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1 - INTRODUCTION
1
Portfolio
Program Program
Project Project Project Project
Project Project Project Project
Project Project Project Project
Project Project Project Project
Figure 1-1. Relationships Among Portfolios, Programs, and Projects
Many software projects are not parts of programs and not all organizations manage software projects on a
portfolio basis. In these cases, each software project exists as an independent entity. Some software projects may
be part of programs and some programs may be included in portfolios.
Software product lines are similar to programs. A product line consists of a base component that supports
additions and extensions, which result in specific products within the product line. For example, a product line could
consist of a base component for financial accounting to which different user interfaces are added to accommodate
different languages and cultures. A product baseline may evolve over time. Product lines are sometimes included
in portfolios.
While software has a strong impact on organizations and their operations (both infrastructure software and
application software), there are different ways in which software can generate value, for example, financial value,
social value, public welfare, and impact on work places and recreational environments. Therefore, establishing
prioritization criteria for programs and projects within a portfolio may be a difficult balancing act among different
value criteria.
1.4.1 Portfolio Management
®
As stated in the PMBOK Guide, a portfolio refers to a collection of projects or programs and other work that are
grouped together to facilitate effective management of that work to meet strategic business objectives.
Organizations whose primary mission is the development and modification of software sometimes treat software
projects as elements of a portfolio in order to increase efficiency and effectiveness of their work activities and to
©2013 Project Management Institute. Software Extension to the PMBOK Guide Fifth Edition 9
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