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

5.3. STAGE 2: PLANNING

In stage 1, the focus is on planning the overall portfolio management initiative and setting it up for success. Based on input from the game plan, a portfolio plan is developed to define the investment strategy and the structure of the IT portfolio. During stage 2, the subportfolios are determined. An overall portfolio categorization scheme is developed, and the target percentage of resource allocation within each category is agreed upon. A personal investment portfolio analog would note the distinction between bonds, various types of equities, and real estate, and would make a guesstimate of how much will be invested in each category. An overall portfolio strategy and the categories into which investments will be split are determined (e.g., run, grow, and transform; core, nondiscretionary, discretionary, growth, and venture; or discovery, project, and asset investments). The goals and target investment mixes across these categories are set. Exhibit 5.16 outlines the specific tasksand activities involved in developing the planning stage. The critical activities of the tasks shown in Exhibit 5.16 that are addressed in this section include:

• Plan investment strategy

• Plan portfolio structure

• Plan individual subportfolios

Plan Investment Strategy

The planning of investment strategy for the IT portfolio begins with the determination of investment categories. Establishing these categories provides defined buckets for IT investments and reflects the company's business ...