How do you rate your IT portfolio management process?

1 What is IT portfolio management?

IT portfolio management is the process of planning, organizing, and controlling the IT assets and resources of an organization, such as applications, infrastructure, projects, and services. It aims to ensure that the IT portfolio supports the business strategy, delivers value, and meets the needs and expectations of stakeholders. IT portfolio management also involves evaluating the risks, costs, benefits, and dependencies of the IT portfolio, and making decisions about its optimization, rationalization, and transformation.

2 Why is IT portfolio management important?

IT portfolio management is important because it helps you align your IT spending with your business objectives, and maximize the return on investment (ROI) of your IT assets. It also helps you improve the quality, performance, and efficiency of your IT services, and reduce the complexity, redundancy, and obsolescence of your IT systems. By managing your IT portfolio effectively, you can enhance your competitive advantage, increase your customer satisfaction, and foster innovation and agility in your organization.

3 How to rate your IT portfolio management process?

In order to rate your IT portfolio management process, you can use a maturity model such as Gartner's, which consists of five levels ranging from initial to service-aligned. Assessing your current level entails considering criteria such as governance, methodology, data, tools, and value. Governance involves defining and communicating roles and responsibilities for IT portfolio management. Methodology implies applying a consistent and comprehensive approach to IT portfolio management. Data requires collecting, validating, and maintaining accurate information about the IT portfolio. Tools involve using appropriate and effective tools like dashboards and reports. Lastly, value means demonstrating and communicating the value of the IT portfolio to the business and aligning it with business goals and priorities.

4 How to improve your IT portfolio management process?

In order to improve your IT portfolio management process, you must identify the gaps and challenges present in each of the criteria. Some general recommendations include creating a clear vision and strategy for IT portfolio management that is aligned with the business strategy and stakeholders' expectations, as well as establishing a robust and flexible governance framework that is transparent, accountable, and collaborative. Additionally, it is important to develop a standardized and comprehensive methodology for IT portfolio management that is tailored to the specific needs of your IT portfolio. Furthermore, reliable and relevant data should be collected and used to inform decisions, while suitable and effective tools should be adopted to support the process. Finally, it is essential to communicate and demonstrate the value of your IT portfolio to the business, as well as measure and report on the outcomes of your initiatives.

5 How to get started with IT portfolio management?

If you are new to IT portfolio management or want to refresh your existing process, you can start by defining the scope and boundaries of your IT portfolio, identifying the key stakeholders and their roles and expectations, and conducting a baseline assessment of your current portfolio. Establish objectives and criteria that are aligned with the business strategy and priorities. Analyze the options and alternatives for your IT portfolio, comparing their costs, benefits, risks, and dependencies. Select and prioritize your initiatives and projects, allocating resources and budget accordingly. Monitor and review performance and value of the IT portfolio, adjusting your plan as needed.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?