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

3.4. THE BUSINESS–IT ALIGNMENT

The organization chart for the vast majority of companies shows a distinct box for the information technology/information systems group. The criteria for employees within IT/IS are typically based on knowledge of specific technologies and systems or the ability to perform a specific type of IT role. Business expertise, strategic planning, trending and forecasting, metrics management, and interpersonal communication skills are not typical core competencies of the IT/IS group.

Business and IT have become inextricably linked and must collaborate closely, share complementary approaches, and jointly provide continuous insight and improvement to the company. Simply allocating a few resources to bridge business and IT is insufficient in optimizing alignment between business and IT.

Business management should own the IT portfolio because IT leveraged and used effectively to support the business maximizes value. There are also examples where co-ownership of the IT portfolio between business and IT management has been successful. Whether owned by business management or jointly controlled with IT, having business make decisions in selecting or sunsetting investments in the IT portfolio can be a major change for companies, and the loss of control may not be well received by some individuals in IT. Many within the IT organization will not view business managers as having the requisite training, skills, or expertise to make decisions in the best interest of the ...