IT Portfolio Management

Dawn Sweasey

BUS 550

IT Portfolio Management The Process

Framework Steps to Implement

Business Process Modeling Key Stakeholders RACI Analysis

The Tool Leading software for IT

Tying it all together Benefits

Demo Question / Q & A

Why implement a Portfolio Management Process?

To enable a company to track the information necessary to maximize the value ROI- (both hard and soft benefits) Managing the costs and risks

Most effectively make use of all resources available Balance IT services and resources with demand for IT

reserves and resources Drive higher project success rates by tracking and

reporting on progress

Tools, Technology, Training and Knowledge Transfer

Alignment with Business Objectives

Integrated Delivery Framework

Real-time Executive

Decision Support

Collaboration and Project Management

Portfolio Management

Programs, Initiatives

Business Strategy

Investment, Resource and Prioritization

Decisions

Integrated Portfolio of Managed Projects

Consistent, Repeatable Project Delivery

EnterpriseResource Management

Projects

Portfolio Management: Aligning Initiatives To Strategy

*Content of this slide adapted from Microsoft presentation to Amgen

IT Portfolio Management Framework1. Define the Objectives

You can’t boil the ocean

2. Determine Portfolio Structure

3. Build the list Evaluate technical

condition, business alignment, and risk

4. Track to your Targets Capital & Expense

budgets / Scope / Schedule / Timeline

Balanced Scorecard / Project Dashboard / KPIs

5. Continually Re-Assess and Determine Trade-Offs

6. Communicate the Portfolio

Messaging should be tailored to the audience

Collaboration tools

7. Governance RACI

8. Evaluate Execution Compare success to

objectives set in stage 1

Implementing Portfolio Management Define the business process keeping in mind

industry best practice Stakeholder buy-in is key Process before tool or tool before process?

No one correct answer

Implement a tool that supports the process Allow for Data analysis Can be a phased approach in alignment with

maturity level of the PMO Establish Ongoing Governance Model Make it Operational- Consistent and repeatable

User Adoption and Training

Define the Process: Business Process Mapping Notation BPMN is an industry standard for mapping process flow.

Stakeholders: An individual or group with direct or indirect interest that can affect or be affected by the actions of the business as a whole.

It is critical when implementing a Portfolio Management System (people, process, tool) that you have a clear definition of who the stakeholders are:

Example: Client- Group or individual requesting the project Project Manager- Responsible for r planning, execution, and

closing the Project Program Manager- Responsible for managing the over-

arching program Portfolio Manager- is a person who makes investment

decisions using money other people have placed under his or her control.

Financial Manager- oversees the monetary concerns relating to the functional area

Governance Committee- ensures the constant health and effectiveness of the portfolio of projects

http://www.businessdictionary.com/definition/stakeholder.htmlhttp://en.wikipedia.org/wiki/Portfolio_manager

Define Roles and Responsibilities A RACI Diagram is a good way to document the roles

and responsibilities of key stakeholders A separate Diagram is usually created for each major

process

R

A

C

I

Responsible: “The Doer” The one who actually complete the task. The “doer” Is responsible for action/implementation. Responsibility can be shared. Accountable:“The Buck Stops Here” The individual who is answerable for the activity or decision. Only one “A” can be assigned to an action.

Consult:“In the Loop” Typically subject matter experts, to be consulted prior to a final decision or action. Input from the designated position is required.

Inform:“Keep in the Picture” This is one who needs to be informed after a decision or action is taken. They may be required to take action as a result of the outcome. It is a one-way communication..

Sample RACI

Process Name: Financial Approval for Projects over $300K (ILM Process)

Client

Client Finance

IS LEAD

PM

Portfolio Manager

Functional Area Lead

Client

Governing Board Member

Update EPPM with the ILM Cycle for Submission C C I R A I I I

Estimate the cost of the project I C I R A C I

Estimate and manage risks associated with the project I C C R,A I I I

Develop the PRA and Business Case for a Project C C I R,A C C C

Submit through required ILM Meetings C R I R,A I C C

Leading Software for IT PFM: Gartner’s Magic Quadrant

Clarity: “EPPM”

The Gartner Magic Quadrant (MQ) is a proprietary research tool developed by Gartner Inc., The Magic Quadrant aims to provide a qualitative analysis into a market and its direction, maturity and participants, thus possibly enabling a company to be a stronger competitor for that market.[1]

http://en.wikipedia.org/wiki/Magic_Quadranthttp://www.gartner.com/it/content/1383500/1383514/july_15_it_project_mq_dstang.pdf

What should the selected Tool Provide?

Identify link to goals and strategy

Access to resource availability and demand

What-if and scenario analysis

Identify and link to strategic resources and applications

*Content of this slide taken from CA proposal / presentation to Amgen

End User AdoptionQuickly and efficiently train users

END USERUser Adoption

UserAdoption

*Content of this slide taken from CA proposal / presentation to Amgen

Benefits of Implementing a Tool to Support the Process

Improved Resource Allocation; the right people on the right projects

Improved alignment between work and management decisions with goals

Enhance scrutiny on above the line initiatives Increased visibility across the enterprise Reduce Ambiguity; ensuring that the authorized work is

valuable, aligned and balanced. Ability to balance the portfolio between strategic

projects, small efforts and KTLO Sharper focus enabling cost benefit analysis Increased Collaboration and Communication between

organizations FTE efficiencies across multiple organizations

Demo of the Tool https://eppmdev.myclarity.net/niku/

Quiz Time What is a good mechanism for tracking and

monitoring the portfolio?a) Balanced Scorecardb) Project Dashboardc) Key Performance Indicatorsd) All of the abovee) None of the above