program management and leadership

Program Management & Leadership

A Point of View

By Tom Tiede


Key points highlighted in this presentation:

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• A program can consist of multiple phases, projects, and work streams

• The primary differences between Program Management and Project Management is the depth of detail and scope of responsibility

• The value of Program Management is to provide leadership, simplify complexity, reduce risk, and achieve results

• Complexity and risk of a program are difficult to avoid when seeking significant change

• And, complex projects often fail when you fail to manage complexity…and, the cost of failed expectations is higho A common pitfall is the failure to align project roles

with specific names, specific deliverables, clear time commitments, and, ultimately, results

o Another common pitfall is misunderstanding the need and value of aligned information

• Success of a complex DC implementation is difficult unless managed as a program with strong leadership, structured communication, and cross-functional methodologies and deliverables

• A Program Management Office (PMO) requires both the “right brain” soft skills of Program Leadership and the “left brain” hard disciplines of Program Coordination

• A Program Leader acts more like a coach than a cop

• And, we apply soft skills, hard disciplines, and proven tools to avoid common pitfalls and achieve business results

• The degree of Program Management needed is proportional to the complexity of the business solution and business stakeholder group

• So, you cannot take a “one size fits all” approach… instead, you tailor our approach based on need

• The overall approach is simple: Initiate, Plan, Manage, Close

• And, the “secret sauce” is a rigorous communication process to avoid common pitfalls

A program can consist of multiple phases, multiple projects, multiple work streams, or a combination of all of them.


ProgramNew DC

PhaseStrategy

PhaseDesign

PhaseImplementation

ProgramDC Network Rollout

ProjectDC1

ProjectDC2

ProjectDC3

Program

DC Implementation

Work Stream

Operations

Work Stream

Building

Work Stream

MHS

Work Stream

Systems

Work Stream

People

Multiple Projects

Multiple Phases

Multiple Work Streams

Illustrative

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The primary differences between a Program Manager and a Project Manager is the depth of detail and scope of responsibility.


Scope Detail

Broad

GranularNarrow

Aggregate

ProgramManager (examples)• Multiple phases• Multiple projects• Multiple work streams

ProjectManager (examples)• Single phase• Single project• Single work stream

ScheduleBudget

DeliverablesCoordinationIssues & Risks

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UltimateGoal

The value of Program Management is to provide leadership, simplify complexity, reduce risk, and achieve results (which is the ultimate goal).


ProvideLeadership

Bring Structure& Toolkit

Focus onObjectives

IntegrateSchedules

AlignTeams

Establish Accountabilities

ProvideCoaching

Streamline Communication

MaintainVisibility

ManageQuality

ResolveIssues

MitigateRisks

FacilitateChange

AchieveResults

Value of Program

Management

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Complexity and risk of a program is difficult to avoid when seeking significant change.


As Project Complexity and Risk Increase…

Breadth inScope

Size inScale

Inexperience of Team

Magnitude of Change

# of Stakeholders

Competing Initiatives

… so Does the Need for Increased Management,

Visibility, & Control

Complex projects often fail when you fail to manage complexity.6

What are the costs and risks of failed expectations?

Program Management & LeadershipPerform

ance

Time

PoorStart Up

DesiredSteady State

CurrentState

Implementation “J-Curve”

“Go-Live”

UnexpectedSteady State

PerformanceGap What are the costs?

• Higher implementation costs?• Delayed or lower business results?What are the risks?• Lost customers?• Tarnished reputations?

DesiredStart Up

Clearly, the stakes are high.7

This example scenario depicts the $ impact of labor inefficiency and lost gross profit when performance lags during a start up.


Example J Curve Month -2 Month -1 Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Total Loss ($MM)

Labor Inefficiency % 0% 0% 40% 30% 20% 10% 0% 0%

Loss Sales Opportunity 0% 0% 20% 15% 10% 5% 0% 0%

Labor Inefficiency $0 $0 ($0.24) ($0.18) ($0.12) ($0.06) $0.00 $0.00 ($0.60)

GP on Lost Sales $0 $0 ($1.25) ($0.94) ($0.63) ($0.31) $0.00 $0.00 ($3.73)

Cumulative Loss $0 $0 ($1.49) ($2.61) ($3.35) ($3.73) ($3.73) ($3.73) ($3.73)

Example Scenario: DC Labor

FTEs 250

$/Hour 15

Hours/Month 160

Monthly Labor $ $600,000

Example Scenario: Gross Profit

Annual Company Revenue $1,200,000,000

Gross Profit @ 25% $300,000,000

Distribution Centers (DCs) 4

Gross Profit (GP)/DC $75,000,000

GP/DC/Month $6,250,000

How do you minimize this loss?

