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About this lesson
Portfolios are often comprised of programs which are often comprised of projects; all of which either create or support operations.
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Project, Program, Portfolio, Operations.docx63.7 KB Project, Program, Portfolio, Operations - Solution.docx
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Quick reference
Project, Program, Portfolio, and Operations
Portfolios are often comprised of programs which are often comprised of projects; all of which either create or support operations.
When to use
Projects are seldom done in isolation from other projects or the rest of the organization. Understanding the relationship between the project and the programs, portfolios, and operations that it must interact with will make it easier to identify and manage risk. At the time a project is initiated, the programs, portfolios and operations should be identified.
Instructions
While there may be overlap, in many cases the people managing portfolios are different from the people managing operations. And the people managing programs and projects are different from either of the other two.
Senior Management/Portfolio Management
These individuals are managing many projects, and possibly even other activities such as acquisitions or mergers, in order to implement a strategic objective. They focus on how the projects work together to implement the strategy and position the business for competitive advantage. They are most involved during project selection and then monitor major project milestones in order to ensure the strategic initiatives will be achieved. They are seldom involved in detail management of programs or projects.
Operations Management
These individuals are often the recipients of the program and project results. They need to ensure that their operational requirements and constraints are accounted for in the project results. They usually are not directly involved in the day-to-day program or project management, although they may provide a resource for the Core Team. These people are often conducting the technical reviews during the project to ensure that the project results are working correctly. They are often the stakeholders who will determine when the project is finished.
Program and Project Management
Program and project management are responsible for the planning and execution of the project. For all intents and purposes, programs are just mega-projects, normally comprised of several projects whose results will work in concert with each other. Program managers rely on the project managers to manage the project activity and the program managers focus on the integration and overlap between projects. However, both will use similar project management tools and both will work through their Core Team. They take the strategic imperative from portfolio management and create a solution that is acceptable to operations management.
Definitions
Project: “A temporary endeavor undertaken to create a unique product, service, or result.” PMBOK® Guide
Program: “Related projects,subsidiary programs and project activities that are managed in a coordinated way to obtain benefits not available from managing them individually.” PMBOK® Guide
Portfolio: “Projects, programs, subsidiary portfolios and operations managed as a group to achieve strategic objectives.” PMBOK® Guide
These definitions are taken from the Glossary of the Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) – Sixth Edition, Project Management Institute, Inc., 2017.
Hints & tips
One of the customers of most projects and programs is the operations team. Treat them as important stakeholders.
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