The concepts of a project portfolio , program , and chain are key concepts in project management, but they have significant differences that often impact the understanding of their roles and functions. In this article, we will look at these differences and find out what distinguishes a program from a project portfolio and what is the special feature of a chain of projects.

What is a project portfolio?

A project portfolio is a collection of all projects that an organization is planning or currently conducting. A portfolio may include projects with different objectives, priorities, and completion dates.

The goal of portfolio management is to optimally allocate resources, control risks and adapt to changes in the organization's business needs.

The Project Management Institute (PMI) defines this concept as: “ A project portfolio is a set of projects or programs and other activities that are grouped together for the purpose of effectively managing those activities to achieve strategic objectives.”

A project portfolio is typically managed at the senior management level of a company and helps them make strategic decisions regarding resource allocation, funding, and project priorities. Here are some examples of projects that may be included in an organization's portfolio:

1. New product development. A project aimed at creating and introducing a new product to the market. Includes the stages of research, development, testing and marketing.
2. Process improvement. A project aimed at optimizing an organization's business processes to increase efficiency and reduce costs.
3. IT infrastructure. Projects related to updating or modernizing the organization’s information technologies and infrastructure.
4. Market expansion. Projects aimed at entering new markets or expanding the organization's market share.
5. Sustainable development activities. Projects related to the implementation and development of practices aimed at sustainable development, such as reducing carbon emissions or increasing energy efficiency.
6. Personnel development. Projects related to the training and development of employees, including training programs, training and leadership development.

For project-oriented companies, the project portfolio is usually managed by portfolio managers. Their portfolio may include different types of projects, varying in scale, complexity, and related to different areas of the business or areas of the organization. Here are some of the most common types of project portfolios that portfolio managers may manage:

1. IT portfolio. This is a portfolio that contains projects related to information technology or the creation of automated systems. It may include software development, implementation of new systems, infrastructure upgrades, and other projects related to technological solutions.
2. Innovation portfolio. This portfolio focuses on projects aimed at developing and implementing new products, services or processes. It allows the organization to develop and implement innovations to improve competitiveness and meet customer needs.
3. Capital investment portfolio. Includes projects related to major capital investments, such as new construction, real estate development, modernization of production facilities, etc. The portfolio manager in this case manages projects related to the main assets of the organization.
4. Business Process Portfolio. This portfolio includes projects aimed at optimizing and improving business processes in an organization. It may include process automation, implementation of effective management systems, business process reengineering, and other projects related to improving operations.
5. Strategic portfolio. This portfolio concentrates projects directly related to the key strategic goals and initiatives of the organization. The portfolio manager in this case manages projects aimed at implementing the strategy and achieving the long-term goals of the organization.

What is a project program?

A program is often viewed as one large project consisting of several interrelated projects. However, according to the generally accepted definition, a program is several projects united by a common strategic goal or business value. Unlike a portfolio, where projects may have different goals, a program has integrity and coherence, since all its projects must be aimed at achieving a common strategic goal.

A program of projects , according to the Project Management Institute (PMI ) , is "a group of related projects brought together to provide coordinated management and to achieve benefits that would not be possible by implementing each project separately."

A program brings together several projects to synergistically use resources, align activities, and achieve common goals. Program management includes strategy development, project coordination, risk management, and ensuring that program objectives are met.

One of the key features of a program is its flexibility in terms of completion date. Unlike a project, which necessarily has a specific completion date, a program can be long-term and continue for an indefinite period of time. This is because the program objective may be longer and include several stages or phases that can be completed as strategic milestones are reached.

What is a project chain

In the field of project management, there are also project chains (Project Chain), which are a sequence of related projects, where the result of one project is the input data for the next project.

In this chain, projects are closely related to each other, and the successful completion of each project is a prerequisite for the start and successful continuation of the next project. The chain of projects is not a portfolio, but it may well be a program.

Project chains are used to achieve complex goals or results that cannot be achieved by one project in isolation. Instead, each project in the chain contributes to the overall goal, so all projects must be carefully planned and coordinated.

One example of a chain of projects would be the process of developing a new product. Starting with research and development, then moving on to design, production, marketing, and implementation, each stage is a separate project that depends on the results of the previous stage.

Managing a chain of projects requires careful planning, control, and coordination between projects. Each project must be carefully coordinated with previous and subsequent projects to ensure a continuous flow of work and the achievement of a common goal.

Application of the project program in hybrid project technologies

In the context of iterative-incremental project work technology, the idea of ​​a chain or program of projects can be used to effectively manage work on projects.

Instead of looking at each complex and large-scale project separately, it can be divided into a logical chain or program of projects, where each mini-project depends on the results of the previous one and serves as the basis for the next one.

Applying the idea of ​​a chain or program of projects in iterative-incremental technology has several advantages:

1. Logical sequence. The chain of projects ensures logical sequence and dependency between projects. Each project builds on the results of the previous one, which helps ensure continuity of work and achievement of set goals.
2. Planning and coordination. Using a project chain allows for more efficient planning and coordination of work. Resources and time can be allocated based on a logical sequence of projects, helping to avoid overlaps and conflicts.
3. Risk management. The project chain allows for more effective risk management. The results of each project are reviewed and used to determine further steps. This allows for problems to be identified and resolved early on and overall project risks to be reduced.
4. Iterative development. The chain of projects is combined with the iterative nature of the iterative-incremental technology. This allows you to achieve faster results at each iteration and gradually move towards the overall goal.

Thus, the use of the idea of ​​a chain or program of projects in the iterative-incremental technology of project work contributes to more effective management and achievement of results within the framework of complex projects.

Conclusion

Together, all of the concepts described above enable organizations to more effectively manage projects, achieve strategic goals, and ensure business continuity. Portfolio managers play an important role in managing project portfolios, programs, and project pipelines by coordinating work, identifying dependencies and risks, and making decisions based on the organization’s strategic goals.

Ultimately, effective portfolio, program, and project pipeline management contributes to an organization's effectiveness, flexibility, and success in achieving its goals and implementing its strategies.

We hope this article has helped you understand the specifics and subtleties of the concepts of "project portfolio", "project program" and "project chain". If you have any questions, ask them in the comments.