Manage Uncertain Project Demand with Right-Sized Resource Agility
When it comes to projects, be prepared for the unexpected.
- Project variability creates difficulty for the IT department when the organization expects quick response upon project and capital approval, but IT does not have the resources to act quickly.
- Although agility should be adequate to combat project demand variability, an unnecessary investment in agility can consume finances needlessly.
- A variable project funding component introduces red tape that is not encountered in fixed funding models. For example, developing project pitch documents is a time-consuming process that often requires alignment with sponsors to gain approval.
Our Advice
Critical Insight
- IT departments facing uncertainty in terms of the amount and nature of funding and projects need to be flexible in terms of resourcing (e.g. equipment capacity, staffing).
- Flexibility comes at a price, so organizations need to be careful not to overinvest in contingencies they don’t need.
- It’s typically IT that is taken by surprise, not the business. Reduce uncertainty by improving IT’s market intelligence.
Impact and Result
An appropriate IT budget has sufficient contingency to meet all demand changes throughout the year without investing in agility that isn’t needed. Leaders operating either wholly or partially under a variable model must be able to:
- Assess whether there is a problem in terms of agility and funding variability alignment.
- Reduce the backlog of approved and funded projects through:
- Contingency planning.
- Improved communication with the business.
- Compensate for deficiencies when process and policy change is not possible with expectations management.
- Advocate for process and policy change to support best practices (e.g. alignment) when necessary.
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