Projects vs. Programmes - unlocking potential and business improvement

In today’s fast paced and complex business landscape, understanding the critical difference between projects and programmes is no longer a technical detail—it’s a strategic imperative for senior leaders. Both projects and programmes are crucial for delivering business value, but they demand distinct leadership styles and behaviours. Mismanaging the two can lead to inefficiencies, missed opportunities, and even legal disputes. Additionally, contracts—especially in projects—can drive behaviours that undermine long-term success. To build better businesses, leaders must understand these differences and foster the right leadership and behavioural approaches to ensure the successful delivery of both.

Behaviours in Projects

Projects are often driven by clear deadlines, deliverables, and contractual obligations. While these parameters bring focus and clarity, they can also foster behaviours that are more reactive and short-term, which can be detrimental to broader business goals.

One of the most common behaviours seen in project teams is short-term focus. Projects have specific goals, and success is typically measured by the ability to deliver on time, within scope, and under budget. While these metrics are important, the pressure to hit targets can lead to cutting corners or compromising on quality. The focus on immediate deliverables can create a tunnel vision, where teams are so focused on the short term that they lose sight of broader organisational objectives.

Risk aversion is another common behaviour in project environments, often exacerbated by rigid contracts. Teams may be reluctant to take calculated risks or explore innovative solutions because they fear breaching contract terms. The emphasis on avoiding failure can stifle creativity and reduce the potential for developing more effective long-term solutions.

Projects also tend to encourage siloed thinking. Since each project is focused on a specific outcome, teams often work in isolation, concentrating on their own deliverables without considering how their work fits into the bigger picture. This lack of collaboration can reduce the project’s overall impact on the business, as teams miss opportunities to align their efforts with other departments or strategic goals.

In some cases, projects can even foster a blame culture, especially when contracts include strict penalties for non-performance. When things go wrong, instead of collaborating to find solutions, teams may engage in defensive behaviours to protect themselves from liability. This can erode trust and create a toxic work environment where innovation and problem solving are stifled.

Finally, litigious behaviour is a real risk in project environments with rigid contracts. Projects can end up in legal disputes when parties argue over contractual interpretations or delivery failures. Rather than focusing on the project’s overall success, teams and stakeholders may become more concerned with protecting their legal positions.

Behaviours in Programmes

In contrast to the more transactional nature of projects, programmes are long term, strategic initiatives made up of multiple interrelated projects. Because programmes are designed to deliver ongoing value and align with broader business goals, the behaviours they encourage tend to be more collaborative and purpose-driven.

One of the key differences in programme behaviour is the long term vision. Programme management requires teams to think beyond the immediate deliverables and focus on the sustained impact of their work. This encourages more holistic thinking, where success is defined not by the completion of individual tasks but by the programme’s contribution to long term strategic goals.

Collaboration is essential in a programme environment. Since programmes consist of multiple projects that need to work together, teams are encouraged to communicate and collaborate across functions. This cross functional teamwork ensures that the various projects within a programme align with the overarching strategy and contribute to the desired outcomes.

Programmes also tend to foster innovation and flexibility. Because programmes often have the flexibility to adapt over time, teams are more willing to experiment with new approaches and solutions. The focus on long term value rather than immediate results creates an environment where calculated risks are encouraged, and innovation can thrive.

Another important behaviour in programmes is a stronger sense of ownership and accountability. In a programme, success is not just about meeting predefined deliverables but about delivering broader business outcomes. Teams are encouraged to take ownership of these outcomes, fostering a culture of responsibility and continuous improvement.

Programme environments are also more likely to promote purpose driven work. Since programmes are typically aligned with an organisation’s long-term strategy and values, teams are motivated by a sense of purpose beyond just completing tasks. This focus on long term goals, such as sustainability, stakeholder satisfaction, or innovation, helps drive more meaningful engagement and commitment from teams.

The Role of Contracts in Driving Behaviours

Contracts play a significant role in shaping behaviours, particularly in project environments. When contracts are overly rigid or focused solely on deliverables, they can drive poor behaviours that jeopardise both the project and the broader business.

One common issue is an overemphasis on delivery. Contracts often tie payments to specific milestones, which can encourage teams to focus on completing tasks rather than ensuring the project’s overall success. This focus on deliverables can lead to rushed work, compromised quality, and a disregard for long term value.

Another problematic aspect of contracts is the inclusion of penalty clauses. Contracts that impose penalties for underperformance can create a defensive mindset, where teams are more focused on avoiding failure than exploring innovative solutions. This can stifle creativity and collaboration, as teams become more concerned with protecting their interests than achieving the best possible outcomes.

Contracts that focus too heavily on deliverables can also foster transactional relationships. When the relationship between stakeholders is defined solely by the terms of the contract, it becomes transactional rather than collaborative. This can erode trust and reduce the potential for partnership-based problem solving.

In contrast, programme contracts tend to be more flexible and focused on outcomes rather than specific deliverables. This flexibility fosters better behaviours by encouraging collaboration, strategic thinking  and a focus on long term success.

How Leaders Can Improve Project and Programme Delivery

Senior leaders have a pivotal role in shaping the behaviours that drive successful project and programme delivery, leading to improved business and businesses. By fostering the right culture and aligning leadership approaches with the needs of each structure, leaders can mitigate the negative effects of contracts and ensure that both projects and programmes deliver their full potential.

First, leaders must create a culture of trust. This involves encouraging open communication and collaboration, moving away from transactional relationships towards trust based partnerships. When teams feel trusted and empowered, they are more likely to take ownership of their work and collaborate to solve problems.

Leaders should also focus on long-term value. Even in project environments, it’s essential to emphasize the importance of delivering long-term outcomes. By helping teams understand how their work fits into the broader business strategy, leaders can reduce the risk of short term thinking and encourage a more holistic approach.

Additionally, leaders must encourage innovation. To foster creativity, leaders need to create environments where teams feel empowered to take calculated risks. This is especially important in programme environments, where long term success often depends on the ability to adapt and innovate.

Finally, leaders should develop transformational leadership capabilities within their teams. This involves balancing transactional skills, such as attention to detail and execution in projects, with transformational skills, such as vision, adaptability, and strategic thinking in programmes. By cultivating leaders who can pivot between these two approaches, businesses can ensure the effective delivery of both projects and programmes.

In closing, understanding the difference between project and programme management – internally and externally - is critical for senior leaders looking to build better businesses. By fostering the right behaviours and aligning contract structures with broader business goals, leaders can ensure that their organisations not only deliver on promises but also unlock their full potential.