What is Project Portfolio Management? Project VS Program VS Project Portfoilo Manager - AIMS UK

AIMS Education, UK

3 Aug 201605:02

Summary

TLDRThis script discusses the distinctions and management approaches of projects, programs, and portfolios. Projects are specific with defined deliverables, managed by project managers who focus on minimizing change and detailed planning. Programs encompass multiple related projects, aiming for collective benefits, and are overseen by program managers who expect and adapt to change. Portfolios consist of various programs and projects that align with business goals, managed by portfolio managers who monitor the overall performance and strategic alignment. Success metrics vary: projects are judged by budget, schedule, and product delivery; programs by return on investment and benefits; and portfolios by their aggregate performance.

Takeaways

🔍 A program is a coordinated group of related projects, sub-projects, and work aimed at obtaining collective benefits and controls.
📈 Program management focuses on resolving resource constraints, conflicts, and aligning strategic direction for both projects and program goals.
🚀 An example of program management is the development of a communication satellite system, which includes multiple interrelated projects like design, construction, integration, and launch.
📚 Portfolios consist of programs and projects that support specific business goals, and they may not be interdependent or directly related.
🏢 Portfolio management involves selecting and managing a mix of projects and programs to maximize an organization's return on investment and align with strategic objectives.
📊 Projects have a narrow scope with specific deliverables, while programs have a wider scope that can change to meet organizational benefits, and portfolios have a business scope that changes with strategic goals.
🛠️ Project managers aim to minimize change, program managers expect and embrace change, and portfolio managers monitor changes in the broader environment.
📋 Project managers conduct detailed planning for project delivery, program managers create high-level plans and provide guidance, and portfolio managers maintain processes and communication for the portfolio.
🔍 Project managers monitor and control project tasks, program managers monitor projects through governance structures, and portfolio managers monitor aggregate performance and value indicators.
🏆 Project success is measured by budget, schedule, and product delivery, program success by return on investment and benefit delivery, and portfolio success by the aggregate performance of its components.

Q & A

What is the primary difference between managing a program and managing individual projects?
-A program is a coordinated group of related projects and work efforts managed to obtain benefits and controls not available from managing them individually, while individual projects are managed separately without the need for coordination with other projects.
Why is aligning strategic direction important in program management?
-Aligning strategic direction is crucial in program management because it ensures that the projects within the program support the overarching goals and objectives of the organization, thereby maximizing the collective benefits.
Can you provide an example of how program management might be applied in the context of a communication satellite system?
-In the context of a communication satellite system, program management could involve coordinating projects such as satellite and ground station design, construction, system integration, and satellite launch, with each project having its own manager reporting to a head project manager responsible for the entire program.
How are portfolios different from programs in terms of the projects they contain?
-Portfolios are collections of programs and projects that support a specific business goal, and the projects or programs within a portfolio are not necessarily interdependent or directly related, unlike programs where projects are related and managed together.
What role does a portfolio play in an organization's strategic objectives?
-A portfolio serves as a true measure of an organization's intent, direction, and progress by identifying key objectives according to business priorities, thus aligning with the strategic goals of the organization.
How does the scope of work differ between projects, programs, and portfolios?
-Projects have a narrow scope with specific deliverables, programs have a wide scope that may change to meet organizational benefit expectations, and portfolios have a business scope that changes with the strategic goals of the organization.
What is the approach of project managers towards change?
-Project managers try to keep change to a minimum, focusing on delivering the project within the predefined scope, budget, and schedule.
How do program managers handle change compared to project managers?
-Program managers expect and embrace change, as it is often necessary to meet the evolving benefit expectations of the organization, and they provide high-level plans and guidance to projects.
What are the key responsibilities of a portfolio manager in terms of process and communication?
-Portfolio managers are responsible for creating and maintaining necessary processes and communication relative to the aggregate portfolio, ensuring that the overall performance and strategic alignment of the portfolio components are monitored and managed.
How is success measured for projects, programs, and portfolios?
-Project success is measured by budget, schedule, and product delivery as per specification. Program success is measured in terms of return on investment, new capabilities, and benefit delivery. Portfolio success is measured in terms of the aggregate performance of portfolio components.
Who do program managers typically manage, and how does this differ from the role of a portfolio manager?
-Program managers typically manage project managers, whereas portfolio managers may manage or coordinate with portfolio management staff, focusing on the strategic alignment and performance of the entire portfolio.

Outlines

00:00

📈 Program Management Overview

Program management involves coordinating multiple related projects, sub-projects, and other work to achieve collective benefits and controls. It addresses resource constraints, aligns strategic direction, and ensures project and program goals are met. An example given is the development of a communication satellite system, which includes various projects like design, construction, integration, and launch, each with its own manager reporting to a head project manager. The collective management of these projects realizes benefits and controls in a coordinated manner.

💼 Portfolio Management Insights

Portfolio management is the practice of overseeing a collection of programs and projects that support a specific business goal. Unlike programs, the projects or programs in a portfolio may not be interdependent. The example of an infrastructure firm is used to illustrate how portfolios are assembled to maximize return on investment, with different projects grouped into programs based on their sector, such as power or water, forming part of the enterprise portfolio. Portfolio management is about aligning with business priorities and monitoring the aggregate performance and value indicators.

