Project Portfolio Management (PPM) and Project Portfolio Rationalization are terms that have been much abused. Like any other flavor of the month, these buzzwords are on the lips of everyone who is anyone in IT. Unfortunately, like any other buzzword, they are used more than they are understood.
This series of articles is designed to help you understand this extremely important concept and tool for IT Management.
A Brief History of IT: IT as a Cost
Before we dive into the definition and frameworks for PPM, we need to understand some underlying concepts. These concepts are best understood in the historical context that they developed in.
For the longest time information technology was treated as a cost. You “buy” computers. You “buy” applications. You have IT Payroll. Etc. In other words, one “pays a price” for IT – with little or no thought on why that cost is being uncured or what is the benefit other than “we need computers” or “we need reports”.
Looking cool or keeping up with the Joneses was the order of the day for the first 2-3 decades of IT. Yes, there was a time when just having a computer made you look cool and who does not want to look cool! Companies also bought computers because “my competitor has a computer so I must also have one” was the motivating factor.
There is nothing unusual about the path organizations took to adopt computers because that is the usual path for the adoption of any innovation. The cool kids buy an innovation first. Then their pals follow. The masses are the last to jump on the bandwagon. But we digress…
So, why did this sheep mentality continue? In other words, why did people continue to treat IT as a cost?
For one, the adoption of an innovation takes time as we discussed earlier. But a more powerful reason is that this thinking did not hurt anyone. Everyone was treating IT as a cost and hence no one was relatively worse off than the others i.e. there was competitive parity. In the absence of a clear competitive differentiation – advantage or disadvantage – there is little incentive for change.
Then, the impact of this thinking was not felt in another important area – the pocketbook. IT was still not ingrained in every aspect of business operations. Consequently, IT spending was low and hence so was the attention it grabbed within the organization. IT was not on anyone’s radar as a major imperative or focus of attention.
IT Strategy: IT Cannot be a Profit Center (Friday, September 08, 2006) IT Strategy: Of late, there is a lot of emphasis on IT ROI. While this is commendable, extending this argument to convert the IT Organization into a profit center is taking it to another extreme. For example, are HR, finance, and marketing profit centers? Why not?
Forget SOX! (Thursday, January 25, 2007) Is the focus on SOX taking away from some other, more important IT Governance issues? The article argues that with a view to the "big picture" of IT Governance
Happy Together? (Wednesday, January 31, 2007) What three things must coexist to ensure IT Value? Read on to find the answer!
Giving "teeth" to the Building Permit Process (Thursday, February 08, 2007) The building permit process is critical to the success of an Enterprise Architecture. Often, this process fails and with it the Enterprise Architecture. The article highlights the 7 common mistakes that lead to the failure of this process and suggests ways to avoid them.
Project Portfolio Earned Value Management Using Treemaps (Thursday, March 08, 2007) There are various techniques applied to manage project portfolios. This paper discusses using Earned Value Management and Treemaps. The latter provides a very powerful visual technique.
Part II: A Framework for IT Value (Monday, April 09, 2007) Last week, we lay the foundation for a discussion on IT Value. This week, we look at specific areas where IT creates value.
A Primer on Project Portfolio Management (Thursday, April 19, 2007) This document provides an understanding of the value of a Project Portfolio Management solution and offers insight into the types of functionality that must be inherent in such an application. The document also provides specific differentiating insight into the Business Engine Network (BEN) PPM solution.
How to avoid IT project failure (Tue, 24 Apr 2007 08:00:00 GMT) Why do projects fail? The authors present several reasons that you can avoid to ensure success.
A Quantitative Guide to IT Portfolio Management (Tuesday, November 27, 2007) A quantitative guide to IT Project Portfolio Management. Excellent discussion on the topic including extensive bibliography. Must Read!
Applying PPM to ERP's Second Wave (Thursday, January 10, 2008) ERP's second wave has been upon us. How do you make decisions around what to enhance? PPM can help. Read on
IT governance is on the hot seat (Thursday, February 07, 2008) Project Portfolio Management has few takers and many skeptics. This article discusses both viewpoints.
Demystifying Project Portfolio Management (PPM) (Monday, March 24, 2008) Project Portfolio Management is a critical concept and tool for IT Managers. Have you cut through the hype so you can use this tool?
Cracking the IT Value Code (Monday, March 24, 2008) Does IT Spending Matter? The answer is an emphatic no. Then what does? Read on...
Understanding the Value of IT (Monday, March 24, 2008) Understanding the IT Value equation is critical to making IT Decisions. This article provides guidance using the education industry.
A Single Framework for Compliance? (Thursday, April 24, 2008) A good discussion on the need for a single framework for compliance to replace/work with existing frameworks. Good Read!
Managing IT For Value (Monday, May 12, 2008) "We conclude that no existing method is suitable for assessing the business value created by IT assets." Read On...
IT Governance Case Studies (Thursday, May 22, 2008) This paper examines how IT governance is being implemented in four leading universities in Australia. Good information for all organizations.
Managing for Shareholder Value in difficult times (Monday, June 02, 2008) Is there "managing" to anything else? Read this excellent discussion on how everything in an enterprise should be managed.
Beyond EVA (Monday, June 23, 2008) A good discussion on EVA and how to plug its shortcomings.
Measuring Innovation (Monday, July 07, 2008) How do you know if innovation is really producing results? Measure it young man. Here are some pointers to help you along the way...
The History and Future of Value Management (Monday, July 07, 2008) An excellent presentation on measuring and managing "value" - discusses various frameworks. MUST READ!
A Guide to IT Portfolio Management (Monday, August 25, 2008) Treating IT spending as investments is an excellent idea. Where do you go from there? Read this step-by-step guide to help plan your journey.
The Strategy Cycle (Friday, October 24, 2008) Often, the talk about the connection between Business and IT Strategy does not translate into action. At other times, IT Strategy is devised in isolation. This is a good discussion on the big picture of strategy in an organization - soup to nuts framework to connect ALL the organizations strategic processes, people and technology. Good Read!
DAM/VAM: A Structured Methodology for Developing and IT Strategy (Monday, November 17, 2008) Demand and value assessment methodology is a structured approach to quantifying the demand for and the value from IT investments. This guide provides a step-by-step approach to implementing DAM/VAM. Excellent Read!
A Common Framework for Business IT Value (Tuesday, December 02, 2008) What is the biggest problem facing IT Value? Lack of single framework that connects business and IT - top to bottom; left to right. Can a single framework connect the organizational stovepipes and frameworks within each? This is a good start but the problem is far from fixed. Good Read!
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