Resource optimization is closely related to risk optimization because resource decisions affect exposure, controls and resilience. Effective governance balances resources with risk and benefits to create enterprise value.

According to the COBIT 2019 Study Manual from Isaca, the best starting point for translating enterprise goals into actionable governance and management objectives is prioritized enterprise goals. These goals are critical for ensuring that the governance system design is aligned with the enterprise’s overall strategy, and for ensuring that the design focuses on areas of highest priority for the enterprise. Prioritizing enterprise goals helps ensure that the governance system design is tailored to meet the specific needs and priorities of the enterprise.

Decision-making relies on logic and communicative rationality, aligning people based upon a logical progression from premises to conclusion.

The oversight of technology and innovation processes by the board is critical to ensuring I&T-related decisions are aligned with the enterprise’s strategies and objectives. The board is the highest governing body of the enterprise that provides direction, oversight, and accountability for the enterprise’s performance.
Technology and innovation processes are the activities that enable the enterprise to leverage information and technology to create value, achieve strategic goals, and respond to changing business needs. The oversight of technology and innovation processes by the board ensures that I&T-related decisions are consistent with the enterprise’s vision, mission, values, policies, and risk appetite.13 References: COBIT 2019 Framework:
Introduction and Methodology, COBIT 2019 Framework: Governance System

A focus area describes a specific governance topic, domain or issue that can be addressed by a collection of governance and management objectives and their components. A focus area provides guidance on how to apply COBIT to a specific business driver or pain point, such as digital transformation, cybersecurity, privacy, or business continuity. A focus area can also provide guidance on how to align COBIT with other standards, frameworks or regulations. A focus area is based on the COBIT 2019 Design Guide3, page 19. References: 3:
COBIT 2019 Design Guide | Digital | English

According to the COBIT 2019 Design Guide, before designing an enterprise IT governance system, an organization should first review and understand the enterprise’s strategy. The enterprise’s strategy defines the vision, mission, goals and objectives of the organization, and provides the direction and context for IT governance. The enterprise’s strategy also identifies the key stakeholders, their needs and expectations, and the value proposition of IT to the business. 1 , p. 16-17 References: 1 : COBIT 2019 Design Guide:
Designing an Information and Technology Governance Solution

COBIT primarily supports business and IT management responsible for governing, managing and delivering information and technology. It provides guidance for aligning I&T activities with enterprise goals and stakeholder expectations.

According to Isaca COBIT 2019, a key consideration when determining the initial scope of a governance system is the compliance requirements faced by the enterprise. This includes laws, regulations and other requirements which the enterprise must comply with. Additionally, it is important to consider the current IT-related issues of the enterprise and the role of IT within the enterprise, as well as the size of the enterprise.

The best way to determine whether IT governance is achieving intended outcomes one year after implementation is to evaluate performance measurements identified in the business case. The business case is a document that defines the objectives, benefits, costs, risks, and success factors of IT governance implementation, and specifies the key performance indicators (KPIs) and target values that will be used to measure and monitor the outcomes. By comparing the actual performance results with the expected results, the enterprise can assess the effectiveness and efficiency of IT governance and identify any gaps or issues that need to be addressed. The way is based on the COBIT 2019 Implementation Guide1, page 32. References: 1:
COBIT 2019 Implementation Guide | Digital | English

The size of the enterprise is a design factor that describes the scale or magnitude of an enterprise’s information and technology activities in terms of aspects such as number of employees, customers, locations, products, services, processes, systems, data, etc. The size of the enterprise influences the governance and management of information and technology in terms of the level of complexity, diversity, variability, standardization, centralization, decentralization, etc., that are required for its information and technology activities. The key benefit of considering the size of the enterprise when designing governance is targeting capability levels of governance and management objectives. The capability levels are a measure of how well an enterprise performs its information and technology governance and management processes in terms of process attributes such as process performance, process definition, process deployment, process measurement, process control, process optimization, etc. The capability levels range from 0 (incomplete) to 5 (optimizing), indicating the degree of maturity and effectiveness of an enterprise’s information and technology governance and management processes. The governance and management objectives are the statements of what an enterprise wants to achieve in terms of its information and technology governance. The governance and management objectives are derived from the enterprise goals, which are the high-level statements of what an enterprise wants to achieve in terms of its mission, vision, values, strategy, etc. By considering the size of the enterprise when designing governance, an enterprise can target capability levels of governance and management objectives that are appropriate for its scale and magnitude of information and technology activities. This will also help to optimize its information and technology performance and value delivery12 References: 1: COBIT 2019 Design Guide: page 47-48 2: COBIT 2019 Process Assessment Model: page 11-13

