Chapter 1:
An Introduction to
Project, Program, and
Portfolio Management
Note: See the text itself for full citations. Text website is [Link]
Learning Objectives
• Understand the growing need for better project,
program, and portfolio management
• Explain what a project is, provide examples of
projects, list various attributes of projects, and
describe project constraints
• Define project management and discuss key elements
of project management using a process-oriented
approach and a principle-based approach
Copyright 2021 Schwalbe Publishing
Learning Objectives (continued)
• Discuss the relationship between project, program, and
portfolio management and their contributions to enterprise
success
• Understand important agile concepts
• …يجري التحميل
Explain the differences between predictive, agile, and
hybrid approaches to project management
• Describe the project management profession, including the
role of project managers and suggested skills, the role of
professional organizations, the importance of certification
and ethics, project management careers, and the growth of
project and portfolio management software
Copyright 2021 Schwalbe Publishing
Introduction
Many organizations today have a new or renewed interest in
project management (PM). Why?
• Demand for projects continues to increase. GDP
contributions from project-oriented industries are
forecasted to reach US$34.5 trillion by 2030. Employers
will need 25 million new individuals working in project
management-oriented roles by 2030.
• 2020 proved that projects matter now more than ever.
Agile organizations respond better to change.
• Good project management helps the bottom line. An
average 11.4 percent of investment is wasted due to poor
project performance.
Copyright 2021 Schwalbe Publishing
More Motivation to Study PM
• Project management salaries continue to grow. The
average total compensation for project management
workers in the U.S. in 2019 was $124,000.
• Certification is a good investment. People with the
…يجري التحميل
PMP® credential reported salaries 22% higher on
average than those without it.
• Project management is also a vital skill for personal
success.
Copyright 2021 Schwalbe Publishing
What Went Wrong?
• A 1995 Standish Group study (The CHAOS Report)
found that only 16.2 percent of information technology
(IT) application development projects were successful
in meeting scope, time, and cost goals. Over 31 percent
of the projects were canceled before completion,
costing over $81 billion in the U.S. alone.
• In a 2019 study by three global associations (KPMG,
AIPM, and IPMA) only 19% of organizations delivered
successful projects (defined as meeting scope, time,
cost, and stakeholder satisfaction goals) most of the
time. Copyright 2021 Schwalbe Publishing
Advantages of Using Formal
Project Management
• Better control of financial, physical, and human
resources
• Improved customer relations
• Shorter development times
• Lower costs
• Higher quality and increased reliability
• Higher profit margins
• Improved productivity
• Better internal coordination
• Higher worker morale
Copyright 2021 Schwalbe Publishing
What is a project?
Can you give an example?
Project Management Institute, Inc., The Standard for Project Management,
Seventh Edition (2021), p. 4.
Copyright 2021 Schwalbe Publishing
What Is a Project?
• A project is “a temporary endeavor undertaken to
create a unique product, service, or result”*
• Operations is work done to sustain the business
• Projects end when their objectives have been reached,
or the project has been terminated
Project Management Institute, Inc., The Standard for Project Management,
Seventh Edition (2021), p. 4.
Copyright 2021 Schwalbe Publishing
Project vs. Operation
Project Operation
• Temporary • Ongoing
• Unique • Repetitive
• Limited scope • Broad scope
• Cross-functional • Departmental
• Iterative • Standardized
Copyright 2021 Schwalbe Publishing
Examples of Projects
• A young couple hires a firm to design and build them a new
house
• A retail store manager works with employees to display a new
clothing line in the store and online to attract new customers
• A school district upgrades its technology infrastructure to
…يجري التحميل
provide wireless Internet access for all students in school and
from home
• A medical technology firm develops a device that connects to
smart phones
• A pharmaceutical company launches a new drug or vaccine
• A television network develops a system to allow viewers to
vote for contestants and provide other feedback on programs
via several devices
Copyright 2021 Schwalbe Publishing
Project Attributes
• A project:
◦ Has a unique purpose
◦ Is temporary
◦ Drives change and enables value creation
◦ Is developed using progressive elaboration or in an iterative
fashion
◦ Requires resources, often from various areas
◦ Should have a primary customer or sponsor
• The project sponsor usually provides the direction and funding for
the project
◦ Involves uncertainty
Project managers work with the project sponsors, the project team, and
the other people involved in a project to define, communicate, and meet
project goals.
