Project Management

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Difference between Project and Program Management

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Bjarne Cronfeld Global Manager Project Management Training| GEA Process Engineering A/S Soeborg, Denmark
Can anyone help me with some good examples of the differences between Project and Program Management?
In our company we have a nice and interesting discussion and find that there are grey zones.
We run very large projects delivering whole plants to our customers. Those projects often involves deliveries from a number of sub-suppliers, also internal. Can this be run as a program?
We also have internal programs e.g. rolling out ERP system to subsidiaries globally, will that be a project?
Can you help us a step further in this discussion?
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Kevin Coleman Subject Matter Expert, Author, Speaker and Strategic Advisor| - Insights Pa, United States
Most of my clients treat PROGRAMS as a component to achieve a strategic goal and a PROJECTS are initiatives executed to achieve that strategic goal.
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Bob Cunningham West Boylston, Ma, United States
At the risk of flogging a dead horse, I have been thinking further about this question - and more specifically some of the other answers that have been given.

I have seen several terms which have some amount of overlap and are frequently confused (especially by people who aren't any of these):
- Project Manager
- Product Manager
- Portfolio Manager
- Program Manager

Many of the answers for "what is program management" seem to me more of a "portfolio management" than for programs. So how would people describe the difference between program management and portfolio management?

-Bob C.
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Thomas Walenta Global Project Economy Expert Hackenheim, Germany
Bob,

good observation and question.

A phenomenological reply: Every organization is doing portfolio management (by selecting the work they want to use their resources on).

Program management is a more conscious construction to create value (thru benefits delivered). If you don’t do it you do not do it.

Oh yes, there are sophisticated ways to do portfolio management and some of them use use concepts e.g. from program management.

Thomas
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Kik Piney Consultant| PROjects-BeneFITS Mougins, France
My reply refers to programs in the context of "project program management", in contrast to the use of the same word to describe an ongoing commitment to a specific area or client.

In my context I find it useful to consider the mindsets of the relevant managers:
* a portfolio manager has an investor mindset, thinks strategically, and reasons in terms of return on investment from the chosen set of component programs and projects
* a program manager has a business management mindset and thinks in terms of benefit value-added due to the application and interactions between the capabilities delivered by the component projects or sub-programs.
* a project manager has a creator mindset thinks in terms of capability delivery resulting from the new facilities that will be created by the project

Each requires a different focus but these are complementary and each domain needs to understand the relevant goals of the other two.

In brief, portfolio managers focus on long term OUTLOOK, program managers think OUTCOME and project managers are responsible for the project's OUTPUT.
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1 reply by Thomas Walenta
Jun 24, 2021 9:25 AM
Thomas Walenta
...
Kik

great perspective. Indeed, the mindsets and hence behaviors and perceptions are quite different.

I also like your simple framing of output - outcomes - outlook.

Chapeau.
Thomas
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Thomas Walenta Global Project Economy Expert Hackenheim, Germany
Jun 24, 2021 6:29 AM
Replying to Kik Piney
...
My reply refers to programs in the context of "project program management", in contrast to the use of the same word to describe an ongoing commitment to a specific area or client.

In my context I find it useful to consider the mindsets of the relevant managers:
* a portfolio manager has an investor mindset, thinks strategically, and reasons in terms of return on investment from the chosen set of component programs and projects
* a program manager has a business management mindset and thinks in terms of benefit value-added due to the application and interactions between the capabilities delivered by the component projects or sub-programs.
* a project manager has a creator mindset thinks in terms of capability delivery resulting from the new facilities that will be created by the project

Each requires a different focus but these are complementary and each domain needs to understand the relevant goals of the other two.

In brief, portfolio managers focus on long term OUTLOOK, program managers think OUTCOME and project managers are responsible for the project's OUTPUT.
Kik

great perspective. Indeed, the mindsets and hence behaviors and perceptions are quite different.

I also like your simple framing of output - outcomes - outlook.

Chapeau.
Thomas
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