difference between project portfolio management and program management

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

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