IT Portfolio Management – An essential tool for today’s economic climate
By Teresa Di Cairano |
While alignment has been the holy grail of Enterprise and Business architecture,
IT Portfolio Management provides a tangible way to make sure business and IT synergy actually occurs.
Balancing among investments for the short, intermediate and long term involves making tough decisions about IT projects, applications and infrastructure. In a challenging economic climate, knowing where to make the trade-offs is imperative. IT Portfolio Management is a systematic way to make these decisive resource allocations.
Elliot Chikofsky (Intervista faculty and consultant with EM&I in Herndon, VA) offers the following quick overview for a systematic approach to IT Portfolio Management. This 4-Step process involves Analysis, Selection, Control and Evaluation.
The analysis stage links portfolio management to the enterprise vision, goals, objectives and priorities and, develops quantifiable outcome-based performance measures. This is a crucial stage that links IT opportunities to enterprise strategy
The selection part of the process identifies and selects the best mix of IT investments to strengthen and achieve capability goals and for the enterprise.
This is where trade-offs are made and IT investment strategies and funding level determine ultimate resource allocation.
Staying on track also requires ongoing control and review of performance measures. However, because the enterprise doesn’t live in a vacuum, this phase also identifies any modifications or termination of individual investments.
Given that the ultimate goal is return on investment, this crucial stage measures the actual contributions to organizational outcomes and serves to guide adjustments in the portfolio mix.
The fact is that the enterprise’s IT Portfolio exists whether or not we choose to manage it.
A systematic IT Portfolio Management approach provides a common framework for program assessment, resource trade-offs, budget justification and visibility of priorities.
As such, it is essential for both governance and the ability to realistically move the enterprise into the future.
Learn more about this our upcoming at Intervista’s courses at www.intervista-institute.com/itpm.php.
Teresa Di Cairano
Director, Intervista Institute
email comments to: email@example.com
1. 4-Step process from EM & I’s Elliot Chikofsky – Intervista courseware 2010
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IT Portfolio Management
Washington, DC - Sept. 21-23, 2016
1. Portfolio Management
2. IT Value
4. Portfolio Processes
6. Architecture in a Portfolio Context
7. Decision Methods
8. Information, Transparency, Analysis
9. Governance and Leadership
10. Recognizing the Baseline
11. Legacy Strategies in the Portfolio
12. Justify Projects and Programs
13. Control and Evaluation
15. Achieving balance
Elliot Chikofsky is a member of the Intervista faculty and is EM&I Fellow with Engineering Management & Integration (EM&I).
He advises on IT investment and portfolio management, enterprise architecture, and systems management for both corporate and government clients. He is also Vice Chair of IEEE's Technical Council on Software Engineering, as well as Chair of the Reengineering Forum industry association.
Learn more about our faculty.
NEW - Executive briefing video
A 20 minute DVD production from Intervista Institute to aid you in orienting your project team and executives on the advantages of the Portfolio Management approach.
Download video excerpts