Strategic Information Systems Management

Abstract

This study will look at the issues surrounding Project Portfolio Management implementation by organizations. Specifically, the article will aim to expound and look into the interfaces and linkages of Project Portfolio management with strategic information systems management. Project Portfolio management can be an all-inclusive strategy that is anchored on the strategy of the organization as a whole. In this paper, we will look at how decisions related to project portfolio management are completed and managed. Factors that may hinder the effective engagement of the project portfolio and how it will work in coordination with strategic information systems will be discussed too. The research was conducted looking at various business organizations, and it depicted the interconnection between project portfolio management and the strategy of a company. However, the outcome also highlights how portfolio management experiences challenge when it is integrated into organizations. For students seeking business dissertation help, understanding these challenges and their solutions is crucial.

Introduction

In the current set, up and modern world organizations undergo numerous challenges concerning the environment, which forces them to adapt according to the changes that are realized. There has emerged a need for up to date and effective strategy processes. Business strategy implementation is part of this strategy process. Project portfolio management has proven to be a vital part of effective implementation of the strategy of businesses. Project portfolio can be described as a group of projects and plans set out to achieve a common objective (Martinsuo, 2013). The process of ensuring that the plans and projects are aligned to the business plan of a company is what can be termed as project portfolio management. This charged with project management can analyze and predict how much each project will be able to generate in returns after implementation in the portfolio through project portfolio management (Rajagopal et al., 2007). This is done through gathering all the data available form projects that are running then forecasting what it can be able to achieve from gathered information and comparing it with the portfolio. It also acts as a means of creating openness in terms of project management and delivery in organizations.

Project Portfolio management

Project portfolio management is a group of programs or projects that are integrated to aid inefficient management of the work in question to enable a business to meet its strategic needs. Recent research depicts a rise in organizations aiming at putting in place and improving project portfolio management (Archibald & Archibald, 2016). An increase in interest is due to strengthening the emphasis that demands better project portfolio management and processes and shifts towards managing projects more strategically businesses are adopting that. It is a complex process of decision making that makes it possible to analyze, gauge, and select any upcoming projects with priority and how well they will work with projects that are currently running. Research found that this process contains methods, practices, activities, policies, tools, and procedures that play a crucial role in the distribution and redistribution of the portfolio of projects to ensure an organization gets maximum returns in what it invests in (Rajagopal et al., 2007). The portfolio theory was first used concerning information systems management to focus on financial investments. This was when portfolio theory was used in projects of IT (Drews et al., 2013). This gave rise to what is currently known as modern project portfolio management. Early researchers indicated the possibility of growth in portfolio analysis to be a critical tool for business planning. In the early years when it was used, the main aim of the theory was to find out what sets of investments were a good pick so that organizations can be able to make as much money as they can at a certain level of risk for the people who were investing their money. In the later years, a majority of researchers focused on portfolio management concerning ICT and IT projects. This as claimed by research in those years that there is a significant reduction in spending by organizations of up to in some instances 40 percent when project portfolio management is used (Peppard & Ward, 2016). This portfolio management makes it possible to maintain swiftness and at the same time, get rid of investments that are not of great value. Information systems management projects highly rely on portfolio management to deliver value to organizations (Archibald & Archibald, 2016).

Strategic Information Systems

Strategic information systems are systems built to address business initiatives and issues surrounding the corporate world (Grant et al., 2010). They offer a much-desired competitive advantage to organizations as they make it possible for businesses to deliver goods or services that are market tailored and unique at affordable prices. Information system strategy plays an important role in business and information technology (Howard & Hargiss, 2017). It is vital in the firms’ process of allocating, storing, processing, and moving data from the information that they receive or develop. It is also important in helping businesses apply analytical tools and metrics to identify new opportunities for growth and expansion and effective ways in which they can become efficient and improve operations (Grant et al., 2010). A strategic information system acts as a linkage between organizational demands and emerging information technology. This process benefits an organization in that it makes it possible to understand the market in which it operates enabling it to meet the challenging requirements that arise in that market (Howard & Hargiss, 2017).

Project Portfolio Management Resources

To have a better understanding of project portfolio management, we will look at this subject from three perspectives that it has been categorized into. The theory from academic literature that looks into what project portfolio management can do, the goals and definitions. The other theory is the industry literature that seeks to explain the criteria and set out processes to be followed when implementing project portfolio management (Drews et al., 2013). Lastly, the software bit is about what this portfolio management can offer to the consumers. Project portfolio management is better understood by looking at it from the three perspectives mentioned above. The academic theory states that there are three main goals for project portfolio management, which are creating a balance, value maximization, and strategic goals that align with the portfolio (Tan & Theodorou, 2009). However, despite this, there are some areas that the academic theory does not clearly explain, and this is where the industry theory comes in. It is obtained from the industry standards of project portfolio management, and it offers information that covers a majority of the areas and issues surrounding project portfolio management. The bodies that are in charge of setting the standards of portfolio management are governments and the Project Management Institute. The standards set by the two bodies give a detailed explanation of tools and processes and offer proper guidelines for organizations to use while appending portfolio management practices (Rad & Levin, 2006). The last theory of software management gives a different dimension to portfolio management. Software literature gives organizations a competitive edge through increasing customer satisfaction levels and enabling proper actions to be taken in time.

Issues and Difficulties in Implementing Project Portfolio Management

Different issues are faced by organizations when implementing project portfolio management due to the difference in various organizations. This research highlights the most significant issues and challenges that were common across the majority of the organizations.