“Go Live”

Current State Steady State

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Common reasons programs fail or under-perform:


Categories Common Pitfalls

Scope & ObjectivesUnclear, misunderstood, differing points of view, moving target, creeping, lack of change control, not measured (or measurable), results not tracked

Approach & MethodologyUnclear, siloed, misaligned across teams (e.g. gaps or redundancies), not followed, too rigid, too linear, lack of continuity across phases, ignoring risk

Deliverables & QualityUnclear, misaligned (e.g. gaps or redundancies), too detailed, too high-level, lack of ownership, incorrect, inconsistent quality, late

Roles & ResponsibilitiesUnclear, too narrow or too broad in scope, not communicated, not assigned, not filled, misaligned, insufficient skills, lack of accountability

Planning & SchedulingUnclear, incomplete, too aggressive, not integrated, too high level, too detailed, progress not tracked, assumes perfection, no contingency

Budgeting & Cost ControlUnclear, under-estimated, not tied to business case, lack of visibility, lack of financial control, no contingency

Knowledge & ExperienceLimited, not shared, not developed during project, not confirmed, lack of empowerment, lack of continuity across phases, incomplete transition

Issues & Resolution Unclear, unknown, lack of owner, lack of progress, linger too long

Communication & VisibilityUnclear, siloed, not targeted or tailored to audience, too much equals noise, inaccurate, incomplete, hiding or delaying unpleasant news

Priority & SponsorshipUnclear, competing initiatives, insufficient stakeholder & organizational awareness, change in business priorities, change in executive sponsors

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As an example, a common pitfall is the failure to align project roles with specific names, specific responsibilities, time commitments, and results.


Roles(Organization Chart)

Time(Resource Plan)

Responsibilities(RACI Chart)

How much time is being allocated to each team member?• Resource Name • Hours on Project by Time Period

Have they been assigned specific responsibilities and are they qualified to do the work?• Specific Responsibility by Name• Deliverables expected by Name

Who is on the project?• Diagram of Roles and Names• Project Reporting Structure

A name should appear in all 3 corners of this

triangle

Results

Are they getting the work done on time and with good quality?• Status reporting• Quality reviews

Individuals need to be accountable for

results

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Another common pitfall is misunderstanding the need and the value in aligning the flow information across the program.


Alignment of Inform

ation

The Status Report provides weekly information to project leadership for ACTION

The ADRA & the Integrated Schedule are the repositories of project information

Leaders need consistent and correct information to DIRECT and CORRECT

Meeting Notes & Daily Discussions provide the input to support the ADRA & Schedule

ProgramLeadership

CompanyLeadership

Project/Program Status Reports

Dashboard of Projects & Programs

Actions/Issues, Decisions, Risks, & Assumptions Log

(ADRA)

Discussions

Integrated Project/Program

Schedule

Meeting Notes

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Another common pitfall is the failure to organize as a fully integrated program. Success is difficult if managed as a series of independent activities and siloed work streams (as depicted below).


Typical DC Implementation Activities

Illustrative

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A more successful approach is to manage complex implementations as a program with strong leadership, structured communication, and cross-functional methodologies.


Cross Functional Planning, Scheduling, & Alignment on Roles & Responsibilities

Integrated Detail Design of Building, Equipment, Systems, Operations, & Organization

Itemization, Purchasing, & Reconciliation of Sourcing Responsibilities

Integrated Testing & Issue Resolution

Integrated Training & Skill Building

Deployment Planning & Operational Support

Full Transition & Achievement of Anticipated Business Results

Cross Functional Schedule Coordination, Issue Resolution, & Communication

Initiate/Plan

Design/Select

Procure

Test

Train

Deploy/Support

Realize

Build

Illustrative

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A Program Management Office (PMO) requires both Program Leadership and Program Coordination.


Program Leadership:Responsible for leading the overall program and the team of individual work stream leaders

Program Coordination:• Communication – program level status reporting, issue

resolution, risk planning, & knowledge management• Program Schedule - integrated schedule maintenance &

coordination across work streams• Financial Management – program budget maintenance,

monitoring, & financial reporting

Program management is a structure often consisting of more than one individual.

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Illustrative

Program Management Leadership and Coordination are like two sides of the brain that naturally interact in order to be effective.


Left BrainLogicFactsFiguresSequence

Right BrainEmotionIntuitionCreativity

Holistic Thought

ProgramCoordinationTools & StructurePlans & Schedules

Roles & ResponsibilitiesDeliverables & Progress

Activities & IssuesMeetings & Action Items

Notes & Reports“Laptop” Focused

ProgramLeadership

Clarity & ConvictionKnowledge & ExperiencePresence & Context

Creative & Forward ThinkingHolistic & Longer Term ViewCoaching & Team BuildingAccountability & Results“People” Focused

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Who is a Program Leader?


Cop or Coach?

Carrying a Law Book or a Playbook?

A Program Leader is more like a coach responsible for developing a solid game plan and leveraging the skills of the team toward the accomplishment of a

challenging but worthy goal.16

Great coaches are effective leaders because they master the hard disciplines and soft skills needed to achieve results.


“Hardware” of Leadership “Software” of Leadership

Instilling a disciplined & proven approachClarifying everyone’s assignments

Building skills through practice & repetitionPreparing for the unexpected

Constructing the playbook & game plan

Crafting a creative & long term visionLeveraging talent & building a winning team

Demanding accountability of everyoneCalling the right plays at the right time

Focusing on the ultimate goal17

The approach to Program Management is to provide the leadership, discipline, and foundational principles and tools needed to avoid common pitfalls and achieve results.


