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Four Common Mistakes in IT Portfolio Management

  • Four Common Mistakes in IT Portfolio Management-

    Not thinking about risk/return profiles in a meaningful way tends to emphasize low-risk, low-return initiatives and starves the enterprise of the more innovative and potentially “game changing” IT plays.

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Four Common Mistakes in IT Portfolio Management

  • 1 | 2 | 3 | 4 | 5
  • Four Common Mistakes in IT Portfolio Management-4

    Not thinking about risk/return profiles in a meaningful way tends to emphasize low-risk, low-return initiatives and starves the enterprise of the more innovative and potentially “game changing” IT plays.

According to Vaughan Merlyn, IT Portfolio Management is at the heart and soul of leveraging IT for business value, and yet most IT organizations do a poor job of managing IT investments as a portfolio. At its best, IT Portfolio Management (PfM) is a way to:

  • Define your investment strategy for IT – including needs for risk/return, innovation, common enterprise-wide capability.
  • Make that strategy visible and understandable to business executives to allow dialog and debate to reach agreement with key business stakeholders.
  • Monitor performance of the IT portfolio.
  • Adjust the portfolio based upon actual performance of IT investments.
  • Adjust the portfolio based upon changing business conditions. 

At its worst, PfM is simply a laundry list of projects or a collection of laundry lists, one or more for each business unit and corporate function. Mr. Merlyn has developed this list of common mistakes that are made in PfM.