project and programme management are 2 different animals thomas walenta
TRANSCRIPT
Projects & Programs are two different animals, don't underestimate the gap
May 2015, London
Thomas Walenta, PgMP, PMP, PMI Fellow
Lions have not been used in warfare much, but served for public punishment
Lions live for 12-18 years Hunt in groups Hunting only takes a short time (3-4 hours a day) Hunting has to feed the group
Hindu God Narasimha: Great Protector
Short memory and lifeSupporting a familySuccessful hunting <50%Feared
Elephants have been used by armies to implement strategiesSurprise and shock - Impress by sheer sizeVery useful in logistics - transportAttack and kill
Elephants can be guided and led by humanshave a good longterm memory can live for 80+ years
Hindu God Ganesha: Lord of success and destroyer of obstacles
Long memory and lifeSupporting an ecosystemSuccessful in most casesRespected
A Study reveals a disturbing reality: even among projects that are delivered at least 90% on time & on budget, majority fails to
deliver on 'business expectations'
Business outcome expectations include
Delivery quality End-user adoption Business case
attainment Sponsor satisfaction
Challenged53%Succeeded
29%
Failed18%
Copyright The Corporate Executive Board (CEB), www.pmo.executiveboard.com, 2009 Study 'Project Managing Business Outcome'
The top-performing projects in terms of budget and schedule compliance attain on average only 53% of their business outcome expectations.
PMI's 'Pulse of the Profession' Reports reveal that benefits management is influencing success
Copyright PMI 2015 2015 Pulse of the Profession
Benefits management is the most relevant factor that distinguishes high vs. low performing organizations
Copyright PMI 2013 2013 Pulse of the Profession
#1 Gap: Success definition gapScope, budget, milestones = business benefits?
Successfull project delivered a product in time & budget
Successfull program achieved benefits and created value
A benefit is the 'desired result of an initiative undertaken to meet a need or solve a problem'
'Pre-project'
#2 Gap: Education gap Are Project Managers educated to transform business goals
to requirements and benefits?
• Project Manager‘s curriculums & certifications– Magic triangle scope/quality – cost – time– Soft skills to lead a team– Organizational skills – Technology
• Project life cycle covers part of total required life cycle– Business case, strategic alignment done before project– Requirements are part of business case development– Benefits often achieved after a project is delivered
costtime
scope
'Post-project'Project
• Benefits are specific to a business / a company• Benefits delivery is often seen as a primary task of middle management,
consulting companies or not addressed specifically
• 'Benefits' is found 24 times in PMBoK Guide 5th edition, but 129 times in PgM Standard 3rd edition, having benefits management and other processes and artefacts
• Prince2 mentions benefits in the business case and benefits review plan, but only MSP covers benefits management
• IPMA ICB does not have a focus on benefits management, instead offers success criteria for projects
• ISO 21500: projects contribute to benefits, which are created by operations (!)
#3 Gap: Methodology gapPM Standards and Methodology provide no real help to Project
Managers in delivering benefits
#4 Gap: Significant capabilities gapCapabilities of a successful program manager are different to
those of a good project manager
PMI Congress 2003 – Europe Paper Pellegrinelli, Partington and Young
Program Project
PlanControl Deliver
Scope / Quality
TimeCost
UnderstandCreate
Achieve
Strategy / Benefits
GovernanceStakeholders
#5 Gap: in/outward orientation gapProgram Management is outward focussed while Project
Management mainly deals with project internals
?Stake-holders
(sponsors)
Stake-holders(users)
Strategy
How to successfully to fulfill business expectations and deliver benefits to stakeholders?
Environment (society, jurisdiction, regulators, market etc)R
equi
rem
ents
Ben
efits
Program
Stake-holders
(sponsors)
Req
uire
men
ts
Stake-holders(users)
Strategy
Project Adeliverable
ScopeCostTime
Ben
efits
(sus
tain
ed)
Ben
efits
(con
solid
ate
d)
Project Bdeliverable
ScopeCostTime
Discrete benefit
BenefitsIdentfication
BenefitsAnalysis & Planning
Benefitstransition
Benefitssustainment
Benefits Delivery
Understand what has to be done in addition to project management - and how it can be accomplished!
Component C Discrete benefit
Environment
Based on PMI Standard for Program Mgmt, 3rd Ed.
Governance
Program Benefits Management transforms stakeholder requirements into sustained benefits
Based on PMI Standard for Program Mgmt, 3rd Ed.
BenefitsIdentfication
BenefitsAnalysis & Planning
Benefitstransition
Benefitssustainment
Benefits Delivery
Business Case Program
MissionDefine CSFs Measurement
Structure
Benefits Realisation
Plan
Define Program
ComponentsDefineKPIs Performance
Baseline
Start, monitor & transition
components
Evaluate KPIs
Monitor organizational environment
Program definition
Program benefits delivery Program closure
Transition Plan Verify
Transition
Operational tasks
Program Lifecycle
!Stake-holder
Engage-ment
Stake-holders(users)
Fill the key roles with the right people.
Environment (society, jurisdiction, regulators, market etc)
Ben
efits
Mgm
t
StrategyAlignment
Governance
Program Lifecycle
SLF4RelationshipManagement
SpecialistTeam
Program Management
SLF3Organizational
ChangeManagement
SLF2Architectual
Solution Board
SLF7Test &
TransitionManagement
SLF5Quality
Assurance / Risk
SLF6Program
MgmtOffice
SLF8Resource
Management
Oper-ations
Applic.Mainten.
User Help DeskProject 4
.........Project 1
Operational Layer Functions (Projects, Teams, Production)
Strategic Layer Functions
Project 3 Project 5
Project 6Project 2 Enduser
TrainingTeam
SponsorsStakeholders, e.g. Users
Business Steering Committee
Program Management System (PMS) ensures the linkage between involved and affected stakeholder groups and the integration among projects and with
ongoing tasks
SLF1BusinessStrategy
Source: PMI Global Congress Toronto 2005Paper Th. Walenta
#1 Success definition gap
#2 Education gap
#3 Methodology gap
#4 Significant capabilities gap
#5 In/outward orientation gap
How to understand that a lion is not an elephant
Strategy Alignment
Governance
Stakeholder Engagement
Benefits Realisation
Lifecycle Management
About 50% of successful projects deliver benefits
High benefits realization maturity impacts project
success