Integrating the Project Portfolio Management and Service Portfolio Management: The Governance of Enterprise IT Perspective
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1 Integrating the Project Portfolio and Portfolio : The Governance of Enterprise IT Perspective George Papoulias CGEIT. ITIL Expert, PRINCE2 Prac;;oner, CRISC, CISA Senior Project Manager
2 CONTENTS TYPES of GOVERANCE GOVERNANCE IN COBIT5 COBIT5 & MANAGEMENT PROCESSES STRATEGIC COMPONENTS OF A LOGICAL ORGANISATION STRUCTURE FOR AN IT SERVICE PROVIDER THE SERVICE PORTFOLIO MANAGEMENT PROCESS BUSINESS CHANGE GOVERNANCE THE PROJECT PORTFOLIO MANAGEMENT PROCESS INTEGRATING THE PROJECT MANAGEMENT & SERVICE MANAGEMENT CONCLUSION 2
3 TYPES OF GOVERNANCE Governance Governance of Enterprise Informa;on Technology Economic and Financial Governance Project/ Program PorRolio Governance Corporate Governance Environmental Governance 3
4 THE COBIT 5 FRAMEWORK Governance of Enterprise Informa;on Technology COBIT 5 provides a comprehensive framework that assists enterprises to achieve their goals and deliver value through effective governance and management of enterprise IT. 4
5 COBIT 5 PRINCIPLES & ENABLERS PRINCIPLES ENABLERS Mee;ng Stakeholder Needs 2. Processes 3. Organiza;onal Structures 4. Culture, Ethics and Behavior Separa;ng Governance from COBIT5 PRINCIPLES Covering the Enterprise End- to- end 1. Principles, Policies and Frameworks Enabling a Holis;c Approach Applying a Single Integrated Framework 5. Informa;on 6.s, Infrastructures and Applica;ons 7. People, Skills and Competencies RESOURCES Source: COBIT 5, figure ISACA All rights reserved. Source: COBIT 5, figure ISACA All rights reserved. 5
6 GOVERNANCE (AND MANAGEMENT) in COBIT5 Business Needs GOVERNANCE EVALUATE DIRECT MONITOR MANAGMENT PLAN BUILD RUN MONITOR Source: COBIT 5, figure ISACA All rights reserved. 6
7 GOVERNANCE in COBIT5 The COBIT 5 process reference model subdivides the IT-related practices and activities of the enterprise into two main areas governance and management with management further divided into domains of processes Source: COBIT 16, figure ISACA All rights reserved. 7
8 COBIT5 & IT SERVICE MANAGEMENT Source: COBIT 16, figure ISACA All rights reserved. 8
9 COBIT5 & PORTFOLIO/PROGRAMME/PROJECT MANAGEMENT Source: COBIT 16, figure ISACA All rights reserved. 9
10 STRATEGIC COMPONENTS OF A LOGICALORGANISATION STRUCTURE FOR AN IT SERVICE PROVIDER IT Steering Group Project Office (PMO) Process, Role or Function Advocate of the customer (External/Internal) Business Rela;onship Office (SMO) Source: Figure 6.12, Strategy, ITIL v3 All rights reserved. 10
11 PROCESSES & FUNCTIONS COORDINATED BY THE SERVICE MANAGEMENT OFFICE (SMO) SERVICE MANAGEMENT OFFICE (SMO) Strategy Design Transi;on Opera;on Processes Processes Processes Processes 11
12 PROCESSES & FUNCTIONS COORDINATED BY THE SERVICE MANAGEMENT OFFICE (SMO) SERVICE MANAGEMENT OFFICE (SMO) Strategy Processes Strategy for IT services PorRolio Financial for IT s Demand Business Rela;onship 12
13 PROCESSES & FUNCTIONS COORDINATED BY THE SERVICE MANAGEMENT OFFICE (SMO) SERVICE MANAGEMENT OFFICE (SMO) Design Processes Design Coordina;on Catalogue Level Availability Capacity IT service Con;nuity Informa;on Security Supplier 13
14 PROCESSES & FUNCTIONS COORDINATED BY THE SERVICE MANAGEMENT OFFICE (SMO) SERVICE MANAGEMENT OFFICE (SMO) Transi;on Processes Transi;on Planning and Support Change Asset and Configura;on Release and Deployment Valida;on and Tes;ng Change Evalua;on Knowledge 14
15 PROCESSES & FUNCTIONS COORDINATED BY THE SERVICE MANAGEMENT OFFICE (SMO) SERVICE MANAGEMENT OFFICE (SMO) Opera;on Processes Event Incident Request Fulfillment Problem Access 15
16 THE SERVICE PORTFOLIO SERVICE PORTFOLIO Pipeline Catalogue Re;red s Configura;on System Project PorRolio Applica;on PorRolio Customer PorRolio Customer Agreement PorRolio Supplier & Contract Mgmnt Inf. Sys. CMDB Source: Figure 4.14, Strategy, ITIL v3 All rights reserved. 16
17 SERVICE LIFECYCLE CATEGORIES Source: Figure 2.6, Strategy, ITIL v3 All rights reserved. 17
