As IT projects get bigger in size and scope and average budgets surpassing the $1 million mark companies are adopting more elements of project management.
Organizations are using increased reporting processes particularly when it comes to governance and measuring benefits across the enterprise to turn around high IT project failure rates, according to a study which looked at 100 Australian companies in financial services, telecommunications, utilities, education, government, transport, manufacturing and the IT services markets.
Colin Stewart, managing director of EQuest Consulting, which undertook the study, said the survey found that 38 percent of organizations have created enterprise project management offices in the past year, signalling attempts by local companies to streamline new initiatives.
"The establishment of enterprise project management offices in the upper echelon of large corporations sends a strong signal that chief executives and senior executives are now viewing project management as a strategic tool," Stewart said.
But, he added, organizations still have a long way to go.
"The market has moved beyond the cost reduction phase, and [businesses] are now looking at investing in projects that deliver strategic and commercial value," Stewart said.
"However, corporations are still struggling to initiate projects that are clearly defined, well-managed and optimized," he said, recommending organizations concentrate on enterprise-wide initiatives.
Previously, it was all about keeping the lights on, EQuest director Tony Mehta said, but that has changed as senior executives recognize the strategic importance of IT.
"Executives should try and understand the capability of their organization to accept change; keep [projects] simple and make sure the methodology fits the process," he said.