Proposal to Optimize Johnson & Johnson’s It Governance Model Essay

892 Words Jul 3rd, 2015 4 Pages
To: Johnson & Johnson Leadership Committee Date: April 29, 2015
From: LaVerne Council, CIO
Re: Proposal to Optimize Johnson & Johnson’s IT Governance Model

Context: Johnson & Johnson’s current IT governance structure consists of a highly decentralized system. The company may be experiencing duplicative efforts across business units and markets, which may be hindering overall growth and financial success. Operating companies focus primarily on cost-reduction strategies that are relevant to their respective markets when they should also be promoting business growth opportunities that can be fueled by IT.
Proposal for Optimized IT Governance Model: Given the breadth of
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Projects $250,000-$499,999 will be handled by the ITOG exclusively with written communication to the IT steering committee. Projects greater than $500,000 will be directly sent to the IT steering committee. This added level of checks and balances will foster greater collaboration, innovation, and an avenue to drive the end goal.
Full Management Responsibility
Johnson & Johnson will adopt service-level agreements – or SLA – and chargebacks to clarify costs for IT services and establishing a formal tracking of business value from IT. This will allow the organization to determine the payback on completed projects, which can help focus the attention on generating the one billion dollar revenue target. This will only be operational if there is a transparent mechanism to promote cross-departmental accountability.
The SLA will comprise best practices and standards developed over time, with input from IT leads and staff, to provide support that aligns with organizational needs, support capacity, and industry standards. These processes are subject to change, with notice, and with end-user comment and input via a formalized Change Review Process, as IT continually seeks to improve its methodologies.
Cost Minimization Efforts: For the upcoming fiscal year, the IT governance body is going to focus its attention on cost minimization efforts. These will include minimizing out-sourcing of

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