| Several years ago, a well-known IT consultant and | | | | IT included - can result in a substantial loss of capital |
| author of several books on IT Strategy mentioned to | | | | resources and ultimately in reduced profitability. |
| me that CIOs were no longer particularly concerned | | | | Yet, despite the potential benefits of thoughtfully |
| about prioritizing their Information Technology Project | | | | selecting and ranking proposed investments in |
| Portfolios...they had other more pressing issues. At the | | | | technology, there is something to be said about the |
| time, I had some difficulty processing this thought and | | | | challenge and the cultural leap necessary to |
| found it troubling on many levels. Try though I did, I was | | | | institutionalize IT Portfolio prioritization. For starters, it is |
| unable to reconcile the statement itself with its source | | | | never easy. Even for those of us who love finance, |
| - a learned colleague, friend and mentor. So, suffering | | | | strategy and information technology...Even for those of |
| from what I believe psychologists refer to as "cognitive | | | | us who realize that getting at the business value of |
| dissonance", I youthfully resigned myself to living with | | | | technology investments means looking at more than |
| this conflict. | | | | just the financial impact. And particularly for those of |
| Now that I am older and wiser, I have concluded that | | | | us who acknowledge the value of capturing a |
| my reluctance to accept this statement arose from | | | | project's strategic and operational impact. It has never |
| the fact that I was - and still am - an MBA. Now, some | | | | been easy. But then, few things of value are easy to |
| may argue that with those three little letters, I had | | | | achieve. And so it is that despite the potential |
| tarnished a perfectly credible technical background and | | | | obstacles, the process of prioritizing and selecting |
| could no longer discern the unique attributes of 21st | | | | potential projects remains a key IT governance |
| century information technology. Surely, a student of | | | | activity. |
| computer science "untainted" by a business | | | | Faced with 21st Century economic limitations, the art |
| perspective could quickly see the irrelevance of | | | | of choosing the right technologies still has relevance |
| prioritizing potential IT projects? Clearly my discomfort | | | | and far reaching implications for today's IT executive. |
| arose from this personal deficiency! After all, in the 21st | | | | And, recognizing the need, some organizations struggle |
| century, technology has changed...and savvy CIOs in | | | | to establish a "perfect" prioritization process. While |
| lockstep with rapidly changing information technology | | | | implementing a responsive, non-burdensome process is |
| no longer need to prioritize...right? | | | | a most desirable goal, consistency in evaluation is also |
| Well, perhaps not! Call me a skeptic, but unless we | | | | critical in building an effective IT portfolio. One could |
| have all been blessed with "self prioritizing" | | | | argue that consistently applying the same prioritization |
| technologies, I fail to see how CIOs could ever stop | | | | criteria over time is almost as important as what |
| prioritizing their planned IT portfolios. On the contrary, it | | | | particular prioritization method is used. Whatever the |
| seems to me that there may be some merit in the old | | | | choice of methodology, a consistent process that |
| adage: "The more things change the more they remain | | | | becomes "institutionalized" within an existing |
| the same!" And, if this glimmer of insight is true, then it's | | | | organizational culture will bring order to an otherwise |
| likely that the harsh, pressing realities of limited capital, | | | | chaotic decision-making process. Personally, I lean |
| fewer resources and scaled back profitability will signal | | | | toward holistic scorecard approaches that rank |
| a return to the prioritized IT portfolio. Why? Because to | | | | potential IT investments across key areas of business |
| not prioritize and thoughtfully apply precious resources | | | | performance. However, regardless of the approach, I |
| to the highest value projects is at best truly | | | | urge 21st Century CIOs to adopt a methodology to |
| shortsighted. At worst, not prioritizing could drain the | | | | prioritize their technology investments. Because given |
| company's financial resources for little or no return. | | | | today's difficult economic environment, any |
| Without the needed governance, any asset portfolio - | | | | methodology is better than no prioritization at all. |