Program management is an overarching business management process that helps companies oversee projects. This process helps companies improve their operational performance and develop a competitive advantage in the business environment. Owners and managers typically use program management to select new projects, set objective for each one and manage each project to success. This management process often coordinates and prioritizes the economic resources companies use in their production processes.
Governance is the process of setting specific responsibilities for each individual in a company. Creating a job position for program management allows one individual to be the point person for the organization. This also ensure only one person is making decisions relating to the minor use of economic resources. Larger organizations can create an entire division or department for this function. Governance also can place restrictions on the program manager to ensure he does not overextend the company’s resources.
Management relates to the individual managers of each project. Companies should create a formal management framework to coordinate the activities and tasks for current or future projects. Where governance is the intermediary between organizational ownership and program management, project management is responsible for the daily functions in the program management department. This hierarchy can create a better workflow for this management process.
Planning is the process where different individuals write out the strategy for various functions in a company. This process typically requires individuals at the governance and management levels to work together and create a plan that advances the company’s mission at the lowest cost possible. Planning can also help organizations create failsafe plans in case negative situations arise during the program management process.
Financing typically refers to the use of outside funds to pay for business operations. The type of financing–debt or equity–can have different implications for the program management process. Debt financing represents a bank loan where fixed payments must be made to repay the loan. Equity financing is investments from venture capitalists or private investors. While the first option creates immediate cash outflows, the second may allow companies to dictate repayment terms for this capital. Creating a mix or using one method over the other may provide more benefits to companies looking to finance program management projects.