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IT Governance: Implementing Frameworks and Standards for the Corporate Governance of IT by Alan Calder

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CHAPTER 21: MAKING THE BUSINESS CASE FOR IT GOVERNANCE

It can be surprisingly difficult to make the business case for IT governance. While 93% of business leaders think IT is important for delivering the strategy, 62% say IT is not always on their board agenda123.

In other words, the business case for IT governance still has to be made in each and every organisation. A starting point is the case for corporate governance as more than just a box-ticking exercise: as long ago as 1996, McKinsey and Company found that two-thirds of the companies in a survey would pay an 11% premium for the stock of a company with good governance practices124.

More than that, ‘companies whose boards engage in one or more of [the] three governance practices that ...

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