Companies failing to achieve optimal ROI from portfolio management solutions, new research reveals
Tempo Software, a leading provider of portfolio management solutions for product development organizations, today announced the results of a commissioned study on portfolio management strategies. The study found that most companies fail to realize the potential ROI of their portfolio management approach.
The commissioned study conducted by Forrester Consulting on behalf of Tempo Software confirms an urgent need for companies to advance portfolio management processes and leverage Strategic Portfolio Management (SPM) solutions to improve IT portfolio analysis, increase strategy-to-execution alignment, and enhance the ability to meet customers’ needs.
Key findings of the study “Maximize Your Portfolio Management Processes” highlighted challenges that decrease the ROI of portfolio management solutions, including:
- Current portfolio management processes focus on project management over strategy: Respondents’ organizations use their portfolio management solutions to support tactical project management capabilities rather than strategic management capabilities.
- Executives and directors are misaligned when it comes to their portfolio management solutions: Compared to directors, C-levels are more likely to believe their teams are using their solutions’ strategic management capabilities leading to misalignment and silos across the business.
- A lack of integration across the business fuels business challenges: Less than 30% of respondents’ organizations have an integrated portfolio management process across the business, causing poor communication and collaboration and misvaluing current investments.
- 72% of respondents said their organization plans to increase investment in portfolio management solutions in the next 24 months. These investments will focus on integrating strategic planning capabilities with portfolio management.
“We believe this study from Forrester Consulting validates our approach to strategic portfolio management,” said Mark Lorion, CEO of Tempo. “Companies are unable to realize the full ROI potential of their portfolio management solutions due to a lack of alignment between business strategy and projects, a lack of communication between teams, and a lack of visibility into work being done. It costs organizations a lot of time and, more to the point, it costs them a lot of money. This is largely a symptom of disconnected systems and poor integration of systems and processes across the business.”
The study concludes that “portfolio management tools can identify investments that aren’t delivering desired value, allowing organizations to pivot to higher-value initiatives while tracking and monitoring costs. Beyond traditional functions of time tracking and budgeting, there is a growing need for the strategic capabilities of portfolio management solutions.”
Tempo’s platform for portfolio management makes it even easier for teams to get started, and see the benefits. With all its tools supercharging Jira and integrating with many more, Tempo minimizes user workflow disruption and allows leaders and their teams to better communicate priorities and stay aligned. With the upcoming launch of its new product, Capacity Insights, organizations can utilize AI and machine learning to record and assess effort spent on initiatives and associated investments with minimal impact on a product development team’s existing processes.
The study surveyed 528 global decision-makers in charge of their organization’s portfolio management solutions to evaluate current portfolio management processes and solutions. Click here to download a free copy of the full report.
About Tempo Software
Tempo Software empowers companies to focus on what matters most – building great products. Tempo’s flexible and modular platform helps teams plan, execute and optimize products in alignment with the customer’s strategic business priorities. Tempo’s platform includes solutions for Strategic Portfolio Management (SPM), Project and Portfolio Management (PPM), and IT Service Management (ITSM) needs. Founded in 2009, Tempo has the support of more than 300 strategic integration partners, and serves 30,000+ customers across a wide range of industries, including one in three Fortune 500 companies.
To learn more about Tempo Software, visit www.tempo.io.
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