CISA Governance and Management of IT Practice Question
A retail company is merging with a competitor. The IT departments of both organizations have different IT governance structures: Company A uses a centralized model with strict change management, while Company B uses a decentralized model with autonomous business unit IT. The CIO has been tasked with integrating the IT functions post-merger. The board expects cost synergies and improved service levels. The integration team is facing resistance from Company B's business heads who fear loss of agility. The CIO needs to propose a governance model for the merged entity. Which approach would BEST meet the board's expectations while addressing resistance?
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Implement a phased integration with a transitional governance structure that includes representatives from both sides.
A phased integration with a transitional governance structure that includes representatives from both sides allows the merged entity to gradually converge governance models, manage change and resistance, and work toward cost synergies and improved service levels without immediately disrupting business operations. Option A is incorrect because keeping both models separate permanently fails to achieve the desired integration and synergies. Option B is incorrect because fully adopting the decentralized model may not deliver the cost synergies and centralized control expected by the board. Option C is incorrect because immediately imposing a centralized model would likely cause strong resistance from Company B's business heads and disrupt agility, undermining the merger's success.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Keep both models separate and allow business units to choose their preferred model.
Why it's wrong here
Separate models defeat the purpose of integration and synergies.
- ✗
Adopt Company B's decentralized model to preserve agility.
Why it's wrong here
Decentralization may prevent cost synergies and consistent governance.
- ✗
Immediately impose Company A's centralized model across the merged entity.
Why it's wrong here
Sudden change may cause operational disruption and employee resistance.
- ✓
Implement a phased integration with a transitional governance structure that includes representatives from both sides.
Why this is correct
Phased integration respects both cultures and reduces resistance.
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Written by Johnson Ajibi, MSc IT Security
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