Many people interchange “program management” with “project management,” assuming, perhaps, that their meanings are basically the same. While the two terms are interrelated, they are vastly different in how they are approached and by whom. The enterprise program management office (EPMO) often leads program management for outcomes aligned with achieving corporate objectives. One of its primary charters
is to orchestrate coordination and interdependencies of cross-enterprise projects comprising the program that together realize strategic goals. Program management enables strategic execution and results in more time on establishing metrics and measuring performance against strategic goals. What is Program Management?According to Gartner, program management is the coordinated planning, management, and execution of multiple related projects that are directed toward the same strategic, business, or organizational objectives. Program management is more than a collection of similar projects or organizing projects under the same umbrella. Effective program management ensures people and teams are focused and collaborating across departments who are working together to achieve a shared strategic vision. Multiple programs run concurrently, each meant to create change in the organization to foster growth through innovation and market expansion, digital transformation, and efficiencies. Executing on strategy is difficult due to some uncertainty. Program managers across the organization focus on ensuring alignment to priorities and shifting as priorities change. Because projects often compete for resources in terms of people and dollars, program management must also balance those resources across projects. Program management enables the organization to fund, prioritize, optimize resource capacity, and manage interdependencies and conflicts. Program managers are viewed as strategy execution leaders and have deep knowledge about current organizational capabilities. Program management thrives in organizations that embrace uncertainty, leveraging continuous planning as a part of their strategic roadmap and portfolio funding process. From idea to delivery, programs are vital to successfully integrating strategy with delivery. Program Management vs Project ManagementProgram management and project management might sound like similar practices, but they are very different. Program management is common in larger, more mature enterprises mainly because the need is greater as organizations scale, and driving change requires more cross-organization coordination. Programs have a set of outcomes to achieve one or more strategic business objectives. There is often dependencies and uncertainty around the work to be done. They cross silos, require alignment of resources, and result in change to the organization. Program management ensures people and teams are focused and collaborating across departments who are working together to achieve a shared strategic vision. Project management refers to the coordination and oversight of a set of tasks completed to produce a result and that result is directly aligned with the program it falls under. Common project management tasks include defining a detailed project plan, managing a project budget, allocating and assigning resources, and generating reports indicating status against schedule and budgets. Projects often have a defined budget, scope, and timeframe to be completed. Projects also have metrics and goals which determine their success and failure – typically on time and on budget. The key difference between program and project management is the scope. While program management focuses on the broader strategy, continuous improvement, and benefit realization, project management focuses on the specific tasks, deadlines, and tactical execution necessary to achieve the overall program goals. When executed properly, they are synergistic and complimentary. Program Management EnterpriseMany PMOs are evolving into enterprise program or project management offices (EPMOs) to meet the changing needs of the business, most notably, the increased focus on digital transformation. Gartner found that EPMOs are more apt to develop innovative, high-value products or services based on customer or business needs. This requires a greater emphasis on enterprise planning, delivery and performance to respond to increased digital business demands. The EPMO is in the ideal position to support digital transformation, serving as a central point to manage cross-company program management. Instead of groups across the company working in silos, they come together to effect a change in capabilities. Technology, products, customer service, marketing and other groups must be coordinated to ensure all are working towards the same enterprise vision through various programs. Still, EPMOs face challenges to operationalize strategic plans. Studies consistently find that two-thirds to three-quarters of large organizations struggle to implement their strategies. An adaptive program management approach is necessary to translate strategic vision across the enterprise to deliver outcomes that often impact or change organizational processes. Program management is an effective way to realize benefits quicker and at higher value while creating scale and bridging organizational silos. Program managers can create outcome-driven program plans and roadmaps connecting dependencies cross-functionally to manage them holistically while ensuring the organization prioritizes the execution of strategy. Are You Ready for Program Management? Execute on Strategy, not ProjectsVisualize dependencies across the business with program management. A few things to consider when thinking about program management:
Benefits of Program ManagementLeveraging program management practices is an effective way to execute cross-functionally and realize strategy. Programs allow the organization to translate strategy into actionable goals to measure performance and mitigate the risk of failure. Metrics should be measurable, attainable, and aligned with the overall goals of the program. What you decide to measure will drive not just the program but will help define projects and their intended value. How and what is delivered may change; the strategic goals of the program usually don’t. If they have, then the strategy has changed, and the organization needs to react accordingly. That is why it is so important for programs to be a translation of strategy and not some side-list aligned to it. Some examples of program metrics include:
These are just a few of the key metrics to think about when setting up program management to ensure maximum benefits realization. Keep in mind other Key Performance Indicators (KPIs) are important for specific projects, and the program as a whole, and make sure they are defined and communicated from the start. Leverage program management to create dashboards that measure success; drill into details to assess risks and prioritize as changes happen. Learn MoreProgram management aids in strategic execution and results in more time spent on the enterprise, establishing metrics, measuring performance against strategic goals, communicating, managing priorities, and managing business change across departments. For more information on how to empower EPMO leaders and program managers with solutions and tools that fit their needs to build and execute strategic programs within your organization, read more about Planview’s solutions and products and explore these additional resources below: More resourcesWhat is the method by which processes are operationalized or executed within the organization?strategy implementation The methods by which strategies are operationalized or executed within the organization; it focuses on the processes through which strategies are achieved. deliberate strategy A plan of action that an organization chooses and implements to support its mission and goals.
What are the three types of organizational strategies?When you sit down to create your organizational strategy, you should first divide it into three distinct categories: Corporate level strategy. Business level strategy. Functional level strategy.
What does an organization use to manage its operations across several industries?Corporate-Level Strategy
The set of strategic alternatives that an organization chooses from as it manages its operations simultaneously across several industries and several markets.
Which one refers to a set of strategic alternatives from which an organization chooses as it conducts?A business-level strategy is the set of strategic alternatives from which an organization chooses as it conducts business in a particular industry or market.
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