IT Project Portfolio:
Control Problems in a Public
Organization
Presentation
•
Lars K Hansen
• PhD fellow
• Working experience
•
The DISIMIT project
• 11 Local governments and 2 consultancy firms
• Newport
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Appling an theoretical lens and its
assumptions
•
Looking for problems...and problems you will find
•
The executive and the three consultants
•
Theories are based on certain assumptions
• Portfolio management maturity
• How do we know that portfolio management is worth the
effort?
• P3M3 (OGC), PMI, and Kendall and Rollings (2003)
3
How to cope with vertical division
Control is considered broadly:
“Including all attempts to ensure that individuals in an
organization act in a manner that is consistent with meeting
organizational goals and objectives” (Kirsch 1997)
Superior
Formal
Behavior control
Outcome control
Informal
Clan control
Self Control
Subordinate
(Kirsch 1997)
4
How to cope with vertical division
When are different forms of control are efficient and
appropriate (Kirsch 1997)?
•
•
•
Task characteristics
Role expectations
Knowledge and skills
5
6
Vertical division in portfolio management
Political level
Control form
Evidence
Behavior control
Outcome control
Clan control
Self control
Directors
Control form
Evidence
Behavior control
Outcome control
Clan control
IT executives
Self control
Control form
Evidence
Behavior control
Outcome control
Clan control
IT projects
Self control
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Vertical division in portfolio management
Political level
Control form
Evidence
Behavior control
Exercised through bureaucratic
procedures
Outcome control
Minor
Clan control
The most predominate form of
control in this relation is the clan
control conducted by the
aldermen’s daily involvement in
the day-to-day operations
Self control
Minor
Directors
IT executives
IT projects
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Vertical division in portfolio management
Conclusions:
Use of clan control mechanisms are
insufficient to control IT PPM performance.
Clan control time is consuming and IT PPM is
not the main emphasis of this level.
9
Vertical division in portfolio management
Political level
Directors
IT executives
Control form
Evidence
Behavior control
Some units has IT group
meetings
Outcome control
Minor
Clan control
Daily contact between the
director and the IT executive
Self control
Dedicated and knowledgeable
IT executives
IT projects
10
Vertical division in portfolio management
Conclusions:
• Insufficient use of behavior and outcome control
• The importance of the IT groups
• How often have the director level asked about the
performance of the IT portfolio? ….never!
• Initiatives taken by the IT executives easily become
isolated islands
Conclusions:
• How do the directors know that the organization has
available internal resources? – Not quantified
• This tempts the directors to start too many IT
projects
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Vertical division in portfolio management
Political level
Directors
IT executives
IT projects
Control form
Evidence
Behavior control
Use of project model
Outcome control
Outcome control: in some
aspects
Clan control
Meeting between IT project
managers and IT executives
Self control
Dedicate IT project managers
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Vertical division
Conclusions:
• Lack of time for IT project managers
• Emerging new IT projects
• Not attractive goal “just get it done”
• Use of informal measures for IT project success makes it
difficult to value if not directly involved
• Informal control has high transactions costs
Conclusions:
• IT executive “I actually don't know if my IT projects creates
value “
• Benefits vs. costs
• Data shows that evaluating the total cost of IT projects is
difficult - a great deal of IT projects cost are internal resources –
and they are not measured
• IT executive “I actually don't know if my IT projects creates
value
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Vertical division in portfolio management
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How to cope with vertical division
How to get the “right” mix of control
Political level
IT executives
Role expectations
Directors
Task
characteristics
IT projects
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End
Thanks for your attention!
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