Portfolio Management (ITIL 4)

Parent Process Reference Framework: ITIL 4

Service Value Stream Activities

Highly impacted Service Value System(SVS) Activities:

• Plan

Description

The purpose of the portfolio management practice is to ensure that the organization has the right mix of programmes, projects, products, and services to execute the organization’s strategy within its funding and resource constraints. 

Portfolio management is a coordinated collection of strategic decisions that together enable the most effective balance of organizational change and business as usual. Portfolio management achieves this through the following activities: 

• Developing and applying a systematic framework to define and deliver a portfolio of products, services, programmes, and projects in support of specific strategies and objectives. 

• Clearly defining products and services and linking them to the achievement of agreed outcomes, thus ensuring that all activities in the service value chain are aligned with value definition and the related CSFs. 
• Evaluating and prioritizing incoming product, service, or project proposals and other change initiatives, based on resource constraints, existing commitments, and the organization’s strategy and objectives. 
• Implementing a strategic investment appraisal and decision-making process based on an understanding of the value, costs, risks, resource constraints, inter-dependencies, and impact on existing business activities. 
• Analysing and tracking investments based on the value of products, services, programmes, and projects to the organization and its customers. 
• Monitoring the performance of the overall portfolio and proposing adjustments in response to any changes in organizational priorities. 

• Reviewing the portfolios in terms of progress, outcomes, costs, risk, benefits, and strategic contribution.