The relationship among portfolios, programs, and projects is such that a portfolio refers to a collection of projects, programs, subportfolios, and operations managed as a group to achieve strategic objectives. Programs are grouped within a portfolio and are comprised of subprograms, projects, or other work that are managed in a coordinated fashion in support of the portfolio. Individual projects that are either within or outside of a program are still considered part of a portfolio. Although the projects or programs within the portfolio may not necessarily be interdependent or directly related, they are linked to the organization’s strategic plan by means of the organization’s portfolio.

Project management is the application of knowledge, skills, tools, and techniques to project activities to meet the project requirements. Project management is accomplished through the appropriate application and integration of the 47 logically grouped project management processes, which are categorized into five Process Groups. These five Process Groups are:
• Initiating,
• Planning,
• Executing,
• Monitoring and Controlling, and
• Closing

Managing a project typically includes, but is not limited to:
• Identifying requirements;
• Addressing the various needs, concerns, and expectations of the stakeholders in planning and executing the project;
• Setting up, maintaining, and carrying out communications among stakeholders that are active, effective, and collaborative in nature;
• Managing stakeholders towards meeting project requirements and creating project deliverables;
• Balancing the competing project constraints, which include, but are not limited to:
○ Scope,
○ Quality,
○ Schedule,
○ Budget,
○ Resources, and
○ Risks.

Due to the potential for change, the development of the project management plan is an iterative activity and is progressively elaborated throughout the project’s life cycle. Progressive elaboration involves continuously improving and detailing a plan as more detailed and specific information and more accurate estimates become available. Progressive elaboration allows a project management team to define work and manage it to a greater level of detail
as the project evolves.

The specific project characteristics and circumstances can influence the constraints on which the project management team needs to focus.
The relationship among these factors is such that if any one factor changes, at least one other factor is likely to be affected. For example, if the schedule is shortened, often the budget needs to be increased to add additional resources to complete the same amount of work in less time. If a budget increase is not possible, the scope or targeted quality may be reduced to deliver the project’s end result in less time within the same budget amount.
Project stakeholders may have differing ideas as to which factors are the most important, creating an even greater challenge. Changing the project requirements or objectives may create additional risks. The project team needs to be able to assess the situation, balance the demands, and maintain proactive communication with stakeholders in order to deliver a successful project.

The specific project characteristics and circumstances can influence the constraints on which the project management team needs to focus.
The relationship among these factors is such that if any one factor changes, at least one other factor is likely to be affected. For example, if the schedule is shortened, often the budget needs to be increased to add additional resources to complete the same amount of work in less time. If a budget increase is not possible, the scope or targeted quality may be reduced to deliver the project’s end result in less time within the same budget amount.
Project stakeholders may have differing ideas as to which factors are the most important, creating an even greater challenge. Changing the project requirements or objectives may create additional risks. The project team needs to be able to assess the situation, balance the demands, and maintain proactive communication with stakeholders in order to deliver a successful project.

In order to understand portfolio, program, and project management, it is important to recognize the similarities and differences among these disciplines. It is also helpful to understand how they relate to organizational project management (OPM). OPM is a strategy execution framework utilizing project, program, and portfolio management as well as organizational enabling practices to consistently and predictably deliver organizational strategy producing better performance, better results, and a sustainable competitive advantage.
OPM advances organizational capability by linking project, program, and portfolio management principles and practices with organizational enablers (e.g. structural, cultural, technological, and human resource practices) to support strategic goals. An organization measures its capabilities, then plans and implements improvements towards the systematic achievement of best practices.

Portfolio, program, and project management are aligned with or driven by organizational strategies. Conversely, portfolio, program, and project management differ in the way each contributes to the achievement of strategic goals. Portfolio management aligns with organizational strategies by selecting the right programs or projects, prioritizing the work, and providing the needed resources, whereas program management harmonizes its projects and program components and controls interdependencies in order to realize specified benefits. Project management develops and implements plans to achieve a specific scope that is driven by the objectives of the program or portfolio it is subjected to and, ultimately, to organizational strategies. OPM advances organizational capability by linking project, program, and portfolio management principles and practices with organizational enablers (e.g. structural, cultural, technological, and human resource practices) to support strategic goals. An organization measures its capabilities, then plans and implements improvements towards the systematic achievement of best practices.

Program management focuses on the project interdependencies and helps to determine the optimal approach for managing them. Actions related to these interdependencies may include:
• Resolving resource constraints and/or conflicts that affect multiple projects within the program,
• Aligning organizational/strategic direction that affects project and program goals and objectives, and
• Resolving issues and change management within a shared governance structure.
An example of a program is a new communications satellite system with projects for design of the satellite and the ground stations, the construction of each, the integration of the system, and the launch of the satellite.

