Page 20 - Organizational Project Management

Chapter 1—Foundational Concepts

undertaking changes to accomplish their goals, the concept of projects is a
natural means for them to manage the many dimensions of any initiative
in an orderly and repeatable manner. This is true whether the goal is the
development of a new software product, implementation of new systems
in an organization, or designing and building a bridge. A project is a tem-
porary endeavor undertaken to create a unique product, service, or result
(PMBOK Guide). Put simply, projects help organizations deliver desired
®
strategic changes in a changing world.

Figure 1-1: Projects and Programs are part of a Project Portfolio

Depending on the organization’s size, complexity, and sophistication, it
may initiate or manage multiple and interacting projects simultaneously.
Groups of projects sometimes constitute a program, which is a group of
related projects managed in a coordinated way to obtain benefits and con-
trol not available from managing them individually. Programs may include
elements of related work outside of the scope of the discrete projects in the
program.
Similarly, a Portfolio is a collection of projects and/or programs and other
work that are grouped together to facilitate effective management of that
work to meet strategic objectives. The projects or programs of the portfolio
may not necessarily be interdependent or directly related. Organizational
leaders, who are focused on the overall effectiveness of the entire organi-
zation, understand that projects, programs, and portfolios are well suited
to helping them achieve their strategic goals.
An organization’s alignment with strategies consists of many factors. For
example, several factors such as customer, product, process, and people
may all be considered when measuring strategic alignment. To meet cus-
tomer requirements, product quality and quality policies should be aligned
with the marketing strategy. Likewise, an organization should allocate its
resources—financial and human—in alignment with strategic objectives.

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