The Portfolio Optimization Consulting Service (Introducing the Value Realization Services)
Portfolio Optimization is one of the services that Microsoft Enterprise Architects conduct with businesses as part of the Microsoft Value Realization Framework. It’s one of the Value Realization services that we mentioned in our earlier post, Welcome to the Value Realization Blog.
Through this service we help validate and prioritize initiatives and investments, and/or help the customer create and prioritize strategies.
This is where we get to marry a unique blend of technological and business expertise.
Overview of the Portfolio Optimization Consulting Service
While it is called a Portfolio Optimization service, the focus is really on “Initiative” prioritization. We help the customer prioritize their portfolio of initiatives to maximize their value while driving strategic change.
In this service, we recommend changes to and/or reprioritization of the client’s portfolio of initiatives based on a clear understanding of the client’s business intent and ability to execute leading to near term value realization (NPV,IRR, Payback) as well as longer-term improvement of return on IT assets.
The Portfolio Optimization service assesses the client’s Business and IT portfolios including business capabilities, IT services, applications, technologies, and existing program/project portfolio to help execute the current business strategy, and accelerate business value.
Objectives
When a Microsoft Enterprise Architect performs the Portfolio Optimization Consulting Service with a business:
- We provide a holistic perspective of how Microsoft devices and services support specific business capabilities
- We identify specific initiatives that have the best opportunity for value realization and strategic business impact
- We identify which client’s initiatives would benefit most from Microsoft’s engagement
Activities:
- Develop and apply a set of prioritization criteria in line with the customer’s strategic business objectives.
- Create the evaluation methodology and schema. The customer provides input on the evaluation system and approach (business priorities, typical, evaluation criteria used across the business)
- Generate and scope the short-list of initiatives. The customer provides input on their Programs and initiatives in-flight.
- Create the evaluations per initiative. Evaluation is focused solely on the short-list of initiatives. Encourage and drive active participation by business leaders and IT leaders during rationalization and prioritization discussions.
- Jointly with the customer, determine the initiatives that we should pursue.
Outcome
The customer invests in strategic programs of change that enhance the current and future value of the IT Portfolio.
Deliverables
- Portfolio Optimization Report. The Portfolio Prioritization Report is the main deliverable of this service. It is intended to provide detailed analysis of the client portfolio of programs and projects and provides program prioritization recommendations.
- Program Charters. For initiative(s) where Microsoft could add significant value and where its engagement is recommended, Program Charter(s) are provided to the Program Steering Team and Program Management Office at the client. A Program Charter is intended to provide a vision for the program as well as a clear definition of program objectives, key stakeholders and main components.
Critical Questions
As part of the Portfolio Optimization consulting service, we aim to answer the following critical questions:
- Who are the key stakeholders related to each program?
- What existing materials exist that describe the program intent, plans and execution state?
- What is the future capability vision and is it shared by the key program stakeholders?
- What are the current capabilities and what is the gap and can we help fill the gaps?
- Do stakeholders agree with our validation of this program?
Ability to Execute vs. Time to Value vs. Impact
By getting agreement to the value of a given initiative, the time to value, and the ability to execute, the customer gets a clear picture of which initiatives to focus on in order to accelerate business value and maximize their investments.
