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
Alignment with Business Objectives
Business Strategy
Investment, Resource and Prioritization Decisions
Enterprise Resource 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: 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

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
Process Name: Financial Approval for Projects over $300K (ILM Process)
Client
Client Finance
IS LEAD PM
Portfolio Manager
Functional Area Lead
Governing Board Member
Update EPPM with the ILM Cycle for Submission C I R A
Estimate the cost of the project
Estimate and manage risks associated with the project
R,A
Develop the PRA and Business Case for a Project
Submit through required ILM Meetings

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”

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 Adoption Quickly and efficiently train users
*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

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