It seems to me there is a large crossover between program and portfolio management. What would you say are the clear features of portfolio management that do NOT exist in program management? Saving Changes...
In general, ongoing component selection, prioritization and investment/divestment decisions wouldn't happen in a typical program as those would be done early in its life as part of the program definition phase.
With a portfolio, the expectation is that it will be refreshed regularly to reflect changes in strategic direction, external forces and so on.
With most portfolios there is also a need to balance objectives such as profitability, sustainability, risk and so on. Programs tend to focus on a single large outcome.
Kiron
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1 reply by Sante Delle-Vergini, PhD
Jul 05, 2018 7:16 AM
Sante Delle-Vergini, PhD
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True they do not always occur in a typical program, but they do occur. I also agree that portfolios are refreshed to reflect changes in strategic direction, but sometimes programs are too. Lastly, balancing objectives such as profitability, sustainability, risk etc can indeed be features of programs. Which is why I was looking for a clear cut example of some feature within portfolio management that is 100% not included in program management. Otherwise, if the two are blended that closely together, should they be interchangeable? It's just something that crosses my mind every now and then this fuzzy line between programs and portfolios. Thanks Kiron.
In general, ongoing component selection, prioritization and investment/divestment decisions wouldn't happen in a typical program as those would be done early in its life as part of the program definition phase.
With a portfolio, the expectation is that it will be refreshed regularly to reflect changes in strategic direction, external forces and so on.
With most portfolios there is also a need to balance objectives such as profitability, sustainability, risk and so on. Programs tend to focus on a single large outcome.
Kiron
True they do not always occur in a typical program, but they do occur. I also agree that portfolios are refreshed to reflect changes in strategic direction, but sometimes programs are too. Lastly, balancing objectives such as profitability, sustainability, risk etc can indeed be features of programs. Which is why I was looking for a clear cut example of some feature within portfolio management that is 100% not included in program management. Otherwise, if the two are blended that closely together, should they be interchangeable? It's just something that crosses my mind every now and then this fuzzy line between programs and portfolios. Thanks Kiron.
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1 reply by Kiron Bondale
Jul 05, 2018 8:52 AM
Kiron Bondale
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Wouldn't the concept of portfolio balance not apply to a program? Using tools such as portfolio bubble diagrams is not something I'm used to seeing on programs...
True they do not always occur in a typical program, but they do occur. I also agree that portfolios are refreshed to reflect changes in strategic direction, but sometimes programs are too. Lastly, balancing objectives such as profitability, sustainability, risk etc can indeed be features of programs. Which is why I was looking for a clear cut example of some feature within portfolio management that is 100% not included in program management. Otherwise, if the two are blended that closely together, should they be interchangeable? It's just something that crosses my mind every now and then this fuzzy line between programs and portfolios. Thanks Kiron.
Wouldn't the concept of portfolio balance not apply to a program? Using tools such as portfolio bubble diagrams is not something I'm used to seeing on programs...
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1 reply by Sante Delle-Vergini, PhD
Jul 05, 2018 6:28 PM
Sante Delle-Vergini, PhD
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Granted, these are typically used for portfolios, but they have been used for programs to plot 3 dimensions such as cost, value and risk. I see bubble charts as a way to represent data moreseo than the fundamental differences between the way projects and portfolios are managed. I'm actually surprised there hasn't been a lot more on this topic, since there are bodies of knowledge, certifications and job titles that differentiate the two. When flipping through the PMI's bodies of knowledge, you can swap around so many pages in and out of each and not even know they were swapped. I am not arguing that there is no difference between the two, only that there should be some clear boundaries to differentiate them, even if some components between the two are shared.
Saving Changes...
Thomas WalentaGlobal Project Economy ExpertHackenheim, Germany
Sante, agree, many features may be useful in both areas.
The purpose is different though:
A portfolio manager ensures that organizational resources are used to best fulfil a strategy permanently, year over year, even as strategy and capabilities are adapted to the changing environment. It is more about efficiency and it requires an agile mindset.
A program manager works to create benefits following a business case. Which is more about effectivity. If the program is big enough she needs to use portfolio management techniques.
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1 reply by Sante Delle-Vergini, PhD
Jul 05, 2018 6:40 PM
Sante Delle-Vergini, PhD
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Thanks Thomas, some programs that are large enough have all these characteristics of a portfolio, perhaps it's a terminology thing. I do see the point about programs being more about effectivity though.
Like Programs, Portfolios can be cross-matrixed or specialized. However, Program & Portfolio Management do differ. Several high-level features of the Portfolio Management role include:
1) Has visibility to c-suite Strategic Objectives detail (i.e. financial goals & requirements);
2) Drives achievement of Strategic Objectives through deep understanding of c-suite financial goals & requirements and alignment of Portfolio's objectives;
3) Identifies & engages team to identify & plan which projects/programs are needed to meet Portfolio's objectives;
4) Leads team to determine initial budgets, scopes, durations & resources needed (incl. sponsorships), ensuring initial plans/charters are drafted for each project/program; and
5) Engages with Project/Program Managers, supports projects/programs w/leadership & cross-functional communications, and tracks & reports Portfolio status & KPIs to c-suite/leadership (i.e. status, financial health of Portfolio).
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1 reply by Sante Delle-Vergini, PhD
Jul 05, 2018 6:50 PM
Sante Delle-Vergini, PhD
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Thanks Mary, a lot of these are related to c-suite access. Smaller companies do this with programs as well, but I see your point.
Saving Changes...
Anish AbrahamPrivacy Program Manager| University of WashingtonAuburn, Wa, United States
In my opinion, portfolio management allow the organization to make sure that projects align to business strategies, so it’s clear why particular work being done.
Where as program management will make sure that the plans are correct and communicated clearly to enable effective decision-making within the portfolio. Saving Changes...
Wouldn't the concept of portfolio balance not apply to a program? Using tools such as portfolio bubble diagrams is not something I'm used to seeing on programs...
Granted, these are typically used for portfolios, but they have been used for programs to plot 3 dimensions such as cost, value and risk. I see bubble charts as a way to represent data moreseo than the fundamental differences between the way projects and portfolios are managed. I'm actually surprised there hasn't been a lot more on this topic, since there are bodies of knowledge, certifications and job titles that differentiate the two. When flipping through the PMI's bodies of knowledge, you can swap around so many pages in and out of each and not even know they were swapped. I am not arguing that there is no difference between the two, only that there should be some clear boundaries to differentiate them, even if some components between the two are shared. Saving Changes...
Sante, agree, many features may be useful in both areas.
The purpose is different though:
A portfolio manager ensures that organizational resources are used to best fulfil a strategy permanently, year over year, even as strategy and capabilities are adapted to the changing environment. It is more about efficiency and it requires an agile mindset.
A program manager works to create benefits following a business case. Which is more about effectivity. If the program is big enough she needs to use portfolio management techniques.
Thanks Thomas, some programs that are large enough have all these characteristics of a portfolio, perhaps it's a terminology thing. I do see the point about programs being more about effectivity though. Saving Changes...
