Although they sound similar, they refer to different concepts. While many are familiar with the roles and responsibilities within classic “Project Management”, far less is known of the intricacy and complexity of the world of Program Management and Portfolio Management. Does my answer make sense? Programs. Though a project and a program are distinct, the project management tools used to manage them are very similar. While project management is about directing a single project successfully, project portfolio management is about selecting and successfully executing the right projects for the organization. Many organizations still struggle to answer this question. I have been a project manager and i have been a program manager (training) within an organization. The same principle applies: a portfolio decision is to invest or disinvest (that is, charter or cancel) a project or a program. Project management is the act of creating plans and managing resources in order to accomplish a project. The definition of “projects” are fairly uncontroversial – I tend to think of projects as “temporary endeavors undertaken to achieve a specific outcome or deliverable  that is beneficial to the sponsoring organization.”. Otherwise, people take a risk of walking into the office of business people who really understand portfolios and sounding ignorant. Project — is temporary work that produce an outcome (product) with a definable starting and stoping point (doing “new stuff”). The Portfolio Management is a combination of different assets. Project and portfolio management do require some of the same general skills, but despite their similar-sounding names, project management and portfolio management are actually quite different. Project management uses processes, methods and training, together with knowledge and skills of the project manager and team to deliver the required outputs. Project Management Institute, PMI, Project Management Professional, Project Management Professional (PMP), PMP, Program Management Professional (PgMP), PgMP, Portfolio Management Professional (PfMP), PfMP, PMI Risk Management Professional (PMI-RMP), PMI-RMP, Certified Associate in Project Management (CAPM), CAPM, PMI Scheduling Professional (PMI-SP), PMI-SP, PMI Professional in Business Analysis (PMI-PBA), PMI-PBA, PMBOK, the PMI Talent Triangle and its Logo, and the PMI REP Logo are registered marks of the Project Management Institute, Inc. The reader should also review A Concise Guide to the Difference Between Projects and Programs for more detail. In addition, sometimes project portfolios and programmes are mistakenly used interchangeably. By Fister Gale, Sarah The public school system in Tacoma, Washington, USA needed to transform its learning environment. I teach project mgt introduction and struggle with the breakout definitions of these terms. Program — is managing a segment of work like training, safety or operations that have multiple portfolios with interdependent projects being worked Project management is in charge of taking care of the project and its deliverables. Programs and projects are both in the realm of implementation. Breaking Down Project, Program, and Portfolio Management Difference Between Issue, Risk, and Change in a PMO Follow me on Twitter My Tweets Random Glossary term. On the other hand portfolio management is the practice of managing non-similar projects and programs. P3M stands for "programme, portfolio and project management". More than enough has been said about the differences between a project and a program, me I just want to know what the similarities are between the two. Projects. Facilitating the Business Model Canvas: A Few Lessons Learned (Part 1), Designing Strategic Initiatives for Results: The Two Kinds of Coherence, The Real Reason Strategy Implementation is Difficult (and the Solution to It), Grasping Essentials When You’re NOT the Expert, Competencies of Strategic Initiative Leaders, Strategy, Ambiguity, and Strong-Minded Thinking, Success Principles for Strategic Initiatives, A core problem is that “strategic alignment” is only useful in the context of the kind of strategy under consideration. Project Management. Having foundational project management education makes each step in the process more efficient, from scoping projects, communicating with stakeholders to risk planning. Does employee trust impact organizational performance? Programs and projects are both in the realm of implementation. Most every person who is planning for retirement is making some sort of active decisions on their investment, and they shift the mix of assets to correspond with risk. All strategic initiatives are programs, but not all programs are strategic initiatives. Anyone care to list them? Your definition of project is sound. 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. In addition to project management, organizations are embracing program and portfolio management to address enterprise-level needs. Here is a third example. We would like to republish this article on PM Hut, please either email us or contact us through the “Contact Us” form on the PM Hut website if you’re OK with this. A program is a group of projects that are similar or related to one another, and which are often … In addition to project management, organizations are embracing program and portfolio management to address enterprise-level needs. Why Lump Together Project Portfolio Management and Program Management? These successful organizations are skilled at portfolio management; that is, they understand how to invest and disinvest in programs and projects. Post was not sent - check your email addresses! 