Project Portfolio Management Vs. Programme Management - Revision history

Tkokotas at 11:20, 20 December 2018

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	''Developed by Linus Raffael Vogel''		''Developed by Linus Raffael Vogel''

Tkokotas at 11:20, 20 December 2018

2018-12-20T11:20:04Z

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			''Developed by Linus Raffael Vogel''



	As a consequence of globalisation of markets for goods, capital and labour, it became common to use internationally recognised terms in many companies and organisations. Especially in the field of project Management, it can be hard to understand the background and relevance of different methods and terms compared to each other. Additionaly Programme and Project Portfolio Management are often mentioned in the context of the overall topic of Project Management and thereby it can be confusing to understand the differences. The objective of this article is to clearly determine the distinctions according to existing literature and best practices, by the determination of main differentiating factors, the interface and related responsibilities.		As a consequence of globalisation of markets for goods, capital and labour, it became common to use internationally recognised terms in many companies and organisations. Especially in the field of project Management, it can be hard to understand the background and relevance of different methods and terms compared to each other. Additionaly Programme and Project Portfolio Management are often mentioned in the context of the overall topic of Project Management and thereby it can be confusing to understand the differences. The objective of this article is to clearly determine the distinctions according to existing literature and best practices, by the determination of main differentiating factors, the interface and related responsibilities.

Linus R.V: /* Interface */

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Interface

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	[[File:Cross1.png\|400px\|right\|thumb\| Figure 3 - Cross-Company Portfolio Management Process Relationships, Project Management Institute 2006]]		[[File:Cross1.png\|400px\|right\|thumb\| Figure 3 - Cross-Company Portfolio Management Process Relationships, Project Management Institute 2006]]
	It is important to understand the responsibilities in relation to the different components of a Project Portfolio. As described in the section above about Project Portfolio´s : The role of the Project Portfolio Management is the collection, identification, categorisation, evaluation, selection, balance and review of components. That means that once the components (Project and/or Programme) are authorized for the perspective Project Portfolio, it becomes the responsibility of the Programme/Project Management team to take control of the components and apply the correct management processes to ensure that the work is done effectively and efficiently. This is illustrated in Figure 3. It is then the responsibility of the Programme/Project Management team to monitor planned-to-actual performance (time, budget, resources, quality, and scope) of the components and provide the Project Portfolio Management with consolidated information.<ref>''Project Management Institute, Inc, 2006'' '' The Standard for Program Management: Portfolio Management Process Overview '' </ref> This information is used in Portfolio reviews to determine required actions. Programme and Project Management may work together with Portfolio Management to determine "go/no go" criteria for proposed and current components, including "termination criteria" (phase gates). Programme and Project Management may also work together with Portfolio Mangement in capacity planning by inputting resource requirements (e.g., human resources, financial and physical assets). <ref>'' Project Management Institute, Inc, 2006.		It is important to understand the responsibilities in relation to the different components of a Project Portfolio. As described in the section above about Project Portfolio´s : The role of the Project Portfolio Management is the collection, identification, categorisation, evaluation, selection, balance and review of components. That means that once the components (Project and/or Programme) are authorized for the perspective Project Portfolio, it becomes the responsibility of the Programme/Project Management team to take control of the components and apply the correct management processes to ensure that the work is done effectively and efficiently. This is illustrated in Figure 3. It is then the responsibility of the Programme/Project Management team to monitor planned-to-actual performance (time, budget, resources, quality, and scope) of the components and provide the Project Portfolio Management with consolidated information.<ref>''Project Management Institute, Inc, 2006'' '' The Standard for Program Management: Portfolio Management Process Overview '' </ref> This information is used in Portfolio reviews to determine required actions. Programme and Project Management may work together with Portfolio Management to determine "go/no go" criteria for proposed and current components, including "termination criteria" (phase gates). Programme and Project Management may also work together with Portfolio Mangement in capacity planning by inputting resource requirements (e.g., human resources, financial and physical assets). <ref>'' Project Management Institute, Inc, 2006.
	'' '' The Standard for Portfolio Management: ~~The~~ The Links between Portfolio Management and Program and Project Management '' </ref>		'' '' The Standard for Portfolio Management: The Links between Portfolio Management and Program and Project Management '' </ref>

