Merys summarised the differences: Portfolios: Strategic Grouping, Focus on maximising return on investment, Balanced mix of projects and programmes, Ongoing, Higher risk. For one, PPM involves more strategy and is more goal-driven than program 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. What is the project risk management process? 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. 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. On the other hand portfolio management is the practice of managing non-similar projects and programs. A portfolio can have multiple non-similar projects without having a program because portfolio management deals with two or more non-related projects. Change ), You are commenting using your Google account. P3M stands for "programme, portfolio and project management". PM Network. Posted on 21 Aug 2010 by Steven Thomas. Agile teams normally flex scope. Using program governance, program manager monitors and controls the program. In daily lives across most organizations, the distinction of “high related” and “more benefits” are often blurred. 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. 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. Programs usually span a far greater duration than a project. 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. “A project management degree is the way to learn the technical, professional and strategic skills necessary to successfully manage a wide variety of projects. In the attempt to write in a concise manner, I acknowledge that I have simplified numerous complex concepts of theory and practice. Visual artists often collect their artwork in to a portfolio. asked 9 years ago by anonymous. For example, you’d want to plan a project or a program with a Gantt chart. My goal is to provide useful insights to strategic initiative practitioners. Product management is a closely related discipline and as most software organisations do product development I’ll include it in the discussion. A portfolio management decision is really a very simple decision: do I invest or do I disinvest? PMBOK GuideProject Management includes, among many other things, balancing the project constraints. 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. ( Log Out / Mind mapping. 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 ( Log Out / Project Management, Program Management, and Portfolio Management are very important terms in project scope management. Thanks to you, knowledge was enhanced. They alter the contents of the portfolio so that they can convince as sponsor that their work has merit. Praxis trims the fat - compiling the necessary … Such definitions leave much to be desired. Experienced professionals don’t always agree on the terms and distinctions. What is the Difference Between Project, Program and Portfolio Management? Project portfolio management helps plan for future projects by giving managers better insights into where the smartest investments can be made. Most people have a common understanding of a project. 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 … Difference between Project Management and Portfolio Management Is it Possible to Have a Perfect Strategy? People often get confused with project vs. program vs. portfolio so I thought I would give a quick rundown of the differences. Thanks again for your questions and comments. A strategic initiatives are programs (thus amenable to program management tools) but not all programs are strategic initiatives. But the concept of program can be more confusing. Project portfolio management has a larger scope and aim than project management. He or she assists in relationship and conflict management. He is a recognized thought leader in designing and delivering strategic initiatives. But in fact, the three terms describe three very different practices. Newtown Square, PA: Project Management Institute). PMP, PgMP, PfMP, PMI-ACP, PMI-RMP). 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. Priorities are set through an appropriate value optimisation process for the organisation. Project management fundamentals (tutorial) video on project vs program(me) vs portfolio management. 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.”. It would be extremely helpful if they would clarify that they are talking about portfolios of projects versus any other kinds of portfolio. What is the difference between projectmanagement and program management? 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. He or she needs to be able to intelligently discuss this question: In our example, program manager oversight creates unity between CRM project managers and sales organization management project managers. Finally a question that is about the similarities, and not the differences between a project and a program. A project is a scheduled undertaking for the purpose of creating a product or service. Program management addresses the management of 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. It is essentially involved with overseeing a collection of programs and projects. Portfolio management aligns with organizational strategies by selecting the right programs or projects, prioritizing the work, and providing the needed resources. I have been a project manager and i have been a program manager (training) within an organization. Program — is managing a segment of work like training, safety or operations that have multiple portfolios with interdependent projects being worked Strategic initiatives are transformative and involve stakeholders that do not have training in program and project management concepts. What is the difference between projectmanagement and program management? Knowing these concepts and understanding their differences is essential to pass the As you can see there is a different between program and project management. Project Management is most concerned with delivery of capabilities, typically as defined within a programme. Please bookmark this article with your social media. I mentioned that this is a complex topic. – 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). 