Managing projects is at the heart of all business endeavors. Finding suitable project management software is difficult if you aren’t aware of the correct terminology. With numerous interdependencies and parallel operations, dealing with program management vs. project management vs. portfolio management can be baffling.

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Program and portfolio management are closely related to project management. However, there’s a hierarchy you need to understand to differentiate the three concepts. While projects are independent initiatives with short-term objectives, programs focus on overarching goals and missions.

Portfolios in project management refer to groups of projects and programs while including project-related activities and responsibilities. They establish centralized governance and oversight for projects and programs while standardizing processes.

Article Roadmap:

• What Is Program Management?
• What Is Project Management?
• What Is Portfolio Management?
• Three Tiers of a Hierarchy
• Role of Program Managers
• Role of Project Managers
• Program Manager vs. Project Manager vs. Portfolio Manager
• Last Thoughts

What Is Program Management?

Program management is the practice of managing several ongoing projects at once. It involves combining a group of initiatives to accomplish shared business goals. This approach breaks project silos while avoiding pitfalls.

According to PMI, program management is “a group of related projects managed in a coordinated manner to obtain benefits not available from managing them individually.” It adds, “Organizations with mature program management are far more successful than those without it.”

Programs comprise distinct projects across multiple teams with different managers working towards the same strategic goal. For instance, eCommerce businesses can have several independent yet interdependent initiatives to enhance customer retention.

More than just a group of related tasks, program management facilitates strategic execution by converging multiple teams and individuals for a shared purpose. While project management is about managing individual initiatives and deadlines, programs focus on continuous improvement, strategic planning and value realization.

Programs offer a bird’s eye view into several aligned projects to optimize organizational resources while minimizing conflicts that cause budget overshoots and delays. Bigger teams comprising numerous employees and distributed tasks typically handle programs due to their large size.

Roadmaps are essential tools that teams employ to convert organizational vision into strategic plans. They define program timelines, releases and milestones while providing the visual ability to communicate and justify plans.

Program management software increases visibility while simplifying feedback and follow-ups.

Successful programs:

• Have fluid deadlines due to enormous scope and longevity.
• Assemble interdependent deliverables that change with evolving business needs.
• Optimize resources through project alignment while achieving accuracy, efficiency and reliability.
• Unlock new capabilities for long-term organizational benefits.

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What Is Project Management?

Project management is an endeavor to plan, coordinate and oversee initiatives from beginning to end. PMI defines project management as the “use of specific knowledge, skills, tools and techniques to deliver something of value to people.”

“The development of software for an improved business process, the construction of a building, the relief effort after a natural disaster, the expansion of sales into a new geographic market—these are all examples of projects,” it adds.

Projects are finite with a defined beginning and end and can vary in scope and size. Project management basics include managing initiatives from conception to outcome delivery, like designing an application, managing a product or service and event management.

Project scheduling and planning are crucial for managing projects. These steps define the budget, timelines and objectives needed to keep everyone on the same page while focusing on goals.

Apart from individual task completion and tracking, project management also includes managing resources and providing the team with the necessary tools and equipment to accomplish tasks within deadlines.

The practice has advanced in the modern-day scenario. According to a recent survey, 52% of projects have a scoping document, and 58% follow a defined methodology to improve success rates.

Projects are:

• A set of tasks with clear deliverables and competition deadlines.
• Single work units for creating, reviewing or updating documents, processes and outcomes.
• Limited to a specific output for a predefined scope.
• Known to improve efficiency, quality and customer satisfaction while managing costs.

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What Is Project Portfolio Management?

Project portfolio management (PPM) manages proposals, projects and programs to accomplish broader business initiatives. It offers a high-level picture of budget and resource allocation for all organizational programs and projects.

According to PMI, portfolio management bridges gaps between strategy and implementation. It aims to balance change management and possible return on investments. The practice treats projects as means to achieve corporate goals rather than individual initiatives.

The project program portfolio is more strategic and goal-driven than program management. The approach prepares organizations for future projects by providing insights for making intelligent investments. PPM processes help identify gaps in the current project portfolio or find existing projects that can hamper completing a future one.

Gantt charts organize tasks by months or weeks while tracking project milestones.

It helps answer questions like resource and budget availability to take up new initiatives, possible project interferences or projects aligning with business goals. PPM results in strategic plans prioritizing technology, resource and work decisions while driving transformation programs.

Three Tiers of a Hierarchy

As we discussed above, projects, programs and portfolios form three tiers of a hierarchy. Program management provides a better overview than project management, while portfolio management offers a higher perspective over program management. Let’s get down into some specifics:

Program Management vs. Project Management

People often use program and project management interchangeably. However, they differ significantly in their organizational contribution.

