As you enter 2019, you are probably among the many CIOs around the world considering strategic goals and thinking about how to carry out the growing number of strategic projects without a significant proportional increase in your IT budget. And all the statistics on the failures of the project are engraved in the back of your mind.
McKinsey & Company writes that about 17% of IT projects go so bad that they threaten the company's existence. According to Gartner, the failure rate for projects with a budget greater than $ 1 million is 50% higher than projects with a budget of less than $ 350,000. And then there's the state of Rhode Island, where a $ 110 million project cost almost three times as much. I'm sure you do not want to be the next statistical reference. So! Why are the failures of the project still happening?
Each year, we continue to read about the statistics of failed projects and their numbers will increase as strategic projects play a greater role in project portfolios. Well, MIT and Capgemini have led a study with more than 1,300 global executives to identify key barriers to the successful execution of strategic digital innovation projects.
Guess what was on the list? These leaders identified governance as one of the major obstacles to the success of digital transformation efforts that harness technology as a strategic asset. When C-Suite executives identify strategic initiatives that leverage technology to improve customer value, improve business processes, and rethink business models, these initiatives are compromised and can negatively impact the success of your business if your process governance is inefficient or immature.
Therefore, you need to transform your current, possibly reactive, IT governance model into a new and mature proactive model, which I call Strategic IT Governance 2.0, which will reduce business risk, ensure alignment total on the selection / execution of projects and allow the company to: to accomplish its strategy, goals and objectives.
So, the obvious question is How does an IT organization ensure project alignment, increase project throughput and reduce risk, while enabling the company to achieve its strategic objectives? ? The solution is to develop a proactive competence in strategic IT governance – at the enterprise level – that focuses on project alignment, process discipline, and excellence. leadership.
Over the past year, I've covered this topic at many IT leaders' events and met with IT executives to share their insights, challenges, and opportunities to take on the challenge of a increasing portfolio of complex projects without proportional increase in budget. What is more difficult is that these complex technology projects are subject to greater risks that could affect timing, costs and quality. Therefore, if you are an ISD facing the same problems, let me introduce you to a methodology, framework, and strategic IT maturity assessment for Strategic Governance 2.0, which focuses on project alignment, discipline processes and leadership excellence.
Strategic IT Governance 2.0 encompasses the business. This implies that the focus is on the business value as well as the efficiency of the processes throughout the project lifecycle. To succeed in strategic IT governance, the company must embrace six critical success factors and the underlying best practices. A maturity assessment will determine how well your organization adheres to these best practices. I will discuss the maturity assessment in a few moments, but for the moment I want to give you a brief overview of the six critical success factors and the underlying best practices.
[Note: In future months I will share success stories on how CIOs are leading the charge to integrate Strategic IT Governance 2.0 across the business enterprise.]
Business value encompasses leadership excellence and includes the three critical success factors and associated best practices that form the foundation for executive and operational level governance across the organization and the organization. the computer organization. I am a strong supporter of IT in the enterprise, but I use both terms until the stigma of separating IT and business is eliminated.
Leadership sponsorship is an absolute necessity for the success of any business initiative and must be adopted by the entire management hierarchy.
Business / IT partnership
The business / IT partnership is now recognized as a necessity by many companies. Gone are the days when IT remained a tactical organization subject to the whims of the company. Today, technology is at the heart of every company's products, services, and business processes. The IT organization proactively collaborates with business unit leaders as teammates to identify and develop new products and services. and integrate technology as an integral part of the business strategy.
In simple terms, strategic alignment consists of best practices ensuring that the selection / execution of projects aligns with the strategic objectives of the company. We are all aware of black hole projects this does not correspond to the company's strategy, but takes time, resources and money, which limits the flow of projects and creates a backlog of projects which, if they were performed, would provide measurable commercial value.
The efficiency of the process
Process efficiency is a combination of people working on the right project activities and executing them with the excellence of the project processes. This must be the new standard in the business. It's about doing the right things and doing them right. In simple terms, it's a combination of efficiency (doing well) and efficiency (doing well).
Collaboration is a word often used but not always practiced. Most importantly, collaboration must be proactive and non-reactive. What do I mean by that? Each project has key stakeholders, but often they do not have a voice when they provide information on the status of the project.
Process optimization is a critical success factor based on four best practices that involve project management and execution processes.
Metrics of best practices
Best practice measures focus on proactive project management. We recognize that there are times when projects require a reactive approach and that we must take appropriate measures to mitigate the risks. Although we can not predict the future accurately, we can, however, attempt to predict results based on past experience using Data Analytics / AI.