business-owned IT, 76 business modeling, 158 corporation management EVAngelism, 156–158 transformation, argument, success, 158 201–202 full-cycle governance, relationship, e-business suggestion, 194 138 Foss, Kristen/Nicolai, 176–178 planning/forecasting, online training, Frameworks, 235 158 helpfulness, 235–236 portfolio approach, 111–115 selection, 250–252 reporting infrastructure, 158 tools, examples, 11 21_743593 bindex.qxd 9/13/05 12:05 PM Page 268

268 INDEX

Full-cycle governance, 128, 210 Hayek, Friedrich, 174 implementation, 158 Homo economicus rationalis, 181 roles/positions, 130–131 Hubbard, Doug, 161–164 Full-cycle IT governance, 4 Human beings, fallibility, 180–182 Functional architecture, 101 Human relations model, 203–204 Functions, automation, 33–34 Human Resources Management (HRM) subprocess, 239 Galford, Robert, 210–211 Humanity, viewpoints, 182–184 Gartner Conference, 227 Gates, Bill (Trustworthy Computing IBM, e-commerce response, 29 memo), 34–35 IDEF0, 147 Gauss, Carl Frederick, 242 Incorporation, articles, 8 General Accounting Office (GAO), Information advisory report, 223 architecture, 101 General Electric, Global eXchange behaviors/values, 244 Services, 25 dissemination, 8 Generally Accepted Accounting management Principles (GAAP), 11, 21 goals, 236–240 Genuine trust, 213 practices, 244 Gerstner, Lou, 47 orientation, 243–247 Giga Information Group, 43, 77, 163 passion, 245–247 Gliedman, Chip, 77–78 proof, 247 Global leadership, 209 paradox, 55–56, 119–121 Globalization, 221–222 processing, modes, 203–204 Goals technology practices, 244 achievement, 126 Information and Communication appearance, 185–186 Technology (ICT), 152 setting, 125 project, 62 Goldman Sachs, EVA adoption, 156 Information Orientation, 245 Governance Information Services Procurement economic dimensions, 8 Library (ISPL), 11 economic justification, 171 Information Systems Audit and economics, 174–176 Control Association (ISACA), guidelines, elements, 8 237 human dimension, 1 Information Technology Governance mechanisms, Institute (ITGI), 192, 214, advantages/disadvantages, 236–237 66–67 Information Technology Infrastructure simplicity, 185–186 Library (ITIL), 152, 235 structure, usefulness, 63–68 Information Technology Investment types, 3 Management (ITIM) Government managers, involvement, maturation model, 107 119 Information Technology Investment Government Performance and Results Program System (I-TIPS), Act, 123 120–121, 129 Greed, discussion, 18–19 Information Technology (IT) Greenspan, Alan (“irrational ambitions/misconceptions, 2 exuberance”), 16, 18–19, 21, 213 architecture, 101 Groenink, Rijkman, 227 behavior, 43 21_743593 bindex.qxd 9/13/05 12:05 PM Page 269

Index 269

blind spots, 56 Information technology (IT) business enabler, 104 governance, 3, 108, 191–193 challenges, 28–35 essentials, 10–13 coherence, 43–44 examples, 11 confusion, 58 measurement/control loops, 214 costs, increase, 32––33 mechanisms/techniques, 87–88 death, 68–72 structures, 87–88 democracy, 59–61 Information technology (IT) portfolio discussion/regulation/measurement, management, 91, 115. See also 42–43 Quantitative IT portfolio e-business, relationship, 48–53 management economic justification, 76–79 business, 121 economic-based business focus, 41 experience, 121–122 Enron failure, link, 25–26 guidelines, 126 full-cycle business governance, 3–4 holistic approach, lessons, 128 impact, 55. See also Europe lessons, 126–131 infrastructure, relationship, 48–53 outlines/architecture/calculation, investment 98–104 business performance, pioneers, 137 relationship, 30–31 practice, 123–126 decisions, 126–127 pressure, 116–117 leadership, 190–192 Information technology (IT) portfolios, legislation, 92 43–44 management, 42 approach, practice, 95–98 basis, 45 Information Technology Performance goals, 236–240 Management Group (ITPMG), managers 159 self-worth, proof, 84 Information Technology Steering success factors, 83–85 Committee (ISC), 67 measurement, 46–48 Infrastructure, 50–52 occurrence, 45–46 Initiatives, portfolio lessons, 126–127 money, 42 Innovator, 205 MPT, relationship, 116 Institutionalized mistrust, net profit, 43–44 management, 212–213 portfolios, objectives (definition/ Integrated Computer-Aided communication), 128–129 Manufacturing (ICAM), 147 processes, 42 Integrated EVA scorecard, 158 control, 239 Intentions, 182 productivity, 30 Internal process model, 205 projects Internal Return Rate (IRR), 11, 160 governance, 67–68 International Accounting Standards success, percentage, 31–32 (IAS), 11 role, 23–26 International Monetary Fund (IMF), service performance, 104 policy imposition, 229 simplicity, 72–76 International Software Benchmarking system, reliability, 34–35 Standards Group (ISBSG), 103 total economic impact, 76–79 Internet value (overlooking), accountants impact, 23–26 (impact), 247–250 recession, 17 21_743593 bindex.qxd 9/13/05 12:05 PM Page 270

