1/11/2020 The Difference Between Projects and Programs | With Example
The Difference Between a Project
and a Program
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We frequently receive emails enquiring into the difference between projects
and programs (or programmes
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as they’re w
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referred
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the UK). Many of
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-
those who email us are under the impression that a program is simply a
really big project, and that there are many similarities between projects and
programs.
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Nothing could be further from the truth! But in order to understand the difference we need to
begin by understanding the definition of projects and programs.
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1/11/2020 The Difference Between Projects and Programs | With Example
Defining a Project
According to PRINCE2, a Project is defined as “A temporary organization that is created for
the purpose of delivering one or more business products according to a specified Business
Case”.
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Defining of a Program
As posted in our very first article, a Program is defined as “A group of related projects
managed in a coordinated way to obtain
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them individually”.
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Clear? Well, if you’re like most people, then probably not, so let’s break it down. The table
below highlights the key differences between projects vs programs:
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Programs Projects
Program success is measured in terms of Project success is measured in
business benefit, ROI, or new capabilities. terms of producing specific
Benefits (outcomes) are managed using a deliverables in terms of time,
benefits realisation plan. quality, and cost.
Because they are concerned with benefits and Because are more concerned with
not deliverables, programs are more strategic deliverables than benefits they are
than programs – they are concerned with “doing concerned with tactics – “doing
the right things”. things right”.
Programs have a wide scope, focussing on The scope of projects is tight –
benefits, and may have to change scope they are limited to producing
dramatically during their execution to meet the deliverables.
changing needs of the organisation.
Programs will typically span multiple functional Projects are typically confined to a
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units within an organisation. single functional unit (vertical unit)
within an organisation.
Programs are typically executed over a much Projects are typically of a shorter
longer timescale than projects, often several duration than programs, often just
years. a few weeks, and by definition
have a finite duration.
Another way to understand the difference between projects and programs is to look at how
the roles of a Project Manager and Program Manager differ. Again, this is broken down by
project vs program:
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1/11/2020 The Difference Between Projects and Programs | With Example
Program Manager Project Manager
Program Managers create high-level plans used to Project Managers perform
provide guidance to projects. Detailed plans are detailed planning to manage
created from this guidance by the Project Managers. delivery of the products of the
Project.
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Program success is measured in terms of business Project success is measured
benefit, ROI, or new capabilities. in terms of budget, time, and
scope delivered.
Focus is on leadership, as Program Managers Focus is on management of
manage managers. Program Managers need to the people (specialists and
facilitate and manage political aspects, relationships, technicians) involved to
and conflict resolution. deliver the product.
Program Managers manage managers. Project Managers manage
technical people.
Program managers monitor and control projects. Project Managers monitor and
control tasks.
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Programs and Projects and Portfolio
The diagram below shows a simplified view of how projects and programs fit within the
hierarchy of a business.
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Think of diagram as showing the people running the business at the top of the triangle – the
CEO and board. At the bottom of the triangle we have the individual specialists who are
working as part of a project.
At the top of the diagram we have the Business Level where the board run the business.
People at this level are concerned with, amongst other things, setting strategic direction to
realise the vision, and managing a portfolio of programs to move towards the vision.
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The next level in the diagram is the Program Level. Here a program can initiate and control
multiple projects to realise benefits. Project’s could also be cancelled by the program if it was
felt they wouldn’t be the best way to realise the needed benefits due to a change in the
business environment.
Finally, we reach the Project Level. Here projects are initiated by the Program Level (or in
smaller organisations without a program level, directly by the business level). Projects have a
defined scope (set of deliverables) and must work efficiently to deliver these to time, budget,
and quality constraints. = Share q Tweet w Share - Share m Pin
This diagram also highlights the difference between the project and program and portfolio
levels of management. The Business Level is responsible for managing a change portfolio,
essentially a number of programs. Within the portfolio each program is responsible for
managing a number of projects.
Difference between Projects and
Programs: An Example
To make the difference between projects and programs more concrete let’s look at a practica
example of the difference between projects and programs. In this case we’re going to be
building a mobile phone.
