Dec 162010


Leadership IT Organizations (ITOs) are focusing on implementation and integration of three key Value Accretion disciplines over the next 12 months. The continuing uncertainty of the economic climate over the next 12 to 18 months is moving Governors, County Executives and City Mayors and Managers to increasingly look for both short-term and long-term cost reductions in operations.

Rather than focusing on downsizing and hoping to fill vacant positions next year, I believe savvy IT Leaders will move their IT organizations toward a “Business within the Business” applying three critical disciplines on an enterprise basis. These three Value Accretion disciplines include a clear focus on:

  1. Developing a Program/Portfolio Management Office
  2. Increasing Project Management Maturity, and
  3. Improving IT Operational Performance

Government Program/Portfolio Management Office (PPMOs). Specifically within the Government sector, ITOs that deploy a Program/Portfolio Management Office and Project Management disciplines for governance of large projects will win big. They will have the ability to show immediate and long term cost savings from optimized and leveraged management of modernization projects. Performance-based Projects will capture clearly defined value and enable sustainable business practices.

OPM3 and Project Management. In order to move swiftly into modernization projects, ITOs must know how and where to develop maturity. The Organizational Project Management Maturity Model (OPM3) sponsored by the Project Management Institute (PMI) provides a unique method of assessment. Coupled with fact-based recommendations, this assessment will enable CIOs to more successfully understand Project Management weaknesses and corrective actions more quickly and implement large projects with greater confidence while instituting key performance measures.

IT Operational Performance Measures. A credible mass of Government IT organizations will utilize operational and personal performance measures tied directly to value accretion of investments made in technology and support functions. The primary areas of performance measures will be based on existing “best practices” of Control Objectives for IT (CoBIT) for operational improvements, Information Technology Infrastructure Library (ITIL) for service delivery improvements and COSO for managing risks.

Government IT Organizations that implement these three critical areas of value accretion will gain credibility and, more importantly, be entrusted with scarce funding for implementing needed improvements. IT Organizations working with these three disciplines to optimize their operations and provide desired services to their customers will be seen as business partners and leaders in 2011.

[Editor’s Note: This post is part of the annual “Cutter Predicts …” series, compiled at the Cutter Consortium website.]


Mark Peterson

Mark Peterson is a Senior Consultant with Cutter Consortium’s Business Technology Strategies practice. Mark has extensive experience in business and IT strategy development, organizational redesign, portfolio management and IT value discipline integrations to client environments.


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