Corporate Governance at Kings
Particularly during transformative times such as a merger, governance can be used to ensure that managers and employees effectively translate corporate strategy into operational initiatives. This is being done at Kings, mostly driven my internal mechanisms in a non traditional manner of directing from inside as opposed from the owners. Direct IT governance at Kings does not follow any traditional business model we could find. For example, not only is there no board representation from IT, there isn't even a CIO for either Kings Supermarkets or Balduccis. In summary, the Board of Directors delegates the running of IT to an eight member senior management ...view middle of the document...
The IT Steering committee is comprised of representatives from “all facets of the business” who lobby for IT solutions. The user community that may not be represented on the Steering Committee may also bring to the steering committee’s attention opportunities where a technological solution might benefit. All major IT infrastructures necessary to run the business is determined by the committee through a rigorous due diligence process. The committee costs out and prioritizes the requests before presenting to the 8 member management team. The Steering and Management committees meet frequently to approve and set budgets for the most costly of IT projects.
From a tactical perspective, IT operations are run by the Director of Enterprise Applications and reports directly to the Chief Financial Officer which is one of the eight on the management committee. The Director of Enterprise Applications oversees the 3 main areas of IT:
* Enterprise applications management and Applications Development (all software applications that run on headquarters main IBM computer.)
* Retail Systems (manages all Point of Sale Hardware and software in use a the retail locations)
* Technical Support (All servers/PC Networking and communications)
The business value of IT seems to be a defensive position of support functionality. The critical decision making body is the Steering Committee which is centrally located in the corporate structure. The flow of controls from idea generation to execution have the requisite measurement/feedback loops to remain efficient, however, the agency problem is dependent on the power of communications from...