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IT governance is the set of processes that ensure the effective and efficient use of IT in enabling an organization to achieve its goals. The demand side of IT governance is focused on establishing business investment decision and oversight processes that help the business and, by extension, IT, win. IT demand governance covers three major sets of collective decisions and guidance. The first describes how IT should be used in the business — the guiding policies and principles. The second set covers who makes what decisions and how — it delineates clear accountabilities. The third set is concerned with business cases and investments — it describes priorities, ownership, benefits realization, funding and chargeback processes. 
Consider These Factors to Determine Your Readiness Before beginning an IT governance project, consider how you will:
- Establish business goals and strategies for IT demand governance.
- Determine how the enterprise will define decision rights and accountabilities and the processes to enable their execution.
- Define how the enterprise should design and implement IT investment decision-making and oversight processes, including the role of committees and their members.
- Determine the approach to designing and implementing an IT portfolio management scheme. It should track investments, oversee funding and chargeback policies, and determine the measures of success for approved investments.
Conduct Your IT Governance Project in Three Phases Gartner recommends that IT leaders follow three major phases in their IT governance projects. These phases may vary, depending on your organization and the extent of your planning initiative:
- Strategize and Plan: Establish the business goals and principles for IT governance. Determine what decisions need to be governed. Develop the strategies and approach for designing solutions. Scope the project, and establish the resources, budget and project governance systems.
- Architect Solution: Define what decisions are to be made, at what level, by whom, with what accountabilities and with what decision-making styles. Recommend how to implement the project. Communicate the plan.
- Build: Create processes for demand governance. The processes should include those for decision making, committees, portfolio management, investment performance metrics, funding and chargeback for IT development and delivery, and risk monitoring and management.
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