A portfolio comprises programs, projects, and operational work aligned to achieve specific business objectives. These components may not be directly related but share a common strategic goal. Portfolios optimize resource use, enhance organizational value, and reduce risk.
OPM is a framework ensuring portfolios, programs, and projects align with organizational strategy. It guides prioritization, execution, and measurement to achieve business objectives.
All organizational efforts should support business objectives, with strategy changes prompting adjustments or termination of misaligned projects.
Governance ensures alignment with organizational culture, structure, and business environment.
Sets policies/procedures for work execution, ensuring compliance with external (e.g., regulatory) and internal standards, overseen by a board of directors.
Aligns project practices with organizational governance, often managed by a PMO. It defines project manager authority and ensures compliance with regulations, safety, and policies.
Predictive vs. Agile Governance:
The organizational structure impacts project management, influencing authority, communication, and resource allocation.
Grouped by specialization (e.g., marketing, accounting). Projects occur within departments, with communication via department heads ("silos").
Organized by projects, with project managers having full control. Team members focus solely on project work and lack a "home" department post-project.
Combines functional and project-oriented models. Team members report to both project and functional managers.