Summary on Project Management Basics (Part 2)
Today we continue with some more basics on what Project Management entails and I’m going to summarize some points related to Program and Portfolio Management based on PMI’s (Project Management Institute) definitions. These are more higher level entities that are managed and usually consists of other projects and other portfolios.
What is Program Management?
So PMI defines program management as the application of knowledge, skills and principles to a program to achieve program objectives, benefits and control not achievable otherwise at project level. Program Management focuses on the inter-dependencies between projects and projects at program level. Some actions related to these inter-dependencies may include: Aligning with organizational or strategic direction affects the program and projects goals and objects, Managing program risks that may impact multiple projects in the program and assuring benefits realization from the program and component projects.
What are portfolios and what does Portfolio Management Entails?
A portfolio is defined as projects, programs, subsidiary portfolios, and operations managed as a group to achieve strategic objectives.
Portfolio Management is defined as the centralized management of one or more portfolios to achieve strategic objectives.
When you manage portfolios you usually aim to: Guide organizational investment decisions, select the optimal mix of programs and projects to meet strategic objectives and provide decision-making transparency, to name a few.
That’s it for today! That was a brief explanation what Program and Portfolio Management means. Next I will explain a bit about the management of operations and other organizational aspects of project management.