ISO 38500 Best Practices

Trusted by over 10,000+ Client Organizations

Since 2012, we have provided best practices to over 10,000 businesses and organizations of all sizes, from startups and small businesses to the Fortune 100, in over 130 countries.

Read Customer Testimonials

"FlevyPro provides business frameworks from many of the global giants in management consulting that allow you to provide best in class solutions for your clients."

– David Harris, Managing Director at Futures Strategy

"As a young consulting firm, requests for input from clients vary and it's sometimes impossible to provide expert solutions across a broad spectrum of requirements. That was before I discovered Flevy.com.

Through subscription to this invaluable site of a plethora of topics that are key and crucial to consulting, I

... [read more]

– Nishi Singh, Strategist and MD at NSP Consultants

"As a small business owner, the resource material available from FlevyPro has proven to be invaluable. The ability to search for material on demand based our project events and client requirements was great for me and proved very beneficial to my clients. Importantly, being able to easily edit and tailor

... [read more]

– Michael Duff, Managing Director at Change Strategy (UK)

"I am extremely grateful for the proactiveness and eagerness to help and I would gladly recommend the Flevy team if you are looking for data and toolkits to help you work through business solutions."

– Trevor Booth, Partner, Fast Forward Consulting

"Last Sunday morning, I was diligently working on an important presentation for a client and found myself in need of additional content and suitable templates for various types of graphics. Flevy.com proved to be a treasure trove for both content and design at a reasonable price, considering the time I

... [read more]

– M. E., Chief Commercial Officer, International Logistics Service Provider

"As a consultant requiring up to date and professional material that will be of value and use to my clients, I find Flevy a very reliable resource.

The variety and quality of material available through Flevy offers a very useful and commanding source for information. Using Flevy saves me time, enhances my expertise and ends up being a good decision."

– Dennis Gershowitz, Principal at DG Associates

"Flevy is now a part of my business routine. I visit Flevy at least 3 times each month.

Flevy has become my preferred learning source, because what it provides is practical, current, and useful in this era where the business world is being rewritten.

In today's environment where there are so

... [read more]

– Omar Hernán Montes Parra, CEO at Quantum SFE

"I have used FlevyPro for several business applications. It is a great complement to working with expensive consultants. The quality and effectiveness of the tools are of the highest standards."

– Moritz Bernhoerster, Global Sourcing Director at Fortune 500

Flevy Management Insights: ISO 38500

ISO 38500 Best Practices

ISO 38500 Overview Adopting ISO 38500 for Strategic Advantage Strategic Benefits of ISO 38500 Key Takeaways for C-Level Executives Driving IT Governance with ISO 38500 ISO 38500 FAQs Recommended Documents Flevy Management Insights Case Studies

All Recommended Topics

“Complexity and rapid change in today's business environment demand good governance more than ever.” These are the words of former IBM CEO, Sam Palmisano, highlighting the importance of governance in a high-stakes, rapidly-evolving business landscape. One of the most widely recognized models for corporate governance is ISO 38500.

ISO 38500 is the international standard for the corporate governance of information technology (IT). Implemented in 2008, it provides a framework for effective management and control of IT resources. Unlike other IT management frameworks focused solely on processes, ISO 38500 emphasizes the role of executives and directors in governing the organisation’s IT.

For effective implementation, take a look at these ISO 38500 best practices:

Explore related management topics: Information Technology Corporate Governance

Adopting ISO 38500 for Strategic Advantage

Companies that have implemented ISO 38500 effectively gain broad strategic benefits. From clearer lines of communication to improved risk management, the Standard encourages organizations to view IT not as a cost center, but as a business enabler. Here are a few principles that a firm should adhere to while implementing the ISO 38500 framework:

Responsibility - Executive management must demonstrate leadership in directing, controlling, and influencing the organization's use of IT.
Strategy - An IT strategy should be formulated that aligns with the organization's business strategy.
Acquisition - IT acquisitions should be done according to a clear, deeply analyzed plan that aligns with the firm's strategic direction.
Performance - Performance of both the IT system and its governance should be measured, reported, and benchmarked against the firm's stated goals.
Conformance - All IT initiatives should adhere to defined policies and legislative requirements to assure compliance.
Human Behavior - Understanding, and managing the behaviors of individuals and groups in the organization can lead to successful IT adoption.

