What a Project Is and What It Is Not

The starting point in discussing how projects should be properly managed is to first understand what a project is (and what it is not). According to the PMBOK, a project has two main characteristics that differentiate it from regular, day-to-day operation. Know these two characteristics of projects.

A Project Is Temporary

Unlike day-to-day operation, a project has specific starting and ending dates. Of the two dates, the ending date is the more important. A project ends either when its objectives have been met or when the project is terminated due to its objectives not being met. If you can't tell when an endeavor starts or ends, it's not a project. This characteristic is important because projects are, by definition, constrained by a schedule.

A Project Is an Endeavor Undertaken to Produce a Unique Product or Service

In addition to having a discrete timeframe, a project must also have one or more specific products or services it produces. A project must "do" something. A project that terminates on schedule might still not be successful it must also produce something unique.

The PMP exam will contain a few questions on the definition of a project. Simply put, if an endeavor fails to meet both of the project criteria, it is an operational activity. Remember this: Projects exist to achieve a goal. When the goal is met, the project is complete. Operations conduct activities that sustain processes, often indefinitely.

Programs, Portfolios, and the PMO

It is common practice for an organization to have more than one project active at a time. In fact, several projects that share common characteristics or are related in some way are often grouped together to make management or the project more efficient. A group of related projects is called a program. If there are multiple projects and programs in an organization, they can further be grouped together into one or more portfolios. A portfolio is a collection of projects and programs that satisfy the strategic needs of an organization.

The PMP exam and the PMBOK only cover techniques to manage single projects. You need to know what programs and portfolios are, but you will only address single project management topics in regards to the exam.

Many organizations are finding that project management is so effective that they maintain an organization unit with the primary responsibility of managing projects and programs. The unit is commonly called the project management office (PMO). The PMO is responsible for coordinating projects and, in some cases, providing resources for managing projects. A PMO can make the project manager's job easier by maintaining project management standards and implementing policies and procedures that are common within the organization.