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Matakuliah : A0824/IT Investment Portfolio
Tahun
: 2009
PRACTICAL IMPLEMENTATION STEP
Pertemuan 25-26
One should expect that the expected can be prevented,
But the unexpected should have been expected.
~ Norman Augustine in Augustine’s Laws
Fundamental Implementation Rules
1. Don’t implement anything before you have defined success and
how it will be measured
– Major project fail because there is no definition of success
– No agreement
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Bina Nusantara University
Definition of success at the outset of a project
The result is different views of success
Individuals pushing in different directions
Resources not concentrated where they are needed most
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Fundamental Implementation Rules
2. Update the strategic plan and enterprise architecture
plan as needed before kicking off the initiative
– Focuses on the right goals and objectives
– Having an updated enterprise architecture plan with transition
guidance
Fundamental Implementation Rules
3. Develop a plan that will be implemented in phases and
regularly communicate achievements to stakeholders
– It is wise to plan for “quick hit” successes within each chunk and
to regularly publicize those successes.
the analysis performed as part of project planning generally
identifies many quick-hit improvements that can be made during
the life of the project. Quick hits can be scheduled so they
average, say, one a week or every two weeks.
Fundamental Implementation Rules
4. Get senior line managers involved at the outset and
make them accountable for results
the participation of senior line managers is especially
important because they will be the key decision makers
on the Investment Review Board, the proposal sponsors,
the executive managers of organizational change, and
the champions for the proposals and projects in their
business areas.
Fundamental Implementation Rules
5. Appoint an executive manager of organizational change
while the project is being planned
this is an executive sponsor of this project who assumes
the role of manager of organizational change for the
project. This must be a senior executive because of the
need to interact with other senior executives who may
quietly resist the ITPM project or be indifferent with their
cooperation and support.
Fundamental Implementation Rules
6. Plan and implement a communication program
Clear communications prevents false rumors and
misunderstandings, aids in managing expectations, and
helps to maintain support for the project.
Specific communications objectives and channels need
to be established for each target group.
Key Implementation Steps
• Assemble an Integrated Project Team
• Prepare a Business Case
• Establish an Investment Review Board
– Make the best use of limited resources
– Are evaluated in competition with other investment opportunities
– Are aligned with, and justified in terms of, the organization’s priority
goals and objectives
– Contribute to balancing the IT portfolio in terms benefits, costs, risks
and enterprise performance objectives
– Have appropriate sponsorship and support from senior management
and other stakeholders
– Are managed effectively as a project and as implemented systems
– Are documented in business cases and, as required, in detailed
proposals and their subplans, that meet established standards
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Key Implementation Steps
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Form the Boards’s Staff Group
Establish the Operations Analysis Group
Develop Performance Measures
Defne the IT Investment Management Approach
Develop an Assessment Instrument
Key Implementation Steps
• Establish Business Case Standards and Guidelines
– Supportive Policies
• A business case, generally with an associated detailed proposal,
will be used to seek approval for any IT investment, in every phase
of its investment management life cycle, with limited exceptions
• Every significant expenditure on IT is considered an “investment”
• The entire cost of an IT project and the subsequent operating cost
of the implemented system are included in the “IT investment”
• Larger project are to be conducted in chunks of no greater than 12
months to increase the likelihood of success and to control risk and
cost
– Business Case Content Requirements
– Validating Standards and Guidelines
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Key Implementation Steps
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Appoint a portfolio manger
Develop the IT Portfolio
Select Portfolio Management Software
Systems for Federal Agencies
Key Implementation Steps
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Select Complementary Software
Conduct Manual Simulations
Make Interfaces Friendly
Establish a Project Management Methodology
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Key Implementation Steps
• Establish a Project Management Methodology
– Consistent use of a specific project management methodology
with repeatable, standards, metrics, and training in the use of the
methodology
– Provision for coaching and mentoring project managers, such as
through program managers who are expert at project
management and who develop project managers who report to
them
– Use of a project management software system that provides
such functions as project planning, risk analysis and tracking,
analyses of actual versus planned, resource management, and
reporting and interfaces with other software, such as project
office software and the portfolio management software
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Key Implementation Steps
• Implement a Results Oriented Phased Roll Out
• Provide Training
– On-Line training
– Training products
– “Walk-Through” Approach
• Provide Ongoing Fine-Tuning
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The benefits of ITPM
• Reduce costs, such as saving from avoiding duplications
and overlaps of IT projects and systems and from
identifying poor proposed investments and preventing
them from being funded
• Improve competitive advantage. A good job of
implementing ITPM will surpass about three-fourths of
other organizations that claim to have adopted IT
portfolio management but have weak implementation.
Conversely, there is a competitive risk associated with
delaying implementation.
• Maximize the return on IT investments by enabling only
the most worthy IT proposals to be funded
The benefits of ITPM
• Reduce and control risk by using portfolio analysis
techniques that improve risk identification, facilitate
diversification and balancing, and enable risk to be
monitored and managed
• Improve alignment by providing proposal teams with
investment criteria that enable them to align their
proposals with the strategic goals
• Create value. ITPM motivates and rewards performance
improvements and innovation. Adopting successful
management practices creates value, reduces cost and
risk, and produces the types of internal controls called
for by the Sarbanes – Oxley Act.
Future Expectations
• The substantial benefits of IT portfolio management will
cause it to continue to grow and become a fundamental
part of corporate management and especially enterprise
performance management
• Software to support ITPM will improve significantly over
the next few years as more organizations and vendors
gain experience, insights, and knowledge of ITPM
• Adoptions of enterprise architecture plans and related
application integration software will continue and
leverage the power and potential of ITPM
• The increasing importance of an “enterprise viewpoint”
will lead to greater standardization of performance
measures, data collection, analyses, and reporting. This
will result in more powerful ITPM systems
Future Expectations
• There will be ongoing growth in the development of
guidelines and best practices for portfolio development.
They will aid such tasks as defining content categories ,
determining, data structures and relationships, and
establishing criteria for portfolio balance and resource
allocations
• Automated approaches to capturing performance
information will increase the quality and quantity of
information provided to the IT portfolio. This in turn will
increase the value of IT portfolio information provided to
managers in support of their decision making
• Vendors will increasingly offer software packages that
integrate It portfolio management with other software to
facilitate enterprise performance management.
Future Expectations
• The sarbanes-oxley financial disclosure act and other
legal and regulatory requirements will continue to
provide an added stimulus for the adoption and
expansion of ITPM, which has built-in tools and data to
enable compliance
• IT portfolio management will become common in midsize companies as software aimed at the mid-size
company continues to evolve
• The increasing reliance on the Internet and the demands
for information security and privacy will stimulate greater
use of portfolio management as a tool for planning,
monitoring and controlling information security and
privacy