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Understanding Project Definitions

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A project is a temporary endeavor with a defined beginning and end, undertaken to create a unique product, service, or result. Projects are closely related to programs and portfolios, with p…

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  • What is a Project?
  • Relationships among PMO Components
  • What is Project Management?
  • Project Management Office

What is a Project?

A project is a temporary endeavor undertaken to create a unique product, service, or result.


The temporary nature of projects indicates that a project has a definite beginning and end.

The end is reached when the project’s objectives have been achieved or when the project is
terminated because its objectives will not or cannot be met, or when the need for the project
no longer exists. A project may also be terminated if the client (customer, sponsor, or
champion) wishes to terminate the project.

Every project creates a unique product, service, or result. The outcome of the project may be
tangible or intangible.

A project can create:

 A product that can be either a component of another item, an enhancement of an item,


or an end item in itself;
 A service or a capability to perform a service (e.g., a business function that supports
production or distribution);
 An improvement in the existing product or service lines (e.g., A Six Sigma project
undertaken to reduce defects); or
 A result, such as an outcome or document (e.g., a research project that develops
knowledge that can be used to determine whether a trend exists or a new process will
benefit society).

Examples of projects include, but are not limited to:

 Developing a new product, service, or result;


 Effecting a change in the structure, processes, staffing, or style of an organization;
 Developing or acquiring a new or modified information system (hardware or software);
 Conducting a research effort whose outcome will be aptly recorded;
 Constructing a building, industrial plant, or infrastructure; or
 Implementing, improving, or enhancing existing business processes and procedures.

The relationships among Portfolios, Programs, and Projects

The relationship among portfolios, programs, and projects is such that a portfolio refers to a
collection of projects, programs, sub portfolios, and operations managed as a group to achieve
strategic objectives. Programs are grouped within a portfolio and are comprised of
subprograms, projects, or other work that are managed in a coordinated fashion in support of
the portfolio. Individual projects that are either within or outside of a program are still
considered part of a portfolio.
What is Project Management?

Project management is the application of knowledge, skills, tools, and techniques to project
activities to meet the project requirements. Project management is accomplished through the
appropriate application and integration of the 47 logically grouped project management
processes, which are categorized into five Process Groups. These five Process Groups are:

 Initiating,
 Planning,
 Executing,
 Monitoring and Controlling, and
 Closing.

Relationships among Portfolio Management, Program Management, Project Management,


and organizational Project Management

OPM is a strategy execution framework utilizing project, program, and portfolio management
as well as organizational enabling practices to consistently and predictably deliver
organizational strategy producing better performance, better results, and a sustainable
competitive advantage.

Portfolio, program, and project management are aligned with or driven by organizational
strategies. Conversely, portfolio, program, and project management differ in the way each
contributes to the achievement of strategic goals. Portfolio management aligns with
organizational strategies by selecting the right programs or projects, prioritizing the work, and
providing the needed resources, whereas program management harmonizes its projects and
program components and controls interdependencies in order to realize specified benefits.
Project management develops and implements plans to achieve a specific scope that is driven
by the objectives of the program or portfolio it is subjected to and, ultimately, to organizational
strategies. OPM advances organizational capability by linking project, program, and portfolio
management principles and practices with organizational enablers (e.g. structural, cultural,
technological, and human resource practices) to support strategic goals. An organization
measures its capabilities, then plans and implements improvements towards the systematic
achievement of best practices.

Program Management

A program is defined as a group of related projects, subprograms, and program activities


managed in a coordinated way to obtain benefits not available from managing them
individually. Programs may include elements of related work outside the scope of the discrete
projects in the program. A project may or may not be part of a program but a program will
always have projects.

Program management is the application of knowledge, skills, tools, and techniques to a


program in order to meet the program requirements and to obtain benefits and control not
available by managing projects individually.

Portfolio Management

A portfolio refers to projects, programs, sub portfolios, and operations managed as a group to
achieve strategic objectives. The projects or programs of the portfolio may not necessarily be
interdependent or directly related.

Portfolio management refers to the centralized management of one or more portfolios to achieve
strategic objectives. Portfolio management focuses on ensuring that projects and programs are
reviewed to prioritize resource allocation, and that the management of the portfolio is consistent
with and aligned to organizational strategies.

