Understand ServiceNow’s 2 SPMs

PostedMay 19, 2024

UpdatedMay 19, 2024

Understand ServiceNow’s 2 SPMs as an important foundation for your enterprise, knowing the difference between Strategic Portfolio Management (SPM) and Service Portfolio Management (SPM) is crucial, depending on which part of the business you come from.

Both SPMs aim to improve efficiency and effectiveness, use performance metrics, and ensure alignment with business objectives. However, they focus on different aspects of the business.

Strategic Portfolio Management (SPM):

First and foremost, Strategic Portfolio Management is about aligning projects with strategic goals.
Additionally, it focuses on optimizing resources to achieve these goals.
Moreover, it ensures that all projects are contributing towards the long-term objectives of the organization.

Service Portfolio Management (SPM):

On the other hand, Service Portfolio Management is about managing the lifecycle of IT services.
Furthermore, it ensures that these services meet business needs effectively.
Consequently, it involves overseeing the development, deployment, and retirement of services to align with business requirements.

Understanding the distinction between these two types of SPM will help you utilize ServiceNow more effectively. By doing so, you can align your efforts with the appropriate strategies to enhance overall business performance.

Comparing to Understand ServiceNow’s 2 SPMs Strategic and Service Portfolio

Aspect	Strategic Portfolio Management	Service Portfolio Management
Primary Objective	Align enterprise projects and programs with strategic goals.	Manage IT services throughout their lifecycle to deliver value.
Key Focus	Optimize resources and improve decision-making for strategic alignment.	Ensure efficient and effective IT service delivery and support.
Main Components	Strategic Portfolio Management: Agile Development Application Portfolio Management Project Portfolio Management (PPM) Financial Management Demand Management Resource Management SPM KPIs and Performance Analytics	IT Service Portfolio Management Change Management Incident Management Interaction Management Knowledge Management On-Call Scheduling Request Management Service Level Management Service Operations Workspace Service Owner Workspace Problem Management Release Management
Project & Program Focus	Evaluate and manage Strategic Portfolio and projects to align with strategic goals.	Manage IT Service Portfolio lifecycle delivery and ownership to SLAs.
Resource Allocation	Optimize resource allocation across projects and programs.	Allocate resources to support IT service delivery and management.
Performance Measurement	Use advanced analytics to monitor and report on project performance and outcomes.	Monitor service levels and performance to meet standards.
Decision-Making	Leverage data-driven insights to prioritize projects and optimize resources.	Make informed decisions to manage service levels, incidents, problems, changes, and releases.
Lifecycle Management	Focus on the lifecycle of projects from idea initiation to completion.	Manage the entire lifecycle of IT services from inception to retirement.
Alignment with Business	Ensure every project and program contributes to the overall business strategy.	Align IT services with business needs to support and enhance operations.
Differences	SPM targets projects and programs for strategic goals.	Service Portfolio Management focuses on IT services’ lifecycle and value.

Understanding the Intersection of Strategic Portfolio Management (SPM) and Service Portfolio Management (SPM)

To leverage ServiceNow’s capabilities effectively, it’s crucial to understand how Strategic Portfolio Management (SPM) and Service Portfolio Management (SPM) correlate and support one another. Although they focus on different aspects of the business, their processes intersect and enhance overall business performance.

Strategic Portfolio Management (SPM)

First and foremost, Strategic Portfolio Management aligns projects with strategic goals.
Additionally, it focuses on optimizing resources to achieve these goals.
Moreover, it ensures that all projects contribute to the organization’s long-term objectives.

Service Portfolio Management (SPM)

Conversely, Service Portfolio Management manages the lifecycle of IT services.
Furthermore, it ensures that these services meet business needs effectively.
This involves overseeing the development, deployment, and retirement of services to align with business requirements.

Intersection and Support

Alignment with Strategic Goals

To begin with, Strategic Portfolio Management aligns projects with strategic goals, which directly influences the Service Portfolio Management process. For instance, if a strategic goal aims to enhance customer satisfaction, the services managed through Service Portfolio Management must support this objective.
Additionally, Service Portfolio Management provides the services needed to execute these strategic projects. Thus, both processes ensure that services and projects align with overarching business goals.

Resource Optimization

Moreover, Strategic Portfolio Management optimizes resources by prioritizing projects that align with strategic goals. This optimization ensures that resources are allocated efficiently.
Consequently, Service Portfolio Management benefits from this resource optimization. It requires adequate resources to develop and manage IT services effectively. This mutual support ensures that both projects and services have the necessary resources for success.

Lifecycle Management

Furthermore, Service Portfolio Management manages the entire lifecycle of IT services, from development to retirement. This lifecycle management is crucial for maintaining the quality and relevance of services.
Similarly, Strategic Portfolio Management relies on this lifecycle management. It ensures that the projects it oversees are supported by reliable and up-to-date services. For example, retiring outdated services and introducing new ones can directly impact the success of strategic projects.

