Every project creates a unique product, service, or result. The outcome of the project may be tangible or intangible.
A project can create:
• A product, service, an improvement, or a result
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.
These five Process Groups are:
• Monitoring and Controlling, and
• 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:
○ Resources, and
management team needs to focus.
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
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.
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 inter-dependencies 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.
Program management is the application of knowledge, skills, tools, and techniques to a program in order to meet the program requirements and to obtain benefits and control not available by managing projects individually.
together as a power program.
Portfolio management refers to the centralized management of one or more portfolios to achieve strategic objectives. Portfolio management focuses on ensuring that projects and programs are reviewed to prioritize resource allocation, and that the management of the portfolio is consistent with and aligned to organizational strategies.
• 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
• Directive: Directive PMOs take control of the projects by directly managing the projects. The degree of control provided by the PMO is high.
• 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.
• The project manager focuses on the specified project objectives, while the PMO manages major program scope changes, which may be seen as potential opportunities to better achieve business objectives.
• The project manager controls the assigned project resources to best meet project objectives, while the PMO optimizes the use of shared organizational resources across all projects.
• The project manager manages the constraints (scope, schedule, cost, quality, etc.) of the individual projects, while the PMO manages the methodologies, standards, overall risks/opportunities, metrics, and interdependencies among projects at the enterprise level.
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.
Projects can intersect with operations at various points during the product life cycle, such as:
• At each closeout phase;
• When developing a new product, upgrading a product, or expanding outputs;
• While improving operations or the product development process; or
• Until the end of the product life cycle.
Operations are ongoing endeavors that produce repetitive outputs, with resources assigned to do basically the same set of tasks according to the standards institutionalized in a product life cycle. Unlike the ongoing nature of operations, projects are temporary endeavors.
Operations management is an area of management concerned with ongoing production of goods and/or services. It involves ensuring that business operations continue efficiently by using the optimum resources needed and meeting customer demands. It is concerned with managing processes that transform inputs (e.g., materials,components, energy, and labor) into outputs (e.g., products, goods, and/or services).
direction provides the purpose, expectations, goals, and actions necessary to guide business pursuit and is aligned with business objectives. Project management activities should be aligned with top-level business direction, and if there is a change, then project objectives need to be realigned. In a project environment, changes to project
objectives affect project efficiency and success.
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
individual needs. As project management is a critical strategic discipline, the project manager becomes the link between the strategy and the team. Projects are essential to the growth and survival of organizations. Projects create value in the form of improved business processes, are indispensable in the development of new products and services, and make it easier for companies to respond to changes in the environment, competition, and the marketplace. The project manager’s role therefore 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
• Team building,
• Decision making,
• Political and cultural awareness,
• Trust building,
• Conflict management, and