Managing the IT Portfolio
Mon Mar 29, 2004 - Mon Mar 29, 2004
Managing IT spending continues to be one of the top challenges facing CIOs in 2004, requiring
that scarce financial and personnel resources be focused on those activities that will return the greatest
value for the organization. At this meeting, members discussed a number of different approaches to managing the IT portfolio.
Member Approaches to Portfolio Management
Most members have focused their portfolio management efforts on investment projects, identifying and prioritizing these activities according to their financial returns, strategic alignment, and delivery risk. Active involvement by senior business management was seen as essential to an effective governance process, and several members shared the decision-making structures that they have found to be successful.
Balancing Process Rigor and Simplicity
Much of the discussion concerned the need for a practical balance between process rigor and simplicity. Portfolio management is not a search for ‘truth, but rather a discipline to enable apples-to-apples comparisons among alternatives to support informed decision-making. Many spoke of the ongoing challenge to find the right level of documentation and process that improves decisions without creating undue bureaucratic overhead.
Getting Started with Portfolio Management
For those members who are just beginning to implement a portfolio management process, participants offered the benefit of their hard-won experience. All agreed that a ‘one-size-fits-all approach is not realistic, and that each organizations unique mix of market, business, and operating factors must be considered.
IMF Members may view the meeting summary report online here.
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