	== Discussion ==		== Discussion ==

Linus R.V: /* Definition */

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Definition

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	The definition of a Programme is, that a Programme contains a group of related projects which are managed in a coordinated way to obtain benefits and control of the overall outcome. This approach would not be possible by managing these projects individually, without the umbrella of a programme. Programmes may include elements of related work (e.g., ongoing operations) outside the scope of the discrete projects in a Programme. <ref name=''The Standard for Program Management: What is a Program.''> '' Project Management Institute. ''The Standard for Program Management: What is a Program''. Project Management Institute, Inc, 2006.'' </ref> When a large project is split into multiple related projects with explicit management of the benefits, then the effort becomes a Programme.<ref name=''The Standard for Program Management: What is a Program.''> '' Project Management Institute. ''The Standard for Program Management: What is a Program''. Project Management Institute, Inc, 2006.'' </ref> In General Programme Management is used for the creation of portfolios of projects <ref>'' Gray, R.J., 1997. '' ''Alternative approaches to programme management 5–9. Int.J. Proj. Manag. 15'' </ref>, implementation of strategies <ref> Partington, D., Pellegrinelli, S., Young, M., 2005. '' Attributes and levels of programme management competence: an interpretive study 87–95. Int. J. Proj. Manag. 23		The definition of a Programme is, that a Programme contains a group of related projects which are managed in a coordinated way to obtain benefits and control of the overall outcome. This approach would not be possible by managing these projects individually, without the umbrella of a programme. Programmes may include elements of related work (e.g., ongoing operations) outside the scope of the discrete projects in a Programme. <ref name=''The Standard for Program Management: What is a Program.''> '' Project Management Institute. ''The Standard for Program Management: What is a Program''. Project Management Institute, Inc, 2006.'' </ref> When a large project is split into multiple related projects with explicit management of the benefits, then the effort becomes a Programme.<ref name=''The Standard for Program Management: What is a Program.''> '' Project Management Institute. ''The Standard for Program Management: What is a Program''. Project Management Institute, Inc, 2006.'' </ref> In General Programme Management is used for the creation of portfolios of projects <ref>'' Gray, R.J., 1997. '' ''Alternative approaches to programme management 5–9. Int.J. Proj. Manag. 15'' </ref>, implementation of strategies <ref> Partington, D., Pellegrinelli, S., Young, M., 2005. '' Attributes and levels of programme management competence: an interpretive study 87–95. Int. J. Proj. Manag. 23
	'' </ref>		'' </ref> and change generation in products, businesses or ways of working.<ref> Pellegrinelli, S., 1997. '' '' Programme management: organising project-based change 141–149. Int. J. Proj. Manag. 15 '' </ref>
	and change generation in products, businesses or ways of working.<ref> Pellegrinelli, S., 1997. '' '' Programme management: organising project-based change 141–149. Int. J. Proj. Manag. 15 '' </ref>
	The distinction between a Project and a Programme is given by the benefits which a Programme provides over and above those that projects can achieve on their own, as shown in figure 1 <ref> Pellegrinelli, S., 1997. '' '' Programme management: organising project-based change 141–149. Int. J. Proj. Manag. 15 '' </ref>		The distinction between a Project and a Programme is given by the benefits which a Programme provides over and above those that projects can achieve on their own, as shown in figure 1 <ref> Pellegrinelli, S., 1997. '' '' Programme management: organising project-based change 141–149. Int. J. Proj. Manag. 15 '' </ref>

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Definition

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	[[File:BenefitProgram1.png\|400px\|right\|thumb\| Figure 1 - Program Benefit Management, Project Management Institute 2006]]		[[File:BenefitProgram1.png\|400px\|right\|thumb\| Figure 1 - Program Benefit Management, Project Management Institute 2006]]

