Business language uses the terms “project”, “program”and “portfolio” every day. These words are often interchangeable and while they share some similarities, there are key differences between them.
What is Project Management?
A business project is a temporary task that has a start-and-end date. A project is a focused effort that aims to achieve a specific goal, such as a new product or service, or a marketing strategy. A project manager’s role is to balance the scope of work and meet the objectives. They must also be able to manage the available resources, such as budget and time.
Project managers might have tasks such as:
Define your project goals
Outline budget requirements
Schedule and break down tasks
Communicate milestones of your project
Clients or the upper-management usually regulate project guidelines. Sometimes requests can be difficult to incorporate. To meet targets and deliver reliable output, project managers use a variety of techniques, tools and processes. These initiatives are 28 times more cost-effective than those that don’t.
What is Portfolio Management?
Many businesses group projects together to ensure a projected ROI. This is called a program. Many companies have multiple portfolios that contain projects and programs.
Portfolio managers have the goal of selecting the right projects. Many businesses only take on a small number of projects eachyear. Every task must have a strategic return once it is approved.
Aportfolio manager’s to-do list might include tasks like:
Prioritize and align projects
Real-time analytics available
Manage financial resources
Make sure you plan for what-if scenarios
Each project must be viewed by a portfolio manager. Are resources being used effectively? Are tasks completed on time? They must also consider a holistic strategy that focuses on the company’s overall goals.
What is the difference between Portfolio and Project Management?
There are many key differences between portfolio and project management. Portfolios are more permanent and have a unique purpose, while projects are temporary and can be canceled at any time. Once a project deadline is met, it will end. Portfolios can span years of existence.
While a project manager may focus on the specific objectives of a project, portfolio managers examine all projects and programs to determine priorities and make new selections. Portfolio managers look at the whole picture, while a project manager is focused on the scope of the project. They balance constraints and manage stakeholders. How can profits and resources be maximized for the organization?
A project manager will be ableto admire the results of one objective, regardless of whether it is a new product or service. Portfolio managers want company-wide benefits such as a decrease in costs and better ROIs.
How to manage Portfolios and Projects Successfully
Portfolio managers and project managers have different goals, so they will need unique strategies to succeed.
Project Management
A successful project manager is one who constantly re-evaluates the situation. To save time and improve quality, think about what you can do to improve the project. Identify inefficient team members and delegate tasks.
A good project manager will avoid overtime. Overtime is not a good idea in a business culture. All projects will be delayed if all employees work overtime. Successful management is about prioritizing time and controlling projects.
Portfolio Management
The key to successful portfolio management is seeing the bigger picture. You need to look at multiple projects and separate the good from the ugly. Find patterns and c