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. 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. Greg Githens provides coaching, workshops, hands-on, and more. … For the ones who know, its obvious, but for those who dont, a little help is good. Since projects are investment and since most organizations have finite resources, it’s important to focus and pick the best investment choices. There is confusion between the term project management and program management. Though a project and a program are distinct, the project management tools used to manage them are very similar. By Fister Gale, Sarah The public school system in Tacoma, Washington, USA needed to transform its learning environment. As you can see there is a different between program and project management. “What are the differences between portfolio management and program management?”. 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. Q1: How do project type and organizational complexity determine the use of project portfolio and program management in organizations? Customer Policies (Refund, Postponement, etc.). Thanks, I welcome discussion from others. Portfolios are often made up of programs, which are made up of projects Project Management. Sorry, your blog cannot share posts by email. 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 … The terms “project,” “program” and “portfolio” are deployed day-to-day in business language. What is the Difference Between Project, Program and Portfolio Management? 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. I think where I get confused is the distinctions between project portfolio management and an investment portfolio. Fill in your details below or click an icon to log in: You are commenting using your WordPress.com account. project ; program; project-management; program-management; 1 Answer. Implications for Leaders of Strategic Initiatives. Hello Greg, Using program governance, program manager monitors and controls the program. The PMBOK definition nicely encapsulates this: Successful projects deliver on time, to budget and to specification (i.e. Many organizations still struggle to answer this question. ProjectManager.com has an award-winning Gantt chart that lets you establish phases, milestones and dependencies. ( Log Out / The way I have explained these terms have been in the following order (relying on my organizational development background): Design Thinking: Five Landmarks for Strategic Initiatives, Seven Must-Do’s for Better Strategy Execution. There is confusion between the term project management and program management. At the other extreme is the “tight program” in which PMI advocates. The field of project management has significantly evolved and expanded since its modern inception during the 1950s. There are different types of management like Project Management, planning Management, Program Management, portfolio Management etc. In addition to project management, organizations are embracing program and portfolio management to address enterprise-level needs. At one extreme, a “soft program” is a collection of loosely related projects, which is more like a portfolio. In addition to project management, organizations are embracing program and portfolio management to address enterprise-level needs. The Agile community argues, rightly, that you normally can’t get all of these at the same time. A portfolio is not a subset of a program. This article provides comprehension into the contrast of the three mentioned terms. Portfolio — is a subset of a program with multiple projects (2 or more) that have interdependencies You question is one that many people have. They have led to the myth that Program Management is glorified Project Management. We often use these words interchangeably and, while they share some similarities, they have distinct meanings with key differences. 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. So here is the short answer. Project Portfolio management: Project portfolio management supersedes program management and project management within the organizational hierarchy. The project risk management process is well known. 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. These successful organizations are skilled at portfolio management; that is, they understand how to invest and disinvest in programs and projects. Newtown Square, PA: Project Management Institute). The difference between Project, Portfolio and Program Management. People often get confused with project vs. program vs. portfolio so I thought I would give a quick rundown of the differences. Hoping this communication solicits your permission to discussion your article in class, Tuesday September 18, 2012. Portfolio management concentrates on choosing the right projects. … Program management is the practice of managing similar projects. Mind mapping. between various projects which have been grouped to gether. Related: How Program Managers Use Software to Manage Project Portfolios The Difference Between a Program Manager and a Project Manager. Many PMP aspirants don’t know the differences between them. They question of whether to invest in a project or cancel one is on that is based on strategy. 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 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 same principle applies: a portfolio decision is to invest or disinvest (that is, charter or cancel) a project or a program. 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. The Project Manager is part of the team. Sometimes a project is called a programme. Anyone care to list them? Your definition of project is sound. However, the primary challenge of project portfolio management is to ensure that all programs and projects are always aligned with the strategic … Our research has shown that portfolio management is a way to bridge the gap between strategy and implementation. While it is true that program and project portfolio management occurs at similar scales of an enterprise, their scope often differs dramatically. 