"Show me the money!" shout CEOs and CFOs in unison as CIOs shove another IT investment proposal in their faces. Can IT governance -- the latest hype term to hit the headlines -- articulate IT's role in business terms and help the money-guys see the light?

The term "IT governance" may leave senior executives scratching their heads, while vendors crank up their marketing machines to deliver their "solutions" to the IT governance problem. Some firms realize that board-level IT oversight is now required to consistently and effectively manage IT in the best interests of the organization. But how is that best achieved?

According to research firm Gartner, governance of IT is the assignment of decision-making authority and accountability to ensure desirable behavior in the use of IT.

Does this philosophy require the CIO to sit on the board? Not necessarily, but CIOs that do sit on the board can help business executives achieve a better view of their firm's IT landscape while ensuring that IT is on a level playing field with other organization functions.

This helps deliver both greater transparency in the decision-making process and consistent guidelines for project funding, evaluation, prioritization, and implementation.

IT governance will also go some way in bridging the business-IT gap that exists in many enterprises today. The concept of governance in IT requires the committed involvement of CXO-level executives, the IT organization and key business units in establishing guidelines and processes for all IT decisions. This ultimately helps IT personnel understand fully the business requirements of the organization, and aids the business executives in getting a better appreciation for what IT can deliver.

No easy way out

"There is no one-stop-shop solution for IT governance," said Kiron Chatterjee, director at Koshen Holdings, an independent consultancy. Chatterjee was previously the CEO at Asia Online and most recently served as the CIO at Gammon Construction.

He adds that IT governance is about "leadership, financial and operational management standards adhering to international best practice." This may involve top-down steering committees or governance boards. Determining where the CIO or IT manager sits within the senior executive hierarchy is another part of the process.

Les Hales, program director for at Gartner's executive program in Hong Kong, agreed that there is no single right governance structure. "It depends on company type, culture and on the drivers for governance, which could be the need for agility and flexibility or the need for consistent uniformity across the organization," he said. "People look for nice packaged answers to IT governance, but there aren't any."

Hales stressed that IT must now be considered in conjunction with business drivers. "It's a front office business issue that should be on the CEO's agenda," he surmised.

As a result we now see arguments for the CIO to be present on the board of directors, or the creation of specific governance committees or an Office of the CIO, much like what the Hong Kong government has established with its OGCIO.

Often with large federated organizations such as governments, a team-oriented approach to decision-making is required to deliver repeatable IT processes,

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