IT portfolio decision-making in local governments: Rationality, politics, intuition and coincidences

• We investigate decision-making processes in IT PPM practices of local governments.
• We discuss how these practices match the normative IT PPM advice.
• Politics, intuition and coincidence play a crucial role in IT PPM decision-making.
• Technical rationality (as proposed by the IT PPM literature) plays a minor role.
• Local governments should improve, not replace, existing decision-making styles.

IT project portfolio management (IT PPM) has evolved into a significant area of research interest, but we know little about IT PPM practices in public sector organizations. Therefore this article investigates decision-making processes in the IT PPM practices of local governments, and discusses how these practices match the normative advice proposed by the IT PPM literature. We rely on decision-making theories together with case-studies of four Danish local governments. We find that politics, intuition and coincidence play a crucial role in IT PPM decision-making, while technical rationality (as proposed by the IT PPM literature) plays a minor role. Our account also reveals how the decision-making practices create IT portfolio problems and in some aspects is considered to have a negative impact on the outcome of e-government investments. Our analysis and previous research into decision-making allows us to argue that implementing textbook-IT PPM is difficult because it relies on decision-making ideals that are incompatible with organizational contexts and individual behavior in these organizations. Instead of radically changing decision-making styles, the organizations might be better off improving IT PPM practice within the boundaries of their existing decision-making styles, and the IT PPM literature might improve support for practitioners by incorporating other decision-making styles besides technical rationality.