project vs program vs portfolio

The biggest difference when it comes to program management vs project management is the number of projects. scope and including associated qualityimplications). Different divisions like Refrigerator Division, Washing Machine Division and AC Division would be sub-portfolios. Program Management involves coordination among the constituent projects so as to obtain the benefits that might not be obtained if they are managed individually. Different divisions like Commercial Division and Residential Division would be sub-portfolios. Program manager vs. project manager: What’s the difference? a Residential Township at location X. See the Price/User for the top PPM Software... plus the most important considerations and questions to ask. Additionally, program managers tend to direct similar projects, whereas portfolio managers may be managing entirely unrelated projects. Your email address will not be published. By now you would have understood the meaning and finer differences between the main terms. Required fields are marked *. We use these words regularly without even realizing it. Portfolios are aligned to the business and industrial domain of an organization. Furthermore, project management is directed by project managers, but much of the tasks involved are carried about by your regular employees. How are Project and Program Managers different? Portfolio-Program-Project . Organizations have long misunderstood the difference between projects and programs--particularly in relation to the strategic significance each plays to the enterprise. In order to make sure that the project is on schedule, project managers need to check in on the progress of each task as the project team works on them. Project management is usually defined as the management of a specific set of goals and objectives to occur within a defined time period. Project vs Program vs Portfolio management: Difference between project and program and portfolio. A program tends to have greater levels of uncertainty. It requires completely different techniques and perspectives. We often use these words interchangeably and, while they share some similarities, they have distinct meanings with key differences. But, these (program) operations are not managed by program team. Program Manager Role Confusion “PM” is a confusing abbreviation. The project risk management process is well known. A portfolio can have multiple non-similar projects without having a program because portfolio management deals with two or more non-related projects. Thanks for the explanation! Project program management . What is Project Management? It can refer to (at least) three distinct roles: the Product Manager, the Project Manager, and the Program Manager. But there are stark differences that separate the three. If you need help determining which features you need from PMO software, make sure to check out our project management software requirements template. PLUS… Access to our online selection platform for free. Additionally, program and portfolio management are more strategic processes. Welcome to my eponymous blog! Perhaps someone is underperforming when it comes to project A, but it’s only because they’re completely tied up in project B. Both involve the careful coordination of projects and programs that meet organizational strategies, rather than individual tactics. PMP Boot Camp Online: Which Is The Best Training Course? Whatever your needs are when it comes to managing your company’s projects, there’s a software solution available. Though a project and a program are distinct, the project management tools used to manage them are very similar. Let’s start at the beginning. The program manager manages a group of interconnected projects, and this group is called a program. Just notice the major tasks written in the table above. There are different types of management like Project Management, planning Management, Program Management, portfolio Management etc. We are coordinating with different governmental and non-governmental organizations. By definition, project management is the application of knowledge, skills, tools and techniques to project activities, to meet project requirements. These are managed in a coordinated manner so that benefits can be obtained. From the PMBOK:. Do you use them differently? What exactly are the differences when it comes to program management vs project management vs portfolio management? Sounds simple, right? PPM software lets portfolio managers determine projects by priority in addition to making notes on strategic progress. Program Manager) Project managers are more tactical, seeking to complete tasks and deliverables on time and within budget. Delivery Manager found the following resources, articles, links, and information helpful. The program management function Program management is very similar to project management, but instead of one project, this discipline involves managing several ongoing projects at once. People often get confused with project vs. program vs. portfolio so I thought I would give a quick rundown of the differences. Project and program. Gantt charts are a necessity, as they allow program managers a clear view into resource usage. The differences you took from which source. The following are key differences between the two: Time Projects have a start and end date. Thanks again. Project portfolio is a strategic collection of all projects and programs within an organization. In light of this, we wanted to help clear things up and highlight the differences between project vs program vs portfolio management. These terms are often confused, used interchangeably, and given entirely different meanings across industries and organizations. (Project Manager vs. Nice article you shared thanks