A portfolio refers to projects, programs, subportfolios, and operations managed as a group to achieve strategic objectives. The projects or programs of the portfolio may not necessarily be interdependent or directly related. For example, an infrastructure firm that has the strategic objective of “maximizing the return on its investments” may put together a portfolio that includes a mix of projects in oil and gas, power, water, roads, rail, and airports. From this mix, the firm may choose to manage related projects as one program. All of the power projects may be grouped together as a power program. Similarly, all of the water projects may be grouped together as a water program. Thus, the power program and the water program become integral components of the enterprise portfolio of the infrastructure firm.

There are several types of PMO structures in organizations, each varying in the degree of control and influence they have on projects within the organization, such as:
• Supportive. Supportive PMOs provide a consultative role to projects by supplying templates, best practices, training, access to information and lessons learned from other projects. This type of PMO serves as a project repository. The degree of control provided by the PMO is low.
• Controlling. Controlling PMOs provide support and require compliance through various means. Compliance may involve adopting project management frameworks or methodologies, using specific templates, forms and tools, or conformance to governance. The degree of control provided by the PMO is moderate.
• Directive. Directive PMOs take control of the projects by directly managing the projects. The degree of control provided by the PMO is high.

Operations management is responsible for overseeing, directing, and controlling business operations. Operations evolve to support the day-to-day business, and are necessary to achieve strategic and tactical goals of the business. Examples include: production operations, manufacturing operations, accounting operations, software support, and maintenance.
Though temporary in nature, projects can help achieve the organizational goals when they are aligned with the organization’s strategy. Organizations sometimes change their operations, products, or systems by creating strategic business initiatives that are developed and implemented through projects. Projects require project management activities and skill sets, while operations require business process management, operations management activities, and skill sets.

Operations management is responsible for overseeing, directing, and controlling business operations. Operations evolve to support the day-to-day business, and are necessary to achieve strategic and tactical goals of the business. Examples include: production operations, manufacturing operations, accounting operations, software support, and maintenance.
Though temporary in nature, projects can help achieve the organizational goals when they are aligned with the organization’s strategy. Organizations sometimes change their operations, products, or systems by creating strategic business initiatives that are developed and implemented through projects. Projects require project management activities and skill sets, while operations require business process management, operations management activities, and skill sets.

The project manager is the person assigned by the performing organization to lead the team that is responsible for achieving the project objectives. The role of a project manager is distinct from a functional manager or operations manager. Typically the functional manager is focused on providing management oversight for a functional or a business unit, and operations managers are responsible for ensuring that business operations are efficient.

Depending on the organizational structure, a project manager may report to a functional manager. In other cases, a project manager may be one of several project managers who report to a program or portfolio manager who is ultimately responsible for enterprise-wide projects. In this type of structure, the project manager works closely with the program or portfolio manager to achieve the project objectives and to ensure the project management plan aligns with the overarching program plan. The project manager also works closely and in collaboration with other roles, such as a business analyst, quality assurance manager, and subject matter experts.

A primary function of a PMO is to support project managers in a variety of ways which may include, but are not limited to:
• Managing shared resources across all projects administered by the PMO;
• Identifying and developing project management methodology, best practices, and standards;
• Coaching, mentoring, training, and oversight;
• Monitoring compliance with project management standards, policies, procedures, and templates by means of project audits;
• Developing and managing project policies, procedures, templates, and other shared documentation (organizational process assets); and
• Coordinating communication across projects.

While operations management is different from project management, the needs of stakeholders who perform and conduct business operations are important considerations in projects that will affect their future work and endeavors. Project managers who consider and appropriately include operational stakeholders in all phases of projects, gain insight and avoid unnecessary issues that often arise when their input is overlooked.

Projects (and programs) are undertaken to achieve strategic business outcomes, for which many organizations now adopt formal organizational governance processes and procedures. Organizational governance criteria can impose constraints on projects—particularly if the project delivers a service which will be subject to strict organizational governance.
Because project success may be judged on the basis of how well the resultant product or service supports organizational governance, it is important for the project manager to be knowledgeable about corporate/organizational governance policies and procedures pertaining to the subject matter of the product or service (e.g., if an organization has adopted policies in support of sustainability practices and the project involves construction of a new office building, the project manager should be aware of sustainability requirements related to building construction.)

Organizational strategy should provide guidance and direction to project management—especially when one considers that projects exist to support organizational strategies. Often it is the project sponsor or the portfolio or program manager who identifies alignment or potential conflicts between organizational strategies and project goals and then communicates these to the project manager. If the goals of a project are in conflict with an established organizational strategy, it is incumbent upon the project manager to document and identify such conflicts as early as possible in the project. At times, the development of an organizational strategy could be the goal of a project rather than a guiding principle. In such a case, it is important for the project to specifically define what constitutes an appropriate organizational strategy that will sustain the organization.

Organizational strategy should provide guidance and direction to project management—especially when one considers that projects exist to support organizational strategies. Often it is the project sponsor or the portfolio or program manager who identifies alignment or potential conflicts between organizational strategies and project goals and then communicates these to the project manager. If the goals of a project are in conflict with an established organizational strategy, it is incumbent upon the project manager to document and identify such conflicts as early as possible in the project. At times, the development of an organizational strategy could be the goal of a project rather than a guiding principle. In such a case, it is important for the project to specifically define what constitutes an appropriate organizational strategy that will sustain the organization.

