IT & AI series · Episode 5

The new execution contract: governance, capabilities and P&L

Regaining control of value, protecting margins and aligning teams from the ExCo to the field.

By Fakhri Essedik · · 2 min read

"Strategic alignment is no longer enough: the real value of an IT or AI program now depends on the rigor of its execution model."

The "green until it breaks" syndrome

A large banking group reported a $12M transformation program as green on every KPI. Two months before go-live, an architecture gap and functional misalignment were uncovered, causing nearly 6 months of delay and a 35% cost overrun.

Cosmetic reporting. Dashboards focused on budget consumption rather than actual value delivered.

Hidden skills gap. Excessive reliance on subcontracting with no internal transfer of technology mastery.

P&L shock. Delays could not be tied to business benefits, causing a direct loss of ROI.

The 3 pillars of the new execution contract

  1. Continuous decision-making governance. Replace information committees with financial and operational decision bodies able to stop or redirect a failing project.
  2. Protecting key capabilities. Build a balanced internal/external mix that guarantees control over architecture, data and security.
  3. Steering by business P&L (value realization). Tie IT budget milestones to the actual delivery of operational gains measured by finance and the business.
74%

of executives believe their IT programs do not deliver the financial returns initially promised (McKinsey).

x2.5

higher risk of financial drift when key capabilities are not protected in-house.

"Securing the P&L means moving from a project-spending mindset to accountability for business outcomes."

Are you ready to change your execution contract?

Related offer

Program Management & Recovery

Executive steering of complex programs, PMO, recovery of troubled IT projects and IS modernization.

Fakhri Essedik

Fakhri Essedik

Founder of EDX Advisory

For more than 25 years, Fakhri Essedik has helped executive teams and CIOs steer major Digital, Data & AI programs across Europe, Africa and the Middle East.

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