Copyright 2021 Schwalbe Publishing
Project Constraints
• Every project is constrained in different ways. Some project
managers focus on the triple constraint (meeting scope, time,
and cost goals)
◦ Scope What work will be done as part of the project? What unique product,
service, or result does the customer or sponsor expect from the project?
◦ Time How long should it take to complete the project? What is the
timeline?
◦ Cost What should it cost to complete the project? What is the project’s
budget? What resources are needed?
• Other constraints include quality, risk, and resources
Copyright 2021 Schwalbe Publishing
Figure 1-1. Typical Project
Constraints
Copyright 2021 Schwalbe Publishing
Copyright 2021 Schwalbe Publishing
What is Project Management?
• Project management is “the application of knowledge,
skills, tools and techniques to project activities to meet
project requirements.”*
*Project Management Institute, Inc., The Standard for Project Management,
Seventh Edition (2021), p. 4.
Copyright 2021 Schwalbe Publishing
Figure 1-2. Project Management
Framework
Copyright 2021 Schwalbe Publishing
Project Stakeholders
• Stakeholders are the people involved in or affected by
project activities
• Stakeholders include:
◦ The project sponsor
◦ The project manager
◦ The project team
◦ Support staff
◦ Customers
◦ Suppliers
◦ Opponents to the project
Project Stakeholders
You are leading a project to create a new mobile
banking app. Identify the key stakeholders for this
project.
Copyright 2021 Schwalbe Publishing
Project Management Knowledge
Areas
Project integration management is an overarching function
that coordinates the work of all other knowledge areas. It affects
and is affected by all of the other knowledge areas.
Project scope management involves working with all
appropriate stakeholders to define, gain written agreement for,
and manage all the work required to complete the project
successfully.
Project time management includes estimating how long it will
take to complete the work, developing an acceptable project
schedule given cost-effective use of available resources, and
ensuring timely completion of the project.
Copyright 2021 Schwalbe Publishing
Project Management Knowledge Areas
(continued)
Project cost management consists of preparing and managing
the budget for the project.
Project quality management ensures that the project will
satisfy the stated or implied needs for which it was undertaken.
Project resource management is concerned with making
effective use of the people and physical resources needed for the
project.
Project communications management involves generating,
collecting, disseminating, and storing project information.
Copyright 2021 Schwalbe Publishing
Project Management Knowledge
Areas (continued)
1. Project risk management includes identifying, analyzing,
and responding to risks related to the project.
2. Project procurement management involves acquiring or
procuring goods and services for a project from outside the
performing organization.
3. Project stakeholder management focuses on identifying
project stakeholders, understanding their needs and
expectations, and engaging them appropriately throughout the
project.
Copyright 2021 Schwalbe Publishing
Project Management Tools and
Techniques
• Project management tools and techniques assist project
managers and their teams in various aspects of project
management.
• Note that a tool or technique is more than just a software
package.
• Specific tools and techniques include:
◦ Project charters, scope statements, and WBS (scope)
◦ Gantt charts, network diagrams, critical path analyses (time)
◦ Net present value, cost estimates, and earned value management
(cost)
◦ Agile projects often require product roadmaps, backlogs, burndown
charts, retrospectives, etc.
23
Copyright 2021 Schwalbe Publishing
Project Success
• There are different ways to define project success:
◦ The project provided value. Value is “the worth, importance,
or usefulness of something.”*
◦ The project met scope, time, and cost goals.
◦ The project satisfied the customer/sponsor.
