How do program management and portfolio management differ?

The distinction between program management and portfolio management is crucial for understanding how organizations align their projects and programs with strategic objectives. In the context of the provided question, the correct choice highlights that program management focuses on managing individual projects that are interconnected and aligned under a single program’s goals, while portfolio management oversees a compilation of projects and programs to ensure they collectively contribute to the organization's strategic objectives.

Program management is concerned with optimizing performance and ensuring coordination among related projects, leveraging shared resources and risks to achieve benefits that would not be possible if those projects were managed separately. On the other hand, portfolio management deals with selecting, prioritizing, and managing an organization’s overall set of projects and programs based on resource constraints, strategic alignment, and the potential for return on investment.

This understanding of the roles emphasizes that while both functions aim to achieve organizational success, they operate at different scopes—program management focuses on the synergy and efficiency of specific projects under a program, while portfolio management considers a broader view of how all projects and programs fit together within the strategic framework of the organization.