The field of project management has significantly evolved and expanded since its modern inception in the 1950s. The emergence of related but different fields of program management and project portfolio management has specifically changed the way organizations tackle and handle projects. This brief article discusses the difference between project management, program management, and project portfolio management.
What is the Difference Between Project Management, Program Management, and Project Portfolio Management?
Understanding the difference between project management, program management, and project portfolio management is as straightforward as understanding the difference between a project, a program, and a project portfolio.
A project is defined as a temporary activity undertaken to create a unique product or a particular result. A program, on the other hand, is essentially a group of related or interrelated projects, subprograms, and/or program activities. A project portfolio is a strategic collection of all projects and programs within an organization.
The Project Management Institute provides more exhaustive definitions. Nevertheless, from the definitions above, the following are definitions for project management, program management, and project portfolio management:
1. Project Management
Project management is a discipline and subfield of management concerned with the initiation, planning and design, execution, monitoring and control, and closing of an individual project. The primary challenge of project management is to accomplish all of the identified project goals and objectives within the given constraints.
2. Program Management
Program management or programme management is the process of managing multiple interdependent or interrelated projects and subprograms. The primary challenge of this discipline revolves around defining interfaces, aligning schedules, coordinating resources, managing risks, and promoting change management.
3. Project Portfolio Management
Project portfolio management supersedes program management and project management within the hierarchy. It centers on overseeing a collection of programs and projects. The purpose of project portfolio management is to ensure that all programs and projects are always aligned with the strategic objectives of the organization.
Examples of the Difference Between Project Management, Program Management, and Project Portfolio Management
To understand further the difference between project management, program management, and project portfolio management, take note of the following examples:
1. Software Development
The development of software constitutes an individual project, and its launching corresponds to another separate project. Collectively, however, software development and product launching can be subjected to program management because both projects are interdependent. The development of related software, such as mobile games, for example, can also be subjected to program management. All other projects within the firm can fall under project portfolio management nonetheless.
2. Oil Production
Examples of individual projects within a particular oil and gas company are oil or gas exploration, specific drilling activities, and the construction of facilities. All of these projects can also fall under program management if they share similar geographic and/or chronological characteristics. All other projects related to oil and gas exploration and production or upstream to downstream oil and gas activities across a larger geographic context can fall under project portfolio management.
3. Construction
The construction of a single building by a construction company can constitute an entire program. However, directing plumbing and sewage requirements, plotting and installing electrical and communication wires, and interior designing, among others can correspond to individual projects. The procurement of materials can also correspond to an individual project. All other construction projects and programs of the construction company occurring in different places can fall under project portfolio management.