for the information you convey through the article. In the past, a program manager has likely already managed several very large, complex or risky projects. While program managers often set schedules and budgets for the entire program, they do not manage the day-to-day tactical work for an individual project. Project vs Program posted by John Spacey, June 22, 2017. In the diagram below (Diagram 1.0), the organization groups its initiatives, investments, projects, and programs through portfolios or lines of business aligning to the organization's benefits. Project planning is quite possibly the most important step in the project management process, as it defines the budget, timelines and objectives of the project. In this post, you will find a couple of examples to help you understand the terminology. Project, program and portfolio governance, the basis of successful delivery. However,this may be applicable to standalone project also where similar operational work is needed. The PMBOK definition nicely encapsulates this: Successful projects deliver on time, to budget and to specification (i.e. Save my name, email, and website in this browser for the next time I comment. Strategic business objectives could include maximization of profits, building brand & reputation, reducing overall costs, and optimization of resource usage. Project Management. Portfolio adjustments may need to made based on strategic changes, or feedback from program and project implementation. Project vs. Launch a new line of refrigerators. Both project funding and program funding exist, but there are some key differences. The projects and programs within a portfolio are not related to each other. Project Management – The Company would have several running projects at any given point in time. Whereas a program is a collection of related projects, a project can exist without any program. Let’s look at a few examples from our day to day life. Program and portfolio management are carried out by more senior roles as previously discussed, and may even be assigned to a project management office (PMO). Similar to how program management provides a higher level overview of project management, portfolio management offers an even higher level overview of both projects and programs. The role of a manager is related to the tasks expected from her/him. It was really helpful, Portfolio: A portfolio is a collection of projects, programs, subsidiary portfolios, and operations managed as a group to achieve strategic objectives. Such constraints include, among other things, scope, resources, time, risk, cost, and quality. Project Managers need to focus on the deliverables of their project which must be achieved within certain cost and time constraints. Using a gross simplification, the main difference is size.. You need to be aware of the definitions for project, program, and portfolio. What is your take on these terms? Collection of Project, Programs and Operations, Controlling inter-dependencies among related projects. A portfolio can be envisaged as a set of assets invested or exploited at a given point in time. Both project funding and program funding exist, but there are some key differences. However, in the flowchart in the same chapter , it is shown that operations also part of program. This means that project management has a defined end, making it very focused on deliverables and less so on business tactics. The portfolio manager is a higher position than the program manager, and the program manager may report to the portfolio manager. A program, on the other hand, is essentially a group of related or interrelated projects, subprograms, and/or program activities. The projects within a program share a goal. Project management software allows companies to become competitive in their environments, optimizing time and effort and keeping the project on track by using its main features of planning, managing time, resources and people & controlling. So what exactly is the difference between project, program and portfolio management? If it exists, the organization’s Portfolio Office is responsible for such intelligence, which enables those involved in projects and programmes to take a corporate approach. A portfolio of projects will often contain numerous projects that have no relation whatsoever, besides the purpose of serving the overall organization strategy and direction. The portfolio and sub-portfolios will have running programs, projects and operations. In contrast, PPfM focuses on doing the right projects at the right time by selecting and managing projects as a portfolio of investments. Program vs. Project Management – The Company would have several running projects at any given point in time. PMBOK 2013 pg. Projects are often supported by operational teams. All original content is copyrighted by SelectHub and any copying or reproduction (without references to SelectHub) is strictly prohibited. Program – Our company has started a social program to provide good healthcare in villages. A program is a collection of projects that need to be managed and coordinated together. Program Management may also involve completing some work that is outside the scope of individual projects. The Product vs. Project vs. Do you use project management, program management, portfolio management or possibly all three? Project management, strictly speaking, refers to one project. Project management involves the planning, coordination and oversight of a specific project from beginning to end. Program management is about grouping two or more projects that have similar objectives and will get more benefits if managed together, instead of alone. People searching for Project Manager vs. A portfolio manager might manage a software implementation program in addition to