Mike Gilpin poses this question in the most recent post to his blog. This question was sparked at Forrester’s Business Process & Application Delivery Forum during a conversation during the session “Using The Next Generation PMO To Promote Innovation.” What’s interesting is that the question came from an attendee -- presumably aligned with their firm’s PMO -- who said that in their firm, strategic investment planning is led by their enterprise architecture team, which is responsible for the strategic planning and business architecture processes.
There are multiple ways to come up with the “best answer” to this question. Nigel Fenwick discusses the answer in terms of the CIO’s responsibility to own strategy development -- and the coordination of functions necessary to carry out strategy. I’d like to answer this from the perspective of “what does it take to have an effective strategic investment planning process?”, examining the value the EA function and the PMO can provide.
My colleague Craig Symons, who is Forrester’s expert on IT governance, defines effective governance as ensuring the best answers to these questions:
I was in the audience at our recent “Business Process & Application Delivery Forum” for the track session “Using The Next-Generation PMO To Promote Innovation,” which was delivered by Margo Visitacion. The premise of the session was that leading-edge PMOs (project management offices) are evolving to a more strategic role, focused on portfolio management of business investment rather than just IT projects or programs.
I know this phenomenon is real because I, too, have talked with multiple Forrester clients, PMO leaders, who have elevated the mission of their PMO to this level -- often to the extent that they no longer report into the CIO but are outside IT, reporting into a business exec like the COO or CEO. In so doing, they have refocused their efforts on everything from guiding business leaders through building a business case for the investments they want to make, to guiding decision-makers through selection from the portfolio of investment proposals, to tracking benefits realization and ROI after the fact. PMOs with this kind of business-focused, strategic mission have greater business impact and are often close partners with executives leading their firm.
Many clients have suggested their PMO mission is already elevated to this level. They now focus their efforts on everything from guiding business leaders through building a business case for the investments they want to make, to guiding decision-makers through selection from the portfolio of investment proposals, to tracking benefits realization and ROI after the fact. PMOs with this kind of business-focused, strategic mission have greater business impact and are often close partners with executives leading their firm.
With Halloween just around the corner, it’s time to get creative about how you can scare the pants off of the people in your IT organization. I’ve been attending a fair amount of CIO events recently, and in the spirit of Halloween I put together a few costumes that I can guarantee will keep your CIO up at night.
A Storm Cloud. While “The Fog” might have scared your CIO in 1980, thirty years later it's the cloud that is scaring him. Despite all of the hype around "as-a-service technologies" over the past two years, Forrester has found 48% of IT decision makers still say they are “not interested” or “have no plans to adopt” software-as-a-service -- a number that rises for other cloud-based offerings. Why the lack of interest? Security, integration, and lack of customization top the list of key SaaS concerns. Yet, as the cost savings and purchasing flexibility benefits becomes increasingly obvious, IT professionals know they have to get comfortable with their fears to reap the benefits that cloud-based offerings provide.