Many leaders think of governance as the decisions that rest with senior executives related to formulating business strategy and aligning resources to ensure execution of that strategy. We define governance more broadly, as a company’s allocation of decision rights and accountabilities: who has the authority to make—and is held accountable for—key decisions that influence the need for and the value derived from technology? Our research has shown that a clear specification of these two governance components is key in designing digital organizations1 and a must-have for making good progress on digital transformation efforts.2 Clear decision rights and a corresponding accountability framework can also ensure coherent decision making when companies devolve decision rights to empowered teams to deal with the accelerated pace of the digital era.3
From the boardroom to empowered teams: how effective is your digital governance?
1 Learn more about Organizational Explosions that companies face on their digital transformation journey
2 Learn more about Digital Design and Transformation
3 For more details on current MIT CISR research projects about digital governance, click here