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. Sometimes a programme is called a project. scope and including associated qualityimplications). Contact him at GregoryDGithens@cs.com or 419.424.1164. Given below is my attempt to explain the basic differences between Projects, Programs and Portfolio. Each treats risk as uncertain events that affect the outcome and are subject to managerial control. Newtown Square, PA: Project Management Institute). Thanks, I welcome discussion from others. Program Management is the management and oversight of multiple interrelated projects. The governance processes of Program Management and Project Portfolio Management are similar; for one example, both apply roll-up reporting of the individual components for the purposes of monitoring, control, and decision making. (We respect your privacy). Sorry, your blog cannot share posts by email. However, you are likely to encounter them in fields as diverse as manufacturing, marketing and retail. Strategy as Problem Solving: An Example from a Large Technology Organization. I mentioned that this is a complex topic. Michael, Risk and reward are considered and balanced, and programmes are selected based on their alignment with organisational strategy. The middle section belongs to program management, comprising various interrelated projects, and the last section houses project management. So the buzz words are “highly related” and “more benefits”. Programs usually span a far greater duration than a project. A project is a scheduled undertaking for the purpose of creating a product or service. It is noticed and appreciated! Where do you agree and disagree? In other words, portfolios involve similar projects and programs. Project Portfolio management: Project portfolio management supersedes program management and project management within the organizational hierarchy. What is the Difference Between Project, Program and Portfolio Management? For those interested in a detailed and comprehensive education on the range and scope of what Program and Portfolio Management encompasses, a terrific conference paper from PMI still actively makes the rounds titled, Program and Portfolio Managers Analysis of Roles and Responsibilities (Blomquist, T. & Müller, R.   Paper presented at PMI® Research Conference: Innovations, London, England. In this regard, PPM and program management can be seen better as running parallel with one another rather than linearly along the organizational hierarchy. Many organizations still struggle to answer this question. Portfolio management concentrates on choosing the right projects. What is Project Management? The Agile community argues, rightly, that you normally can’t get all of these at the same time. At the other extreme is the “tight program” in which PMI advocates. This article clarifies the differences between program management, portfolio management, and program management along 8 dimensions: purpose, temporal nature, aggregation, strategic alignment, success criteria, risk, decisions, & competencies. Posted on 21 Aug 2010 by Steven Thomas. Program management addresses the management of project management. – Prof. Dr. Te Wu, the founder Project Management training firm, Program Management Improvement and Accountability Act PMIAA. The difference between a program and a portfolio is dependent on the kind o f relationship that exists between various projects which have been grouped to gether. There are different types of management like Project Management, planning Management, Program Management, portfolio Management etc. In general, program management involves much more of the big picture, strategic, corporate execution at a senior level with larger scale impact to company finances and business goal achievement. Now, project portfolio management is the collection of all projects and programs. One of the key distinguishing features about Project Portfolio Management is that it is a process that is clearly characterised by business leadership alignment. Visual artists often collect their artwork in to a portfolio. Portfolio manager measures the aggregated performance. PM skills will generally focus more on the ability to manage the individuals working on the project in question. However, there are differences when you directly compare portfolio vs program management. But the concept of program can be more confusing. (I find the PRINCE2 definition of a project a little vague hence less useful. ( Log Out /  PMP, PgMP, PfMP, PMI-ACP, PMI-RMP). Project management fundamentals (tutorial) video on project vs program(me) vs portfolio management. Scope. A project portfolio manager has a broadened view of all the organization’s projects. The main target of portfolio management is to decrease the risk of the stakeholders and maximize the profit of all stakeholders. Projects need to be strategy-driven, but do not own the strategic initiative as does a programme. With the APM re-writing the Body of Knowledge being extended to cover project, programme and portfolio management can we expect different approaches to risk management each or will the same process apply to each level in the same way. Workshop on Leading Strategic Initiatives, Eight Distinctions between Portfolio Management & Program Management, A Concise Guide to the Difference Between Projects and Programs, A Guide to the Three Types of Strategy and Business Model Scope, Strategic Planning Issues for Strategic Initiatives, A Concise Guide to the Differences between Programs and Projects | Leading Strategic Initiatives, Vice President, Director, Manager of Strategic