More than 40% of ICT based development projects fail. Without an up-to-date view of the situation an organisation cannot make administrative manoeuvres or even identify what the organisation should administer and how. Strategic portfolio management can reduce failures by more than 60%
– Managing development programmes and projects with Excel is reaching the end of the road. According to the latest research into portfolio management as many as 75% of large corporations are going to start using portfolio management by 2014, Managing Partner and Senior Advisor Esa Toivonen from Thinking Business tells us.
We are moving from the perspective of one project or investment to managing the whole entity. Companies as well as public administration need methods and practices which take into account the organisation's operations model and strategy, changing business environment, key resources and the development of strategic technology.
In the right place at the right time
– Roosevelt said that 90% of wisdom is connected to being in the right place at the right time. When we have a clear method to manage the whole, to connect projects to strategic targets and to evaluate them with consistent criteria, we as the management will have all the information we need for business-based prioritisation.
– In practice it can, of course, also mean that new technologies are not so easily available for use or that everyone's "pet projects" will not necessarily get financing so easily after the portfolio is in use. This means that they don't fulfil strategically important criteria at the time of scrutiny, Senior Partner Aarni Heiskanen, in charge of the development of Thinking Portfolio service, says with a smile.
ICT Departments are pioneers
ICT usually plays a significant role in development projects. Data management administration must assess the project's ratio to different architecture, but the most important starting point is still what they can achieve with it. A project portfolio helps the data management administration's own projects by "explaining" the project's value and significance to the highest management from the business point of view.
The Fazer Group IT unit started using the Thinking Portfolio application 5 years ago. Nowadays it is used by all project managers and project owners in the company. Finavia also started to think about project portfolios when their project operations were fragmental and it was difficult to compare projects with each other. According to Tuomo Svanlund of Consolis CIO transparency is most important. One gets what one orders.
The overall image of portfolio management rules in public administration
In the Itä-Savo Hospital District the designer Antti Kaipainen can see that Thinking Portfolio helps to perceive issues better and it is also easier to learn from them. In the City of Mikkeli the IT manager Tommi Ryhänen has experienced that Thinking Portfolio brings issues to light and rethinking their impact has become comprehensive.
Simple and easy-to-use application
The Thinking Portfolio portfolio management programme includes everything essential from the project start-up to calculating the benefits. With a project portfolio the organisation will get an accurate view of the situation which helps to target investments at the right time and to also cancel projects, because of a changed business situation for example.
Thinking Portfolio is also being used by Cargotec Oyj, Lassila & Tikanoja Oyj, Lemminkäinen Oyj, the Finnish Board of Education and University of Helsinki.
At its best Thinking Portfolio promotes open management culture. Project suggestions, project statuses and project results can be open to the whole organisation within a specified scope. When you wish to familiarise yourself with the project portfolio and Thinking Portfolio ask us to contact you.