Corporate strategy identifies the goals of a company and defines ways of achieving those goals. Project management takes one of the goals and manages costs, schedules and resources to give the desired result. When small businesses use projects to make progress toward their strategic goals, they have to be aware of the differences between the two processes. While both corporate strategy and project management share planning and control characteristics, the details of their implementation and execution are not the same.
The goals of corporate strategy and project management are different. Those of corporate strategy define the direction of the company and are not usually time limited. ...view middle of the document...
And a program consists only of projects.
When compared to projects and programs, a portfolio is closer to an organization’s business objectives, and therefore this is where most of the investment decisions are made.
It’s also important to note that an operation is not part of a project. However, a program can include a non-project work. Similarly, a portfolio can also include work that is not included in any of its constituent projects and programs.
Comparison between a Project, a Program, and Portfolio
Characteristic | Project | Program | Portfolio |
Definition | A limited set of efforts (work) to create a unique product, service, or results. | A group of related projects and possibly some related work that does not belong to any project. | A collection of projects, programs, and other related work. |
Change | Project manager expects change and implements processes to manage and control it. | Program manager must expect changes from both inside and outside the program and thrive on them if they help maximize the strategic benefits and objectives of the program. | Portfolio manager continually monitors changes in the broader context of the strategic plan of the organization. |
Management | Project manager manages or coordinates the project team to lead the project to its success. | Program manager manages the program staff and the project managers and provide overall leadership, including vision. | Portfolio manager may coordinate or manage the portfolio management staff. |
Monitoring | Project manager monitors and controls the project activities (tasks) undertaken to produce the planned products, results, or services of the project. | Program manager monitors the progress of program components, including projects and program-related non-project work, to lead the program to success, which means overall goals and benefits will be achieved within the planned budget and schedule. | Portfolio manager manages the aggregated portfolio performance and value indicators. |
Planning | Project manager develops, monitors, and controls project plans from high-level information throughout the project lifecycle by using progressive elaboration. | Program manager develops the program plan and performs high-level planning to provide guidance at component-level planning, such as project planning. | Portfolio manager performs planning at the portfolio level, which...