Program and project generalities and differences. The main difference between a business plan and an investment project. Difference between program and plan

IN modern world Only the one who is best prepared for the upcoming actions wins. The program and plan are two important parts of project management, the implementation of ideas of which can lead to success of any enterprise. Understanding the difference between them is very important for future leaders who want not just to be a cog in the system, but to competently manage resources and determine their future.

Program– a sequential algorithm of actions, the implementation of which will allow the performer to achieve a certain goal. The program can be computer, election, or work. They all have one thing in common: a set of interrelated activities aimed at achieving the assigned tasks.
Plan– a series of actions united by a single goal and intended to be completed before a certain date. The plan allows you to create a work schedule that disciplines both an individual and a group of people, helping them navigate time and space.

Difference between program and plan

Thus, a program is a broad concept that denotes a strategy for achieving results. Not a single large company or organization whose leader really wants to succeed can do without it. The program is flexible; in order to achieve goals, individual points can be changed and adapted to real conditions. Moreover, it can have several plans executed in parallel.
A plan is an outdated way of implementing project management tasks. It is detailed, and each event has a time frame, but it is far from a fact that completing all tasks will lead to achieving goals.

TheDifference.ru determined that the difference between the program and the plan is as follows:

Breadth of the concept. Program is a broader category that can include multiple plans.
Progressiveness. The program is more flexible than the plan, and it can be adjusted and directed during the implementation process.
Flexibility. Individual program items can be executed independently of each other, with multiple outcomes possible. The plan is always linear, and therefore must be implemented consistently.
Detailing. The program contains only general provisions, goals, and the plan - a detailed elaboration of each step, time frames, resources.
Evaluation of the result. To understand the effectiveness of the plan, it is necessary to compare the planned activities with those actually completed. The effectiveness of the program can only be assessed when the goal is achieved.

It is possible to arrive at the destination only when the course of movement is correctly set, and all participants know where and why they are going. Project and program are categories of Western management, where increased attention is paid to competent planning. How to understand the difference between them and what do the differences affect?

What is a project and program

Project– an interconnected set of activities and processes, the main goal of which is the implementation of a large-scale task. Its main attributes are deadlines, resources, and mission. The implementation of the project can be calculated quantitatively as well as qualitatively (the set goals are achieved or failed).
Program– a group of projects united by a common goal, management, resources, mission. Their result is a qualitative change in state caused by the implementation of planned tasks. The healthcare development program involves the implementation of a number of projects: building hospitals, conducting research, training staff and much more.

Difference between project and program

So, the most important difference between these concepts is their scale. A program is several projects united by one goal. It is measured not quantitatively, but qualitatively and involves a change in state. The deadlines for project implementation, as a rule, are strictly defined, and their postponement will inevitably affect the implementation of the program.
There are also differences in the complexity of implementing the assigned tasks. The implementation of the project seems simpler, since for success it is enough to achieve goals by a certain period of time. The program is just a hypothesis (the fight against alcoholism or drug addiction), which must be confirmed in practice. Interconnected projects and their successful implementation do not always lead to a change in state, and the result may be completely unpredictable.

TheDifference.ru determined that the difference between a project and a program is as follows:

Scope of the concept. A program is a broader concept that includes a set of projects.
Duration. The time frame for implementing the program is broad, the time frame for the project is specific and measurable.
Result. The project is implemented when the planned activities are completed by the specified date. The result of the program is a change in state, an impact on the situation. Thus, even its partial implementation may be successful, and the resulting effect may exceed all expectations.
Complexity. Implementing a program is more difficult than executing a project, since all the tasks involved need to be coordinated.

Indicate the main differences between a project and a program and operational activities, differences between projects and business processes?

The program is a complex of interrelated projects.

A program is a set of projects or a project characterized by the particular complexity of the products created and/or methods for managing its implementation. Main difference project activities from operating activities - this is the time of activity. A project is a temporary undertaking designed to create unique products or results. Operations is a function aimed at continuously performing activities to provide a recurring service or produce the same product.

Projects differ from operational activities in the following ways:

  • · projects have a limited duration, i.e. projects are temporary;
  • · projects have a large number of critical risks;
  • · projects can undergo a large number of significant changes;
  • · a team is usually formed for one project.

A business process is a regularly repeating sequence of interrelated activities (operations, procedures, actions), the implementation of which uses resources external environment, value is created for the consumer and the result is given to him.

Table 1. Differences between projects and business processes

Buisness process

Jobs, interactions, resources, roles.

Habitual, repetitive, limited by approved regulations.

New, changing one-off, heterogeneous, cross-functional

Environment

Familiar, stable

New, changing

Organizational structure

Work is carried out in stable organizational structures Oh

Work is performed in temporarily created structures operating within the project cycle

Limited

Priorities and performance assessment

Reproduction and efficiency are determined by adequacy. intermediate functional results

Achieving the goal, effectiveness is determined by achieving the established final goals

Basics elements of life cycle

Implementation

Planning, implementation, control, completion

Changes

Transforming resources into products

cel. change internal environment in which the project is being implemented

Program– within the framework of project management, this is a sequence of interconnected projects, managing which it becomes possible to centrally coordinate them in order to achieve a degree of controllability and benefits that is not available when managing projects separately.

Some programs may include elements of work related to these programs, but at the same time lying outside the scope of the projects of this program. A project may or may not be included in a program, while a program always contains projects.