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1/11/2020 The Difference Between Projects and Programs | With Example
In our example a software project exists concerned with the operating system of the device –
making sure it’s updated so that it works with the new hardware, as well as making updates to
some key applications. The project will aim to deliver the operating system and applications
on time, on budget, and to the required quality level.
The program that sits above this project will be much more broad in scope. It’s targeted with
delivering a mobile phone that maximises profit for the business. As such our software
projects will be just one of the projects controlled by the program.
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Other projects could include: Go To Market, Hardware, Tooling, Legal, Business Affairs,
Support.
Let’s quickly describe that each of these projects might be responsible for:
Project Task
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1/11/2020 The Difference Between Projects and Programs | With Example
Go To Project concerned with marketing creation, working with marketing
Market partners, and selling the devices into the countries with the biggest return
(GTM) on investment.
Hardware Responsible for creating the new hardware for the phone.
Tooling Responsible for setting up the factory that will produce the devices, along
with ensuring the supply of raw materials to make the phone is secured.
Legal Responsible for ensuring that all laws have been complied with or that a
plan exists where this hasn’t been possible.
Business Responsible for all 3rd party deals needed for a successful launch, for
Affairs example, commercial deals with network operators.
Support Responsible for ensuring the device contains the right support materials,
and that the
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calls caused when the device is launched.
Software As discussed above.
In fact, some of these projects may be so large and complex that they themselves may be
programs. A good candidate for this in our example is the Go To Market, but for the purposes
of this example we’re going to assume it’s a project.
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One of the key jobs of the program is to manage dependencies between projects, for example
the program must coordinate between the Tooling project and the Go To Market project to
ensure alignment around the number of devices that the factory must produce to meet marke
demand. This will obviously change over time and requires careful coordination so there isn’t
over or under supply, both of which would result in a reduced return on investment.
The major difference between projects and programs is usually that projects are concerned
with producing deliverables, whereas programs are concerned with delivering business
outcomes.
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1/11/2020 The Difference Between Projects and Programs | With Example
There are of course some similarities between projects and programs, namely that they are
both concerned with change, that is the creation of something new, and both require the use
of a team to get things done. But that is really where the similarities between projects and
programs end.
Conclusion
This article provides several ways to think about the difference between projects and
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programs, but in very simple terms youq can think of the major difference projects and
programs as being that programs are concerned with doing the right things, and projects are
concerned with doing things right.
If you enjoyed this article then don’t forget to sign up to the EPM newsletter for regular advice
tips and information that will help develop your project or programme management skills.
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1/11/2020 The Difference Between Projects and Programs | With Example
Kate Edwards says
I wasn’t sure of the difference between a project manager and a program
manager, I now see that they are significantly different. There isn’t much
information on the web about it so it was good to find you. Thanks!
Dave W Farthing says
The table of differences is succinct and very useful. I wonder if there’s a
difference in the timescales involved? For example, programme managers are
typically planning for several years hence, whereas a project manager is
typically planning for the next few months (maybe at most up to a year or two).
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Denis says
That’s a good point Dave, thanks for the feedback – I’ve updated the post.
Denis
Rajashree says
Hi
Very nice article.
During program execution multiple projects are planned and executed , some
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1/11/2020 The Difference Between Projects and Programs | With Example
of them terminated before time. It is possible that full/part of the deliverables
are not actually get utilized in program eg prototype.
Denis says
Hi Raj,
Thanks for the comment. I’m not sure I understand your question though! You
can email me and I’ll try to help.
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rakhshanda =
says
Thanks for providing such a comprehensive information…. article was full of
breadth.
Abhishek says
Hi Denis,
I was looking for info on program management on web and found very few and
shallow pieces. Your articles are indeed in-depth and interesting ones.
I’m budding program manager looking for program manager role interview
questions (definitely with some answers- may be scenario based or based
upon experience) so that I can make myself competent for program manager
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1/11/2020 The Difference Between Projects and Programs | With Example
interviews with the little program management experience I have at hand.
I’m in the process of upgrading my role and need to make a breakthrough to
get a project with program manager role.
Appreciate all your help in advance.
Comments are closed
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