CHAPTER 6: BENEFITS OF AN IT GOVERNANCE FRAMEWORK
Good governance only makes sense if it makes sense. As long ago as 1996, McKinsey and Company found that two-thirds of the companies in a survey would pay an 11% premium for the stock of a company with good governance practices. 17
More than that, ‘companies whose boards engage in one or more of [the] three governance practices that signal board independence from management outperform their peers and produce higher returns for their shareholders’, 18 as measured by economic value added (EVA – earnings (post-tax) in excess of the cost of the capital required to generate them).
And if good governance makes sense, good IT governance makes even more sense:
‘[T]op-performing firms succeed where ...
Get IT Governance: A Pocket Guide now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
