IT Portfolio Management

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					IT Portfolio Management

                Dawn Sweasey
                    BUS 550
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
Why implement a Portfolio Management
    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
    Drive higher project success rates by tracking and reporting on
 Portfolio Management: Aligning Initiatives
 To Strategy

Portfolio                                                                         Real-time Executive
                      Alignment                                                     Decision Support
Management            with Business           Business
                      Objectives              Strategy

                                                                             Investment, Resource and
Enterprise            Integrated
                                                                               Prioritization Decisions
                                      Programs, Initiatives
Resource              Delivery
                                                                                Integrated Portfolio of
                                                                                     Managed Projects

Collaboration                                                           Consistent, Repeatable Project
and Project                                   Projects

                        Tools, Technology, Training and Knowledge Transfer

 *Content of this slide adapted from Microsoft presentation to Amgen
IT Portfolio Management Framework
1.       Define the Objectives            5.       Continually Re-Assess and
         You can’t boil the ocean                 Determine Trade-Offs
2.       Determine Portfolio              6.       Communicate the
         Structure                                 Portfolio
3.       Build the list                            Messaging should be tailored
                                                    to the audience
         Evaluate technical condition,
          business alignment, and risk             Collaboration tools
4.       Track to your Targets            7.       Governance
         Capital & Expense budgets /               RACI
          Scope / Schedule / Timeline     8.       Evaluate Execution
         Balanced Scorecard / Project              Compare success to
          Dashboard / KPIs                           objectives set in stage 1
Implementing Portfolio Management
   Define the business process keeping in mind industry best
       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
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:
     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
     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
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

             Responsible: “The Doer” The one who actually complete the task. The “doer” Is
R            responsible for action/implementation. Responsibility can be shared.

             Accountable:“The Buck Stops Here” The individual who is answerable for the
A            activity or decision. Only one “A” can be assigned to an action.

             Consult:“In the Loop” Typically subject matter experts, to be consulted prior to a
C            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
    I        or action is taken. They may be required to take action as a result of the outcome. It is
             a one-way communication..
Sample RACI

                                                                                                                      Functional Area Lead

                                                                                                                                                      Governing Board Member
                                                                                                  Portfolio Manager
Process Name: Financial

                                                                 Client Finance
Approval for Projects over

                                                                                  IS LEAD
$300K (ILM Process)


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
   Leading Software for IT PFM: Gartner’s
   Magic Quadrant

The Gartner Magic
Quadrant (MQ) is a                                                                   Clarity:
proprietary research tool
developed by Gartner                                                                 “EPPM”
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

 What should the selected Tool Provide?

 Identify link to goals and
 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

    *Content of this slide taken from CA proposal / presentation to Amgen
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
    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
Quiz Time
   What is a good mechanism for tracking and monitoring
    the portfolio?
    a)   Balanced Scorecard
    b)   Project Dashboard
    c)   Key Performance Indicators
    d)   All of the above
    e)   None of the above

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