Project management, program management, and project portfolio management are all related to the management of projects, but they differ in scope and objectives. In this topic, we will explain and compare each of these management types and provide examples to illustrate the differences.
Definitions
Project Management
Project management involves the planning, organizing, and managing of resources to complete a specific project within a defined scope, timeline, and budget. Project management typically includes initiating, planning, executing, monitoring, controlling, and closing phases.
The project manager is responsible for managing the project team, communicating with stakeholders, and ensuring the project is completed successfully. Examples of projects include building a bridge, launching a new product, or implementing a new software system.
Program Management
Program management involves the coordination of multiple related projects that are grouped together to achieve a larger goal. A program is a collection of interdependent projects that are managed as a whole to achieve strategic objectives. Program management involves identifying and managing the interdependencies between projects, monitoring the progress of each project, and ensuring that each project aligns with the overall program goals.
The program manager is responsible for managing the program team, communicating with stakeholders, and ensuring the program is completed successfully. Examples of programs include implementing a new enterprise resource planning (ERP) system across an organization, building a new product line, or developing a new service offering.
Portfolio Management
Project portfolio management (PPM) involves the management of a collection of projects, programs, and other initiatives that an organization is undertaking. PPM is the process of selecting, prioritizing, and managing a portfolio of projects and programs to maximize the value delivered to the organization. PPM involves evaluating the strategic alignment of each project or program, assessing the risks and benefits, and balancing the portfolio to ensure that resources are allocated in the most effective way.
The portfolio manager is responsible for managing the portfolio team, communicating with stakeholders, and ensuring that the portfolio is aligned with the organization’s strategic goals. Examples of project portfolios include a mix of projects and programs that are aimed at achieving a specific strategic objective, such as improving customer experience, reducing costs, or expanding into new markets.
Initiatives
Initiatives are an important tool for organizations to achieve their strategic goals and to stay competitive in their industries. By carefully planning and executing initiatives, organizations can drive innovation, improve efficiency, and achieve long-term success.
Initiatives are high-level projects or programs that an organization undertakes to achieve its strategic goals. Initiatives are typically large-scale, long-term efforts that require significant resources and cross-functional collaboration.
Comparison
Difference
The main differences between project management, program management, and project portfolio management are summarized below:
- Scope: Project management focuses on the management of a single project, program management focuses on the coordination of multiple related projects, and project portfolio management focuses on the management of a collection of projects and programs.
- Objectives: Project management aims to complete a specific project within a defined scope, timeline, and budget. Program management aims to achieve strategic objectives by coordinating a collection of related projects. Project portfolio management aims to maximize the value delivered to the organization by managing a portfolio of projects and programs.
- Responsibilities: The project manager is responsible for managing the project team, communicating with stakeholders, and ensuring the project is completed successfully. The program manager is responsible for managing the program team, communicating with stakeholders, and ensuring the program is completed successfully. The portfolio manager is responsible for managing the portfolio team, communicating with stakeholders, and ensuring that the portfolio is aligned with the organization’s strategic goals.
Relationship between project, program and portfolio management
Here’s a comparison table that summarizes the main differences between project management, program management, and project portfolio management:
| Project Management | Program Management | Project Portfolio Management | |
|---|---|---|---|
| Scope | Single project | Multiple projects | Collection of projects & programs |
| Objectives | Complete project on time, within scope & budget | Achieve strategic objectives by coordinating projects | Maximize value delivered by managing a portfolio of projects & programs |
| Responsibilities | Manage project team, communicate with stakeholders, ensure project success | Manage program team, coordinate projects, ensure program success | Manage portfolio team, align portfolio with strategic goals, maximize value delivered |
| Examples | Building a bridge, launching a new product, implementing a new software system | Implementing an ERP system across an organization, building a new product line, developing a new service offering | Mix of projects & programs aimed at achieving specific strategic objectives, such as improving customer experience, reducing costs, or expanding into new markets |
Templates for Managing Projects, Programs and Portfolios
There are a variety of project management templates that can be used by project managers, program managers, and portfolio managers to help plan, track, and report on their initiatives. Here are some examples of commonly used templates for each role:
Project Management Templates:
- Project charter: A document that outlines the purpose, scope, and objectives of a project, as well as its key stakeholders and success criteria.
- Work breakdown structure (WBS): A hierarchical breakdown of the project’s deliverables into smaller, more manageable components.