	The definition of a Programme is, that a Programme contains a group of related projects which are managed in a coordinated way to obtain benefits and control of the overall outcome. This approach would not be possible by managing these projects individually, without the umbrella of a programme. Programmes may include elements of related work (e.g., ongoing operations) outside the scope of the discrete projects in a Programme. <ref name=''The Standard for Program Management: What is a Program.''> '' Project Management Institute. ''The Standard for Program Management: What is a Program''. Project Management Institute, Inc, 2006.'' </ref> When a large project is split into multiple related projects with explicit management of the benefits, then the effort becomes a Programme.<ref name=''The Standard for Program Management: What is a Program.''> '' Project Management Institute. ''The Standard for Program Management: What is a Program''. Project Management Institute, Inc, 2006.'' </ref> In General Programme Management is used for the creation of portfolios of projects <ref>'' Gray, R.J., 1997. '' ''Alternative approaches to programme management 5–9. Int.J. Proj. Manag. 15'' </ref>, implementation of strategies <ref ~~name=''''Attributes and levels of programme management competence: an interpretive study 87–95''~~> '' Partington, D., Pellegrinelli, S., Young, M., 2005, Int. J. Proj. Manag. 23'' </ref> and change generation in products, businesses or ways of working.<ref> Pellegrinelli, S., 1997. '' '' Programme management: organising project-based change 141–149. Int. J. Proj. Manag. 15 '' </ref>		The definition of a Programme is, that a Programme contains a group of related projects which are managed in a coordinated way to obtain benefits and control of the overall outcome. This approach would not be possible by managing these projects individually, without the umbrella of a programme. Programmes may include elements of related work (e.g., ongoing operations) outside the scope of the discrete projects in a Programme. <ref name=''The Standard for Program Management: What is a Program.''> '' Project Management Institute. ''The Standard for Program Management: What is a Program''. Project Management Institute, Inc, 2006.'' </ref> When a large project is split into multiple related projects with explicit management of the benefits, then the effort becomes a Programme.<ref name=''The Standard for Program Management: What is a Program.''> '' Project Management Institute. ''The Standard for Program Management: What is a Program''. Project Management Institute, Inc, 2006.'' </ref> In General Programme Management is used for the creation of portfolios of projects <ref>'' Gray, R.J., 1997. '' ''Alternative approaches to programme management 5–9. Int.J. Proj. Manag. 15'' </ref>, implementation of strategies <ref> Partington, D., Pellegrinelli, S., Young, M., 2005. '' Attributes and levels of programme management competence: an interpretive study 87–95. Int. J. Proj. Manag. 23
			'' </ref>
			and change generation in products, businesses or ways of working.<ref> Pellegrinelli, S., 1997. '' '' Programme management: organising project-based change 141–149. Int. J. Proj. Manag. 15 '' </ref>
	The distinction between a Project and a Programme is given by the benefits which a Programme provides over and above those that projects can achieve on their own, as shown in figure 1 <ref> Pellegrinelli, S., 1997. '' '' Programme management: organising project-based change 141–149. Int. J. Proj. Manag. 15 '' </ref>		The distinction between a Project and a Programme is given by the benefits which a Programme provides over and above those that projects can achieve on their own, as shown in figure 1 <ref> Pellegrinelli, S., 1997. '' '' Programme management: organising project-based change 141–149. Int. J. Proj. Manag. 15 '' </ref>

Linus R.V: /* Definition */

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Definition

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	[[File:BenefitProgram1.png\|400px\|right\|thumb\| Figure 1 - Program Benefit Management, Project Management Institute 2006]]		[[File:BenefitProgram1.png\|400px\|right\|thumb\| Figure 1 - Program Benefit Management, Project Management Institute 2006]]

