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