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1 - INTRODUCTION

1.4.1 Program Management
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A program is defined as a group of related projects, subprograms, and program activities managed in a
coordinated way to obtain benefits not available from managing them individually. Programs may include elements
of related work outside the scope of the discrete projects in the program. A project may or may not be part of a
program but a program will always have projects.

Program management is the application of knowledge, skills, tools, and techniques to a program in order to
meet the program requirements and to obtain benefits and control not available by managing projects individually.

Projects within a program are related through the common outcome or collective capability. If the relationship
between projects is only that of a shared client, seller, technology, or resource, the effort should be managed as a
portfolio of projects rather than as a program.
Program management focuses on the project interdependencies and helps to determine the optimal approach
for managing them. Actions related to these interdependencies may include:

• Resolving resource constraints and/or conflicts that affect multiple projects within the program,

• Aligning organizational/strategic direction that affects project and program goals and objectives, and
• Resolving issues and change management within a shared governance structure.

An example of a program is a new communications satellite system with projects for design of the satellite and
the ground stations, the construction of each, the integration of the system, and the launch of the satellite.

1.4.2 Portfolio Management

A portfolio refers to projects, programs, subportfolios, and operations managed as a group to achieve strategic
objectives. The projects or programs of the portfolio may not necessarily be interdependent or directly related. For
example, an infrastructure firm that has the strategic objective of “maximizing the return on its investments” may
put together a portfolio that includes a mix of projects in oil and gas, power, water, roads, rail, and airports. From
this mix, the firm may choose to manage related projects as one program. All of the power projects may be grouped
together as a power program. Similarly, all of the water projects may be grouped together as a water program.
Thus, the power program and the water program become integral components of the enterprise portfolio of the
infrastructure firm.

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©2013 Project Management Institute. A Guide to the Project Management Body of Knowledge (PMBOK Guide) – Fifth Edition 9

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