Explore related management topics: Risk Management IT Strategy Leadership

Strategic Benefits of ISO 38500

Implementing ISO 38500 can revolutionize the role of IT within your corporation. A study by McKinsey confirmed that companies with good IT Governance have profits at least 20% higher than companies with poor governance. Dynamic capabilities like Digital Transformation, Operational Excellence, and Performance Management can be effectively guided with the involvement of C-level executives, which ISO 38500 emphasizes.

Explore related management topics: Digital Transformation Operational Excellence Performance Management IT Governance

Key Takeaways for C-Level Executives

As a C-level executive, understanding and implementing ISO 38500 will ensure that IT serves as a key business enabler rather than a cost center or a liability. While IT is often seen as a complex and rapidly changing area, the framework and principles provided by ISO 38500 assists in managing this complexity effectively. Furthermore, it provides a structure that fosters alignment between IT and business strategy, promoting overall organizational success.

Driving IT Governance with ISO 38500

It's time to stop viewing ISO 38500 as merely another box to check for IT governance. Rather, it should be seen as a strategic tool for the C-suite to more effectively manage IT assets, reduce risks, and ultimately drive value creation. Whether you are a new or experienced C-level executive, embracing ISO 38500 can provide you with the strategic oversight tools needed to ensure that IT is consistently delivering value for your organization.

Explore related management topics: Value Creation

ISO 38500 FAQs

Here are our top-ranked questions that relate to ISO 38500.

In what ways can ISO 38500 improve collaboration between IT and other business units?

ISO 38500 enhances IT and business unit collaboration by establishing a common governance framework, improving communication, and aligning IT investments with business goals, fostering operational efficiency and innovation. [Read full explanation]

What are the common pitfalls in implementing ISO 38500 and how can they be avoided?

Avoiding pitfalls in ISO 38500 implementation involves securing Executive Support, managing Cultural Change, and committing to Continuous Improvement for effective IT governance. [Read full explanation]

How does ISO 38500 address the challenges of digital transformation?

ISO 38500 offers a framework for Strategic Alignment, Risk Management, Resource Optimization, and fostering Leadership and Innovation culture, enabling effective governance of IT in Digital Transformation. [Read full explanation]

Can ISO 38500 implementation enhance a company's competitiveness in the global market?

Implementing ISO 38500 significantly boosts global market competitiveness by improving Strategic Planning, Operational Excellence, Risk Management, and Compliance, facilitating global expansion and collaboration. [Read full explanation]

View more FAQs

Related Case Studies

ISO 38500 Governance Framework Overhaul for Mid-Sized Oil & Gas Firm

Scenario: A mid-sized oil and gas firm operating in North America has identified lapses in its IT governance in line with ISO 38500 standards.

Read Full Case Study

ISO 38500 Governance Enhancement - Luxury Retail

Scenario: A luxury goods retailer, operating globally with a focus on high-end fashion and accessories, is facing challenges in aligning its IT governance framework with the principles of ISO 38500.

Read Full Case Study

ISO 38500 Governance Enhancement for Telecom

Scenario: The organization is a telecommunications provider with a global footprint, facing challenges in aligning IT governance with organizational goals in accordance with ISO 38500 standards.

Read Full Case Study

ISO 38500 Compliance Initiative for Metals Industry Leader

Scenario: A prominent firm in the metals sector is struggling with governance issues related to IT management as per ISO 38500 standards.

Read Full Case Study

ISO 38500 Compliance Project for Expanding Tech Company

Scenario: An upscale global tech company is struggling with adhering to the guidelines of ISO 38500 due to its rapid expansion and development.

Read Full Case Study

ISO 38500 Governance Framework Implementation in Luxury Retail

Scenario: The organization is a high-end luxury retailer facing challenges in aligning IT governance with organizational goals, in accordance with ISO 38500 standards.

Read Full Case Study

View more case studies

Explore all Flevy Management Case Studies

Flevy is the world's largest knowledge base of best practices.

Leverage the Experience of Experts.

Find documents of the same caliber as those used by top-tier consulting firms, like McKinsey, BCG, Bain, Deloitte, Accenture.

Download Immediately and Use.

Our PowerPoint presentations, Excel workbooks, and Word documents are completely customizable, including rebrandable.

Save Time, Effort, and Money.

Save yourself and your employees countless hours. Use that time to work on more value-added and fulfilling activities.