In this article we will discuss the activities involved and the relationship between portfolio management, program management, project management and organizational project management.
In addition, we will look at the role projects have in strategic planning and finally we will discuss the project management office and its importance.
Portfolios, programs and projects are all related and aligned to organizational strategy. In the same manner, portfolio management, program management and project management all contribute to the achievement of the strategic goals of the organization in different ways.
The various activities of these three areas all relate to the organizational project management (OPM). Organizational project management is the systematic management of projects, programs, and portfolios in alignment with the achievement of strategic goals. The PMI concept of organizational project management is based on the idea that there is a correlation between an organization’s capabilities in project management, program management, and portfolio management and the organization’s effectiveness in implementing strategy.
A program is a group of projects that are similar in scope, activities, and have similar subprograms. The purpose of a program is to manage the projects in a coordinated way.
Not all projects conducted within the organization will fall into the same program. however, programs will always have projects.
Program management involves providing the application of knowledge, skills, tools and techniques to the program in order for program requirements to be met.
Program management focuses on the co-operation between the projects to determine the optimal approach to managing them. Usually these projects are interdependent, for example having the same resource requirements, governance structure and similar strategic organizational direction along with this they may face similar issues and change management considerations.
Portfolio Management
The portfolio includes all programs, projects, and subprograms that meet a strategic objective of the organization. Programs and projects do not need to be related in order to be in the portfolio, the only requirement is to contribute the same overall strategic objective(s) of the organization. Portfolio management is the centralized management of one or more portfolios that will help the organization achieve its overall strategic objectives, it is concerned with all projects and programs, part of the management process is to ensure that all projects and programs have the proper resource allocation and that all programs and projects are aligned and support the overall strategic objectives of the organization.
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