Abstract

Environmental turbulence puts significant pressure on today’s IT organizations, forcing them to pro-actively respond to changing strategic trajectories and thus to conduct a multiplicity of projects in order to capitalize on emerging opportunities. Although many organizations employ institutionalized IT project portfolio management (IT PPM), they often fail to achieve the desired throughput, struggle with projects that run late, and miss short-term alignment to strategic changes. Further, traditional IT PPM establishes a long-term horizon, which contradicts the organizational necessity to react at short notice. This calls for the refinement of traditional IT PPM towards an aligned yet more flexible dimensioning that is able to adapt to its environment’s dynamism. We apply a design approach guided by activity theory (AT) to investigate a revelatory case, to explore an important phenomenon from a novel perspective. We then conduct a focus group, and perform an applicability check to evaluate and refine our suggestions. Finally, we propose three design goals and 12 design principles to address the issues that so often arise. Our research contributes to the nascent body of knowledge by providing a new analytical view on IT PPM and by suggesting recommendations for a significant problem in practice.

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