There are two different, interdependent components of IT that are important to a CIO: strategy, which is long-term; and tactical and operational concerns, which are short-term. Based on this distinction and its repercussions, this book clearly separates strategy from day-to-day operations and projects from operations – the two most important functions of a CIO. It starts by discussing the ideal organization of an IT department and the rationale behind it, and then goes on to debate the most pressing need – managing operations. It also explains some best industry standards and their practical implementation, and discusses project management, again highlighting the differences between the methodologies used in projects and those used in operations. A special chapter is devoted to the cutover of projects into operations, a critical aspect seldom discussed in detail. Other chapters touch on the management of IT portfolios, project governance, as well as agile project methodology, how it differs from the waterfall methodology, and when it is convenient to apply each.  In this second edition, besides a number of corrections and updates throughout the text, chapter 8 on “Agile Project Management� replaces the former chapter 8 completely, and chapter 10 on “IT Security� has been newly introduced as this topic has become more and more important for both management and operations during the last six years. Taking the fundamental principles of IT service management and best practices in project management, the book offers a single, seamless reference for IT managers and professionals. It is highly practical, explaining how to apply these principles based on the author’s extensive experience in industry.