8 Steps to Portfolio Management
1. Standardize and automate the governance processes.
- Define multiple workflows to subject each project to the appropriate governance controls throughout its life cycle — from proposal to post-implementation — resulting in lowered costs, faster cycle times, and increased quality.
2. Capture all investments within a central repository.
- Consolidate business and information technology (IT) investments within an enterprise repository to improve visibility, insight, and control. Implement repeatable processes as templates to standardize and streamline data collection across the organization. Centralized data facilitates cross project analysis of finances, resources, schedules as well as other data trends and status for informative reports.
3. Objectively prioritize business strategy and competing investments.
- Employ proven techniques to define and prioritize your organization’s business strategy for the upcoming planning period, and automatically derive objective prioritization scores to effectively evaluate the competing investments from multiple dimensions.
4. Align the selected portfolios with the business strategy.
- Run optimization what-if scenarios to identify tradeoffs and select the optimal portfolio under varying budgetary and business constraints that best align with your organization’s business strategy. Take advantage of advanced portfolio analytical techniques to identify and break the constraints prohibiting the portfolio from reaching the Efficient Frontier.
5. Effectively manage resources.
- Without understanding long-term workloads and capacity, companies can experience inefficient hire-fire cycles, resulting in higher overhead, lost knowledge, and poor employee morale. By providing visibility into overall work commitments, actual timesheets, and resource capabilities, create resource plans to align your strategic recruiting and outsourcing with your long-term business objectives.
6. Collaborate and coordinate easily.
- Helping to ensure that teams share common goals and work together effectively becomes more vital as organizations become more geographically and culturally diverse. Web-based access to timely, business-critical project information means teams can share knowledge, collaborate smoothly to complete tasks and deliverables, and adjust activities quickly to accommodate project changes and updates.
7. Measure and track portfolio performance.
- Effectively measure and track projects, programs, and applications throughout their life cycle, giving you the visibility to proactively identify potential issues, make decisions, and help ensure that your portfolios maximize return on investment (ROI) and improve operational efficiencies.
8. Quickly realize a return on investment.
- By enabling increased employee productivity, faster cycle times, reduced costs, and improved time management, portfolio management solutions provide a positive and sustainable return on investment. In IT portfolio management, software can cut costs 2-5 percent, improve productivity 20-25 percent, and shift 10-15 percent of budgets to more strategic projects. In developing and bringing new products to market, the best performers — those who have applied rigorous process and technology to their research and development and go-to-market activities — can reduce time to market by more than 30 percent.