Overview of Program Management

Overview of Program Management

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  An Overview ofProgram Management This presentation provides an overview to Program Management. It broadly follows the PMI’s standard for Program Management. This document describes the context of the program, how to initiate and control projects as a part of program lifecycle, how to manage transitions, and how to obtain outcomes towards benefits realization. It also describes the key roles involved in program management and how Program Governance Board can facilitate program success. This document and more can be downloaded here: http://flevy.com/seller/grtconsulting
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  2 Executive Summary Programs aretaken up to realize benefits towards achieving organizational strategic objectives. Whereas projects produce discrete outputs, program management focuses on their synergization towards obtaining of outcomes and benefits. Portfolio management is a key linking factor between program management and the organizational strategy. Programs, in turn consist of multiple inter-related projects collectively creating a coherent capability, which are then transitioned to the concerned functional departments to obtain desired outcomes. The current slide set describes the context of the program, how to initiate and control projects as a part of program lifecycle, how to manage transitions, and how to obtain outcomes towards benefits realization. It also describes the key roles involved in program management and how Program Governance Board can facilitate program success. It broadly follows the PMI’s standard for Program Management (Third edition), with supplementary information as needed.
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  3 What is aprogram? “A Program is a group of related projects, sub-programs, and program activities managed in a coordinated way to obtain benefits and control not available from managing them individually.” • Programs include components, which relate to projects and elements of related work (e.g. ongoing operations), outside the scope of the discrete projects in a program.
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  4 ‘Program Management isthe centralized management of a program to achieve strategic benefits and objectives’ Program management for external programs is more vertical / client organization benefit oriented vis-à-vis project management – which is more output delivery oriented Managing multiple projects by means of a program enables optimized/ integrated cost/schedules and efforts towards outcome achievement How Program Management is different from Project Management?
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  9 Program setting inan organization – a conceptual overview Corporate Vision and Mission/ Strategic objectives Program Vision / Strategy/Benefits / Governance Realised Benefits Corporate Strategic Initiatives (Corporate Portfolio) Program Architecture Delivered outputs/ outcomes Program components (Projects/ supporting operations)
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  10 Portfolio management ina Balanced Scorecard setting - example Vision: Continue to be a market leader in the geographies we operate Mission: Provide cost-effective solutions A Strategic objective: Reduce Sales/General/ Admin (SG&A) expenses Measures: SG&A (as a percentage of revenue collected) Targets: SG&A reduction by 2% over an year Strategic initiatives: – Selling off a costly business premises – Vendor rationalization – Improvements in billing and collection – Internal staff competency enhancement Initiatives distributed across the four perspectives – Financial, Customer, Internal process and Learning and Growth, as applicable in a Balanced Scorecard setting The set of all initiatives to address various strategic goals form the portfolio
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  11 Relationship between PortfolioManagement and Program Management PORTFOLIO MANAGEMENT PROGRAM MANAGEMENT Strategic goals Objectives Benefits to be achieved Funding allocations Program Vision Objectives Constraints Program performance reports Risk escalations High level change requests Program closure information Feedback
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  12 Relationship between ProgramManagement and Project Management PROGRAM MANAGEMENT PROJECT MANAGEMENT Program desired goals Linked benefits Project interdependencies Project approach Governance arrangements Project performance reports Escalations Change requests Risk and issue status Project closure notifications Project lessons
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  13 Most of theprograms are initiated and driven to achieve strategic objectives from the portfolio level A well managed program maintains close links with corporate strategy and ensures that projects are not detached or misaligned with the strategy Programs can be thought of the highest level where work gets directed across multiple lines of business. How does the program management gets impacted by strategic objectives?
