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 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

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

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

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

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 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

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

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

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

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

End User Adoption Quickly and efficiently train users *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 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

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

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