CGEIT Reviews Questions

 An IT balanced scorecard (BSC) is a framework that measures and manages the performance and value of IT in relation to the enterprise’s strategy, goals, and objectives. An IT BSC provides the most comprehensive insight into the effectiveness of IT, because it covers four perspectives that reflect the key aspects of IT: financial, customer, internal process, and learning and growth. For each perspective, an IT BSC defines objectives, measures, targets, and initiatives that align with the enterprise’s vision and mission. An IT BSC also helps to balance the short-term and long-term outcomes of IT, as well as the leading and lagging indicators of IT performance. According to ISACA’s article on The IT Balanced Scorecard1, “the IT BSC is a powerful tool for demonstrating the contribution of IT to the business, communicating IT performance in business terms, and aligning IT with business strategy.” Furthermore, according to ISACA’s CGEIT Domain 1: Framework for the Governance of Enterprise IT2, “the IT BSC is a widely used framework for measuring and managing the performance of IT resources in relation to enterprise goals.” Therefore, an IT BSC is the best way to provide a comprehensive insight into the effectiveness of IT.

The IT strategy is the document that defines how IT will be used to support and achieve the business objectives of the organization. It aligns the IT investments, resources, and activities with the business priorities and direction. When there is a change in the business objectives, such as a re-prioritization by management, the IT strategy should be updated accordingly to ensure that IT remains relevant and aligned with the new business goals. Updating the IT strategy should be done first before allocating resources to IT processes, because it provides the basis for determining which IT processes are most critical and valuable for the organization. The other options are not the best actions to perform first in this scenario. Performing a maturity assessment, implementing a RACI model, and refining the human resource management plan are all useful activities for improving the IT processes, but they are not directly related to the change in business objectives. They should be done after updating the IT strategy, based on the new strategic direction and priorities. References:

• 1: https://www.projectpractical.com/human-resource-management-plan-template-free-download/
• 2: https://open.lib.umn.edu/humanresourcemanagement/chapter/2-2-writing-the-hrm-plan/
• 3: https://www.isixsigma.com/getting-started/are-you-ready-how-conduct-maturity-assessment/
• 4: https://www.smartsheet.com/content/organizational-maturity
• 5: https://www.process.st/maturity-model/

This is the best way for the CIO to ensure that the IT objectives are delivered effectively by IT staff, as it aligns their work with the business objectives, communicates the desired outcomes and behaviors, motivates and empowers them, monitors and measures their progress and achievements, and provides feedback and recognition1. This answer is supported by the CGEIT Review Manual (Digital Version) or CGEIT Review Manual (Print Version), Chapter 2: IT Resources, Section 2.1: IT Strategy Development and Maintenance, Subsection 2.1.3: IT Strategy Implementation, Page 64-65. It is also confirmed by a CIO article that states that “including the IT objectives in staff performance plans” is one of the best practices for aligning IT with business goals1. The other options are not as effective as option C, as they do not directly link the IT objectives with the IT staff’s performance and incentives. Option A may help to standardize and benchmark the IT objectives, but it does not ensure that they are delivered by the IT staff. Option B may help to improve the IT staff’s skills and knowledge, but it does not ensure that they are aligned with the IT objectives. Option D may help to demonstrate the CIO’s commitment and authority, but it does not ensure that the IT staff are aware of and adhere to the IT objectives.