The risks of not taking action are too great:
- 70% of CEOs are fired for lack of strategy execution and 40% fail within 18 months. If project investments are strategy execution; lack of control of the project investment portfolio is likely to pose a significant risk of failure.
- Discretionary spending needs to be reduced to cope with changes in the business climate, but there is still a need to keep investing to position the organisation for the future.
- A competitor has just changed the rules in the market. The organisation’s project investments need to be rebalanced immediately to address the threat.
- Head count needs to be reduced, so they the project investment portfolio must be re-balanced to make best use of the remaining staff.
- As part of an acquisition or merger the synergies, benefits and possible costs/risks from taking over the target’s project investments need to be understood. Or an understanding of investments the two organisations are running and what overlap might exist is required.
- A corporate acquisition and integration needs to deliver savings from the combined organisation and combine project investment portfolios.
- For the CIO or head of corporate services: their organisation can’t deliver all the support to change programmes/project that the business wants delivered.
- For the CFO, Corporate governance (e.g. Sarbanes-Oxley) requires confidence on what the expected costs and returns of the project investment portfolio are so that officers can inform the markets.
Contact Lexacam now for more information.