Project management has a defined conception and end as it focuses on deliverables and less on business tactics. It involves leading teams to achieve specific goals like developing a new application or fixing bugs. The approach delivers value to carry forward programs incrementally.

Program management is the practice of managing multiple, interrelated projects. Since they are strategic initiatives, they continue for the long term while driving organizational change.

Regarding program management vs. project management, there’s a difference in the number of projects. Project management is about an individual initiative, while program management involves multiple projects.

Additionally, program and portfolio management are more strategically inclined. Both involve carefully coordinating projects and programs that meet organizational strategies rather than individual tactics. They’re ongoing processes with no definitive end.

Project managers handle individual projects while employees perform the tasks assigned. However, senior professionals or a project management office (PMO) manage programs.

Portfolio Management vs. Program Management

Program vs. portfolio management is tough to discern, but there are differences between the two practices. While program management focuses on the strategy and implementation of similar projects, portfolio management coordinates with different projects within programs and their movement towards specific goals.

Managing programs involves efficient resource management to reduce friction while increasing performance and productivity. On the other hand, portfolio management identifies and prioritizes projects on benefits while authorizing completion.

Programs have smaller scope and objectives than portfolios, which focus on future projects, overall company goals, and budget and program risks.

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Role of Program Managers

Program managers participate in strategic discussions, handle deliverables and mitigate risks. They resolve or connect with people that can resolve conflicts that hamper strategic objectives. They may perform some of the following tasks daily:

Manage Programs

They are responsible for the smooth functioning of programs. They manage resources and budgets along with project managers while defining controls and operational parameters.

They also maintain fundamental program components established by team charters and documents.

Mitigate Risks

These professionals should be able to mitigate risks that obstruct project progress or outcomes. Risks can include slipping project schedules, shifting specifications or additional stakeholders. Program managers can take remedial measures to reduce portfolio risks.

Clarify Processes

Operating models or processes help teams work towards common goals. Program managers optimize operating models to improve success rates and reduce risks. They establish communication channels, identify goals, devise reporting methods and set priorities across programs.

Engage With Stakeholders

Stakeholder engagement is necessary to understand goals in a broader context. Program managers can effectively guide project teams by partnering with key stakeholders. Continuous engagement and conversations provide crucial insights into the overall project landscape.

Assess Portfolios

Program managers connect with teams to identify improvement and risk mitigation opportunities. They stay connected and engaged with project teams to support project managers while working towards common goals.

Support Decisions

These professionals support decision-making, including compiling background information, conducting comparative analyses and heading crucial meetings, as per their strengths. They review outcomes to locate improvement opportunities in processes, systems and results.

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Role of Project Managers

Project managers focus on individual initiatives with defined goals, so there’s less room for ambiguity than program managers. They track deliverables to ascertain project progress within time and budget.

They monitor existing tasks, discover new work and identify resources for project teams. They create stakeholder management and communication plans while devising ways to achieve specific milestones. Project managers also make sure that deliverables meet the established standards.

Program Manager vs. Project Manager vs. Portfolio Manager

Now that we know the roles and responsibilities of program and project managers, let’s see how they compare with each other and portfolio managers.

Program managers lead cross-functional programs from shaping approaches to the delivery of desired outcomes. They define cross-organizational roadmaps, manage project interdependencies and prioritize budgets while meeting program goals.

They manage strategic initiatives across departments and report to a Strategic Planning Office or an Enterprise PMO.

Project managers define project schedule, scope and approvals while managing resources, budgets and risks. They track task status and project progress while updating employees and stakeholders.

Portfolio managers leverage investment lifecycles, projects, programs and investments to achieve company goals efficiently. They optimize project portfolios to balance the demand against capacity while aligning plans and resources for execution.

They can manage different projects like a software implementation program along with a content marketing program. While these two programs may not have much overlap in terms of resources, it’s still important to consider them together when planning for the future. They can also manage programs in addition to a project or even multiple portfolios.

Program, project and portfolio managers work within a PMO in some organizations. The PMO defines and sets standards for managing projects within the organization.

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Last Thoughts

You can implement software to manage projects according to your company’s requirements. Though project, program and portfolio management are distinct initiative management efforts, a single solution can perform it all.

Many project management software vendors offer all-in-one solutions that allow businesses to handle everything from the most trivial task to company budgets and reports.

PMO software is the best tool for managing every level of project management. Some valuable features include real-time collaboration, document management, finance management and reporting/forecasting.

Check out our project management software requirements template if you need help determining the capabilities you need from PMO software.

What methods do you use to manage your company’s projects? Do you use project management, program management, portfolio management or possibly all three? Let us know with a comment below!