	The definition of a Programme is, that a Programme contains a group of related projects which are managed in a coordinated way to obtain benefits and control of the overall outcome. This approach would not be possible by managing these projects individually, without the umbrella of a programme. Programmes may include elements of related work (e.g., ongoing operations) outside the scope of the discrete projects in a Programme. <ref name=''The Standard for Program Management: What is a Program.''> '' Project Management Institute. ''The Standard for Program Management: What is a Program''. Project Management Institute, Inc, 2006.'' </ref> When a large project is split into multiple related projects with explicit management of the benefits, then the effort becomes a Programme.<ref name=''The Standard for Program Management: What is a Program.''> '' Project Management Institute. ''The Standard for Program Management: What is a Program''. Project Management Institute, Inc, 2006.'' </ref> In General Programme Management is used for the creation of portfolios of projects <ref>'' Gray, R.J., 1997. '' ''Alternative approaches to programme management 5–9. Int.J. Proj. Manag. 15'' </ref>, implementation of strategies <ref name=''''Attributes and levels of programme management competence: an interpretive study 87–95''> '' Partington, D., Pellegrinelli, S., Young, M., 2005, Int. J. Proj. Manag. 23'' </ref> and change generation in products, businesses or ways of working. <ref ~~name=~~''''Programme management: organising project-based change 141–149''. Int. J. Proj. Manag. 15~~''> '' Pellegrinelli, S., 1997~~'' </ref>		The definition of a Programme is, that a Programme contains a group of related projects which are managed in a coordinated way to obtain benefits and control of the overall outcome. This approach would not be possible by managing these projects individually, without the umbrella of a programme. Programmes may include elements of related work (e.g., ongoing operations) outside the scope of the discrete projects in a Programme. <ref name=''The Standard for Program Management: What is a Program.''> '' Project Management Institute. ''The Standard for Program Management: What is a Program''. Project Management Institute, Inc, 2006.'' </ref> When a large project is split into multiple related projects with explicit management of the benefits, then the effort becomes a Programme.<ref name=''The Standard for Program Management: What is a Program.''> '' Project Management Institute. ''The Standard for Program Management: What is a Program''. Project Management Institute, Inc, 2006.'' </ref> In General Programme Management is used for the creation of portfolios of projects <ref>'' Gray, R.J., 1997. '' ''Alternative approaches to programme management 5–9. Int.J. Proj. Manag. 15'' </ref>, implementation of strategies <ref name=''''Attributes and levels of programme management competence: an interpretive study 87–95''> '' Partington, D., Pellegrinelli, S., Young, M., 2005, Int. J. Proj. Manag. 23'' </ref> and change generation in products, businesses or ways of working.<ref> Pellegrinelli, S., 1997. '' '' Programme management: organising project-based change 141–149. Int. J. Proj. Manag. 15 '' </ref>
	The distinction between a Project and a Programme is given by the benefits which a Programme provides over and above those that projects can achieve on their own, as shown in figure 1 <ref ~~name=~~''Programme management: organising project-based change 141–149''. Int. J. Proj. Manag. 15~~''> '' Pellegrinelli, S., 1997~~'' </ref>		The distinction between a Project and a Programme is given by the benefits which a Programme provides over and above those that projects can achieve on their own, as shown in figure 1 <ref> Pellegrinelli, S., 1997. '' '' Programme management: organising project-based change 141–149. Int. J. Proj. Manag. 15 '' </ref>

	==== Differentiating factors ====		==== Differentiating factors ====

Linus R.V: /* Interface */

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Interface

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	This section seeks to define the interface between Programme and Portfolio Management. The Interface and correlation between Programme and Project Portfolio Management may be the reason for confusion when one is trying to understand the differences. The differentiating factors stated in the previous sections should give the reader an idea of the distinction of the terms, which now will be more detailed by the definition of the interface.		This section seeks to define the interface between Programme and Portfolio Management. The Interface and correlation between Programme and Project Portfolio Management may be the reason for confusion when one is trying to understand the differences. The differentiating factors stated in the previous sections should give the reader an idea of the distinction of the terms, which now will be more detailed by the definition of the interface.
	[[File:Cross1.png\|400px\|right\|thumb\| Figure 3 - Cross-Company Portfolio Management Process Relationships, Project Management Institute 2006]]		[[File:Cross1.png\|400px\|right\|thumb\| Figure 3 - Cross-Company Portfolio Management Process Relationships, Project Management Institute 2006]]
	It is important to understand the responsibilities in relation to the different components of a Project Portfolio. As described in the section above about Project Portfolio´s : The role of the Project Portfolio Management is the collection, identification, categorisation, evaluation, selection, balance and review of components. That means that once the components (Project and/or Programme) are authorized for the perspective Project Portfolio, it becomes the responsibility of the Programme/Project Management team to take control of the components and apply the correct management processes to ensure that the work is done effectively and efficiently. This is illustrated in Figure 3. It is then the responsibility of the Programme/Project Management team to monitor planned-to-actual performance (time, budget, resources, quality, and scope) of the components and provide the Project Portfolio Management with consolidated information.<ref>[''Project Management Institute, Inc, 2006''] '' The Standard for Program Management: Portfolio Management Process Overview '' </ref> This information is used in Portfolio reviews to determine required actions. Programme and Project Management may work together with Portfolio Management to determine "go/no go" criteria for proposed and current components, including "termination criteria" (phase gates). Programme and Project Management may also work together with Portfolio Mangement in capacity planning by inputting resource requirements (e.g., human resources, financial and physical assets). <ref>'' Project Management Institute, Inc, 2006.		It is important to understand the responsibilities in relation to the different components of a Project Portfolio. As described in the section above about Project Portfolio´s : The role of the Project Portfolio Management is the collection, identification, categorisation, evaluation, selection, balance and review of components. That means that once the components (Project and/or Programme) are authorized for the perspective Project Portfolio, it becomes the responsibility of the Programme/Project Management team to take control of the components and apply the correct management processes to ensure that the work is done effectively and efficiently. This is illustrated in Figure 3. It is then the responsibility of the Programme/Project Management team to monitor planned-to-actual performance (time, budget, resources, quality, and scope) of the components and provide the Project Portfolio Management with consolidated information.<ref>''Project Management Institute, Inc, 2006'' '' The Standard for Program Management: Portfolio Management Process Overview '' </ref> This information is used in Portfolio reviews to determine required actions. Programme and Project Management may work together with Portfolio Management to determine "go/no go" criteria for proposed and current components, including "termination criteria" (phase gates). Programme and Project Management may also work together with Portfolio Mangement in capacity planning by inputting resource requirements (e.g., human resources, financial and physical assets). <ref>'' Project Management Institute, Inc, 2006.
	'' '' The Standard for Portfolio Management: The The Links between Portfolio Management and Program and Project Management '' </ref>		'' '' The Standard for Portfolio Management: The The Links between Portfolio Management and Program and Project Management '' </ref>

