When it comes to balancing risk and innovation, do you have a preferred framework or approach to guide your decision-making?

One of the most successful strategies I've found is ensuring the business takes ownership of the liability and risk involved in decision-making. When the business owns the budget, risk, and liability associated with applications, they approach situations from a different perspective. This groundwork has proven helpful, especially when charting out the benefits versus the risks introduced by new initiatives.

We've implemented a matrix, inspired by research provided by my EP, that outlines business requirements, objectives, goals, and risks. This tool from Gartner has been invaluable in guiding discussions and helping the business understand the implications of their decisions. It allows us to evaluate whether an investment is worthwhile based on its risk profile. However, this tool is most effective when the business actively participates in decision-making. When they are involved, they can better assess whether a particular investment aligns with their needs and goals.

Our approach to balancing risk and innovation has evolved significantly over the years, particularly in our Enterprise Architecture (EA) practice and governance process. Recently, we've invested in a low-code platform called Appian, which has already started delivering value within the first 90 days of its implementation. Historically, CIOs have been wary of shadow IT and business partners writing code independently, as it can lead to costly mistakes and unnecessary risks. However, with Appian's low-code capabilities, we can better govern citizen development when appropriate.

We utilize Gartner's adaptive governance framework to determine the level of IT involvement needed based on application complexity and business impact. This framework helps us decide when IT oversight is necessary and when business partners can proceed independently. Although Appian facilitates business partner involvement in solution development, the adaptive governance framework itself is beneficial regardless of the platform used. It enables faster solution development and has already reduced operational timings for customer referrals and claims adjudication. I highly recommend exploring this framework to leverage business partners in solution development while managing risks effectively.