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The Financial Perspective

Take your company's annual revenues and multiply by .0025 (or just lop off the last three digits and multiply times 2.5).  That's what's in it for you (actually, for your company).  Here's how it works:

According to the latest "State of the CIO" survey, by CIO magazine, the average company's IT budget is equivilent to about 5% of revenue. .05
The average company commits 30% of the IT budget to new development.  The rest goes to maintenance and operations.                          x.30
Conservatively, on average, 50% of IT related projects fail to deliver the expected benefits.  This figure is extrapolated from reported studies and The Standish Group's "Chaos" reports.  These underperforming projects represent huge opportunities for savings. x .50
Using The Project Triad and The Project Trinity you can pinpoint at least 1/3 of the projects that have little to no chance of being successful.  I admit that this figure is speculative, but that's why I'm being so conservative.  Personally, with proper analysis of your proposed projects I believe this number should be over 50%. x .33
Multiply them all together (and round) to get the Total Savings Factor: .0025

For Example:



This is not just a one-time savings.  This new way of analyzing, selecting, and prioritizing projects will result in better control and more responsible management of the money, resources, and most importantly, the time invested in software-related activities.

The calculation for your company may be different.  Plug in your own numbers, but be honest.  If you're not getting the results you expect it's time to start figuring out why not.

Of course, this analysis doesn't begin to consider the value you'll gain through better collaboration, a more unified vision, higher levels of quality, and getting it right the first time.  Through this approach, you'll be able to focus on a lean portfolio of projects and initiatives that will not only provide the greatest benefits for the entire enterprise, but will also have the greatest probability for successful implementation.

NEXT: Learn about the tools, strategy, and methodology of Project Portfolio Excellence