Application Portfolio Management (APM) Best Practices

Overview

One of the most common causes of APM initiative failure is the absence of a shared, organizational understanding of what APM actually is. Without a clear definition, different stakeholders bring incompatible expectations to the initiative. Technology teams treat it as an asset inventory exercise. Finance treats it as a cost reduction program. Business leaders treat it as an IT concern that does not require their involvement. When these expectations collide, the initiative loses direction and momentum before it has a chance to deliver value.

Best Practice

Establish and communicate a clear, organization-wide definition of what APM is, what it is not, and what it is designed to accomplish. APM is the organizational discipline of understanding, governing, optimizing, and strategically evolving the application portfolio in service of business goals. It is not a one-time inventory exercise. It is not purely a cost reduction initiative. It is not an IT-only concern. It is not a tool or a platform. It is an ongoing management discipline that requires participation from business and technology stakeholders at all levels of the organization. Accompany the definition with concrete examples from the organization’s own environment that illustrate the difference between APM as a discipline and the activities it produces.

Benefit(s)

A shared definition of APM creates the organizational alignment needed for the initiative to succeed. Stakeholders understand what they are being asked to contribute and why. Leaders understand what they are investing in and what outcomes they should expect. The initiative is protected from the scope creep and misaligned expectations that derail most APM programs before they deliver value. The time invested in establishing definitional clarity at the outset is consistently among the highest-return investments an APM program makes.