lecture 19 - it portfolio management

8/12/2019 Lecture 19 - IT Portfolio Management

1/34

Lecture 19

Chapter 10

A Portfolio Approach to ManagingIT Projects


2/34

2

Announcements

Final Exam overview today

Business Plans returned today

Grades for presentations etc. on Thursday

Group project due Thursday


3/34


4/34

4

Question 1: Find New Zealand on a

world map


5/34

5

Final Exam Sample Questions

Short answer: What is the difference between security and

reliability?

How does standardization affect businessopportunities?

In what ways is IT infrastructure different fromother infrastructure resources?

Cite an example from one of the cases westudied that shows how IT professionals withexperience in one industry can bring changes to

another industry


6/34

6

Final Exam Sample Questions

Long answer (1 page, ~250 words) Discuss what risks are associated with major IT

projects, and what a company can do to

mitigate against them

Describe the challenges associated with

educating users of IT in a company, and whatIT-focused companies can do to help their

employees


7/34

7

Case study questions

You will receive a copy of a case in classThursday

Prepare in advanceie read case beforeexam!

Questions will be short and long answer fromthe case

Identify and analyze core issues


8/34

8

IT Portfolio Management


9/34

9

IT Disasters are still common

Companies fail to realize risk of project Multiple projects lead to larger aggregate risk

Different projects require different management


10/34

10

Portfolio View of IT


11/34

11

Financial Perspective


12/34

12

Sources of Implementation Risk

1. Project Size2. Experience with Technology

3. Requirements Volatility

See fig 10.1

ff f


13/34

13

Fig 10.1 Effect of Adding Risk Factors

on Project Risk


14/34

14

Barriers to Perspective


15/34

15

Governance


16/34

16

Strategic Grid and Governance


17/34

17

Project Categories and Degree of Risk


18/34

18

Risk Assessment

Figure 10.3 Risk profile questionnaire Higher risk score, higher management approval

required

Repeated several times throughout project Different perspectives on risk expectation can

lead to disaster


19/34

19

Portfolio Risk

Multiple projects can add or reduce risk Low-risk not always good

All high-risk is vulnerable

Identify risks in all projects, then considercombined portfolio of risks

See fig 10.5

Fi 10 5 Ri k d R t Di t ib ti


20/34

20

Fig 10.5 Risk and Return Distribution

for Portfolio of Projects


21/34

21

Project Implementation Dip

Most projects dont go smoothly all the way New system going live common point

Expectations not always realistic

Short term downward shift may be necessary

All happens in middle of business cycle and

worker turnover

Need to focus on end goal to get through valueof change when people are complaining

Ideally see it before it comes and get people

ready


22/34

22

Fig 10.4 Expectations vs. reality


23/34

23

Questions, Presentations, Break


24/34

24

Project Management

No single correct plan Management Tools

External integration tools

Internal integration tools Formal planning tools

Formal result controls

See table 10.1: Tools for project management

Table 10 1 Tools for Project


25/34

25

Table 10.1 Tools for Project

Management


26/34

26

Influences on Tool Selection

Low requirements volatility/low tech projects Easy to manage

Least common

PERT (program evaluation review technique)

CPM (critical path method)

Low requirements volatility/high tech projects

Difficult to manage

Eg. Converting mainframe system, developing web access Outputs well defined

Technical complexity drives characteristics of successful

manager

Formal planning not likely to add as much value


27/34

27

Influences on Tool Selection (ctd)

High requirements volatility/low tech projects Involve users in design, development and implementation

Develop user support

Formal planning and control tools help

Close, aggressive management of external integration

Leadership from management not technologists

High Requirements Volatility/high-tech projects

Managers need technical expertise Ill-defined projects common

Formal tools useful once clarity is reached in direction

Cross effects of different factors becomes important


28/34

28

Project Management

Relative Contribution of Management Tools Depends on specific project

Results-oriented tools work in structured/formal environment

Depends on corporate culture

Emergence of Adaptive Project Management Methods Approaches to design, deployment, implementation and

investment that assume a need to gather information andlearn as one goes.

Not really effective universal methods yet

Software Development Life Cycles SDLC breaks down development into stages: Analysis and design

Construction

Implementation

Operation and maintenance


29/34

Process Consistency and Agility in


30/34

30

Process Consistency and Agility in

Project Management

Balancing tension between process consistency andprocess agility

Tools useful one place shouldnt necessarily beapplied to everything

Success in balance often includes minimalformalization

Flow Understand interrelationships between projects

Completeness Keeping track of all tasks in project

Visibility Getting info on status of rest of project


31/34

31

Business Plan Feedback

Lots of interesting ideas

Make sure the highlights stand outdont make

a VC look for the main points

Simple presentation improvements go a long

wayspell check, section headings,


32/34

32

Grading for Business Plan

Exec summary /10 Bus opportunity articulated /10

Strategy and milestones /10

Marketing /5

Operations plan /5

Management /5

Financials /5

Convincing case /10 Presentation /20

Total /80


33/34

33

Grade summary (out of 80)

Lower quartile: 55 Median: 62

Upper quartile: 67

Mean = 60.33

Business Plan Grades Distribution


34/34

34

Business Plan Grades Distribution

scores out of 80Business Plan Grades

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

7 7

lecture 19 - it portfolio management

Documents