Your organization’s performance may not be the most important thing in life. But to most of you working in organizations, it is up there. So don’t let investment and project problems keep you and your organization from satisfying performance. Learn more today about a chronic condition impacting most organizations called Investile Dysfunction or ID.
 What is Investile Dysfunction (ID)?
ID occurs when a company has problems allocating its resources in a way that maximizes revenues, profits and performance. More specifically, it occurs when insufficient money flows to the best investments and projects in IT, marketing, R&D, innovation, operations, sales, etc. This lack of money flow impairs the organization’s ability to deliver the best performance. ID doesn't afflict all organizations in the same way. Some organizations make suboptimal investment or project decisions across the entire organization. Others have particular business units or functional areas afflicted with ID which serve to hurt their individual performance and total organization performance as well. ID is a condition caused mainly by behavioral and process issues. Certain systems limitations may also cause or exacerbate ID. In most cases, ID will not improve without intervention and treatment. Treatment works If you think your organization might have ID, there’s something you can do. Ask an expert about treatment. Most organizations with ID can significantly improve their resource allocation and resulting investment and project selection. And better investment selection and resource allocation means better, more fulfilling performance. [Top]
What causes ID? Investile Dysfunction can be caused by any of the following organizational health problems or issues. Organizations suffering from ID often exhibit several of these symptoms which fall into three main categories. Process - Resource allocation is done once a year at the time of budget creation and not revisited until the following year. Again, this once-a-year resource allocation process inhibits flexibility and fails to recognize the need for dynamism when it comes to investment/project decisions.
- Focus only on optimizing large, multi-year capital expenditures and not on the large portion of operating expenses that are discretionary. A significant portion of marketing, IT, R&D, sales and operations investments are actually discretionary – 25% to 40% as per research by the Corporate Portfolio Management Association.
- Lack of agreement on the definition of what is an investment/project and no consistency in modeling the returns (financial, strategic and risk) of such investments & projects.
- Inconsistent business case formats and processes making comparability of projects and investments difficult or impossible.
Behavior - Lack of understanding as to how resource allocation drives organizational strategy and financial performance. Companies suffering from ID often fail to realize that where they allocate their resources is what determines strategy.
- Lack of understanding about the importance of and benefits of organic growth in driving revenue, profit and shareholder returns. Instead, these organizations focus on more significant transformational changes often through M&A which are of dubious value and much riskier.
- A belief that installation of a software, simple framework or scorecard is what is required to make better investment decisions. There is no silver bullet or shortcut to better investment selection and performance.
- Incentive structures which don’t balance short-term and long-term results or which are driven by the success of a single business or functional group (silos) and not the total organization performance.
- Highly politicized and decibel-driven investment decisioning. This instead of data- and business case-driven investment elections.
Systems - No tracking of investment results to drive accountability. This results in suboptimal projects being funded and not being stopped due to lack of results to hold people accountable.
Any one or a combination of these health problems may prevent your organization from working at its optimal level. No matter what the cause, treatment for ID is 100% safe and proven to be effective. [Top]
How Common is ID? ID is more common than you might think. The Corporate Portfolio Management Association’s* research reveals the extent of the ID problem. - More than 85% of organizations admit that their resource allocation capabilities could be improved significantly.
- More than 55% of organizations feel their project/investment forecasts of benefits, costs and time of delivery are highly inaccurate or mostly inaccurate
- More than 86% of organizations contend that their investment selection is relationship-driven and politicized versus data-driven
- More than 75% of organizations admit that their ability to track investment results is subpar or adhoc making accountability and learning from the past very difficult
Their research covers organizations from all sectors, geographies and sizes. The fact is that organizations of all types can and do suffer from ID. 
*By clicking on the link, you will be leaving the Investile Dysfunction site. Links to other sites are provided as a convenience to the viewer. We accept no responsibility for the content of linked sites. Statistics are used with permission of the CPMA. [Top]
How do I know if my organization has ID? If you have had any problems discussed in the What Causes ID section or just know that your organization could do a better job allocating resources, your organization likely has ID. But don’t be dismayed or worry just yet. ID occurs in most organizations. To find out the extent of your organization’s ID, you may want to have your organization go through the Portfolio Management/Resource Allocation Diagnostic. Following the diagnostic, you can discuss the results with an expert to understand the severity of your ID. The right expert will be able to recommend a treatment plan that is right for you and your organization. [Top]
What can I do about ID? Investile Dysfunction can be safely and effectively treated. ID treatment disciplines like Portfolio Management are the most common form of ID treatment. So talk to an expert. If you have ID, the fact is that you can improve your organization’s performance. And this can lead to better results which ultimately create a more satisfying relationship with your stakeholders including employees, shareholders, customers and suppliers. [Top] | 
