Close Search
 
MEDIA, JOBS & RESOURCES for the COMMON GOOD
News  |  Governance

ICT Governance and the Board


22 September 2015 at 12:30 pm
Ellie Cooper
The introduction of consumer-directed care and funding presents significant challenges for the Not for Profit sector, writes John Picot Technology Advisory with Grant Thornton Australia.

Ellie Cooper | 22 September 2015 at 12:30 pm


0 Comments


 Print
ICT Governance and the Board
22 September 2015 at 12:30 pm

The introduction of consumer-directed care and funding presents significant challenges for the Not for Profit sector, writes John Picot Technology Advisory with Grant Thornton Australia.

To ensure their ongoing financial viability, boards and their organisations must modify service delivery models. Greater levels of information and communication technology literacy will also be needed, to inform sound commercial decisions and provide the best support to their organisations.

Not for Profit organisations (NFPs) have traditionally depended on government funding to fulfil their mission and purpose. A more market-facing business model, activity-based funding and consumer choice characterises the recent public policy changes wrought by the Commonwealth Government.

The underlying rationale for the change is the concept of efficient pricing, which is placing unfamiliar pressures on NFP business systems, which are often fragmented, siloed into separate service programs, with poor or no data integration making timely and accurate reporting difficult. These business processes and underlying technologies have usually grown organically, without a whole-of-organisation strategy or plan.

The recent funding changes bring with them strategic and operational challenges for NFP boards, requiring much greater financial discipline, and enhanced workforce utilisation focused on client needs and core competencies.

An allied challenge for NFP boards is to know the specific competencies to require of the executive in order to provide confidence that the necessary strategies are in place to manage the changes and ensure the organisation’s investment in information and communications technology (ICT) is both sufficient and fully aligned with organisational strategy.

Boards need their executive teams to have:

· A business technology strategy that strongly aligns with the organisation’s strategic plan.

· A prioritised program of work, with detailed timelines, status of projects and risk profile.

· For those organisations with sufficient scale, an organisational ICT Governance Committee drawn from the executive (potentially including board representation) with well-defined terms of reference

· An established methodology to support strategic procurement through to implementation and post-implementation review.

· Regular examination of projects and business cases to assess the strength of their alignment with strategy and underlying business rationales.

We often see NFP organisations with a low level of ICT maturity and work with them to put foundations in place and build their internal capability.

This is a journey that requires a trusted guide to assist. With continuous change being the only certainty in the current policy and business climate, organisational capability to manage and support technology projects is a must, not an optional extra.

About the author: John Picot is the Technology Advisory and Solutions with Grant Thornton Australia – assurance, tax and specialist advisory services to Not for Profits, privately held businesses and corporate and listed entities.


Ellie Cooper  |  Journalist  |  @ProBonoNews

Ellie Cooper is a journalist covering the social sector.

PB Careers
Get your biweekly dose of news, opinion and analysis to keep you up to date with what’s happening and why it matters for you, sent every Tuesday and Thursday morning.

Got a story to share?

Got a news tip or article idea for Pro Bono News? Or perhaps you would like to write an article and join a growing community of sector leaders sharing their thoughts and analysis with Pro Bono News readers? Get in touch at news@probonoaustralia.com.au or download our contributor guidelines.

Advertisement

Virtual Congress - CPA Australia

Get more stories like this

FREE SOCIAL
SECTOR NEWS

Your email address will not be published. Required fields are marked *



YOU MAY ALSO LIKE

Collaboration for Impact: Lessons from the field

John Butcher

Monday, 19th October 2020 at 5:53 pm

Let’s talk about charity cyber security

Maggie Coggan

Wednesday, 30th September 2020 at 9:33 pm

A for-purpose recipe: the ingredients to drive impact and sustainability today

Heather Morecroft

Thursday, 24th September 2020 at 7:00 am

pba inverse logo
Subscribe Twitter Facebook
×