Projects and Strategic Planning

Projects are often utilized as a means of directly or indirectly achieving objectives within an
organization’s strategic plan. Projects are typically authorized as a result of one or more of the
following strategic considerations:

 Market demand (e.g., a car company authorizing a project to build more fuel-efficient
cars in response to gasoline shortages);
 Strategic opportunity/business need (e.g., a training company authorizing a project to
create a new course to increase its revenues);
 Social need (e.g., a nongovernmental organization in a developing country authorizing a
project to provide potable water systems, latrines, and sanitation education to
communities suffering from high rates of infectious diseases);
 Environmental consideration (e.g., a public company authorizing a project to create a
new service for electric car sharing to reduce pollution);
 Customer request (e.g., an electric utility authorizing a project to build a new substation
to serve a new industrial park);
 Technological advance (e.g., an electronics from authorizing a new project to develop a
faster, cheaper, and smaller laptop based on advances in computer memory and
electronics technology); and
 Legal requirement (e.g., a chemical manufacturer authorizing a project to establish
guidelines for proper handling of a new toxic material).
Project Management office

A project management office (PMO) is a management structure that standardizes the project-
related governance processes and facilitates the sharing of resources, methodologies, tools,
and techniques. The responsibilities of a PMO can range from providing project management
support functions to actually being responsible for the direct management of one or more
projects.

Common questions

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In organizational management, portfolios, programs, and projects have interconnected relationships. Portfolios are collections of projects and programs managed as a group to achieve strategic objectives, where each project or program may not be directly related but contributes to the overall strategy . Programs consist of related projects that are coordinated to achieve benefits greater than the sum of managing the projects individually . Projects are individual temporary endeavors to create unique outputs, which may be part of a program or independently part of a portfolio . Together, they align organizational activities with strategic goals.

Projects in organizations are often authorized based on strategic considerations like market demand, strategic opportunities or business needs, social needs, environmental considerations, customer requests, technological advances, and legal requirements . For instance, a company might approve a project to produce fuel-efficient cars due to market demand, or a legal requirement might drive a chemical manufacturer to set guidelines for handling toxic materials . These factors ensure that projects align with and support broader organizational objectives.

The temporary nature of projects means they have a definite beginning and end, affecting management and execution by necessitating clear timelines and focused objectives . Project managers must ensure that all activities fit within the project's short lifespan and deliver the intended unique outcomes before the project's completion or termination . This temporality enforces disciplined planning and execution to achieve objectives efficiently and effectively before reaching the project endpoint.

Organizational Project Management (OPM) is a strategy execution framework that integrates project, program, and portfolio management with organizational enablers like structural, cultural, technological, and human resource practices to support strategic goals . OPM's strategic importance lies in advancing organizational capability, ensuring that project-related activities are consistently aligned with strategic objectives, improving performance, achieving better results, and sustaining a competitive advantage . By linking management practices across units, OPM ensures that the organization systematically achieves best practices and enhances its ability to meet strategic goals.

Portfolio management should be aligned to organizational strategies by selecting the right projects or programs, prioritizing work, and allocating resources effectively to achieve strategic objectives . This alignment is crucial because it ensures that all portfolio activities directly contribute to the strategic goals of the organization, optimizing the use of resources and maximizing the potential benefits . By maintaining this alignment, organizations can ensure coherent progress towards long-term aims, maintaining a strategic direction amidst operational changes.

Market demand drives project authorization by creating immediate needs that organizations must address to remain competitive. For example, a car company may authorize a project to develop fuel-efficient cars in response to gasoline shortages . This is significant for strategic planning as it ensures that the organization adapts to changing market conditions, meets customer expectations, and sustains its market position . Addressing market demand aligns projects with strategic objectives, thereby linking immediate operational goals with long-term strategies.

An organization might terminate a project before completion if its objectives cannot be met, if there is no longer a need for the project, or if the client chooses to terminate it . Other reasons include strategic realignments, changes in market demand, or technological evolutions that render the project obsolete . Terminating a project can be a strategic decision to conserve resources and redirect efforts to areas that better serve the organization's goals."

Projects, programs, and portfolios contribute to strategic goals in distinct ways: Portfolio management aligns with organizational strategies by selecting the right programs or projects, prioritizing work, and providing resources to achieve strategic objectives . Program management harmonizes its projects and controls interdependencies to realize specified benefits that are not achievable by managing projects individually . Project management focuses on developing plans to achieve a specific scope driven by objectives of the program or portfolio . Thus, while portfolios prioritize resources for strategic alignment, programs manage interrelated projects for common benefits, and projects aim to fulfill distinct objectives within this framework.

Program management differs from project management in that it manages a group of related projects in a coordinated way to obtain benefits not available from managing projects individually . It focuses on harmonizing projects and controlling their interdependencies to realize specified benefits . Conversely, project management aims at developing and implementing plans to achieve specific project objectives within its defined scope, serving the broader goals set by the program or portfolio .

A Project Management Office (PMO) standardizes project-related governance processes and facilitates resource sharing, methodologies, tools, and techniques . It can provide support functions or take direct management responsibility for projects, thereby ensuring consistency in managing projects across the organization .

What is a Project? A project is a temporary endeavor undertaken to create a unique product, service, or result. The temporary
What is Project Management? Project management is the application of knowledge, skills, tools, and techniques to project acti
projects in the program. A project may or may not be part of a program but a program will always have projects. Program mana
Project Management office A project management office (PMO) is a management structure that standardizes the project- related

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