When we talk about portfolios, programs and projects, it is inevitable to mention the business value which is the sum of tangible and intangible assets of an organization, also known as the net quantifiable benefit. When it comes to business value, at which level of the organization is the Business Value achieved?

Business value is the net quantifiable benefit derived from a business endeavor. While portfolios are structured to maximize value and programs deliver benefits, the actual value is realized or achieved when the outputs of projects and programs are transitioned into the organization's ongoing business operations. It is through the use of these new capabilities in day-to-day activities that the intended strategic objectives and business value are ultimately attained.

A. Program: Programs deliver benefits and outcomes, which are precursors to value, but value is realized when these benefits are integrated and used in operations.
B. Project: Projects deliver outputs and capabilities. They are enablers of value, but do not, by themselves, constitute the realization of business value.
C. Portfolio: A portfolio is a mechanism to select and manage components to optimize value delivery in alignment with strategy, not the level where value is achieved.

1. Project Management Institute. (2017). The Standard for Portfolio Management – Fourth Edition. Section 1.3, p. 9. "Business value is ultimately realized at the operational level..." Figure 1-4 illustrates how project/program outputs transition to operations to realize business value.

2. Aubry, M. (2015). Project Management Office (PMO): A Quest for Understanding. Project Management Journal, 46(5), 1-19. https://doi.org/10.1002/pmj.21527 (Discusses the PMO's role in enabling value realization, which occurs through business operations).