This is excellent explanation!thanks for sharing. Note: Related projects may or may not be similar. Introduction The difference between Projects and Programs has been ignored or confused for too long. Plus receive relevant career tips and grad school advice. The difference between Project, Programme and Portfolio Management ... Two important concepts that help projects meet enterprise goals are the use of programs and project portfolio management. Whether he is given a program or a project does not mean much to a layman, but to a manager, it means a lot as both entail different functions and responsibilities that will be clear only when the differences between project and program are elucidated. Project portfolio management (PPfM) is fundamentally different from project and program management. Dear Praveen Malik ,thank you very much.It is an awesome justification.I have great gratitude for effort and consideration.It is very useful professional illustration. They must do this all while working to ensure the project meets the quality guidelines required by its customers, which is not an easy task. > The difference between Project, Portfolio and Program Management. A project could be temporarily moved out of the portfolio or permanently moved out of what that portfolio entails. Outcome (product, service or result) of one project may be used by the other projects within the same program. For the ones who know, its obvious, but for those who dont, a little help is good. Given below is my attempt to explain the basic differences between Projects, Programs and Portfolio. The program manager also doesn’t micromanage those projects; he or she is helping ensure that the right work is moving between the right projects at the right points in time. Building Your Project Management Career Path, In some cases, it’s important that a group of projects is managed in a coordinated way to ensure that value is achieved. In project management terms, this collection of projects becomes. It took me a while to get here but I am glad I found your site. Many authors still describe a programme as a portfolio of projects. The program manager is responsible for overseeing the dependencies between projects and creating program-level plans to accomplish this. Mind mapping. It may also be the case that, as we get into performing a project or program, we find it no longer aligns, causing a reprioritization of all projects and programs in the portfolio. If all the projects within the program are not successful, the final goal of a program is either not met or partially met. But there are key differences between each role. The projects and programs within a portfolio are not related to each other. Do you use them differently? Each are different, but most effective when managed as one. But there are stark differences that separate the three. Project Managmenet exists in a broader context that includes program management and portfolio management. In-Demand Biotechnology Careers Shaping Our Future, The Benefits of Online Learning: 7 Advantages of Online Degrees, How to Write a Statement of Purpose for Graduate School, Online Learning Tips, Strategies & Advice, How to Stay Updated on Regulatory Changes, 360 Huntington Ave., Boston, Massachusetts 02115. They are often tasked with asking “Why?” (i.e. A real estate company is in the business of constructing buildings and performing related work to fulfill the unmet public demand. Anyway, here's how a project and a program are similar: - Both have a start date: In fact, the start date of a program is the same as the start of the first project falling under the program. The relationship between project, program, and portfolio management can best be described like this: Put another way, projects fit within larger programs, which themselves fit within portfolios. It requires completely different techniques and perspectives. Finally a question that is about the similarities, and not the differences between a project and a program. Portfolio management is the centralized management of one or more portfolios to achieve an organization’s strategic objectives. The Agile community argues, rightly, that you normally can’t get all of these at the same time. This is done to ensure projects align with an organization’s strategies, goals, and objectives. Relationship between Project, Program and Portfolio: As a project manager, you should know the basic concepts of program and portfolio and how they are related to each other and to projects. The role of a manager is related to the tasks expected from her/him. Different divisions like Refrigerator Division, Washing Machine Division and AC Division would be sub-portfolios. scope and including associated qualityimplications). You can also refer to Max Wideman Glossary to read some other standard definitions of Portfolio. In some cases, it’s important that a group of projects is managed in a coordinated way to ensure that value is achieved. Both project and portfolio management each focus on achieving goals in a timely and resourceful fashion. A program tends to have greater levels of uncertainty. Project Management includes, among many other things, balancing the project constraints. Program Management concerns the management of several related or similar projects. PMBOK GuideProject Management includes, among many other things, balancing the project constraints. Generally. Programs may include some operational work to support the projects under the program. Organizational benefits like reduction in costs, increase in profits, and a good return on investments. The constituents of a portfolio are used to fulfill strategic business objectives of an organization. There is a difference between Project, Program and Portfolio but many people use these terms interchangeably in day to day