• One method used to measure customer satisfaction is a net promoter
score, a number that represents the customer’s willingness to
recommend a product or service to others.
◦ The project produced the desired results.
Copyright 2021 Schwalbe Publishing
What Went Right? Improved Project
Performance
Follow-up studies by the Standish Group showed some
improvement in the statistics for IT projects:
• The number of successful projects has increased, from 16 percent
in 1994 to 29 percent in 2015
• The number of failed projects decreased from 31 percent in 1994
to 19 percent in 2015
• 62% of small projects were successful from 2011-2015 compared
to only 2% of grand, 6% of large, 9% of medium, and 21% of
moderate size projects
• 39% of all agile projects were successful compared to 11% of
waterfall projects.
• In 2021 the Standish Group website states that 31% of software
projects are successful (an increase from the 29% reported in
2015). They also say that 46% of the successful projects returned
high value to the organization.
Copyright 2021 Schwalbe Publishing
Figure 1-3. Project Management Framework based on the
PMBOK® Guide - Seventh Edition
Copyright 2021 Schwalbe Publishing
New Terminology in Seventh Edition
Framework
• Principles for a profession serve as foundational
guidelines for strategy, decision making, and problem
solving.
• A project performance domain is a group of related
activities that are critical for the effective delivery of
project outcomes.
• Tailoring is the deliberate adaptation of the project
management approach, governance, and processes to
make them more suitable for the given environment and
the work at hand.
Copyright 2021 Schwalbe Publishing
Models, Methods, and Artifacts
• A model is a thinking strategy to explain a process,
framework, or phenomenon (for example, leadership
models, change models, etc.)
• A method is the means for achieving an outcome,
output, result, or project deliverable (like tools and
techniques – methods for estimating, meeting, etc.)
• An artifact can be a template, document, output, or
project deliverable (for example a project charter,
product backlog, contract, etc.)
Copyright 2021 Schwalbe Publishing
Programs and Megaprojects
• A program is a group of related projects, subsidiary
programs, and program activities managed in a
coordinated manner to obtain benefits not available
from managing them individually.
• …يجري التحميل
A megaproject is a very large project that typically
costs over US $1 billion, affects over one million
people, and lasts several years.
Copyright 2021 Schwalbe Publishing
Figure 1-4. Example Programs
Copyright 2021 Schwalbe Publishing
Media Snapshot
Popular Mechanics provides a list (including photos) of
the 25 most impressive megaprojects throughout the
world. Several are listed below, showing the time and
cost required to complete them (US$):
• Panama Canal Expansion Project, Panama, Central
America: 11 years, $5.25 billion. The original canal
was built in 1914. The expansion project widened and
deepened the canal to allow for larger ships.
• Port Mann Bridge, Vancouver, British Columbia,
Canada: 6 years, $1.92 billion. Port Mann Bridge is the
second largest bridge in North America, spanning 6,866
feet.
Copyright 2021 Schwalbe Publishing
• Three Gorges Dam, China: 17 years, $22 billion. This
Megaprojects in Saudi Arabia
Copyright 2021 Schwalbe Publishing
Megaprojects in Saudi Arabia
Copyright 2021 Schwalbe Publishing
Project Portfolio Management
• A portfolio is defined as a collection of projects, programs,
subsidiary portfolios, and operations managed as a group to
achieve strategic objectives.
• Many organizations support an emerging business strategy of
project portfolio management by continuously selecting and
managing the optimum set of projects and programs to deliver
maximum business value.
• The main distinction between project or program management
and portfolio management is a focus on meeting tactical versus
strategic goals.
Copyright 2021 Schwalbe Publishing
Project and Program Management Compared
to Project Portfolio Management
• Project and program management address questions
like:
◦ Are we carrying out projects well?
◦ Are projects on time and budget?
◦ Do project stakeholders know what they should be doing?
• Portfolio management addresses questions like:
◦ Are we working on the right projects?
◦ Are we investing in the right areas?
◦ Do we have the right resources to be competitive?
