Does your organization understand the relationships between portfolio management, program management and project management? Does your organization have the problem that one department does not know what is going on in the next department?

Remember organizations should use governance to establish strategic direction and performance parameters. I have seen companies start programs without understanding what the business value is, or what it could potentially provide the company. Business value is defined as the entire value of the business: the total sum of all tangible and intangible elements. Instituting new policies and strategic directions without evaluating the potential business value of those decisions can lead to increase risk and costs.

Organizational governance criteria can impose constraints on projects- particularly if the project delivers a service which will be subject to strict organizational governance.

OPM is a strategy execution framework utilizing project, program, and portfolio management as well as organizational enabling practices to consistently and predictably deliver organizational strategy producing better performance, better results, and a sustainable competitive advantage. These are the policies that put organizations at the forefront of their industry!

Portfolio, program, and project management are aligned with or driven by organizational strategies. Conversely, portfolio, program and project management differ in the way each contributes to the achievement of strategic goals. Each has a specific role to play within a larger ecosystem.

Portfolio Management aligns with organizational strategies by selecting the right programs or projects, prioritizing the work, and providing the needed resources.

Program Management harmonizes its projects and program components and control interdependencies in order to realize specific benefits. This helps to help organizations understand the larger picture. Project Management develops and implements plans to achieve a specific scope that is driven by the objectives of the program or portfolio it is subjected to. OPM advances organizational capability by linking project, program, and portfolio management principles.

Across projects, programs and portfolios there are 6 areas that are not being followed by many corporates.

1. Scope

2. Change

3. Planning

4. Management

5. Success

6. Monitoring

An organization should measure its capabilities, the plans and implement improvements towards the systematic achievement of best practices. There are various standards that the companies can use and monitor so don’t continue in the confusion.

Take a step back and look more closely at your own OPM. Where can it be improved? What types of benefits could your organization potentially reap by implementing or improving your own OPM mechanisms? OPM technology can streamline processes, and help organizations to communicate better between departments. Consider how an efficient OPM installation could help your company to improve.

Any feedback is welcomed.