As the race to transform, compete and succeed in today’s dynamic digital economy continues, many Canadian organizations now face a troubling reality. Despite significant investment and a willingness to embrace the power of digital technologies, CGI’s 2024 research reveals that only 34% of executives surveyed believe their digital strategies are meeting their strategic goals.
As many companies are unfortunately realizing, the disconnect between business objectives and IT execution is stifling pivotal transformation initiatives that promise to revolutionize business models, streamline operations, maximize ROI and enhance competitiveness.
What’s the key to unlocking the full value of digital transformation? Success demands breaking down outdated silos – integrating your business goals and IT operations seamlessly across the entire value chain.
Simply put, effective portfolio management has become indispensable in today's challenging environment. And Lean Portfolio Management (LPM) is the game-changer businesses need to accelerate digital transformation and remain competitive as the rapid pace of change accelerates. LPM is gaining prominence as an innovative strategic approach – aligning project-portfolio management with business objectives to forge an agile and responsive culture in today’s increasingly complex environment.
The challenge of turning digital strategies into positive outcomes
We see many organizations developing ambitious digital strategies today but the real challenge typically lies in translating strategies into tangible business outcomes. CGI’s 2024 research shows that 61% of executives whose businesses achieved positive results successfully integrated business and IT operations. Additionally, 55% have achieved high levels of integration, while 35% have adopted agile business models that effectively incorporate new technologies.
At the same time, however, persistent issues continue to undermine a significant number of companies despite dedicated efforts to navigate the transformation journey. These include:
Siloed operations – Agile teams and frameworks are often implemented in isolation, resulting in disjointed business and IT operations. This fragmentation hinders the seamless flow of value and innovation.
Inadequate ROI-driven innovation – While an agile approach promotes rapid innovation, we often see it fall short in delivering ROI-focused results. Current delivery systems may struggle to keep pace with ever-evolving market demands, particularly in today’s consumer-centric digital economy.
People and culture challenges – The human element of digital transformation is critical to success but too frequently overlooked. A lack of alignment and shared vision between business and IT leaders can prove costly – impeding real progress and meaningful business outcomes.
Agility becomes critical amid complexity - How best to address these challenges and drive effective digital transformation in today’s complex and fiercely competitive environment? We believe business leaders should maintain a sharp focus on several critical areas as the digital journey unfolds.
The integration of business and IT operations is paramount. Work to achieve seamless integration that will truly enable smart and efficient execution of your strategic objectives. Fostering greater agility amid innovation is also indispensable. Success on the transformation trail demands a modern culture of rapid innovation – one that can capitalize on the vast power of emerging technologies such as Artificial Intelligence.
Not to be underestimated as well is the importance of embracing change-management practices that center on people and processes within a truly flexible business culture.
Also dedicate the time and resources needed to measure and consistently monitor results along the digital journey. Our advice to clients is to adopt Objective and Key Results (OKRs) – a goal-setting framework that helps the entire organization track progress and results with clarity and precision. An OKR framework consists of two main components: Clear business objectives that you set out to achieve, and key results that are measurable as outcomes.
It all begins with a timely and informed transformation strategy
As noted, we see so many businesses today pursuing transformation with strategies that ultimately fail to deliver desired results. But there is no time to lose on the need to identify and implement powerful digital capabilities that will keep your business competitive and relevant amid rapid change. Where to start? Here is our guidance to businesses as they look to transform for a new era of success:
Combine projects and products: Treating innovation projects and products as distinct entities can limit value realization. Strive instead to align product development with your strategic goals and remain ready to adapt to today’s ever-evolving market demands and conditions.
Transform the Project Management Office (PMO): Traditional PMOs often focus on managing projects within set timelines and budgets. Our advice is to evolve PMOs into Value Management Offices that prioritize delivering business outcomes and aligning initiatives with organizational objectives.
Balance ambitions and capacity: Align ambitious goals with your organization’s capabilities by promoting iterative development and continuous feedback. This approach helps to establish realistic targets while maintaining agility.
Establish agile financials: Implement flexible budgeting and funding mechanisms that position your business to respond swiftly to market changes and opportunities. Agile financial management is crucial to maintaining a responsive approach that consistently optimizes your use of resources.
The future demands Lean Portfolio Management
Among the various strategic approaches in play today, Lean Portfolio Management (LPM) stands out as pivotal to success in achieving business agility and strategic alignment. An extension of Lean methodology, LPM effectively assesses business strategies and allocates appropriate budgets for their execution.
LPM redefines portfolio management by focusing on value, breaking down large initiatives into manageable components while supporting the adoption of digital technologies. It ensures that portfolio management processes are aligned with business goals and outcomes, allowing your organization to manage capacity effectively and adapt to changing market conditions.
Make no mistake – successful digital transformation demands more than just agile practices. Success requires a holistic, cross-functional approach that integrates business and IT operations, fosters innovation, balances ambitions with capacity, and aligns incentives across the entire C-suite. Lean Portfolio Management is the solution.
Your organization can overcome barriers and drive meaningful business outcomes that benefit from unified, informed and proactive leadership. CGI’s digital transformation experts are here to help with timely insights and proven expertise. CGI is a Scaled Agile Global Transformation partner that offers Lean Portfolio Management services: consulting, coaching, learning programs, training materials and skills enablement.
LPM case study: With more than $25 billion in assets and 5,000+ employees, Beneva Insurance’s implementation of LPM has been transformative, aligning portfolio management with Beneva’s strategic goals and significantly enhancing agility. Explore Beneva’s LPM success.