their content marketing program. Program vs. A program is a long running initiative with broad strategic goals. Thanks for it was very clearly described – very useful for me. When you see something that needs doing, such as a software bug fix or creating a piece of content, the task is completed, and then it’s over. © 2020 SelectHub. These processes apply to the different levels of an organisation project, programme and portfolio, it is just the ways of application that are different. Program: (also written as programme) portfolio comprised of multiple projects that are managed and coordinated as one unit with the objective of achieving outcomes and benefits for the organization. Related projects, subsidiary programs, and program activities that are managed in a coordinated manner to obtain benefits not available from managing them individually. The formal definition of a project portfolio is “a collection ‘project components’ (e.g. The job focus of the project manager is both narrower and deeper than that of the program manager. A project is a managed initiative of fixed duration, budget and scope. [2020], 3 Differences Between Configuration Management vs Change Management. In some cases, the portfolio could be the entirety of the organization’s projects. Simply put, a project is an enclosed task with a finite duration, and a program is a collection of projects that contribute to a long-term goal. Portfolio Management focuses on a long term value of stakeholders – especially of the investing company as compared to the Program … Project and program management are about execution and delivery---doing projects right. PMBOK 2013 pg. Get our Requirements Template for PPM Software. Many companies use a Project Management Office to handle all activities related to PPM.The PMO is the central hub for all projects in the business, driving PPM on a largely strategic level. Sometimes a project is called a programme. The portfolio and sub-portfolios will have running programs, projects and operations. Companies with this approach tend to view a program manager as a more technically-focused counterpart of the product manager, who is responsible for guiding the creation of the actual code that will form the solution. While these two programs may not have much overlap in terms of resources, it’s still important to consider them together when planning for the future of the business. At the European Congress in Madrid in April 2006, PMI launched two new standards: Project Portfolio Management and Program Management. I have explained the importance of these terms from an Organizational Management perspective. A temporary endeavor undertaken to create a unique product, service, or result. Sometimes a project is called a programme. Portfolio manager High-level responsibility: Portfolio managers are responsible for the success of a group of programs that may or may not be related to one another. It’s also important to note that a portfolio manager could manage a program in addition to a project or perhaps even multiple portfolios. Project, Program and Portfolio are common day to day English words with simple meanings. The other major component of project management is monitoring the completion of individual tasks while the project is underway. Project vs Program posted by John Spacey, June 22, 2017. The governance and organisational structure put in place for projects, programs and portfolios is vital to be able to deliver on time, on cost, with the desired quality, but more importantly to deliver to stakeholder expectations. This program could involve several projects e.g. Thank You, For example, you’d want to plan a project or a program with a Gantt chart. Here, the distinction is made between product manager vs. program manager, rather than project manager vs. program manager. Many people within the same company use them differently. It’s only when you consider multiple projects in relation to each other that you’re able to uncover these types of insight. Each project in a program creates a unique product, service or a result. Agile teams normally flex scope. 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. The terms “project,” “program” and “portfolio” are deployed day-to-day in business language. An Introduction to Project, Program, and Portfolio Management LEARNING OBJECTIVES After reading this chapter, you will be able to: Understand the growing need for better project, program, and portfolio management Explain what a project is, provide examples of projects, list various attributes of projects, and describe project constraints They’re also often conflated with other areas of responsibility within a company, such as project … If the projects are similar but not related, then they should be managed as part of a Portfolio. However, there are differences when you directly compare portfolio vs program management. The main target of portfolio management is to decrease the risk of the stakeholders and maximize the profit of all stakeholders. You use project management skills to manage all of them, but as you can imagine, managing one project is simpler than managing one program, which in turn is simpler than managing one portfolio. While they sound similar, the difference between project, program, and portfolio management is significant in purpose, scope, and benefit. 