Balancing IT innovation investment in a recession

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Great example of the criticality of PPM

Great post Michael. These decisions are so critical in any economic situation, but they are exponentially more important and potentially problematic in a down economy. This Hackett Group research note and your added insights are music to my ears.

In my last blog post of 2008 I noted the potential silver-lining of the recession, that organizations can no longer tolerate the project failures to which they have grown so accustomed. My hope was that they will finally embrace IT Governance and its associated processes, such as Project and Portfolio Management (PPM).

Those enterprises with sound project governance processes have the conventions and mechanisms in place to do exactly as you advise. These organizations, with their existing "Innovation Portfolio" are simply making adjustments, such as:
- % of IT budget allocated to the Innovation Portfolio
- Acceptable levels of risk to the overall Innovation portfolio
- Acceptable levels of risk to individual investments within that portfolio
- etc.

These adjustments would be in response to the analysis you so deftly recommend, as opposed to the near-arbitrary following what "other companies are doing" that results from the lack of good governance processes that enable enterprises to make reasoned and rationale IT investment decisions.

Steve Romero, IT Governance Evangelist
http://community.ca.com/blogs/theitgovernanceevangelist/

Posted by: Steve Romero   Posted on: 04/10/09  (Edited: 04/10/2009 @ 10:25) You are currently: a Guest | Members login | Terms of Use

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