Element 1: Set a clear purpose and stay focused on it.
Reference: https://oag.parliament.nz/good-practice/governance/organisation

The best way to determine whether IT governance is achieving intended outcomes one year after implementation is to evaluate performance measurements identified in the business case. The business case is a document that defines the objectives, benefits, costs, risks, and success factors of IT governance implementation, and specifies the key performance indicators (KPIs) and target values that will be used to measure and monitor the outcomes. By comparing the actual performance results with the expected results, the enterprise can assess the effectiveness and efficiency of IT governance and identify any gaps or issues that need to be addressed. The way is based on the COBIT 2019 Implementation Guide 1 , page 32. References:
1 : COBIT 2019 Implementation Guide | Digital | English

Explanation
The enterprise goal titled “Optimization of Business Process Costs” is aligned to the internal dimension of the balanced scorecard (BSC). The internal dimension focuses on the efficiency and effectiveness of the business processes that deliver value to customers and stakeholders. Optimization of business process costs is one of the
17 generic enterprise goals defined by COBIT that supports the internal dimension.12 References: COBIT
2019 Framework: Introduction and Methodology, COBIT 2019 Framework: Governance and Management Objectives

A proper governance framework should remain flexible so it can address new technologies, risks and business requirements. Flexibility allows the framework to evolve while continuing to support enterprise objectives.

Innovation and differentiation are examples of enterprise objectives design factors. Design factors are the characteristics or aspects of an enterprise that influence the design and implementation of a governance system. They include factors such as enterprise size, industry sector, risk profile, regulatory environment, sourcing model, etc. Enterprise objectives are the specific goals or targets that an enterprise sets to achieve its vision and mission. They are derived from the stakeholder drivers and needs, and are influenced by the design factors. Innovation and differentiation are two possible design factors that affect how an enterprise defines its objectives.12 References: COBIT 2019 Framework: Introduction and Methodology, COBIT 2019 Design Guide: Designing an Information and Technology Governance Solution

The performance measurements are the indicators that measure the progress and outcomes of the EGIT implementation program plan against the predefined success criteria such as key performance indicators (KPIs), key goal indicators (KGIs), key risk indicators (KRIs), etc. The performance measurements help to evaluate the effectiveness, efficiency, and value of the EGIT implementation program plan, as well as to identify and address any issues, risks, or gaps that may arise during the execution of the program. The projects that should be included when reporting on performance measurements related to an EGIT implementation program plan are all projects deemed appropriate by IT management. IT management is the function that is responsible for planning, organizing, directing, controlling, and monitoring the information and technology activities in an enterprise. IT management is also responsible for selecting, prioritizing, balancing, monitoring, evaluating, and optimizing information and technology investments and initiatives that support business strategy and objectives. IT management has the authority and discretion to decide which projects are relevant and important for reporting on performance measurements related to an EGIT implementation program plan, based on factors such as project scope, size, complexity, duration, cost, risk, interdependencies, alignment, value, etc. By including all projects deemed appropriate by IT management when reporting on performance measurements related to an EGIT implementation program plan, the enterprise can ensure that the report covers the most significant and critical aspects of the program, and that it provides a comprehensive and accurate picture of the program status and performance12 References: 1: COBIT 2019 Implementation Guide:
page 51-52 2: COBIT 2019 Framework: Governance and Management Objectives: page 20-21

Once alignment goals are established, they are mapped to governance and management objectives. These objectives define the processes and activities required to achieve business goals and deliver expected enterprise value.