I received a query from one of my friends here asking clarification about the comparison of the concept of CHANGE in Projects, Programs and Portfolios. As per page 8 of PMBOK Guide 5th Ed, Table 1.1 gives a comparison and explains briefly the change as perceived by each of the three elements of Organizational Project Management.
I will try to answer the questions as they were asked.
QUESTION #1
What is the difference between internal and external change in program and portfolio?
First take Program Management, it says "Program managers expect change from inside and outside the program ad are prepared to manage it."
Imagine what in inside program? Projects exist within Program so any change request in any of the constituent projects may have effect on program, and may entail a program change request. This is an example of program manager expecting change from inside the program.
Now what is outside of program? Naturally a program is subservient to organizational strategy, may be governed by the investment decisions of portfolio management and program stakeholders may also cause a change request for the program from outside of the program.
Hope this explains the program management part.
Now let us talk about the portfolio management, where PMBOK Guide says, "Portfolio managers continuously monitor changes in the broader internal and external environment."
First taking on the broader internal environment, a portfolio keeps a watchful eye on all its constituent programs and projects but it does not micromanage them or closely manage or monitor them. It just looks at those KPIs which indicates any change to the investment decision, therefor it is the broader internal environment.
Broader external environment indicates the environment external to portfolio affecting its investment decisions for its programs and projects. This may include change in strategic direction, organizational or portfolio stakeholders' change of mind, or even the larger and broader environment in which the whole system exists to include Government regulations, climatic conditions etc.
Hope this answers the first question.
QUESTION #2
How a project doesn't have external change?
Consider the statement, "Project managers expect change and implement processes to keep change managed and controlled."
Nowhere does it say projects do not have external change but it has generalised all changes affecting projects because the change in project is brought about by processes and a project manager is supposed to keep a close watch on his processes as if they are performing exactly to the plan. Anything forcing the processes not to behave as planned in a change, whether external or internal, so it will entail a change request. The change request can be external but the definition of external does not extend to that of program or portfolio level. It restricts generally to the project stakeholders and project environment. The internal changes within a project are caused die to performance within the project.
Hope this answers the second question.
Saving Changes...
