In this post we explore the differences between the processes of Programme and Portfolio Management in detail. We take a look at the Objectives of both Portfolio Management and Programme Management, and how each fits in to a businesses Project Management structure…

Programme Management Objectives:

Programme Management is all about managing multiple related projects which all work towards the same business objective. Essentially, a programme is required when one project is not large enough to manage the business objective, and multiple projects are required. If one project manager doesn’t have enough hours in his or her working week to handle all of the requirements, then multiple projects, each with their own Project Manager and project team are required.

To control this group of projects effectively, we need an overall Programme, and a Programme Manager to look after the whole piece.

To make this clearer – the hierarchy of the whole programme is:

Programme > Project > Phase > Task

The programme does not (and could not) take on the day to day running of individual projects. Their job is to make sure that all of the projects are running to schedule and will meet their own project objectives, within the larger business objective or strategy (programme objective).

The typical activities of a Programme Manager are therefore:

• Defining roles and responsibilities
• Setting baselines
• Planning Programmes
• Prioritising Projects
• Reporting on Progress reporting
• Communicating with Stakeholders
• Benefits Management
• Risk Management
• Quality Management
• Issue Management
• Closing the Programme

Portfolio Management Objectives

Portfolios are groups of projects which may or may not be related being carried out by the organisation at one time – these might be divided in to business areas such as IT, HR or Operations.

The Objective of Portfolio Management, therefore, it to provide a ‘helicopter view’ of all of the projects being undertaken across the business by business area.

Rather than just looking at one business objective like Programme Management does, Portfolio Management is useful for high level decision-makers within an organisation because it gives them a snapsh0t of all projects. This helps the business to prioritise what is most important, and ensures that no two projects are carrying out very similar tasks, thereby wasting resources.

The key activities of a Portfolio Manager are therefore:

• Strategic Alignment of Projects
• Reporting on Progress to the Board
• Managing Risk

Unlike PRINCE2 which governs how to run individual projects, Programme Management covers controlling groups of related projects (if they are unrelated projects then it becomes portfolio management).

When business objectives grow and cannot be achieved with a single project, the objective must be split down into smaller projects to be managed individually.

The smaller projects will all be designed to achieve the longer term business objective, and whilst each project is likely to have its own project manager, it is the Programme Managers job to ensure that all the projects achieve their targets and objectives.

What does the Programme Manager do?

As the running of individual projects is the responsibility of the Project Managers, the Programme Managers’ responsibilities include:

• Setting the baseline
• Agree roles and responsibilities
• Programme Planning
• Prioritisation
• Stakeholders communication
• Progress Reporting
• Benefits Management
• Quality Management
• Risk Management
• Deal with Issues relating to the programme as a whole
• Closing the Programme

If you would like to discuss your requirements for MSP training please give us a call on 01273 622272.