What is IT Portfolio Management?

When I ran an executive workshop recently, a senior manager asked me what is IT portfolio management. We need to define portfolio first before getting into portfolio management. A portfolio is a collection of investments that designed for achieving specific strategic goals. I think IT Portfolio management is a dynamic decision making process for aligning investments with the organization goals, balancing risk and return, and maximizing resource allocation. It is a communication tool between IT and business in a common language. More definitions from PM Wiki.