IT Portfolio Management - Implementing IT Portfolio Management

Implementing IT Portfolio Management

Jeffery and Leliveld (2004) have pointed out a number of hurdles and success factors that CIOs might face while attempting to implement IT portfolio management approach. To overcome these hurdles, simple methods such as proposed by Pisello (2001) can be used.

Other implementation methods include (1) risk profile analysis (figure out what needs to be measured and what risks are associated with it), (2) Decide on the Diversification of projects, infrastructure and technologies (it is an important tool that IT portfolio management provides to judge the level of investments on the basis of how investments should be made in various elements of the portfolio), (3) Continuous Alignment with business goals (highest levels of organizations should have a buy-in in the portfolio) and (4) Continuous Improvement (lessons learned and investment adjustments).

Maizlish and Handler (2007) provide a proven step-by-step methodology for applying IT portfolio management that has eight stages. In today's fast-paced world, waterfall approaches to delivering anything are proving to be less and less effective. Nonetheless, the eight stages are:

1. Developing an IT portfolio management game plan
2. Planning the IT portfolio
3. Creating the IT portfolio
4. Assessing the IT portfolio
5. Balancing the IT portfolio
6. Communicating the IT portfolio
7. Developing and evolving IT portfolio governance and organization
8. Assessing IT portfolio management process execution

There is no single best way to implement IT portfolio approach and therefore variety of approaches can applied. Obviously the methods are not set in stone and will need altering depending upon the individual circumstances of different organizations.