Change Management

Program Quality Assurance

Risk & Issue Management

Financial Management

Program Schedule Management

Cross Functional Methodology Alignment

Communication & Knowledge Management

Program Organization Structure

Foundational Structure of Program Management Principles & Tools

Program Management:• Provides structure & discipline• Establishes expectations• Focuses on integration & communication

• Leverages skills• Mitigates risk• Drives results

Business Case Results

Each Project or Work Stream:• Focuses on individual responsibilities & interdependencies

• Aligns with program structure & objectives

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Business Solution Complexity

Business Stakeholder Complexity

A

B

C

DLow Degree of Complexity

High Degree of Program Leadership

High Degree of ProgramCoordination

High Degree of Coordination & Leadership

The degree of Program Management needed is proportional to the complexity of the business solution and business stakeholder group.


EquipmentSystemsOperationsScheduleExperience

Magnitude of Change# of Stakeholders

Alignment across LeadersAvailability of Resources

You cannot take a “one size fits all” approach…instead, you tailor your

approach based on need

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Simplify the Program Management process by breaking it into four basic phases.


Program Lifecycle

Initiate(Pre-Kickoff)

Plan(Post-Kickoff)

Manage(Primary Effort)

Close

Program Phase Objectives

• Launch the initiative• Confirm scope, objective, approach, deliverables, and business case• Prepare program materials and begin to organize the team for success• Set individual expectations across the initial team prior to kick-off

• Specify the schedule, deliverables, dependencies, roles, and responsibilities• Establish the structure for each work stream and cross-functional team• Orient new team members and establish the communication plan • Identify project risks and mitigation plans

• Establish a disciplined rhythm and maintain project momentum• Communicate on a consistent and effective manner• Maintain a high standard for quality deliverables and financial control• Mandate accountability across each project team member and leader

• Complete and confirm transition to the operations and support team• Confirm expectations and measurable results are met or exceeded

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The “secret sauce” to effectiveness is a rigorous communication process across work streams and throughout the lifecycle of the program.


Initiate

(Pre-Kickoff)

Plan

(Post-Kickoff)

Manage

(Primary Effort)

Close

(Post Go-Live)

Initiate

(Pre-Kickoff)

Plan

(Post-Kickoff)

Manage

(Primary Effort)

Close

(Post Go-Live)

Program ManagementLifecycle

The intent is to avoid common pitfalls by ensuring a high degree of communication, understanding, and accountability across teams and across phases of the program.

Program Management Deliverables Initiate Plan Manage Close

Program Start-up Checklist Complete Validate/Complete

Program Schedule Create Roadmap Integrate Detail Maintain/Communicate Confirm Completion

Program Organization, Roles, & Responsibilities Work Stream Leads All Maintain/Communicate Confirm Completion

Program Orientation & Logistics Communicate Communicate Orient New Members Roll off Team

Contact List Initial Contacts Broaden List Maintain/Communicate

Program Kick Off & Workshops Prepare Conduct

Actions, Decisions, Risks, Assumptions (ADRA) Prepare Template Populate Maintain/Communicate Confirm Completion

Business Case Review Confirm Monitor/Communicate Assess Results

Communication Plan Assess Create Maintain/Communicate Communicate Close

Program Charter Prepare Populate Maintain/Communicate

Program & Work Stream Status Reports Prepare Template Populate Communicate Confirm Completion

Risk Assessment Validate Update Maintain/Communicate

Steering Committee Report Prepare/Communicate

Quality Assurance Plan Assess Prepare Facilitate/Assess Validate

Project Budget Validate Update Maintain/Report Confirm/Close

Change Management Plan Evaluate Facilitate/Socialize Complete Transition

Program Close Checklist Communicate Validate/Complete

Checkpoint Reviews

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A summary of key takeaways for you from this presentation:

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• A program can consist of multiple phases, projects, and work streams

• The primary differences between Program Management and Project Management is the depth of detail and scope of responsibility

• The value of Program Management is to provide leadership, simplify complexity, reduce risk, and achieve results

• Complexity and risk of a program are difficult to avoid when seeking significant change

• And, complex projects often fail when you fail to manage complexity…and, the cost of failed expectations is higho A common pitfall is the failure to align project roles

with specific names, specific deliverables, clear time commitments, and, ultimately, results

o Another common pitfall is misunderstanding the need and value of aligned information

• Success of a complex DC implementation is difficult unless managed as a program with strong leadership, structured communication, and cross-functional methodologies and deliverables

• A Program Management Office (PMO) requires both the “right brain” soft skills of Program Leadership and the “left brain” hard disciplines of Program Coordination

• A Program Leader acts more like a coach than a cop

• And, we apply soft skills, hard disciplines, and proven tools to avoid common pitfalls and achieve business results

• The degree of Program Management needed is proportional to the complexity of the business solution and business stakeholder group

• So, you cannot take a “one size fits all” approach… instead, you tailor our approach based on need

• The overall approach is simple: Initiate, Plan, Manage, Close

• And, the “secret sauce” is a rigorous communication process to avoid common pitfalls

Thank You!

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