Project, Program, And Portfolio Management: Deciphering the Differences

The expression project management can be rather broad to the layperson, leading to any management work from the simplest of projects on up through the most complicated of implementations. But the reality is that there are three Ps of project management, each of which is different from but related to the others: Project management, Program management, and Portfolio management.

Project, Program, and Portfolio Management

The connection between project, program, and portfolio management can best be described like this:

• A project is a temporary effort undertaken by a company or organization.
• A program is a group of similar or related projects, which are often managed and coordinated as a group instead of independently.
• A portfolio is a group of various programs and projects within the same organization, which may be related or unrelated.
• Put another way, and projects fit within more extensive programs, which themselves provide within portfolios.
• Though related, tasks associated with the project, program, and portfolio management are, by nature, very different.

What Is a Project in Project Management?

So, what exactly does the project mean in the world of project management? Generally, a project is a temporary effort, with a finite start and end focused on creating a unique product, service, or result.

Nothing in this definition explains the size or the precise content of a project. There are projects of every size possible in virtually every industry, and project directors supervise them regardless of these specifics.

What Does a Project Manager Do?

As project managers, the critical parts of the job are balancing the scope of work, also known as deliverables to meet the project objectives with the available resources within the schedule and given budget. They must do this all while working to assure the project joins the quality guidelines demanded by its customers, not a simple task.

Project management is about utilizing the right tools, techniques, and processes in a value-added process to make the project successful. As we know, the body of project management knowledge is enormous, and there are several skills, tools, and techniques available to aid project managers in delivering these initiatives.

It is essential to understand the project, its goals and objectives, and what its challenges are, and to pick, want, and use those right parts of project management accordingly.

What Is a Program in Project Management?

In some cases, a group of projects must be managed in a coordinated way to ensure that value is delivered. In project management terms, this collection of projects becomes a program. As a project, a plan is a temporary organization, so the program is comprehensive when the related projects are complete.

The Project Management Institute (PMI) describes program management in its PMBoK Guide as The application of information and skills to achieve program objectives and obtain benefits and control is not available by running-related program components individually.

What Does a Program Manager Do?

Program management is not merely managing multiple projects, and it is a bit more strategic than that. The program manager also does not micromanage those projects; he or she helps assure that the right work is moving between the right projects at the right points in time.

The program manager centers, throughout the program, on the business benefits, beginning very first at its beginning by looking at what benefits can be achieved and then making that happen.

Each project still has a project manager doing the work described above. The program manager's role is to guarantee that the benefits intended are met by confirming that the correct projects are involved in the program. Any project not giving value to the benefits is then realigned or excluded from the program.

The program manager is responsible for managing the dependencies between projects and building program-level plans to accomplish this. For example, a master schedule is created to handle the dependencies between projects; a program risk management plan is designed to manage program-level risks.

A program communication plan establishes how the information will flow in the program. The program manager is then not running the projects, but instead providing the oversight required to guarantee that the pieces of each project are completed effectively and efficiently to meet the other projects' needs.

The program manager concentrates on benefits realization rather than knowing the benefits that can be achieved from this collection of projects and focus on making them. The program manager is also working to achieve organizational change and assure that the benefits are transitioned to operations and that processes are in place to sustain these benefits.

Since program management's role is to ensure that projects are aligned to the business strategy, as the plan changes, the program manager also needs to interact with the project teams so that they are informed of the changes and what requires to be done about them.

What Is a Portfolio in Project Management?

A portfolio is a lot of projects and programs run as a group to deliver essential objectives. An organization may have one portfolio, which would then composed of all projects, programs, and operational work within the company. It may also establish some portfolios for project selection and continuous investment decisions.

According to PMI and its PMBoK Guide, a portfolio covers Projects, programs, other portfolios, and operations conducted as a group to achieve strategic objectives. Organizations require to decide which projects are the right ones to focus on.

What Does a Portfolio Manager Do?

Portfolio administration is the centralized management of one or more portfolios to manage an organization’s strategic objectives.

Within organizations, the truth is often that resources are limited, whether it is dollars, people, space, or equipment. Based on the organization’s strategy, several projects and programs could be done; it just requires to be determined, which are the right ones and what order they should be completed. It is critical to look at programs and projects at the individual level and holistically to understand how these align with the organization’s overarching goals.

At the same time, it is essential to consider the level of balance in the portfolio. The organization requires to keep the lights on while also developing new opportunities. Some risk wants to be taken, but the portfolio should not be so risky that everything could be lost within a period.

Beyond prioritizing and choosing projects and programs, portfolio management balances the portfolio so that the right projects and programs are adopted and implemented. Monitoring and controlling are critical to the process since portfolio composition is not a one-time decision.

Evaluations should be conducted in some regular rhythm. It may be decided that a project’s advantage becomes lower, and others move into its place. A project could be briefly moved out of the portfolio or forever ran out of what that portfolio entails.

This is done to assure projects that align with an organization’s plans, goals, and objectives. It may also be the case that, as we get into making a project or program, we see it no longer aligns, causing a reprioritization of all projects and programs in the portfolio.

