In August 2013, I spoke at the Project Management Institute (PMI), and the International Legal Technical Association (ILTA) conference in Las Vegas. The audience and a panel I was on debated about the value of the PMO. We were discussing how the PMO helps organizations enhance workplace productivity. And, as the conversation went on, we began to realize that people were confused about which PMO we were discussing. Was it the project PMO, was the program PMO, or the portfolio PMO? Because those three are very different environments in which to operate, and they all have different governance processes.
Regardless of which PMO we were discussing, we all agreed on one thing, all of these environments enhance workforce productivity. The value of project portfolio management is in its ability to move the needle with accomplishing goals and objectives in a consistent, reliable, and predictable manner. It's how value gets delivered to an organization.
No matter which role you play, we all leverage these processes to deliver value to our companies and improve workplace productivity. So, the ideal audience for mastering the concepts of project, program, and portfolio management should include:
- Decision-makers and other executives who participate in the selection of products and services that will enhance the capabilities of their organization.
- Consultants and strategic planners who are responsible for the development of the organization's strategic roadmap, long-range planning, business planning, or short-term goal development will have a repeatable and consistent process that will align to strategic objectives.
- Business owners who need to understand how to allocate limited resources to achieve their organization's strategic objectives and goals will have the visibility to address project synchronization and reduce resource bottlenecks.
- Project and program managers who need a foundational understanding of the principles, processes, and procedures of project portfolio management.
So, if portfolio management is the apex of the project management ladder, then project management, is like starting at the base camp. And, as you ascend the mountain to the summit, it requires multiple activities which encompasses program management. Below are three comprehensive definitions for each of these areas, starting with portfolio management, program management, and then project management.
Portfolio Management
- Business processes, usually conducted at the highest level within an organization that decides; which projects, programs, and other initiatives will be undertaken in a given period. The criteria for selecting their actions; and the active management of these initiatives through then life cycle to ensure that benefits will be realized, including their termination as required.
Program Management
- Coordinated management of a related series of projects over time, to accomplish broad business goals to which the individual projects contribute, including benefits realization, stakeholder management, and program governance.
Project Management
- Application of knowledge, skills, tools, and techniques to project activities to meet or exceed stakeholder needs and expectations from a project.
Dictionary of Project Management Terms, 3rd edition.
In summary, the value of project programs and portfolios is that they provide the structure which enhances the workplace productivity and align with your overall goals and objectives.
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Sincerely,
