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If we think of SPM as a dynamic and ongoing process set, it should include the following work methods (also shown in Figure 5.17):
Figure 5.17 Service Portfolio process
Define
Begin with collecting information from all existing services as well as every proposed service. Every proposed service would include those in a conceptual phase. Namely, all services the organization would do if it had unlimited resources, capabilities and time. This documentation exercise is to understand the opportunity cost s of the existing portfolio. If a service provider understands what it cannot do, then it is better able to assess if it should keep doing what it is doing or reallocate its resource s and capabilities.
The next step in the process set, Analyse, should be well defined prior to beginning this phase. If the organization does not understand what analysis it will perform, it is unlikely to know the right data to collect. Data collection exercises are usually disruptive and should be as streamlined as possible.
The cyclic nature of the SPM process set means that this phase not only creates an initial inventory of services, but also validates the data on a recurring basis. Different portfolios will have different refresh cycles. Some cycles will be triggered by a particular event or business trend. For example, a Merger and Acquisition event triggers a portfolio re-examination.
Every service in the portfolio should include a business case. A business case is a model of what a service is expected to achieve. It is the justification for pursuing a course of action to meet stated organizational goals. As such, it acts as the link back to service strategy and funding. It is the assessment of a service investment in terms of potential benefits and the resources and capabilities required to provision and maintain it.
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