or that if the project is successful, IT won't get any of the credit.
Let's skip the complaining and zero-in on one inarguable fact: There's a world
of difference between managing a project that was designed to create value, and
one that never had a chance. Unfortunately, all too many IT projects fall in
the latter category. CIOs should perform a very simple test to see how their
organization rates in terms of defining projects from a value perspective:
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Select the 10 active projects that you think are most critical to the
organization. Have lunch with the executive sponsor of each of these projects.
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Ask the business sponsor to explain how their organization's operations will
change after the project is completed.
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Once they've finished, ask them to ballpark the value of the change to them.
If the executive sponsor's business value estimate isn't commensurate with the
cost of executing each of these projects, then you, as CIO, have a major
business alignment problem! After all, the test was for the 10 most important
projects, not the entire project portfolio. Failure to get satisfactory answers
for any of the most important projects indicates a major business and IT
alignment issue.
If there are business and IT alignment issues, the solution involves education
and process change. IT professionals need to develop key analysis and
facilitation skills to lead the business to identify value opportunities up
front. Next, your company's IT project-approval and project-management
processes must be upgraded to assure that value measurement is rigorous and
consistent across the entire life cycle of every project. Finally, as CIO, you
need to instill courage and discipline in the IT staff to assure that project
definition and management are executed with a focus on value creation, i.e., no
slipping back into old habits, even if business customers feel value definition
is too time consuming.
If the brief business value test is successful for the top 10 projects,
consider expanding the experiment to cover more of the project portfolio.
However, delegate the examination to your key managers. Have them perform the
exercise and formally report back. World-class IT organizations practice value
management across their entire project portfolio. Knowing where you stand is an
important step in maximizing business and IT alignment.
-- Walt DuLaney