Linus R.V: /* Interface */

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Interface

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	This section seeks to define the interface between Programme and Portfolio Management. The Interface and correlation between Programme and Project Portfolio Management may be the reason for confusion when one is trying to understand the differences. The differentiating factors stated in the previous sections should give the reader an idea of the distinction of the terms, which now will be more detailed by the definition of the interface.		This section seeks to define the interface between Programme and Portfolio Management. The Interface and correlation between Programme and Project Portfolio Management may be the reason for confusion when one is trying to understand the differences. The differentiating factors stated in the previous sections should give the reader an idea of the distinction of the terms, which now will be more detailed by the definition of the interface.
	[[File:Cross1.png\|400px\|right\|thumb\| Figure 3 - Cross-Company Portfolio Management Process Relationships, Project Management Institute 2006]]		[[File:Cross1.png\|400px\|right\|thumb\| Figure 3 - Cross-Company Portfolio Management Process Relationships, Project Management Institute 2006]]
	It is important to understand the responsibilities in relation to the different components of a Project Portfolio. As described in the section above about Project Portfolio´s : The role of the Project Portfolio Management is the collection, identification, categorisation, evaluation, selection, balance and review of components. That means that once the components (Project and/or Programme) are authorized for the perspective Project Portfolio, it becomes the responsibility of the Programme/Project Management team to take control of the components and apply the correct management processes to ensure that the work is done effectively and efficiently. This is illustrated in Figure 3. It is then the responsibility of the Programme/Project Management team to monitor planned-to-actual performance (time, budget, resources, quality, and scope) of the components and provide the Project Portfolio Management with consolidated information.<ref>[''~~link/title~~''] '' The Standard for Program Management: Portfolio Management Process Overview '' </ref> This information is used in Portfolio reviews to determine required actions. Programme and Project Management may work together with Portfolio Management to determine "go/no go" criteria for proposed and current components, including "termination criteria" (phase gates). Programme and Project Management may also work together with Portfolio Mangement in capacity planning by inputting resource requirements (e.g., human resources, financial and physical assets). <ref>['' Project Management Institute, Inc, 2006.		It is important to understand the responsibilities in relation to the different components of a Project Portfolio. As described in the section above about Project Portfolio´s : The role of the Project Portfolio Management is the collection, identification, categorisation, evaluation, selection, balance and review of components. That means that once the components (Project and/or Programme) are authorized for the perspective Project Portfolio, it becomes the responsibility of the Programme/Project Management team to take control of the components and apply the correct management processes to ensure that the work is done effectively and efficiently. This is illustrated in Figure 3. It is then the responsibility of the Programme/Project Management team to monitor planned-to-actual performance (time, budget, resources, quality, and scope) of the components and provide the Project Portfolio Management with consolidated information.<ref>[''Project Management Institute, Inc, 2006''] '' The Standard for Program Management: Portfolio Management Process Overview '' </ref> This information is used in Portfolio reviews to determine required actions. Programme and Project Management may work together with Portfolio Management to determine "go/no go" criteria for proposed and current components, including "termination criteria" (phase gates). Programme and Project Management may also work together with Portfolio Mangement in capacity planning by inputting resource requirements (e.g., human resources, financial and physical assets). <ref>'' Project Management Institute, Inc, 2006.
	''] '' The Standard for Portfolio Management: The The Links between Portfolio Management and Program and Project Management '' </ref>		'' '' The Standard for Portfolio Management: The The Links between Portfolio Management and Program and Project Management '' </ref>