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  14 Program strategy alignment ProgramManagers require strategic visioning and planning skills to align the program goals with the strategic goals of the organization More mature organizations have a robust initiative selection and closure process Portfolio Review Board or an Executive Steering Committee may issue a program mandate, which defines the strategic benefits to be obtained Program mandate also confirms that the change initiative needs to be monitored as a program
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  15 Program lifecycle Program typicallycommences when the funding for the program gets approved or when the Program Manager gets assigned Program closes when most of the benefits have been achieved or the program is no longer viable or valid (due to say – change in strategy) There are three major phases in the program lifecycle: Program Definition Program Benefits Delivery Program Closure (as per PMI Standard for Program Management) 1 2 3
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  16 Program Charter/ Program Roadmap Program Governance structure/ Program managementplan Overall process map (as per PMI standard) Program Definition Phase Program Benefits Delivery Phase Program Closure Phase Program Mandate Program Formulation Program Preparation Component Planning and Authorization Component Oversight and Integration Component Transition and Closure Component plan Authorized Component status reports & integration Program Transition Program Closeout Closed Component/Transition of outputs/Component lessons learnt Final Reports/ Benefits sustainment arrangements/ Hand over to operations Lessons learnt report/ End program report/ Closure Acceptance
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  45 Transition Management Business ChangeManagers (functional managers in the areas where outcomes and benefits occur) are responsible for planning transitions – along with the Program Manager While planning for transitions, consideration needs to be given for: – Business function readiness for transition – Temporary facilities for those managing transition – Maintaining business performance stability during transitions – Fallback options – in case the transition does not go out smoothly Further factors to be kept in consideration during transition management are described in following slides.
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  46 ‘To-be’ Target Operatingmodel – Segments impacted The transitions affect multiple elements – as noted below. Projects in the program will produce outputs to address the changes needed across all these segments. ‘To-be’ Target Operating model Redeployed technical support/ IT / Systems and Infrastructure Revised Processes/ Business models Redesigned information flows/ Mgt dashboards Revised Org structure/ Skill-sets/ staffing levels/ Culture changes
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  47 Assess readiness forchange When the project outputs are getting delivered to business, the Business Change Managers to need to assess the following factors in the impacted business areas: – Recent track record of changes – Availability of resources to conduct transitions – Current and promised service levels to customers – Service management’s ability to support the organisation through transition – Assess the ‘as-is’ baseline values of the benefits to be obtained by the program
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  48 Managing the transition Asthe projects approach completion, relevant business operations need to be prepared for implementing the outputs from the projects The transition plans are activated once all the projects required for this transition are complete, ready for operational use and the project quality has verified them as being ‘fit for purpose’/ User Acceptance is completed Usually the Program Sponsor / Program Governance Board (Including the Senior Managers) give approval to go ahead for respective transitions
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  51 Program Lifecycle Management- Themes Three themes characterize a program: Benefits Management Program Stakeholder Engagement Program Governance 1 2 3
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  52 Theme - BenefitsManagement Benefits Management assesses the value of the program to the Organization It involves definition and formalization of expected benefits, a program is expected to confer Discrete projects add value to the benefits – which could be tangible or intangible The benefits accrual can be staggered or culminating towards the end of the program The Program Manager needs to ensure that the benefits are measurable/ time- bound and accountability thereof is determined Benefits Management Program Stakeholder Engagement Program Governance
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  53 Benefit Management Lifecycle Benefits Management Program Stakeholder Engagement Program Governance Benefit Identification Analysis Planning Realization Transition Identifyand Qualify Business Benefits Derive and Prioritise Components Derive Benefits Metrics Establish Benefits Realization Plan Establish Benefits Monitoring Map Benefits into Program Plan Monitor Components Maintain and Report Benefits Consolidate Coordinated Benefits Transfer the Ongoing responsibility
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  69 Summing up Program Managementinvolves more challenges as compared to just managing disparate projects and enabling technology adoption Interaction efforts with functional departments efforts towards enabling outcomes and benefits are much more intensive at the program level Since many of the programs involve changes to the way an organization operates, soft skills including stakeholder engagement and change management are imperative to ensure the success of the program