A project may be managed in three separate scenarios: as a stand-alone project (outside of a portfolio or program), within a program, or within a portfolio. Project managers interact with portfolio and
program managers when a project is within a program or portfolio. For example, multiple projects may be needed to accomplish a set of goals and objectives for an organization. In those situations, projects may be grouped together into a program.
A program is defined as a group of related projects, subsidiary programs, and program activities managed in a coordinated manner to obtain benefits not available from managing them individually. Programs are not large projects.
A very large project may be referred to as a megaproject. As a guideline, megaprojects cost US$1billion or more, affect 1 million or more people, and run for years.
A portfolio is defined as projects, programs, subsidiary portfolios, and operations managed as a group to achieve strategic objectives. Some organizations may employ the use of a project portfolio to effectively manage multiple programs and projects that are underway at any given time. The figure below illustrates an example of how portfolios, programs, projects, and operations are related in a specific situation:
Program management and portfolio management differ from project management in their life cycles, activities,objectives, focus, and benefits. However, portfolios, programs, projects, and operations often engage with the same stakeholders and may need to use the same resources (see Figure above), which may result in a conflict in the organization.
This type of a situation increases the need for coordination within the organization through the use of portfolio, program, and project management to achieve a workable balance in the organization. The above figure illustrates a sample portfolio structure indicating relationships between the programs, projects, shared resources, and stakeholders.
The portfolio components are grouped together in order to facilitate the effective governance and management of the work that helps to achieve organizational strategies and priorities. Organizational and portfolio planning impact the components by means of prioritization based on risk, funding, and other considerations. The portfolio view allows organizations to see how the strategic goals are reflected in the portfolio. This portfolio view also enables the implementation and coordination of appropriate portfolio, program, and project governance.
This coordinated governance allows authorized allocation of human, financial, and physical resources based on expected performance and benefits. Thus from an organizational perspective :
This is end of today's post, in the next post we shall discuss about basics of Program management.
program managers when a project is within a program or portfolio. For example, multiple projects may be needed to accomplish a set of goals and objectives for an organization. In those situations, projects may be grouped together into a program.
A program is defined as a group of related projects, subsidiary programs, and program activities managed in a coordinated manner to obtain benefits not available from managing them individually. Programs are not large projects.
A very large project may be referred to as a megaproject. As a guideline, megaprojects cost US$1billion or more, affect 1 million or more people, and run for years.
A portfolio is defined as projects, programs, subsidiary portfolios, and operations managed as a group to achieve strategic objectives. Some organizations may employ the use of a project portfolio to effectively manage multiple programs and projects that are underway at any given time. The figure below illustrates an example of how portfolios, programs, projects, and operations are related in a specific situation:
This type of a situation increases the need for coordination within the organization through the use of portfolio, program, and project management to achieve a workable balance in the organization. The above figure illustrates a sample portfolio structure indicating relationships between the programs, projects, shared resources, and stakeholders.
The portfolio components are grouped together in order to facilitate the effective governance and management of the work that helps to achieve organizational strategies and priorities. Organizational and portfolio planning impact the components by means of prioritization based on risk, funding, and other considerations. The portfolio view allows organizations to see how the strategic goals are reflected in the portfolio. This portfolio view also enables the implementation and coordination of appropriate portfolio, program, and project governance.
This coordinated governance allows authorized allocation of human, financial, and physical resources based on expected performance and benefits. Thus from an organizational perspective :
- Program and project management focus on doing programs and projects the “right” way; and
- Portfolio management focuses on doing the “right” programs and projects.
This is end of today's post, in the next post we shall discuss about basics of Program management.
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