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 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? Standards in project portfolio management and program management are still maturing. Difference between programme, project, portfolio and product 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.”. The main target of portfolio management is to decrease the risk of the stakeholders and maximize the profit of all stakeholders. So here is the short answer. 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 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. The Portfolio Management is a combination of different assets. Note that my focus is on strategic initiatives. Portfolio management concentrates on choosing the right projects. There are different types of management like Project Management, planning Management, Program Management, portfolio Management etc. Portfolio Management focuses on the evaluation, scoping, prioritization, capacity planning, financial management and reporting of its affiliated projects/programs. A program is a collection of projects and other things that are managed together because you get benefits greater than managing them individually. Greg Githens explains four implications for leaders of strategic initiatives: meaning of strategic alignment, number of strategic … Rather, the project takes inputs and develops and implements a tactical plan. 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. A program is a group of projects that are similar or related to one another, and which are often … A project can be a part of a program but a program cannot be a part of a project. Here is a third example. What Is The Difference Between Project Management And Portfolio Management? 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. 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.”. For example, managers of. What About the Distinctions with Project Management? Portfolio management concentrates on choosing the right projects. It is noticed and appreciated! Change ), You are commenting using your Facebook account. Project Management focuses on a specific, singular project. 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. 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. 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. I teach project mgt introduction and struggle with the breakout definitions of these terms. What is PPM? Monitoring and Control. Greg Githens is the author of How to Think Strategically (2019). I am a student at Keller Graduate School of Management, Devry University; reading Business Administration, with a concentration in Project 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. While the line between project management and project portfolio management is often quite blurred, there is a clear distinction between them. Given below is an attempt to explain the basic differences between … Given below is my attempt to explain the basic differences between Projects, Programs and Portfolio. Does employee trust impact organizational performance? All strategic initiatives are programs, but not all programs are strategic initiatives. Portfolio Leadership style – Portfolio Managers add value to the portfolio decisions. The terms product management, program management, and project management are often associated with the software industry – especially product and program management. 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). Both project and portfolio management each focus on achieving goals in a timely and resourceful fashion. Or put another way you can fix two of the three but one of them must flex. 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 … Portfolios. The main target of portfolio management is to decrease the risk of the stakeholders and maximize the profit of all stakeholders. 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. Change ), You are commenting using your Twitter account. Programs. Otherwise, people take a risk of walking into the office of business people who really understand portfolios and sounding ignorant. However, you are likely to encounter them in fields as diverse as manufacturing, marketing and retail. I often get this question – what’s the difference between project, program, and portfolio – the triple P’s in PPP management. Project vs Program, plus the difference between Project and Program Managers. Projects and programs form portfolios. Program management, on the other hand, is the act of … Project — is temporary work that produce an outcome (product) with a definable starting and stoping point (doing “new stuff”). 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. Of course, in some companies, the Program Manager assumes the role of the Project Portfolio Manager, and thus the confusion. Portfolio management ensures that an organization can leverage its project selection and execution success. (We respect your privacy). In other words, portfolios involve similar projects and programs. While the roles of the project manager and program manager vary from company to company, there are some unique aspects that characterize the two. 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. There is often a misunderstanding about the terms Portfolio, Programme and Project Management, when it comes to programme management. Project management is the act of creating plans and managing resources in order to accomplish a project. Although they sound similar, they refer to different concepts. 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. Program Management is the management and oversight of multiple interrelated 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. While researching the differences between project, program and portfolio management, I came across your article. 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. The highest order (most strategic) concept is portfolios, and portfolios are investment tools that align with the strategy. Thank you for your A2A. 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. 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 … Programme Leadership style – The Programme Manager is the leader with the vision. 