What is the Difference between Projects and Programs?

When I talk to Project and Business Managers about program management they often ask questions like:

• "Are programs just big projects and shouldn't we manage them like that?" or
• "What is the difference between projects and programs?"

The PMI definitions of a Project and a Program are:

• A project is a temporary endeavour undertaken to create a unique product, service or result such as implementation of a solution, infrastructure etc.
• A Program is a group of related projects managed in a coordinated way to obtain benefits and control not available from managing them individually. Programs may include elements of related work outside the scope of the discrete projects in the program (such as transition to operations and then ongoing until the benefits are realised).

The PMI definitions for Project and Program Management are:

• Project Management is the application of knowledge skills, tools and techniques to project activities to meet the project requirements.
• Program Management is the centralised coordinated management of a program to achieve the programs strategic objectives and expected benefits.

The diagram below illustrates the context of Programs as a vehicle for delivering strategy and consequently program management.


Another key difference between program's and projects is the focus of the management.
Program and project managers differ in their perspective, the lists below highlight the differences.

• Projects have a narrow scope with specific deliverables. Programs have a wide scope that may have to change to meet the benefit expectations of the organization.
• The project manager tries to keep change to a minimum. Program managers have to expect even embrace change.
• Project success is measured by budget, on time, and products delivered to specification. Progam success is measured in terms of Return On Investment (ROI), new capabilities, benefit delivery
• Project leadership style focuses on task delivery and directive in order to meet the success criteria. Program leadership style focuses on managing relationships, conflict resolution. Program manager’s need to facilitate and manage the political aspects of the stakeholder management.
• Project managers manage technicians, specialists etc... Program managers manage project managers
• Project managers are a team player motivating by knowledge and skills. Program managers are leaders providing vision and leadership
• Project managers conduct detailed planning to manage the delivery the products of the project. Program managers create high level plans providing guidance to projects where detailed plans are created.
• Project managers monitor and controls tasks and the work of producing the projects products. Program managers monitor projects and ongoing work through governance structures.

The basic difference is that programs are responsible for delivering outcomes (benefits, new capabilities) whereas projects are primarily responsible for delivering solutions or products that enable the outcsomes to be achieved.

Programs are a means of achieving organizational goals and objectives, often in the context of a strategic plan. Projects are a means of achieving tactical goals and objectives.
These fundamental differences mean that managing a program is not just BIG PROJECT MANAGEMENT.

Project Early Warning System

I have written several PM articles for AllPM.com and early this year the editor emailed me and asked if I could contribute something in January to help them through the slow month. I agreed and wrote an article on issue management.

Unfortunately they get the copyright of articles on the web, so rather than duplicating the article I thought a link would help. Also it saves me having to write a entry :~)

The title on this entry is linked to the article in the January edition of Allpm.com.
Click on the title to go to the article.

Foundation for Project Success

Successful project delivery seems to elude many project managers both professional and amatuer. This post hopes to promote some discussion on how the success of a project is shaped during its initiation.

PRINCE2 (UK Project Management Standard) starts by defining Projects as:

• 'management environment that is created for the purpose of delivering one or more business products according to a specified business case'

Another definition provided in the PRINCE2 manual defines a project as:

• 'a temporary organization that is needed to produce a unique and predefined outcome or result at a pre-specified time using predetermined resourcs'

PMI(Project Management Institute) defines a project as:

• 'A temporary endeavour undertaken to create a unique product, service or result'

Either of these standards provide definitions that focus on the temporary nature and the unique product or outcome. This temporary nature and uniqueness often requires people who are going to come together temporarily and collaborate to build or achive the unique result.

Instantly we are thinking (well those who are PM minded); how do we identify the people/resources needed, how do I communicate the need to collaborate and ensure they all understand the objectives, scope of the products/results/outcome, the constraints we have to work within such as time, cost and quality?

