How to invest in business aligned IT

Keeping IT synchronized with the corporate business strategy can be much easier if CEOs apply the principles of financial portfolio management to IT investments. This can in turn make a business a lot more easy to run and grow and push forwards as a business may strive to grow. Yet, as most tech leaders know, it’s not as simple as it sounds. Synchronization between IT and business strategy is not the natural process; it is a complex process and a process which requires a clear degree of planning.

IT organizations may be aligned now, but you’re likely to go out of alignment because strategies and technology change. Organizations face a never ending quest to keep IT and business strategy aligned. A good way to stay in alignment is to apply the proven principles of financial portfolio management to IT investments. Categorizing IT investments in this manner allows an organization to monitor how its investment mix aligns with its business strategy.

The sophistication with which IT organizations apply portfolio management practices varies widely. Some organizations focus on it once a year during the planning season, using it primarily as an annual prioritization tool. Others attempt to embed it in ongoing business processes. Many vendors seek to sell software and consulting to help organizations accomplish that goal. Regardless of the sophistication level, any organization attempting to apply portfolio management practices must take the following basic steps. The IT organization should not take these steps in isolation; it is best to be able to call on as many members of staff as possible.

Regardless of the sophistication level, any organization attempting to apply portfolio IT management practices must take the following basic steps. The IT organization should not take these steps in isolation and they need to be sure to have staff to oversee these elements in a timely overall manner.