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The Tipping Point For Board Oversight Of IT

Dan Swanson | June 5, 2007

T raditionally, and properly, a company’s board of directors has focused on governing the organization; that is, the board ensures that the right CEO is in place, that the right business strategies have been developed, that performance is reported regularly and trending properly, and that the right questions are being asked of management.

The board’s agenda is truly endless, and it is absolutely critical that the board not micromanage the CEO, attempt to “manage” the organization, or have items on its agenda that are not focused on the long-term success of the organization. The board should revisit its mandate periodically, reconfirming its roles and responsibilities.

This month’s column raises the question of what the board’s oversight role is regarding information technology. There is no one right answer to this question, it can even be said the short answer is, “It depends.”

Indeed, many believe it is not the purview of the...

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