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How to Overcome IT Investment Roadblocks

Many of today’s processes and methods for managing technology investments were not designed for networked organizations operating at high speeds. Financial management best practices  were not created for programs, portfolios and assets.

In a recent webinar, we polled attendees and asked them about which factors are most important in overcoming IT investment management roadblocks. The top top answers, Siloed Investment Thinking and Lacking Enterprise Roadmaps, together accounted for more than half of the total number of responses. This tells me that there is still a significant amount of siloed thinking when it comes to planning and implementation.

Of particular interest is that Static Resource Allocation and the Inability to  Shift from Project to Product Based Thinking together account for 36% of responses. Those factors address a key impediment – the ability to think, plan, manage and allocate resources in a rapidly changing marketplace.

Effectively managing the IT portfolio requires a significant shift from project-based thinking to more of a product-based approach to investments. Product-based makes innovation easier as it reduces the need to continuously struggle to generate acceptable innovation ideas. Projects are not discrete investments but rather releases that are part of a free flow of investments that improve enterprise capabilities.

Additionally, companies need to recognize that traditional resource allocation is optimized for businesses that perform according to schedule on an annual planning cycle.  Unfortunately, it cannot accommodate the challenges of mounting complexity and rapid change. They can learn from pioneers like Frank La Rocca from Consolidated Edison who adopted agile resource allocation practices, including monthly reviews of project performance and the dynamic reallocation of resources based on that assessment,  which have proven to be highly effective for the utility.  (Learn more about Frank La Rocca’s experience with ConEdison here)

The agile allocation of resources and product-based thinking support the new market demands for the ongoing process of “searching, allocating, learning and modifying” investments.

Click here to view the webinar and learn how CIOs can take control of IT investments with Strategic Portfolio Management.

Mike Gruia, Co-founder

Mike is a visionary leader in Portfolio Management, known for his deep knowledge and unique thinking. He grounds his approach in five fundamental pillars: economics principles, applied mathematics, business architecture concepts, system dynamics, and behavioral aspects. Recognized by industry experts, including Gartner, Mike is considered a pioneer in Portfolio Management. He has co-founded three companies specializing in Portfolio Management solutions, including UMT Consulting, a leader in the field before being sold to EY in 2015, and UMT360, sold to Teleo Capital in 2019. With degrees in Industrial & Systems Engineering and Operations Research from Columbia University and the Technion Israeli Institute of Technology, Mike has played an active role in shaping the evolution of Portfolio Management, challenging current practices, and anticipating future trends.