Most directors fail to link IT with strategy.Most corporate board members talk the talk about the importance of information technology to their company, but fewer are walking the walk and taking actions to align information technology (IT) with overall corporate strategy. This is the overarching o·ver·arch·ing adj. 1. Forming an arch overhead or above: overarching branches. 2. Extending over or throughout: "I am not sure whether the missing ingredient . . . message coming out of a recently released survey, "The Board and Information Technology Strategies," by Deloitte Consulting, a subsidiary of Deloitte & Touche USA LLP LLP - Lower Layer Protocol , and Corporate Board Member magazine. The survey respondents also suggested a distinct and positive correlation Noun 1. positive correlation - a correlation in which large values of one variable are associated with large values of the other and small with small; the correlation coefficient is between 0 and +1 direct correlation between the attention paid to IT and corporate performance. The directors responded to questions ranging from how often their boards discuss IT strategy to how they think IT has affected their companies' ability to effectively meet business objectives. Some of the key findings and trends include: * Boards are not involved to the degree they believe they should be in IT; directors did not indicate a commensurate com·men·su·rate adj. 1. Of the same size, extent, or duration as another. 2. Corresponding in size or degree; proportionate: a salary commensurate with my performance. 3. level of activity with the level of recognition of IT's importance. * Ten percent of boards relegate rel·e·gate tr.v. rel·e·gat·ed, rel·e·gat·ing, rel·e·gates 1. To assign to an obscure place, position, or condition. 2. To assign to a particular class or category; classify. See Synonyms at commit. IT matters to a board committee. * Only 11 percent of boards discuss IT at every meeting. * Just 14 percent of boards are "completely and actively involved" in IT strategy. * Directors who report a higher level of involvement in IT matters have a better understanding of IT's importance to their business. * Directors report that effectiveness in executing on IT strategy correlates to better financial performance. The survey involved more than 450 directors of publicly traded companies publicly traded company A company whose shares of common stock are held by the public and are available for purchase by investors. The shares of publicly traded firms are bought and sold on the organized exchanges or in the over-the-counter market. with revenues of more than $1 billion. |
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