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IT Project Portfolio Management: Vertical and Horizontal Work Design Problems in a Public Organization 1.

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Presentation on theme: "IT Project Portfolio Management: Vertical and Horizontal Work Design Problems in a Public Organization 1."— Presentation transcript:

1 IT Project Portfolio Management: Vertical and Horizontal Work Design Problems in a Public Organization 1

2 Thanks and welcome to Dr. Per Svejvig and Dr. Shegaw Mengiste 2

3 Overview 3 Discussion Analysis Research process Research questions Contributions Introduction PhD -Basis assumptions -Engaged Scholarship - Three cycles of engagement Theoretical frame - Five concepts from work design theory - Use of the five concepts - Concept map - Recommendations - Each research question's contribution to the IS literature - Definitions - Is this IS? - Practical problem (in local governments) - Research gab (RQ1) how does a public organization design IT PPM, (RQ2) what problems are caused by this design, (RQ3) and what changes can be recommended to improve IT PPM?

4 Introduction IT Project Portfolio Management (IT PPM) Analogy: IT PPM is like team management in professional cycling - it focuses on the teams overall strategy and allocation of resources. (Fonstad and Robertson 2006). 4

5 Introduction Information Systems characteristics: (1) IT PPM consists of vertical and horizontal mechanisms, linking different stakeholders from the business part and the and IT part of the organization (Fonstad and Robertson 2006). (2) IT PPM is interrelated with portfolios of IT applications, and portfolios of IT Infrastructure (Kumar et al. 2008). (3) IT PPM consists of IT projects, which I define as: the implementation or modification of a business units access to information using technical media such as computers, cables or phone switches (Bonham 2005). 5

6 Introduction 6 * Digital initiatives from the Danish government: Increased amount of digitalization initiatives during the last 30 years the greatest digital leap so far (Regeringen 2011). Cost cuts in the local governments budgets of historical dimensions: Budgets are 6 billion d.dk below the level in fulltime jobs in are abolish during 2011 (KLs Økonomiske Sekretariat 2012). A Practical problem 98 Danish local governments

7 Introduction 7 Norlan and McFarlan (2005) Local governments Der er bred enighed om at det er strategisk vigtigt at udvikle nye IT systemer og services Antal indbygg ere I høj grad I nogen grad I mindre grad Slet ikke Over DISIMIT 2012 (n=55) Danish Local governments go towards an more offensive mode in IT PPM?

8 Introduction 8 Local government of Newport

9 Introduktion From an Information Systems perspective Call for more knowledge regarding the vertical and horizontal mechanisms connecting organizations strategy to the local IT projects (Fonstad and Robertson 2006) Lack of empirical research identifying what IT PPM related problems a real life organization experiences. Most IT PPM research gives precedence to theory (Hansen and Kræmmergaard 2011), and will at worst ignore real life IT PPM problems. IT PPM practices suggested by the literature do not fit the reality of local governments. (Pedersen and Hansen 2010; Hansen 2011; Pedersen and Nielsen 2012). 9 *

10 Research questions (RQ1)How does a public organization design IT PPM, (RQ2) what problems are caused by this design, (RQ3) and what changes can be recommended to improve IT PPM? 10

11 Research framework 11

12 Research process Basic assumptions: Research must contribute to practice as well as research otherwise we (in IS) will lose credibility in the long run (Van de Ven 2007). Engaging in empirical reality increase the likelihood that research provides relevant results (Van de Ven 2007) Analogy – like the work of a miner digging for valuable metal. The miner will never find all the valuable metal below the surface. But the amount of days used on working in the mine and careful planning at night, will increase the likelihood of valuable finding (Kvale 1994). 12

13 Research process 13

14 Research process 14 Cycle of engagement PeriodEmpirical evidence 1 November 2010 to May 201 Interviews of nine IT project managers, Interview of six IT executives Collection of 35 documents Three observation studies 2 August 2011 to January 2012 Re-interviews of the six IT executives Re-interview of an IT project manager Interview of one IT manager Interview of tree vice directors One workshop involving the six IT executives Collection of 38 documents 3March 2012 to June 2012 Three interviews of the Central Units IT executive One workshop involving the organizations IT executives

15 Analysis 15 Concept 1: Vertical division of work:

16 Analysis 16 LevelAuthorityKnowledgeResources Political organization Authority to take major decisions regarding the organizations strategic direction IT PPM considered as less relevant Allocate money resources via budgets Director level Authority to take major decisions regarding major initiatives in the administrative organization Large knowledge regarding most important strategic IT projects Allocates resources via approving recommendation IT executive level Authority as a level 3 executives Knowledge regarding content in IT PPM and how IT PPM can be improved Most of IT executives resources are bound to maintaining the current systems IT project levelNo authority without steering group Lack of knowledge regarding IT project management is pronounced in unit based projects Internal resources are held by units and subunits Concept 1: Vertical division of work:

17 Analysis 17 Concept 2: Horizontal division of work: Archer and Ghasemzadeh 2007

18 Analysis 18 PhaseSeven key IT PPM tasksMain actors Pre selection Development of IT strategiesIT groups Development of methodology IT groups SelectionPre screening and individual project analysisIT project teams Portfolio selectionLevel of directors Post selectionIT Project developmentIT project teams IT project evaluationIT project teams Concept 2: Horizontal division of work:

19 Research framework 19

20 Analysis 20 Concept 3: Hierarchical decomposition problems Hansen and Kræmmergaard (2012a; 2012b)

21 Analysis 21 Hansen and Mengiste (2012) Concept 4: Modularity problems:

22 Analysis 22 Concept 5: Complex network problems:

23 Research framework 23

24 Discussion 24

25 Discussion 25 Recommendations to address Hierarchical decomposition problems Hansen and Kræmmergaard (2012b)

26 Discussion 26 Hansen and Mengiste (2012) Recommendations to address modularity problems

27 Discussion 27 Recommendations to address complex network problems (Cummings 2009)

28 Discussion 28 Recommendations to address complex network problems

29 Contributions (RQ1)How does a public organization design IT PPM Shows how vertical linking mechanisms, as emphasized by Fonstad and Robertson (2006), not only consist of funding reviews, reward systems, strategy boards: I find that authority, knowledge and resources can be divided across hierarchical levels Shows how horizontal linking mechanisms, as emphasized, by Fonstad and Robertson (2006) demands coordinate between units, not only coordination between IT and business units 29

30 Contributions (RQ2) what problems are caused by this design? My research takes an more empirical driven approach to identify problems (searching in three fundamental problem areas). My research is in contrast to the more normative advises from maturity and decision models in the IT PPM literature 30

31 Contributions (RQ3) what changes can be recommended to improve IT PPM? The IT PPM principles suggested by the literature does not fit the reality of Danish public organizations (Pedersen and Hansen 2010; Hansen 2011). I agree with Verhoef (2002) that use of more formalized mechanisms in IT PPM in an public organization is beneficial But I find that IT PPM is more that rational mechanisms, and therefore differs from the assumption by Verhoef (2002), that organizational stakeholders, like stock-brokers can apply friction-free marked mechanisms to select the most beneficial portfolio of IT projects. Thus I follow Hansen and Kræmmergard (2011), arguing that more research must be put on real life problems and conflicting interests, to provide more solid recommendations to improve IT PPM in a public organization 31


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