Project vs. Program vs. Portfolio Managers

While the project manager manages multiple tasks within a project, the program manager is coordinating between related projects within a program, to determine which projects are working towards the same or similar goals, and which may be reliant upon others. On the other hand, portfolios managers are managing all or multiple programs within an organization, assuring that all programs are working towards fulfilling the organization's strategic objectives.

The easiest way to describe the variation in how project, program, and portfolio managers work is: A project manager works to deliver a project efficiently and dependably. They are responsible for the day-to-day management that takes a project to success.

Program managers are more concerned with strategic alliance: Understanding what individual project managers are doing and enabling effective communication between them to understand where projects are and provide support. Meanwhile, portfolio managers coordinate between various programs to ensure that people stay on track and that the organization is meeting its overarching strategic initiatives.

How Project, Program, and Portfolio Management All Work Together

Earning a master’s degree in project management is one way to improve these skills, increase your earning potential, and gain a competitive profit.

From a high level, projects are part of programs and portfolios, and programs are part of portfolios. Each is different, but most effective when managed as one. If you are considering a career in project management, whether at the project, program, or portfolio level, building the skills required for each role is significant to your success.

To be effective, the project managers, program managers, and portfolio managers within an organization must know the roles that each other plays in the making about the successful completion of a strategic goal. Without this knowledge, unnecessary confusion and miscommunication can derail a lead before it even begins.

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Truth About Benefits of PMP Certification

At some point in their career, almost every project manager admires whether to get some project management certification. The project management professional (PMP) certification, offered by the Project Management Institute (PMI), is by far the most widely accepted project management certification worldwide.

Based on the number of time and money it takes to succeed, it may seem daunting to get PMP certified. However, statistical data and anecdotal evidence confirm the resolution that obtaining PMP certification has enormous value for project managers and their employers. If you are contemplating getting your master’s in project management, you should look for a program that provides you to take the PMP exam.

Earning a PMP Certificate

While you can succeed without a certificate, accreditation can aid you in four key steps:

1. Commits to Higher Billing Rate

Education and experience typically push your base rate as a consultant, but adding an approved certification to your name can also help to punch up the dollar value of your services. This is fueled by medium and large corporations' improved interest to hire consultants and employees who are certified, project managers. Companies appear willing to pay for that level of expertise and make it a hiring requirement.

The annual median salary for project managers concentrating on applications is $161,474 when working with businesses with more than 500 million dollars in yearly revenue. In a study of 2,000 salaries, this number dropped 24 percent. This explains how valuable certification can be.

2. PMP Certificate Opens Doors to New Clients

The number of certified project managers is growing year after year. The Project Management Institute (PMI) had over 2.9 million members in countries all over the world. As these numbers proceed to develop, so do the number of companies that understand the value of working with certified professionals.

Having a certification from the PMI, or other kinds of project management certification often make the distinction in getting the job or being passed over for someone else. It can also be an essential factor in a client deciding whether or not to hire you.

3. Proposes International Recognition

If you work with international clients or companies who have a global neighborhood, a PMI certification is now known as meeting international standards and requirements. The PMI was the first project management organization to earn accreditation for its PMP accreditation program from the International Organization for Standardization (ISO).

The ISO was launched in 2002 but is now recognized and supported by more than 85 countries, and ISO is considered an essential benchmark in the international business community. Hiring PMP-certified consultants is now especially useful to global organizations because they can reference the ISO 17024 certification.

4. Establishes Credibility

Getting a Project Manager Professional (PMP) certification requires that you meet specific, rigorous guidelines that include your experience, education, and professional experience. In addition to taking a test, you must also have three to five years of experience, depending on your cultural background, as a project manager, and have gained 4,500 to 7,500 hours leading and managing projects.

Certified professionals also agree to remain by an industry-accepted code of ethics and professional conduct. Becoming PMP certified is not easy or secure, but the designation signifies a high level of professionalism and experience, which instantly boosts your credibility as a consultant.

Why Does It Pay to Be PMP Certified?

While converting PMP certified can be costly, complicated, and time-consuming, it gives a high level of dedication to project management as a profession. Having the PMP certification provides you a particular level of prestige and a more excellent way to jobs with higher salaries. PMP certification holders get 20 percent more than their non-certified peers.

Some employers want their project managers to be PMP certified or give hiring preference in PMPs. Research shows this can assist companies to be more competitive, productive, and meet their goals. In organizations where, at most, one-third of project managers are PMP certified, a higher number of projects are built on time, within budget, and within scope.

Additional studies provide supporting evidence that high achievement and success may be directly linked to employing PMP certified project managers. Project success rates tend to be blended with the project manager’s qualifications and experience. PMP certification is seen as evidence of possible success and continues the most recognized project management certification worldwide.

Conclusion

In summary, some people might view PMP certification as expensive, time-consuming, and challenging. But, many hiring experts treat PMP certification as an essential credential that adds credibility to your resume. Further, it aids you to build the vital skills required to excel in your career.

So yes! PMP certification is worth the effort.

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