	== Discussion ==		== Discussion ==

Linus R.V: /* Definition */

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Definition

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	[[File:HighLevel.png\|400px\|right\|thumb\| Figure 2 - Portfolios, Programmes, and Projects - High Level View, Project Management Institute 2006]]		[[File:HighLevel.png\|400px\|right\|thumb\| Figure 2 - Portfolios, Programmes, and Projects - High Level View, Project Management Institute 2006]]
	The origins of Project Portfolio Management are found in the application of modern portfolio theory to the project selection problem first mentioned in the work of Markowitz.<ref>'' Markowitz, H.M. J. Financ. 7 (1), 1952'' '' Portfolio selection 77–91 '' </ref>		The origins of Project Portfolio Management are found in the application of modern portfolio theory to the project selection problem first mentioned in the work of Markowitz.<ref>'' Markowitz, H.M. J. Financ. 7 (1), 1952'' '' Portfolio selection 77–91 '' </ref>
	The definition of a Project Portfolio is a collection of projects and/or programmes and other work that are grouped together to facilitate effective management of that work to meet strategic business objectives. The Projects or Programmes of the portfolio (components) may not necessarily be interdependent or directly related. <ref>['' Project Management Institute, Inc, 2006.''] '' The Standard for Portfolio Management: The Portfolio Management Framework'' </ref> Project Portfolio Management is defined as a dynamic decision process, which constantly updates and revises active projects. <ref>['' Cooper et al., 1998a, b; Griffin, 1997; Graves et al., 2000; Ringuest et al., 1999; Roussel et al., 1991''] '' Cooper et al., 1998a, b; Griffin, 1997; Graves et al., 2000; Ringuest et al., 1999; Roussel et al., 1991'' </ref> Project Portfolio Management enables the organization to align the Project Portfolio to strategic objectives, thereby approving only the components that directly support business objectives, and considering the portfolio risk as a result of the mix of components in a Project Portfolio at any time. <ref>['' Project Management Institute, Inc, 2006''] ''The Standard for Program Management: The Relationship between Program Management and Portfolio Management'' </ref>		The definition of a Project Portfolio is a collection of projects and/or programmes and other work that are grouped together to facilitate effective management of that work to meet strategic business objectives. The Projects or Programmes of the portfolio (components) may not necessarily be interdependent or directly related. <ref>'' Project Management Institute, Inc, 2006.'' '' The Standard for Portfolio Management: The Portfolio Management Framework'' </ref> Project Portfolio Management is defined as a dynamic decision process, which constantly updates and revises active projects. <ref>'' Cooper et al., 1998a, b; Griffin, 1997; Graves et al., 2000; Ringuest et al., 1999; Roussel et al., 1991'' '' Cooper et al., 1998a, b; Griffin, 1997; Graves et al., 2000; Ringuest et al., 1999; Roussel et al., 1991'' </ref> Project Portfolio Management enables the organization to align the Project Portfolio to strategic objectives, thereby approving only the components that directly support business objectives, and considering the portfolio risk as a result of the mix of components in a Project Portfolio at any time. <ref>'' Project Management Institute, Inc, 2006'' ''The Standard for Program Management: The Relationship between Program Management and Portfolio Management'' </ref>

