On one view, projects deliver outputs, discrete parcels or "chunks" of change; programs create outcomes. On this view, a project might deliver a new factory, hospital or IT system. By combining these projects with other deliverables and changes, their programs might deliver increased income from a new product, shorter waiting lists at the hospital or reduced operating costs due to improved technology.
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The other view is that a program is nothing more than either a large project or a set (or portfolio) of projects. On this second view, the point of having a program is to exploit economies of scale and to reduce coordination costs and risks. The project manager's job is to ensure that their project succeeds. The program manager, on the other hand, may not care about individual projects, but is concerned with the aggregate result or end-state.
For example, in a financial institution a program may include one project that is designed to take advantage of a rising market, and another to protect against the downside of a falling market. These projects are opposites with respect to their success conditions, but they fit together in the same program. |
According to the view that programs deliver outcomes but projects deliver outputs, program management is concerned with doing the right projects. The program manager has been described as 'playing chess' and keeping the overview in mind, with the pieces to be used or sacrificed being the projects. In contrast, project management is about doing projects right. And also according to this view, successful projects deliver on time, to budget and to specification, whereas successful programs deliver long term improvements to an organization. Improvements are usually identified through benefits. An organization should select the group of programs that most take it towards its strategic aims while remaining within its capacity to deliver the changes. On the other hand, the view that programs are simply large projects or a set of projects allows that a program may need to deliver tangible benefits quickly.
Consider the following set of projects:
Consider the following set of projects:
- Design of the new product - this delivers a design specification,
- Modifications to the production line or factory - delivers a manufacturing capability,
- Marketing - delivers advertisements, brochures and pamphlets,
- Staff training - delivers staff trained to sell and support the new product