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• People: Metrics for governing processes and key supporting processes are identified and captured, preparing for level 4, where these metrics can be used to analyze and optimize both the subportfolio and the portfolio management process.
• Processes: Metrics for governing processes and key supporting processes are identified and captured, preparing for level 4, where these metrics can be
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used to analyze and optimize both the subportfolio and the portfolio management process.
• Information: Metrics for governing processes and key supporting processes are identified and captured, preparing for level 4, where these metrics can be used to analyze and optimize both the subportfolio and the portfolio management process.
• Overall IT portfolio: Metrics for governing processes of each subportfolio and key supporting processes are identified and captured, preparing for level 4, where these metrics can be used to analyze and optimize both the subportfolio and the portfolio management process. Metrics are captured on the overall IT portfolio management process as well. The overall IT portfolio management process resembles a financial consolidation of the subportfolios.
LEVEL 4: OPTIMIZING
Level 4 focuses on being able to sense and respond appropriately to optimize allocation of resources across the IT organization.
• Projects: Project/program operations are providing reliable information supported by excellence in project management and execution. The project portfolio reflects and is balanced against near-real-time project information. The project portfolio is integrated with other portfolios, most specifically people, infrastructure, and applications.
• Applications: Application performance and life cycle information are affecting the application and IT portfolio; information from other portfolios is used to balance the application portfolio as well. It is common to see applications feeding information to the process portfolio (i.e., process metrics).
• Infrastructure: Asset management information is used to balance this subportfolio and associated to related portfolios, including the project, people, and process.
• People: The people portfolio is balanced against the process, project, and infrastructure portfolio to ensure that the optimum mix of skills exists in sufficient quantities to support current and future needs, and skill and resource shortages are identified proactively and acted on through defined human capital management processes.
• Process: All processes exist in the portfolio with supporting metrics and ties to the applications supported by these processes and the information touched by
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these processes. Processes can be adjusted based on information from other subportfolios. The overall portfolio management process and each subportfolio’s management process are captured and optimized.
• Information: An optimized information portfolio enables adjustment of information management to balance other portfolios. Data quality flows into the portfolio, enabling rapid corrective action to be taken through information.
People and Governance:
The Most Important Success Factors of IT Portfolio Management_______________________________________
“IT Governance is the system by which an organization’s IT portfolio is directed and controlled. IT Governance describes (a) the distribution of IT decision-making rights and responsibilities among different shareholders in the organization, and (b) the rules and procedures for making and monitoring decisions on strategic IT concerns”1
Conflict and competition drive each business unit to its peak performance. However, unrecognized or poorly managed conflict will lead a company into disarray. Governance is foremost a process designed to resolve ambiguity, manage short-and long-range goals, and mitigate conflict within a company and between divisions, business units, and corporate. IT governance is a systematic relationship between information policy, processes, and people enacted to enable the freedom of thinking (innovation), decision making, and action (initiative) without compromising the overall objectives of the company. It defines and mandates the parameters (e.g., aligning IT activities to business objectives, setting cost and risk thresholds, and providing IT value goals) within which individual employees are
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given freedom and autonomy to react to their marketplace and customers while maintaining consistency with the business policies that drive the company.
IT governance serves the primary role of focusing IT efforts and resources on high value-added support of the business, application of best practices, and reuse while keeping the company out of low value-added investments. Enterprise governance must establish policy that articulates guidelines within which expected behaviors occur defining the processes and defining and delegating responsibility and accountability for operating the business accordingly. IT governance has two primary functions: