IT Portfolio Management

1. IT Portfolio Management Dawn Sweasey BUS 550

2. 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

3. 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

4. Portfolio Management: Aligning Initiatives To Strategy Real-time Executive Decision Support Portfolio Management Alignment with Business Objectives Business Strategy Investment, Resource and Prioritization Decisions EnterpriseResource Management Integrated Delivery Framework Programs, Initiatives Integrated Portfolio of Managed Projects Collaboration and Project Management Consistent, Repeatable Project Delivery Projects Tools, Technology, Training and Knowledge Transfer *Content of this slide adapted from Microsoft presentation to Amgen

5. IT Portfolio Management Framework • Define the Objectives • You can’t boil the ocean • Determine Portfolio Structure • Build the list • Evaluate technical condition, business alignment, and risk • Track to your Targets • Capital & Expense budgets / Scope / Schedule / Timeline • Balanced Scorecard / Project Dashboard / KPIs • Continually Re-Assess and Determine Trade-Offs • Communicate the Portfolio • Messaging should be tailored to the audience • Collaboration tools • Governance • RACI • Evaluate Execution • Compare success to objectives set in stage 1

6. 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

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

8. Stakeholders: Anindividual 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.html http://en.wikipedia.org/wiki/Portfolio_manager

9. 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 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. 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.. I

10. Sample RACI

11. 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

12. 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

13. End User AdoptionQuickly and efficiently train users User Adoption User Adoption END USER *Content of this slide taken from CA proposal / presentation to Amgen

14. 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

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

16. Quiz Time • What is a good mechanism for tracking and monitoring the portfolio? • Balanced Scorecard • Project Dashboard • Key Performance Indicators • All of the above • None of the above