Application Portfolio Management (APM) Best Practices

Overview

Without a consistent assessment framework, rationalization decisions are made subjectively - based on the preferences, priorities, and blind spots of whoever is making them at a given moment. Different assessors evaluate the same applications using incompatible criteria and reach contradictory conclusions. The portfolio rationalization process loses credibility because stakeholders cannot see the logic behind the recommendations, and application owners whose applications are recommended for retirement cannot understand or contest the basis for the decision in any meaningful way.

Best Practice

Define a consistent, documented application assessment framework that specifies: the dimensions on which every application will be assessed; the specific criteria used to evaluate each dimension; the scoring approach for each dimension; and the rationalization disposition that corresponds to each combination of scores. The framework should be applied consistently to every application in the portfolio, producing assessment results that are comparable across applications and defensible to stakeholders at every organizational level. Review and update the framework periodically to ensure it reflects current organizational priorities, current architectural standards, and the lessons learned from previous assessment cycles.

Benefit(s)

A consistent assessment framework produces rationalization recommendations that are credible, comparable, and defensible. Stakeholders can see the logic behind every recommendation. Application owners can understand how their applications were assessed and what would need to change for the recommendation to change. Leadership can compare applications across the portfolio using a common standard rather than competing subjective impressions. The portfolio rationalization process earns the organizational trust that it needs to produce decisions that are actually acted upon.