I am interested in learning about the parameters to be included in measuring IT Project Portfolio Performance in organizations having internal IT units which manage IT projects. (Organizations in sectors like banking, retail, insurance, manufacturing., etc. ) Some of the parameters identified from the literature are:
- Alignment of projects to strategy
- Balancing short term and long term strategy
- Balancing risks across projects in the portfolio,
- Projects meeting time, cost, quality objectives
- Projects and Programs meeting the intended objectives
- Value to organization of projects and programs in the portfolio
- Ability of projects to meet customer expectations
- Undertaking the right number of projects based on resource availability
- Adoption of new technologies that benefit the organization
What else may be used to measure the portfolio performance ? Looking forward to inputs and comments on this.
interesting topic that you have raised here.
I am also curios about the answers that will come here, but first i have another question:
How would you measure the parameters you have listed above?
How would you measure the "Alignment of projects to strategy?"
How would the threshold looks like? How would the measured values looks like?
Considerations worth mentioning -
-What is being captured that is measured in the assessment? What are the KPI's
-What is the defined method of assigning a health status - both project and portfolio?
-What is the platform to be utilized for capturing and exposing the status?
-How is strategic alignment measured? Or is there a correlation with organization strategy in the overview?
-Adoption of new technologies ideally would live with, or be vetted through Enterprise Architecture
Some thoughts to keep the conversation going. Saving Changes...
Hi Pradeep, Here are some measures we have applied in our organization to project portfolios:
- Annual/quarterly portfolio planning process defined, approved and implemented - Project portfolio contribution in terms of project orders is clearly defined, measured and delivered to forecast - Project portfolio governance process is approved and adhered to - Timely project resource forecasts - No projects delayed due to lack of resources - Feedback on overall project performance Saving Changes...
you could add metrics regarding the value delivered against benefits initially expected within the Business case presented when project was selected.
First goal of portfolio management is to oversee value delivered..... Saving Changes...
Great question Pradeep! The question can be mapped directly on the ITIL Service Strategy best practice management. The 5 proposed service strategy processes provide for Strategy Management, Service Portfolio Management, Financial Management of the IT services, Demand management and Business Relationship management. Each of these processes are described in much detail and include scope, tools, inputs, outputs, etc, basically addressing most of your concerns. Above all, they provide a structured approach to service management of IT services. Notice, indeed, the difference with the approach between IT service and IT projects! Saving Changes...