Board members play an important role in steering organizations through the complexities of technology initiatives.
To fulfil this role effectively, it's essential to ask the right questions that probe the strategic, operational, and risk aspects of technology projects.
Here are ten critical questions every board should consider:
1) How does this technology initiative align with our strategic goals?
Understanding the connection between technology projects and the organization's mission ensures that investments support long-term objectives.
See "Do Your Projects and Initiatives Support Your Strategy?" for a detailed explanation on how to do this.
2) What are the expected benefits and how will we measure success?
Clarify the anticipated outcomes and establish metrics to assess the project's impact on the organization.
See the "Project Success Model" for a detailed explanation on how to do this.
3) What are the major risks and how are we mitigating them?
Identify potential challenges, including cybersecurity threats and compliance issues, and evaluate the strategies in place to address them.
See "Proactively Manage Your Project With RAID Lists (Risks, Assumptions, Issues and Decisions)" for a detailed explanation on how to do this.
4) How are we ensuring data security and privacy?
Assess the measures implemented to protect sensitive information and comply with relevant regulations.
5) What is the Total Cost of Ownership?
Consider not only initial expenses but also ongoing costs related to maintenance, training, and upgrades.
See "What Are the Real Costs of Your Technology Project?" for a detailed explanation on how to do this.
6) How will this impact our organizational culture and workforce?
Evaluate how the initiative will affect employees and what change management strategies are in place to support them.
See "User Enablement is Critical for Project Success" and "If You Want to Bring Change in Your Organization …" for further reading on these topics.
7) Are we leveraging the right expertise?
Determine whether internal capabilities are sufficient or if external consultants are necessary to achieve project success.
8) What is the implementation timeline and are we on track?
Review the project's timeline, milestones, and any deviations to ensure timely delivery.
See "A Great Leading Indicator for Future Trouble - Missing Milestones" for further reading on these topics.
9) How does this position us against competitors?
Analyze how the technology will enhance the organization's competitive edge in the market.
10) What is our plan for post-implementation evaluation?
Establish a process for assessing the project's success and lessons learned after completion.
See the "Project Success Model" for a detailed explanation on how to do this.
In a nutshell: By consistently addressing these questions, board members can provide informed oversight, ensuring that technology initiatives are strategically sound and effectively managed.
If you or your company needs help with Technology Due Diligence, Business Case Review or Board Advisory just contact me.
Posted on Monday, December 16, 2024 by Henrico Dolfing