IT governance determines who decides what in IT and by what rules. Without it, investment decisions get made ad hoc and the IT department ends up as a cost centre instead of a service for the business.
When an IT strategy doesn't exist, exists only on paper, or when investment decisions are made without any link to the organization's goals.
We use the IT4IT reference model (The Open Group), which describes IT as a value chain — from strategy through service development and delivery to operations and incident resolution. We design the IT organizational structure, decision-making rules and how investments are evaluated.