Assess and prepare governance arrangement

Every project starts with an executive order of an appropriately empowered stakeholder. It can be a political decision or a business one, depending on the scope, source of financing, and purpose of the information system to be developed. 

Beginning with the initial planning phase, it is crucial to have top management support throughout the whole transformation process. Digital transformation and newly introduced information systems have widespread impact, and their implementation may therefore result in resistance from different areas of the organization. To deal with such resistance, transformation leadership skills are essential and require the active involvement of the different stakeholders affected by the transformation.

Digital transformation is a continuous complex undertaking that can substantially shape an organization or a sector of public administration and their operations. It is therefore important to assign adequate and clear responsibilities for the definition and implementation of a strategy to develop information systems in the forestry sector. If the endeavour is approached half-heartedly, the general scope may be lost and operational difficulties may appear. It should be ensured that the person who is operationally responsible for the digital transformation strategy and coordination of forest information system development has sufficient experience in transformational projects and his or her incentives should be directly aligned with the strategy’s targets and progress.

At this stage, one should engage relevant stakeholders to discuss the current governance structure of the forest sector and other governance structures influencing the decision-making related to ICT solutions. This should begin with mapping the existing governance structure, paying particular attention to the business objectives that were defined at earlier steps. 

Having outlined the current situation, the participants should devise how the strategies proposed in the previous steps will be placed, whether they can be executed and supervised within the existing governance structure and what changes are possibly needed. 

An IT Governance Arrangement Matrix is a tool which can be used to map out and define the roles, responsibilities, and relationships between various stakeholders in the governance of IT resources within an organization and/or a large project. This matrix helps to clarify how decisions are made regarding IT and who is responsible for what aspects of IT management. The key components of an IT Governance Arrangement Matrix typically include:

1. Decision-Making Structures: This includes boards, committees, and executive roles that are responsible for making strategic decisions about IT.
2. Roles and Responsibilities: Clearly defined roles for individuals and groups within the IT governance structure, such as CIOs, IT managers, and other stakeholders.
3. Processes and Practices: The procedures and methodologies used to make and implement decisions, such as project management frameworks, IT service management, and risk management practices.
4. Communication Channels: Mechanisms for how information is shared and communicated among stakeholders within the IT governance framework.
5. Performance Measurement: Metrics and KPIs used to assess the effectiveness of IT governance and its contribution to achieving business objectives.

The matrix typically aligns these components against various IT governance domains such as IT strategy, IT value delivery, IT risk management, IT resource management, and performance measurement. By doing so, it provides a comprehensive overview of how IT governance is structured, and operates within the organization, ensuring that IT investments are aligned with business goals, risks are managed appropriately, and IT resources are used efficiently.

The commitment of key decision-makers in a project is crucial for several reasons. Key decision-makers often control or influence the allocation of resources, including funding, personnel, and technology. Their commitment ensures that the project receives the resources necessary for successful progress. They ensure that the project aligns with the organization's strategic objectives. Their commitment helps in steering the project in a direction that is congruent with the broader goals of the organization. Projects often require timely and critical decisions. Committed decision-makers can expedite these processes, reducing delays and increasing the efficiency of project execution. They also play a vital role in identifying, assessing, and mitigating risks. Their commitment to the project means that potential issues are given due attention and are managed effectively. The commitment of key decision-makers often signals to other stakeholders, including project team members, investors, and partners, that the project is valued and supported at a high level. This can boost confidence and morale, leading to better collaboration and support. 

Projects often involve change, and decision-makers are crucial in endorsing and managing these changes, especially when they impact multiple parts of the organization. Inevitably, projects encounter conflicts, whether in resource allocation, priorities, or strategic direction. Committed decision-makers are essential in resolving these conflicts in a manner that is beneficial for the project and the organization. Their ongoing support is crucial for not just the immediate success of the project but also for its long-term sustainability and integration into the organization’s regular operations.

Furthermore, since diffusion of digital technologies can change swiftly, there typically is high uncertainty concerning the underlying assumptions of digital transformation strategies. Hence, digital transformation strategies should be subject to continuous reassessment, in which both the underlying assumptions as well as the transformational progress to date are evaluated. To ensure that early actions can be taken if expectations are not met, clear procedures on the reassessment of digital transformation strategies are needed.

Digital transformation strategies and the introduction of new IT systems are cross-functional and must be aligned with other functional and operational strategies. As digital transformation strategies cut across various other strategies at the same time, complex coordination activities may be required both within the entity involved in the implementation and within the wider administrative or governance structure.