Is a group of related projects managed in a coordinated fashion in support of the portfolio?

Relationships Among Portfolio Management, Program Management, Project Management, and Organizational Project Management

Organizational Project Management OPM is a strategy execution framework utilizing project, program, and portfolio management as well as organizational enabling practices to consistently and predictably deliver organizational strategy producing better performance, better results, and a sustainable competitive advantage.

Portfolio, program, and project management are aligned with or driven by organizational strategies. Conversely, portfolio, program, and project management differ in the way each contributes to the achievement of strategic goals. Portfolio management aligns with organizational strategies by selecting the right programs or projects, prioritizing the work, and providing the needed resources, whereas program management harmonizes its projects and program components and controls interdependencies in order to realize specified benefits. Project management develops and implements plans to achieve a specific scope that is driven by the objectives of the program or portfolio it is subjected to and, ultimately, to organizational strategies. OPM advances organizational capability by linking project, program, and portfolio management principles and practices with organizational enablers (e.g. structural, cultural, technological, and human resource practices) to support strategic goals. An organization measures its capabilities, then plans and implements improvements towards the systematic achievement of best practices.

comparative overview of project program and portfolio management

Program Management

A program is defined as a group of related projects, subprograms, and program activities managed in a coordinated way to obtain benefits not available from managing them individually. Programs may include elements of related work outside the scope of the discrete projects in the program. A project may or may not be part of a program but a program will always have projects. Program management is the application of knowledge, skills, tools, and techniques to a program in order to meet the program requirements and to obtain benefits and control not available by managing projects individually. Projects within a program are related through the common outcome or collective capability. If the relationship between projects is only that of a shared client, seller, technology, or resource, the effort should be managed as a portfolio of projects rather than as a program.

Program management focuses on the project interdependencies and helps to determine the optimal approach for managing them. Actions related to these interdependencies may include:
– Resolving resource constraints and/or conflicts that affect multiple projects within the program,
– Aligning organizational/strategic direction that affects project and program goals and objectives
– Resolving issues and change management within a shared governance structure.

An example of a program is a new communications satellite system with projects for design of the satellite and the ground stations, the construction of each, the integration of the system, and the launch of the satellite.

Portfolio Management

A portfolio refers to projects, programs, sub-portfolios, and operations managed as a group to achieve strategic objectives. The projects or programs of the portfolio may not necessarily be interdependent or directly related. For example, an infrastructure firm that has the strategic objective of “maximizing the return on its investments” may put together a portfolio that includes a mix of projects in oil and gas, power, water, roads, rail, and airports. From this mix, the firm may choose to manage related projects as one program. Portfolio management refers to the centralized management of one or more portfolios to achieve strategic objectives. Portfolio management focuses on ensuring that projects and programs are reviewed to prioritize resource allocation, and that the management of the portfolio is consistent with and aligned to organizational strategies.

Projects and Strategic Planning

Projects are often utilized as a means of directly or indirectly achieving objectives within an organization’s strategic plan. Projects are typically authorized as a result of one or more of the following strategic considerations: Market demand, Strategic opportunity/business need, Social need, Environmental consideration, Customer request, Technological advance, Legal requirement.

Project Management Office

A project management office (PMO) is a management structure that standardizes the project-related governance processes and facilitates the sharing of resources, methodologies, tools, and techniques. The responsibilities of a PMO can range from providing project management support functions to actually being responsible for the direct management of one or more projects. There are several types of PMO structures in organizations, each varying in the degree of control and influence they have on projects within the organization, such as:

Supportive PMOs provide a consultative role to projects by supplying templates, best practices, training, access to information and lessons learned from other projects. This type of PMO serves as a project repository. The degree of control provided by the PMO is low.

Controlling PMOs provide support and require compliance through various means. Compliance may involve adopting project management frameworks or methodologies, using specific templates, forms and tools, or conformance to governance. The degree of control provided by the PMO is moderate.

Directive PMOs take control of the projects by directly managing the projects. The degree of control provided by the PMO is high.

The PMO integrates data and information from corporate strategic projects and evaluates how higher level strategic objectives are being fulfilled. The PMO is the natural liaison between the organization’s portfolios, programs, projects, and the corporate measurement systems (e.g. balanced scorecard). The projects supported or administered by the PMO may not be related, other than by being managed together. The specific form, function, and structure of a PMO are dependent upon the needs of the organization that it supports. A PMO may have the authority to act as an integral stakeholder and a key decision maker throughout the life of each project, to make recommendations, or to terminate projects or take other actions, as required, to remain aligned with the business objectives. In addition, the PMO may be involved in the selection, management, and deployment of shared or dedicated project resources.

A primary function of a PMO is to support project managers in a variety of ways which may include:
– Managing shared resources across all projects administered by the PMO.
– Identifying and developing project management methodology, best practices, and standards.
– Coaching, mentoring, training, and oversight.
– Monitoring compliance with project management standards, policies, procedures, templates by project audits.
– Developing and managing project policies, procedures, templates, and other shared documentation (organizational process assets)
– Coordinating communication across projects.

Project managers and PMOs pursue different objectives and, as such, are driven by different requirements. All of these efforts are aligned with the strategic needs of the organization. Differences between the role of project managers and a PMO may include the following:
– The project manager focuses on the specified project objectives, while the PMO manages major program scope changes, which may be seen as potential opportunities to better achieve business objectives.
– The project manager controls the assigned project resources to best meet project objectives, while the PMO optimizes the use of shared organizational resources across all projects.
– The project manager manages the constraints (scope, schedule, cost, quality, etc.) of the individual projects, while the PMO manages the methodologies, standards, overall risks/opportunities, metrics, and interdependencies among projects at the enterprise level.

Source: PMBOK 5th Edition

What is the term for a group of related projects managed in a coordinated fashion?

What is portfolio of projects in project management?

How are projects related to portfolios?

How does project management relate to portfolio?