Portfolio Management Initiative
III. Operation, I. Strategic Business
Maintenance and and IT Planning and
Life Cycle of (Investment Portfolio
II. Project Implementation
(Project Portfolio Management)
October 25, 2005
Themes in Recent Legislation for
Better Management of IT
1. Improve the planning for and budgeting of
2. Prepare better researched and more
thoroughly developed project plans.
3. Provide stronger project management and
more appropriate oversight.
4. Improve the inventorying and analysis of
major IT assets.
North Carolina’s Portfolio
• With legacy analysis and other efforts, North Carolina
is ahead of other states in the implementation of
• Late 2004 – Purchased UMT software tool from
competitive bidding process.
• January 2005 – Began software tool implementation
• August 2005 – Began using tool for project
• 2006 – Plan to have tool fully operating in management
of projects and applications and in IT budgeting
Portfolio Management in State
• 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
• Identifying, analyzing, and prioritizing potential IT
investments (investment portfolio management) –
assist departments in evaluating alternative IT investment needs
and opportunities and preparing funding requests.
Project Portfolio Management
Improve the management of IT projects:
• Clarify roles and responsibilities.
• Provide for well understood and comparable
• 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. 5
Objective is to develop and maintain a comprehensive
database of major state software applications to assist in
• Identify present technical and business status.
• Determine best approaches and ascertaining the priorities and
timeframes for remediation/renovation, retirement, or
• Estimate associated costs – future liabilities.
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.
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
• 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
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
Legacy applications (Next phase)
– Transfer of study data to tool and update of information
– Validate study findings, especially for immediate action
– Begin cost estimating efforts for submitting long-term
liabilities to General Assembly.
Portfolio Management Tool
Planning and budgeting (Winter 2005-2006)
– Involves more sophisticated techniques and analysis
activities (portfolio optimization and staffing resource
– Less pressing timetable, as follows budget cycle.
– Some departments have volunteered to test these
capabilities further before statewide rollout.
• For more information: