Difference between Project, Program and Portfolio Management (Ch 1, p8)

Parameter Project Program Portfolio

Scope  Narrow  Wide  Business scope
 Specific deliverables  May change  Changes with strategic goals of
 Benefit expectations of stakeholder organization
Change  Keep to a minimum  Expect change  Monitor change in broader
environment
Success Measured  Budget  ROI  Aggregate performance of portfolio
By  Time  Capabilities components
 Specifications (Scope)  Benefit Delivery
Leadership focus  Focus on task delivery  Focus on managing relationships  Adding value to portfolio decision-
 Directive  Conflict resolution making
Manage…  Technicians  Project Managers  Portfolio Management Staff
Role  Team players who  Leaders providing vision and  Leaders providing insight and
motivate leadership synthesis
Work  Monitor and control  Monitor projects and ongoing work  Monitor aggregate performance and
tasks value indicators
Lifecycle  To produce discrete  To manage outcomes and benefits of
deliverables integrated projects
 Have extended lifecycles
Defining the program (21 questions, 14%)
1. Performing a program assessment
a. Define program objectives and requirements from the strategic plan
b. Establish high-level program map
c. Ensure program aligns with enterprise strategic plan / mission
d. Understand the strategic value of proposed business change
e. Select the relevant communication tools and techniques
2. Supporting business analysis functions
a. Identifying the marketplace needs and drivers for the program
b. Ensuring program viability by performing market analysis and research
c. Completing a high-level cost benefit analysis for the program
3. Developing benefits realization plan
a. Estimating costs and benefits (ROI) of the program
b. Identifying suitable benefits measurement techniques
c. Defining KPIs
d. Adapting the benefits realization plan to the organizational environment
e. Conducting program feasibility study
f. Identifying funding sources and obtaining funding
4. Performing preliminary stakeholder analysis
a. Identifying, analyzing and characterizing program stakeholders
b. Assessing stakeholder positions relative to the program
c. Building stakeholder analysis charts
d. Identifying evaluating and consolidating stakeholder requirements
e. Creating stakeholder management plan
f. Building the approach for stakeholder communications
5. Establishing alliances with other departments and organizations
a. Recognizing dependencies with other departments and organizations
b. Considering potential impacts of organizational environment and culture
c. Aligning program objectives with alliances
d. Recognizing and analyzing key program dependencies
6. Evaluating organizational capabilities
a. Consulting with groups involved in program delivery
b. Validating program priority and alignment to strategic objectives
 c. Aligning program capabilities with strategic stakeholder needs
d. Conducing a gap analysis of program deliverables and benefits against strategic plans and program requirements
e. Evaluating program deliverables and benefits by applying lessons learned and financial management principles.
7. Requesting authorization to proceed
a. Presenting the program assessment for approval to the governance authorities in order to initiate the program
b. Recognizing and understanding the organization and program governance structures
c. Selling the programs vision and expected business benefits
d. Presenting the program assessment for approval
e. Requesting authorization to proceed from the governance authorities
f. Formally initiating the program

Program Management Process Groups

Benefits Stakeholder
Process Groups Management Management Program Governance
Initiating (18 questions, 12%)
 Defining and authorizing the program(s) and/or project(s) within the program.
1. Initiate Program  Program Benefits  Stakeholder Analysis  Program Charter
a. Define the scope and benefit expectations of Statement and Management Plan  Program Manager
the program  Benefits Realization Identification
b. Ensure authorization and program initiation Plan  Program Sponsor
are linked to organization’s ongoing work  (Program Business Identification
and strategic priorities. Case and  Program Scope
c. Formal acceptance of scope by stakeholders Investment Statement
d. Order of magnitude estimates of scope, Analysis)
effort and cost (i.e., feasibility studies,
concept development)
 Benefits Stakeholder
Process Groups Management Management Program Governance
2. Authorize Projects  Project Business  Program Reporting  Project Charters
a. Initiate components within the program. Case Requirements  Project Manager
b. Timing usually controlled by Program  Communicate Project Assigned
Management Plan Related Info to  Project Sponsor
Stakeholders Identified
 Project Funding
Approved

3. Initiate Team  Core Program Team

a. Formalize appointment of program manager Assignments
b. Obtain and organize key personnel (core  Program Manager
program team) Assignment
 Program Team Directory
Planning (30 questions, 20%)
 Planning the best alternative courses of action to deliver the benefits and scope that the program was undertaken to address.
 Planning processes are iterative and depending on information generated at the project level.
1. Develop Program Management Plan  Program Benefits  Expectations  Program Management
a. Develop set of plans to be used to guide Statement Updates management Plan (and all subsidiary
both program execution and program plans)
control (Same subsidiary plans as for
projects.)
b. Each planning process results in
development of a subsidiary plan
2. Interface Planning  Program Schedule  Interface  Program Interfaces
a. Process of identifying and mapping Update Management Plan
interrelationships that exist within a  Requirements for
program Program
b. Describe characteristics of interfaces Communications Plan
c. Create plan to ensure interfaces are
established and maintained
 Benefits Stakeholder
Process Groups Management Management Program Governance
3. Transition Planning  Transition Plan  Receiving  Transition Agreement
a. Process of identifying and planning for Organization Plan
transitions from program team to recipients
of on-going activities that result from the
program
b. Purpose: Ensure program benefits are
sustained once they are transferred to the
organization
c. Formal handoff
d. May be multiple transition events
4. Resource Planning  Resource Management
a. Determine people, equipment, materials Plan
b. Optimize resources across the programs
c. Determine how common program resources
will be allocated
5. Scope Definition  Detailed scope  Scope Management Plan
a. Develop detailed scope statement statement
b. Define approach for developing PWBS
c. Develop scope management plan
6. Create Program Work Breakdown Structure  PWBS  Program Mgt Plan
a. Decomposition stop at level of control of  PWBS Dictionary Updates
Program Manager
b. Captures all non-project work
7. Schedule Development  Program Schedule  Resource Requirement
a. Project managers build detail Updates
b. Detail rolled up at the management control  Schedule Management
points into program work packages Plan
8. Cost Estimating and Budgeting  Program Budget  Cost Management Plan
a. Aggregate cost estimates
b. Develop budgets for all components
 Benefits Stakeholder
Process Groups Management Management Program Governance
9. Quality Planning  Operational  Quality Management  Program Cost of Quality
a. Identify standards relevant to program Definitions  Quality Management
b. Specifying how standards will be satisfied  Quality Checklists Plan
 Quality
Improvement
Objectives and
Plans
10. Human Resource Planning  Roles and  Organization chart
a. Identifying, documenting, and assigning Responsibility  Staffing Management
program roles, responsibilities and reporting Assignments Plan
relationships
11. Communications Planning  Communications
a. Determining the information and Management Plan
communication needs of program  Communications
stakeholders Technology
b. Identifying who needs what information, Requirements Plan
when they need, how it will be given and by
whom.
12. Risk Management Plan and Analysis  Prioritized risks  Risk Response Plan
a. Identification of program risks
b. Qualitative risk analysis
c. Quantitative risk analysis
d. Risk response planning
13. Plan Program Purchases and Acquisitions  May/buy decisions  Contract SOW
a. Determining what to buy when  Procurement
b. Validating product requirements Management Plan
c. Developing procurement strategies  Program specific
d. Make/buy analysis on components of PWBS qualified vendor list
 Benefits Stakeholder
Process Groups Management Management Program Governance
14. Plan Program Contracting  Evaluation criteria
a. Identify type and detail of documentation  Procurement documents
needed to implement contracts  Contracts Management
b. Produce foundation and guidelines on which Plan
effective program-level contract
administration can be implemented.
Executing (37 questions, 25%)
 Integrates the projects, people and other resources to carry out the program management plan and deliver the program’s
benefits.
 Ensure that benefits management, stakeholder management and program governance are executed.
1. Direct and Manage Program Execution  Work results  Expectations  Change requests
a. Deliver the programs intended benefits. Management  Program termination
b. Produce cumulative deliverables and other requests
work products
c. Track progress of work
d. Implement approved change requests,
corrective actions and preventative actions.
2. Develop Program Team  Performance
a. Building individual and group competencies assessments and
to enhance program performance improvements based
b. Ongoing process on work results
 Training records
 Team competency
assessments
3. Information Distribution  Formal
a. Providing timely and accurate information to communications of
program stakeholders in useful formats and program information
appropriate media  Informal
b. 3 major communication channels: clients, communications on an
sponsors, component mangers as-needed basis
 Benefits Stakeholder
Process Groups Management Management Program Governance
4. Request Seller Responses  Seller response to
a. Issuing RFIs, RFPs, and RFQs and obtaining requests
responses
b. Used in early stages of planning to evaluate
“make vs buy” decisions
5. Select Sellers  Contracts
a. Reviewing offers, choosing among potential  Selected vendor(s)
sellers, negotiating contract terms.  Updates to procurement
management plan
 Agreements
Monitoring and Controlling (32 questions, 21%)
 Monitoring and measuring of program progress against the benefit delivery expectations, identifying from the program
management plan, and taking corrective action.
 Obtaining and consolidating data on status and progress, interface with program governance structure, performance reporting,
and integrated change control
1. Integrated Change Control  Updates
a. Coordinating changes including changes to  Program mgt plan
cost, quality and scope  Scope statement
b. Approve/deny change requests  Benefits realization
c. Escalate requests plan
d. Identify when change has occurred  Change requests
e. Influence change factors decisions
f. Ensure changes beneficial and agreed upon  Change register
g. Managed approved changes  Modified project
h. Perform throughout lifecycle priorities
2. Resource Control  Change requests
a. Managing/tracking of all program resources  Expenditure reports
and associated cost  Resource releases
b. Analysis of resource expense  Utilization reports
c. Resource commitments, allocations, and  Cross-charges
release
 Benefits Stakeholder
Process Groups Management Management Program Governance
3. Monitor and Control Program Work  Forecasts  Communications  Change requests
a. Collecting, measuring and consolidating messages
performance information
b. Assessing measurements and trends to
generate improvements
c. Analyze reported project results
d. Similar to risk management – focuses on
performance vs. risk
4. Issue Management and Control  Change request
a. Identifying, tracking and closing issues  Escalated issues
effectively  Issues register
b. Ensure stakeholder expectations are aligned  Proposed resolutions
with program activities and deliverables.
c. Carried out in parallel with controlling risk
5. Scope Control  Change request status  Change request decisions
a. Capture requested changes information  Program budget updates
b. Evaluate request
c. Decide on request disposition
d. Communicate decision
e. Archive request artifacts
f. Initiate activities for approved requests
6. Schedule Control  Information for  Change requests
a. Ensure program will produce required stakeholders  Program schedule
deliverables on time updates
7. Cost Control  Variance reports  Change requests
a. Controlling changes to and producing  Estimate at completion
information from the program budget  Program budget updates
b. Analyzing actual cost as incurred
c. Addressing unanticipated events; both
positive and negative
 Benefits Stakeholder
Process Groups Management Management Program Governance
8. Perform Quality Management  Change requests
a. Monitor specific program deliverables,  Quality checklists
products and results to ensure they meeting  Inspection/test reports
defined requirements  Measurement results
 Non-conforming work
product
9. Communications Control  Updated
a. Managing stakeholder communications communications plan
10. Performance Reporting  Updated
a. Coordinating performance data communications plan
b. Provide stakeholders with information about
how resources are being used to deliver
program benefits
c. Conveyed via Information Distribution
Process
11. Risk Monitoring and Control  Change request
a. Risk Control - Tracking identified program  Risk register
risks
b. Risk Monitoring - Executing risk response
plans and evaluating effectiveness
12. Program Contract Administration   Program reports  Adjustments to resource
a. Managing relationship with buyers and  Communications accounting
sellers messages  Approved pmt requests
b. Procurement of shared resources  Contract changes
 Change requests
Closing (8 questions, 8%)
 Formalize acceptance of a product, service or benefit/results and bring program or program component to orderly end.
 Benefits Stakeholder
Process Groups Management Management Program Governance
1. Close Program  Certificate of  Closure report  Program archives
a. Formal acceptance of outcome by sponsor program  Personnel records
or customer completion updated
b. Capture / archive records  Final performance  Lessons learned
reviews
2. Component Closure  Certificate of  Communication  Project archives
a. Close project or non-project activity component messages  Program archives
b. Validate closure completion  Resource availability
c. Records and communications updates
3. Contract Closure    Contract completion
a. Closing contract according to terms certification
b. Product verification  Contract termination
c. Records documentation
Knowledge Areas

KNOWLEDGE AREAS INITIATING (12%) PLANNING (20%) EXECUTING (25%) MONITORING/CONTROLLING CLOSING (8%)
(21%)
Integration  Initiate Develop program  Direct and  Integrated Change  Close Program
Management Programs management plan Manage Program Control  Component
 Authorize  Interface planning Execution  Resource Control Closure
Projects  Transition  Monitor and Control
planning Program Work
 Resource planning  Issue Management
and Control
Scope  Scope Definition  Scope Control
Management  Create PWBS
Time Management  Schedule  Schedule Control
Development
Cost Management  Cost Estimating  Cost Control
and Budgeting
Quality  Quality Planning  Quality  Quality Control
Management Assurance
Human Resources  Initiate Team  Human Resources  Acquire Team
Management Planning  Develop Team
Communications  Communications  Disseminate  Communications
Management Planning Information Control
 Performance
Reporting
Risk Management  Planning and  Monitoring and
Analysis Control
Procurement  Plan Purchases  Request Seller  Program Contract  Contract Closure
Management and Acquisitions Responses Administration
 Plan Contracting  Select Sellers
3 broad management themes that are the keys to success of a program (Ch1, p9)
1. Benefits management – definition and formalization of expected benefits that the program is intended to deliver
a. Benefits realization plan – key output of the Initiating Process
b. Activities
i. Assess the value and organization impact of the programs benefits
ii. Identify the interdependencies of benefits being delivered among various projects with the program
iii. Assign responsibility and accountability for the actual realization of the benefits from the program
c. Critical component of the Initiate Program Process
d. Benefits Sustainment – Sixth phase of benefits management occurring after program is transitioned to operations
2. Program stakeholder management
a. Identifying how the program will impact stakeholders and developing a communication strategy to engage the
affected stakeholders, manage their expectations, and improve acceptance of the objectives of the program
b. Must understand who the stakeholders are, the position they may take, they way they will exert their influence and
their source of power
3. Program governance
a. Process of developing, communication, implementing, monitoring, and assuring the policies, procedures,
organizational structures, and practices associating with a given program.
b. Controls the program and therefore bridges the program lifecycle and program management processes
c. Result: framework for efficient and effective decision-making and delivery management focused on achieving
program goals in a consistent manner, addressing appropriate risk and stakeholder requirements
Program Lifecycle – with gate after each phase (Ch 2, p18)
Stakeholder
Lifecycle Phases Benefits Management Management Program Governance
1. Pre-Program Setup (Similar to Initiating Identify  Identification of  Gate: Approval in
Phase)  Identify and quantify stakeholders principle
 Objective: Establish firm foundation of business benefits
support and approval for the program
2. Program Setup (Similar to Planning Phase) Analysis  Analysis of  Gate: Approval
 Purpose: Build a detailed roadmap that  Derive and prioritize stakeholder interests authorizing
provides direction on how the program components execution of the
will be managed and defines key  Derive benefits metrics program
deliverables management plan
3. Establishing Program Management and Planning  Establish stakeholder
Technical Infrastructure  Establish benefits management
 Purpose: Establish the structure in which realization plan approach, tools, etc.
work will occur along with the technical  Establish benefits
infrastructure to facilitate the work monitoring
 Map benefits to program
plan
4. Delivering Incremental Benefits – longest and Realization  Monitor stakeholder  Gate: Approval to
most costly  Monitor components list close – all program
 Purpose: Initiate the component projects  Maintain benefits register  Manage stakeholder work is completed
of the program and coordinate the  Report benefits changes and benefits are
deliverables to create incremental accruing
benefits.
 Ends when planned benefits are achieved
or a decision is made to terminate the
program
5. Closing the Program Transition
 Purpose: controlled closedown of the  Consolidate coordinated
program benefits
 Transfer the ongoing
responsibility
 Stakeholder
Lifecycle Phases Benefits Management Management Program Governance
Gate Reviews – focus on strategic alignment,
investment appraisal, monitoring and control of
opportunities and threats, benefit assessment,
and monitoring the portfolio outcomes
Governance – monitors the progress of the
program and delivery of the coordinated benefits
from its component projects.
10 Common Program Management Controls

CONTROL DEFINITION
Standards Widely recognized and accepted standards.
Program specific standards including quality, schedule, training, WBS
Policies and Procedures Implement standards, processes and work methods that result in the work required by the
program being performed.
Program Plans Formulates and documents the management strategy and approach for the program
 Cost
 Communications
 Procurement
 Quality
 Resource
 Risk
 Schedule
 Scope
 Staffing
Reviews Risk reviews, program management reviews, phase-gate reviews
Oversight By an executive board or individual executive. Result in sign-off by the stakeholder to confirm
that requirements are met.
Audits Require that information be substantiated, require demonstration that process, alignment
with criteria. Includes control point, financial process, risk response and quality audits.
Contracts Contract terms and clauses that are pre-developed and approved for inclusion.
Directories and Distribution Standard lists established and maintained to control the routing and recipients of formal
Lists communications and messages sent to program stakeholders.
Documentation Style guides, templates.
Regulations Environmental legislation, government regulations and laws, legal opinions, legislative
requirements and restrictions, and organizational legislations.

Formulas
 Calculating the number of lines of communication in the program stakeholder network
o (n * (n – 1 ) / 2 (n=# of stakeholders NOT including the program manager)
Definitions

Term Definition
Assumptions Factors considered true, real or certain
Process Asset Library (PAL) Organizational process assets
Program Stakeholder Defining the individuals and organizations whose interests may be positively or negatively
Management affected by program outcomes
Program Governance Developing, communicating, implementing, monitoring, and assuring the policies, procedures,
organizational structures, and practices associated with a specific program
Program Management Themes Benefits Management
Program Stakeholder Management
Program Governance
Execution Management Managing the daily flow of forward work progress by the delivery team
Management by Projects Treating aspects of ongoing operations as projects in order to apply project management
techniques to them
Metric A quantitative standard of measurement typically used in programs and projects to measure
performance and progress
Operations Ongoing, repetitive activities producing the same result or providing the same service
Organization Group of persons organized for some purpose such as performing work
Interrelated activities in an organization are grouped either as projects or operations
Performing Organization The enterprise whose personnel are most directly involved in doing the work of the program
Portfolio Collection of components grouped together to facilitate effective management of the work to
meet strategic business objectives
Program Group of interrelated projects managed in a coordinated way to obtain benefits and control not
available from managing them individually
Project Temporary endeavor undertaken to create a unique product, service or result
 Term Definition
Portfolio Management Identify, authorizing, managing and controlling a portfolio to achieve strategic business
objectives
Program Management Centralized, coordinated management of a program to achieve the program’s strategic benefits
and objectives
Project Management Applying knowledge, skills, tools and techniques to project activities to meet the project
requirements
Process A series of actions brining about a results
Program Governance Board Group responsible for ensuring that program goals are achieved and proving support for
addressing program risks and issues.
Program Director Individual with executive ownership of the program or programs
Program Manager The individual responsible for managing the program
Program Office The organization that provides support of individual program management teams or program
mangers by handling administrative functions centrally
Project Manager Individuals responsible for managing the individual projects within the program
SMART Specific, Measurable, Actual, Realistic, Time-Based
Stakeholder Individuals and organizations whose interest may be positively or negatively affected by program
outcomes (directly or indirectly)
Sub-Project Smaller portion of an overall project created when a project is subdivided into more manageable
components or pieces.
Technique A defined systematic procedure employed by a human resource to produce a product, result or
deliver a service
Tool Something tangible used in performing an activity to produce a project or result
 Term
Program Life Cycle
Program Governance
Pre-Program Set Up
Program Setup
Establishing Infrastructure
Delivering Incremental Benefits
Closing the Program
Phase Gate
Phase Gate Review
Benefits
Definition
Five phases and phase gate reviews with overarching governance
1. Pre-Program Setup
2. Program Setup
3. Establish Program Management and Technical Infrastructure
4. Deliver Incremental Benefits
5. Closing
Process of developing, communicating, implementing, aligning, monitoring and assuring the
policies, procedures, organization structures, and practices associated with a given program.
 Through phase gate reviews, monitors the progress of the program and the delivery of
coordinated benefits from the component projects.