Initiatives: Position Description Best Practices | Leading Strategic Initiatives, Director Business Transformation: Position Description & Relationship to Strategic Initiatives | Leading Strategic Initiatives, Vision into Results….Introducing Leading Strategic Initiatives | Leading Strategic Initiatives, Why Your Organization Will Perform Better With Fewer Strategic Initiatives: Six Bits Evidence | Leading Strategic Initiatives, Use the As-Is-&-To-Be Table to Clarify Strategic Initiative Vision | Leading Strategic Initiatives, Strategy-as-Story: The ABCDE Model | Leading Strategic Initiatives, Better Conversations Generate Better Strategy, Insights Are the Secret Sauce of Strategy, How a Strategic Decision Differs From a Tactical Decision, Unlearning, learning, and a culture of strategic thinking, How Mapping Can Improve Your Strategic Thinking, Complexity: Four Principles for Program Managers, Use the PAVER Framework to Assure Strategic Commitments. 0. votes. Hoping this communication solicits your permission to discussion your article in class, Tuesday September 18, 2012. Considering the differences in scale, scope, and task, the skill sets of project management and portfolio project management may be complementary, but they are not the same. 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. Change ), You are commenting using your Facebook account. Hello Greg, Rather, the project takes inputs and develops and implements a tactical plan. For companies that work on a large number of projects, it makes sense to clearly delineate between PPM and project management. Portfolio management aligns with organizational strategies by selecting the right programs or projects, prioritizing the work, and providing the needed resources. Thanks again for your questions and comments. Many PMP aspirants don’t know the differences between them. He is a recognized thought leader in designing and delivering strategic initiatives. The field of project management has significantly evolved and expanded since its modern inception during the 1950s. Related: How Program Managers Use Software to Manage Project Portfolios The Difference Between a Program Manager and a Project Manager. In daily lives across most organizations, the distinction of “high related” and “more benefits” are often blurred. For that the differences between low and high performing organizations in their program/portfolio management practices, roles and project types were assessed on the level of individual questions of the questionnaire. ... respected way to verify both your project and program management knowledge in one fell swoop. ( Log Out /  Difference between Project Management and Portfolio Management I appreciate your article and table here. The standard way to explain the difference between program and project management goes something like this: Project Managers manage projects and Program Managers manage a portfolio of projects. The Differences Between Managing Projects and Programs In many respects, the management of projects and programs appears similar. It is essentially involved with overseeing a collection of programs and projects. While researching the differences between project, program and portfolio management, I came across your article. The most successful organizations have fewer strategic programs, and these programs are staffed with the best resources. Since projects are investment and since most organizations have finite resources, it’s important to focus and pick the best investment choices. 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 … Such definitions leave much to be desired. You could think of programs as a superset of projects. What is PPM? Berrycast Premium Plan (Free for Our Bootcamp Customers), Project, Program, and Portfolio Life Cycle – Webinar, How to Best Complete Applications for PMP, PgMP, and PfMP (November 2020 Webinar), Preparing and Completing PMI Certification Applications (e.g. Portfolio management settles at the top section of the pyramid, comprising all programs and projects to be handled. Note that my focus is on strategic initiatives. Portfolio — is a subset of a program with multiple projects (2 or more) that have interdependencies Our research has shown that portfolio management is a way to bridge the gap between strategy and implementation. As you can see there is a different between program and project management. There are different types of management like Project Management, planning Management, Program Management, portfolio Management etc. People often get confused with project vs. program vs. portfolio so I thought I would give a quick rundown of the differences. My goal is to provide useful insights to strategic initiative practitioners. What is the project risk management process? Project Management focuses on a specific, singular project. Strategic initiatives are transformative and involve stakeholders that do not have training in program and project management concepts. They question of whether to invest in a project or cancel one is on that is based on strategy. Project Management, Program Management, and Portfolio Management are very important terms in project scope management. But in fact, the three terms describe three very different practices. This article provides comprehension into the contrast of the three mentioned terms. Projects and programs form portfolios. A strategic initiatives are programs (thus amenable to program management tools) but not all programs are strategic initiatives. In PRINC… Keep reading for a detailed look: Portfolio Management Portfolio refers to a group of related or non-related projects or programs. Monitoring and Control. A good portfolio is diversified (to manage risk) and composed of those assets or projects that have the best value (considering long term or short term perspective). They should never use the term portfolio management when they really are talking about projects. There is confusion between the term project management and program management. While it is true that program and project portfolio management occurs at similar scales of an enterprise, their scope often differs dramatically. 