Agenda:
Project, Program & Portfolio
Management
Project characteristics
Project Objectives
Project Phases/Stages and Project Life
Cycle
Project Environment
Program & Portfolio Management
• Program management and portfolio management are both strategic approaches to managing multiple projects
within an organization, but they differ in scope and focus:
• Program Management: Program management involves overseeing a group of related projects that are managed
and coordinated together to achieve strategic objectives. A program is typically larger in scope than a single project
and may include multiple projects that are interdependent or contribute to a common goal. Program managers are
responsible for ensuring that individual projects within the program are aligned with the overall program goals and
objectives. They also manage dependencies between projects, allocate resources, and oversee risks and issues that
affect the program as a whole.
• Portfolio Management: Portfolio management involves managing a collection of projects, programs, and other
work that are grouped together to achieve strategic objectives. A portfolio may include projects and programs that
span different departments or business units within an organization. Portfolio managers are responsible for
selecting and prioritizing projects and programs within the portfolio to ensure that they align with the organization's
strategic goals and deliver maximum value. They also monitor the performance of projects and programs within the
portfolio and make adjustments as needed to ensure that they continue to support the organization's objectives.
• In summary, program management focuses on coordinating related projects to achieve specific strategic objectives,
while portfolio management focuses on managing a collection of projects and programs to ensure that they
collectively support the organization's overall goals and objectives.
Portfolio
• A portfolio in the context of project management typically refers to a collection of projects, programs, and other work
that are grouped together to achieve strategic objectives. Here are some examples of portfolios in different contexts:
• IT Portfolio: A company's IT portfolio may include projects and programs related to software development,
infrastructure upgrades, cybersecurity, and digital transformation initiatives. These projects and programs are grouped
together to support the organization's IT strategy and objectives.
• Construction Portfolio: A construction company's portfolio may include projects related to building new structures,
renovating existing buildings, and infrastructure development. These projects are managed together to optimize
resource allocation and scheduling.
• Financial Portfolio: An investor's financial portfolio may include a variety of investments such as stocks, bonds, real
estate, and mutual funds. These investments are grouped together to achieve the investor's financial goals, such as
wealth accumulation or retirement planning.
• Marketing Portfolio: A marketing department's portfolio may include projects and campaigns related to branding,
advertising, market research, and product launches. These projects are managed together to support the
organization's marketing strategy and objectives.
• These are just a few examples, and portfolios can vary widely depending on the industry and organization. The key is
that portfolios are collections of projects, programs, and other work that are managed together to achieve strategic
objectives.
Program
• Example: ERP Implementation Program
• A manufacturing company decides to implement an Enterprise Resource Planning (ERP) system to streamline its operations and improve efficiency. The ERP implementation involves several
interrelated projects across different departments and functions of the organization. The company establishes a program management office (PMO) to oversee the ERP implementation
program.
• Program Components:
• Project Management: The program includes individual projects such as software selection, system design, data migration, and user training. Each project has its own project manager
responsible for its execution.
• Cross-Functional Teams: The program involves cross-functional teams representing different departments (e.g., manufacturing, finance, HR) to ensure that the ERP system meets the needs of
all stakeholders.
• Governance Structure: The program has a governance structure with a program manager overseeing the entire program, steering committee providing strategic direction, and project
managers reporting progress and issues to the PMO.
• Resource Management: The program manages resources such as budget, manpower, and infrastructure to ensure that they are allocated effectively across projects.
• Risk Management: The program identifies and mitigates risks associated with the ERP implementation, such as technical challenges, resistance to change, and budget overruns.
• Program Objectives:
• Improve operational efficiency by integrating business processes and data.
• Enhance decision-making through real-time access to accurate information.
• Standardize processes across departments and locations.
• Program Outcomes:
• Successful implementation of the ERP system on schedule and within budget.
• Improved business processes and data integrity.
• Increased employee productivity and customer satisfaction.
• In this example, program management is essential for coordinating the various projects and ensuring that they collectively achieve the organization's strategic objectives for implementing the
ERP system.
Project Characteristics
• Project characteristics are the unique attributes or qualities that define a project. These characteristics distinguish a project from other types of work and help to understand its nature and
complexity. Some key project characteristics include:
• Temporary: A project has a defined beginning and end. Once the project's objectives are achieved or the project is terminated, it is considered complete.
• Unique: Projects are unique endeavors that are different from routine operations. They are undertaken to achieve specific goals and objectives.
• Purpose: Every project has a specific purpose or objective that defines what the project is intended to achieve. This purpose is usually defined in terms of scope, schedule, and budget.
• Cross-functional: Projects often require collaboration across different functional areas or departments within an organization. They involve stakeholders with diverse skills and expertise.
• Uncertainty: Projects are often undertaken in environments characterized by uncertainty. There may be unknown factors or risks that could impact the project's outcome.
• Progressive Elaboration: Project details are developed over time. As the project progresses, more information becomes available, allowing for greater detail in planning and execution.
• Interdependencies: Projects typically have interdependent tasks or activities. The completion of one task may depend on the completion of other tasks.
• Resource Constraints: Projects are often constrained by factors such as time, budget, and resources. Project managers must optimize these constraints to achieve project objectives.
• Risk: Projects involve uncertainty and risk. Project managers must identify, assess, and manage risks to minimize their impact on the project.
• Change: Projects are subject to change. Changes in scope, requirements, or other factors may occur throughout the project lifecycle.