- Project schedule: A timeline that shows the planned start and end dates for each project activity.
- Risk management plan: A document that identifies potential risks to the project and outlines strategies for mitigating or avoiding them.
- Status report: A summary of the project’s progress, including updates on key milestones, budget, and risks.
Program Management Templates:
- Program charter: A document that outlines the purpose, scope, and objectives of the program, as well as its key stakeholders and success criteria.
- Program roadmap: A high-level overview of the program’s objectives, timelines, and milestones.
- Program schedule: A timeline that shows the planned start and end dates for each project within the program.
- Program risk management plan: A document that identifies potential risks to the program and outlines strategies for mitigating or avoiding them.
- Program status report: A summary of the program’s progress, including updates on key milestones, budget, and risks.
Portfolio Management Templates:
- Portfolio roadmap: A high-level overview of the organization’s strategic objectives and the portfolio’s objectives, timelines, and milestones.
- Portfolio prioritization matrix: A tool for assessing and ranking projects and programs based on their strategic alignment, potential return on investment, and level of effort.
- Portfolio budget template: A document that outlines the overall budget for the portfolio and how it will be allocated across projects and programs.
- Portfolio risk management plan: A document that identifies potential risks to the portfolio and outlines strategies for mitigating or avoiding them.
- Portfolio status report: A summary of the portfolio’s progress, including updates on key projects and programs, budget, and risks.
It’s important to note that the specific templates used by project managers, program managers, and portfolio managers may vary depending on the organization and the nature of the initiative. Additionally, some templates may be used by all three roles, such as a stakeholder management plan or a communication plan. The key is to use templates that are tailored to the initiative and help ensure its success.
Here’s a table summarizing the main templates used by project managers, program managers, and portfolio managers:
| Project Management | Program Management | Portfolio Management | |
|---|---|---|---|
| Project Charter | X | ||
| Work Breakdown Structure | X | ||
| Project Schedule | X | ||
| Risk Management Plan | X | ||
| Status Report | X | ||
| Program Charter | X | ||
| Program Roadmap | X | ||
| Program Schedule | X | ||
| Program Risk Management | X | ||
| Program Status Report | X | ||
| Portfolio Roadmap | X | ||
| Portfolio Prioritization | X | ||
| Portfolio Budget | X | ||
| Portfolio Risk Management | X | ||
| Portfolio Status Report | X |
Key metrics in Projects, Programs and Portfolios
It’s worth noting that these metrics are not exhaustive and may vary depending on the specific project, program, or portfolio being managed. Additionally, some of these metrics may be more applicable to certain industries or types of initiatives. The key is to use the appropriate metrics that will best track progress towards the initiative’s objectives and goals. Here’s a table summarizing the key metrics each manager may analyze:
| Project Manager Metrics | Program Manager Metrics | Portfolio Manager Metrics | |
|---|---|---|---|
| Schedule Performance | Variance between actual and planned project schedule | Variance between actual and planned program schedule | Variance between actual and planned portfolio schedule |
| Cost Performance | Variance between actual and planned project budget | Variance between actual and planned program budget | Variance between actual and planned portfolio budget |
| Quality Performance | Number of defects or errors found during project execution | Number of defects or errors found during program execution | Number of defects or errors found during portfolio execution |
| Risk Management | Number and severity of identified risks and their mitigation | Number and severity of identified risks and their mitigation | Number and severity of identified risks and their mitigation |
| Stakeholder Satisfaction | Degree of stakeholder satisfaction with project deliverables | Degree of stakeholder satisfaction with program deliverables | Degree of stakeholder satisfaction with portfolio outcomes |
| Resource Utilization | Actual vs planned utilization of project resources | Actual vs planned utilization of program resources | Actual vs planned utilization of portfolio resources |
| Benefits Realization | Measured benefits vs expected benefits of the project | Measured benefits vs expected benefits of the program | Measured benefits vs expected benefits of the portfolio |
Managing Projects, Programs and Portfolios
Here’s a brief overview of the roles and responsibilities of each type of manager:
- Project managers: Project managers are responsible for managing the day-to-day activities of a specific project, including planning, execution, and monitoring. They are typically responsible for managing a project team, communicating with stakeholders, and ensuring that the project is completed on time, within budget, and to the required quality standards.
