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IT Project Portfolio: Control Problems in a Public Organization

IT Project Portfolio: Control Problems in a Public Organization. Presentation . Lars K Hansen PhD fellow Working experience The DISIMIT project 11 Local governments and 2 consultancy firms Newport . Appling an theoretical lens and its assumptions.

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IT Project Portfolio: Control Problems in a Public Organization

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  1. IT Project Portfolio: Control Problems in a Public Organization

  2. Presentation • Lars K Hansen • PhD fellow • Working experience • The DISIMIT project • 11 Local governments and 2 consultancy firms • Newport

  3. Appling an theoretical lens and its assumptions • Looking for problems...and problems you will find • The executive and the three consultants • Theories are based on certain assumptions • Portfolio management maturity • How do we know that portfolio management is worth the effort? • P3M3 (OGC), PMI, and Kendall and Rollings (2003)

  4. How to cope with vertical division • Control is considered broadly: • “Including all attempts to ensure that individuals in an organization act in a manner that is consistent with meeting organizational goals and objectives” (Kirsch 1997) Superior Formal Behavior control Outcome control Informal Clan control Self Control Subordinate (Kirsch 1997)

  5. How to cope with vertical division • When are different forms of control are efficient and appropriate (Kirsch 1997)? • Task characteristics • Role expectations • Knowledge and skills

  6. Vertical division in portfolio management Political level Directors IT executives IT projects

  7. Vertical division in portfolio management Political level Directors IT executives IT projects

  8. Vertical division in portfolio management Conclusions: Use of clan control mechanisms are insufficient to control IT PPM performance. Clan control time is consuming and IT PPM is not the main emphasis of this level.

  9. Vertical division in portfolio management Political level Directors IT executives IT projects

  10. Vertical division in portfolio management • Conclusions: • Insufficient use of behavior and outcome control • The importance of the IT groups • How often have the director level asked about the performance of the IT portfolio? ….never! • Initiatives taken by the IT executives easily become isolated islands • Conclusions: • How do the directors know that the organization has available internal resources? – Not quantified • This tempts the directors to start too many IT projects

  11. Vertical division in portfolio management Political level Directors IT executives IT projects

  12. Vertical division • Conclusions: • Lack of time for IT project managers • Emerging new IT projects • Not attractive goal “just get it done” • Use of informal measures for IT project success makes it difficult to value if not directly involved • Informal control has high transactions costs • Conclusions: • IT executive “I actually don't know if my IT projects creates value “ • Benefits vs. costs • Data shows that evaluating the total cost of IT projects is difficult - a great deal of IT projects cost are internal resources – and they are not measured • IT executive “I actually don't know if my IT projects creates value

  13. Vertical division in portfolio management

  14. How to cope with vertical division How to get the “right” mix of control Role expectations Knowledge and skills Role expectations Political level Task characteristics Directors IT executives IT projects

  15. End • Thanks for your attention!

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