• Understanding these characteristics is essential for effectively managing projects and ensuring their successful completion.
Project Phases/Life Cycle
• Project phases are distinct stages that a project goes through from initiation to completion. Each phase is characterized by specific activities, deliverables, and objectives. The number and
names of phases can vary depending on the project management methodology used, but generally, projects can be broken down into the following phases:
• Initiation: The initiation phase is the starting point of the project. During this phase, the project is defined at a broad level, and the initial scope, objectives, and feasibility are determined.
A project charter is often created to officially authorize the project.
• Planning: The planning phase involves detailed planning and preparation for the project. This includes defining the scope, objectives, deliverables, and timeline of the project. A project
management plan is developed, outlining how the project will be executed, monitored, and controlled.
• Execution: The execution phase is where the project work is carried out. Resources are allocated, and tasks are performed according to the project plan. Communication, quality assurance,
and risk management are key activities during this phase.
• Monitoring and Controlling: The monitoring and controlling phase involves tracking, reviewing, and regulating the progress and performance of the project. Any necessary changes are
identified and addressed to keep the project on track.
• Closure: The closure phase marks the completion of the project. Final deliverables are handed over to the client or stakeholders, and the project is formally closed out. Lessons learned are
documented for future projects.
• Some project management methodologies, such as Agile, may have iterative or overlapping phases, and the phases may be tailored to suit the specific needs of the project. However, the
above phases provide a general framework for understanding the lifecycle of a project.
Project Phases/Life Cycle
• The project life cycle is the series of phases that a project goes through from its initiation to its closure. It provides a framework for understanding how a project is organized and managed.
While specific phases and their names may vary depending on the project management methodology used, the project life cycle generally consists of the following phases:
• Initiation: This is the first phase of the project life cycle, where the project is formally authorized. The project's objectives and scope are defined, and initial planning is conducted to
determine the feasibility of the project.
• Planning: In this phase, the project scope is further defined, and the project plan is developed. This includes defining the project deliverables, creating a schedule, determining resource
requirements, and developing a budget.
• Execution: The execution phase is where the project work is carried out according to the project plan. Resources are allocated, tasks are performed, and project progress is monitored and
controlled.
• Monitoring and Controlling: This phase involves tracking, reviewing, and regulating the progress and performance of the project. Any necessary changes are identified and addressed to
keep the project on track.
• Closure: The closure phase marks the formal completion of the project. Final deliverables are handed over to the client or stakeholders, and the project is closed out. Lessons learned are
documented for future projects.
• The project life cycle provides a structured approach to managing projects, ensuring that key activities are completed in a logical sequence. It helps project managers and teams to plan,
execute, and close projects effectively and efficiently
Project Environment
•
The project environment refers to the external and internal factors that can influence the success of a project. It includes various elements, such as stakeholders, organizational culture,
resources, and external forces, that can impact how a project is planned, executed, monitored, and controlled.
• Key components of the project environment include:
• Stakeholders: Individuals or groups who have an interest in the project, such as project sponsors, team members, customers, and regulators. Managing stakeholder expectations and
communication is essential for project success.
• Organizational Culture: The values, norms, and beliefs that guide behavior within an organization. The project environment must align with the organization's culture to ensure support for
the project.
• Resources: The people, equipment, materials, and budget available for the project. Adequate resources are essential for completing the project on time and within budget.
• External Forces: Factors outside the organization that can impact the project, such as economic conditions, regulatory requirements, market trends, and technological changes.
• Project Constraints: Limitations that can affect the project, such as time, budget, scope, and quality requirements. Managing these constraints is crucial for project success.
• Organizational Structure: The way the organization is structured can impact how projects are managed. For example, a matrix organization may have different project management
challenges than a functional organization.
• Understanding the project environment is essential for project managers to develop an effective project plan, identify potential risks, and adapt to changes as the project progresses. By
carefully managing the project environment, project managers can increase the likelihood of project success.
Project Charter
• A project charter is a formal document that authorizes the start of a project and provides a clear definition of the project's objectives, scope, purpose, and deliverables. It is typically
created during the initiation phase of the project and is used to establish a common understanding of the project among stakeholders.
• Key components of a project charter include:
• Project Overview: A brief description of the project, including its purpose, objectives, and expected outcomes.
• Project Scope: A description of the project scope, including what is included and what is excluded from the project.
• Project Objectives: Specific, measurable, achievable, relevant, and time-bound (SMART) objectives that the project aims to achieve.
• Key Stakeholders: Identification of key stakeholders involved in the project and their roles and responsibilities.
• Project Timeline: A high-level timeline for the project, including key milestones and deadlines.
• Budget: An estimate of the project budget, including costs for resources, materials, and other expenses.
• Risks and Assumptions: Identification of potential risks and assumptions that may impact the project.
• Approval: Signatures from key stakeholders, indicating their approval of the project charter and commitment to the project.
• The project charter is an important document that helps to ensure that all stakeholders have a clear understanding of the project's goals and objectives. It serves as a reference point
throughout the project, helping to guide decision-making and ensure that the project stays on track.
Project Management Expertise
• Application knowledge
• Industry group
• Technical specialty
• Managerial area
• Understanding the project environment
• Cultural, social, political, international, physical
• Management knowledge and skills
• Interpersonal skills
• Communication, influence, leadership, motivation, negotiation and problem solving
Questions?
