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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 message coming out of a recently released survey, "The Board and Information Technology Strategies," by Deloitte Consulting, a subsidiary of Deloitte & Touche USA LLP, and Corporate Board Member magazine.

The survey respondents also suggested a distinct and positive 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 level of activity with the level of recognition of IT's importance.

* Ten percent of boards relegate 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 with revenues of more than $1 billion.
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Title Annotation:TECHNOLOGY
Author:Marshall, Jeffrey; Heffes, Ellen M.
Publication:Financial Executive
Date:Jul 1, 2007
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