IT Portfolio Management: A Practical Approach

  Business Analysis   Governance   Portfolio Management   Knowledge Shelf  

Strategic planning requires a disciplined, closed-loop process to execute strategies. To be able to align and synchronize business strategy and successful business value realization, the use of portfolio, program and project management techniques becomes essential. The increasing acceptance of portfolio management indicates that the application of knowledge, processes, skills, tools and techniques to select the right work at the right time may have significant impacts on program, project and business success.

A portfolio is considered to be a component collection of programs and projects managed as a group to achieve strategic objectives, while portfolio management is the centralized management of one or more portfolios to achieve strategic business objectives. That is, portfolio management is considered as a management approach that aims to align project efforts with the corporate strategy and optimize the efficient use of both human and non-human resources throughout the organization.

The Project Management Institute (PMI) classifies portfolio management processes into two (2) main categories:

1. Aligning Processes Category:Portfolio analysis, project selection, resource allocation, and portfolio realignment
2. Monitoring and Controlling Processes Category:Portfolio risk evaluations and portfolio performance reviews in relation to business objectives

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