IT Portfolio Management Step-by-Step: Unlocking the Business Value of Technology

GOVERNING THE PROCESS

The PMO used powerful incentives to ensure the business units would collaborate closely with IT in selecting only the highest value proposals for implementation. Xcel Energy employs a zero-based yearly budgeting process that places.

EVOLVING END-TO-END PROJECT MANAGEMENT AND APPROVAL PROCESS AT EXCEL ENERGY WITH GOVERNANCE PROCESS TOUCH POINTS

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IT project budgets under the purview of Business Systems. These are allocated to mandated legal and regulatory projects first, then to other ideas/projects under consideration for the next year based on their expected EVA. Proposed ideas/projects stand on their merits, with budget going to those expected to deliver the highest value.

Even after an idea/project is budgeted for the coming year, business units must still prove its value through the PMO process. If they cannot, the budget is made available to other opportunities. Business units expense all costs associated with idea development in stage 1 and stage 2 from their operating budgets. When a business unit approves an idea at the end of the planning stage (Exhibit D, Gate 2.) to prepare a business case, up to 20% of the total estimated project budget may be approved to fund the business case stage and prepare the business case. This funding is administered by Business Systems from its central capital budget, and is drawn ...