IT Project Portfolio: Control Problems in a Public Organization

IT Project Portfolio: Control Problems in a Public

Organization

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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)

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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

Subordinate

FormalBehavior control Outcome control

Informal Clan control Self Control

(Kirsch 1997)

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When are different forms of control are efficient and appropriate (Kirsch 1997)?

• Task characteristics • Role expectations • Knowledge and skills

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Vertical division in portfolio management

Political level

Directors

IT executives

IT projects

Control form Evidence Behavior controlOutcome control Clan control Self control



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Political level

Directors

IT executives

IT projects

Control form Evidence Behavior control Exercised through bureaucratic

proceduresOutcome 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

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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.

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Political level

Directors

IT executives

IT projects

Control form Evidence Behavior control Some units has IT group

meetings Outcome control Minor Clan control Daily contact between the

director and the IT executiveSelf control Dedicated and knowledgeable

IT executives

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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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Political level

Directors

IT executives

IT projects

Control form Evidence Behavior control Use of project modelOutcome 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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Political level

Directors

IT executives

IT projects

Role expectations

Role expectations

Know

ledg

e an

d sk

ills

How to get the “right” mix of control

Task characteristics

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End

Thanks for your attention!

IT Project Portfolio: Control Problems in a Public Organization

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