Tag Archives: Project

How do we distinguish between project, program, and portfolio?

The following content is from Chapter 2 of Leading Megaprojects, a Tailored Approach. We want to define these terms for the context of the book. Further, we also post them here since various practitioners might have different definitions. We will be posting other definitions in the next few days. For today, we will define ‘what is a project,’ ‘what is a program,’ and ‘what is a portfolio.’

In the next few sections, we address each question, and we close with the link of a project to portfolio management.

What is a Project

The first question is about ‘what is a project,’ and here are the general points that we use to define a project:

  • A project could be anything we create from scratch or a significant modification to an existing system. Therefore, a project would require substantial effort in terms of development and delivery.
  • Also, it has a specific product (output), objectives (outcome), defined timeline (schedule), budget, and various other parameters (resources, quality, risks, etc.).
  • As a result, a project is an investment of time and money to deliver a product or service (output). Further, it must provide the capabilities to enable the realization of benefits (outcome).

Further, more on what is a project

  • The project owner can verify and accept the output at completion and closeout. However, he often cannot validate the outcome until months or years after the end of the physical work.
  • Finally, a project can be independent or part of a program. If it is part of a program, it must align with the program objective. Which in turn must align with the organizational strategic direction. On the other hand, if the project is independent, it must directly align with the organization’s strategic direction.

What Is Not a Project

In the previous message, we defined ‘what is a project.’ Consequently, we need to clarify the definition further by stressing what is not a project.

  • It is common knowledge that normal, routine, repeated actions (tasks)[1] are not projects. For example, something that requires a typical, repetitive business or manufacturing process to produce a gadget or X item would not be a project.
  • A phase of a project, or a stage, is not a project; more on this later.
  • Further, tasks that are part of a project are not projects, regardless of how big the task might be. For example, the graphical design for this book is not a project,[2] it is a piece of writing and publishing this book project, which one could label as a sub-project.

Next, let us add more information.

More information

Consequently, having said the above, we can still apply the project management process[3] on a piece of the project, be it a phase, stage, or a sub-project. The processes and process groups, such as the PDCA Cycle,[4] apply for tasks, sub-projects, or stages of a project. Consequently, it is vital to understand this point. Being able to use these processes on a piece does not make the piece a whole project. We stress this point because many practitioners confuse the processes and process groups from PMI® and ISO® as project phases.[5] Therefore, those who think that the process groups are phases mistake the process groups as the project life cycle, which is a fundamental problem. However, one might exclude micro-projects.

What is a Program

Next, we define the program, and here are the general guidelines that we follow to define a program:

  • A program is a group of related projects and may include other operational work.
  • The projects are related to a common business objective, often a long-term strategic objective that aligns with the organizational strategic direction, mission, and vision.
  • However, while working on the program, the organization may adjust the projects. For example, accelerating or slowing one or more projects in the program. The changes would be driven based on organizational needs and various other factors.[6]
  • The number of projects within a program could also increase or decrease as the organization collects feedback from the ongoing work and completed projects. Some might call this Agile Program Management, but we call it an adaptive project and program management. It is being nimble or adopting agility (discussed later in this chapter).
  • Finally, each project within the program must deliver some benefits. This would be in addition to the incremental or collective benefits of the entire program. This point might be controversial because we often see posts insisting that the business value exists only at the program level.

What is a Portfolio

We continue with the definitions and now we address what is a portfolio.

In this book, I do not refer to the term portfolio management often, because I see it as part of organizational project management. Also, a part of the management of projects and programs in the organization. Therefore, portfolio management is the highest level in the context of project management. It includes managing the overall portfolio, which consists of various change initiatives, strategic project management, project selection, and termination. In CAMMP™, portfolio management is active in the Discovery Phase, first with the idea and concept. Then, it is active at Stage Gate 2, in which the initial project authorization is granted through a portfolio assessment. During the project life cycle, portfolio management is active via the organizational and project governance.

Project Management and Portfolio Management

CAMMP Megaprojects, Program Management, Portfolio Management, What is a Project

As a result of the above definitions, the above image is the project life cycle for CAMMP MP (Megaprojects). Although this image is specific to a project, the image indirectly shows how a project integrates with portfolio management. Finally, portfolio management is active during the discovery phase, at project review and approval at stage gate 2.


[1] For differentiating tasks from projects, please refer to this blog article http://blog.sukad.com/how-to-differentiate-between-task-and-project/.

[2] We realize that the graphic designer, especially if an outside agency, might view the graphic design as their project. That is, for the service provider, the graphic design work from initial contact with the client until the successful completion of the work could be viewed as a project—a project for the service provider, not the client; more on this later in the chapter.

[3] Such as those described in ISO 21500 (Guidance to Project Management) or the PMBOK® Guide (A Guide to the Project Management Body of Knowledge®).

[4] Plan–Do–Check–Act from Total Quality Management (Deming, 195#).

[5] This is possibly one of the most common areas of confusion in the project management community today.

[6] One might consider these adjustments as being driven by the emergent strategy generated from feedback and monitoring actual performance or responses.

What does the term project mean, and how to manage the different types of “projects”?

The term project could be used for anything, from going out to dinner to building a nuclear power plant. So what does the term project mean? We will address this question from different perspectives. We will discuss the term from a service provider viewpoint and a project owner perspective. Further, we will split the project owner perspectives and consider the question from an existing organization viewpoint and from the perspective of a new investment. In this article and video, we will also have a peek into asset management. Finally, we address the question, do all “projects” require project management?

Continue to read and look for the video. Although the article and video are related, they do complement each other; not duplicates. In another word, the article is not the transcript of the video.

What triggered this article and video is a discussion with a colleague, who is participating in a SUKAD PM Quest Course, Mr. Mohamed Al-Awadhi. Mohamed is using the course and the CAMMPTM Model to launch a new business, a venture.

A long article but we think it is worth your time.

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Program Life Cycle

How does SUKAD differentiate a project from a program?

This post includes excerpts from a Case Study that we will be publishing later this year. The post is from Chapter 1. The Case Study, let us call it MLP, or ML Program for now.

Project or Program

The question of project or program (project management or program management) often confuses practitioners of project management. This case study is not about project management versus program management, therefore, we will only offer the definitions that we follow in SUKAD Group, which are the basis for all of our work and the context in this case study. Continue reading

Did the PMBOK indirectly change the definition of a project?

This is a follow-up article to the last one on project success.

Background

  1. We did write in the past a few articles on the PMBOK Guide – what is good about it, what is missing, its inconsistencies, its gaps, and practitioners misunderstandings.
  2. A few weeks ago, PMI officially released the fifth edition of the PMBOK Guide
  3. This article focus on potential contradictions in a couple of the definitions in the Guide. Continue reading

How to differentiate between task and project?

A while back a colleague and client asked me “how can we differentiate between task and project?” For many, that may seem like a simple question but is it? Why the confusion?

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