Dec
9
Written by:
host
12/9/2009 12:50 PM
Lately I have been working more in a project portfolio planning capacity than as a developer. This is an eye opening experience, getting to know how business views IT projects, and learning some of the financial aspects as well.
One thing that is confounding, is how difficult portfolio planning can be. Much time can be spent on planning future projects, as involved with an organizations budgets. The standard portfolio planning I have seen involves forecasting what projects will be worked on based on best estimates (any agilist knows this means bad estimates). These plans forecast up to 5 years in advance, knowing full well that changes will be made the following year.
This planning takes up a lot of time, which I would propose wastes a lot of time. So let us step back and understand first why there is a need for the IT Project portfolio planning process.
First, the Portfolio planning helps the business plan include what are usually variable IT costs and put those in their budgets for next year. That way they can understand what percentage these costs will take up of their budget.
Second, the plan helps understand staffing or additional money needs for the next year. Larger businesses crave a smooth variablity curve here.
Third, the business can get an overall look at projects that are going to be worked on, and validate this against the overall business goal. These are some not all of the reasons that larger organizations do IT project portfolio planning.
The portfolio planning process assumed here, includes providers of services having their list of projects that they are planning to work on. Non - IT business unit members who want new IT projects must do planning on these future projects as well. This is all done at a particular time in the year (when the budget is being worked on). There is a lot of give and take between IT and other parts of the organization about when and how the projects will get done, and of course with funding.
So assuming these are the main needs the portfolio planning process is meeting, can we lean up this process? I would like to see the portfolio process to be a flow rather than a once a year large planning process. This seems doable, and I believe by using a Kanban board it is possible.
I will attempt to clarify how the kanban board would work in this situation in my next post. For now, I would love to hear feedback on different portfolio planning processes.
24 comment(s) so far...
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