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 … While the line between project management and project portfolio management is often quite blurred, there is a clear distinction between them. Along with differences in projects and the associated application of program and portfolio management in organizations the roles and responsibilities of the respective managers differ. Five Mental Anchors that Impede Your Strategic Initiative, Beginners Guide: Competent Strategic Initiatives, Volatility, Uncertainty, Complexity, & Ambiguity (VUCA), Four Recommendations for Effective Program Governance, Six Strategic Thinking Skills: Developing the Proactiveness Habit, What’s the #Strategy? The highest order (most strategic) concept is portfolios, and portfolios are investment tools that align with the strategy. The project risk management process is well known. To be specific, the emergence of related but different fields of program management and project portfolio management has changed the … Sometimes a project is called a programme. This is a key difference between project, program, and portfolio management: scope — and it’s often where the realm of project management ends, and program management begins. How can this knowledge help you lead a strategic initiative? But there are key differences between each role. What About the Distinctions with Project Management? Fill in your details below or click an icon to log in: You are commenting using your WordPress.com account. Portfolio Leadership style – Portfolio Managers add value to the portfolio decisions. Figure 1: Diamond-E Model based alignment between strategy and portfolio project management adopted from (Yuming, Quan & Peng, 2007) Programme Management:-In the past, the term ‘programme’ has many synonyms that have been used, including multi project, portfolio of projects, macro project, and complex change (Ferns, 1991). Both project and portfolio management each focus on achieving goals in a timely and resourceful fashion. Program management is the practice of managing similar projects. Factors. Is it Possible to Have a Perfect Strategy? Related: How Program Managers Use Software to Manage Project Portfolios The Difference Between a Program Manager and a Project Manager. The main target of portfolio management is to decrease the risk of the stakeholders and maximize the profit of all stakeholders. It’s not uncommon for an overlapping use of terms when it comes to project, program and portfolio management; and they are often interchanged with the assumption that they describe similar processes. Although, the words seem similar there are some differences. Greg Githens explains four implications for leaders of strategic initiatives: meaning of strategic alignment, number of strategic … asked 9 years ago by anonymous. Change ), You are commenting using your Twitter account. Design Thinking: Five Landmarks for Strategic Initiatives, Seven Must-Do’s for Better Strategy Execution. Merys summarised the differences: Portfolios: Strategic Grouping, Focus on maximising return on investment, Balanced mix of projects and programmes, Ongoing, Higher risk. Just as there is a difference between the scopes of project management, program management, and portfolio management, there is also a difference between project management software and project portfolio management software. It appears to me that Program Management and Project Portfolio Management have more similarities than differences; thus, I grouped them together and contrasted them with classical Portfolio Management. It would be extremely helpful if they would clarify that they are talking about portfolios of projects versus any other kinds of portfolio. In the attempt to write in a concise manner, I acknowledge that I have simplified numerous complex concepts of theory and practice. Knowing these concepts and understanding their differences is essential to pass the While project managers have to look at the scope of an individual endeavor, portfolio managers look at numerous projects and piece the connection between them. I encourage you to place the term portfolio management into the search function of an online bookstore; you will get an excellent peek into the rich literature of portfolio management. Experienced professionals don’t always agree on the terms and distinctions. ( Log Out /  I think that many people in the project management community (including those who write books) are confused about portfolio management and just start making up their own definitions. Priorities are set through an appropriate value optimisation process for the organisation. While portfolios and programs focus on a higher-level view of an organization’s activities, a project is a single undertaking: a series of tasks that aims to produce a specific product, service, or benefit within a defined timeline. For example, managers of. A project is a scheduled undertaking for the purpose of creating a product or service. In our example, program manager oversight creates unity between CRM project managers and sales organization management project