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There is often debate about whether an initiative should be categorised as a Portfolio, Programme or a Project. It is critical to recognise that each is a tool for a purpose.
In principle, projects exist and thrive on certainty of outcome, whereas programmes exist and evolve in a more ambiguous environments. |
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Bad reasons for selecting the approach
- Size of the budget
- Length of time to deliver
- Importance of the sponsor
- Complexity of the task
Good reasons for selecting the approach
- Types of risk being faced
- Bredth of impact on the organisation
- Complexity of the changes facing an organisation
- Complexity of the stakeholder environment
- Level of risk being faced
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The decision on which toolset to deploy should depend on the scope of the change required, for example, if you were building a new road bypass around a town, it would be a large project but if you extend the scope to include social or commercial regeneration of local communities then you are moving into programme territory.
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It is important that organisations adopting MSP are using it in the right context, the following will help differentiate a programme from a Corporate Portfolio or large projects.
Corporate Portfolio characteristics
- focus will be on leadership and alignment with corporate strategy
- the vision and blueprint will be for the entire organsation
- the timescales for the portfolio will be vague or even undefined
- risk will be viewed from the strategic perspective and business continuity
- integrity of the entire business transformation through programme and projects
- benefits orientation will to be organisational benefits that affect all areas and linked to organisational goals
- stakeholder management will have a strategic and external focus
- governance will be setting of policies and standards
- quality will be viewed from the perspective of portfolio alignment and effectiveness
- issue management will relate to programmes extending beyond boundaries and margins
- planning will be viewed from outcome dependency and resolving conflicts
- will include a combination of programmes and projects
- business case may not exist or be conceptual
Programme characteristics
- focus will be on direction and delivery of strategy
- vision and blueprint focus will be within the programme boundary
- timescales will be loosely defined, but there will be an end point at which the programme will be focused
- risk focus will be on aggregation of project risk and operational transition
- issue orientation will be towards resolving inter project escalations and benefits delivery
- planning will be orientated to delivering outcomes through Tranches and managing project interdependencies
- benefit delivery will dominate, with significant focus on the rigor of benefit profiling and realisation.
- governance will be applied through programme strategies and application of organisational or portfolio standards where they exist
- stakeholder management will be focused at all levels in the organisation and key external influencers
- quality focus will be on control and improvement
- business case will be focused on benefit realisation balanced against the project and programme costs
Project characteristics
- focus will be on management and co-ordination
- concentrates on delivering outputs to time and cost constraints
- quality will focus on fit for purpose outputs based on requirements
- business case will be focused on accurate budgeting for the output delivery
- risk will be focused on the costs, quality and timescales of delivery
- issue management will be product and fit for purpose focus
- planning will be product and activities orientated
- benefit focus will be delivering fit for purpose outputs that enable benefit realisation
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