What Is a “Project” in Project Management?

So, what exactly does “project” mean in the world of project management?
Generally, a project is a temporary endeavor, with a finite start and end,
that is focused on creating a unique product, service, or result.
Nothing in this definition describes the size or the precise content of a
project—there are projects of every size imaginable in virtually every
industry, and project managers supervise them regardless of these
specifics.

What Does a Project Manager Do?

As project managers, the key parts of the job are to balance the scope of
work—also known as “deliverables”—to meet the project objectives with
the resources that are available within the schedule and allotted budget.
They must do this all while working to ensure the project meets the quality
guidelines required by its customers, which is not an easy task.
Project management is about applying the right tools, techniques, and
processes, in a value-added way, to complete the project successfully. As
we know, the body of project management knowledge is huge, and there
are a number of skills, tools, and techniques available to support project
managers in the delivery of these initiatives. What’s important is to
understand the project, its goals and objectives, and what its challenges
are, and to pick, choose, and use those right parts of project management
accordingly.

What Is a “Program” in Project Management?

In some cases, it’s important that a group of projects is managed in a
coordinated way to ensure that value is achieved. In project management
terms, this collection of projects becomes a program. Like a project, a
program is a temporary organization, so when the related projects are
complete, the program is complete.
The Project Management Institute (PMI) describes program management
in its PMBOK Guide as:
“The application of knowledge and skills to achieve program objectives and
to obtain benefits and control not available by managing related program
components individually.”

What Does a Program Manager Do?

Program management is not simply managing multiple projects—it’s a bit
more strategic than that. The program manager also doesn’t micromanage
those projects; he or she is helping ensure that the right work is moving
between the right projects at the right points in time.
The program manager focuses, throughout the program, on the business
benefits, starting very early at its inception by looking at what benefits can
be realized and then making that happen.
Each project still has a project manager completing the work described
above. The role of the program manager is to ensure that the benefits
intended are met by validating that the correct projects are included in the
program. Any project not providing value to the benefits is then realigned or
removed from the program.
The program manager is responsible for overseeing the dependencies
between projects and creating program-level plans to accomplish this.
For example, a master schedule is created to manage the dependencies
between projects; a program risk management plan is created to manage
program-level risks; and a program communication plan establishes how
information will flow in the program. The program manager is then not
managing the projects, but rather providing the oversight needed to ensure
that the pieces of each project are completed effectively and efficiently in
order to meet the needs of the other projects.
The program manager is focused on benefits realization—rather, knowing
the benefits that can be accomplished from this collection of projects and
focusing on achieving them. The program manager is also working to
manage organizational change and ensure that the benefits are not only
transitioned to operations, but that processes are in place to sustain these
benefits.
Since the role of program management is to ensure that projects are
aligned to the business strategy, as the strategy changes, the program
manager also needs to communicate with the project teams so that they
are aware of the changes and what needs to be done about them.

What Is a “Portfolio” in Project Management?

A portfolio is a collection of projects and programs that are managed as a
group to achieve strategic objectives. An organization may have one
portfolio, which would then consist of all projects, programs, and
operational work within the company. It may also establish several
portfolios for project selection and ongoing investment decisions.
According to PMI and its PMBOK Guide, a portfolio includes, “Projects,
programs, other portfolios, and operations managed as a group to achieve
strategic objectives.”
Organizations need to decide which projects are the right ones to focus on.
Often times, they are limited by how many projects can be done based on
the capacity within an organization, begging the question, “Are we doing
the right projects?”

What Does a Portfolio Manager Do?

Portfolio management is the centralized management of one or more
portfolios to achieve an organization’s strategic objectives.
Within organizations, the reality is often that resources are limited, whether
it’s dollars, people, space, or equipment. Based on the organization’s
strategy, there are several projects and programs that could be done; it just
needs to be decided which are the right ones and in what order they should
be completed.
It’s critical to look not only at programs and projects at the individual level,
but also holistically to know how these align with the organization’s
overarching goals.
At the same time, it’s important to consider a level of balance in the
portfolio. The organization “needs to keep the lights on,” while also
developing new opportunities. Some risk needs to be taken, but the
portfolio should not be so risky that everything could be lost within a period
of time.
Beyond prioritizing and selecting projects and programs, portfolio
management is balancing the portfolio so that the right projects and
programs are selected and implemented. Monitoring and controlling is key
to the process, since portfolio composition is not a one-time decision.
Evaluations should be conducted in some regular cadence. It may be
decided that a project’s priority becomes lower and others move into its
place. A project could be temporarily moved out of the portfolio or
permanently moved out of what that portfolio entails.
This is done to ensure projects align with an organization’s strategies,
goals, and objectives. It may also be the case that, as we get into
performing a project or program, we find it no longer aligns, causing a
reprioritization of all projects and programs in the portfolio.

Project vs. Program vs. Portfolio Managers

While the project manager is managing multiple tasks within a project, the
program manager is coordinating between related projects within a
program, in order to determine which projects are working towards the
same or similar goals, and which may be dependent upon others. Portfolio
managers, on the other hand, are managing all (or multiple) programs
within an organization, ensuring that all programs are working towards
fulfilling the strategic objectives of the organization.
The easiest way to explain the difference in how project, program, and
portfolio managers work is: A project manager works to deliver a project
efficiently and reliably. They are responsible for the day-to-day
management that brings a project to fruition. Program managers are more
concerned with strategic alignment: Understanding what individual project
managers are doing and enabling effective communication between them
in order to understand where projects are and in order to provide support
where necessary. Portfolio managers, meanwhile, coordinate between
various programs in order to ensure that things stay on track and that the
organization is meeting its overarching strategic initiatives. They are often
tasked with asking “Why?” (i.e. why is a particular project being proposed,
why is certain work being done, etc.).

How Project, Program, and Portfolio Management All Work Together

To be effective, it is essential that the project managers, program
managers, and portfolio managers within an organization all understand
the roles that each other plays in bringing about the successful completion
of a strategic goal. Without this understanding, there may be unnecessary
confusion and miscommunication that can derail an initiative before it even
begins.
From a high level, projects are part of programs and portfolios, and
programs are part of portfolios. Each is different, but most effective when
managed as one.
If you’re considering a career in project management, whether at the
project, program, or portfolio level, building the skills necessary for each
role is critical to your success.