Published: December 15 2008, 10:42 AM | no comments
by Steve Romero

I am certain you are dealing with the ramifications of the current economic downturn and the resulting consequences. Everyone is. In times like these, it is critical to remember that good governance is more important than ever.  Fortunately, there are people who get this.    

As I write this post I am on a plane to Atlanta. The local CA Sales Team has arranged a dinner venue where we will be presenting the purpose and promise of Project and Portfolio Management.  They have assembled some very senior folks from a number of major companies so the evening should generate some great discussions. I am sure much of the conversation will be dominated by the current state of the economy.

This forum was planned some time ago and we had it on the calendar weeks before the economic tide turned. I am encouraged that registration for our event has actually increased in recent days. Instead of people canceling their plans to attend, more have committed to an evening discussing this critical business process.

I am assuming the increase is due to the recognition that good Project and Portfolio Management is even more critical during tough times. We can afford to make mistakes in regard to our Enterprise investments when we have plenty of money. But when belts get tightened, we better make sure we are getting optimal value out of those few initiatives we can afford to undertake.

Organizations with good governance already have the conventions in place to make the appropriate changes in strategy, plans and operations to respond to current circumstances. Firms with sound PPM processes need simply decrease financial allocation to this portfolio, increase investment in that portfolio, adjust the risk quotient to another portfolio, etc. These adjustments are made in response to the changes in strategic direction necessary to keep the company afloat, if not profitable, in these turbulent times.

Organizations without good governance are now incented to correct this deficiency. They find they can no longer afford to make poor decisions. Their portfolios of investments need to be reasoned and rationale, so their decisions better not be arbitrary or ill-informed. Now, more than ever, good governance will ensure decisions are fact-based, well-founded, realized, and subsequently measured to determine if they were the right decisions.

Times are difficult for all of us. One of the few silver-linings for me will be the advent of governance improvements that will inevitably take place. It is my fervent wish that these governance processes, conventions and mechanisms will continue to be advocated and fostered - even after this latest economic storm has passed. My hope is that enterprises will come to realize the essential nature of good governance, in good times as well as bad. Only then, will they be ready for the next storm that comes.

Readers, what governance processes have you initiated or changed as a direct result of today's economy?  Or have you noticed that your governance processes are so robust that you have been able to "stay the course" despite the turbulence?

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