Projects continue to add value by resolving user issues, advancing technology, meeting compliance requirements, and gaining a competitive advantage. Projects have a specific goal, are a one-time undertaking, and are completed and managed for a set period of time with a specific start and end date. A project can be defined as the timely and cost-effective delivery of a service or product while meeting the required performance benchmarks. For example, implementing a new customer relationship system may result in more new leads and, as a result, more revenue.
Programs, on the other hand, are collections of related projects that work together to achieve a common goal. A project is concerned with the content, whereas a program is concerned with the benefits. A project might include creating a web application for ticket registration (air, travel, or rail) in order to generate revenue. A program could consist of developing a set of analytics-related functionalities or applications and generating leads through marketing for the desired outcome of customer conversion (with the individual components of its projects).
Because of the value and benefits they provide, skilled project and program managers are always in high demand around the world. In this article, we will look at the following distinctions between projects and programs:
Realization of Benefits
Management of Change
Risk \sComplexity
Governance
Organizational Role
Portfolios, Programs, and Projects
A portfolio is a collection of programs, projects, sub-portfolios, sub-programs, and operations that are organized to maximize business benefits (i.e., maximize profitability). The organization groups its initiatives, investments, projects, and programs into portfolios or lines of business that align with the organization’s benefits in the diagram below (Diagram 1.0). Under the program, there may be a group of projects or programs that are aligned with the respective portfolio or sub-portfolio.
To maximize the organization’s benefits, resources are efficiently utilized (moved, managed, or optimized) between programs and projects. Projects can also exist independently and are not required to be grouped into programs. Within the portfolio, programs will be used in their standard manner, with each program managing the dependencies of its projects, program-level risks, and information flow between projects.
Some Key Distinctions Between Projects and Programs
Projects and programs are valuable for a variety of reasons due to their characteristics. Understanding these distinctions aids in determining the appropriate application of projects or programs. Although this is not a comprehensive list, it provides a broad understanding and a strong complete list for anyone who wishes to use these tools.
Projects vary in duration, whereas programs are generally longer in duration, because the start of the program corresponds to the start of its first project, and the end of the program corresponds to the end of its last project.
Projects concentrate on desired outcomes or benefits, whereas programs concentrate on desired outcomes or benefits.
Metrics such as budget, schedule, and quality can be used to assess the project’s efficiency and effectiveness. However, the program’s efficiency and effectiveness will be measured in terms of the program’s benefits realization. Even though the projects will exist within the program, such differentiation allows one to measure the success of both project and program management.
A project accomplishes project objectives (“Why” the deliverable/s is/are required), and the program in general focuses on generating organizational benefits.
Projects have defined objectives, and the scope is developed iteratively; programs have a scope that encompasses the scope of the collection of projects.
Project managers anticipate change and implement processes to keep it under control, whereas program managers accept and adapt to change in order to maximize benefit delivery.
Project Success has been measured by product and project quality, timeliness, budget compliance, and customer satisfaction; program success has been measured by the program’s ability to deliver the intended benefits to the organization.
These are just a few distinctions between programs and projects. The topics that follow are more focused on the tactical application of these two tools.
Realization of Benefits
Commercial organizations seek commercial advantages. Non-profit organizations seek advantages such as improved health, safety, and security. Organizations can use projects to ensure controlled change where the projects are concentrated because projects focus on deliverables that meet objectives. Programs can also be used by businesses to realize benefits between projects. To compare the differences in benefits realization focus between the two, there are two documents that can help a project manager with benefits realization:
The Business Case, which justifies the value or benefits of the project in order to gain project approval.
The Business Management Plan details how benefits will be planned, determined, measured, and validated throughout the project.
A program, on the other hand, will document, monitor, and administer benefits identification, benefits analysis and planning, benefits delivery, benefits transition, and benefits sustainment (if formal). When comparing programs to projects, this demonstrates the level of analysis and control over expected benefits.
Management of Change
Change management should be considered formal. Change is approved, applied, and verified when it is required, whether at the project or program level. Program management ensures that the program’s components perform consistently well. As a result, change is incorporated between projects as well as between projects and the administrative work that supports the program. Projects, on the other hand, use change to control variance from planned cost and schedule while preserving various aspects and characteristics of the planned outputs.
Risk
We don’t know if it will happen, and if it does, how big of an impact it will have. Risk is always minimized or avoided in projects because it can have a significant impact on the project. Projects exist in a world where the output, benefits, or outcome of the work is uncertain and unpredictable. There is a lower chance of certainty because projects have more or less fixed constraints at the outset.
Programs, on the other hand, are less defined at the start and may have more significant uncertainty than projects, even projects that define the programs. The same thing happens throughout the project’s life cycle—as the project progresses, it becomes more defined. Programs can be changed around projects to ensure project stability and thus contribute to project success. As a result, there is less risk for projects and more risk for programs.
Complexity
Projects and programs may respond to complexity in different ways and due to different types of complexity, but they all respond in the same way: it takes longer and increases uncertainty for both. Governance, stakeholders, definition (agreement on the future state among stakeholders), benefits delivery, and interdependence can all contribute to program complexity (connections between components). Organizational complexity (the depth of the organization structure as well as the number of organizational units) and dynamic complexity (the project’s behavior and how it changes over time) contribute to project complexity.
Governance
Governance is the monitoring, management, and assistance used to achieve goals. For projects, goals support the deliverable and its ability to achieve objectives. Governance establishes and maintains program support and oversight. Another distinction between projects and programs in terms of governance is the manner in which they are implemented. Governance is implemented and integrated in projects through a set of organizational, project, and stakeholder requirements and constraints.
A Project Manager’s Role
The project manager’s role is to lead and manage—to direct the team, engage stakeholders, and influence and motivate. They take overall responsibility for the project and use that broad vision to motivate and influence others. They may not know how to perform all of the skills required to build the deliverable, but they can bring diverse skills together and support an environment that leads to a successful outcome by understanding management and leadership.
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A Program Manager’s Role
A program manager, on the other hand, is authorized to lead the team or teams responsible for achieving program objectives. They are in charge of the program’s leadership, performance, and conduct, and they build teams capable of achieving those goals. As a result, the program manager will monitor component activity outputs and outcomes to ensure that the program adapts appropriately to those activities.
