Presented by

Ruffin Veal III, MSPM, PMP

Project Management InstituteLa Crosse-Rochester Chapter

Rochester, Minnesota

September 16, 2014

Project Managementvs.

Program Management

Strategies for Transition Success

OutlinePresentation Overview– Program Management Assumptions– What is Program Management?– Program Management vs. Project Management– Project & Program Plan Integration– Program Management Hierarchy– Program Management Office Organizational Structure– Program Management Office Business Benefits– 5 Major Aspects of Program Management– Program Management Competency Model– Essentials of Effective PMO– PMO Roles/PMO Models– PMO Key Considerations/PMO Success Factors– PMO Capability Maturity Models– Key Goal and performance Indicators

Program Management AssumptionsProgram Management = Simultaneous Project Management

Program Management Plans = Combined Project Management Plans

Program Management Scope = Combined Project Management Scopes

Program Governance = Combined Project Governance

ARE ALL INCORRECT!

What is Program Management?Program managementis the coordinated management of interdependent projects over a finite period of time to achieve a set of business goals.

Coordinated management of multiple projects means that the activities of each project team are synchronized through the framework of a common lifecycle executed at the program level by the program core team.

Interdependent projects are those that have a mutual dependence on the output of other projects in order to achieve success. Program management ensures the dependencies between the multiple projects are managed in a concerted manner.

What is Program Management?A finite period means that a program is a temporary undertaking, having a point of beginning and the point of ending. A program is of limited duration, a one-time venture which begins with clearly defined business objectives, and ends when the objectives are attained.

Accomplishment of the stated business goals is the overriding objective of a program, and the ultimate responsibility of the program manager. Business goals include such things as capturing additional market share, increasing profit through sales and gross margin growth, and strengthening brand value through quality, features and customer support.

Program Management vs. Project Management

Program management is strategic in nature, while project management is tactical in nature.

Program management is entirely cross-functional, while project management focuses on a single function, or limited cross-functional alignment at best.

Program management integrates the individual elements of the projects in order to achieve a common objective.

Program Management vs. Project Management

Program Management vs. Project Management

Project Plan-Program Plan Integration

Source: CobiT 3rd Edition, Management Guidelines

Program Management Hierarchy Program Manager

Business Objectives and Program Strategy

Program Work Breakdown Structure

B

Program Management Hierarchy

Project A Project B Project C Project D Project E Project Plan Project Plan Project Plan Project Plan Project Plan Success Criteria Success Criteria Success Criteria Success Criteria Success Criteria Deliverables Deliverables Deliverables Deliverables Deliverables

Project Managers

Program Success Criteria and Integrated Project Metrics

Program Plan (Integrated Project Plans, Schedules and Budgets)

B

Program Management Office &

Organizational Structure GeneralManager

PMODirector

EngDirector

EngProj. Mgrand team

ProgramManager

ProgramManager

MrktngDirector

ManufDirector

FinanceDirector

QualityDirector

MrktngProj. Mgrand team

ManufProj. Mgrand team

Finance Proj. Mgrand team

Quality Proj. Mgrand team

Business Benefits of Program Management

Program management provides a competitive advantage for businesses that view and utilize it as a critical business function within their organization.

Integration of business elements. Program management is the mechanism by which the work of various operating functions within a company is integrated to create an effective business model, and executing business strategies more effectively than an uncoordinated approach.

Aligning business strategy to operational execution.  Program management can be viewed as the organizational “glue” that translates strategic business objectives into actionable plans and then manages the tactics to achieve the desired business results.  

Business Benefits of Program Management

Managing return on investment. Program management practices put a continual focus on the business aspects of developing products, services and infrastructure.

Accelerating time-to-money.  Time-to-money goals are optimized.  The program management model is built on the identification and management of the cross-project deliverables through an iterative and integrated development process.

5 Major Aspects of Program Management

Governance: Defining roles and responsibilities, and providing oversight

Management: Planning and administering both projects and the overall program

Financial management: Implementation of specific fiscal practices and controls

Infrastructure: The program office, technology, and other factors in the work environment supporting the program effort

Planning: Activities that take place at multiple levels, with different goals. The program plan is not a traditional plan

Program Management Competency Model

Customer and Market. This involves having a full understanding of the market or organization that the product, service or infrastructure capability is being deployed in to, and how it will be used by the customer and end user.

The better the program manager and his or her team can closely align the final solution with the customer’s needs, the more it will enhance the potential for customer satisfaction and the successful achievement of the business results intended.

Business and Financial.  This includes the ability to develop a comprehensive program business case that supports the company’s objectives and strategies, the ability to manage the program within the business aspects of the company, and the ability to understand and analyze the related financial measures pertaining to the product, service or infrastructure capability under development.

Program Management Competency Model

Process and Project Management.  The program manager must possess operational competencies, including project management methods and tools, to effectively manage the tactical elements of the program.

Another important aspect of this core discipline set is that of becoming proficient in the specific processes and practices of the company that the program manager is a part of.

  Knowing how things get done, the policies and procedures that must be adhered to and who must be involved and approve various aspects of their program are critical for the successful completion of every program.

Program Management Competency Model

Leadership. This is needed to effectively lead multiple cross-disciplined project teams that are a part of the program.

