IT Portfolio Management Step-by-Step: Unlocking the Business Value of Technology

3.7. GETTING STARTED

It is not surprising that a chapter on any type of governance (which is a term derived from government) would be filled with excessive theory and rhetoric.

Figure 3.5. COBIT—MANAGING THE RISK AND CONTROL OF IT

There are practical steps that can be taken to institute effective IT governance in support of IT portfolio management.

First, an organization must understand its business and strategic objectives and assess its portfolio management maturity. It is difficult to govern if processes are not governable and if current and future directions are not clear. Coordination of IT with goals, strategies, requirements, and priorities is essential. Thus, putting principles in place to steer appropriate behavior that align with strategy, investment objectives, and tolerance for risk is the first, albeit remedial, step.

Second, IT portfolio management should be leveraged to communicate the magnitude of the IT portfolio management opportunity. This will be a segway into IT investment governance.

Third, IT processes should be cleaned up and standardized. It is the IT processes that provide feedback into the IT portfolio. This will allow management and subsequent optimization of the IT portfolio.

Fourth, the existing business and IT processes, activities, and target areas that naturally fit into IT governance should be identified. These include areas such as:

• Budgeting ...