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. The Differences Between Managing Projects and Programs In many respects, the management of projects and programs appears similar. Programs are Ongoing, Projects End. There is often a misunderstanding about the terms Portfolio, Programme and Project Management, when it comes to programme 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. Program Management is the management and oversight of multiple interrelated projects. Praxis trims the fat - compiling the necessary … The Portfolio Management is a combination of different assets. Implications for Leaders of Strategic Initiatives. 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 … Anyone care to list them? This chapter introduces projects and project management, describes the differences between project, program, and portfolio management, discusses the role of the project, program, and portfolio manager, and Post was not sent - check your email addresses! Many organizations still struggle to answer this question. 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. Merys summarised the differences: Portfolios: Strategic Grouping, Focus on maximising return on investment, Balanced mix of projects and programmes, Ongoing, Higher risk. However, the primary challenge of project portfolio management is to ensure that all programs and projects are always aligned with the strategic … Knowing these concepts and understanding their differences is essential to pass the The field of project management has significantly evolved and expanded since its modern inception during the 1950s. Projects. scope and including associated qualityimplications). 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. In this regard, PPM and program management can be seen better as running parallel with one another rather than linearly along the organizational hierarchy. The way I have explained these terms have been in the following order (relying on my organizational development background): Strategy as Problem Solving: An Example from a Large Technology Organization. Scope. A program is a group of projects that are similar or related to one another, and which are often … For companies that work on a large number of projects, it makes sense to clearly delineate between PPM and project management. ( Log Out /  Project — is temporary work that produce an outcome (product) with a definable starting and stoping point (doing “new stuff”). 0. votes. Or put another way you can fix two of the three but one of them must flex. project ; program; project-management; program-management; 1 Answer. A project is a scheduled undertaking for the purpose of creating a product or service. Strategic initiatives are transformative and involve stakeholders that do not have training in program and project management concepts. These successful organizations are skilled at portfolio management; that is, they understand how to invest and disinvest in programs and projects. A second example of portfolio management is common in firms who are involved in new product development: they make sure their mix of new products has some line extensions and also some breakthroughs. Contact him at [email protected] or 419.424.1164. 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. Finally a question that is about the similarities, and not the differences between a project and a program. Newtown Square, PA: Project Management Institute). 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. Project portfolio management helps plan for future projects by giving managers better insights into where the smartest investments can be made. The same principle applies: a portfolio decision is to invest or disinvest (that is, charter or cancel) a project or a program. A business project is a temporary task, something with a start and end date. The PMBOK definition nicely encapsulates this: Successful projects deliver on time, to budget and to specification (i.e. 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. Mind mapping. 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. A project can be a part of a program but a program cannot be a part of a project. Thanks again for your questions and comments. ( Log Out /  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. Portfolio management aligns with organizational strategies by selecting the right programs or projects, prioritizing the work, and providing the needed resources. Portfolio manager measures the aggregated performance. Program management is the practice of managing similar projects. 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. Although they sound similar, they refer to different concepts. It is essentially involved with overseeing a collection of programs and projects. Portfolios. This is also a form of risk management. Difference between Project Management and Portfolio Management ProjectManager.com has an award-winning Gantt chart that lets you establish phases, milestones and dependencies. 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. … Newtown Square, PA: Project Management Institute). between various projects which have been grouped to gether. In our example, program manager oversight creates unity between CRM project managers and sales organization management project managers. Many organizations still struggle to answer this question. In addition to project management, organizations are embracing program and portfolio management to address enterprise-level needs. 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. Project vs Program, plus the difference between Project and Program Managers. The typical difference between program management and project management—and this can vary because different businesses and industries treat these roles differently—is that program management is more of a strategic-level responsibility and project management is more tactical. Monitoring and Control. On the other hand portfolio management is the practice of managing non-similar projects and programs. All strategic initiatives are programs, but not all programs are strategic initiatives. Portfolio management ensures that an organization can leverage its project selection and execution success. Here are two real world examples: First, an individual has an investment portfolio with the strategy of reaching retirement with a suitable set of assets (adjusted for risk). Although, the words seem similar there are some differences. 