The centralized and coordinated management of multiple projects to achieve the company's strategic goals and program benefits is defined as program management. Through achieving common goals and joint functionality projects must be interconnected in the program. Projects that are connected only by the presence of a common client, technology or resource should be regarded as a portfolio of projects.

In program management, it is necessary to focus on the dependencies between projects and the formation of an optimal management approach. The following approaches are used for this:

  • resource restrictions are lifted and/or the program manager seeks to resolve conflicts that affect some projects within the system
  • the organizational/strategic direction is being agreed upon, focused on the goals and objectives of the project and program
  • within the framework of the overall management structure, the program manager resolves issues and manages changes

Program management in the classical sense comes from the field of managing large programs defense complex USA (area of ​​aerospace development - NASA - American National Aeronautics and Space Administration). An experienced manager is appointed to manage the program; in parallel with this appointment, managers are appointed for each project included in this program. Combining interrelated projects into programs is ultimately useful because it becomes possible to manage all resources of the program projects, consolidate data from all projects, develop general approaches, redistribute funding between projects, etc.

Similarities and differences between programs and projects

In some cases, programs do not have their own life cycle, because consist of several projects, each of which has its own life cycle. Programs differ from projects in their longer duration and can have an unlimited duration, because Some program projects are being completed and some are being added. As for the program manager, this is a long-term position, unlike the project manager. Projects within programs and operations within projects are in some cases related to each other in three ways:

  • Through the result of the operation. The end result of a particular activity is the input to another activity in the same or related project.
  • Through a common unit of resources. Assigned resource to certain work will not be able to move on to the next work of this project or a related project until he completes the current work.
  • Through the rate of expenditure of common resources. Projects become dependent on each other when the consumption of some resources exceeds the capabilities of the common pool because... shared resources are ultimately limited.

There is some misunderstanding and therefore confusing usage of terms when it comes to program management. Sometimes a program is called a project. Sometimes a project is called a program. In addition, sometimes the portfolio and the program are mistakenly used instead of each other. This article will help you understand the key differences and identify the unique aspects of portfolio, program, and project management.

In order to begin to distinguish between these concepts, you should imagine a hierarchical pyramid. At the very top of the pyramid is portfolio management, which contains all programs and projects that are prioritized based on their business goals. Below this is program management, which contains many projects that are interrelated as they support specific business goals. Programs contain many projects, but projects can be independent and part of a portfolio. Projects differ from programs in that they are tactical in nature.

Let's explore each concept in more detail:

Portfolio management

One of the key aspects of project portfolio management is that it is a process that is clearly aligned with the direction of the business. Priorities are established through an appropriate optimization process for the organization. Risks and rewards are considered and balanced, and programs are selected based on their alignment with organizational strategy. An overview is provided by program and project implementation so that adaptations of the portfolio can be made if necessary. Strategic changes can also cause portfolio adjustments.

Program management

A key feature of program management is business support and funding. Based on a definition based on decisions made at the portfolio management level, programs are sponsored by business needs. The program takes ownership of the benefits and is essentially measured by the achievement of those benefits. Programs may also have “benefit streams,” or sets of interrelated benefits, such as increased R&D capabilities combined with increased market penetration that cross-cut across multiple functions of the organization. Since programs, which by their nature consist of many projects, flow through functions in an organization, they have all the elements of a business system, therefore they are focused on general management.

Project management

Project management is concerned with delivering capabilities typically defined within a program. Projects are driven by strategies, but they do not have the strategic initiative that programs do. Instead, the project receives input elements, then develops and implements a tactical plan. Monitoring and ultimate measurement of success is often based on tactical considerations such as budget and plan rather than on achieving strategic business goals.

Now that you know the basic differences between portfolio, program, and project management, every organization should specialize in implementing these three processes. Some key factors, and how they will influence the implementation choices made, are given below:

  • Industry: Industry provides insight into stability and consistency of operations. Some industries, such as pharmaceuticals, are moving life cycles goods, although there are longer cycles that involve extensive regulatory proceedings. Consumer electronics companies are moving towards shorter life cycles and faster developing technologies, while a little stabilization is observed. Construction companies highly focused on projects and work with very stable technologies and products.
  • Organization size: All in all, larger size requires more formalities. Without structure in the relationships between strategies, managing portfolios, programs and projects can become a bit disjointed. Two points of focus demonstrate the presence of deliberate organizational structures for portfolio, program and project management, as well as a focus on special attention to building strong connections between them for the flow of information, communication and cooperation.
  • Volume of transactions: The more narrowly defined operational capability present in production or sales based organizations will tend towards less formality and information will flow freely between portfolio, program and project management processes. In organizations that are well integrated horizontally, containing well-developed central competencies in research, marketing, production, supply, etc., there will be inherent divisions that need to be controlled. This will make the program more challenging to manage as these restrictions will be violated.
  • Strategies: Like various operational considerations, strategy will influence the organization of portfolio, program and project management depending on how complex the strategy is. A key point not mentioned above is that strategic alliances have a significant impact on the extent to which these processes are well structured and controlled.

Standards for project portfolio, program and project management exist, and among them you can find clear definitions. The Worldwide Project Management Institute (PMI) has developed and published the following standards (free to its members):

  • The Standard for Portfolio Management
  • The Standard for Program Management
  • A Guide to the Project Management Body of Knowledge (PMBOK) Third Edition, 3rd Edition

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