How do you manage IT portfolio performance? (2024)

For a holistic view, Performance criteria can be broadly classified into the following 3 categories1) Strategic Alignment: Alignment with the enterprise vision, strategy and goals -There could be some investments that may not immediately have any measurable business metric, but are well aligned to the overall vision. An Example could be investing in an Innovation Function2) Business Benefits: Benefits for the business through improvements in business processes and impact on business KPIs - This is where most of the SMART criteria can be placed. 3) Risks: Consequences of not making the investment. An element helping to mitigate risks (such as strategic, compliance, financial, operational )

The largest challenge that we've come across is the lack of current IT portfolio data. It is justified to have isolated sources of information across multiple systems e.g. Enterprise Portfolio Management tools, Enterprise Architecture tools, Configuration Management Database etc. With the pace at which digital technologies are being introduced into an enterprise currency of the information is always a question mark. Having crossed that bridge the challenge shifts to identifying quantitative and qualitative performance parameters for measurement across every portfolio element be it a new investment through programs or existing applications, services, contracts. Different business functions would need selection of appropriate parameters.

My view here is that some key data is often missed... During this second step, you're gathering two types of high-level data: project-specific and organisational. You need to collect key project details, track project life-cycles, organise cost elements, and evaluate the business value and strategic alignment of each project. Additionally, you must define your project reporting requirements. On the organisational side, analyse your resources, knowing the skill set available in your organisation and how it's deployed across your projects. This data will allow you to create a simplified IT workforce plan, connecting each individual in the resource pool to a primary skill type and thus help deal with IT portfolio skills vulnerabilities.

A common misstep among IT leaders is confusing Project Portfolio Management with simple project management, assuming their project management plan covers PPM.My best advice here is to treat your portfolio as more than just a collection of individual projects. Establish a cohesive strategy to boost the collective value that projects deliver as a project portfolio.Recognise value from the outset. Outline a strategy and secure executive approval early on. Remember, turn your PPM strategy into concrete, achievable short-term and long-term objectives, realised through a range of project portfolio management processes that are customised to your organisation and its culture.