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). “What are the differences between portfolio management and program management?”. He or she needs to be able to intelligently discuss this question: Even though both parties are highly concerned with the successful implementation of projects, a project manager is focused on the success of one single project while the project portfolio manager concentrates on the overall success of all … 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. The terms “project,” “program” and “portfolio” are deployed day-to-day in business language. 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 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. Projects need to be strategy-driven, but do not own the strategic initiative as does a programme. Both project and portfolio management each focus on achieving goals in a timely and resourceful fashion. So here is the short answer. Portfolio management concentrates on choosing the right projects. PM Network. In the attempt to write in a concise manner, I acknowledge that I have simplified numerous complex concepts of theory and practice. As you can see there is a different between program and project management. Now, project portfolio management is the collection of all projects and programs. In daily lives across most organizations, the distinction of “high related” and “more benefits” are often blurred. Given below is my attempt to explain the basic differences between Projects, Programs and Portfolio. 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 … 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. What is Project Management? It would be extremely helpful if they would clarify that they are talking about portfolios of projects versus any other kinds of portfolio. While it is true that program and project portfolio management occurs at similar scales of an enterprise, their scope often differs dramatically. Q1: How do project type and organizational complexity determine the use of project portfolio and program management in organizations? You also might want to see a similar article I wrote on this blog on “A Concise Guide to the Differences between Projects and Programs.”. This is probably the most comprehensive article distinguishing between portfolio and program management. Of course, in some companies, the Program Manager assumes the role of the Project Portfolio Manager, and thus the confusion. The Project Manager is part of the team. Programme Leadership style – The Programme Manager is the leader with the vision. My goal is to provide useful insights to strategic initiative practitioners. Portfolio management concentrates on choosing the right projects. The difference between Project, Portfolio and Program Management. Pingback: Director Business Transformation: Position Description & Relationship to Strategic Initiatives | Leading Strategic Initiatives, Pingback: Vision into Results….Introducing Leading Strategic Initiatives | Leading Strategic Initiatives, Pingback: Why Your Organization Will Perform Better With Fewer Strategic Initiatives: Six Bits Evidence | Leading Strategic Initiatives, Pingback: Use the As-Is-&-To-Be Table to Clarify Strategic Initiative Vision | Leading Strategic Initiatives, Pingback: Strategy-as-Story: The ABCDE Model | Leading Strategic Initiatives, Hello Greg Within the project portfolio or program, managers make goal-oriented decisions that are consistent with an intended strategic outcome. So here is the short answer. Project Portfolio management: Project portfolio management supersedes program management and project management within the organizational hierarchy. But there are key differences between each role. They alter the contents of the portfolio so that they can convince as sponsor that their work has merit. There is confusion between the term project management and program management. Portfolio refers to a group of related or non-related projects or programs. Note that my focus is on strategic initiatives. Project management fundamentals (tutorial) video on project vs program(me) vs portfolio management. Using program governance, program manager monitors and controls the program. Although, the words seem similar there are some differences. Project portfolio management has a larger scope and aim than project 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. Factors. Your definition of project is sound. 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. Mind mapping. A project is a scheduled undertaking for the purpose of creating a product or service. In PRINC… The most successful organizations have fewer strategic programs, and these programs are staffed with the best resources. Sorry, your blog cannot share posts by email. At the other extreme is the “tight program” in which PMI advocates. What is the difference between projectmanagement and program management? It helps you set the project management processes and measure the project results; The Difference between Portfolio Management and Program Management. There are different types of management like Project Management, planning Management, Program Management, portfolio Management etc. Change ), You are commenting using your Google account. Portfolio Management focuses on the evaluation, scoping, prioritization, capacity planning, financial management and reporting of its affiliated projects/programs. ( Log Out /  While the line between project management and project portfolio management is often quite blurred, there is a clear distinction between them. He or she assists in relationship and conflict management. They question of whether to invest in a project or cancel one is on that is based on strategy. Where do you agree and disagree? Project Management focuses on a specific, singular project. Do you agree? Does employee trust impact organizational performance? People often get confused with project vs. program vs. portfolio so I thought I would give a quick rundown of the differences. Project management is the act of creating plans and managing resources in order to accomplish a project. 