Projects vs. Operations… Again?

Why is understanding the difference between projects and operations so challenging, and what about companies that see themselves as project-based?

Let’s begin by clarifying the terminology. Both operations and projects refer to types of work carried out in organizations. However, operations are ongoing, day-to-day activities designed to produce and deliver value to internal or external customers, while projects are temporary initiatives undertaken to achieve specific, one-time objectives. In other words, operations are continuous, while projects have a defined beginning and end within a set timeframe. Operations are the core activities that sustain an organization by consistently delivering value, while projects drive change and innovation.

Some organizations operate in industries where project-based work is their norm. For example, in construction, consulting, IT development, or marketing, the day-to-day activities are, in fact, projects. These projects focus on creating and delivering products or services to clients and, because they have distinct start and end points, must be managed as such. In these cases, projects become “business-as-usual” because they represent the regular work of the organization. However, even within these project-centric industries, there are initiatives focused on organizational change—these are distinct from regular projects and should be managed differently.

From a broader perspective, every business activity has a beginning and an end, so it’s possible to view everything as a project. Whether it’s the production of goods or services or even the establishment and eventual closure of companies, these activities can be framed as projects when seen from a lifecycle perspective. This is similar to the economic analogy where, in the long run, all costs become variable.

Despite their differences, operations and projects complement each other. Operations fulfill the immediate needs of customers, keeping the organization running, while projects enable growth and transformation. It’s important to note that operations, though day-to-day, are not static—they undergo incremental changes as people tweak processes over time. However, when a significant shift is needed, a project should be initiated to implement that change without disrupting ongoing activities. In this way, operations and projects interweave, forming part of the larger organizational lifecycle.