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Best Practice in Programme Management

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Presentation on theme: "Best Practice in Programme Management"— Presentation transcript:

1 Best Practice in Programme Management

2 Introduction Introduction & Definitions Difference between project and programme management - activities/world interest and developments Four Very Common Problems: Organisation Project Portfolio Management Governance Program Office/Centres of Excellence Sources of Further Information

3 Introduction & Definitions
Introduction & Definitions Difference between project and programme management - activities/world interest and developments Four Very Common Problems: Organisation Project Portfolio Management Governance Program Office/Centres of Excellence Sources of Further Information

4 Programme Management Cross Project Project Benefit Portfolio Business
Links Resources Business As Usual Project Portfolio Management Benefit Management A Project A Project A Project A Project Oh no, another project A Project A Project A Project A Project

5 Programmes vs Projects
More complex interface with the strategy 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 Programme risk management starts before projects start and continues after the last project has closed (e.g. operations might not use the deliverables.) 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. 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.

6 Some Current Initiatives
PMI Program Management Standards APM Program Management Qualification Managing Successful Programmes Refresh Major UK Government Investment Programme Management Maturity Model

7 Introduction & Definitions
Introduction & Definitions Difference between project and programme management - activities/world interest and developments Four Very Common Problems: Organisation Project Portfolio Management Governance Program Office/Centres of Excellence Sources of Further Information

8 Roles and Responsibilities
These boxes show roles. There doesn’t have to be a separate person for every role, though some are mutually exclusive – executive, manager, assurance. We talked earlier about scaling, if the programme is small, familiar and low risk, the Programme Executive, Change Manager, and Technical Design Authority roles could be all assigned to one person. On a big complex high risk programme you might have a different person for each of these roles.

9 This slide demonstrates a typical organisational structure and how the program and project managers sit alongside this. Senior Management team Silo's Program and Project Managers Projects are delivered by different people in the departments Problem – As the line manager owns the resource they will delegate 1 weeks work to an individual resource (Amy). Now a project manager also gives her a weeks worth of work and another 2 project managers give another weeks worth each. Therefore there is 4 weeks worth of work to achieve in only 1 week. Who decides? The line manager can pull rank at this point or the project manager that shouts loudest may win the resource. This isn’t prioritised and may not be the most effective use of the resource for the organisation as a whole. What is the impact of this decision? Impact – resource overloading and conflict This is not realistic – we have known from the 1980’s that a single project methodology can’t be applied to a program so we need something that is based on resources and not task.

10 Distributing Work Delegation simplified
Program Manager delegates to project manager who delegates to functional manager who assigns a resource

11 A single delegation Agreed and audited scope, timing,
budget, documents Delegator Automatic updates of latest plans Delegatee

12 Direct Update Model Project Managers Program Manager Team Leaders
This demonstrates the delegation flow within an organisation which Hydra automatically updates. Hydra enables the information to filter back up through the path it travelled down rapidly. Team Leaders Team Members

13 The Loan Model If we now introduce a PSO or a Resource Pool Manager This complicates the situation as project managers have to request resources to be seconded or loaned to their projects

14 Delegation and Loan If we grow the scenario, it pretty soon gets rather complicated. This is what happens in an organisation. Fortis bank who had 5 levels of delegation across 2500 users wrote a routine to draw their delegation links. The printer could not cope.

15 Introduction & Definitions
Introduction & Definitions Difference between project and programme management - activities/world interest and developments Four Very Common Problems: Organisation Project Portfolio Management - Governance Program Office/Centres of Excellence Sources of Further Information

16 Portfolio Management 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 companies measure benefits? no yes Do Programmes Deliver Benefits? deliver no benefit Do some 75% deliver benefit Forrester’s 2001 research tells a similar story, stressing that “[Programme] Prioritisation tops the list of CIO’s challenges” 25%

17 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

18 In order to make any change within an organisation you need to understand where you are at the moment and where you would like to be. This creates a ‘gap’ that will then be bridged through formulating a strategy. There are many ways to skin a cat, so the Program Selection Team determine the program to follow: e.g. Devon 999 – should they do this on a local or central scale? Cost vs Customer service? Continue to reap benefits and harvest change.