conversations. Portfolios are aligned to the business and industrial domain of an organization. Before Praxis arrived an aspiring project or program manager would have to look at several courses to learn the core skills of a competent, well-rounded manager. The role of respective managers is to complete these tasks. PMP Boot Camp Online: Which Is The Best Training Course? So, what exactly does “project” mean in the world of project management? A consumer durable company is in the business of design, development, marketing, and servicing consumer products like refrigerators, washing machines, air-conditioners (AC) etc. To be effective, it is essential that the project managers, program managers, and portfolio managers within an organization all understand the roles that each other plays in bringing about the successful completion of a strategic goal. A portfolio is a collection of projects and programs that are managed as a group to achieve strategic objectives. It will enable me to meet my life objectives. Commercial Portfolio could include construction of malls, shopping complexes, and office buildings while Residential Portfolio could include construction of residential buildings, and row houses. The program manager is then not managing the projects, but rather providing the oversight needed to ensure that the pieces of each project are completed effectively and efficiently in order to meet the needs of the other projects. structure supports the objective of effective program management. However, in the flowchart in the same chapter , it is shown that operations also part of program. Major Trends Affecting Global Business Management, 5 Time Management Strategies for Project Managers, Tips for Taking Online Classes: 8 Strategies for Success. Earning a. , and gain a competitive advantage in the field. Each sub-portfolio would be headed by a Division Head like a Vice President. Strategic business objectives could include maximization of profits, building brand & reputation, reducing overall costs, and optimization of resource usage. Editor’s note: This post was originally published in September 2017 and has since been updated for accuracy and comprehensiveness. Program managers are more concerned with strategic alignment: Understanding what individual project managers are doing and enabling effective communication between them in order to understand where projects are and in order to provide support where necessary. Just notice the major tasks written in the table above. from Northeastern can jumpstart your career today. One question that troubles many is the difference between a program and project. Related projects, subsidiary programs, and program activities that are managed in a coordinated manner to obtain benefits not available from managing them individually. Management. Thanks for it was very clearly described – very useful for me. The provided information helped me a lot to clear my concepts on the mentioned terms. But, these (program) operations are not managed by program team. Optimization of organizational cost, resources etc. Like a project, a program is a temporary organization, so when the related projects are complete, the program is complete. Behind every successful project is a leader who forged its path. /* Add your own Mailchimp form style overrides in your site stylesheet or in this style block. Each project in a program creates a unique product, service or a result. The Project Management Institute (PMI) describes program management in its, , a portfolio includes, “Projects, programs, other portfolios, and operations managed as a group to achieve strategic objectives.”. Organizations need to decide which projects are the right ones to focus on. Let’s look at a few examples from our day to day life. We recommend moving this block and the preceding CSS link to the HEAD of your HTML file. Beyond prioritizing and selecting projects and programs, portfolio management is balancing the portfolio so that the right projects and programs are selected and implemented. Nothing in this definition describes the size or the precise content of a project—there are projects of every size imaginable in virtually every industry, and project managers supervise them regardless of these specifics. Difference between Project, Program & Portfolio As per PMBOK fifth edition project is a temporary endeavour with a start and end date, it provides a unique output. Programs are Ongoing, Projects End. Organizational Project Management, or OPM, ties these 3Ps – Project, Program, Portfolio – together at the organizational level and helps it move towards its vision. Project, Program and Portfolio are common day to day English words with simple meanings. Project – My New Year resolution for this year is to attain the PMP certification within next two months. At the same time, it’s important to consider a level of balance in the portfolio. Faculty Insights Each of these terms have a distinct meaning & significance and they should be used appropriately. I am a Project Management Instructor, Coach & Advisor. Portfolio Management – The Company, itself, is the largest portfolio. a design project (refrigerator design), a manufacturing project (setting up refrigerator manufacturing), a marketing project, a servicing project (training post-sales servicing personnel) etc. The projects within the program might be executed at different times by a different set of people but they will be governed by the larger shared goal of “making the new line of refrigerators successful”. why is a particular project being proposed, why is certain work being done, etc.). According to PRINCE2, a Project is defined as “A temporary organization that is created for the purpose of delivering one or more business products according to a specified Business Case”. A final difference