Understanding projects, programs and portfolios

Question 1

What are the characteristics of program management?

A program is a collection of related projects, subsidiary programs, and activities that are managed in a coordinated manner to obtain benefits not available by managing the projects individually.

Answer 1

• Aligning projects with strategic goals
• Improving project management processes: cost, schedule, quality, risk
• Collaborating with stakeholders to deliver strategic value
• Centrally managing related threads
• Producing common deliverables.

Question 2

What are the characteristics of portfolio management?

A portfolio is a collection of projects or programs and other work grouped together to facilitate effective management to meet strategic business objectives.

Answer 2

• Building, sustaining and advancing strategic objectives
• Adapting (or terminating) efforts in response to changing priorities (external and internal)
• Managing and sharing financial and human resources across the portfolio (centralise and optimise)
• Maximising the benefits of the portfolio to the organisation.

Question 3

What role does a steering committee play in portfolio management?

Answer 3

A steering committee is responsible for adapting, changing, and managing the portfolio, including making decisions about terminating projects that are not delivering value.

Question 4

What functions would portfolio managers be most concerned about?

Answer 4

• Growth
• Profitability
• New products

Question 5

Difference between projects, programs and portfolios

Answer 5

• Projects: unique, temporary
• Programs: Multi-project
• Portfolios: Multi-project and business objectives

Question 6

How does scope vary from projects, programs and portfolios?

SCOPE: It defines what is included and what is excluded from the project, essentially outlining the work that needs to be done to achieve the project’s objectives.

Answer 6

• Projects: Defined specification, cost and schedule
• Programs: Multi-project coordinated benefits
• Portfolios: Implements corporate strategy

Question 7

How does planning differ across projects, programs and portfolios?

Answer 7

• Projects: Progressive elaboration
• Programs: Program plan
• Portfolios: Business plan

Question 8

Program plan Vs. Business plan

Answer 8

• Program plan: strategic document that outlines how multiple related projects will be managed and coordinated to achieve specific benefits.
• Business plan: a comprehensive document that outlines a company’s goals, strategies, and the means to achieve them.

Question 9

How does success vary across projects, prorams and portfolios?

Answer 9

• Projects: Stakeholder objectives (stakeholders define value)
• Programs: Multi-project objectives
• Portfolios: Business objectives