19 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)

20 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

21 Benefit Management Cycle

22 A Benefit Management Cycle
Set a Strategy – the goals Request Programme Proposals Contender Programmes Analyse each Contender Programme Cyclic Review of all current and contender programmes Scenarios Mandatory, Important, Should do, Could do Benefits, investment, resources, risk Select the best group of programmes Select Projects to deliver the programmes Stop as many unapproved projects as you can Monitor those programmes in benefit terms

23 Introduction & Definitions
Introduction & Definitions Difference between project and programme management - activities/world interest and developments Four Very Common Problems: Organisation Project Portfolio Management Governance Program Office/Centres of Excellence Sources of Further Information

24 PMG’s view of 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 Projects: PRINCE2 Program Management Standard Program Portfolio Management Standard For Programs: Managing Successful Programs

25 A Simple Project Process
Prepare & Submit Project Implementation Document Project Board Approves Project Implementation Document Work Begins based on Approved Project Implementation Document Stage up to placing a major purchase Stage Review Proceed to end of project Project Closure Project Closure Report & Lessons Learned

26 Governance: Prince2 Templates
This approach has been available for some time. It is supported by tools such as Cascade and Primavera. In this approach each component team plan their own work using a tool such as MS-Project. Periodically, these plans are transmitted to a central location - such as the program Office - where they are poured into a great big pot and (hopefully) consolidated into a meaningful programme plan. Reports are then generated from the consolidated plan and distributed. Of course, nowadays such transmission is done electronically with (used to be floppy disks). Advantage - simple for the remote planners, relatively cheap software, allows use of popular desk-to tools such as MS-Project Disadvantages - very difficult to achieve consistency. If tasks and resources don’t have exactly the same name -> chaos and confusion. Also, unreliable - requires everyone to update their plans on the same timetable. Therefore requires a team of consolidators to resolve the chaos - slow and time-consuming - and output has to be interpreted giving scope for mis-communication. Also have 6Sigma & Governance White Paper

27 The KPMG program management survey
Program Office The KPMG program management survey Focused on the importance of the Program Office The global research covered all industry sectors, with 50% of participants from the UK. Almost two thirds of participants experienced a failed project within the previous 12 months 98% of organisations with a mature program office reported a 100% project success rate

28 Program Office Roles Project register Visibility
up to date point of reference Visibility program and project reporting Methodology & governance maintaining appropriate processes and procedures ownership & Support of the methodology Resource allocation and prioritisation the right people doing the right work Project closure and keeping them closed Lessons learned Portfolio Management the process for program & project selection Education and training Appropriate levels for the project and programme management community

29 Benefits of a Program Office
Very rapid progress Quick wins Reduced risk Short term Long term Best practice input Visibility Consistency

30 Program Office Knowledge Portfolio Program Delivery Exception
Management Information Portfolio Exception Program Delivery & Control Knowledge

31 Sources of Information
Further Sources Sources of Information ProgM - The Programme Management Special Interest Group Register for Newsletter and invitations The Project Selection and Benefits Management Initiative Free Evening events and other Conferences The Programme Management website Programme Management Maturity Model PPSO SIG PMI Program Management Standard Office of Government Commerce The Program Management Group plc

32 Example This model proved so successful and useful in the IT industry that it has been used as the basis for many other maturity models. The basic idea behind its derivatives is shown in simplistic form in the following diagram, expressed in terms of project management maturity. Source-

33 Overview of the Excellence Model The Model is an over-arching, non-prescriptive framework based on nine criteria/ITEMS. Five of these are 'Enablers' and four are 'Results'. The 'Enabler' criteria cover what an organisation does. The 'Results' criteria cover what an organisation achieves. 'Results' are caused by 'Enablers'. Best results with respect to Performance, Customers, People and Society are achieved through Leadership driving Policy and Strategy, that is delivered through People Partnerships and Resources, and Processes. The Direction arrows emphasise the dynamic nature of the model. They show innovation and learning helping to improve enablers that in turn lead to improved results. Source-

34 RADAR System in Projects has the following elements: Results, Approach, Deployment, Assessment and Review.                                                                                                                                                                                          Source-

35 Example-1 Source-

36 Example Source-

37 Leadership excellence is one of the most critical challenges facing organizations today. Most top leaders leave their positions in three years or less under duress, even when they have had highly successful track records in previous jobs. Companies across the globe are in leadership succession crises, trying to find and/or develop sufficient leadership talent. Source-

38 Example Source-


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