When you have a project to work on, it is often necessary to work with other people with different responsibilities. Typically the four main management positions that a project may involve are: Project Management, Program Management, Portfolio Management and Operations Management.
But what do these positions entail? And how do they relate to one another during the project cycle? Read on to find out!
What is the difference between Project Management, Program Management, Portfolio Management, Operations Management?
In every organization, there are multiple levels of management overseeing different areas of responsibility. It can be confusing to understand the difference between these various types of management. However, it is important to know the distinctions in order to correctly assign tasks and responsibilities. Here is a quick overview of the four main types of management:
Project management (PM) is responsible for the planning, initiating, executing, and completion of specific projects within an organization. The focus is on scope, schedule, and money. A project manager typically has a team of people working alongside them to complete the project goals.
Program management (PgM) is responsible for managing a group of related projects that work together to achieve a common goal. A program manager oversees all aspects of the program and coordinates the efforts of the individual project managers. It is important to note that programs may or may not have end dates. Especially if they are achieving success in the eyes of the stakeholders.
Portfolio management (PPM) is responsible for selecting and managing a group of projects and/or programs in order to achieve organizational objectives. A portfolio manager must balance risks and rewards when making decisions about which projects to pursue.
Operations management is responsible for the daily operations of a company. This role oversees the activities to keep a smooth running business. U.S. News states it best – Operations Managers are the go-to people in a business. They make strategic decisions to help the staff operate efficiently and achieve and meet daily goals.
What are the different responsibilities of each?
Businesses have many moving parts and often require a different person to lead each area. The different types of leaders needed to maintain businesses are: project management, program management, portfolio management, and operations management. So, what’s the difference between them?
Project Management:
The main focus of a project manager is to complete a specific goal or project within a set timeframe and budget. This starts by putting together a winning team. From there, they manage the tasks on the project and make sure that everyone stays on track.
Program Management:
A program manager is similar to a project manager but it oversees multiple, yet related projects at once. Oftentimes this role will lead multiple project managers. At the same time they coordinate the many projects and ensure they support the overall program.
Portfolio Management:
Portfolio managers are responsible for choosing which projects the company will work on. They will select, prioritize, and authorize projects and programs. This role balances the allocated resources for the programs and projects. Also, they make sure that the various projects support and fit into the overall strategy of the company.
Operations Management:
Operations managers make sure that day-to-day operations are running like a well-oiled machine. They could be responsible for things like supply chain management, quality control, or customer service. It is often that this role will monitor the quality, materials, procurement, production, processing and distribution of goods and services.
How does one lead to another?
Project management, program management, portfolio management, and operations management are all different yet related at the same time.
Project management is the planning, executing, and controlling of a goal. Many projects are typically thought of by leaders or operations. Projects require the support of other managers. A project manager will have influence on the other projects within a program or portfolio. They may also impact operations.
Program management is the act of leading a group of related projects and having common goals. Programs can be formal or informal. The success of a project within a program foretells the performance of a program. A program manager being on the same page as the project managers they lead and the other managers is imperative.
Portfolio management is the process of guiding many projects and/or programs. This role often involves leading the program and project managers. The relationship between the managers will depend on the structure of the group. Success of a portfolio is similar to a program. It relies on the end result of the projects, programs, and the operating areas of the company.
Operations management is the orchestration of the everyday tasks and activities of a company. On a parallel path, they are allocating resources to support the projects. The project deliverables are typically for the benefit of operations. An operations manager leads their team to understand their split role within projects and the daily tasks.
What are some key benefits of these different management types?
There are many benefits to having different management types within an organization. Each type of management brings its own unique set of skills and knowledge to the table.
Project management, for example, is focused on the phases of a project. Program management, on the other hand, coordinates the multiple projects as they all work together to achieve common goals. Portfolio management oversees all of the organization’s projects and ensures that they are aligned with its strategic objectives. And finally, operations management is focused on the day-to-day running of the organization while providing support to projects.
Each type of management has its own area of focus and all of them are necessary for a well-functioning organization. The size of the company will dictate each role needing a different person or having fewer people wearing multiple hats. In the end, a favorable result relies on a clear understanding of the management roles and responsibilities.
Strategies for leading across each type of management
When it comes to management, there are different strategies for successfully leading across each type. Here’s a quick rundown of the four main types of management: project, program, portfolio, and operations.
Project Management:
A project manager needs to focus on the critical path tasks and making sure that it is completed on time. This focus will often lead to a project staying within budget. It is also important to be able to work with a team and delegate tasks effectively.
Program Management:
A program manager coordinates different, yet related projects and makes sure that they are all working towards the same goal. The program manager requires superb communication skills. In addition, they should think strategically about how the different projects can best work together.
Portfolio Management:
Portfolio management is all about managing different investments and ensuring that they are all performing well. This requires a good understanding of financial markets and how to manage risk. It is also important to be able to monitor different portfolios and make changes as needed.
Operations Management:
Operations management is all about ensuring that a company’s operations are running smoothly. This includes things like manufacturing, logistics, and customer service. They manage maintenance, safety procedures, and culture within the workplace environment and capital equipment. Depending on the size of a company, they may have multiple operations managers.
Where can you find more information about these different types of management?
Learn more about project management, program management, and portfolio management. There are a number of great resources available. Here are a few of our favorites:
Project Management: The Project Management Institute offers a wealth of resources on all aspects of project management. Find articles and white papers to webinars and training courses on their website! There are many books available for in depth reading. Check out these search results on Amazon to find the best for you.
Program Management: The Project Management Institute offers a wealth of resources on all aspects of program management. Find articles and white papers to webinars and training courses on their website! Also, check out this book by James T Brown, The Handbook of Program Management: How to Facilitate Project Success with Optimal Program Management.
Portfolio Management: The Project Management Institute offers a wealth of resources on all aspects of program management. Find articles and white papers to webinars and training courses on their website! Also, check out this book by Harvey A. Levine, Project Portfolio Management: A Practical Guide to Selecting Projects, Managing Portfolios, and Maximizing Benefits.