Copyright 2021 Schwalbe Publishing
What Is Agile?
• There are several different definitions of agile.
◦ The Agile Alliance (2021) defines agile as “the ability to create
and respond to change.”
◦ Merriam-Webster dictionary (2021) defines agile as “marked
by ready ability to move with quick easy grace,” like an agile
dancer.
◦ PMI’s Agile Practice Guide (2017) defines agile as “a term
used to describe a mindset of values and principles as set forth
in the Agile Manifesto.”
• Scrum, the most popular framework, is a lightweight
framework that helps people, teams and organizations
generate value through adaptive solutions for complex
Figure 1-5: How Agile Frameworks
Expanded, Adapted from [Link]
Copyright 2021 Schwalbe Publishing
Figure 1-6. Manifesto for Agile Software Development and
Principles behind the Agile Manifesto
Manifesto for Agile Software Development
We are uncovering better ways of developing software by doing it
and helping others do it. Through this work we have come to
value:
- Individuals and interactions over processes and tools
- Working software over comprehensive documentation
- Customer collaboration over contract negotiation
- Responding to change over following a plan
That is, while there is value in the items on the right, we value the
items on the left more
Copyright 2021 Schwalbe Publishing
Figure 1-6. Manifesto for Agile Software Development and
Principles behind the Agile Manifesto
Principles behind the Agile Manifesto
We follow these principles:
1. Our highest priority is to satisfy the customer through early and continuous delivery of
valuable software.
2. Welcome changing requirements, even late in development. Agile processes harness
change for the customer's competitive advantage.
3. Deliver working software frequently, from a couple of weeks to a couple of months, with a
preference to the shorter timescale.
4. Business people and developers must work together daily throughout the project.
5. Build projects around motivated individuals. Give them the environment and support they
need, and trust them to get the job done.
6. The most efficient and effective method of conveying information to and within a
development team is face-to-face conversation.
7. Working software is the primary measure of progress.
8. Agile processes promote sustainable development. The sponsors, developers, and users
should be able to maintain a constant pace indefinitely.
9. Continuous attention to technical excellence and good design enhances agility.
10. Simplicity--the art of maximizing the amount of work not done--is essential.
11. The best architectures, requirements, and designs emerge from self-organizing teams.
Copyright 2021 Schwalbe Publishing
At regular intervals, the team reflects on how to become more effective, then tunes and
What Is an Agile Mindset?
• Gil Broza, author of “The Agile Mind-Set” (2015),
emphasizes the need to focus on values, beliefs, and
principles before following specific frameworks or
processes.
• Organizations with an agile mindset, in contrast to a
bureaucratic one, use a network of teams focused on the
goal of delivering value to their customers. Work is best
accomplished through small, self-organizing teams
working in short cycles to deliver something of value to
the customer.
Copyright 2021 Schwalbe Publishing
What Is the Difference Between Predictive, Agile, and Hybrid
Project Management?
• In predictive project management, also called
waterfall or traditional project management: most of
the project planning is done upfront, there is a single
final product, service, or result delivered at the end of
the project, change is constrained, costs and risks are
controlled, and stakeholders are involved at specific
milestones.
• In Agile project management, also called adaptive
project management: the project scope cannot be
well-defined upfront, incremental releases are desired,
and changes are expected.
Copyright 2021 Schwalbe Publishing
Copyright 2021 Schwalbe Publishing
Hybrid Project Management
Copyright 2021 Schwalbe Publishing
Study Finds Most Projects are
Hybrid
• A 2021 research report based on 477 projects in various
industries found that 52% of the projects could be
categorized as using a hybrid project management
approach.
• Project management approach was not associated with project
performance in terms of meeting traditional scope, time, cost, and
quality goals.
• Projects managed using agile and hybrid approaches
significantly outperformed predictive approaches when it came to
stakeholder success, measured as a combination of sponsor,
client, and team satisfaction with the project.
