Understanding portfolios, programmes and projects: Why chapter 3 of The Teal Book matters

Welcome to the third blog in our series on The Teal Book: Project delivery in government.

Each post will provide a short 5-minute introduction to one of the book’s parts or chapters. Every blog will be written by one of the authors, sharing their personal take on what it covers and how it can help you, as someone working in project delivery.

When we set out to write The Teal Book, our goal was simple: to provide a clear, practical and authoritative guide to project delivery in government that builds on the expectations of the functional standard. In this blog I will explore chapter 3 of The Teal Book, ‘Portfolios, programmes and projects’.

Outcomes, not just outputs

In many sectors, portfolios are typically viewed as vehicles for achieving strategic objectives, programmes as the means of delivering outcomes and benefits, and projects as the producers of outputs. But in government, this distinction doesn’t go far enough.

Both the Functional Standard for Project Delivery and The Teal Book are clear: projects, like programmes, must be designed to deliver outcomes. This means looking beyond immediate deliverables to the real-world changes they enable – such as improved public services, reduced carbon emissions, or better health outcomes.

This outcome-focused approach reflects the unique role of government in creating public value. It ensures that investment decisions are evidence-based, aligned with policy priorities, and centred on what matters most to citizens.

It also challenges us to rethink the traditional boundaries between portfolios, programmes, and projects. The distinction isn’t simply about whether we’re delivering objectives, outcomes, or outputs – it’s about how each can best contribute to meaningful, measurable change based on what is being delivered.

So what’s the difference?

Portfolios

A portfolio comprises part or all of an organisation’s investment required to achieve its objectives. A portfolio comprises work components – such as other portfolios, programmes, projects and other related work – and is managed on a continuous basis with no defined end point.

Portfolios are important because they give the organisation the big picture. They help align change initiatives with strategic direction, ministerial priorities and organisational goals. They make it easier to prioritise, allocate resources and decide where to invest for maximum public value.

Governed through a portfolio plan and shaped by Spending Reviews, portfolios offer the flexibility to respond to changing needs and manage uncertainty. They are especially useful for balancing competing priorities and keeping a department or organisation aligned.

Programmes

A programme is a temporary, flexible structure created to co-ordinate, direct and oversee the implementation of a set of projects and other related work that together deliver outcomes and benefits aligned with strategic objectives.

Programmes often span several years and are delivered in tranches, each of which is usually structured around distinct step changes in the solution being delivered and the benefits being realised.

Programmes are ideal for complex environments. They allow for phased delivery, learning and re-prioritisation. They also provide a structure for managing interdependencies, risks and benefits across multiple initiatives.

Each programme has a senior responsible owner who is accountable for its success and owns the business case – ensuring the programme is viable, desirable, and achievable.

Projects

A project is a temporary management environment created to deliver one or more products and outcomes. Projects are delivered in stages which are preceded by a gate (a decision point) to authorise the start of the next stage and commit resources and funding.

Projects are best suited to work that is less complex, with fewer interdependencies and greater certainty around scope, budget and timescales. Like programmes, projects are governed through a business case, owned by a senior responsible owner, which brings clarity, accountability and intention to delivery over a defined period.

Work packages

A work package is a component part of a project or other related work in a programme. It consists of a set of information and planned activities relevant to one or more deliverables, outputs or outcomes. Work packages help break down work into manageable parts, making it easier to assign responsibilities, track progress, and ensure alignment with overall delivery goals.

How to decide whether work should be managed as a portfolio, programme or project

In many cases, it’s clear whether work should be managed as a portfolio, programme or project. The scale, complexity and interdependencies point you in the right direction by asking yourself:

• are you coordinating multiple related changes or delivering a single change?
• what are the interdependencies involved and the number that exist?
• what level of governance and decision – making is proportionate?

But sometimes, the distinction isn’t obvious. In those cases, professional judgment is key. Figure 3.2 in The Teal Book, shows where decisions may need to made between delivery vehicles.

When choosing the most appropriate delivery vehicle, it’s useful to consider not just the definitions, but the strengths each approach can offer.

When choosing the most appropriate delivery structure, it can be useful, especially for programmes and projects, to develop an initial view of the work required and to draft out what the life cycle for that work could look like. This includes things like the phases of delivery, assurance reviews and decision points. Doing so can help provide and early assumption on which governance and management structure best supports the work which can then be tested as definitional work progresses and matures. Chapter 14 of The Teal Book provides more information on programme and project life cycles.

However, it’s not just a question of whether it should be a portfolio or a programme, a programme or a project, or a project or a work package. We also need to keep the project delivery hierarchy in mind. It tells us that:

• a programme should always form part of a portfolio
• a project should always form part of a programme or be standalone in a portfolio
• a work package should always form part of a project or other defined work component

Final thoughts

Chapter 3 of The Teal Book is more than a taxonomy. It’s a reminder to think strategically about how best to deliver change in government. Whether you’re a senior responsible owner, portfolio director or portfolio, programme or project manager, this chapter offers insights that can help you make decisions about how best to structure work so better outcomes can be delivered.

And so over to you:

• read chapter 3 of The Teal Book on portfolios, programmes and projects
• continue to explore the Functional Standard for Project Delivery
• think about your current initiatives – are they using the right delivery vehicle for the work?