Introducing PPM Hierarchy
Power Framework PPM supports the typical 3-level Project Portfolio Management hierarchy of Portfolio, Programme, Project:
In overview, these entities can be described as follows:
| Definition | Scope | Management | |
| Portfolio | A portfolio is the highest level in PPM and represents the entire collection of projects, programmes, and ongoing operational work within an organisational area. The purpose of a portfolio is to achieve the organisation’s strategic objectives by balancing investments in various initiatives. | Portfolios cover all strategic initiatives within an organisational area, including projects and programmes that may not be directly related but are part of the organisation's overall strategic goals. The scope is broad, encompassing the entire set of investments in change initiatives within the area. | Portfolio management is about selecting, prioritizing, and overseeing the execution of all projects and programmes to align with the organisation’s strategic objectives. Portfolio managers are responsible for resource allocation, balancing risk, ensuring alignment with strategic goals, and optimizing the overall return on investment. They ensure that the right projects and programmes are undertaken and that they collectively move the organisation towards its strategic vision. |
| Programme | A programme is a group of related projects managed in a coordinated manner to achieve benefits and control that would not be available from managing them individually. The projects within a programme are connected by a common goal or strategy. | Programmes have a broader scope than individual projects. They focus on achieving strategic business objectives through the coordinated management of multiple related projects. For example, a programme to enhance customer experience might include projects like improving the website, upgrading the CRM system, and retraining customer service staff. | Programme management involves aligning and coordinating the projects within the programme, managing interdependencies, optimizing resources across projects, and ensuring that the programme delivers its intended benefits. Programme managers focus on the big picture, ensuring that the collective efforts of the projects contribute to the strategic goals. |
| Project | A project is a temporary, individual effort undertaken to create a unique product, service, or result. It has a defined start and end date, specific objectives, and a scope that outlines what will be delivered. | Projects are focused on delivering specific outputs within constraints like time, cost, and quality. For example, building a new website, launching a marketing campaign, or developing a new software feature. | Project management involves planning, executing, and closing a project. Project managers are responsible for leading the project team, managing resources, tracking progress, and ensuring that the project meets its objectives. |