5 Key Best Practices for Implementing ServiceNow Strategic Portfolio Management

In today's fast-paced business environment, effective Project Portfolio management is crucial for aligning projects and initiatives with organizational goals. ServiceNow's SPM solution offers a comprehensive suite of tools to help organizations manage their portfolios efficiently. However, successful implementation requires careful planning and adherence to best practices. This blog post will explore some of the best practices for implementing ServiceNow SPM to ensure a smooth and effective transition. 

Achieve SPM Success with Clear Objectives & Goals 

Defining clear objectives and goals is the foundation of a successful SPM implementation. Without a clear understanding of what you want to achieve, measuring success or making informed decisions is challenging. Plan to implement SPM in phases and start with an MVP. It could be enabling Portfolio Management capabilities – looking at building your department’s portfolio of programs and projects, defining goals, budget, priorities, and performing simulations to get the closest picture of what you should include in the AOP (Annual Operating Plan). 

Imagine a company that wants to improve its project delivery times. By setting a clear objective to reduce project delivery times by 20% within the next year, the company can align its SPM implementation to support this goal.

This might involve prioritizing projects that streamline processes, investing in tools that enhance team collaboration, and regularly monitoring progress against this objective.

Additionally, the company can set intermediate milestones, such as achieving a 10% reduction within six months, to track progress and make necessary adjustments.

Reduce Project Risk by Involving Stakeholders Early 

Engaging stakeholders early in the implementation process ensures that the solution meets the needs of all departments and fosters a sense of ownership. Stakeholders should include primarily IT leaders, PMO, product managers, and decision makers (directors & above). They can provide valuable insights and help identify potential challenges. Regular communication and collaboration with stakeholders can also help in managing expectations and gaining their support. 

83% of projects that invest in planning stakeholder management are successful, compared to only 32% of projects that do not. 
- APM 

Consider a scenario where a company is implementing ServiceNow SPM to improve resource allocation.

By involving project managers, IT teams, and department heads from the beginning, the company can gather input on current pain points and desired features. This collaborative approach helps in designing a solution that addresses the specific needs of each department, leading to higher adoption rates and better overall outcomes.

For instance, project managers might highlight the need for real-time resource tracking, while IT teams could emphasize the importance of integration with existing systems. 

Minimize Technical Complexity with Out-of-the-Box (OOB) Features 

ServiceNow SPM offers a range of out-of-the-box features designed to streamline portfolio management. Leveraging these features can save time and reduce the complexity of the implementation process. Out-of-the-box features are also regularly updated by ServiceNow, ensuring you benefit from the latest enhancements and best practices. 

Key Native Features and Modules That Drive Results: 

• Demand Management: Structure incoming work through standardized request forms, scoring logic, and approval workflows, making it easier to evaluate and prioritize initiatives. 
• Project and Portfolio Oversight: Manage the full project lifecycle using ready-to-use tools for tracking timelines, deliverables, and portfolio performance across programs. 
• Resource Optimization: Forecast and assign resources effectively using native capacity planning features that match skills and availability with project needs. 
• Strategic Roadmaps: Visualize project timelines and initiative alignment with business objectives using drag-and-drop roadmap tools for planning and communication. 
• Scenario Comparison: Assess different investment paths by comparing cost, value, and resource impacts across alternative strategies, helping prioritize the right efforts. 
• OKRs (Objectives & Key Results): Align daily work with strategic goals using configurable OKRs that track progress across teams and departments. 
• Business Capability Mapping: Leverage capability-based planning to align strategic goals with organizational strengths, enabling smarter prioritization. 
• Technology Portfolio Management (TPM): Gain visibility into your tech stack and lifecycle, helping reduce redundancy and improve architectural alignment with business needs. 

A company looking to improve its project tracking capabilities can utilize ServiceNow's out-of-the-box project management dashboards.

These dashboards provide real-time visibility into project status, resource utilization, and potential risks. By using these pre-built features, the company can quickly gain insights without the need for extensive customization, allowing them to focus on strategic decision-making.

Additionally, the company can take advantage of ServiceNow's built-in reporting tools to generate detailed performance reports and identify areas for improvement. 

Automation investments can yield a return on investment (ROI) between 30% and 200% in the first year for organizations, primarily through reduced labor costs and improved efficiency.  

- Profile Tree

Fast-Track Strategic Objectives by Monitoring Progress 

Once the implementation is underway, continuously monitor and measure progress against your defined goals. Use ServiceNow's reporting and analytics capabilities to track key performance indicators (KPIs) and identify areas for improvement. Regularly review and adjust your implementation strategy based on feedback and performance data. 

ServiceNow SPM enables organizations to stay aligned and agile by connecting operational insights with broader business objectives: 

• Leverage KPI dashboards and visual heat maps to pinpoint top-performing initiatives and identify projects that may need recalibration. 
• Utilize real-time dashboards to monitor progress, resource distribution, and project health across all teams and departments. 
• Navigate seamlessly from executive-level overviews to detailed task-level metrics, enabling full transparency into project execution. 
• Set KPI thresholds and automated alerts to quickly surface risks and performance issues—empowering teams to act before they escalate. 

Businesses that set and track their goals hit some of their goals 96 percent of the time, and 41 percent hit all of their goals.

- Censuswide

A company that has implemented ServiceNow SPM to improve project visibility can set up dashboards to monitor KPIs such as project completion rates, resource utilization, and budget adherence.

By regularly reviewing these metrics, the company can identify trends and areas for improvement. For instance, if resource utilization is consistently low, the company might investigate the root causes and implement strategies to optimize resource allocation.

Additionally, conducting periodic reviews with stakeholders can help ensure that the implementation remains aligned with organizational goals. 

Enhance Onboarding through Comprehensive Training 

Training is crucial for ensuring that users can effectively utilize the new system. Comprehensive training programs should cover both the technical aspects of using ServiceNow SPM and the strategic importance of portfolio management. Training should be tailored to the needs of different user groups and delivered in various formats, such as workshops, online courses, and hands-on sessions. 

A company implementing ServiceNow SPM can organize training sessions for different user groups, such as project managers, team members, and executives.

For project managers, training might focus on advanced features like resource allocation and risk management. For team members, the training could cover basic navigation and task management. By tailoring the training to the needs of each group, the company can ensure that all users are comfortable with the new system and can leverage its full potential.

Additionally, providing ongoing support and refresher courses can help users stay up to date with new features and best practices. 

 
Implementing ServiceNow SPM can significantly enhance your organization's portfolio management capabilities, leading to better alignment with strategic goals and improved project outcomes. By focusing on defining clear objectives, engaging stakeholders early, leveraging out-of-the-box features, providing comprehensive training, and monitoring progress, you can ensure a successful implementation that delivers lasting value. Remember, the key to success lies in careful planning, stakeholder engagement, and a commitment to continuous improvement.