PMP Tutorial › Module 2 › Lesson 3
Project Management Fundamentals
Every PMP question assumes a shared vocabulary. This lesson covers the foundations — what a project is, how projects, programs and portfolios relate, the PMO, organisational structures, the project manager's role, and the constraints you constantly balance.
In this lesson
What is a project?
A project is a temporary endeavour undertaken to create a unique product, service or result. "Temporary" means it has a definite start and end; "unique" distinguishes it from operations, which are ongoing and repetitive. Projects produce deliverables and, ultimately, business value.
Projects, programs & portfolios
| Term | Definition | Focus |
|---|---|---|
| Project | A single temporary effort with a unique output | Deliverables & outcomes |
| Program | Related projects managed together for benefits not available individually | Coordinated benefits |
| Portfolio | All projects, programs and operations grouped to meet strategic goals | Strategic alignment & ROI |
Think of it as a hierarchy: portfolios contain programs and projects; programs contain projects. The higher you go, the more it's about strategy and less about execution.
The PMO (Project Management Office)
A PMO standardises project governance. There are three types, by degree of control:
- Supportive — provides templates, training and lessons learned (low control).
- Controlling — requires compliance with frameworks and reviews (moderate control).
- Directive — directly manages the projects; PMs report into it (high control).
Organisational structures
Structure determines how much authority the PM holds — a frequent exam theme:
| Structure | PM authority | Who controls the budget |
|---|---|---|
| Functional | Little / none | Functional manager |
| Weak matrix | Low | Functional manager |
| Balanced matrix | Moderate (shared) | Shared |
| Strong matrix | High | Project manager |
| Projectised | High / total | Project manager |
The PM's role & the competing constraints
The project manager leads the team and integrates all the moving parts to deliver value. PMI frames leadership as the PMI Talent Triangle: Ways of Working, Power Skills (leadership/communication) and Business Acumen.
You constantly balance the competing constraints: scope, schedule, cost, quality, resources and risk. Change one and others shift — squeeze the schedule and cost or risk usually rises. Managing those trade-offs is project management.