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. A portfolio management decision is really a very simple decision: do I invest or do I disinvest? But the concept of program can be more confusing. What is the difference between projectmanagement and program management? 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. Many PMP aspirants don’t know the differences between them. Portfolio management concentrates on choosing the right projects. Greg Githens explains four implications for leaders of strategic initiatives: meaning of strategic alignment, number of strategic … Difference between programme, project, portfolio and product management. Greg Githens provides coaching, workshops, hands-on, and more. Agile teams normally flex scope. ... respected way to verify both your project and program management knowledge in one fell swoop. I am a student at Keller Graduate School of Management, Devry University; reading Business Administration, with a concentration in Project Management. 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. You could think of programs as a superset of projects. Is it Possible to Have a Perfect Strategy? Programs. In addition to project management, organizations are embracing program and portfolio management to address enterprise-level needs. I appreciate your article and table here. Operational Excellence or Strategic Excellence? Priorities are set through an appropriate value optimisation process for the organisation. Keep reading for a detailed look: Portfolio Management While the roles of the project manager and program manager vary from company to company, there are some unique aspects that characterize the two. By Fister Gale, Sarah The public school system in Tacoma, Washington, USA needed to transform its learning environment. I have been a project manager and i have been a program manager (training) within an organization. Portfolio management settles at the top section of the pyramid, comprising all programs and projects to be handled. What is the project risk management process? The highest order (most strategic) concept is portfolios, and portfolios are investment tools that align with the strategy. For the ones who know, its obvious, but for those who dont, a little help is good. I often get this question – what’s the difference between project, program, and portfolio – the triple P’s in PPP management. Fill in your details below or click an icon to log in: You are commenting using your WordPress.com account. 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. PM skills will generally focus more on the ability to manage the individuals working on the project in question. Greg Githens is the author of How to Think Strategically (2019). Project Management, Program Management, and Portfolio Management are very important terms in project scope management. Sometimes a programme is called a project. There is confusion between the term project management and program management. 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. The project risk management process is well known. A portfolio can consist of multiple programs or multiple projects without having a single program. Thank you for your A2A. Visual artists often collect their artwork in to a portfolio. The following table shows differences along eight use dimensions. Our research has shown that portfolio management is a way to bridge the gap between strategy and implementation. “A project management degree is the way to learn the technical, professional and strategic skills necessary to successfully manage a wide variety of projects. 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 difference between a program and a portfolio is dependent on the kind o f relationship that exists . It is noticed and appreciated! 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. One complexity is that some practitioners use the term Portfolio Management to refer to both “Project Portfolio Management,” as well as what I call “classic Portfolio Management.”. asked 9 years ago by anonymous. In addition, sometimes project portfolios and programmes are mistakenly used interchangeably. Program — is managing a segment of work like training, safety or operations that have multiple portfolios with interdependent projects being worked (We respect your privacy). Since projects are investment and since most organizations have finite resources, it’s important to focus and pick the best investment choices. Design Thinking: Five Landmarks for Strategic Initiatives, Seven Must-Do’s for Better Strategy Execution. ( Log Out /  – Prof. Dr. Te Wu, the founder Project Management training firm, Program Management Improvement and Accountability Act PMIAA. Moreover, PPM is not at all tasked with the same duties as program management. 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.”. Related: How Program Managers Use Software to Manage Project Portfolios The Difference Between a Program Manager and a Project Manager. 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 … This chapter introduces projects and project management, describes the differences between project, program, and portfolio management, discusses the role of the project, program, and portfolio manager, and Both are selected via the portfolio management processes on the basis that they support or enable one or more of the organization's key strategic initiatives. Programs and projects are both in the realm of implementation. He is a recognized thought leader in designing and delivering 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. 