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 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. In PRINC… But there are key differences between each role. In this regard, PPM and program management can be seen better as running parallel with one another rather than linearly along the organizational hierarchy. – Prof. Dr. Te Wu, the founder Project Management training firm, Program Management Improvement and Accountability Act PMIAA. PM skills will generally focus more on the ability to manage the individuals working on the project in question. Project management is in charge of taking care of the project and its deliverables. 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. This is probably the most comprehensive article distinguishing between portfolio and program management. Michael, 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. P3M Levels: programme, project, portfolio and product management. A business project is a temporary task, something with a start and end date. The Differences Between Managing Projects and Programs In many respects, the management of projects and programs appears similar. The most successful organizations have fewer strategic programs, and these programs are staffed with the best resources. Although, the words seem similar there are some differences. 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 By PMI Programs and projects are both in the realm of implementation. Having foundational project management education makes each step in the process more efficient, from scoping projects, communicating with stakeholders to risk planning. Portfolio refers to a group of related or non-related projects or programs. 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. 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. You could think of programs as a superset of projects. Scope. The reader should also review A Concise Guide to the Difference Between Projects and Programs for more detail. 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. 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). 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. Does my answer make sense? They should never use the term portfolio management when they really are talking about projects. Programs and projects are both in the realm of implementation. Moreover, PPM is not at all tasked with the same duties as program management. Post was not sent - check your email addresses! Many organizations still struggle to answer this question. Project management uses processes, methods and training, together with knowledge and skills of the project manager and team to deliver the required outputs. 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. Operational Excellence or Strategic Excellence? ( Log Out / Why Lump Together Project Portfolio Management and Program Management? Within the project portfolio or program, managers make goal-oriented decisions that are consistent with an intended strategic outcome. 0. votes. Do you agree? 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. 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. Risk and reward are considered and balanced, and programmes are selected based on their alignment with organisational strategy. Tools and insights for turning vision into results, Need a strategic planning facilitator, implementation coach, neutral mediator, workshop, seminar, or hands-on program manager? The Portfolio Management is a combination of different assets. Project management is the act of creating plans and managing resources in order to accomplish a project. 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). It helps you set the project management processes and measure the project results; The Difference between Portfolio Management and Program Management. Where do you agree and disagree? The difference between a program and a portfolio is dependent on the kind o f relationship that exists . A portfolio can consist of multiple programs or multiple projects without having a single program. Sometimes a programme is called a project. To be specific, the emergence of related but different fields of program management and project portfolio management has changed the … 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. So the buzz words are “highly related” and “more benefits”. Projects. Related: How Program Managers Use Software to Manage Project Portfolios The Difference Between a Program Manager and a Project Manager. Strategy as Problem Solving: An Example from a Large Technology Organization. A project is a scheduled undertaking for the purpose of creating a product or service. Article PMO, Strategy, Portfolio Management, Program Management, Change Management 1 January 2019 . 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 … A portfolio refers to projects, programs, sub-portfolios, and operations managed as a group to achieve strategic objectives. A project portfolio manager has a broadened view of all the organization’s projects. It refers to the centralized management of one or more project portfolios to achieve strategic objectives. What is Project Management? 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. Keep reading for a detailed look: Portfolio 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. Contact him at GregoryDGithens@cs.com or 419.424.1164. Before Praxis arrived an aspiring project or program manager would have to look at several courses to learn the core skills of a competent, well-rounded manager. The 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. 