In the era where success of majority of business initiatives is either driven and/or dependent on IT, the need of enabling effective IT governance mechanism is at its peak. This article briefly discusses my thoughts on how Project Portfolio Management (PPM) discipline and related tools can play a pivotal role in delivering effective IT governance.
“IT governance (ITG) is defined as the processes that ensure the effective and efficient use of IT in enabling an organization to achieve its goals.”
Reference and credits: Gartner IT Glossary (http://www.gartner.com/it-glossary/it-governance/)
If we dissect or take above definition to the next level, two primary messages come out of it:
- Ensure that IT initiatives are aligned to business goals/objectives
- Ensure those initiatives are delivered successfully
Any organization being able to manage above two aspects successfully can achieve major adoption of effective IT governance.
Now on the other side if we look at what Project Portfolio Management (PPM) as a discipline and related tools offer is nothing but functionalities and processes which help you to:
- Select the initiatives based on their strategic alignment to business objectives
- Help you to deliver the initiatives in defined time, resources and cost
There is clear match between what IT governance demands in form of its benefits and what PPM offers in form of its capabilities.
Going little deep from this alignment of these two disciplines, PPM has an array of functional areas to offer for enterprises who want to use governance as a tool for success and performance rather than just a compliance aspect.
Broadly the areas addressed by Project Portfolio Management and related tools are:
- Demand management which helps to manage the demand for initiatives
- Portfolio Prioritization and Selection which helps to prioritize and select the right initiatives
- Program and Project Management which helps to ensure that selected initiatives are planned and executed successfully
- Resource Management helps to effectively manage and utilize all types of resources for the success as well manage resource demand
- Collaboration among all stakeholders
- Issue and Risk management to ensure initiatives are not stalled or affected deep due to unforeseen and unidentified things
- Task and time management helps to be on top of priorities for work
- Business intelligence and reporting for providing information in desired representations at right time for informed decision making to get most out of portfolio
Looking at Project Portfolio Management from IT or Corporate Governance standpoint enables organizations to extract maximum value out of their PPM investments.