🔍 Comparison of Project, Program, and Portfolio Management

This section contrasts project, program, and portfolio management. Projects have a narrow scope with specific deliverables, programs have a wider scope that can evolve to meet organizational benefits, and portfolios have a business scope that changes with strategic goals. Project managers minimize change and focus on detailed planning, program managers expect and adapt to change, and portfolio managers monitor broad environmental changes. The planning level, team management, and success metrics differ across the three, with each role requiring distinct skills and approaches to achieve their respective objectives.

Mindmap

Keywords

💡Program

A program is defined as a group of related projects, sub-projects, and other work that is managed in a coordinated way to obtain benefits and control that is not available for managing them individually. In the context of the video, a program is larger in scope than a single project and involves coordinating multiple projects to achieve collective benefits. An example from the script is the new communication satellite system, which includes several projects such as designing, constructing, integrating, and launching the satellite.

💡Program Management

Program management is the process of managing a group of related projects to achieve collective benefits and controls. It focuses on resolving resource constraints and conflicts that affect projects within the program and aligning strategic direction. The video script illustrates this by describing how a head project manager oversees various sub-projects, ensuring they are coordinated to achieve the overall program objectives.

💡Resource Constraints

Resource constraints refer to limitations in the availability of resources such as time, money, or personnel that can affect the execution of projects within a program. The video script mentions that program management focuses on resolving these constraints, which is crucial for the successful coordination and completion of the program's projects.

💡Strategic Direction

Strategic direction is the alignment of a program's goals and objectives with the broader objectives of the organization. It ensures that the program's efforts are in line with the organization's vision and strategy. The script highlights the importance of aligning strategic direction for both projects and programs within an organization.

💡Portfolio

A portfolio is a collection of programs and projects that support a specific business goal. The projects or programs in a portfolio are not necessarily interdependent or directly related. The video script uses the example of an infrastructure firm's portfolio, which includes a mix of projects related to various sectors like oil, power, water, roads, rail, and airports.

💡Portfolio Management

Portfolio management is the process of selecting, prioritizing, and managing a collection of programs and projects to achieve specific business goals. It involves making decisions about the allocation of resources and monitoring the performance of the portfolio components. The script explains that portfolio management is about identifying key objectives according to business priorities and managing them as a whole.

💡Project Scope

Project scope refers to the work that is required to complete a project, including the specific deliverables and the boundaries of the project. The video script contrasts project scope with program and portfolio scope, noting that projects have a narrow scope with specific deliverables, whereas programs and portfolios have wider scopes that may change to meet organizational goals.

💡Change Management

Change management is the process of addressing and incorporating changes that occur during the execution of projects, programs, and portfolios. The script mentions that project managers try to minimize change, program managers expect and embrace change, and portfolio managers continually monitor changes in the broad environment, indicating the different approaches to change management at each level.

💡Governance Structures

Governance structures are the frameworks, policies, and processes that ensure the proper management and oversight of projects, programs, and portfolios. The video script explains that program managers monitor projects and ongoing work through governance structures, which provide the necessary oversight and control to ensure that the program's objectives are met.

💡Performance Indicators

Performance indicators are the metrics used to measure the success and effectiveness of projects, programs, and portfolios. The script outlines different measures of success for each: projects are measured by budget, schedule, and product delivery, programs by return on investment and benefit delivery, and portfolios by the aggregate performance of their components.

💡Leadership

Leadership in the context of the video refers to the ability to guide, influence, and inspire others towards achieving the goals of a project, program, or portfolio. The script describes project managers as team players, program managers as leaders providing vision, and portfolio managers as leaders providing insight and synthesis, highlighting the different leadership roles at each level of management.

Highlights

A program is a coordinated group of related projects, sub-projects, and work managed to obtain collective benefits.

Program management involves resolving resource constraints and conflicts across projects within the program.

Strategic alignment is crucial for program management to ensure project and program goals are consistent.

An example of program management is the development of a new communication satellite system involving multiple projects.

Each sub-project in a program has its own manager who reports to a head project manager overseeing the entire program.

Programs are managed together to realize collective benefits and controls.

Portfolios are collections of programs and projects that support specific business goals.

Projects or programs in a portfolio are not necessarily interdependent or directly related.

Portfolio management identifies key objectives according to business priorities.

An infrastructure firm's portfolio may include a mix of projects related to various sectors like oil, power, water, roads, rail, and airports.

Programs within a portfolio, such as a power program, are integral components of the enterprise portfolio.

Projects have a narrow scope with specific deliverables, while programs have a wider scope that may change to meet organizational benefits.

Portfolios have a business scope that changes with the strategic goals of the organization.

Project managers aim to minimize change, while program managers expect and embrace change.

Portfolio managers continually monitor changes in the broad environment.

Project managers conduct detailed planning for product delivery, whereas program managers create high-level plans and provide guidance.

Portfolio managers create and maintain processes and communication relative to the aggregate portfolio.

Project managers monitor and control project tasks, while program managers monitor through governance structures.

Portfolio managers monitor aggregate performance and value indicators.

Project managers are team players, program managers are leaders providing vision, and portfolio managers provide insight and synthesis.

Project managers manage teams of technicians and specialists, while program managers manage project managers.

Project success is measured by budget, schedule, and product delivery, program success by return on investment and benefit delivery, and portfolio success by the aggregate performance of its components.