• “Hybrid approaches were found to be similar in effectiveness
to fully agile approaches. Results validate decisions by
practitioners to combine agile and traditional practices and
suggest that hybrid is a leading projectCopyright
management approach.”
2021 Schwalbe Publishing
The Project Management Profession
• Project, program, and portfolio managers need to
develop specific skills
• Certification is available for project managers
• There are many software tools to assist in project,
program, and portfolio management
Copyright 2021 Schwalbe Publishing
Suggested Skills for Project
Managers
Knowledge of the following:
• All ten project management knowledge areas and the
eight project performance domains, tools, and techniques
• The application area (domain, industry, market, etc.)
• The project environment (politics, culture, change
management, etc.)
• General business (financial management, strategic
planning, etc.)
• Human relations (leadership, motivation,
communication, etc.)
Copyright 2021 Schwalbe Publishing
PMI Talent Triangle
1. Technical project management skills: Understanding
the knowledge areas, process groups, and project
management tools and techniques fall into this category.
2. Strategic and business management skills: Topics
include strategic planning, financial management,
accounting, marketing, and other topics.
3. Leadership skills: Providing vision and inspiration to
people.
A leader focuses on long-term goals and big-picture
objectives while inspiring people to reach those goals. A
manager deals with the day-to-day details of meeting
specific goals; Project managers often take on both roles!
Copyright 2021 Schwalbe Publishing
Additional Skills for Program and
Portfolio Managers
• Program managers normally have experience as project
managers. They often rely on their past experience,
strong business knowledge, leadership capability, and
communication skills to manage programs
• Portfolio managers must have strong financial and
analytical skills and understand how projects and
programs can contribute to meeting strategic goals
Copyright 2021 Schwalbe Publishing
Best Practice
A best practice is “an optimal way recognized by industry to
achieve a stated goal or objective.”
Robert Butrick suggests that organizations need to follow basic
principles of project management:
● Make sure your projects are driven by your strategy. Be able to demonstrate
how each project you undertake fits your business strategy, and screen out
unwanted projects as soon as possible.
● Engage your stakeholders. Ignoring stakeholders often leads to project
failure. Be sure to engage stakeholders at all stages of a project, and
encourage teamwork and commitment at all times. Use leadership and open
communications to make things happen.**
Copyright 2021 Schwalbe Publishing
Project Management Certification
• PMI provides certification as a Project Management
Professional (PMP)
• A PMP has documented sufficient project experience,
agreed to follow a code of ethics, and passed the PMP
exam
• The number of people earning PMP certification is
increasing quickly
Copyright 2021 Schwalbe Publishing
Figure 1-7. Growth in PMP
Certification, 1993-2020
Growth in PMP Certification 2000-2020*
٤،٠٠٠،٠٠٠
٣،٠٠٠،٠٠٠
٢،٠٠٠،٠٠٠
١،٠٠٠،٠٠٠
٠ 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
*2020 data is through September 30, 2020, the last data reported in PMI
Today.
Copyright 2021 Schwalbe Publishing
Other Certifications
• PMI provides several other certifications
• In 2021, Google launched a project management
certification as part of their “Grow with Google”
program.
• PRINCE2, or Projects in Controlled Environments, is a
process-based method for effective project management
known across the world. Over 1 million people have
their certification.
• In 2021 [Link] announced that there were over
557,000 professional scrum certifications held
throughout the world.
Copyright 2021 Schwalbe Publishing
The International Project Management Association
PMI Student Membership and
Certification Information
• As a student, you can join PMI for a reduced fee ($32
vs. $139 in 2021)
• Also consider earning the Certified Associate in Project
Management (CAPM) credential from PMI
• If you complete a bachelor’s degree, you do not need
any work experience to earn the CAPM
• However, if you have enough work experience, the
PMP is more marketable
• [Link]
Copyright 2021 Schwalbe Publishing
Ethics in Project Management
• Ethics — a set of principles that guide our decision
making based on personal values of what is “right” and
“wrong” — is an important part of all professions
• Project managers often face ethical dilemmas.
