By Koralia & Nicos Timotheou

A process is a permanent (or routine) sequence of interdependent activities, each consuming/using one or more resources (employee time, energy, machine time, money…) in order to convert inputs (data, material, parts, etc.) into outputs (services, products, knowledge, etc.), in a standardized manner.  

A process has a regular recipient i.e. client, either internal or external, who will in turn use the output of the process as input in a new one or will utilize it as an end product.  A process is part of the business-as-usual mode of an organization.  It is mature, at least to some extent, and it is an integral part of corporate operations.  In order to be worthwhile of the resources it absorbs, it must be value-adding to the business. The process is used to execute (part of) the MISSION of the organization, i.e. to produce and deliver whatever the organization is dedicated to producing.   It belongs to the tactical level of operations.   

It is staffed by people who have been trained and are knowledgeable of the work methods utilized and the people with whom they need to cooperate.  These people are expected to work efficiently and effectively and to produce results according to certain specifications.  They are (or must be) competent at what they do, they usually perform their activities for lengthy periods of time and work under stable cultures and inter-dependencies. 

Process performance is measured through Key Performance Indicators (KPIs) using pre-agreed targets.  People are assessed (at least partly) on how well they perform within the process, i.e. how well their competences and competencies match the ones demanded by the optimal execution of the process. 

Process management refers to the activities of planning and monitoring the performance of a business process.  Planning and monitoring is relevant to resource utilization, people’s performance and end results. Constant incremental improvement belongs to process management -e.g. the Kaizen way. If the process is found to be severely efficient and/or ineffective, it probably must be redesigned or re-engineered. 

The Process Owner is the manager of the process and the person to be credited or held responsible for the process performance.  He or she is person to supervise implementation and effect improvements and changes, on a needs basis.

A project is a temporary assignment (or structure) aiming to create a new, unique product, service or result. It has a defined beginning and ending in time and a predetermined amount of resources to be utilized.  When its purpose has been achieved, the project has no reason for existing and it is ended. 

A project has a specific recipient – client for its final result, either internal or external to the organization.
 
An internal project is outside the usual operation of the organization and is used to implement (part of) the VISION of the organization or to react to an unexpected need, threat or opportunity.  It belongs to the strategic level of operations.  The people populating the project team usually come from various functions and disciplines and may have not worked together in the past before.  They are “borrowed” from their routine posts and are returned to these once the project ends.  There are therefore sensitive issues such as group dynamics that have to be addressed.  The project team members are chosen based on their competences and competencies, must complement each other and must be able to work as a single body and deliver results.  A good “team fit” must be achieved in order for the project to deliver. 

The success of a project is measured by its end-result - the deliverable.  Specifically, the degree of success of a project is judged by answering, at the end of the project, the question whether the purpose of the project has been fulfilled according to the description, requirements and specifications set at the beginning, on-time, within budget and whether it is acceptable to the internal clients/ users. 

Project management is the application of knowledge, skills, tools, and techniques to project activities, in order to meet the project requirements. 

Project management has five phases:
>> Initiating
>> Planning
>> Executing
>> Monitoring and Controlling
>> Closing

The Project Manager is the person responsible for the smooth operation and the end result delivered by the project.  He or she does the day to day monitoring of the project progress and escalates problems or changes required to the project's Steering Committee. 

In most organizations, while processes are the backbone of an organization, through which its mission is achieved, projects are equally important as they are the tools through which change will be effected and the vision will be reached.  They need a different approach in their structure and management and both need sound people management, close monitoring of progress and results and proactive approach in problem solving. 

Projects need, of course, to be systematically managed in organizations which deliver services or products by executing, as a routine, projects for their customers, such as building roads or executing Business Re-engineering projects. They still have and need to manage properly internal processes. In this case, projects are executing (part of) the organization's Mission and the processes within projects need to be also systematically managed since they are carried out in a repeated routine manner.

An organization needs to have a structured approach to both processes and projects and manage both well in order to progress in the business world.  

6.5.2016