The simple answer is you need to conduct some sort of pre-project planning and project initiation in order to answer those questions and establish the temporary infrastructure for the team to operate within. What should be included in the pre-project pleanning and project initiation? Rather than re-inventing the wheel lets turn to an establish Project Management Frameworks such as PRINCE2 to provide us with process definitions , inputs, outputs and the guiding principles already.

The Project Management Framework(PMF) should not cover the specialist techniques used to create the technical products or outcomes as this is the job of other methods. The PMF should focus on the management of the project and its resources being involved in carrying out the project tasks and activities.

PRINCE2 is a useful framework because it has been developed to be a PMF within a contract context and many projects are run within contracting context.

PRINCE is an abbreviation of PRojects IN a Controlled Environment. The controlled environment within PRINCE2 extendeds to include a controlled start, controlled progress and controlled closure. This project control is supplemented by the well defined governance structure that provides a controlled project assurance. (The number 2 on PRINCE2 came about when it released version two. This practice was stopped at Version 2.)

Starting Up a Project (SU)

Prince2 has a process called 'Starting Up a Project' to help start build the foundations for the project. The process produces six key elements:

• Designing and appointing the project management team
• Assembling the project brief
• Establishing the project approach
• Establishing the customers quality expectations
• Setting up the project risk log
• and creating the Plan for the Initiation Stage

There are several tips for scaling the process depending on the possible initiation point:

1. In a standalone project then all the steps of the process can be applied.


2. If the project is part of a program they program can pass down the documentation either as a complete project brief or even a project initiation document (project plan in PMI terms). The program management may have already decided the project approach and the risk log could be included in the program risk log. In this case this process can just be a check to whether any more work needs to be done on the start up products.


3. The 3rd possibility is that the project is very small. In such cases the process can be usually be handled in an informal manner, possibly just taking a few minutes. A project manager should avoid the templates and bypass the process going straight to the Initiating a Project (IP) process.

Initiating a Project

This process aims at laying the foundations for the delivery of the project products/outcomes. It follows the Starting Up a project (SU) process within the framework. Its purpose is to draw up the contract between the project board and the project manager and the organization receiving the products so there is a common understanding of:

• The reasons for doing the project
• What key products the project will produce
• How and when these will be delivered and at what cost
• The scope of what is to be done
• Any constraints that apply to the product/outcome
• Any constraints that apply to the project
• Who is involved in project decision making
• How the quality required by the customers will be achieved
• What risks the project will be facing
• How is the project to be controlled through governance structures
• Who will receive what communications
• The production of plans in detail for next stage and in outline for the rest of the project

The PRINCE2 manual provides advice on scalability similar to Starting Up a Project (SU) the advice depends on the trigger and size of the project.

The processes within IP are:

• IP1 - Planning Quality
• IP2 - Planning a Project
• IP3 - Refining the Business Case
• IP4 - Setting up Project Controls
• IP5 - Setting up Project Files
• IP6- Assembling a Project Initiation Document (PID)

Project Governance

Project Governance is the process of developing, communicating, implementing, monitoring, and assuring the policies, procedures, organizational structures, and practices associated with a given project. The result is a framework for efficient and effective decision-making and delivery management focused on achieving project goals in a consistent manner, addressing appropriate risks and stakeholder requirements.

The Project Board is the group responsible for ensuring project goals are achieved and providing support for addressing project risks and issues.

Click on the image to enlarge















Within PRINCE2 there is a process group that the Project Board is responsible for. This process is called Directing a Project (DP) and this process will be discussed in another posting.

Summary

Project initiation provides a firm foundation for a project's success and research by NASA on project planning has shown that project success depends on sound planning during project initiation.

A controlled start depends on establishing the core structures and products that will be used to manage the delivery of the project's products / outcomes. The project initiation is an essential process for all projects however scalability can reduce the tasks from production of documents to review and update when Project Initiation Documents and the associated plans are provided for the project manager to use.

The key to a project's success largely depends on a successful project initiation and the establishment of the project organisation and documents and plans.