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Traditional Strategic Planning Is Still Not Very Strategic

Enterprises have invested billions of dollars implementing PPM solutions under the promise that they would increase project effectiveness and efficiency. But have those solutions delivered on their promises?

Unfortunately, the answer is no. Traditional PPM is simply failing to deliver the anticipated results. There are many reasons, but at a fundamental level, PPM is notorious for lacking a business focus and for placing too much faith in scheduling. In a recent UMT360 webinar Transform 2015 Planning: Moving from Project to Capability Based Investment Planning, CEO Mike Gruia shared some startling statistics:

  • Nearly 33% of projects fail to meet their goals or business intent
  • Nearly one in five projects fail to be completed
  • 43% of all projects are delivered late or over budget
  • Only 54% of the investments deliver their promised value

Are We Just Planning for Planning’s Sake?

Planning is a cornerstone of traditional PPM. Organizations annually embark on an elaborate exercise of planning IT investments for the coming year, cloaked in language and activities that strive to be strategic. Alas, for most organizations, this time honored process is less about strategy and more about simply conducting a calendar-driven ritual that is all about strategic planning. Invariably, this process results in a faulty, bottom-up approach to investments that essentially selects the best of the worst and is completely disconnected from business capabilities.

The Secret of Capability-Based Investment Planning

Rooted in a dated approach and delivering sub-par results, many of today’s processes and methods for managing their enterprise investments are no longer good enough. They were not designed for networked organizations operating at high speeds, and they neglect to incorporate financial management practices into the management of programs, portfolios and assets.

The good news is, it’s possible to evolve an organization quickly to a capabilities mindset by focusing attention on these seven broad areas:

  1. Structure and relationships
  2. Prioritization
  3. Financials
  4. Sequence and roadmaps
  5. Allocation
  6. Re-allocation
  7. Measurements

This evolution requires adopting a new mindset and a new approach. To learn more about the benefits of taking a more capability-centric approach to planning, listen to the webcast now.

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.