On a Snowy Day

It's cold and snowy here in Kansas today. It seems like Spring will never get here. We had a couple nice days last weekend, but that was it.

I had a conversation yesterday with the CIO of a local Health System (bunch of hospitals). One of the challenges he sited was that the IT budget has to go against the other capital projects when funding decisions are made. So is it more beds or a new computer application? He also said the IT budget is typically cut back after plans are made, so projects originally planned for one year get pushed out to the next year.

In his organizations, the IT projects that get funding are being driven by business needs and the business needs are tied to the organization's strategy. It seems like such a basic concept, but how many organizations are really doing this? I know I've seen plenty of pet projects being done because some executive wants it, even though it isn't tied to the strategic goals. This is where a good portfolio management process is needed, to make sure the resources are only being allocated to the projects that really matter.