PROJ6005: Exploring Project and Portfolio Management Concepts

This assignment explores the distinctions between project management and portfolio management, highlighting their individual roles and strategic importance within an organization. The discussion post begins by defining project management as a temporary endeavor focused on achieving specific outcomes, while portfolio management is presented as a collection of projects and programs aligned with strategic organizational objectives. The assignment emphasizes that portfolio management should precede project management, focusing on risk assessment, resource allocation, and the selection of appropriate projects to enhance efficiency and reduce risks. The discussion also covers the tools and software used in project versus portfolio management. The assignment refers to references such as Kerzner (2010), Morris & Pinto (2010), and EPMC & Enterprise Portfolio Management Council (2011) to support arguments.

Running Head: PROJECT MANAGEMENT VS PORTFOLIO MANAGEMENT
A brief study of Portfolio Management and Project Management
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1PROJECT MANAGEMENT VS PORTFOLIO MANAGEMENT
Part 1:
Project Management and Portfolio Management are quite different from each other. It
involves two terms project and portfolio that has two different meaning. Project is defined as a
temporary endeavour that is performed to achieve or create a unique product. It is a single
undertaken task that consists a series of steps aimed at producing specific products and services
within certain period (Kerzner, 2010). Therefore, project management involves supervising
individual project, checking if the project is completed on time, achieving goals of the project
within specified budget while meeting the established requirements. Portfolio is a collection of
programs and projects that are executed for achieving the strategic objectives of the organization
(Morris & Pinto, 2010). Therefore, portfolio management involves setting priorities that will
increase the business value along with the increase in profit.
According to me, Portfolio management should be implemented before selecting the
processes and procedures of project management. Portfolio management in a broad sense
includes all the activities needed for carrying out successful operation in an organisation. It
involves analysing the risks involved in various projects and programs and checking the
available resources. After checking the required details, the project portfolio manager decides the
programs and projects that will be undertaken. This will increase the efficiency and effectiveness
of operations carried out by the particular organisation. It also reduces risks involved in the
projects. The project portfolio manager has the responsibility to look after these issues and
according to the demand of business select correct programs and projects.
Part 2:

2PROJECT MANAGEMENT VS PORTFOLIO MANAGEMENT
Bob Buttrick, a project manager once said that project management is the process of
making projects right whereas portfolio management is defined as the execution of the right
project. There is a thin line difference between the two discussed managements. Project
management is a part of portfolio management. As programs and projects are involved in a
portfolio, therefore portfolio management needs to done before selecting any project. Portfolio
management office (PMO) team performs project portfolio management that helps to manage the
projects within a portfolio (EPMC & Enterprise Portfolio Management Council. 2011). It is a
high-level process that is directly related to achieving the strategic goals of the organization. The
procedures and processes for project management should be confirmed after the identification of
risks and available resources.
Part 3:
There is a difference between the software used for project management and portfolio
management just like the difference between the project and portfolio. Microsoft Project is one
software that is used in project management to create Work Breakdown structure (WBS) and
Gantt charts (Thiry, M. & Gozzard, 2008). The software that is used in project portfolio
management is Planview’s project portfolio management solutions that helps in centralizing the
project as well as proper alignment of the project. Real time analytics is used to manage the
resources required for the portfolio. The three different approaches to understand portfolio
management in details are finance, education, marketing and politics.

3PROJECT MANAGEMENT VS PORTFOLIO MANAGEMENT
References:
EPMC, Inc., & Enterprise Portfolio Management Council. (2011). Project portfolio
management: A view from the management trenches. John Wiley & Sons.
Kerzner, H. (2010). Project management best practices: Achieving global excellence. John
Wiley & Sons.
Morris, P., & Pinto, J. K. (Eds.). (2010). The Wiley guide to project, program, and portfolio
management (Vol. 3). John Wiley & Sons.
Thiry, M. & Gozzard, R. (2008). Successfully implementing a portfolio management system in a
medium/large corporation. Paper presented at PMI® Global Congress 2008—Asia
Pacific, Sydney, New South Wales, Australia. Newtown Square, PA: Project
Management Institute.