Portfolio Management, Program Management and Project Management - How are they related?

Let us discuss on Portfolio management and Program management which are closely related to Project Management.Portfolio management and Program management facilitates effective control and management of projects.

Portfolio Management:
In financial investment terms, portfolio is a single place to view collection of investments held by individuals and it is used to do investment analysis.
A Portfolio in project management terms refers to managing collection of projects or programs and other work that is grouped together. The projects or programs of a portfolio may or may not related to each other. Usually these groupings are done for betterment of the executing organization by allocating, sharing & prioritizing resources across constituting programs or projects.

Program Management:
If executing of different projects are not beneficial to the organization then these projects will be managed together through a Program. When executing related projects in a coordinated way as a program, it gives more control over them. Programs may include elements of related work outside the scope of the discrete projects in the program. Program management can be viewed as the centralized, coordinated management of a group of projects to achieve the program’s objectives and benefits.
Generally, grouping of projects into a Program or Portfolio depends on different key factors.
1) ease of governance
2) Alignment to vision, mission and strategy of organization
3) accountability
4) optimizing return on investment
5) availability of infrastructure & resources
6) progressive elaboration
7) organization’s priorities, etc.

Below is the general representation of relationships between Portfolio, Program and Project.

What is Closing Process Group?

Closing process group means, offically closing the project by getting the formal approval, acceptance from the project sponsor and stakeholders. Secure and store all documents related to the project. Document the lessons learned, issues and store for future referrals. And it states that the project is ready to move to next phase which is usally the operational phase.

PMBOK 3 definition:
Closing brings a formal, orderly end to the project phase or to the project itself. Once the project objectives have been met, the Closing process group starts, it is an important processes that collects all the project information and stored for future reference. Contract closeout occurs in this process group, and formal acceptance and approval are obtained from project stakeholders.

Objectives
The objectives of the Closing Project domain are as follows:
1. Obtain Final Acceptance for the Project

2. Obtain Financial, Legal, and Administrative Closure

3. Release Project Resources

4. Identify, Document, and Communicate Lessons Learned

5. Create and Distribute Final Project Report

6. Archive and Retain Project Records7. Measure Customer Satisfaction

Knowledge Areas & Processes

What is Monitoring and Controlling Process Group?

As usual we lookin layman term first before PMBOK 3, the Monitoring & Controlling process group helps to track the project progress with the purpose of ensuring project is on track to meet the project objectives, identify issues & problems, find resolutions to sort out the identified issues & issues, tracks project schedule, status, cost.

PMBOK 3 definition as follows.

The Monitoring & Controlling process group is where project performance measurements are taken, analysed and determine the project progress is align with the project plan. This will assist to identify the issues & problems and take corrective actions to meet the project objectives. While taking corrective actions, the PM may re-visit to the earlier process groups such as planning, executing.

Objectives
The objectives of the Monitoring & Controlling the Project domain are as follows:
1. Measure Project Performance.

2. Verify and Manage Changes to the Project

3. Ensure Project Deliverables Conform to Quality Standards

4. Monitor all Risks

Knowledge Areas & Processes

What is Executing Process Group?

In layman term, the Executing process group is the place where all the project works are taking place. It involves in carrying out all the works which are planned during the Planning process group.

PMBOK 3 definition as follows.

The Executing process group is the place where the PM putting the project management plan into action mode and makes things really happening. PM works with project team to acheive the project objectives. It tracks the the project plan to ensure the future execution of project plans stays in line with project objectives. The Executing process group will utilize the most project time and resources, and as a result, costs are usually highest during the Executing process. PMs faces more conflicts, issues in this process group.

Objectives
The objectives of the Executing the Project domain are as follows:
1. Execute Tasks Defined in Project Plan
2. Ensure Common Understanding and Set Expectations
3. Implement the Procurement of Project Resources
4. Manage Resource Allocation
5. Implement Quality Management Plan
6. Implement Approved Changes
7. Implement Approved Actions and Workarounds
8. Improve Team Performance

Knowledge Areas & Processes

What is Planning Process Group?

In layman term, the Planning process group is the place where the PM, project teams decides what they want, how to do, when to do, who to do, money needed, time needed and so on. Once these are decided, PM will pen down every thing in formal document & gets every one’s agreement and move to next phase. This process group is the key phase in all projects and decides the fate of the project.

As usual now, we will go for PMBOK 3 definition.

The Planning process is the process group of formalizing and confirming the project goals and objectives. It also creates the project management plan to achieve project objectives.

Planning process group literally visits & covers all areas of project management. It includes budgets,activity definition, scope planning, schedule development, risk identification, staff acquisition, procurement planning, and so on. Planning process group is the one group revisited during various phases of the project.

Objectives
1. Define and Record Requirements, Constraints, and Assumptions
2. Identify Project Team and Define Roles and Responsibilities
3. Create the Work Breakdown Structure (WBS)
4. Develop Change Management Plan
5. Identify Risks and Define Risk Strategies
6. Obtain Plan Approval
7. Conduct Kick-off Meeting

Knowledge Areas & Processes

Planning process group processes covers all nine knowledge Areas.

What is Initiating Process Group?

In layman term, the Initiating process group is the phase where all pre-requisite activities will be carried out in order to do a project. These tasks involves identify and get the project resources including PM, conduct due-diligence process about the project, perform initial cost estimation, submit the proposal(i.e Project Charter) to management and obtain the approval to start project. At the end of this phase, the PM will have the resources, money, approval to start the real work of the project.

Guys, I have given the layman term description in very low level just to quickly grab the essence of the Initiating process group.

For exam purpose, refer the proper PMBOK 3 definition not my layman description. PMBOK 3 definition as follows:
Initiating acknowledges the beginning of a project or a project phase. The followings will occur in this phase.
1. Project Manager assignment

2. Project Manager receives the authorization to start/begin project or project phase

3. Project Manager receives the approval to commit the organization or company’s resources to work on the project or project phase

Objectives
1. Conduct Project Selection Methods

2. Define Scope of the project

3. Identify and define Project Risks, Assumptions and Constraints of the project

4. Identify and Perform Stakeholder Analysis

5. Develop Project Charter for the project6. Obtain Project Charter Approval

Knowledge Areas & Processes
Refer the PMBOK 3 and your Project Management Study material for more details.

What is the flow of Process in PMP?

Project Management consists of the following five process groups:
1. Initiation
2. Planning
3. Executing
4. Monitoring and Controlling
5. Closing

Its important to know and understand the flow of these process flow. Each process group consists of one or more knowledge areas and every process in the knowledge area receives one or more inputs. Similarly one or more tools and techniques are applied on these inputs during this process and results in the generation of one or more outputs.

Normally, a process receives the inputs from its preceding process and generates outputs which in turn will be fed to successor process as inputs.