270 INDEX

Interorganizational collaboration, 131 Markowitz, Harry, 93, 115–116 Intervention, timing, 177–178 Maturity Investment counselors, power, 21–22 IT portfolio management, relationship, 104–107 Jensen, Michael, 210 Maxmin, James, 173, 195–196 Jones, Capers, 103 McFarlan, F. Warren, 116, 122 Jooste, Jan, 179 MCI, fraud, 16, 56 McKinsey consultancy agency, Kaplan, Robert, 141 problems, 24–25 Key Performance Indicators (KPIs), 77, Mentor, 204 159, 235, 244–245 Merrill Lynch Kling, Arnold, 24 correspondence, 22 Koestenbaum, Peter, 206 fanaticism, 21 KPMG, division, 20 Meta Group (Gartner Group), 91, 153, 163, 240 Laws, usage, 178–179 Metricnet, 104 Leadership, 190 Metrics, examples, 11 distribution, 193–197, 201–203 Microeconomic e-business, status, evolution, 200–203 53–57 examples, 11 Millennium problem, 28–35 language, interaction, 215–216 Miller, Merton, 93, 115–116 lessons, 127–128 Modern Portfolio Theory (MPT), measurement/control loops, 214 115–116 paradox, 216–217 Monitor, 205 qualities, 215 Montesquieu, Baron de, 4 roles, 203–206 Moore’s Law, impact, 50 Legislation/regulation, examples, 11 Mores, usage, 178–179 Legislators, supervisors, 221–222 Lehman Brothers, fanaticism, 21 Net Operational Profit after Taxes (NOPAT), 154, 157 Macroeconomic e-business, status, Net Present Value (NPV), 11, 98, 155, 53–57 160 Macroeconomic productivity, New Economy problems, 30 collapse, 16 Management. See Portfolio miracle, 23 management Noordzij, Karel, 197, 200 economy, 174–176 corporate management forms, 1–2 transformation, argument, improvement, 190 201–202 platitudes, ineffectiveness, 59 Norton, David, 86 problems, 36–37 responsibility, 10 Objectives, project alignment, 122–123 Management/business ICT alignment Omnicom, scandal, 19 implementation chains, Open systems model, 204–205 261–262 Organizational architecture, lessons, March, James, 180 127–128 Marchand, Donald, 165, 243–246 Organizational logic, change, 194 21_743593 bindex.qxd 9/13/05 12:05 PM Page 271

