1. Portfolio Management Initiative
III. Operation, Maintenance and Replacement (Applications Portfolio Management)
I. Strategic Business and IT Planning and Budgeting
(Investment Portfolio Management)
Life Cycle of IT Investments
II. Project Implementation (Project Portfolio Management)
October 25, 2005

2. Themes in Recent Legislation for Better Management of IT
Improve the planning for and budgeting of IT investments.
Prepare better researched and more thoroughly developed project plans.
Provide stronger project management and more appropriate oversight.
Improve the inventorying and analysis of major IT assets.

3. North Carolina’s Portfolio Management Initiative
With legacy analysis and other efforts, North Carolina is ahead of other states in the implementation of portfolio management
Late 2004 – Purchased UMT software tool from competitive bidding process.
January 2005 – Began software tool implementation project.
August 2005 – Began using tool for project management
2006 – Plan to have tool fully operating in management of projects and applications and in IT budgeting

4. Portfolio Management in State Government
Approving and monitoring IT projects (project portfolio management) – Streamline and improve the effectiveness of department and statewide approval and periodic (monthly) status reporting.
Analyzing legacy business software (applications portfolio management) – Maintain a statewide database of current business systems and provide analytical capabilities for managing these, including the identification of those at-risk and the forecasting of long-term cost liabilities for replacements and renovations.
Identifying, analyzing, and prioritizing potential IT investments (investment portfolio management) – assist departments in evaluating alternative IT investment needs and opportunities and preparing funding requests.

5. Project Portfolio Management
Improve the management of IT projects:
Clarify roles and responsibilities.
Provide for well understood and comparable oversight.
Ensure projects are:
Planned well and researched thoroughly prior to starting – business case.
Managed and monitored proficiently to achieve budget, schedule, scope, and quality expectations - dashboard.
Completed successfully so that business goals and objectives are realized - post-implementation assessment/closeout review.

6. Applications Portfolio Management
Objective is to develop and maintain a comprehensive database of major state software applications to assist in managing them:
Identify present technical and business status.
Determine best approaches and ascertaining the priorities and timeframes for remediation/renovation, retirement, or replacement.
Estimate associated costs – future liabilities.

7. Investment Portfolio Management
Since late 1990s, becoming popular in public and private sectors to help align IT investments with organizational missions and business priorities.
Recognizes that the management of IT is a joint business and IT responsibility.
Helps evaluate and rank potential investments using a variety of criteria, including agreement with business strategies and goals (governmental priorities), costs, financial and societal benefits/value, project and business risks and architectural fit.

8. Training Hands-on training sessions:
Basic – half day, hands-on course on the project portfolio module and its functionality and their assigned roles within their agency.
Intermediate – full day, hands-on course on the project portfolio module and its functionality, their roles, status reporting, approval flows, and business case.
Advanced – additional 2 day hands-on course on using other functions of the Project Portfolio module.
135 attended
Theory training sessions:
Project Portfolio Management Conceptual Class – three, half-day sessions on the concept behind Portfolio Management and business case development.
Application Portfolio Management – Two, 2-hour sessions on the specifics of Application Portfolio Management were open to all agencies
295 attended

9. Portfolio Management Implementation
Project approval and monitoring (Completed)
Streamlined and simplified old processes
No change in underlying concepts and principles, but better way of managing and communicating.
Immediate benefit to projects, departments, and oversight organizations.
Legacy applications (Next phase)
Transfer of study data to tool and update of information
Validate study findings, especially for immediate action applications.
Begin cost estimating efforts for submitting long-term liabilities to General Assembly.

10. Portfolio Management Tool Implementation
Planning and budgeting (Winter )
Involves more sophisticated techniques and analysis activities (portfolio optimization and staffing resource scheduling).
Less pressing timetable, as follows budget cycle.
Some departments have volunteered to test these capabilities further before statewide rollout.

11. Portfolio Management
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