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My previous articles described the primary and support processes in the portfolio management model. The organization layer in figure 1 describes the common language, definitions, metrics, measurements and approaches to integrating the primary and support processes. Each organization has its own jargon, acronyms, standards and key performance metrics to effectively optimize the organization. The portfolio management processes needs to operate in a context that all stakeholders in the organization understand.
Metrics The primary and support processes generate artifacts throughout the portfolio management process. A significant amount of analysis is performed to accurately describe the current portfolio, develop plans and prioritize the different initiatives. Developing a common set of metrics to measure the portfolio will support consistent decision making. Some of the business questions and portfolio metrics that are developed to support the portfolio analysis include: What applications have declining hardware, application server and database server layers? What applications meet the corporate standards and are consistent with emerging trends or technology patterns? What applications have redundant functionality? How many business units in the portfolio have duplicate applications (i.e. two versions of HR PeopleSoft in two business units versus one business unit)? What is the total cost of ownership for the portfolio?
Methodology Within this layer, the step-by-step processes and activities are defined for the primary and support processes. The key organizational roles and responsibilities are defined and aligned with the detailed portfolio management processes and activities. Organizations can develop their own portfolio management process guide that describe the methodology and steps required to plan, prioritize, execute and monitor projects within the portfolio. Developing the guide will provide structure and additional support to an organization rolling our portfolio management for the first time. The roles definition also describes who interacts with various participants across the primary and support processes. The methodology layer will be uniquely defined by each organization; however, operational similarities are certain to emerge as organizations adopt a standard portfolio management process and supporting tools. Terminology Acronyms for process deliverables seem to flourish in every organization as a result of devious intelligent design. Does the following sound familiar? “In order to execute a project, I need an AR submitted with the PIF so I can issue the SOW with the CRF to generate the PO.” To newcomers, the terminology is daunting; however, to the initiated it is the common language to conduct business. The portfolio management organization layer includes a common terminology supporting portfolio management process. Definitions of applications, initiatives, programs, and projects are documented to provide a common terminology as the processes are executed. Just as project managers need to understand the PMBOK, portfolio managers need to understand the different terms used in the portfolio management process. The organization process layer describes the metrics, methodology and terminology used in the organization’s portfolio management processes. It is important to develop the organizational context, metrics, methods and language in the portfolio management process. Ensuring teams are using consistent terms will aid the portfolio management process as it is expanded across the organization. The next article will review the architecture software layer packages and tools that complete the portfolio management framework. Read the original article posted at http://www.gantthead.com/article.cfm?ID=239734
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