Projects (and programs) are undertaken to achieve strategic business outcomes, for which many organizations now adopt formal organizational governance processes and procedures. Organizational governance criteria can impose constraints on projects—particularly if the project delivers a service which will be subject to strict organizational governance.
Because project success may be judged on the basis of how well the resultant product or service supports organizational governance, it is important for the project manager to be knowledgeable about corporate/organizational governance policies and procedures pertaining to the subject matter of the product or service (e.g., if an organization has adopted policies in support of sustainability practices and the project involves construction of a new office building, the project manager should be aware of sustainability requirements related to building construction.)

Business value is a concept that is unique to each organization. Business value is defined as the entire value of the business; the total sum of all tangible and intangible elements. Examples of tangible elements include monetary assets, fixtures, stockholder equity, and utility. Examples of intangible elements include good will, brand recognition, public benefit, and trademarks. Depending on the organization, business value scope can be short-, medium-, or long-term.

The project manager’s role becomes increasingly strategic. However, understanding and applying the knowledge, tools, and techniques that are recognized as good practice are not sufficient for effective project management. In addition to any area-specific skills and general management proficiencies required for the project, effective project management requires that the project manager possess the following competencies:
• Knowledge—Refers to what the project manager knows about project management.
• Performance—Refers to what the project manager is able to do or accomplish while applying his or her project management knowledge.
• Personal—Refers to how the project manager behaves when performing the project or related activity. Personal effectiveness encompasses attitudes, core personality characteristics, and leadership, which provides the ability to guide the project team while achieving project objectives and balancing the project constraints.

There are several types of PMO structures in organizations, each varying in the degree of control and influence they have on projects within the organization, such as:
• Supportive. Supportive PMOs provide a consultative role to projects by supplying templates, best practices, training, access to information and lessons learned from other projects. This type of PMO serves as a project repository. The degree of control provided by the PMO is low.
• Controlling. Controlling PMOs provide support and require compliance through various means. Compliance may involve adopting project management frameworks or methodologies, using specific templates, forms and tools, or conformance to governance. The degree of control provided by the PMO is moderate.
• Directive. Directive PMOs take control of the projects by directly managing the projects. The degree of control provided by the PMO is high.

There are several types of PMO structures in organizations, each varying in the degree of control and influence they have on projects within the organization, such as:
• Supportive. Supportive PMOs provide a consultative role to projects by supplying templates, best practices, training, access to information and lessons learned from other projects. This type of PMO serves as a project repository. The degree of control provided by the PMO is low.
• Controlling. Controlling PMOs provide support and require compliance through various means. Compliance may involve adopting project management frameworks or methodologies, using specific templates, forms and tools, or conformance to governance. The degree of control provided by the PMO is moderate.
• Directive. Directive PMOs take control of the projects by directly managing the projects. The degree of control provided by the PMO is high.

Program management focuses on the project inter-dependencies and helps to determine the optimal approach for managing them. Actions related to these inter-dependencies may include:
• Resolving resource constraints and/or conflicts that affect multiple projects within the program,
• Aligning organizational/strategic direction that affects project and program goals and objectives, and
• Resolving issues and change management within a shared governance structure.

Projects are often utilized as a means of directly or indirectly achieving objectives within an organization’s strategic plan. Projects are typically authorized as a result of one or more of the following strategic considerations:
• Market demand
• Strategic opportunity/business need
• Social need
• Environmental consideration
• Customer request
• Technological advance
• Legal requirement

There are several types of PMO structures in organizations, each varying in the degree of control and influence they have on projects within the organization, such as:
• Supportive. Supportive PMOs provide a consultative role to projects by supplying templates, best practices, training, access to information and lessons learned from other projects. This type of PMO serves as a project repository. The degree of control provided by the PMO is low.
• Controlling. Controlling PMOs provide support and require compliance through various means. Compliance may involve adopting project management frameworks or methodologies, using specific templates, forms and tools, or conformance to governance. The degree of control provided by the PMO is moderate.
• Directive. Directive PMOs take control of the projects by directly managing the projects. The degree of control provided by the PMO is high.

Projects can intersect with operations at various points during the product life cycle.
At each point, deliverables and knowledge are transferred between the project and operations for implementation of the delivered work. This implementation occurs through a transfer of project resources to operations toward the end of the project, or through a transfer of operational resources to the project at the start.

The project manager’s role becomes increasingly strategic. In addition to any area-specific skills and general management proficiencies required for the project, effective project management requires that the project manager possess the following competencies:
• Knowledge—Refers to what the project manager knows about project management.
• Performance—Refers to what the project manager is able to do or accomplish while applying his or her project management knowledge.
• Personal—Refers to how the project manager behaves when performing the project or related activity. Personal effectiveness encompasses attitudes, core personality characteristics, and leadership, which provides the ability to guide the project team while achieving project objectives and balancing the project constraints.