Is each of your IT investments contributing to enterprise strategy? This is one of the most fundamental questions answered by the governance process of Project and Portfolio Management (PPM). Though this may seem to be a ridiculously rudimentary aspect of investment governance, it bears repeating - again and again.

I mention the need to use enterprise strategy as the primary criteria for selecting investments in my IT Governance, PPM, and PMO presentations. I mention it every chance I get. I do so because the vast majority of organizations I visit around the world cannot quickly and confidently identify the enterprise strategy linkage for each of the projects and programs in their portfolio(s) of investments. I get the same number of, "Umm...."s when I ask about the strategic significance, priority, and value of their portfolio of applications.

So I got a huge kick yesterday when one of the IT executives assembled to hear my IT Governance presentation shared one of my own anecdotes on the topic with the other members of the IT leadership team. He was able to do so because he and another gentleman in the room at this company had attended the first presentation I delivered here in Australia 3 years ago.

He started by saying he still uses some of my anecdotes from that morning Field Marketing Event. It was my "Critical Components of the PMO" presentation where I discuss the 9 objectives I believe help transform PMOs from "paper-pushers" and "process-police" to "participants in enterprise success." The anecdote is from the objective: Facilitate choosing the right project mix and priority.

I start by telling audiences that though the PMO doesn't choose which projects are approved, there are a number of things they can do to influence the investment governance committee to choose the right ones. Most of the recommendations focus on providing the decision-makers with as much fact-based data as possible to determine if a project should be done and if it can be done. But my first recommendation is for the PMO to identify link to goals and strategy. This is from where the anecdote originates.

Though the PMO can't tell the decision-makers what to choose, they should try to influence the steering committee to use thoughtful, meaningful, measured, enterprise specific criteria to make reasoned and rational investment decisions. I acknowledge this may be difficult for PMOs to do because they likely have little influence on executive leadership. But I insist the PMO should not sit still if they see project after project come down the pipe with no apparent link to enterprise strategy. But what can a PMO do?

I tell PMO Directors to post a giant chart with two columns outside their offices. In the first column is the list of all of the projects and programs currently underway. In the second column is the enterprise strategy or goal to which the project is linked. In those instances where the PMO does not know the linked strategy or goal, they should draw a great big red question mark. When people walk by and ask, "What are those big red questions marks?" the PMO Directors responds, "Those are projects we are working on and we have no idea why."

This anecdote is always good for a chuckle and I quickly go on to acknowledge the chart won't likely stay up very long. I also warn them it may not be the best career move for the PMO Director and that I simply want to prove a point. Every single thing we do should be tied to enterprise goals and strategy and it is up to everyone in the organization to try to influence that end.

The executive shared the anecdote with his fellow IT leaders and they all had a little laugh that quickly degraded into something that sounded more like subdued groans accompanied by slight headshaking. It provided a great start to our meeting and we ended up having a fantastic two-hour discussion of IT Governance.

Again, I got a huge kick out him remembering the story and sharing it with his team. I also couldn't help but marvel at the fact I was almost halfway around the world from my home sitting once again with some folks I presented to 3 years ago. It was gratifying and sad at the same time. Organization after organization continues to struggle to make the best possible investment decisions for their enterprises. PPM continues to be incredibly immature. And I still find the need to remind folks of the necessity to fulfill one of the most fundamental aspects of project selection - link to enterprise strategy.

Please write me back and tell me that your organization makes the link. Please tell me you only invest in those things you feel will enable you to realize your enterprise goals and strategies. Otherwise, you may have to draw some big red questions marks.

Steve Romero, IT Governance Evangelist