IT PROJECT PORTFOLIO MANAGEMENT: MODULARITY PROBLEMS IN A PUBLIC ORGANIZATION

As today’s public and private sector organizations heavily rely on Information Technology (IT) to provide faster cycle times and better services, IT Project Portfolio Management (IT PPM) has become a high priority issue. This research adopts engaged scholarship to investigate IT PPM practices within a large local government. The investigation applies Modularity theory to analyze rich data from the local government covering several units with quite diverse functions to address the following two questions (1) which modularity problems does a public organization have in its IT PPM practices, and (2) what modularity mechanisms can be recommended to improve IT PPM? By drawing on the theory’s distinction between visible information and Hidden design parameters five modularity problems are identified: (1) Lack of operational levels strategies, (2) No systematic approach to manage IT project information across units and sub units, (3) No standard processes for submitting IT projects proposals, (4) No centralized IT project selection process, and (5) Lack of centralized follow
up process on IT Projects across units and subunits. Based on data and by using recommendations from Modularity theory, we suggest a model addressing the identified problems by organizing IT PPM in three modules connected by three gateways. These results may be used to inform further research into IT PPM and to help managers improve IT PPM practices in public organizations.

Keywords: IT Project Portfolio Management (IT PPM), Modularity Theory, Public sector