- Program managers: Program managers are responsible for managing a group of related projects that are designed to achieve a common goal or objective. They are responsible for coordinating the activities of the project teams, ensuring that the projects are aligned with the overall program objectives, and managing the program budget and resources.
- Portfolio managers: Portfolio managers are responsible for managing a collection of projects and programs that are designed to achieve specific strategic goals. They are responsible for selecting and prioritizing projects and programs, allocating resources and budget, and monitoring the progress and success of the portfolio as a whole. They may also be responsible for developing and communicating the overall portfolio strategy to key stakeholders.
While project, program, and portfolio management initiatives are related to each other in that they all involve managing projects or programs to achieve strategic objectives, they differ in scope and complexity. Project management initiatives are typically focused on delivering a specific outcome within a defined time frame and budget, while program management initiatives involve managing multiple related projects that are designed to achieve a common goal. Project portfolio management initiatives are focused on managing a collection of projects and programs to maximize their overall value to the organization and achieve its strategic goals. All three types of initiatives can benefit from effective project, program, and portfolio management practices, but they require different management approaches and skills.
Here’s a table summarizing the roles and responsibilities of project managers, program managers, and portfolio managers:
| Project Managers | Program Managers | Portfolio Managers | |
|---|---|---|---|
| Focus | Delivering specific projects | Coordinating a group of related projects to achieve a common goal | Managing a collection of projects and programs to maximize their overall value to the organization and achieve strategic goals |
| Scope | Limited to a specific project | Can include multiple projects, workstreams, and stakeholders | Can include all projects and programs within an organization, across departments and teams |
| Responsibilities | Managing project scope, schedule, budget, quality, and risks | Coordinating project teams, ensuring alignment with program objectives, managing program schedule, budget, resources, and risks | Selecting and prioritizing projects and programs, allocating resources and budget, monitoring portfolio performance, communicating portfolio strategy to stakeholders, adjusting portfolio as needed |
| Key Deliverables | Completed project that meets objectives and quality standards | Coordinated projects that achieve program objectives | A portfolio of projects and programs that collectively achieve strategic goals |
| Skills Required | Project management methodology, communication, stakeholder management, risk management | Program management methodology, team coordination, stakeholder management, strategic thinking, risk management | Portfolio management methodology, strategic planning, financial management, risk management, communication, stakeholder management |
Advantages and disadvantages of managing projects at program and portfolio levels
Managing projects at program and portfolio levels have their own advantages and disadvantages, which are summarized below:
Advantages of managing projects at program level:
- Better coordination: Managing projects at the program level allows for better coordination between multiple projects that are part of the same program, leading to improved efficiency and reduced duplication of effort.
- Shared resources: Resources such as personnel, equipment, and technology can be shared among the projects in the program, leading to cost savings.
- Increased visibility: Program management provides increased visibility into the overall status of the projects, making it easier to identify and address issues that impact the program as a whole.
Disadvantages of managing projects at program level:
- Complex governance: Program management can be more complex and require more formal governance structures, processes, and communication than managing individual projects.
- Dependency risks: Managing multiple projects as part of a program can increase dependency risks, as delays or issues in one project can impact the entire program.
- Difficult to manage change: Changes to the scope or schedule of one project in the program can have a ripple effect on the other projects, making it difficult to manage change.
Advantages of managing projects at portfolio level:
- Alignment with strategic goals: Portfolio management enables organizations to align projects with their strategic goals, ensuring that resources are allocated to the most important initiatives.
- Better resource allocation: Portfolio management allows for better resource allocation, ensuring that resources are distributed effectively across all projects to maximize return on investment.
- Risk management: Portfolio management helps organizations manage risk by identifying and mitigating risks across all projects.
Disadvantages of managing projects at portfolio level:
- Limited visibility into individual projects: Managing projects at the portfolio level can make it more difficult to gain visibility into the status of individual projects, which can make it harder to identify issues and make informed decisions.
- Difficult to manage change: Changes to the portfolio, such as adding or removing projects, can be difficult to manage and require significant planning and communication.
- Increased bureaucracy: Portfolio management can introduce additional bureaucracy, which can slow down decision-making and increase costs.