managers. By PMI The leader of a strategic initiative is accountable for delivering turning vision into results, and is navigating through considerable ambiguity with strategic thinking skills: Do these distinctions make sense to you? Customer Policies (Refund, Postponement, etc.). The terms product management, program management, and project management are often associated with the software industry – especially product and program management. What is the difference between projectmanagement and program management? There is often a misunderstanding about the terms Portfolio, Programme and Project Management, when it comes to programme management. Project portfolio management has a larger scope and aim than project management. A business project is a temporary task, something with a start and end date. Change ), Enter your email address A portfolio management decision is really a very simple decision: do I invest or do I disinvest? While many are familiar with the roles and responsibilities within classic “Project Management”, far less is known of the intricacy and complexity of the world of Program Management and Portfolio Management. Given below are some difference between a portfolio, program, and project for a better understanding of the three terms: Factors Projects Programs Portfolios; Monitoring and Control : Project management is in charge of taking care of the project and its deliverables. Project vs Program, plus the difference between Project and Program Managers. You question is one that many people have. project ; program; project-management; program-management; 1 Answer. Let Me Tell You a #Story, Strategy is Not Long-Range Planning, Vision, Mission, or Values, Five Ways to Involve Smart New Voices in the Strategy & Agile Innovation Conversation. Please bookmark this article with your social media. Using program governance, program manager monitors and controls the program. 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. Thanks to you, knowledge was enhanced. Mind mapping. Te Wu, the founder Project Management training firm PMO Advisory is among the few people in the world certified in Project (PMP), Program (PgMP), Portfolio (PfMP), and Risk Management … PMBOK GuideProject Management includes, among many other things, balancing the project constraints. Although, the words seem similar there are some differences. He or she needs to be able to intelligently discuss this question: Programs are Ongoing, Projects End. Most people have a common understanding of a project. Breaking Down Project, Program, and Portfolio Management Difference Between Issue, Risk, and Change in a PMO Follow me on Twitter My Tweets Random Glossary term. Project management is the act of creating plans and managing resources in order to accomplish a project. Greg Githens provides coaching, workshops, hands-on, and more. Te Wu, the founder Project Management training firm PMO Advisory is among the few people in the world certified in Project (PMP), Program (PgMP), Portfolio (PfMP), and Risk Management … ( Log Out /  So here is the short answer. Moreover, PPM is not at all tasked with the same duties as program management. The way I have explained these terms have been in the following order (relying on my organizational development background): Standards in project portfolio management and program management are still maturing. … 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. There is a difference: The Program Management's main role is to manage, from a high level, a group of related projects, while Project Portfolio Management's main role is to prioritize and select projects. A leader of a strategic initiative needs to have an expert understanding of program management and be knowledgeable in the principles and application of portfolio management. Pingback: A Concise Guide to the Differences between Programs and Projects | Leading Strategic Initiatives, Pingback: Vice President, Director, Manager of Strategic Initiatives: Position Description Best Practices | Leading Strategic Initiatives. A portfolio can have multiple non-similar projects without having a program because portfolio management deals with two or more non-related projects. There is confusion between the term project management and program management. Thank you for your A2A. What Is The Difference Between Project Management And Portfolio Management? Since projects are investment and since most organizations have finite resources, it’s important to focus and pick the best investment choices. As you can see there is a different between program and project management. In general, program management involves much more of the big picture, strategic, corporate execution at a senior level with larger scale impact to company finances and business goal achievement. What is the Difference Between Project, Program and Portfolio Management? Given below is an attempt to explain the basic differences between … Program management, on the other hand, is the act of … While the roles of the project manager and program manager vary from company to company, there are some unique aspects that characterize the two. I often get this question – what’s the difference between project, program, and portfolio – the triple P’s in PPP management. However, the primary challenge of project portfolio management is to ensure that all programs and projects are always aligned with the strategic … … by admin | May 25, 2018 | Management, Portfolio Management, Program Management, Project Management, I often get this question – what’s the difference between project, program, and portfolio – the triple P’s in PPP management.