Project Interdependency Management in IT/IS Project Portfolios: From a Systems Perspective

Abstract

Capitalizing on inter-project interdependencies is widely accepted as being crucial for Information Technology/Information Systems (IT/IS) project portfolio success. However, handling these interdependencies becomes a source of increased management complexity as project portfolios get larger, increasingly diverse, and are much influenced by their environments. This then can lead to less predictable situations regarding the portfolio performance as a whole. Though there are many methods available for optimally selecting projects and cross-checking possible synergies and interdependencies among the projects in the portfolio, it remains unclear how one can gain control over the complexity of managing these interdependencies. In this study, we address the problem of handling many project interdependencies that continuously change and develop within a large IT/IS project portfolio. We found that the existing methods for selecting and managing the projects within a portfolio do not focus enough on how interdependencies can disrupt the balance of the whole project portfolio system. To tackle the problem, we propose a systemic approach using the Viable System Model to enhance the way that these interdependencies can be effectively managed in view of the overall portfolio system. We suggest that the Viable System Model, as a supplement to traditional IT/IS project portfolio management approaches, is recursively applied to diagnose and manage the complexity of project interdependencies within IT/IS project portfolios.