An important difference between program and project management is the ability to manage uncertainties that are inherent in the life of programs. Programs frequently take place over a period of several years. There will always be unforeseen opportunities and potential risks to overcome as changes in social, political, economic, or geographic events impact program deliverables.
Changes in funding priorities, commitments, policies, laws and beneficiary’s needs can all affect program resources, tactics and objectives. The Program Manager must identify, assess, manage and control risks created by these uncertainties and harness newly available opportunities, while also taking into account potential impacts (positive and negative) for beneficiaries.
Projects, Programs, and Portfolio Management
In the development sector the terms ‘project’, ‘program’, and ‘portfolio’ are used frequently but not always with rigor or precision. Sometimes the terms are even used interchangeably. In the absence of a consistent and precise definition for these terms, the roles and responsibilities of the Program Manager as they relate to each of these levels of management can be unclear and subject to misinterpretation.
Here, we outline the definitions of the terms project, program and portfolio as they are largely agreed across the management literature:
Project Management
According the Project Management Institute (PMI) and Project DPro, a project is defined as “a temporary endeavor undertaken to create a unique product, service, or result.” Projects deliver integrated outputs (deliverables), which then result in better outcomes (results) for communities and other stakeholders (such as donors). Projects are time-bound and focus on a requirement to deliver specific benefits forcommunities in ways that are cost-effective and measurable.
Project Management is the discipline of planning, organizing and managing resources to bring about the successful delivery of specific project goals, outcomes and outputs. The primary challenge of project management is to achieve each of these, while managing project constraints related to scope, budget, schedule and quality. Projects may operate with varying levels of control and governance, with highlevel Project Managers often having responsibility for managing sizeable budgets.
Program Management
Programs are groups of related projects and activities (sometimes referred to as ‘component parts of a program’) that are managed in a coordinated way to achieve an impact that is greater than if they were managed individually. In other words, the whole (the benefit of the program) is greater than the sum of its parts (the projects, activities and tasks). Development organizations often organize projects into programs to deliver outcomes that address a broad range of needs and achieve exponential benefits for the communities in which they work.
Most programs are managed at a country level under the supervision of a Program Manager and the leadership of a Country Director, Head of Programs or similar role (aka Program Owner). Some programs are devised to deliver global goals and these are more likely to managed at a regional or headquarter level. Not all development organizations have clearly defined hierarchies, opting instead for a flatter structure with shared responsibilities, in which case program management responsibilities are defined and shared as a team.
Programs, unlike projects, are generally implemented through a centralized management system in which groups of projects are coordinated to achieve a program’s overall strategic objectives and benefits. This approach is particularly important in the development sector because it enables NGOs to achieve economies of scale and realize incremental change that would not be possible if projects were managed separately.
You can learn more about Program Management downloading the Program DPro guide for free:
