What is Program Management?
The Ultimate Guide to Program Management in the Built Environment
In an as-built environment, it can be challenging to distinguish between program management and project management. They share a considerable amount of overlap and the line separating them is often thin. This can lead to confusion among clients: Do they need a project manager or a program manager?
Program management begins with a holistic understanding of program objectives and strategic goals. This knowledge allows for the aligning of workflow and resources in order to facilitate efficient program delivery.
Fortunately, our GHP project managers are trained in both areas of projects and programs. Watch the video below to see what issues you can avoid when you work with an experienced program manager.
A Program vs. a Project
A project is a specific initiative with defined budgets, timeframes, scopes, and stakeholders. For example, a project could be the construction of a building, such as a single residential complex or a commercial office tower.
On the other hand, a program is a collection of related projects working toward the program goals. Instead of a single building, a program could encompass development of an entire mixed-use district. This comprises different projects such as residential buildings, commercial spaces, public parks, and transportation infrastructure.
Do You Need a Project Manager or a Program Manager?
Clients often bring in multiple project managers for various aspects of a project. In some cases, it may be necessary to have both a project manager and a program manager working together to ensure the success of the overall program and its individual projects.
So how do you know which one is right for you and your project? The decision to engage one or both roles depends on the complexity, scale, and interconnectedness of the projects, as well as the overall strategic objectives.
Project Manager
A project manager is needed when there is a specific project with defined deliverables, scope, and timeline. They are responsible for coordinating with the owner, architects, contractors, and other stakeholders, adhering to the budget and timeline, and ensuring that all work meets specified and industry standards.
Key Responsibilities of a Project Manager
Develop a project plan, including scope, timeline, and budget
Assemble and lead the project team
Coordinate tasks and resources
Monitor project progress and identify potential risks or issues
Communicate project status to stakeholders
Ensure quality control and adherence to project requirements
Manage changes in project scope, schedule, or budget
Evaluate as-built project success and implement lessons learned
Program Manager
You need a program manager when there are many assets managed by an owner or ownership group in the public or private realm. A program manager looks at the big picture for the program longer term.
If the projects have a high degree of interdependency and require a cohesive strategy to achieve the common goal, a program manager can assist. They coordinate all the different groups that are involved, understand all assets as a whole, and evaluate the capital outlay to determine the best use of resources. They are more equipped to manage a high level of risk or uncertainty within a program. For example, GHP’s work as program manager for the redevelopment of the 117-acre Nashville Fairgrounds led to a more efficient and community-driven project.
One of the biggest benefits of a program manager is that they will lead design teams. In contrast, project managers work alongside design teams since plans are usually already determined before a contractor is hired on a project.
Key Responsibilities of a Program Manager
Define program goals and objectives
Develop a program plan, including the alignment of multiple project scopes, timelines, and budgets
Assemble and lead the program team consisting of project managers and other key stakeholders
Coordinate and integrate project plans to achieve the overall program objectives
Monitor program progress and identify potential risks or issues at a program level
Communicate program status and updates to stakeholders
Ensure quality control and adherence to program requirements across all projects
Manage changes in program scope, schedule, or budget
Optimize resource allocation and prioritize projects based on strategic objectives and organizational capabilities
Evaluate as-built program success and implement lessons learned for future programs
Owners Representation and Its Role in Program Management
Owners representation refers to the process where an individual or organization acts on behalf of a real estate owner in managing major construction projects or programs. This role is crucial in program management, as the owner's representative serves as a liaison between the owner and the rest of the project team. They ensure that the owner's interests and objectives are incorporated throughout the program, facilitating clear communication and effective decision-making.
Key Responsibilities of an Owner's Representative
Define and communicate the owner's objectives and requirements for the program
Manage the selection and contracting of design professionals, contractors, and other team members
Coordinate and oversee the work of project managers responsible for individual projects within the program
Monitor and report on the program's progress, budget, timeline, and any potential risks
Provide regular updates and recommendations to the owner, ensuring informed decision-making and timely actions are taken
Manage any changes in scope or objectives, ensuring minimal impact on the overall program
Ensure quality control and compliance with applicable regulations and industry standards
Facilitate conflict resolution and issue management within the program team
Advocate for the owner's interests and maintain relationships with all stakeholders throughout the program
Evaluate the program's overall performance and success, identifying opportunities for improvement and learning for future programs
What Program Management Offers
Resource Optimization: By coordinating the various projects, program management optimizes the utilization of resources – including time, budget, and personnel – to ensure maximum efficiency and minimize conflicts or redundancies. A program manager provides the necessary guidance to ensure that all projects within the program are cohesively working together toward a common objective, increasing the likelihood of success. By optimizing resource allocation, improving decision-making, and mitigating risks, program managers can help organizations save on costs by reducing inefficiencies and preventing costly mistakes or delays.
Scheduling: Regular monitoring and evaluation of projects and their dependencies ensures that they are on track for successful completion and that any issues are identified and addressed in a timely manner. Program management fosters an environment of adaptability and flexibility, as projects within the program can be more easily adjusted or reprioritized to fit changing needs or circumstances.
Stakeholder Engagement: Effective program management involves regular communication and collaboration with all stakeholders, including project teams, clients, and upper management, to ensure that everyone is on the same page regarding goals, expectations, and progress. A program manager serves as a central point of communication for all stakeholders involved in the program, promoting transparency and ensuring that everyone is informed and up-to-date on progress, expectations, and any changes that may occur.
Risk Mitigation: Program managers have the ability to make informed decisions and consider the implications of each project on the overall program, leading to better results and mitigating potential risks. Program managers can more effectively identify, assess, and mitigate risks that may arise during the course of the program, helping to prevent issues before they escalate and negatively impact the overall program or individual projects.
The Benefits of Program Management
Program management offers a comprehensive approach to overseeing multiple projects and enabling a more efficient use of resources. With a wealth of experience and a focus on the bigger picture, program managers identify opportunities to jumpstart new development and drive long-term success.
One of the key benefits of having a program management partner, such as GHP, is their ability to provide valuable insight and expertise on potential projects without incurring excessive costs. An experienced program manager understands current market values and trends to proactively work on behalf of the owner and ensure they are getting the best deal and expected quality throughout the program.
A long-term program management partner is well-equipped to adapt and respond to opportunities as they arise. Their deep understanding of your projects and programs allows them to seamlessly integrate new projects, optimize resource allocation, and align strategic objectives with organizational capabilities. As a result, program managers not only help in making informed decisions but also in achieving greater efficiency throughout the project lifecycle. This level of adaptability and long-term partnership ensures that your organization remains agile and well-positioned for growth in a competitive environment.
“Program Managers are essential for the success of any project. A well-planned strategy covering both the short and long-term goals is essential. Program Managers can help you identify current requirements, meet future goals, and prepare for success many years down the line.”
—Dominique Arrieta, AIA, GHP, Inc. President/CEO
Do You Need a Project Manager or a Program Manager?
Download our checklist here that walks you through the top 8 questions to help you determine the need for your project.