Given this portfolio management framework, IT is in a position to engage with executive stakeholders in an IT governance process. This often takes the form of an IT governance committee (sometimes called the IT steering committee), which functions like a board of directors, first deliberating and ultimately approving budgetary parameters, such as how much portfolio investment to direct toward cost reduction programs, for example.
Every IT governance committee must address which parts of the portfolio to outsource. In some cases, the determination will be that all of IT should be outsourced and in other cases that none should be outsourced. More common is the determination that specific assets should be outsourced: levels of infrastructure, areas of development or support, or specific systems. Determining the right mix, and then crafting transition programs to the proposed portfolio, is a challenge perfectly suited for portfolio management.
Opportunity management—requests for significant new systems and projects—should also be processed through portfolio impact assessments, with the request sponsors self-assessing how the proposal will score in terms of goal, risk, status, and so forth. This works best if an "IT suggestion box" can be deployed as a Web-based work flow, allowing self-assessment right at the source of an idea, then funnel-ing ideas from every corner of the enterprise through a structured review and escalation process.
In short, IT governance is, first and foremost, the structured executive oversight of IT investment to ensure alignment with strategic priorities. The framework provided by the portfolio management module of an IT management and governance (IT-MG) system significantly increases the likelihood of the IT organization's achieving the defined goals that emerge from the governance process.
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What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.