 Creating and using a framework for efficient and effective decision-making
Objective is to establish a firm foundation of support and approval for the program. Initiates the
program with a mandate or program brief detailing the benefits that the program is expected to
deliver. (Program Management Lifecycle Phase 1)
Purpose is to build a detailed “roadmap” (program management plan) that provides direction on
how the program will be managed and defines the programs key deliverables and components.
(Program Management Lifecycle Phase 2)
Purpose is to establish the program management and technical infrastructure that will support
the program and its constituent projects as they deliver the expected benefits for the program.
(Program Management Lifecycle Phase 3)
Initiate the component projects of the program and coordinate the deliverables to create
incremental benefits. (Program Management Lifecycle Phase 4)
Controlled closedown of the program and transition of the artifacts, benefits monitoring and
ongoing operations to other groups. (Program Management Lifecycle Phase 5)
A pre-defined milestone at the end of a phase with predetermined exit criteria.
Pre-defined milestones that provide an objective check against exit criteria of a completed phase
to determine the readiness to proceed to the next phase in the program lifecycle.
An outcome of actions and behaviors that provides utility to stakeholders
 Term Definition
Benefits Management Defining and formalizing expected benefits a program is intended to deliver. (Lifecycle Theme 1)
Benefits Identification  Identify and qualify business benefits
Benefits Analysis  Derive and prioritize components
 Derive benefits metrics
Benefits Planning  Establish benefits realization plan
 Establish benefits monitoring
 Map benefits into program plan
Benefits Realization  Monitor components
 Maintain benefits register
 Report benefits
Benefits Transition Consolidate coordinated benefits
Transfer the ongoing responsibility
Milestone A reference point that marks a major event in a project and is used to monitor the project's or
program’s progress.
Critical Success Factor The term for an element that is necessary for a program or project to achieve its objectives. It is
a critical factor or activity required for ensuring the success.
Program Management Plan Consistent and coherent set of documents that can be used to guide both program execution
and control
Artifact Tangible by product produced during the program/project lifecycles and product/deliverable
development.
Mandate An obligation handed down by an inter-governmental body.
Process Group Group of processes that are performed as part of a phase. Thirty-nine processes.
Initiating Defines and authorizes the program or a project within the program and produces the program
benefits statement and benefits realization plan. Three processes.
Planning Plans the best alternatives courses of action to deliver the benefits and scope that the program
was undertaken to address. Twelve processes.
 Term Definition
Executing Integrates projects, people, and other resources to carry out the plan for the program and
deliver the program’s benefits. Seven processes
Monitoring and Controlling Request that the program and its component projects be monitored against the benefit delivery
expectations and that their project be regularly measured to identify variances from plan.
Coordinates corrective actions, when necessary, to achieve program benefits.
Closing Formalizes acceptance of a project, service, or benefit/result; brings the program or program
components (e.g., project) to an orderly end.
Knowledge Area Key areas of expertise and specialization that are implemented in the program and project
management lifecycles by the processes.
Integration Management Identifying, defining, combining, unifying and coordinating program or project management
activities.
Scope Management Defining and controlling what is and is not included in the program or project.
Time Management Ensuring timely completion of the program or project.
Cost Management Ensuring that the program or project is completed within the approved budget by planning,
estimating, budgeting and controlling costs.
Quality Management Ensuring the program or project satisfies the needs for which it was undertaken
Human Resources Management Organizing and managing the program or project team.
Communication Management Ensuring timely and appropriate generation, collection, dissemination, storage and ultimate
disposition of program or project information.
Risk Management Systematically identifying, analyzing and responding to program or project risks.
Performance Management Acquiring or purchasing goods and services to attain program or project scope.
Value Realization Obtaining value from the investment, such as savings in time or money
Value Analysis Optimizing cost performance by identifying required functions, establishing values for those
functions, and providing functions at lowest possible costs.
Balanced Scorecard Measuring whether activities are meeting objectives of vision and strategy in four categories: 1)
financial, 2) customer, 3) internal business processes and 4) learning/growth
Precision Degree to which repeated measurements under unchanged conditions show the same results.
 Term Definition
Accuracy The degree of closeness of measurements of a quantity to the quantity’s actual (true) value.