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

Summary

This 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.