In the last decade, we have seen the emergence of many new IT processes. These are there to help the IT sector and teams to evolve and meet all the organization’s needs in no time. However, with so many new processes and elements, businesses face the challenge of process integration.
Integrated portfolio management is one solution that can help organizations. Here is what you need to know about it.
Integrated Portfolio Management Explained
Many people think that a portfolio is only a collection of projects, but it is a vehicle for transformation for a business. Integrated portfolio management includes many processes that guarantee the proper coordination of various elements of the portfolio. For example, the approach manages and establishes the involvement of:
- Competing objectives
- Competing alternatives
- And much more
It includes the management of applications, processes, infrastructure, and much more. For example, if an application’s infrastructure is old, it doesn’t mean the organization should upgrade it. The business must set goals and do portfolio management according to that.
Key Components Of Integrated Portfolio Management
Here are the key components of integrated portfolio management that will help you understand it better:
1. The Portfolio Charter
The portfolio charter is where every organization must begin as it is the statement of the objectives, scope, participants, and all the stakeholders. It outlines the responsibilities and roles of everyone involved in the portfolio of the organization. Besides that, it also outlines the responsibilities and authority of the portfolio manager.
No organization can do integrated portfolio management without this component. It is where all the efforts begin so the IT team can make all the relevant changes within the organization.
2. The Scope Of The Portfolio
The second key component is the portfolio scope. It defines and specifies all goals and the long-term objectives of the portfolio. For example, if the objective of the portfolio is to increase social media shares, the scope will state that.
Of course, it can also include many specific and narrow milestones that a company wants to achieve. For example, an organization might want to implement a social sharing button in its portfolio. So, the scope will also state this to execute it in the future.
3. The Portfolio Management Plan
Finally, the last component of integrated project management is the portfolio management plan. It is a document that includes all activities you require to define, plan, integrate, and coordinate all the processes related to the portfolio. For example, an organization might have a unique plan for the design team and another for the engineering team.
The plan will also involve all the communication requirements, processes, risk management, and much more. All of this will help in integrated portfolio management in no time.
That is everything you must know about integrated portfolio management. Once you have everything in place, you must also measure the portfolio performance and make relevant changes. Doing this ensures that the strategies stay relevant and all the business processes are optimized.