Hierarchical View: Portfolios, Programs, and Projects

Correct Answer: Programs are comprised of interrelated projects that contribute to a common strategic objective, while portfolios are collections of programs and projects aligned with organizational goals.

The correct answer is that programs are comprised of interrelated projects that contribute to a common strategic objective, while portfolios are collections of programs and projects aligned with organizational goals. This accurately describes the hierarchical relationship between portfolios, programs, and projects. Portfolios are at the highest level, consisting of multiple programs and projects that support the overall organizational strategy. Programs sit below portfolios and are made up of related projects that work together to achieve a common goal or benefit. Projects are the lowest level in the hierarchy and deliver specific outputs that contribute to program and portfolio objectives. The other answers incorrectly state the relationships, such as putting projects at the highest level or suggesting programs and portfolios are the same.

Correct Answer: Ensuring alignment and coordination among projects to achieve strategic objectives

A program manager's primary role is to ensure alignment and coordination among projects within the program to achieve the organization's strategic objectives. This involves overseeing multiple related projects and managing their interdependencies to ensure they collectively contribute to the program's overall goals. The program manager is responsible for the program's success as a whole, rather than focusing solely on individual projects. While project managers handle the day-to-day management of their respective projects, the program manager maintains a higher-level perspective, ensuring that the projects are properly prioritized, resourced, and aligned with the organization's strategy. Portfolio managers, on the other hand, are responsible for prioritizing and allocating resources across an organization's entire project portfolio, which may include multiple programs and stand-alone projects.

Correct Answer: Projects are components of programs, and programs are components of portfolios

In the hierarchical structure, projects represent the base level and are grouped within programs to achieve specific benefits. Programs, which are made up of these projects, are then organized into portfolios based on strategic objectives, ensuring alignment with organizational goals.