5. Authorize

Final IS/IT Portfolio Managment



•supports decision-making and resource allocation.

•maximize return, in terms of economical or non-economical factors,

•creates a link between business strategies and project selection

•helps in focusing to the right projects.

•helps communicating objectives in the organization, both vertically and horizontally.


•Near the end of the four cycles method.

•Often used in the authorization phase.

•It is more of an end deliverable then a method to get to the end deliverable.

•Will be made after a thorough value and risk analysis of the projects in the concept portfolio and hopefully before management coordinates its structure based on the projects.


•The management will find numerous parameters, dimensions and variables which influence the decision making. Valuation of projects has been done in on of the previous phases of the four cycle method. The difficulty here lies in maximizing the value of the complete portfolio itself and creating balance

Keep in mind: different projects require different planning strategies


The portfolio worked itself up the chain of command to the upper regions of senior management originating from lower- and middle-management.

The portfolio however, as a means of communication, carries information again to the lower regions of the company.


IS/IT portfolio management is a critical senior management challenge. Not only that, but the topic is also related to the senior technology people. Combined they can find the right mixture of projects to maximize return, maintain competitiveness and efficiently allocate scarce resources.7


Why Do You Need To Invest In Project Portfolio Management?

IT Portfolio Management

•“Guest Lecture” Video by David Swensen about Portfolio Managment


Drucker, P.F., Managing for Results, 1964

Drucker, P.F., Management: Tasks, Responsibilities, Practices, 1974

Cooper, R.G., Edgett, S.J., Kleinschmidt, E.J., Portfolio Management – fundamental to new product success, paper nr. 12, 2001

Dunst, K.H., Portfolio Management, Konzeption für die strategische Unternehmensplanung, 2003

Salmela, H., Spil, T.A.M., Dynamic and emergent information systems strategy formulation and implementation, IT Management Select, volume 9, 3, 2003

Ward, J., Peppard, J. Strategic Planning for Information Systems, 2002