Best Practice in Best Practice in ProgrammeProgramme

ManagementManagement

Geoff Reiss

• Senior Consultant: The Program Management Group plcSenior Consultant: The Program Management Group plc• Chairman: ProgM - The UK Programme Management Chairman: ProgM - The UK Programme Management Specific Interest GroupSpecific Interest Group• Masters degree in Project ManagementMasters degree in Project Management• FAPMFAPM

•Author of: Author of: – Project Management DemystifiedProject Management Demystified– Programme Management DemystifiedProgramme Management Demystified– One Project Too Many (with Geof Leigh)One Project Too Many (with Geof Leigh)– The Gower Handbook of Programme Management (6 The Gower Handbook of Programme Management (6

authors)authors)

Introduction & DefinitionsDifference between project and programme

managementUK government activities/world interest and

developmentsFour Very Common Problems:

OrganisationProject Portfolio ManagementGovernance Program Office/Centres of Excellence

Sources of Further Information

Introduction & DefinitionsDifference between project and programme

managementUK government activities/world interest and

developmentsFour Very Common Problems:

OrganisationProject Portfolio ManagementGovernance Program Office/Centres of Excellence

Sources of Further Information

Resources

A Project

A ProjectA Project

A Project

A Project A Project

A ProjectA Project

Oh no, anotherproject

Cross ProjectLinks Busin

ess

As Usu

al

ProjectPortfolio

Management

BenefitManagement

Programme Management

Programmes vs Projects

Project

• Defined start and finish dates.• Focus is more on delivering products. Rather than

benefits.• Simpler; only have to focus on delivering defined

products.• Projects are ‘ring fenced’. • Change control is a more structured and easier

activity.• Micro view, will fight against others which threaten

their success

Programme

• Contain many projects, drive operational change.• Exist in a world that is constantly changing.• Macro view; have to consider the combined effect of a portfolio of projects.

More complex interface with the strategy

• Less well defined end date.• Focus is on delivering benefits

and requires involvement after projects have ended.

• Every programme must directly benefit the organisation in some way.

• Some Current InitiativesSome Current Initiatives– PMI Program Management StandardsPMI Program Management Standards– APM Program Management APM Program Management

QualificationQualification– Managing Successful Programmes Managing Successful Programmes

RefreshRefresh– Major UK Government InvestmentMajor UK Government Investment– Programme Management Maturity Programme Management Maturity

ModelModel

Introduction & DefinitionsDifference between project and programme

managementUK government activities/world interest and

developmentsFour Very Common Problems:

OrganisationProject Portfolio ManagementGovernance Program Office/Centres of Excellence

Sources of Further Information

Roles and Responsibilities

Distributing Work

A single delegation

Delegator

Delegatee

Agreed and audited scope, timing,budget, documents

Automatic updatesof latest plans

Direct Update Model

Program Manager

Project Managers

Team Members

Team Leaders

The LoanModel

Delegation and Loan

Introduction & DefinitionsDifference between project and programme

managementUK government activities/world interest and

developmentsFour Very Common Problems:

OrganisationProject Portfolio Management

- Governance Program Office/Centres of Excellence

Sources of Further Information

Because a significant proportion of projects:• fail to deliver their business benefits, or• fail to demonstrate delivery of benefits through poor use of metrics• Gartner Research:

Do Programmes Deliver Benefits?

Do companies measure benefits?

yes

Do some

no

deliver benefit

25%

deliver no benefit

75%

Forrester’s 2001 research tells a similar story, stressing that “[Programme] Prioritisation tops the list of CIO’s challenges”

Portfolio Management

The Value Path Projects create

deliverables. Programmes combine deliverables to create capabilities. The organisation utilises the capabilities and gains BENEFITS

BENEFITS

Capabilities

Programmes

Deliverables

Projects

Defining a Programme

• Mandate – a written statement

• Owner and / or Sponsor(s)

• A List of Benefits:

• ‘No Change’ cost or income levels over time

• ‘Post Change’ cost or income levels over time

• Strategic Alignment measures: KPI’s

• Risk Estimates (schedule, cost, benefit)

• Resource Requirements and Costs (Investment)

Running Cost Predictions

0

10

20

30

40

50

2006 2007 2008 2009

no change

post change

Typical Screen shot showing a complete set of data for a single programme including resource requirements, investments, cash flow curves plus the aggregation of a variety of

KPIs

Benefit Management Cycle

A Benefit Management Cycle

• Set a Strategy – the goalsSet a Strategy – the goals• Request Programme ProposalsRequest Programme Proposals

