IT Portfolio Management
Dawn Sweasey
BUS 550
IT Portfolio Management
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The Process
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Framework
Steps to Implement
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The Tool
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Leading software for IT
Tying it all together
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Business Process Modeling
Key Stakeholders
RACI Analysis
Benefits
Demo
Question / Q & A
Why implement a Portfolio Management
Process?
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To enable a company to track the information necessary to
maximize the value
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Most effectively make use of all resources available
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ROI- (both hard and soft benefits)
Managing the costs and risks
Balance IT services and resources with demand for IT reserves and
resources
Drive higher project success rates by tracking and reporting on
progress
Portfolio Management: Aligning Initiatives
To Strategy
Portfolio
Management
Enterprise
Resource
Management
Collaboration
and Project
Management
Alignment
with Business
Objectives
Integrated
Delivery
Framework
Real-time Executive
Decision Support
Business
Strategy
Investment, Resource and
Prioritization Decisions
Programs, Initiatives
Integrated Portfolio of
Managed Projects
Projects
Consistent, Repeatable Project
Delivery
Tools, Technology, Training and Knowledge Transfer
*Content of this slide adapted from Microsoft presentation to Amgen
IT Portfolio Management Framework
Define the Objectives
1.

You can’t boil the ocean
Determine Portfolio
Structure
Build the list
2.
3.
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6.
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Evaluate technical condition,
business alignment, and risk
Track to your Targets
4.
Continually Re-Assess and
Determine Trade-Offs
Communicate the
Portfolio
5.
Capital & Expense budgets /
Scope / Schedule / Timeline
Balanced Scorecard / Project
Dashboard / KPIs

Messaging should be tailored
to the audience
Collaboration tools
Governance
7.
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RACI
Evaluate Execution
8.
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Compare success to
objectives set in stage 1
Implementing Portfolio Management
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Define the business process keeping in mind industry best
practice
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Stakeholder buy-in is key
Process before tool or tool before process?
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Implement a tool that supports the process
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No one correct answer
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
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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:
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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.html
http://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
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R
Responsible: “The Doer” The one who actually complete the task. The “doer” Is
responsible for action/implementation. Responsibility can be shared.
A
Accountable:“The Buck Stops Here” The individual who is answerable for the
activity or decision. Only one “A” can be assigned to an action.
C
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.
I
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..
Client
Client Finance
IS LEAD
PM
Portfolio Manager
Functional Area Lead
Client
Governing Board Member
Sample RACI
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
Process Name: Financial
Approval for Projects over
$300K (ILM Process)
Leading Software for IT PFM: Gartner’s
Magic Quadrant
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]
Clarity:
“EPPM”
http://en.wikipedia.org/wiki/Magic_Quadrant
http://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 Adoption
Quickly and efficiently train users
User
END USER
Adoption
*Content of this slide taken from CA proposal / presentation to Amgen
User
Adoption
Benefits of Implementing a Tool to Support
the Process
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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
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https://eppmdev.myclarity.net/niku/
Quiz Time

What is a good mechanism for tracking and monitoring
the portfolio?
a)
b)
c)
d)
e)
Balanced Scorecard
Project Dashboard
Key Performance Indicators
All of the above
None of the above