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Unlike the portfolios used by money managers in the financial marketplace where the underlying data come from mature processes governed under generally accepted accounting principles (GAAP) and generally accepted auditing standards (GAAS), IT does not have generally accepted governing principles and standardized rules and processes. Therefore, this chapter identifies a maturity model that helps meter the progress made by companies in the IT portfolio management
IT PORTFOLIO MANAGEMENT MATURITY 43
EXHIBIT 2.1 ORGANIZATION READINESS DIMENSIONS
Value What is the business抯 perception of IT抯
IT Plan and IT Principles Does an IT plan and/or IT principle document exist?
Are they frequently evaluated and updated? Do these
documents explain how IT delivers value within the
IT Governance Committee Does the company have an existing IT governance
committee that can be leveraged?
IT Discovery Is there a tie between IT discovery and the strategic
Project Prioritization Process Is there a project prioritization process in place? If so,
is it resistant to change?
Project/Program Management Competency Do project/program competencies exist? If so, at what
level of maturity?
Enterprise Architecture Has a clear vision of the enterprise's future been
articulated through an enterprise architecture or
Measurement Program Do metrics exist within the IT organization? Are they
reliable? Are they accurate? Are they precise?
Products/Service Catalog Is there an accurate listing of IT assets? Are they
portrayed as products and services to be offered to
the customers of IT, or are they portrayed as
Leadership/Sponsorship Is there strong leadership within the business and IT to
support decisions made with a portfolio approach?
Organization Culture Does the organization's culture promote consensus
decision making? What is the organization's tolerance
Operational Processes Are operational processes stable enough to provide
reliable data and information for portfolio decisions?
Resources Do adequate resources exist to institute portfolio
management (e.g., people, funding, time)?
Technology and Support Is there an adequate infrastructure and support
mechanism in place (help desk, networked services,
integrated systems and solutions, etc.)?
process. The IT portfolio management maturity model allows IT organizations to benefit from rudimentary portfolio management initially but requires operational processes to be refined and matured to enable the nirvana of IT portfolio management梐n optimized, fluid, dynamic portfolio of projects and assets that provides the most efficient and effective use of a company抯 IT resources and is capable of being reprioritized and rebalanced based on changing conditions.
The Software Engineering Institute (SEI), a federally funded research and development center operating at Carnegie Mellon University, developed the capability maturity model (CMM) as a framework to guide software process improvement efforts. It is comprised of five levels that provide a framework for
EXHIBIT 2.2 OBSTACLES TO IT PERFORMANCE
Lack of infrastructure for real-time reporting, performance measurement, and