Performance Metrics

Both SPMs, in addition, use performance metrics to evaluate success and identify areas for improvement. Strategic Portfolio Management uses metrics to assess the performance of projects in achieving strategic goals.
Likewise, Service Portfolio Management uses metrics to evaluate the effectiveness and efficiency of IT services. By sharing and analyzing these metrics, both processes can identify areas where improvements are needed, ensuring continuous alignment and optimization.

Feedback and Continuous Improvement

Additionally, Service Portfolio Management provides feedback on the performance and effectiveness of IT services. This feedback can inform Strategic Portfolio Management. For instance, if a particular service underperforms, this information can adjust strategic projects.
Similarly, Strategic Portfolio Management can provide feedback on project outcomes. This feedback informs Service Portfolio Management about necessary service adjustments. This continuous feedback loop ensures that both projects and services evolve to meet business needs effectively.

Getting Started with Strategic Portfolio Management:

This begins with understanding an approach to Digital Portfolio Management as a unified workspace to view and collectively manage all solutions — services, applications, and products. Strategic Portfolio Management (SPM) may seem daunting, but by following these simple steps, you can get started smoothly.

Digital Portfolio Leaders set the stage for the Basics

Digital Portfolio Management (DPM) enables solution owners to manage the full life cycle of services, service offerings, business applications, or application services. DPM provides a single view to assess the health and performance of owned or relied-upon solutions. — Understand ServiceNow’s 2 SPMs- the **Digital Portfolio Management (DPM)** enables solution owners to manage the full life cycle of services, service offerings, business applications, or application services. DPM provides a single view to assess the health and performance of owned or relied-upon solutions.

First of all, they help the organization to understand what SPM is. Essentially, it’s about ensuring your projects, programs, and services align with your organization’s strategic goals. The main aim is to make sure every initiative contributes to long-term objectives.

Define Your Objectives

First, understand what your organization aims to achieve in the next few years. These strategic goals are your roadmap to success. For instance, your goals might include improving customer satisfaction, increasing market share, or enhancing operational efficiency.

Identify Existing Projects and Services

Here’s a simple checklist to help you get started with Strategic Portfolio Management. This will guide you through assessing where you are, what you’re doing, and what you need to do to get there, using plenty of transition words to ensure clarity and smooth progress.

1. Assess Where We Are

Understand Strategic Goals

First of all, identify what your organization aims to achieve in the next few years (e.g., improving customer satisfaction, increasing market share, enhancing operational efficiency).

Identify Current Projects and Services

Next, make a comprehensive list of all current projects and services.
Additionally, gather information about each project’s purpose, cost, resources, and current status.

Understand What We’re Doing

Then, evaluate how each project supports your strategic goals.
For instance, focus on projects that contribute to goals like customer satisfaction, market share, and operational efficiency.

Categorize Projects

After that, group projects based on their impact on strategic goals (high impact, medium impact, low impact).

Prioritize Projects

Consequently, prioritize projects that have the greatest impact on your strategic goals.
For example, give higher priority to projects that significantly contribute to key goals.

2. Evaluate Project Value, align Roadmaps, Risks, and Benefits

Now, assess each project’s potential value, risks, and benefits.
Furthermore, use tools like SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) for a clear understanding.

3. Plan and Develop Strategy and Resources

With priorities set, outline timelines, milestones, and key deliverables for prioritized projects.
Therefore, ensure everyone understands the sequence and timing of each project.

Allocate Resources

Next, budget for high-priority projects.
Moreover, assign personnel and ensure necessary tools and technologies are available.

Set Up Governance Processes

After that, establish clear processes and policies to manage and monitor projects.
Consequently, ensure decisions are made consistently and projects stay aligned with strategic goals.

Monitor Progress and Adjust

As you implement your projects, continuously track progress using metrics and key performance indicators (KPIs).
Additionally, be ready to make adjustments if something isn’t working as planned.

Communicate Regularly

Finally, keep your team and stakeholders informed about progress, challenges, and successes.
Moreover, regular communication ensures alignment and commitment to strategic goals.

4. Categorize and Prioritize Implement Governance

After that, categorize your initiatives based on their alignment with your strategic goals. Are they high-priority projects that directly support your objectives? Or are they lower-priority, perhaps nice-to-have projects? Prioritizing helps you allocate resources effectively.

Evaluate and Assess

Now, evaluate each initiative. Assess their potential value, risks, and benefits. Tools like SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) can be helpful. This step ensures you focus on initiatives that offer the best return on investment.

Implement Governance

Then, establish a governance framework. Set up processes and policies to manage and monitor your portfolio. Governance ensures consistent decision-making and that initiatives stay aligned with strategic goals.

Monitor and Adjust

As you implement your portfolio, continuously monitor progress. Use metrics and key performance indicators (KPIs) to track performance. If something isn’t working as planned, be ready to make adjustments. Flexibility is key to adapting to changes and new opportunities.

Communicate and Engage

Finally, communicate regularly with all stakeholders. Keep everyone informed about progress, challenges, and successes. Regular engagement ensures everyone is aligned and committed to the strategic goals.