Projects, Programs and Portfolio's

Those of us that live and breathe in the world of project management and business analysis often hear terms like project management, program management and portfolio management being tossed around the project management office.  And certainly anyone tasked with identifying the strategic decision making of an organization are involved with certain aspects of an organizations portfolio of projects and programs.   Projects, programs and portfolio’s all strive for a common purpose -- to deliver benefits to their sponsor organizations by enhancing current capabilities or developing new capabilities for the organization to use.  For those of you who are unfamiliar with these terms or just need a refresher on the exact differences between a project, program or portfolio, feel free to read my brief summary below.

What defines a project?

A project is temporary endeavor undertaken to create a unique product, service or result.  This temporary nature indicates a definite beginning and end.  Every project creates a unique product, service or result.

What defines a program?

A program is a group of related projects managed in a coordinated way to obtain benefits and control not obtained by managing them individually.  All projects within a program are related through a common goal.  If projects have separate goals and are only related by common funding, technology, resources and stakeholders, then these efforts are better managed as a portfolio, rather than a program.

What defines a portfolio?

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 objectives.  A portfolio exists within in an organization and consists of a set of current and planned initiatives, linked to strategic goals and objectives, used to address a unique area of the business.  Therefore, portfolios are ongoing in nature and not temporary like projects and programs are. 

An example of a portfolio would be the development of various product offerings by Apple.  Apple could very well have separate portfolio managers for iPhone, iPod, and iMac product lines, as each of these product lines strive to meet specific strategic objectives for the company.  As we dive deeper into each of these product lines, Apple may develop individual programs for the development of each major release of the iPhone.  Each iPhone product release would consist of individual projects, used to address specific functionality required by that product offering.