Roles and Responsibilities
It’s important to note that the specific tasks performed by project managers, program managers, and portfolio managers may vary depending on the organization and the nature of the initiative. Additionally, some tasks may be performed by all three roles, such as stakeholder management and communication. The key is to ensure that all tasks are aligned with the overall objective and are being effectively managed. Here’s a list of different tasks performed by project managers, program managers, and portfolio managers:
Here is an overview of the roles and responsibilities of the Project Manager, Program Manager and Portfolio Manager:
Project Manager:
The Project Manager is responsible for managing the day-to-day activities of a specific project within the portfolio. This includes managing the project team, monitoring project progress, and reporting on project status to the Portfolio Manager and other stakeholders. The Project Manager is responsible for ensuring that the project is delivered on time, within budget, and to the required quality standards. People management responsibilities of a Project Manager include:
- Key Responsibilities:
- Develop project plans and schedules
- Define project scope and objectives
- Identify project deliverables and success criteria
- Develop and manage project budget
- Identify and manage project risks
- Coordinate project team members and stakeholders
- Monitor project progress and performance
- Communicate project status to stakeholders
- Manage project changes and issues
- Ensure project quality and compliance
- People Management:
- Setting project goals and objectives
- Defining roles and responsibilities for team members
- Managing team member performance
- Developing team member skills and capabilities
- Resolving conflicts among team members
- Motivating and engaging team members
- Reporting:
- Reporting on project status to stakeholders
- Identifying and reporting risks and issues
- Providing regular updates on project progress and milestones
- Reporting on project costs and budget
- Communicating project changes and updates to team members and stakeholders
Program Management:
The Program Manager is responsible for managing a group of related projects within the portfolio, known as a program. This includes managing resources, coordinating project activities, and reporting on program status to the Portfolio Manager and other stakeholders. The Program Manager is responsible for ensuring that the program is delivered on time, within budget, and to the required quality standards. People management responsibilities of a Program Manager include:
- Key Responsibilities:
- Develop program strategies and objectives
- Define program scope and success criteria
- Identify and prioritize program initiatives
- Develop program budgets and resource plans
- Identify and manage program risks
- Coordinate program team members and stakeholders
- Monitor program progress and performance
- Communicate program status to stakeholders
- Manage program changes and issues
- Ensure program quality and compliance
- People Management:
- Providing overall leadership and direction for the program team
- Managing interdependencies and coordination between projects
- Ensuring consistency in project management practices across the program
- Managing program level risks and issues
- Facilitating collaboration and communication among project teams
- Developing and managing program level relationships with stakeholders
- Reporting:
- Providing regular status updates on the program to stakeholders
- Reporting on program level risks and issues
- Identifying and reporting on program level benefits and performance metrics
- Reporting on program costs and budget
- Communicating program level changes and updates to project teams and stakeholders
Project Portfolio Management:
The Portfolio Manager is responsible for overseeing the portfolio of projects and ensuring that the portfolio is aligned with the organization’s overall strategy and objectives. This includes managing resources, prioritizing projects, and making decisions about which projects to pursue. The Portfolio Manager is responsible for ensuring that the portfolio of projects is delivered on time, within budget, and to the required quality standards. People management responsibilities of a Portfolio Manager include:
- Key Responsibilities:
- Develop and communicate the organization’s strategic objectives
- Identify and prioritize projects and programs
- Develop and manage the portfolio budget
- Allocate resources across projects and programs
- Identify and manage portfolio risks
- Monitor portfolio performance and benefits realization
- Communicate portfolio status to stakeholders
- Manage portfolio changes and issues
- Ensure portfolio alignment with organizational strategy and goals
- People Management:
- Prioritizing projects and programs based on strategic value and resource constraints
- Allocating resources across projects and programs
- Managing portfolio level risks and issues
- Ensuring alignment of projects and programs with overall organizational strategy
- Managing relationships with key stakeholders
- Ensuring consistency in project and program management practices across the portfolio
- Reporting:
- Providing regular updates on portfolio performance to senior management and other stakeholders
- Identifying and reporting on portfolio level risks and issues
- Reporting on portfolio level benefits and performance metrics
- Reporting on portfolio costs and budget
- Communicating portfolio level changes and updates to project and program teams and stakeholders.
Conclusion
In summary, project management, program management, and project portfolio management are all important management types that organizations can use to achieve their strategic objectives. Project management is focused on completing a specific project, program management is focused on coordinating a collection of related projects, and project portfolio management is focused on managing a portfolio of projects and programs to maximize the value delivered to the organization. By understanding the differences between these management types, organizations can better allocate resources and achieve their strategic goals.