between project and program — particularly at the program level — is the understanding that program management offers benefits that can’t be realized from managing projects individually. A portfolio can have multiple non-similar projects without having a program because portfolio management deals with two or more non-related projects. In PRINC… Though related, tasks associated with project, program, and portfolio management are by nature very different. Public Health Careers: What Can You Do With a Master’s Degree? The projects within a program share a goal. According to PMI and its PMBOK Guide, a portfolio includes, “Projects, programs, other portfolios, and operations managed as a group to achieve strategic objectives.”, Organizations need to decide which projects are the right ones to focus on. Earning a master’s degree in project management is one way to develop these skills, increase your earning potential, and gain a competitive advantage in the field. Projects, Programmes and Project Portfolios Jurie Steyn February 2015 Introduction Distinguishing between a project portfolio, a programme and a project presents a dilemma, because the terms are often confused with one another. Structure: A project is well-defined, with a Project Charter that spells out exactly what the scope and objectives are for the project. These constraints include, but are not limited to, Scope, Time, Cost, Quality, Risk, and Resources.You can also refer to Max Wideman Glossary to read some other standard definitions of Project. These project may or may not be part of a program e.g a procurement optimization project to reduce material procurement costs may not be part of any program. Project portfolio management (PPM) has become a key component in organizations as they look to enhance their ability to manage multiple projects in an efficient and effective way. Rather than manage projects individually, project portfolio management looks at all projects across all departments. Evaluations should be conducted in some regular cadence. This is done through a process of creating a manageable overview of all your past, on-going, and future projects. A project differs from a program in the sense that the latter is a bundle of related projects, managed in a coordinated manner, to attain the benefits, which is available only when the projects are managed in groups. Portfolio management concentrates on … I often get this question – what’s the difference between project, program, and portfolio – the triple P’s in PPP management. What’s important is to understand the project, its goals and objectives, and what its challenges are, and to pick, choose, and use those right parts of project management accordingly. [2020], 3 Differences Between Configuration Management vs Change Management. Portfolio refers to a group of related or non-related projects or programs. , meanwhile, coordinate between various programs in order to ensure that things stay on track and that the organization is meeting its overarching strategic initiatives. By providing us with your email, you agree to the terms of our Privacy Policy and Terms of Service. Learn more about Northeastern University graduate programs. We use these words regularly without even realizing it. Programs usually span a far greater duration than a project. Project Portfolio Management (PPM) is typically a function of the PMO team and is a formal approach to orchestrate, prioritize, and analyze the potential value from a set of projects. They must do this all while working to ensure the project meets the quality guidelines required by its customers, which is not an easy task. It was really helpful, You can also look at the following video to understand the difference. A program may be a part of a higher-level program; it certainly contains some interrelated projects, and it may contain some non-project work as well. Yes. The program manager is focused on benefits realization—rather, knowing the benefits that can be accomplished from this collection of projects and focusing on achieving them. It’s critical to look not only at programs and projects at the individual level, but also holistically to know how these align with the organization’s overarching goals. Project, Program, and Portfolio Management. Both program and portfolio management are closely related to project management, which often leads to confusion. As you can see there is a different between program and project management. Program means group of related projects as mentioned in PMBOK 6. If the projects are similar but not related, then they should be managed as part of a Portfolio. But the reality is, there are actually “Three P’s” of project management, each of which is different than (but related to) the others: projects, programs, and portfolios. Given below are some difference between a portfolio, program, and project for a better understanding of the three terms: Project and program management are about execution and delivery---doing projects right. Generally, a project is a temporary endeavor, with a finite start and end, that is focused on creating a unique product, service, or result. Portfolio Management – The Company, itself, is the largest portfolio. This can depend on the industry sector and part of the world. You will also find a brief explanation of roles of Project, Program and Portfolio Mangers in this post. We are coordinating with different governmental and non-governmental organizations. As project managers, the key parts of the job are to balance the scope of work—also known as “deliverables”—to meet the project objectives with the resources that are available within the schedule and allotted budget. (I find the PRINCE2 definition of a project a little vague hence less useful. Program Management – Each division within the company would