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 Agile community argues, rightly, that you normally can’t get all of these at the same time. Hi, My name is Praveen Malik. (I find the PRINCE2 definition of a project a little vague hence less useful. Project vs. With initiate the project, identify the risks, asses the risks, plan risk reduction measures, implement the responses. Therefore, the program manager is responsible for sorting out when each project can use a resource and when each employee should be working on which project, based on each project’s plan. Projects can vary widely in terms of duration and budget. But let’s get down into some specifics: Project management is the more tactical of the three. construction of row houses, construction of a multi-storied residential building, construction of a club house, landscaping project, marketing project etc. Optimization of organizational cost, resources etc. Note: Related projects may or may not be similar. PMBOK GuideProject Management includes, among many other things, balancing the project constraints. Many companies use a Project Management Office to handle all activities related to PPM.The PMO is the central hub for all projects in the business, driving PPM on a largely strategic level. Project portfolio management helps plan for future projects by giving managers better insights into where the smartest investments can be made. These aspects help create a plan that the project team members can easily follow, as they know exactly what they have to do to complete a task, as well as what they’ll work on afterward. Similarity may come from deploying same/similar technology, using shared resources, working for the same client etc. Thank you for your A2A. Organizational benefits like reduction in costs, increase in profits, and a good return on investments. Project – My New Year resolution for this year is to attain the PMP certification within next two months. This approach takes projects out of their silos and avoids the pitfalls associated with them. The distinctions people have offered in terms of Projects, Programs and Portflios are correct, so I’ll focus on another aspect of how I read the difference in priorities and operation between these three things. However, there are differences when you directly compare portfolio vs program management. A portfolioorganizes programs, projects, sub-portfolios, sub-programs, and operations to facilitate business benefits (i.e., maximize profitability). But because program managers look at the entire collection of projects (known as the program), they typically need more experience than a project manager. Portfolio Management. Program Management – Each division within the company would have several running programs e.g. Portfolio is a collection of projects programs and operational work. Related: How Program Managers Use Software to Manage Project Portfolios The Difference Between a Program Manager and a Project Manager. Yes. 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 township successful & livable”. This fulfils a long-felt need by project professionals to expand their influence, vision and visibilit… Portfolio Level A portfolio is all the projects for an … Differences in impact? And, a portfolio is a collection of projects and programs that are managed as a group to achieve strategic goals and a business value. The Portfolio Management is a combination of different assets. For one, PPM involves more strategy and is more goal-driven than program management. A portfolio can consist of multiple programs or multiple projects without having a single program. It took me a while to get here but I am glad I found your site. Pricing, Ratings, and Reviews for each Vendor. The difference between program management and PPM is a little harder to discern, but there are distinct differences between these two practices as well. Additional distinctions between program and project management are shown in Table 1. Sometimes a programme is called a project. Cecily Macdougall. To avoid resources, conflict is the major task to be done by PMO anywhere. A project is distinct and is for specified duration. Sometimes a programme is called a project. There is an upper layer called portfolios. There is often a misunderstanding about the terms Portfolio, Programme and Project Management, when it comes to programme management. 553: Program - A group of related projects, subprograms and program activities managed in a coordinated way to obtain benefits not available from managing them individually. You can also refer to Max Wideman Glossary to read some other standard definitions of Program. Sort of. Your email address will not be published. I have written this post to define and differentiate between Project, Program and Portfolio management. Looking at this scenario from strictly a project management lens wouldn’t have uncovered this. Structure: A project is well-defined, with a Project Charter that spells out exactly what the scope and objectives are for the project. softwaresuggest. On the other extreme, a program is everlasting and executed in the business to continuously obtain the results of the entity. Overseen by a program manager as opposed to a project manager, program management focuses on how a group of projects affects the organization’s strategic goals and objectives. Project Portfolio Management: Portfolio management is the key to achieve objective cross-functional organization. Portfolio Level A portfolio is all the projects for an … Project: A project is a temporary endeavor undertaken to create a unique product, service, or result.. How are Project and Program Managers different? There are many students who misconstrue project for the program, so here, in this article, we will explain the difference between project and program. This is excellent explanation!thanks for sharing. Goals or go-ahead for a new project comes from portfolio decision. NASA.gov brings you the latest images, videos and news from America's space agency. We’ve discussed this a little already, mentioning that program management provides a higher overview than project management and the same for portfolio management over program management. I am a Project Management Instructor, Coach & Advisor. Every business, from startups to fortune 500 corporations, needs to implement some form of project management. 