How does a Portfolio Management Plan differ from a Project Management Plan?

Scope and Focus

A Project Management Plan focuses on a single project. It defines the scope, deliverables, schedule, budget, risks, and resources needed for that specific project. In contrast, a Portfolio Management Plan manages a group of related or unrelated projects and programs collectively, ensuring they align with business goals.

Decision-Making Level

Project management is tactical, dealing with day-to-day tasks, milestones, and outputs. Portfolio management is strategic, focusing on whether the right projects are being executed to achieve long-term goals.

Resource Allocation

In project management, resources are allocated within the context of one project. Portfolio management involves resource allocation across multiple projects, prioritizing based on strategic importance.

Performance Measurement

Project management evaluates success based on whether the project is delivered on time, within budget, and meets the agreed scope. Portfolio management assesses performance by the overall return on investment, strategic alignment, and value delivery.