– Contender ProgrammesContender Programmes• Analyse each Contender ProgrammeAnalyse each Contender Programme• Cyclic Review of all current and contender Cyclic Review of all current and contender

programmesprogrammes– ScenariosScenarios– Mandatory, Important, Should do, Could doMandatory, Important, Should do, Could do– Benefits, investment, resources, riskBenefits, investment, resources, risk

• Select the best group of programmesSelect the best group of programmes• Select Projects to deliver the programmesSelect Projects to deliver the programmes• Stop as many unapproved projects as you canStop as many unapproved projects as you can• Monitor those programmes in benefit termsMonitor those programmes in benefit terms

Introduction & DefinitionsDifference between project and programme

managementUK government activities/world interest and

developmentsFour Very Common Problems:

OrganisationProject Portfolio ManagementGovernance Program Office/Centres of Excellence

Sources of Further Information

Governance

Program Governance is a minimum framework of rules necessary to manage the delivery of portfolios of projects in a consistent and reliable manner.

US Sarbanes-Oxley Act (SARBOX).

For Programs: Managing Successful

Programs

For Projects: PRINCE2

PMG’s view of Governance

Program Management Standard

Program Portfolio Management Standard

A Simple Project Process

Project Board Approves Project Implementation Document

Work Begins based on Approved Project Implementation Document

Stage up to placing a major purchase

Proceed to end of project

Project Closure Project Closure Report & Lessons Learned

Prepare & Submit Project Implementation Document

Stage Review

Governance: Prince2 Templates

Also have 6Sigma & Governance White Paper

Introduction & DefinitionsDifference between project and programme

managementUK government activities/world interest and

developmentsFour Very Common Problems:

OrganisationProject Portfolio ManagementGovernance Program Office/Centres of Excellence

Sources of Further Information

The KPMG program management survey

• Focused on the importance of the Program Office Focused on the importance of the Program Office

• The global research covered all industry sectors, The global research covered all industry sectors, with 50% of participants from the UK. with 50% of participants from the UK.

• Almost two thirds of participants experienced a failed Almost two thirds of participants experienced a failed project within the previous 12 monthsproject within the previous 12 months

• 98% of organisations with a mature program 98% of organisations with a mature program

office reported a 100% project success rateoffice reported a 100% project success rate

Program Office

Program Office Roles

• Project registerProject register– up to date point of referenceup to date point of reference

• VisibilityVisibility– program and project reportingprogram and project reporting

• Methodology & governanceMethodology & governance– maintaining appropriate processes and proceduresmaintaining appropriate processes and procedures– ownership & Support of the methodology ownership & Support of the methodology

• Resource allocation and prioritisationResource allocation and prioritisation– the right people doing the right workthe right people doing the right work

• Project closureProject closure– and keeping them closedand keeping them closed– Lessons learnedLessons learned

• Portfolio ManagementPortfolio Management– the process for program & project selection Education and the process for program & project selection Education and

trainingtraining– Appropriate levels for the project and programme Appropriate levels for the project and programme

management communitymanagement community

Benefits of a Program Office

• Very rapid progressVery rapid progress• Quick winsQuick wins• Reduced riskReduced risk

– Short termShort term– Long termLong term

• Best practice inputBest practice input• VisibilityVisibility• ConsistencyConsistency

Program OfficeProgram Office

Management

Information

Portfolio

Management

Exception

Management

Program Delivery

& Control

Knowledge

Management

Introduction & DefinitionsDifference between project and programme

managementUK government activities/world interest and

developmentsFour Very Common Problems:

OrganisationProject Portfolio ManagementGovernance Program Office/Centres of Excellence

Sources of Further Information

Further Sources

• ProgM - The Programme Management Special Interest GroupProgM - The Programme Management Special Interest Group– Register for Newsletter and invitationsRegister for Newsletter and invitations– The Project Selection and Benefits Management InitiativeThe Project Selection and Benefits Management Initiative– Free Evening events and other ConferencesFree Evening events and other Conferences– The Programme Management websiteThe Programme Management website– Programme Management Maturity ModelProgramme Management Maturity Model

• www.e-programme.comwww.e-programme.com

PPSO SIGPPSO SIG http://www.ppsosig.co.uk/index.htmlhttp://www.ppsosig.co.uk/index.html

PMI Program Management StandardPMI Program Management Standard http://http://www.pmibookstore.org/PMIBookStorewww.pmibookstore.org/PMIBookStore

Office of Government CommerceOffice of Government Commerce• www.ogc.gov.uk/index.asp?id=38www.ogc.gov.uk/index.asp?id=38

• The Program Management Group plcThe Program Management Group plc• www.pm-group.comwww.pm-group.com

Sources of Information

Good Luck Good Luck with your with your

programmes and programmes and your projectsyour projects