Did you know about the fascinating "3 P's" of Project Management? Each one is distinct yet closely related to the others: Projects, Programs, and Portfolios.
1. Projects are temporary endeavors taken on by companies or organizations. These could involve creating a new product, service, or achieving a specific result.2. Programs are groups of related projects managed together as a cohesive unit.
3. Portfolios encompass various programs and projects within an organization. These can be related or unrelated, but they align with the company's overall strategy.
So, essentially, multiple projects make up programs, and multiple programs constitute portfolios.
The Project Management Institute (PMI) defines project management as "Project management is the application of knowledge, skills, tools, and techniques to project activities to meet the project requirements."
For Project Managers, the key task is to strike a balance between project scope (deliverables), available resources, time, and budget. Moreover, they must ensure the project meets the desired quality standards set by the customers.
According to the PMI, program management involves “The application of knowledge and skills to achieve program objectives and to obtain benefits and control not available by managing related program components individually.”
Program Managers place strong emphasis on business benefits throughout the program's lifecycle. They start early, assessing which benefits can be realized and then work towards making them a reality. Their role is to oversee project dependencies and create comprehensive program-level plans. This ensures that projects align with the organization's business strategy, and they communicate any changes effectively to the project teams.
According to PMI, a portfolio summarizes, “Projects, programs, other portfolios, and operations managed as a group to achieve strategic objectives.”
Portfolio Management is about centrally managing one or more portfolios to accomplish the organization's strategic objectives. It goes beyond focusing solely on individual projects and programs. Instead, it takes a holistic approach, ensuring all initiatives align with the organization's overarching goals. This includes prioritizing and selecting the right projects and programs while maintaining a balance within the portfolio. Regular monitoring and controlling are crucial to adapt to changing circumstances. Projects might be reprioritized, moved in or out of the portfolio, all while staying in sync with the company's vision.
In summary, embracing the "3 P's" - Projects, Programs, and Portfolios - in Project Management can lead to powerful outcomes. They offer a comprehensive approach to drive innovation, achieve business objectives, and maintain strategic alignment. When combined with the principles of the "3 P's," organizations can confidently steer towards a bright and prosperous future.