Throughout the business world, there is considerable confusion between “program management” and “project management,” a problem that is intensified in government by varying definitions of the word “program.” Most people recognize that program management is somehow related to the management of multiple projects; however, the goals and objectives of program management are different than those for project management and they require very different skills. Viewing program management from a project management mindset in order to make it fit the project paradigm is a fundamental flaw in thinking, but one that is common across many industries and government organizations.

In industry, program management can be defined as a proven discipline that effectively links multiple project outputs to strategic business objectives. Therefore, a program must contribute to strategic business outcomes. This is not unlike the Office of Management and Budget (OMB) definition of program as an activity or set of activities intended to help achieve a particular outcome for the public. There are about 1,000 programs in the federal government. Many agencies, however, define programs differently, and within the Department of Defense (DoD), a program is almost always a synonym for an “acquisition program” defined in DoD 5000 as a directed, funded effort that provides a new, improved, or continuing materiel, weapon or information system or service capability in response to an approved need. Therefore, in DoD, many programs are really large projects and are managed as such.

Program management and project management are related but distinctly different disciplines. It is important for everyone within the organization to understand the distinction between the two in order to link project output to business strategy and to integrate the efforts of multiple project teams to achieve a common set of business goals. The basic differences between the two are:

1. Program management is strategic in nature, while project management is tactical in nature.
2. Program management is entirely cross-functional, while project management focuses on a single function, or limited cross-functional alignment.
3. Program management integrates the individual elements of the projects in order to achieve a common objective.

Program management is the coordinated management of interdependent projects over a finite period of time to achieve a set of business goals. The key words in this definition are coordinated, interdependent and business goals.

Coordinated management of multiple projects means that the activities for each project are synchronized through the framework of a common lifecycle executed at the program level.

Interdependent projects are those that have a mutual dependence on the output of other projects in order to achieve success. Program management ensures the dependencies between the multiple projects are managed in a concerted manner. Managing multiple interdependent projects also requires the integration of the project planning and execution activities at the program level.

The program must contribute to achieving a strategic business objective. Accomplishment of the stated business goals is the ultimate responsibility of the program manager. Agencies need to employ both effective project management and effective program management in order to achieve their goals.