A project portfolio is more than just an inventory of individual projects. Organizations can apply the principles of ‘value driven transformation’ to obtain a better mix of investments as their business and application landscapes evolve.
The path leading up to this point starts at C-level and can be jumpstarted by way of a small Business Strategy Realization diagnosis.
Financial aspects are not the only investment criteria
One Monday, a business case is presented to your CEO. The NPV (Net Present Value) looks wonderful. Apart from the fact that your CEO knows that business cases are often simply used as a sales instrument for projects, his mind wanders.
Even though the NVP looks very attractive, the CEO wonders whether this is the best investment for the required budget. What other info may be needed to take the proper investment decision? The CEO no longer thinks about the business case, but about how decisions are taken. Something’s wrong about this process, but the CEO can’t put his finger on the problem just yet.
Value Driven Transformation as solution
Value Driven Transformation can provide the answer your CEO is looking for. Value Driven Transformation starts from the business strategy, which is translated into measurable strategic objectives after which goals are set to realize these objectives. That may sound obvious, but there’s a big different with approaching the matter from an individual project or business case.
In the latter scenario, someone has an idea, for which a business case is put together, which then gets linked to strategic objectives. With Value Driven Transformation on the other hand, the starting point is always the business strategy and it’s used to determine the best projects and investments. Now a portfolio becomes more than just an inventory of projects; it’s a means to realize a business strategy purposefully and as efficiently as possible.
Start with a Business Strategy Realization Assessment
Making the shift towards Value Driven Transformation is typically a culture change. And culture is one of the most rigid aspects to change in an organization. This can only be done step by step, starting with awareness.
To create awareness about the gaps in the way in which investment decisions are taken about projects and programs, we’ve created the Strategy Realization Assessment toolkit. This is a 360-degree diagnosis tool that helps you zoom in on the following dimensions:
- Business strategy
- The relationship between Business and IT
- Governance, including the organizational structure that’s relevant for delivery
- Enterprise architecture for decision makers
- Portfolio management
- Program and project management
- Change management
- The role of C-level in the software development lifecycle
The goal of the toolkit is to identify the structural points that need optimizing about how an organization manages transformation investments at C-level. The key here is to stop thinking in terms of investments at the project level and to start thinking in terms of value to be realized – not just financially.
Want to know more about Value Driven Transformation and what it can help you reach your business objectives? Get in touch.