What Is Project Portfolio Management

Portfolio Management is making sure that you optimize the revenue potential while keeping as low as possible on resource usage.

Project Portfolio Management makes it possible to use your IT as an assessment. It facilitates:

  • Planning;
  • Controlling;
  • Managing;
  • Reporting.

To be able to perform it properly you need:

  • A solid approach;
  • Skilled people;
  • Tooling.

Business Service Management

As part of IT Governance you also should look into Business Service Management. Aspects are:

  • Business Service Manager.

    • Operation: time to process;
    • Processing backlog volume;
    • State of business service;
    • Business transaction volume.
  • IT Service Manager.
    • Service availability;
    • Incident closure rate;
    • Frequency of changes.
  • IT Infrastructure Manager.
    • Server availability;
    • CPU utilization;
    • Disk space.

The Functions of Portfolio Management

Core functions of Portfolio Management are:

  • Time management;
  • Resource management;
  • Cost management.

Supplemental functions of Portfolio Management are:

  • Scope management;
  • Procurement management;
  • Communication management;
  • Risk management;
  • Quality management;
  • Metrics;
  • Integration management.

Forrester identifies 3 main levels of IT demand:

The components of IT demand
Demand types High-level management process Sub-level management process Examples
Strategic Project portfolio management
  • Clearly identify strategic objectives
  • Take full life-cycle approach to investments and benefits realization
  • Use a fact-based process for decision-making
  • Embed relationship managers
  • Use a standard business case template with financial return
  • Use a product plan to address upgrades and retirement/replacement
Tactic Service portfolio management
  • The service catalog is the heart of SPM
  • Automated work-flows for ordering, approving, and delivering
  • Information for IT and user management
  • Catalog a service: an email account with 50 gigabytes of storage costs $1,000/user/year with 99.9% availability and weekly backup
  • Process a request: a manager with a new employee starting orders a PC using a web-browser interface to the catalog
Operational Asset management
  • Keep desktop and infrastructure software up to date
  • Comply with regulations
  • Maintain the hardware
  • Install and configure exchange server
  • Deploy latest Microsoft patch
  Application portfolio management
  • Support the applications
  • Take inventory of application software

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