Programs, Projects and Portfolios

The terms Project Management and Program Management are often used inter-changeably, but this is incorrect. The definitions of Programs and Projects are quite different.  Similarly, the words Program and Portfolio are also often used inter-changeably. This is also not correct, as indicated by the definitions below.

 Program

 The PMBOK[1] definition of a program is “A group of related projects managed in a coordinated way to obtain benefits and control not available from managing them individually. Programs may include elements of work outside the scope of the discrete projects of the program.”

Another definition of program is the total scope of work which will deliver specific business outcomes, and as such has a supporting business case.  Programs are designed to deliver specific business initiatives (or groups of

How the organisation plans to deliver a full program of work is via one or more projects each with a defined scope.  It is important to recognise that each project of a program may not have any underlying business case, as they are means of delivering the program scope.  For example a program may be broken into 3 projects each being delivered in parallel.  The program of work of which they are part has a business case, but the individual projects may only be of value to the organisation if the whole program is completed, i.e., the individual projects do not have stand alone business cases.

Project

The PMBOK[2] definition of a project is “A temporary endeavour undertaken to create a unique product or service.” Another definition is a project is a specific parcel of work which may contribute toward the delivery of a program.  If there are multiple projects contained within a program, the projects do not have a business case in their own right.  It is the program to which they belong that has a business case.

 Portfolio

The PMBOK[3] definition of a portfolio is “A collection of projects or programs and other work that are grouped together to facilitate effective management of that work to meet strategic business objectives. The projects or programs of the portfolio may not necessarily be interdependent or directly related.”

 A similar definition is that portfolios are groupings of projects and or programs intended for some strategic, reporting or other management purpose.

 Both definitions imply that one project or program may be a member of multiple portfolios.

[1] PMBOK – Project Management Institute, A Guide to the Project Management Body of Knowledge