HSA 4191 Chapter 11: Program Management vs Portfolio Management
Program Management
• Organizations that put in place program management capabilities have moved beyond
managing individual projects to managing the interrelationships between projects and/or
preexisting applications and systems
• Managing this level of complexity takes slightly longer to plan up front, the extra time expended
is recovered during the execution phase of the project in the form of reduced surprises and cost
overruns associated with unforeseen interdependencies
• The critical dependency analysis and management depicted in Exhibits 11.7 and 11.8 are simply
extended beyond a single project to interdependencies that exist within a particular program of
projects or even across the HIT portfolio
Portfolio Management
• Along with the professional project management expertise described in the previous sections---
organizations that employ a portfolio management approach also have tightly coupled HIT
governance with its PMO
o Essentially making decisions about which information technology to invest in and which
not to invest in
• This of project and/or program management as ensuring that things are done right within a
particular project
• Portfolio management concerns itself with doing the right kinds of projects that align with the
organization’s oerall strategic goals and objectives
o This distinction is why a PMO must work hand-in-hand ith and organization’s HIT
governance structure
o Exhiit 11.9 shos a HIT portfolio of all the projets that are in flight at a for-profit
healthcare organization
▪ Prior to its annual HIT capital budget process, the organization, using the
knowledge gained from professionally managing its portfolio of current HIT
project puts together a profile of all the current HIT projects already in flight and
rated them on the basis of value and risk
▪ The organization further labeled each quadrant
• The lower left quadrant, which represents to low-value and high risk HIT
projects
o Is laeled Think Tie or More
• The upper right quadrant represents HIT projects that are deemed to
both be of high value and have low risk associated with implementation
o It is laeled Ideal
▪ The size of the bubbles in the exhibit denotes the size in relative dollars of each
individual project
▪ Projects are categorized into
• nondiscretionary projects
o some projects are mandated by law, such as the Sarbanes-Oxley
Act
• Discretionary projects
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