• PMI has a Code of Ethics and Professional Conduct
which applies not only to PMP®s, but to all PMI
members and individuals who hold a PMI certification,
apply for a PMI certification, or serve PMI in a
volunteer capacity.
Project Management Careers
• By 2027, employers will need 87.7 million
individuals working in project management-oriented
roles.”
• In June 2020, LinkedIn listed project management
jobs as #3 in the top 10 jobs identified as having the
greatest number of openings, steady growth, and a
livable wage.
• Sixty percent of hiring managers say interest in
project management careers among younger job
applicants has grown over the past decade.
Copyright 2021 Schwalbe Publishing
Project Management Career Path
• Many people start off leading a small project related to
their current job, part-time, to make sure they are cut out
for and enjoy the work.
• Some organizations require their people to have a few
years of experience before they let them lead any
projects. Others hire entry-level people with the title of
project coordinator or project manager.
• Many organizations realize that they need to provide a
structured career path to develop and maintain their
talent pipeline for project managers. Some organizations
Copyright 2021 Schwalbe Publishing
Project Management Software
• There are hundreds of different products available today
• A 2020 report estimates that the global project portfolio
management (PPM) market size will reach USD 11.4 billion by
2027, a compound annual growth rate of 13.4% from 2020 to
2027.
◦ “Project-intensive organizations across different industry verticals have
recognized the advantages of the PPM solution and have employed it to
automate and simplify several operations and efficiently manage project
lifespan.
◦ The PPM solution offers managers and organizations with the capability to
see the big picture, confirming the use of best practices, principles,
solutions, and standards during the project lifespan… the benefits offered
by PPM solutions are propelling the growth of this market.”
Copyright 2021 Schwalbe Publishing
Software for Agile Project
Management
• Demand for software to help manage agile projects has
also increased.
• 95% of people reported their organizations practiced
some agile development methods, even though about
half said that most of their teams were not agile.
• They reported using a wide variety of software tools.
Copyright 2021 Schwalbe Publishing
Figure 1-8. Use of Agile Project
Management Tools
Percentage of Respondents Using Tool
١
٠٫٦٧
٠٫٤
٠٫٢٣ ٠٫١٩ ٠٫١٢ ٠٫١٢ ٠٫٠٩
٠ Atlassian JIRA Microsoft Azure DevOps VersionOne Microsoft Project
Copyright 2021 Schwalbe Publishing
Figure 1-9. Using Microsoft Project to
manage your agile projects
Copyright 2021 Schwalbe Publishing
Figure 1-10. Sample Gantt chart in Microsoft
Project
Copyright 2021 Schwalbe Publishing
Figure 1-11. Sample product backlog in Jira
Copyright 2021 Schwalbe Publishing
Figure 1-12. Sample agile reporting charts in Jira
Copyright 2021 Schwalbe Publishing
Free Trials and Information on Using
Microsoft Project, Jira, Asana, MindView,
Basecamp, and Other Software
• A 30-day evaluation copy of many tools, such as
Microsoft Project and MindView, are available from
their company websites.
• Other tools, including Jira, Asana, and Basecamp,
provide trial versions of their software for unlimited
timeframes.
Copyright 2021 Schwalbe Publishing
Chapter Summary
• A project is a temporary endeavor undertaken to create a
unique product, service, or result
• Project management is the application of knowledge, skills,
tools, and techniques to project activities to meet project
requirements
• Many organizations today are using an agile/adaptive or a
hybrid approach instead of a predictive/waterfall/traditional
approach to managing projects. It is important to use an agile
mindset first to help agile projects succeed. The terms agile or
adaptive project management describes an approach where the
project scope cannot be well-defined upfront, incremental
releases are desired, and changes are expected.
• A program is a group of related projects, subsidiary programs,
and program activities managed in a coordinated manner to
obtain benefits not available from managing them individually
• Project portfolio management involves organizing
Copyright and
2021 Schwalbe Publishing