Task: Authorize and Assign Components |
Authorize and assign work within the portfolio that can be successfully executed by the organization.
Disciplines: Product Portfolio Management Tasks Extends: Authorize and Assign Components
Purpose
To provide a control gateway for work that is authorized and released to the organization for execution.
Relationships
Roles | Primary Performer: Portfolio Analyst Portfolio Review Board | Additional Performers: Resource Manager
Inputs | Mandatory: Portfolio Recommendations | Optional: Product Roadmap Technology Roadmap
Outputs | Component Description Components List
Main Description
Provide sufficient control and governance over the process that releases work to the operational teams. One key notion to respect at this stage of managing a portfolio is to ensure that the total estimated work authorized for release correlates with the organization’s ability and capacity to execute that work. One portfolio target frequently used to accomplish this task is the strategic consumption target, which provides an indication of the proportion of total capacity that the executives expect to see used for each work category. The following is an example of strategic consumption targets: 55% of capacity applied toward support work category 25% of capacity applied toward enhancements to existing systems 20% of capacity applied toward strategic projects (or products) The benefits of an effective authorization and assignment of components are two-fold: First, it guarantees an orderly release of work to the operational teams, thus promoting efficient execution and increasing probability of meeting schedule deadlines. Second, it promotes a recognition from the teams that management understands the state of the business at the ground level and is prioritizing work accordingly.
Steps
Maintain list of prioritized work
The result of the portfolio optimization task is a set of recommendations related to the optimal balance of the portfolio, such as inclusion, exclusions, or reprioritization of components. The portfolio review board discusses those recommendations, and then they reach agreement on actions to take in response to the recommendations. Capture the decisions resulting from those discussions in the list of prioritized work.
Formally authorize components
In order to properly control the flow of work to the operational teams, the portfolio review board formally authorizes work, based on the decisions reached in the previous step, and also communicates any changes necessary to the existing work-in-progress. This formal authorization step reflects an important dimension of the portfolio governance framework.
Assign component to responsible lead
The Portfolio Analyst validates availability of resources with the resource managers and assigns components to a responsible lead person by updating the component description with the responsibility assignment.
Key Considerations
Numerous studies and lessons-learned indicate that overloading resources with large work backlogs directly impacts their productivity, which in turn negatively impacts timelines and production deadlines.
Alternatives
The decision to approve the product portfolio means that the selected portfolio scenario -- including the projects in it -- is approved as the basis for resource and financial planning. It also means that the projects or releases that are included in the plan are authorized and formally included in the product portfolio. At the product portfolio level, resources are allocated only to the project or release level, using FTE (full-time employees) for human resources and high-level budget estimates for financial resources.
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