Amidst the economic slowdown, IT departments are still expected to perform flawlessly and improve continuously, with fewer resources and less money. Luckily, help is on the way. IT organizations can utilize Project & Portfolio Management (PPM) to ensure that they are investing in the right initiatives, supporting the right applications, and taking the right action when projects go south.
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2. Introduction
IT organizations worldwide are being hit by a perfect storm. Amidst the economy dragging
down demand across industries, IT departments are still expected to perform flawlessly and
improve continuously, with fewer resources and less money.
Global economic conditions aside, the network must stay up. New capabilities must be
deployed, systems maintained, products delivered and divisions supported.
Help is on the way. While many organizations have grown to think of their IT budget as a
fixed expense, or perhaps even a necessary evil, hidden in every line item are opportunities to
reduce costs, increase the strategic value of IT and better align resources with organizational
priorities. To seize these benefits, IT organizations need to utilize Project & Portfolio
Management (PPM) and consistently incorporate the disciplines of Portfolio Alignment,
Demand Optimization and Application Rationalization to ensure that they invest in the right
initiatives, support the right applications and take the right action to keep IT work on track.
Eliminate Waste Through Better Alignment
Every organization faces an inevitable disconnect when resources, activity, and direction fall
out of alignment. And with misalignment comes Waste. This is perhaps most apparent
within an IT department as the client example below illustrates.
The PowerSteering customer was a diversified, global manufacturing conglomerate where a
newly appointed Corporate CIO inherited a $500M IT budget, along with 29 international
regions and 29 deputy CIO’s who each had their own priorities and budgets. The new CIO
had no idea where or how effectively the IT budget was being spent. Step one was to
establish visibility across the global portfolio to assess the current status, projected ROI and
budget of each active item.
PowerSteering Software 25 First Street Cambridge, MA 02141 1.866.390.9088 www.powersteeringsoftware.com 2
3. In just 3 weeks he was able to create an inventory of his entire IT portfolio. In week 4, he
cancelled 20% of the active projects and re-deployed the resources to more important
priorities. How? It turned out to be surprisingly easier than he expected. Each of the
cancelled projects were either not aligned with the current strategy, targeted at systems to be
retired, redundant with other projects already completed or underway, or so far off track that
they needed to be completely redefined and re-scoped.
Many global organizations struggle with this kind of portfolio rationalization and
management. With distributed operations, outsourced processes, complex requirements, and
the natural tendency for organizational activity to be uncoordinated, the “20% rule” is almost
universally applicable. The challenge is finding the misaligned expenditures and having the
tools and determination to do something about it!
Conclusion
Implementing the governance processes of Portfolio Alignment, Demand Optimization, and
Application Rationalization can easily save 30% or more of your departmental budget while
improving service and execution against strategic objectives. The dismal trio of economic
downturn, increased internal demand, and rising costs doesn’t need to take your IT
organization by storm. With the right tools and effective means of strategic alignment, and
portfolio visibility, IT teams can weather the downturn and be prepared for the inevitable
return of growth and brighter days.
Read the full white paper now.
PowerSteering Software is the leader in business-driven project &
portfolio management (PPM) solutions for managing IT
Governance, New Product Development, Performance
Improvement, and other Business PMO initiatives. Its easy-to-use
software provides executives at BayCare, Johnson Controls,
Merck, PolyOne, Shaw Industries, UK National Health Service, US
Department of Defense, and over 140 other customers with
executive visibility, strategy alignment, and team productivity to
drive strategy and accelerate results across the organization.
PowerSteering was rated “Strong Positive” in the "MarketScope
for Project and Portfolio Management Applications" published
by Gartner, Inc.
PowerSteering Software 25 First Street Cambridge, MA 02141 1.866.390.9088 www.powersteeringsoftware.com 3