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:
- Structure and relationships
- Sequence and roadmaps
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.