The program manager needs to have the capability to build, coalesce and champion the team to achieve product, service, and infrastructure solutions that will satisfy the company’s customers.

Elements of an effective Program Management Office

Program Management Office Roles

Program office management Resources coordination Budget administration and procurement Risk assessment Work products tracking and review Facilities administration Contracts administration Technical support liaison Training coordination Methodology and process support Issues management Communications management Status reporting management

Program Management Office Models

One size does not fit all– PMO drivers/business needs– PM maturity– Vision and goals of sponsor– Business/organization mission– Organization size– Number of projects– Political and cultural environment

Tactical vs. strategicInternal vs. external focusDepartmental vs. enterpriseSingle vs. multipleStaff vs. line organization

SUPPORT CONTROL

Program administrative support

PM standards, methodology, processes

Program Consulting and mentoring

PM coaching/training/certification

Integrated Program Reporting

Issue Tracking/Reporting

Master Program Schedule

Program Document Repository

PM tools and tools support

Program Audits

Cost and Schedule Control

Business Case

Program Approval

Program Prioritization

Program Management

Resource Management

IT Asset Management

Program Portfolio Management

Program Management Office Support/Control Model

Program Management Office Key Considerations

PMO charterCulture changeImplementation strategyStaffingMetrics/PerformanceSuccess factorsMaturity of Project Management Practices

Program Management Office Success Factors

Clear Charter– Creates clear expectations– Defines boundaries for implementation

Top-Down SupportBottom up Buy-inSponsor - Reporting to senior executiveStrong enterprise level representation Communication/PR– Promotion of services– Education of value– Performance metrics that demonstrate business and

customer value

Program Management Capability Maturity Models

Valuable tool for establishing PMO and help define objectives, charter, and processes Assess current statusCompare against best practicesDevelop strategy and road map for PMOHelp communicate vision and get buy inDifferent models (CobiT, OPM3, ISO 15504, CMM/CMMI)

Program Management Capability Maturity Models

Capability Maturity Model (CMM)

Capability Maturity Model Integration (CMMI)

Both CMM and CMMI define five distinct levels of process maturity based on Key Performance Areas (KPA’s). The KPA's of CMMI levels overcome the inefficiency of CMM levels to unearth significant architectural flaws.

Program Management Capability Maturity Models

Level 1 (Initial): The first level of both CMM and CMMI describes an immature organization without any defined processes, run in an ad hoc, uncontrolled, and reactive manner.

Level 2 (Repeat): Organizations that repeat some processes attain Level 2 CMM. Level 2 of CMMI however requires management of organizational requirements through planned, performed, measured, and controlled processes.

Level 3 (Defined): CMM Level 3 mandates a set of documented standard processes to establish consistency across the organization. CMMI Level 3 is an improvement of CMMI Level 2 and describes the organizational processes in standards, procedures, tools and methods.

Program Management Capability Maturity Models

Level 4 (Manage): CMM Level 4 requires organizations to attain control over processes by using quantitative statistical techniques. CMMI Level 4 demands likewise, but also identifies sub processes that significantly contribute to overall process efficiency.

Level 5 (Optimized): CMM Level 5 mandates use of quantitative tools and objectives to manage process improvement. CMMI Level 5 on the other hand focuses on continuously improving process performance through incremental and innovative technological improvements.

Program Management Office Key Goal Indicators

Increased number of programs completed on time and on budgetAvailability of accurate program schedule and budget informationDecrease in systematic and common program problemsImproved timeliness of program risk identificationIncreased organization satisfaction with program delivery servicesImproved timeliness of program management decisions

Program Management OfficeKey Performance Indicators

Increased number of programs delivered in accordance with defined methodology

Percent stakeholders participation in programs

Number of program management training days per program team member

Number of program milestones and budget reviews

Percent of programs with post-program reviews

Average number of years of experience of program managers

ConclusionUnderstanding Project/Program differences is essentialProgram Management maintains a enterprise level perspectiveOne size does not fit allPMO Support/Control model most usefulClear charter, top down support, & bottom up buy is key to PMO successCMM valuable framework for establishing and evolving PMOWell established models and key considerations are available

ReferencesRuss Martinelli -Intel CorporationJim Waddell -Tektronix, Inc

Aligning Program Management to Business Strategy

Program Management: Linking Business Strategy to Product and IT development

Program and Project Management: Understanding the Differences

The Program Strike Zone: Beyond the Bounding Box

Taming the Fuzzy Front End

Program Manager Roles, Responsibilities and Core Competencies

Achieving Common Leadership and Infrastructure through the Program Management Office

ReferencesIBM Developerworks Rational Library

Program Management: Different from Project ManagementMichael F. Hanford, IBM Summit Ascendant Methodologies

Karen Y. Lucus (PgMP), The Effective Program Management OfficeSetup, Management, Measure and Services

Oracle Corporation

An Oracle Whitepaper (May 2010) A Strategy for Governing IT Projects, Programs and Portfolios Throughout the Enterprise

TD Jainendrukumar, (2008) The Project/Program Management Office (PMO) Published in PM World Today - January 2008 (Vol. X, Issue I)

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