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. The Agile community argues, rightly, that you normally can’t get all of these at the same time. Project management uses processes, methods and training, together with knowledge and skills of the project manager and team to deliver the required outputs. Here is a third example. A project portfolio manager has a broadened view of all the organization’s projects. They should never use the term portfolio management when they really are talking about projects. Thanks to you, knowledge was enhanced. (I find the PRINCE2 definition of a project a little vague hence less useful. Related: How Program Managers Use Software to Manage Project Portfolios The Difference Between a Program Manager and a Project Manager. The middle section belongs to program management, comprising various interrelated projects, and the last section houses project management. Project management is the act of creating plans and managing resources in order to accomplish a project. 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. While the roles of the project manager and program manager vary from company to company, there are some unique aspects that characterize the two. 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 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. Michael, PMBOK GuideProject Management includes, among many other things, balancing the project constraints. Each treats risk as uncertain events that affect the outcome and are subject to managerial control. One of the key distinguishing features about Project Portfolio Management is that it is a process that is clearly characterised by business leadership alignment. 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. Article PMO, Strategy, Portfolio Management, Program Management, Change Management 1 January 2019 . The reader should also review A Concise Guide to the Difference Between Projects and Programs for more detail. Change ), You are commenting using your Facebook account. What is the Difference Between Project, Program and Portfolio Management? Regardless of the situation, if you are interested in the Program Management Professional certification or PgMP®, make sure the program you describe in the application as TIGHT as possible. The main target of portfolio management is to decrease the risk of the stakeholders and maximize the profit of all stakeholders. – Prof. Dr. 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 (PMI-RMP). By PMI P3M stands for "programme, portfolio and project management". A program is a collection of projects and other things that are managed together because you get benefits greater than managing them individually. But in fact, the three terms describe three very different practices. 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). They have led to the myth that Program Management is glorified Project Management. Does my answer make sense? As you can see there is a different between program and project management. Standards in project portfolio management and program management are still maturing. Why Lump Together Project Portfolio Management and Program Management? However, there are differences when you directly compare portfolio vs program management. 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? 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. Risk and reward are considered and balanced, and programmes are selected based on their alignment with organisational strategy. There are different types of management like Project Management, planning Management, Program Management, portfolio Management etc. I mentioned that this is a complex topic. Please bookmark this article with your social media. The main target of portfolio management is to decrease the risk of the stakeholders and maximize the profit of all stakeholders. In PMI’s definition, programs are composed of highly related projects and using program management would achieve benefits that would be difficult if not impossible otherwise. PMP, PgMP, PfMP, PMI-ACP, PMI-RMP). 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. At one extreme, a “soft program” is a collection of loosely related projects, which is more like a portfolio. What is PPM? 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. So the buzz words are “highly related” and “more benefits”. Hello Greg, While researching the differences between project, program and portfolio management, I came across your article. Program management addresses the management of project management. 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 … Project Management. Though a project and a program are distinct, the project management tools used to manage them are very similar. 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. Having foundational project management education makes each step in the process more efficient, from scoping projects, communicating with stakeholders to risk planning. What About the Distinctions with Project Management? A strategic initiatives are programs (thus amenable to program management tools) but not all programs are strategic initiatives. 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. We often use these words interchangeably and, while they share some similarities, they have distinct meanings with key differences. How can this knowledge help you lead a strategic initiative? In other words, portfolios involve similar projects and programs. Programs usually span a far greater duration than a project. Change ), You are commenting using your Twitter account. To be specific, the emergence of related but different fields of program management and project portfolio management has changed the … Product management is a closely related discipline and as most software organisations do product development I’ll include it in the discussion. A portfolio is not a subset of a program. Programs and projects are both in the realm of implementation. 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. 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 portfolio refers to projects, programs, sub-portfolios, and operations managed as a group to achieve strategic objectives. For example, managers of. This article provides comprehension into the contrast of the three mentioned terms. What Is The Difference Between Project Management And Portfolio Management? For one, PPM involves more strategy and is more goal-driven than program management. Change ), Enter your email address Portfolios are often made up of programs, which are made up of projects