What is the difference between the program and the project at school. What is the difference between a project and a program

There is some misunderstanding and therefore confusing use 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 a portfolio and a program are mistakenly used instead of each other. This article will help you understand the main 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 have priorities depending on their business goals. Beneath it is program management, which contains many related projects 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 characterized by alignment 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. The overview is provided by the implementation of the program and the project, so portfolio adjustments can be made if needed. Strategic changes can also trigger portfolio adjustments.

Program management

A key feature of program management is business support and funding. By 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, by and large, measured by the achievement of those benefits. Programs may also have "benefit streams", or sets of interrelated benefits, such as increased R&D capacity combined with increased market penetration, that intersect with many of the organization's functions. Since programs, which by their nature are made up of many projects, run through functions in an organization, they have all the elements of a business system and hence are management oriented.

Project management

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

Now that you already know the basic differences between portfolio management, program management, and projects, each organization should specialize in implementing these three processes. Some of the key factors, and how they will affect implementation choices, are listed below:

Industry: The industry provides an understanding of the stability and permanence of operations. Some industries, such as pharmaceuticals, are driven by product life cycles, although there are longer cycles that involve substantial regulatory production. Consumer electronics companies are driven by shorter life cycles and rapidly advancing technologies, with little stabilization seen. Construction companies are highly focused on projects and work with very stable technologies and products.
Organization size A: In general, a larger size requires more formalities. Without a structure of relationships between strategies, portfolio, program and project management can become a bit disjointed. The two focus points show the existence of thoughtful organizational structures for portfolio, program and project management, and a focus on building strong links between them for the flow of information, communication and collaboration.
Volume of transactions: A more narrowly defined operational capability present in manufacturing or sales based organizations will tend to be less formal and information will flow freely between portfolio management processes, programs and projects. Organizations that are well integrated horizontally, containing well-developed core competencies in research, marketing, manufacturing, supply chain, etc., will have inherent divisions that need to be controlled. This will make the control of the program more challenging, as these restrictions will be violated.
Strategies: Like various operational considerations, the strategy will affect the organization of portfolio, program and project management depending on how complex the strategy is. A key thought not mentioned above is strategic alliances, which greatly influence how these processes are well structured and controlled.

There are standards for project portfolio management, programs and projects, and clear definitions can be found among them. The World Project Management Institute (PMI) has developed and published the following standards (free of charge 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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Investment planning is the key to success for any investor. At the same time, it is important that planning is comprehensive and covers all aspects of the proposed activity.

The difference between a business plan and an investment project is that the former often acts as one of the documents of the latter, that is, its integral part. Very often, when implementing a small or short-term investment project, only a business plan can be drawn up.

In the general case, the difference from a business plan is that an investment project includes a voluminous justification for a wide range of tasks, including:

commercial;
production;
economic;
social, etc.

On the other hand, a business plan can be viewed as a program of activities for a project that is in operation or is just being developed.

The business plan states:

mission of the organization;
organization goals;
tasks of the organization;
organization resources;
task executors;
key areas of work.

The most important task of the business plan is planning and forecasting the further development of the organization in a specific time period. And now let's try to consider both documents in more detail.

Investment project

An investment project is a complex set of activities aimed at creating new products, services, modernizing or reconstructing existing industries in order to obtain economic benefits.

The main purpose of the investment project is to receive investments. An investment project is a document developed at the project concept stage, that is, at the very first stage of the project life cycle. Often, an investment project does not make a detailed plan of financial investments, but simply lays down a certain reserve of financial resources, on average, in the amount of 10% -20% of the cost of the entire project.

Advice! The costs of an investment project can be calculated with a margin, but income must be carefully justified and calculated as accurately as possible.

Typically, an investment project includes a set of documents that define the goal and a list of planned actions aimed at realizing this goal. No less important is the study of all possible negative manifestations of external and internal factors that can harm the project and develop mechanisms for solving predictable problems.

The internal factors influencing the development of an investment project include:

attitude of management to decision-making at all stages of project implementation;
potential and actual production capabilities of the enterprise;
the current financial condition of the enterprise and its ability to finance the investment project;
the level of development of infrastructural capabilities of the organization.

Influencing external factors include:

the level of political stability;
the level of economic stability;
possible changes in the regulatory framework;
the level of scientific and technological development;
ecological problems.

The investment project is of a large-scale nature and often its implementation requires huge funds and several business plans, for each private object, which ultimately makes up one big whole.

Business plan

Recently, it has become an independent document and is not necessarily associated with an investment project.

What is the difference between an investment project and a business plan:

The business plan defines the practical actions related to the implementation of the investment project. In general, the structure of a business plan depends on the goals, objectives and requirements.
The business plan begins with a summary of the project, which gives a brief description of the company and indicates the main positive aspects of the business idea.
A mandatory item is a description of the enterprise, its products.
The marketing plan analyzes the strengths and weaknesses of the organization, the strategy used and proposed for promoting goods.
The production plan of the enterprise contains a description of the main technological processes of production.
The most important section of the business plan is the financial plan, which reflects the financial results of the enterprise, the proposed sources of financing, loan repayment schedules and other useful information.
Any business plan must contain risks (see) and possible losses from them.
The appendix usually contains additional documents that allow you to get a more complete picture of the project.

Advice! It is not worth saving money when developing an investment project and a business plan. A good project is expensive, but allows you to get a greater return on invested capital due to a more thorough study of all project parameters by specialists. To get a good profit, you need to invest a significant amount. Quality investments bring quality returns.

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

Definition

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 the availability of deadlines, resources, mission. The implementation of the project can be calculated quantitatively, as well as qualitatively (the goals set are achieved or failed).

Program- a group of projects united by a single goal, management, resources, mission. Their result is a qualitative change in the state caused by the implementation of the planned tasks. The healthcare development program involves the implementation of a number of projects: the construction of hospitals, research, staff training and much more.

Comparison

So, the most important difference between these concepts is their scale. A program is a series of projects united by one goal. It is not measured quantitatively, but qualitatively and involves a change in state. As a rule, project implementation deadlines are strictly defined, and their postponement will inevitably affect the implementation of the program.

There are also differences in the complexity of the implementation of the tasks. The implementation of the project is seen as simpler, since for success it is enough to achieve the 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. Not always interconnected projects and their successful implementation lead to a change in state, and the result may turn out to be completely unpredictable.

Findings site

The scope of the concept. A program is a broader concept that includes a set of projects.
duration. The terms for the implementation of the program are broad, those of the project are 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 can be successful, and the resulting effect can exceed all expectations.
Complexity. The implementation of the program is more difficult than the implementation of the project, since all components of the task need to be coordinated.

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 the availability of deadlines, resources, mission. The implementation of the project can be calculated quantitatively, as well as qualitatively (the goals set are achieved or failed).
Program- a group of projects united by a single goal, management, resources, mission. Their result is a qualitative change in the state caused by the implementation of the planned tasks. The healthcare development program involves the implementation of a number of projects: the construction of hospitals, research, staff training and much more.

The difference between a project and a program

The difference between a project and a program is as follows:

The scope of the concept. A program is a broader concept that includes a set of projects.
duration. The terms for the implementation of the program are broad, those of the project are 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 can be successful, and the resulting effect can exceed all expectations.
Complexity. The implementation of the program is more difficult than the implementation of the project, since all components of the task need to be coordinated.