dcsimg

Four Common Mistakes in IT Portfolio Management

  • Four Common Mistakes in IT Portfolio Management-

    Often the portfolio only addresses new, major project initiatives – IT services and smaller projects are not under the umbrella of PfM – and yet these “non-big” activities typically consume 60 percent to 70 percent of the IT budget – the lion’s share is untouched by PfM disciplines.

1 | 2 | 3 | 4 | 5

Four Common Mistakes in IT Portfolio Management

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

    Often the portfolio only addresses new, major project initiatives – IT services and smaller projects are not under the umbrella of PfM – and yet these “non-big” activities typically consume 60 percent to 70 percent of the IT budget – the lion’s share is untouched by PfM disciplines.

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.