Openness and Transparency

A majority of the organizations have issues with openness and transparency when implementing project portfolio management systems in that it is not sufficient to see them through the whole process. There is a high level of interdependency in projects when it comes to portfolio management. This makes it possible to point out and address any possible issues that crop out in their early stages. Through these organizations avoid unforeseen setbacks and occurrences that derail their objectives and affect profits. With transparency and openness in sharing information, portfolio managers can view the progress. Higher transparency across projects in portfolio management that are complex benefits the organizations, and they should strive to achieve it every time (Maizlish & Handler, 2005). Process structuring to have clear information-sharing pathways is an example that project portfolio management can be able to put in place to have a smooth flow.

Stakeholders Involvement

Project portfolio management is a complex process that requires the input of every individual that is involved in an organization from the topmost positions of shareholders to the workers who are on the ground (Teller, 2013). Cooperation amongst all those levels of management in an institution is vital for clarity and direction. However, implementation of project portfolio management has proven to be a tall task with a lack of availability of the top management who are stakeholders in institutions. It is difficult for all stakeholders to be involved due to the systems of management that have been put in place in a majority of the institutions that make them able to run without much input from the shareholders. With portfolio management, the top most managers are tasked with the responsibility of making sure that projects are delivered, which requires their significant involvement and participation which makes it a challenge for the process success.

Lack of Capital

Project portfolio management involves numerous projects running at the same time to achieve a common function. Organizations run out of cash, in some instances prompting budget cuts in some areas. This massively affects the management of projects. The stakeholders and managers decide which projects to assign money to when there is a cash shortage prompting the postponement or complete abandoning of what is deemed least urgent (Maizlish & Handler, 2005). Ceasing the operations of one project in this system leads to a spillover effect on other projects that will, in the long run, affect the whole project portfolio management. This issue will need to be looked at in the future if organizations are to implement project portfolio

management. It is crucial to plan and find the necessary resources that will see a complete implementation of project portfolio management before deciding to engage in the process.

Managing variation in portfolio management

Project portfolio management is a dynamic process. Some fundamentals and basics form it, and then there are issues that it deals with that are aligned to the organization's strategic goals (Tan & Theodorou, 2009). A shift in the projects that are deemed to have been crucial to an organization is a hindrance in achieving the implementation of project portfolio management. This is largely attributed to the fact that most organizations are not able to decide which projects to end or add to remain relevant to the changing dynamics. The most common changes that are hard to deal with are individuals in charge of the process quitting or moving on and business changes.

Issues with Culture

With change comes resistance, and project portfolio management is a significant change when it is introduced in an organization. It is crucial to have a good culture when implementing it by getting the maximum support of the process from the topmost management in an institution (Teller, 2013). The support is crucial in keeping all the other workers in check and explaining what is happening to get them onboard. Without this support, cultural issues tend to crop up. These issues range from a poorly managed change system, improper budgets, lack of consistency, and poor stakeholder engagement, among others, which directly impact the achievements that can be realized through project portfolio management.

Possible Solutions

After looking into these issues, some of the possible solutions that can be implemented by organizations to ensure smooth integration and operation of project portfolio management include but are not limited to the following. Adapting the 5-question model that is based on capacity optimization, right project investment, execution, change absorption, and benefits realization is a good place to start by project managers in making sure that the project there are engaging in will be a good fit in the project portfolio management (Wu & Chatzipanos, 2018). Secondly, every organization needs to be fully aware of what it is capable of. Despite project portfolio management being popular, they have to be able to fit into a company`s procedures and available infrastructure. Rushing to implement it without considering if it fits into these two will lead to serious challenges along the way (Moore, 2010). The other solution is to share information about project portfolio management with the relevant teams. This enables everyone to have a clear picture of what the process is about and how it will benefit the organization reducing the rate of resistance that is likely to be experienced with the whole process. When it comes to senior management, there is a crucial need for management to make use of the same protocol if their projects fall under the same portfolio to enable a faster and smoother institutionalization of the process. When there is a problem, the rightful way to solve the problem is first through dialogue. Project portfolio management will trigger differences in feelings and opinions, and there needs to be an open platform for dialogue and to raise issues for the smooth running of the portfolio management (Peppard & Ward, 2016). This also allows for consultations internally and externally if needed. Work needs to be implemented in stages and not in an instance. This allows organizations to incorporate the emerging customer trends and demands in the development off the project portfolio management. Manual supervision also comes in handy in ensuring everything is running smoothly to avoid any issues with portfolio management (Moore, 2010). Also required is a clear outline of the foreseen risks likely to be encountered and any concerns for references. Lastly, project prioritization and budget allocations have to be based on the impact that a project has on the portfolio and the organization as a whole as opposed to giving priorities to projects that have already been budgeted (Wu & Chatzipanos, 2018).

Conclusion

Project portfolio management is not just a necessity but currently a crucial need for organizations as it creates an environment where positive discussions can be made before deciding on what is the best fit for an organization to prosper and move forward. It allows for proper planning and taking into account any risks that might arise due to taking a certain decision making it possible to plan for foreseen risks. The resources at the disposal of an organization are used well in line with what best they can be able to offer in terms of the goals set. Despite all the benefits that are associated with project portfolio management, some issues are bound to arise during its implementation. These issues border a wide range of concerns, including project portfolio management interfaces and linkages with strategic Information Systems Management, which have been discussed above. With the application of the possible solutions that this paper has offered, the process of project portfolio management implementation will be much smoother, enabling many organizations to benefit from its use and implementation.

References

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