Trends in Project Portfolio Management in Australia

Today we will be focusing on IT Management Practices – and specifically PPM (highlight appears)
With over 100 completed surveys the results will be statistically representative of the Australian and New Zealand Enterprise Market.22/05/09Copyright 2006 Longhaus Pty Ltd - All Rights Reserved<number>
Planning over emphasises “new investment”Less than 30% of the typical ICT budgetProjects fail to meet their objectivesUp to 2 in 3 projects are challengedFirms focus on annual measurement90% assess performance only once per annumFinancial measures dominate8 out of 10 organisations rely solely on finance metricsRegulation is increasingIn 2008 local CIOs will be faced with e-discovery, data disclosure and counter terrorism legislation
PPM is governance at the earliest stages of the investment cycle.
In 2006 Longhaus found that 31% were in the process of adopting, so piloting PPM and only 24% of Australian Enterprises were interested in PPM.In terms of timeframe 50% of organisations interested in PPM expect to do so in the next 12 to 24 months. This is not far behind the early adopters of which only one third claim to have had a PPM approach in place for more than 1 year.22/05/09Copyright 2008 Longhaus Pty Ltd - All Rights Reserved<number>
Existing approaches such as Six Sigma, PRINCE and ITIL don’t always integrate and so the process of unification is made more difficult. There is no one standard PPM method to rule them all. As a result the opportunity to create a managed and optimised process is virtually non-existent. But the fact that organisations are not mature does not prevent them seeking the benefits of PPM.22/05/09Copyright 2008 Longhaus Pty Ltd - All Rights Reserved<number>
Often the business case for PPM is built on quantitative improvements in resource utilisation in the short term to gain traction to address the quantitative benefits of more “effective” prioritisation and alignment.Interestingly outside of the top ten were:Better communication around projectsReducing decision and delivery risks Improved cost tracking and charge back Reducing project delivery costs Automation of decision support and approvals Compliance with Acts or Regulations42% of organisation have realised the expected benefits from PPM with the balance claiming it is still too early to tell.22/05/09Copyright 2008 Longhaus Pty Ltd - All Rights Reserved<number>
Inability to get training was the least likely to impede organisations in adopting PPM.As a process and measurement oriented approach that attempts to make the subjective objective and the qualitative quantitative, PPM often suffers due to cultural barriers. Both at the staff level in terms of the direct beneift their participation will yield (i.e. Will it make my life easier?) and for Executives in terms of accountability (i.e. I’m paid to make the hard decisions using my extensive experience!).22/05/09Copyright 2008 Longhaus Pty Ltd - All Rights Reserved<number>
20% to 45% reduction in project costsThrough:Elimination of redundant and rogue projects Corrective action on “in trouble” projectsSelection of projects with the strongest paybacksGreater window for forward planning10% to 30% reduction in application maintenance costsThrough:Increased application knowledge to extend useful lifeFaster scoping and execution of changeMore intelligent decisions in relation to upgrade, retire, replace, rewrite20% to 30% reduction in infrastructure operational costsThroughEliminate redundant software licensesStreamline asset inventory through consolidation and rationalisationOptimize operations staffing levels22/05/09Copyright 2008 Longhaus Pty Ltd - All Rights Reserved<number>
Portfolio management concepts are applicable to a wide range of domains, so remember that sponsors may be hiding in strange places22/05/09Copyright 2006 Encode Services Pty Ltd - All Rights Reserved<number>
Data fragmentation and islands of information is the enemy of PPM!

Trends in Project Portfolio Management in Australia

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