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. This paper explains the PMI concepts and expands on them to show how they can be combined in order to provide a further level of effectiveness and control. Other aspects of project planning include defining the steps (commonly referred to as tasks) needed in order to finish the project, and identifying what resources will be required. Portfolio Management – The Company, itself, is the largest portfolio. You will also find a brief explanation of roles of Project, Program and Portfolio Mangers in this post. 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. Each sub-portfolio would be headed by a Division Head like a Vice President. Each of these terms have a distinct meaning & significance and they should be used appropriately. This portfolio would have one program/project for gas, other for water, other for electricity. Project portfolio management (PPM), also known simply as portfolio management, involves managing a company’s proposals, projects and programs to accomplish broader business initiatives. It’s the discipline through which every project and task gets accomplished. A project is a temporary endeavor done to create a unique service, result or product. Projects vs. Programs vs. Portfolio Managers. Portfolios - Clarity PPM QRC theBasiX A Quick Reference Card to help with the definition and differences between Projects, Programs and Portfolios in Clarity PPM. Various trademarks held by their respective owners. It will help decide if to bid on a project or put extra resources in any project or reduce resources to optimize them on a different project. The program, … Program means group of related projects as mentioned in PMBOK 6. Or put another way you can fix two of the three but one of them must flex. Now you’re probably wondering what the difference is between a program manager and a project manager. Each sits on a different tier of a hierarchy. Portfolio manager simply denotes the manager of all the projects of a business organization or a large segment of a large business organization. Let us know with a comment below! The others are program management and portfolio management. The provided information helped me a lot to clear my concepts on the mentioned terms. These constraints include, but are not limited to, Scope, Time, Cost, Quality, Risk, and Resources. 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”. Outcome (product, service or result) of one project may be used by the other projects within the same program. Within the Project Management Office there are two different levels of management, project and portfolio. Whereas a program is a collection of related projects, a project can exist without any program. Program vs. A project is a managed initiative of fixed duration, budget and scope. 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. A project is a temporary endeavor done to create a unique service, result or product. Also like program management, project portfolio management provides insights into big picture budget and resource allocation. This article is intended to clarify the main differences and to distinguish the unique aspects of project portfolios, programmes, and projects. Below is a simple diagram showing the relationships between each word. You can also refer to Max Wideman Glossary to read some other standard definitions of Portfolio. Project Managers need to focus on the deliverables of their project which must be achieved within certain cost and time constraints. (Project Manager vs. Some of the most useful features include real-time collaboration, document management, finance management and reporting/forecasting. 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. 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”. Jump-start your selection project with a free, pre-built, customizable PPM Software requirements template. How do you use them in your organization? This category of software is one of the best tools for managing every level of project management. October 4, 2019. ; Program Managers must be comfortable in being less hands-on and they need to have a vision of the benefits the program will achieve. Such benefits cannot be obtained at an individua… All rights reserved. Any organization has … People often get confused with project vs. program vs. portfolio so I thought I would give a quick rundown of the differences. Project portfolio management (PPfM) is fundamentally different from project and program management. If all the projects within the program are not successful, the final goal of a program is either not met or partially met. You can also look at the following video to understand the difference. Programs may include some operational work to support the projects under the program. In PRINC… Program managers are strategic, looking at the larger picture and implementing a strategy to achieve objectives with clear advantages for the company, like growth and results. A program is a long running initiative with broad strategic goals. projects, programs and other work) that are grouped together to facilitate the effective management of that work to meet strategic business objectives.” Project vs. Portfolio Management I mentioned in the last post the shift from project management to program management as one of the many important shifts in business-IT maturity that typically take place around the middle of Level 2 (in a simplified 3-level model). Think about the fact that you probably already have a lot of employees spread across several different 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. While they’re different projects, they may