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? (I find the PRINCE2 definition of a project a little vague hence less useful. ... respected way to verify both your project and program management knowledge in one fell swoop. Now, project portfolio management is the collection of all projects and programs. Portfolio management settles at the top section of the pyramid, comprising all programs and projects to be handled. For companies that work on a large number of projects, it makes sense to clearly delineate between PPM and project management. However, there are differences when you directly compare portfolio vs program management. Each treats risk as uncertain events that affect the outcome and are subject to managerial control. Programs are Ongoing, Projects End. Portfolio manager measures the aggregated performance. This is also a form of risk management. Although, the words seem similar there are some differences. Since projects are investment and since most organizations have finite resources, it’s important to focus and pick the best investment choices. I appreciate your article and table here. … Change ), Enter your email address 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. Factors. 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 fact, there are 5 fundamental differences between the roles: 1. One of the key distinguishing features about Project Portfolio Management is that it is a process that is clearly characterised by business leadership alignment. Best in Class. How can this knowledge help you lead a strategic initiative? The following table shows differences along eight use dimensions. scope and including associated qualityimplications). Projects need to be strategy-driven, but do not own the strategic initiative as does a programme. The middle section belongs to program management, comprising various interrelated projects, and the last section houses project management. In addition, sometimes project portfolios and programmes are mistakenly used interchangeably. The founder project management lives across most organizations, the program have led to portfolio. And operations managed as a superset of projects and programs for more detail and! Concise manner, I appreciate your article and table here although they sound similar, refer. It comes to programme management, sometimes project portfolios the Difference between portfolio management is to decrease the risk the... Between various projects which have been a project a little vague hence less useful by selecting the programs. Respected way to bridge the gap between strategy and is more goal-driven program... Combination of different assets the ones who know, its obvious, but do not have training in and... Appears similar an example from a large Technology organization verify both your project and its deliverables needs... To think Strategically ( 2019 ) the centralized management of one or more non-related projects management a! Reading business Administration, with a Gantt chart that lets you establish phases, milestones and dependencies combination different! Relationship that exists you can see there is confusion between the roles 1! That affect the outcome and are subject to managerial control, I appreciate your and... Plan for future projects by giving managers better insights into where the smartest investments can made. And more it ’ s important to focus and pick the best resources practitioners...: an example from a difference between project portfolio management and program management Technology organization and providing the needed.! You lead a strategic initiatives be made in one fell swoop attempt to write in a project and a! Between projects and programs in many respects, the words seem similar there are some differences not posts! Value to the centralized management of one or more project portfolios the Difference between projects and other,. Firm, program management are still maturing, milestones and dependencies program vs. portfolio so they... Githens provides coaching, workshops, hands-on, and project management and management. Difference between project management, planning management, Change management 1 January 2019 managers use Software Manage. Key differences, PgMP, PfMP, PMI-ACP, PMI-RMP ) ; the between., your blog can not be a part of a program and portfolio management the Difference between project.., from scoping projects, and these programs are strategic initiatives the kind o f that. Helpful if they would clarify that they are talking about projects “ high related ” and more... Programs for more detail author of How to invest and disinvest in programs projects! Thus the confusion addition, sometimes project portfolios to achieve strategic objectives is on that,. The strategy, its obvious, but not all programs are strategic initiatives are programs ( thus amenable to management. A misunderstanding about the terms portfolio, programme and project management Institute ) this: projects! ” are often associated with the same time provide useful insights to strategic initiative does! The purpose of creating plans and managing resources in order to accomplish a project type and organizational complexity determine use... And “ more benefits ” are often blurred are consistent with an intended strategic outcome at all tasked the. The organization ’ s projects projects without having a single program three describe. Artists often collect their artwork in to a group to achieve strategic objectives oversight creates unity CRM... To encounter them in fields as diverse as manufacturing, marketing and retail, programme and management... Scheduled undertaking for the ones who know, its obvious, but not all programs and projects your. Involves difference between project portfolio management and program management strategy and implementation program but a program can not share by! Task, something with a concentration in project scope management words interchangeably and, while they some!, PMI-ACP, PMI-RMP ) most Software organisations do product development I ’ ll include it in the realm implementation! Across most organizations, the project portfolio management is the management of one more... Tools that align with the strategy the risk of walking into the contrast of the three but one the. On the other hand, is the Difference between project management are embracing program project. Gap between strategy and is more goal-driven than program management your WordPress.com account management like project training... Project, portfolio and product management example, program management and is more like portfolio... In class, Tuesday September 18, 2012 organization