IT Project Management Strategies for Delivering Business Value

Managing projects is inherently challenging, but when it comes to IT project management, the complexity and stakes rise significantly, often involving intricate, high-risk initiatives with uncertain outcomes. 

According to the Standish Group, an alarming 19% of software projects are canceled, often resulting in substantial losses, with investments ultimately written off as sunk costs. Far from bucking the trend, the AI revolution is following the same pattern, with studies showing that 90% of custom-built AI application projects end in failure. 

Fortunately, there are practical, actionable strategies available that can empower IT project managers to drive strategic alignment of IT projects and deliver tangible value to the business.

In addition, technological advancements have significantly improved the way organizations manage these projects. Project portfolio management tools and roadmapping applications can ease the workload, automating many routine tasks and providing clear visualizations to help IT project leaders ensure their investments deliver value.

Aligning your IT project strategy with business goals

A great starting point is to clarify what "business value" means in the context of IT project management. Business value refers to any outcomes that contribute positively to achieving the organization’s strategic objectives, such as ROI, customer satisfaction, business growth, and gaining a competitive edge. Before launching any project, IT project managers must ensure they have a comprehensive understanding of the company’s strategic goals.

Business-IT integration challenges and solutions

Most IT and business executives understand the importance of closely aligning their efforts,  structuring their strategies, capabilities, resources, and management systems in order to support the broader goals and purpose of the enterprise.

However, many executives tend to focus too heavily on how their specific area aligns with the overall goals, without considering other critical parts of the organization. What truly matters is how to integrate every function—especially IT and its business counterparts—to achieve common objectives.

Technology can help. Take it from the IT department of airline company Air Tahiti Nui, who, since implementing a robust enterprise-wide IT portfolio management tool, has shared a monthly dashboard of activities and projects with business leaders, boosting alignment and aligning IT projects with business strategy.

Prioritization techniques

Prioritizing projects effectively is essential for aligning IT project management with business strategies. When considering how projects align with broader business goals, IT project managers should apply various techniques and KPIs that balance value, complexity, business impact, and the resources required. These techniques help decision-makers determine which initiatives will most directly contribute to the organization’s long-term objectives while managing risk and ensuring a sustainable workload.

Common priority evaluation methods and tool include:

• A risk vs. reward analysis helping assess the potential risks of each project against the expected benefits; 
• Financial metrics such as ROI and NPV calculations that can be used to compare the anticipated benefits (such as increased sales or cost savings) with the estimated costs (in terms of money, time, and resources) of a project; 
• Resource mapping techniques, designed to assist in understanding the skills, tools, and budget that each project demands. 

Combined, these techniques help IT managers objectively prioritize the projects that offer the best return—a critical first step. But to truly maximize impact, these processes should be integrated into a broader strategic portfolio management solution with IT-oriented capabilities, as delivering real value also requires optimizing execution through refined processes and methodology frameworks.

Leveraging the right methodologies for your IT strategy

Much has been said and written about the benefits of Agile methodologies for project execution (quicker time-to-market, cost savings, improved customer satisfaction through regular feedback loops, and more). Unlike traditional project management approaches like Waterfall, Agile emphasizes iterative development, allowing teams to adapt quickly to changing requirements and deliver incremental value at each stage. This approach is particularly beneficial in software development, where technology and user needs evolve rapidly. 

When it comes to Agile for IT project and portfolio management, the options are anything but limited. The “Agile” bucket encompasses an array of frameworks, including Scrum, Kanban, and Lean, that can be used individually (or advantageously combined) depending on the project scope, team, and business needs.

That said, IT PMOs and CIOs shouldn’t limit themselves to Agile processes. Hybrid methods blending Waterfall and Agile methodologies have actually gained traction with business-oriented IT leaders. For instance, a company might use Waterfall for planning the larger phases of a project, while adopting Agile to iteratively develop the product within each stage. 

To help you develop your IT strategy, a robust project portfolio management (PPM) tool can effectively manage Agile, Waterfall, and hybrid projects all in one place. For example, a large utility firm has used Planisware Enterprise to effectively combine Agile, SAFe, and Waterfall methodologies. 

Additionally, a good PPM tool should seamlessly integrate with third-party applications, such as Jira and MS Teams, providing visibility into work outside the PPM solution. 

Measuring success and ensuring continuous improvement

Striving to deliver business value isn’t the same as actually achieving it—even if you’re giving 200%. To borrow from legal terminology, IT project strategy leaders should view themselves as bound by an obligation of results, not just an obligation of means, to their organizations. That’s why they must measure the value created by the projects they oversee.

It starts with defining clear, specific goals for each project, ensuring they are measurable. These could include metrics like on-time delivery, budget adherence, quality standards, and customer satisfaction. Using SMART goals (Specific, Measurable, Achievable, Relevant, and Time-bound) ensures alignment with business objectives and provides a baseline for evaluating success.

Using KPIs also helps track project performance. Some common KPIs for IT projects include time to market and user satisfaction, which can be measured based on feedback from end-users or stakeholders to assess how well the project meets their needs. Project portfolio management tools offer capabilities to establish various KPIs and track progress against them.

Running project retrospectives or reviews will help you analyze successes and identify areas for improvement in future projects. Evaluate what worked well, what didn’t, and what can be done differently next time. The insights gained can then be used to refine project management practices and improve future project performance. It is a good idea to document these insights, for example through a “lessons learned” knowledge base. 

Here again, professional tools include functionality to consolidate the management of project documentation and knowledge. 

Optimizing IT project value with best-in-class tools

Delivering true business value through IT project management requires more than technical know-how. To keep teams aligned, agile, and focused on meaningful outcomes, a combination of strong collaboration practices, well-established methodologies, and a change-embracing mindset is essential. However, to bring it all together and scale success across projects, organizations must also leverage powerful tools. 

Planisware’s SPM and PPM solutions bridge the gap between IT project strategy and business management, helping CIOs and IT leaders gain real-time visibility into the strategic value of their projects and address key challenges like user expectations, cybersecurity threats, and rapid technological evolution.

Schedule a live demo today to see how a solution like Planisware can transform your IT initiatives into drivers of measurable business impact.