Construction Program Management vs. Project Management.
Program management and project management are both integral to a construction firm’s operation and its ultimate success. And while there are similarities between the two, there are significant differences that put the two disciplines on completely different levels.
Program management in the construction industry is a strategic approach that involves managing a series of related projects. These projects are generally designed to achieve a significant benefit that aligns with the organization’s overarching objectives. A program consists of interconnected projects (i.e., buildings, bridges, highways, etc.) that share common goals and are often dependent on each other to deliver success on a larger scale.
Construction program managers focus on the coordination and implementation of these projects, managing risks, resources, and timelines across the program. They may also oversee a number of non-physical deliverables, including owner relationship management, safety, and risk management. Their goal is to achieve the benefits and value that individual project management might not realize alone.
Project management, on the other hand, is more narrowly focused. It involves the application of processes, methods, skills, knowledge, and experience to achieve specific project objectives according to the project acceptance criteria within agreed parameters. Project management has a final deliverable that is constrained to a finite timescale and budget.
Unlike program managers, project managers focus on the specifics of the individual project tasks and immediate team management, including planning, executing and closing projects; managing teams; and ensuring that the project meets its deadlines, stays within budget, and achieves the goals set out in the project scope. Think of a project manager as the leader of a construction team.
A conference paper on the Project Management Institute website provides one of the most succinct definitions of each: “The difference between projects and programs has been ignored or confused by many people for too long. A project is chartered to create a specified “deliverable” as efficiently as possible…Programs focus on the coordination of a number of related projects and other activities, over time, to deliver benefits to the organization.”
Program Management vs Project Management
With this general description as a backdrop, let’s delve into more specific criteria that set these two disciplines apart within the construction field:
Scope and Focus: Program management encompasses a broader operational and strategic scope compared to project management. Program managers must oversee a portfolio of construction projects that are interconnected and aligned toward achieving strategic business benefits. Their role requires a ‘holistic’ approach to ensure that all projects are contributing effectively to the overarching objectives of the company. They must ensure coherence and synergy between projects to optimize outcomes and maximize benefits across the program.
In contrast, project managers focus on the specifics of individual projects. They are tasked with delivering specific outputs or deliverables, managing day-to-day tasks, and ensuring that the project meets its individual goals within the set parameters of time, cost and quality.
Objective Alignment: The alignment of objectives in program and project management is another area of differentiation, in both scope and time horizon. Program managers align their initiatives with long-term strategic goals, focusing on delivering benefits that contribute to the company’s broader vision and competitive advantage. This often involves managing change, driving innovation and transforming business processes to better meet strategic objectives.
Project managers, however, are primarily concerned with achieving the specific objectives of their project. Their focus is on meeting immediate goals, such as delivering a product, service, or result on time, within budget and to an agreed quality, thereby satisfying project stakeholders and directly addressing specific needs.
Timeline and Flexibility: Programs are inherently flexible and dynamic; they are designed to adapt to changes in the business environment, shifting strategic goals and evolving market conditions. This flexibility allows program managers to realign projects within the program as needed to better serve the organization’s interests.
On the other hand, projects tend to have more defined and rigid timelines. Each project operates within a fixed schedule that is often tightly controlled to meet deadlines and budget constraints. The project’s scope and objectives are clearly defined from the outset, with less room for deviation, reflecting a more tactical and operational focus.
Risk Management: Risk management in program and project management also varies due to the discrete scope of each role. Program managers face complex risks that can affect the entire program, including strategic risks, governance risks, and risks arising from the interdependence among projects within the program. They need to consider broader external factors that might impact multiple projects or the program as a whole. Their risk management strategies are quite comprehensive, focusing on maintaining strategic alignment and mitigating risks that could derail the program’s objectives.
Conversely, project managers deal with risks that are more specific to their project. Their risk management is often confined to operational risks, such as those affecting resources, timelines and deliverables. They implement tactical measures to mitigate these risks, focusing on keeping the project on track and within its defined boundaries.
Key processes in program and project management
Despite their differences, there is a set of skills and a level of expertise common to both areas. Navigating the complexities of program and project management in the construction industry demands a solid grasp of these skills.
Strategic Alignment: This is a fundamental component in both program and project management. It ensures that all management activities are in sync with broader strategic objectives. Strategic alignment helps to maximize the impact and efficiency of projects and programs by ensuring that resources, efforts, and changes are directed toward overarching business goals.
Key practices include the use of balanced scorecards, strategy mapping, and regular alignment reviews to ensure that projects and programs do not drift from the intended strategic path.
Decision-Making: Effective decision-making is critical for navigating the complexities of project and program management. It requires a robust framework that facilitates clarity and consistency, ensuring that every choice advances the project’s goals.
Key practices include the use of decision matrices, cost-benefit analyses, and risk assessment models to make informed choices. These tools help managers evaluate options based on their potential impacts on time, cost, quality, and alignment with strategic objectives.
Forecasting and Planning: These processes are pivotal for adjusting projects and programs to fit changing conditions and future challenges. They involve techniques such as trend analysis, scenario planning and demand forecasting, which predict project outcomes and resource needs. Effective forecasting helps managers allocate resources efficiently, set realistic schedules, and prepare for potential risks.
Workflow Optimization: Workflow optimization in project and program management focuses on improving efficiency and effectiveness through streamlined processes and enhanced communication. It involves mapping out project workflows, identifying bottlenecks, and implementing best practices like Lean and Six Sigma to eliminate waste and reduce cycle times. Standardizing processes across projects ensures consistency and quality, while automated tools can help track progress and maintain control.
Resource Allocation: This is about ensuring that the right resources (equipment, personnel, money) are available at the right time and are used effectively to achieve project objectives. It includes planning resource capacity, scheduling, and balancing demand across multiple projects. Practices involve creating detailed resource plans, using resource levelling and smoothing techniques, and applying software tools to provide visibility into resource usage and availability.
Despite sharing some similarities in scope and approach, program management and project management demand many different areas of expertise. In the end, having highly competent program managers and project managers – who can work together seamlessly to ensure successful project completion as well as adherence to larger corporate objectives – is a non-negotiable requirement in the complicated and complex world of construction.
For a list of the sources used in this article, please contact the editor.
By David Hernandez
David Hernandez is the head of U.S. for Elecosoft, with headquarters based in Houston, Texas. Elecosoft LLC, established in 2021 as a dynamic brand under Eleco plc, is revolutionizing the US built environment software market with a comprehensive suite of cutting-edge products. Its portfolio of software packages is utilized from the early planning stages through to construction and facilities management, driving the performance and day-to-day operations of businesses worldwide.