Project, Program and Portfolio - Relationship and Management

We all now know what a Project is. Atleast a high level understanding of what a Project is. Lets see more on that to understand what could be a project. Then we are going to see what a Program is and then what a portfolio is. 

A Project

Every Project will create a unique product, service or results. The word 'unique' is very important when we define something as a project. 

A Project can create 

• A component which can be a part of another item or an item itself
• A utility to perform a service
• A result of a finding viz. a document or thesis

Examples for Project 

• Developing a new product or service (launching a satellite to broaden telecommunication)
• Business Process Re-Engineering (Staffing structure re-structuring in an organization)
• Developing a new IT application or modifying it.
• Constructing a building (Infrastructure Projects like buildings, bridges, roads etc)

Hope this has given a bigger picture of what Projects could be? 

If not, write to ashok.k@live.in

A Program 

Now what is a program? A Program is simply a collection of projects. Got it ?

It is managing a group of related projects. Say Maruti Suzuki is developing a new model car. It has plants in many places in India that develop different components of the car. Say, the engine (hope it is bought ready made from another company) is manufactured separately, body is built in a different place, the other components viz brake, brake shoe, wheels, upholstery,  A/C all are done in different workshops in different places and are all assembled and brought made as a Product. Now, the components development can be considered as different projects and everything managed together is considered as a Program. 

A Portfolio

A portfolio is focused on achieving the business objectives of organizations. Shortly a collection of Programs or Projects grouped to facilitate effective management to meet the business objective. Say for Reliance Communication, they have their Internet services, mobile services, their satellite operations, maintaining the webworlds etc are their activities and they are totally grouped under one portfolio which is Reliance communications or Rcom. You can never ignore different Industrial projects like infrastructure, oil and gas, medical, finance, education, power, coal etc under a government. 

Thanks for the gentleman who posted this picture in www.auctusit.com

Project Manager	Program Manager
Targets the Project Objectives Resource Management Takes care of the scope, quality, cost, schedule etc for the projects	Targets the Business Objectives Manages resources sharing across Projects Manages the methodologies, standards, risks, dependencies among projects

Leave a comment if you want to add any points to this.