A common trend in modern project management thinking is to separate the total management of an organisations projects into 3 areas of management; portfolio management, programme management and project management.
The following table includes extracts from the Project Management Institute's definitions (PMI), along with some simplistic alternative wording to highlight a key aspect of each of portfolio, programme and project management.
| PMI Definition | Ed's somewhat simplistic thought.... | |
| Portfolio | A collection of projects and programmes and other work grouped together to facilitate effective management of that work to meet strategic business objectives. | Selecting the right set of projects to deliver the business strategy. |
| Programme | A group of related projects managed in a coordinated way to obtain benefits and control that are otherwise unavailable when managed individually. | Taking the outputs from a collection of projects, and making sure they deliver the outcomes and benefits to the organisation. |
| Project | A temporary endeavor to create a unique product, service or result. | Creating the outputs or deliverable's. |
The English developed approach Managing Successful Programmes (MSP) provides a nice alternative wording (that is very similar still). Projects deliver outputs that leads to new capabilities, that when transitioned into the business, leads to new outcomes. Programmes help these added outcomes deliver the benefits for the business.
A key point though is that projects deliver outputs (product, service or result), while programme management is about ensuring those outputs lead to the benefits that the business was expecting.
Now, in real organisations, the dividing line between projects, programmes and portfolios is not always as clear as the textbooks suggest, but it is worth remembering that portfolio management, programme management and project management each requires different approaches and skills, irrespective of what you call them, and the three areas combined are best in ensuring the organisation receives the strategic outcomes and benefits it was expecting when embarking on its portfolio of projects.
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Copyright 2015 Edward Hall. All rights reserved.
Last revised 2 July 2015.