have several running programs e.g. Since the role of program management is to ensure that projects are aligned to the business strategy, as the strategy changes, the program manager also needs to communicate with the project teams so that they are aware of the changes and what needs to be done about them. In light of this, we wanted to help clear things up and highlight the differences between project vs program vs portfolio management. This program could involve several projects e.g. Learn More: Building Your Project Management Career Path. Program – Our company has started a social program to provide good healthcare in villages. People often get confused with project vs. program vs. portfolio so I thought I would give a quick rundown of the differences. An organization may have one portfolio, which would then consist of all projects, programs, and operational work within the company. Portfolio Management A portfolio refers to a collection of projects or programs and other work that is grouped together to facilitate effective management.… The Project Management Institute (PMI) describes program management in its PMBOK Guide as: “The application of knowledge and skills to achieve program objectives and to obtain benefits and control not available by managing related program components individually.”. They are responsible for the day-to-day management that brings a project to fruition. Can we conclude that program means group of related projects & operations ? Portfolio managers, on the other hand, are managing all (or multiple) programs within an organization, ensuring that all programs are working towards fulfilling the strategic objectives of the organization. Portfolio is a collection of projects programs and operational work. You can also refer to Max Wideman Glossary to read some other standard definitions of Project. While the project manager is managing multiple tasks within a project, the program manager is coordinating between related projects within a program, in order to determine which projects are working towards the same or similar goals, and which may be dependent upon others. #mc_embed_signup{background:#fff; clear:left; font:14px Helvetica,Arial,sans-serif; } Without this understanding, there may be unnecessary confusion and miscommunication that can derail an initiative before it even begins. For companies that work on a large number of projects, it makes sense to clearly delineate between PPM and project management. By now you would have understood the meaning and finer differences between the main terms. In our example, program manager oversight creates unity between CRM project managers and sales organization management project managers. Simply put, project portfolio management (PPM) is the process of scheduling, prioritizing, and budgeting many projects It is a centralized system of managing different projects. Project Management – The Company would have several running projects at any given point in time. They are responsible for the day-to-day management that brings a project to fruition. are more concerned with strategic alignment: Understanding what individual project managers are doing and enabling effective communication between them in order to understand where projects are and in order to provide support where necessary. Thanks for the explanation! At Northeastern, faculty and students collaborate in our more than 30 federally funded research centers, tackling some of the biggest challenges in health, security, and sustainability. The line between project management and project portfolio management is often blurred because people attempt to accomplish all of the tasks we discussed under the heading of project management. The difference between Project, Portfolio and Program Management. Learn how a Master’s in Project Management from Northeastern can jumpstart your career today. A program manager manages multiple projects, and sometimes multiple programs while a project manager manages the teams responsible for fulfilling the project and achieving its deliverables.. Generally speaking, a program manager has … They are related to each other because of the shared program goal. Here is brief explanation about each of them with examples, their relationship and PMO’s (Project Management Office) role. Thanks for your inputs.1 example I think of is logistics or order fulfillment team who delivers the material or products at the project site for installation & commissioning work. Most people have a common understanding of a project. They are often tasked with asking, If you’re considering a career in project management, whether at the project, program, or portfolio level, building the skills necessary for each role is critical to your success. Learn More: What Does a Project Manager Do? Explore Northeastern’s first international campus in Canada’s high-tech hub. Project management is about applying the right tools, techniques, and processes, in a value-added way, to complete the project successfully. A temporary endeavor undertaken to create a unique product, service, or result. The program manager focuses, throughout the program, on the business benefits, starting very early at its inception by looking at what benefits can be realized and then making that happen. */. The differences you took from which source. , the key parts of the job are to balance the scope of work—also known as “deliverables”—to meet the project objectives with the resources that are available within the schedule and allotted budget. … There is considerable confusion about the application of the terms multiproject management, program, and portfolio management. Projects Programs Portfolio Definition (ISO) A project is a unique process consisting of a set of co-ordinated and controlled activities with start and finish dates, undertaken