Program Management
Projects and Programs are different, and this difference has been ignored or confused by too many people for too long. From the very beginnings of modern project management, the terms have been used interchangeably; for example, the Manhattan Project to create two completely different atom bombs involved numerous major elements such as the construction of factories and the operation of those plants. The Manhattan Project was by all modern definitions a full-blown program of work. This confusion in terms continues in many quarters to the current day.
The publicized failures of a number of so-called major projects, particularly in the Defence and ICT arenas would appear to be caused by the clients attempting to procure a complex program of work (frequently involving significant elements of R&D) as a simple ‘fixed price’ projects in a perversely misguided attempt to offload risk.
This paper will:
• Describe the differences between projects and programs based on the PMI Standards.
• Define the key differences between managing a project and managing a program.
• Focus on setting and managing realistic expectations on the part of key stakeholders for a program compared to a project in terms of expected levels of change and the risk profiles.
• Briefly review the PgMP qualification framework for Program Managers and demonstrate how its structure supports the objective of effective program management.
Introduction
The difference between Projects and Programs has been ignored or confused for too long. At the most basic level, a project is created to deliver a specified output as efficiently as possible (PMI, 2008a). Programs focus on the coordination of a number of related projects and other activities, over time, to deliver outcomes that benefit the organization (PMI 2008b).
At more sophisticated levels, these differing objectives fundamentally alter the management of change, risk, and communication. The challenge facing organizations is to recognize the difference between a project and a program and then apply the optimum management approach. Whilst it is absolutely possible and often desirable to contract a project to an independent third party (eg, the developer of a shopping complex can easily contract the building of the center to a construction company), it is virtually impossible to effectively contract out the program management role, the program manager has to be an integral part of the organization’s strategic business management team.
Despite the best efforts of PMI, OGC and a range of other organizations, the confusion between projects and programs continues in many quarters to the current day. Most disaster relief efforts are described as ‘projects’ when in fact they are an ongoing program of work to realize a benefit (ie, a return to normality). Disaster relief ‘programs’ include projects and elements of operational work and adapt as times and circumstances change. In these circumstances, program management is about maximizing the benefits realized with constrained resources in a changing environment. Project management is focused on the efficient creation of a defined deliverable (eg, re-building a school).
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