18 SERVICE PORTFOLIO MANAGEMENT PHASES Process IniEaEon s Strategy Business Rela;onship Con;nual Improvement Other Processes Define Business Cases Communication Resource Allocation Charter Analyze Change Proposal Authorization Approve Value Proposition Prioritization 18
19 SERVICE PORTFOLIO MANAGEMENT PROCESS Source: Figure 4.19, Strategy, ITIL v3 All rights reserved. 19
20 DEFINE PROCESS Strategic Initiative Request from Business Improvement Suggestion Yes Existing No Define Impact on Portfolio Define Impact on Model, Project Contract, Customer, and Application Portfolio Model Define, Customer, Business Outcome Define Model 20
21 ANALYZE PROCESS Define Process Model Portfolio (service Architecture Board) Analyze Investments, Value, and Priorities Articulate Value Proposition Business Case Approve Process 21
22 APPROVE PROCESS Analyze Process Business Case No Feasible of to be Retired Charter Process Yes Change Proposal Charter Change Yes Notify Stakeholders and Update Portfolio No Change Proposal Authorized 22
23 CHARTER PROCESS Approve Process Charter Project PorRolio Approve Process Design and Transition Analyze Process Notify Stakeholders and Update Portfolio Communicate with Stakeholders Track Progress and Update Portfolio Analyze Investments, Value, and Priorities Successful? No END Yes 23
24 RUN THE BUSINESS, CHANGE THE BUSINESS STRATEGIC OBJECTIVES Managing Benefits RUN THE BUSINESS Business as Usual CHANGE THE BUSINESS PorRolio Managed Programmes & Projects Figure 1,1, P3O is a Registered Trade Mark of the Cabinet Office. Crown Copyright 2008 Reproduced under license from the Cabinet Office 24
25 BUSINESS CHANGE GOVERNANCE Doing the right programmes and projects Are we doing the right things Are we doing things the right way Business Change Strategy Business Change Design Validation Verification Business Change Value Business Change Delivery Are we getting the business benefits Are we getting things done well Project Office (PMO) Doing the programmes and projects right Figure 2,1 P3O is a Registered Trade Mark of the Cabinet Office. Crown Copyright 2008 Reproduced under license from the Cabinet Office 25
26 PROJECT PORTFOLIO MANAGEMENT GROUPS 26
27 CORE PPM PROCESS OVERVIEW 27
28 PROJECT PORTFOLIO MANAGEMENT PROCESS Vision, Mission, Strategic Plan Strategic Planning PorNolio Performance Review Opera;ons Project/ Programme Requests PorRolio IdenEficaEon, CategorizaEon, EvaluaEon, SelecEon, PrioriEzaEon, And authorizaeon of PorNolio Components Delivering Completed Project/Program me to OperaEons Project/ ProgrammeManage ment Project/Programme Processes Project/ Programme Performance Review Source: PMI Portfolio Standard, PMI, 2006 pp16, All rights reserved. 28
29 Project/Programme Portfolio Process who Input Processing Output Portfolio/ Program/ Project Office (PMO) Market, Industry Trends, Process Tools, Templates & Guides Gate 1 Gate 2 Project Reviews Gate3 7 Analyze PorRolio & Recommend Project Priori;es Yes Decision Board Project Decision Criteria, Project Guidelines, Strategic Plans, Budgets, Mergers, Acquisitions & Divestitures Yes 2 Gate 1- Approve project proposal? No 4 End/Suspend or Replan PP/BC No 6 Gate2- Authorize Implement a;on? Yes 8 Priori;ze Project PorRolio Business Leaders, Sponsors Project Idea, Project Guidelines, Project Status, Budgets, Financial Assumptions, Risks, Resources, Results, Benchmark Results, Polices, Procedures, Standards 1 Create Project Proposal 5 Develop Business Case 9 Implement & Manage Project 10 Review Project 11 Realize Benefits 12 Close Project Finance Budgeting Process 3 Incorporate into Budge;ng Process 29
30 INTEGRATING PROJECT & SERVICE MANAGEMENT Source: Figure 3.8, Design, ITIL v3 All rights reserved. 30
31 CONCLUSION It is to the best interest of Organizations, in order to obtain better results and achieve superior quality of services to better integrate service management objectives and culture with those of traditional project/programme management. 31
32 Q & A 32
33 George Papoulias
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