Example 2: Project vs Program vs Portfolio

Example 2: Project vs Program vs Portfolio

Real Estate Company

A real estate company is in the business of constructing buildings and performing related work to fulfill the unmet public demand.

Portfolio Management The Company, itself, is the largest portfolio. Different divisions like Commercial Division and Residential Division would be sub-portfolios. Commercial Portfolio could include construction of malls, shopping complexes, and office buildings while Residential Portfolio could include construction of residential buildings, and row houses. Each sub-portfolio would be headed by a Division Head like a Vice President. The portfolio and sub-portfolios will have running programs, projects and operations.

Program Management Each division within the company would have several running programs e.g. a Residential Township at location X. This program could involve several projects e.g. construction of row houses, construction of a multi-storied residential building, construction of a club house, landscaping project, marketing project etc. The projects within the program might be executed at different times by a different set of people but they will be governed by the larger shared goal of making the township successful & livable.

Project Management The Company would have several running projects at any given point in time. These project may or may not be part of a program e.g a procurement optimization project to reduce material procurement costs may not be part of any program.

Example 1: Project vs Program vs Portfolio

Consumer Durable Company

A consumer durable company is in the business of design, development, marketing, and servicing consumer products like refrigerators, washing machines, air-conditioners (AC) etc.

Portfolio Management The Company, itself, is the largest portfolio. Different divisions like Refrigerator Division, Washing Machine Division and AC Division would be sub-portfolios. Each sub-portfolio would be headed by a Division Head like a Vice President. The portfolio and sub-portfolios will have running programs, projects and operations.

Program Management Each division within the company would have several running programs e.g. Launch a new line of refrigerators. This program could involve several projects e.g. a design project (refrigerator design), a manufacturing project (setting up refrigerator manufacturing), a marketing project, a servicing project (training post-sales servicing personnel) etc. The projects within the program might be executed at different times by a different set of people but they will be governed by the larger shared goal of making the new line of refrigerators successful.

Project Management The Company would have several running projects at any given point in time. These project may or may not be part of a program e.g an IT project to implement a Customer Relationship Management (CRM) software may not be part of any program.