What Is a “Program” in Project Management?
In some cases, it’s important that a group of projects is managed in a coordinated way to ensure that value is achieved. In project management terms, this collection of projects becomes a program.
Like a project, a program is a temporary organization, so when the related projects are complete, the program is complete.
The Project Management Institute (PMI) describes program management in its PMBOK Guide as:
“The application of knowledge and skills to achieve program objectives and to obtain benefits and control not available by managing related program components individually.”
What Does a Program Manager Do?
Program management is not simply managing multiple projects—it’s more strategic than that. The program manager doesn’t micromanage those projects; instead, they ensure that the right work is moving between the right projects at the right points in time.
Key Roles of a Program Manager:
- Focuses on business benefits throughout the program, starting from its inception.
- Works with project managers who complete the actual project work.
- Ensures that only projects aligned with intended benefits are included in the program. ****Projects not providing value are realigned or removed.
- Oversees dependencies between projects and creates program-level plans, such as: ****Master schedule for project dependencies. ****Program risk management plan for program-level risks. ****Program communication plan for information flow.
The program manager is not managing projects directly but is providing oversight to make sure the pieces of each project are completed effectively and efficiently.
Focus on Benefits and Change Management
- Ensures benefits realization, focusing on what can be achieved from the collection of projects.
- Works on organizational change management, ensuring benefits are transitioned into operations and sustained over time.
- Keeps projects aligned with business strategy, adjusting when strategies change and communicating updates to teams.
What Is a Portfolio?
A portfolio is a collection of projects and programs managed as a group to achieve strategic objectives.
- An organization may have one portfolio (all projects, programs, and operational work).
- Or it may establish several portfolios for project selection and investment decisions.
According to PMI’s PMBOK Guide, a portfolio includes:
“Projects, programs, other portfolios, and operations managed as a group to achieve strategic objectives.”
Organizations must decide which projects are the right ones to focus on, since capacity (time, people, money, space, equipment) is limited. The key question becomes:
“Are we doing the right projects?”
What Does a Portfolio Manager Do?
Portfolio management is the centralized management of one or more portfolios to achieve an organization’s strategic objectives.
Realities of Portfolio Management:
- Resources are limited (dollars, people, space, equipment).
- Several potential projects and programs exist, but the organization must choose: ****Which are the right ones? ****In what order should they be completed?
Responsibilities of a Portfolio Manager:
- Looks at projects and programs not only individually, but holistically, ensuring alignment with organizational goals.
- Maintains balance in the portfolio: **Keep the business running (“lights on”). **Develop new opportunities. **Take risks but not so much that everything could be lost.
- Ensures prioritization and selection of the right mix of projects/programs.
Monitoring and Controlling
Portfolio composition is not a one-time decision. Instead, it requires regular evaluations:
- A project’s priority may drop, allowing others to move up.
- A project may be temporarily or permanently removed.
- Reprioritization happens if a project or program no longer aligns with organizational strategies.
This ongoing process ensures that projects always align with the organization’s goals, strategies, and objectives.