	It is stated that a Project Portfolio most likely is one of the most correct measures of an organisation´s intent, direction, and progress. Using this, an organisation can reasonably question components of a Project Portfolio when they are not aligned to the strategy. <ref>['' Project Management Institute, Inc, 2006''] ''The Standard for Program Management: The Relationship between Program Management and Portfolio Management'' </ref> Resultantly, Project Portfolio Management as a dynamic decision making process includes the collection, identification, categorisation, evaluation, selection, balance and review of components according to the organisation´s specific key indicators and the strategic plan. Figure 2 visualise a High Level view of a example of a portfolio, it is shown that the Portfolio can contain projects, programs and other portfolios. For example can a portfolio of a Business Unit, contain a portfolio of the project department within the Business Unit.		It is stated that a Project Portfolio most likely is one of the most correct measures of an organisation´s intent, direction, and progress. Using this, an organisation can reasonably question components of a Project Portfolio when they are not aligned to the strategy. <ref>'' Project Management Institute, Inc, 2006'' ''The Standard for Program Management: The Relationship between Program Management and Portfolio Management'' </ref> Resultantly, Project Portfolio Management as a dynamic decision making process includes the collection, identification, categorisation, evaluation, selection, balance and review of components according to the organisation´s specific key indicators and the strategic plan. Figure 2 visualise a High Level view of a example of a portfolio, it is shown that the Portfolio can contain projects, programs and other portfolios. For example can a portfolio of a Business Unit, contain a portfolio of the project department within the Business Unit.

	==== Differentiating factors ====		==== Differentiating factors ====

Linus R.V: /* Definition */

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Definition

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	The term Portfolio is widely used throughout many different organisations and has come to represent different meanings. Thus the focus of this section lies on Project Portfolio Management.		The term Portfolio is widely used throughout many different organisations and has come to represent different meanings. Thus the focus of this section lies on Project Portfolio Management.
	[[File:HighLevel.png\|400px\|right\|thumb\| Figure 2 - Portfolios, Programmes, and Projects - High Level View, Project Management Institute 2006]]		[[File:HighLevel.png\|400px\|right\|thumb\| Figure 2 - Portfolios, Programmes, and Projects - High Level View, Project Management Institute 2006]]
	The origins of Project Portfolio Management are found in the application of modern portfolio theory to the project selection problem first mentioned in the work of Markowitz.<ref>['' Markowitz, H.M. J. Financ. 7 (1), 1952''] '' Portfolio selection 77–91 '' </ref>		The origins of Project Portfolio Management are found in the application of modern portfolio theory to the project selection problem first mentioned in the work of Markowitz.<ref>'' Markowitz, H.M. J. Financ. 7 (1), 1952'' '' Portfolio selection 77–91 '' </ref>
	The definition of a Project Portfolio is a collection of projects and/or programmes and other work that are grouped together to facilitate effective management of that work to meet strategic business objectives. The Projects or Programmes of the portfolio (components) may not necessarily be interdependent or directly related. <ref>['' Project Management Institute, Inc, 2006.''] '' The Standard for Portfolio Management: The Portfolio Management Framework'' </ref> Project Portfolio Management is defined as a dynamic decision process, which constantly updates and revises active projects. <ref>['' Cooper et al., 1998a, b; Griffin, 1997; Graves et al., 2000; Ringuest et al., 1999; Roussel et al., 1991''] '' Cooper et al., 1998a, b; Griffin, 1997; Graves et al., 2000; Ringuest et al., 1999; Roussel et al., 1991'' </ref> Project Portfolio Management enables the organization to align the Project Portfolio to strategic objectives, thereby approving only the components that directly support business objectives, and considering the portfolio risk as a result of the mix of components in a Project Portfolio at any time. <ref>['' Project Management Institute, Inc, 2006''] ''The Standard for Program Management: The Relationship between Program Management and Portfolio Management'' </ref>		The definition of a Project Portfolio is a collection of projects and/or programmes and other work that are grouped together to facilitate effective management of that work to meet strategic business objectives. The Projects or Programmes of the portfolio (components) may not necessarily be interdependent or directly related. <ref>['' Project Management Institute, Inc, 2006.''] '' The Standard for Portfolio Management: The Portfolio Management Framework'' </ref> Project Portfolio Management is defined as a dynamic decision process, which constantly updates and revises active projects. <ref>['' Cooper et al., 1998a, b; Griffin, 1997; Graves et al., 2000; Ringuest et al., 1999; Roussel et al., 1991''] '' Cooper et al., 1998a, b; Griffin, 1997; Graves et al., 2000; Ringuest et al., 1999; Roussel et al., 1991'' </ref> Project Portfolio Management enables the organization to align the Project Portfolio to strategic objectives, thereby approving only the components that directly support business objectives, and considering the portfolio risk as a result of the mix of components in a Project Portfolio at any time. <ref>['' Project Management Institute, Inc, 2006''] ''The Standard for Program Management: The Relationship between Program Management and Portfolio Management'' </ref>