Index 271

Organizational Project Management Project Management Institute (PMI), Maturity Model (OPM3), 110–111 110–111 Pryor, Tom, 146–147 Organizations Public Company Accounting Oversight economic-based control (cost Board (PCAOB), 229 control), 138–143 governance, 138 Quantitative IT portfolio management (QIPM), 102–104, 121–122 Personnel management practices, 239 Quinn, Robert, 203, 206–207 Personnel recruitment/promotion control objectives, 239–240 Rabobank Nederland, KIMBIA Peterson, Ryan, 195, 208–209 portfolio model, 261–262 PMOffice package, 96 Rapid Economic Justification (REJ), Portfolio management, 131–133. See 77–79 also Information technology Rational amigos, 33 portfolio management Rational Economic Man, 172 aspects, 125–126 Rational goal model, 205 development, 115–123 Real economic value, 153–158 recommendations, source, 124–125 examples, 155–156 tools, 129 Real-Cost-of-Ownership (RCO), 153 Portfolios. See Business Realism, basis, 35–37 approach, involvement Realists (explanation), 93–95 control, 206–207 costs/benefits/risks, 91 impact, 17 integration, 92 Reporting, inconsistency, 228 interdependence, 106–107 Reports, CEO/CFO (signing), 228 performance, 108–111 Results chains, 147–150 examination, 126–127 Results-Based Management (RBM), 148 thinking/activity, 223–225 Return on Assets (ROA), 155 PortfolioStep, tool-independent Return on Investment (ROI), 153–158, framework, 122–123 246 Powers, separation, 4–7 examples, 155–156 failure, 16 Risks, discernment/elimination, 125 PricewaterhouseCoopers, division, 20 Roe, Mark, 9 Producer, 205 Rollins, Kevin, 53 Products, value generation (example), Rules, issuance, 220 156 Professionalism, simplicity Salomon Brothers, fraud, 22 (relationship), 73–76 Sarbanes-Oxley Act Programs/projects, performance, American Public Company 108–111 Accounting Reform and Progress, faith (crisis), 17–22 Investor Protection Act, 6 Project effect, 123–124 management, tools, 129 impact, 4–7 portfolio Public Company Accounting Reform lessons, 126–127 and Investor Protection Act management, value addition, 121 of 2002, 27–28, 227–228 21_743593 bindex.qxd 9/13/05 12:05 PM Page 272

272 INDEX

Schmid, Gerhard, 22 Thorp, John, 55, 109, 119, 149 Schrage, Michael (investment increase), Top-down decision making/strategic 32–33 alignment, 198–199 Secondat, Charles de, 4 Top-down managerial practices, 190 Self-assessment, 207 Total Cost of Ownership (TCO), 77, Self-interest, 183–184, 211 104 Shareholders, roles/rights, 8 Total Economic Impact (TEI), 77–79 Sharpe, William, 93, 116 Total Quality Management (TQM), Shiller, Robert, 23 11, 243 Simon, Herbert, 180–186, 210 Trade-offs, examination, 125 Simple trust, 212 Traditional Cost Accounting (TCA), 137 Six Sigma, 235, 241–243 Transaction costs Slator, Peter, 61–62, 74, 86 economic concept, 175 Slogans, usage, 28–29 economy, 174–176 Smith, Adam, 183 Trust. See Blind trust; Genuine trust; Software Simple trust compatibility, 29–30 building, 210–212 development, 32 guarantee, 232–233 Solow, Robert (productivity paradox), 30 regaining, 220–221 Sporkin, Stanley, 19–20 Tyco, scandal, 19 Stakeholder buy-in, 131 Standard deviations, 241–243 Unilever, IT strategy, 74 Standish Group, chaos research, U.S. lawmakers, influence, 220 31–32, 56, 106, 117 U.S. standard of living, increase, 54 Strassmann, Paul, 11, 71, 80–82, 118–119 Value creation, IT managers (impact), computer paradox, 30–31 84 Strategic focus/alignment, 85–87 Value Puzzle, 160–161 Strategic synchronization, 82 Van Alstyne, Marshall, 163 Strategy, complexity (side effect), 199 van Maanen, Henno, 152–153 Structured Analysis and Design van Tilburg, Anthony R., 121 Technique (SADT), 147 Verhoef, Chris, 83, 92, 102 Subgoal pursuit, 171 Supervision, 169 Washington State, best practices, amount, 176–178 119–120 factors, 170 Weill, Peter, 63–66, 75, 217 forms, 1–2 IT portfolio pyramid, 95 implementation, compromises, Wholonistics Leadership Group, 203 199–200 Williamson, Oliver, 174–177, 184–186 intervention, balance, 186–188 Winter, Jaap, 221 limitations, 179–182 Winter Group, corporate governance maintenance, 220 opinion, 230 means, 235 Woodham, Richard, 36 responsibility, 10 WorldCom, 56, 178 system, gaming, 210 fraud, 6, 16, 19, 220 practices, 26–27 Tabaksblat Code, 231–233 Tabaksblat Committee, 221, 232 Xerox, scandal, 19 Temptation, removal, 232–233 Thompson, Fred, 117 Zuboff, Shoshana, 173, 195–196