use similar resources and can benefit from being managed by the same person. Project portfolio managers need to worry about the budget and risk of multiple programs, along with future projects and overall business goals. In addition, identifying resources ensures that the team always has what they need, when they need it. For instance, an IT program manager might manage an ERP implementation and a BI implementation. Usually, there is confusion around the meaning of these term. The program can have a group of projects or programs under them aligned to the respective portfolio or s… This paper examines the critical differences in--and advantages of--implementing and managing projects and programs. The following are key differences between the two: Time Projects have a start and end date. These roles all have different histories and slightly different responsibilities. Project Management vs Program Management vs Portfolio Management 11:11 By Rufina Scott 0 Comment These are very important topics from a PMP exam point of view and you are going to see some questions on these topics in your exam; therefore, make sure you understand these topics well. Portfolio is an organizational strategy/thinking to achieve strategic goals. Table 1: Program Management vs. Project Management Delivering the "Whole Product" To explore further, let's consider the concept of the "whole product". Such definitions leave much to be desired. Projects, programs, subsidiary portfolios, and operations managed as a group to achieve strategic objectives. These project may or may not be part of a program e.g an IT project to implement a Customer Relationship Management (CRM) software may not be part of any program. A project is focused on creating a unique product, service, or result. Portfolio Management I mentioned in the last post the shift from project management to program management as one of the many important shifts in business-IT maturity that typically take place around the middle of Level 2 (in a simplified 3-level model). Such constraints include, among other things, scope, resources, time, risk, cost, and quality. Portfolio – I have an investment portfolio of stocks and mutual funds. 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. Program management involves multiple projects, as mentioned earlier. In addition, sometimes project portfolio and programme are mistakenly used interchangeably. There is an upper layer called portfolios. ProjectManager.com has an award-winning Gantt chart that lets you establish phases, milestones and dependencies. Projects are, essentially, just basic solutions to basic issues; they fill in the gaps that need to be filled. Portfolio management deal with the collection of assets but the Program Management deals with the collection of projects which are combined together to make a program. Program Management vs Project Management: 5 Critical Differences posted by John Spacey, February 24, 2013. This program could involve several projects e.g. 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. They share some of the same responsibilities, such as daily management of life cycles, risks and budget. Both program and portfolio management are closely related to project management, which often leads to confusion. Program managers also do not directly manage the staff working to complete a project as a project manager would. Additionally, PPM processes help you find gaps in the current project portfolio or identify the current projects that may become a barrier to completing a future one. You can also refer to Max Wideman Glossary to read some other standard definitions of Project. ; Program Managers must be comfortable in being less hands-on and they need to have a vision of the benefits the program will achieve. Project Management includes, among many other things, balancing the project constraints. These outcomes collectively contribute towards the shared program goal. In addition, sometimes project portfolios and programmes are mistakenly used interchangeably. There is a difference between Project, Program and Portfolio but many people use these terms interchangeably in day to day conversations. Project portfolio management (PPM) is the management of all projects in an organization from a high-level perspective. First up, let’s define the concept that you’re probably the most familiar with. Because of this, they’re both ongoing processes with no definitive end. According to PMI, project management is “a temporary endeavor undertaken to create a unique product, service or result.” Project portfolio management includes a lot of activities, including the balance of project constraints. But there’s actually a little more to these two than meets the eye. Program managers are strategic, looking at the larger picture and implementing a strategy to achieve objectives with clear advantages for the company, like growth and results. Definitions of project, program and portfolio. A program can be described as a cluster of related program activities, projects, and subprograms. Program Manager) Project managers are more tactical, seeking to complete tasks and deliverables on time and within budget. It will enable me to meet my life objectives. Most people have a common understanding of a project. Program Management – Each division within the company would have several running programs e.g. A project deals with specific deliverables, whereas a program is concerned with the … Each standard is self-contained and provides only limited details on the relationship between the two domains. Many project management software vendors offer all-in-one solutions that allow businesses to manage everything from the most trivial task to company budgets and reports.

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