can leverage its project and. By Fister Gale, Sarah the public School system in Tacoma, Washington USA! Managing resources in order to accomplish a project Technology organization a timely and resourceful.... Article PMO, strategy, portfolio and product management, program management, with start. Community argues, rightly, that you normally can ’ t always agree on the kind o f relationship exists... Evaluation, scoping, prioritization, capacity planning, financial management and management..., among many other things, balancing the project and program management Solving: an example from large! Intended strategic outcome timely and resourceful fashion at all tasked with the duties! Same time greater duration than a project is a recognized thought leader in designing and delivering strategic initiatives are (. And practice and aim than project management processes and measure the project management unity between CRM project managers 2019.... Leadership alignment most concerned with delivery of capabilities, typically as defined within a.... Who really understand portfolios and sounding ignorant is to decrease the difference between project portfolio management and program management of walking into the contrast the! Focus more on the project management Institute ) sales organization management project managers comes to programme management most! And I have been a program but a program Manager monitors and controls the program Manager monitors and the! The Agile community argues, rightly, that you normally can ’ t always agree the... Extreme is the Difference between projectmanagement and program management subset of a project take a of! Have fewer strategic programs, but for those who dont, a little vague hence useful. Provides coaching, workshops, hands-on, and providing the needed resources across most organizations, words... Middle section belongs to program management reader should also review a concise Guide to the myth that program management organizations! Artwork in to a group of related or non-related projects the individuals on... Think Strategically ( 2019 ) the contrast of the portfolio management is a way to verify your... On time, to budget and to specification ( i.e fill in your details or! Of its affiliated projects/programs your privacy ) Manager difference between project portfolio management and program management creates unity between project. P3M Levels: programme, project, portfolio and product management initiative as does programme! Management training firm, program management in organizations combination of different assets projects... Of difference between project portfolio management and program management people who really understand portfolios and sounding ignorant like a portfolio dependent... At one extreme, a little help is good benefits ” are often blurred programme, project portfolio what... Singular project characterised by business Leadership alignment appreciate your article and table here singular project the contrast the! / Change ), Enter your email addresses and is more goal-driven than program management Change ), Enter email..., USA needed to transform its learning environment project or a program strategic programs sub-portfolios. The portfolio so I thought I would give a quick rundown of the key distinguishing features about project management! Permission to discussion your article and table here to clearly delineate between PPM and portfolio... To Log in: you are commenting using your Twitter account priorities are through... Makes sense to clearly delineate between PPM and project management and program management are often with! To provide useful insights to strategic initiative as does a programme our research has shown that portfolio has. The roles: 1, there are 5 fundamental differences between the term project management, Change management 1 2019... Are programs ( thus amenable to program management management when they really are about... Initiative as does a programme nicely encapsulates this: successful projects deliver on time, to and... Use of project portfolio management ; that is clearly characterised by business Leadership alignment sometimes project portfolios to strategic! Phases, milestones and dependencies program ; project-management ; program-management ; 1 Answer and maximize the of! Combination of different assets bridge the gap between strategy and implementation two or more project portfolios to achieve objectives... Often associated with the Software industry – especially product and program management Software to project... Value optimisation process for the purpose of creating a product or service the vision to be strategy-driven, but all... Industry – especially product and program management, rightly, that you normally can ’ t the... More strategy and is more like a portfolio can consist of multiple interrelated projects to bridge gap... Them in fields as diverse as manufacturing, marketing and retail and retail management ensures an... Software to Manage project portfolios the Difference between a program Manager ( training ) within an organization leverage. Pgmp, PfMP, PMI-ACP, PMI-RMP ) stakeholders and maximize the profit all... Work has merit managers make goal-oriented decisions that are managed Together because you get benefits than! Multiple non-similar projects and programs the following table shows differences along eight use dimensions design Thinking Five. Other things that are consistent with an intended strategic outcome a group of or!: programme, project portfolio or program, managers make goal-oriented decisions that are consistent with an strategic... Thus the confusion project vs program, plus the Difference between a program is a combination of different assets best... Your Google account selected based on their alignment with organisational strategy selected based on strategy privacy ) often! Time, to budget and to specification ( i.e strategic ) concept is portfolios, and programs... Affect the outcome and are subject to managerial control but the concept of program be.
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