The Standard for Program ManagementPresented May 16, 2007ByGarry Flemings, PMPLorraine Henry, PMPRene Wickes, PMP, MBAForPMI Heartland Chapter

OverviewHistorical contextThe Structure of Program ManagementIntroduction to Program ManagementThe Program Management Life CycleProgram Management ProcessesApplying Program Management

Context1969, Project Management Institute formsToday, PMI with more than 200,000 members in over 150 countries, is the worlds foremost advocate for the project management profession. A vital and forward-thinking organization, PMI is comprised of 247 chartered chapters (www.PMI.org, Mar 4, 2007)1987, A Guide to the Project Management Body of Knowledge first publishedupdated in 1996 and 2004now approved as an American National Standard (ANS) by the American National Standards Institute (ANSI)

Context (contd)2003, Organizational Project Management Maturity Model published: helps organizations assess strengths and weaknesses2006, The Standard for Portfolio Management published2006, The Standard for Program Management published

StandardDefinition: something considered by an authority or by general consent as a basis of comparison; an approved model The Random House College DictionaryFor the standards in this discussion, the authority is PMI.These standards are approved models for your company to use in designing your processes.Good: We based our companys processes on PMI standards.Less meaningful: Our company uses PMI processes.

Portfolios, Programs, and ProjectsProgram Management, p 9

Project ManagementDefinition, project: A project is a temporary endeavor undertaken to create a unique product, service, or result. PMBOK Guide, p 5Definition, project management: the application of knowledge, skills, tools and techniques to project activities to meet project requirements. PMBOK Guide, p 8PMP, Project Management Professional: the professions most globally recognized and respected credential www.PMI.org, Mar 4, 2007

Program ManagementProgram: a group of related projects managed in a coordinated way to obtain benefits and control not available from managing them individually. Program Management, p 4Program management: the centralized management of a program to achieve the programs strategic benefits and objectives. Program Management, p 4

Portfolio ManagementPortfolio: a collection of components (i.e., projects, programs, portfolios, and other work such as maintenance and ongoing operations) that are grouped together Program Management, p 5You cannot not do portfolio management. Youre doing it!A portfolio always exists within an organization and it is comprised of a set of current initiatives. Program Management, p 6

Structure of Program ManagementChapter 1: IntroductionDefines program and program managementRelates program management to portfolio management, to project management, and to organizational planningIntroduces themes of program managementBenefits managementProgram stakeholder managementProgram governance

Structure (contd)Chapter 2: Program Life Cycle and OrganizationIntroduces a life cycle model of program managementRelates the themes from Chapter 1 to all parts of the life cycleDiscusses the phases of the life cycle in more detail

Structure (contd)Chapter 3: Program Management ProcessesBreaks the phases of the model into 36 processes.Similar: the PMBOK Guide breaks project management into 44 processes.Discusses each process in some detail.We wont cover them in this 75 minute period. We will cover the phases.

Part 2 - Program Life CyclePart 3 Program ProcessesProgram Life CycleProgram GovernanceProgram BenefitsProgram Stakeholder Management

Program ProcessesInitiatingPlanningExecutingControllingClosing

Divide into phases Process to move through the phasesCommon procedures for all projectsControls to ensure consistent application of proceduresDevelop and document program assumptions and decisionsManage program changeMeasure the success of individual projects and the programCapture Risk, issues, benefit measurement & lessons learnedOrganizationRoles & Responsibilities

* Program Governance Figure 2-2 page 18 The Standard for Program Management

1. Pre-Program Set up

2. Program Set up

3. Establishing a Program Mgmt & Technology Infrastructure

4. Deliver Incremental Benefits

5. Closing the Program

G

= Gating Review

G5

G3

G1

G4

G2

Mandate

Program Governance *

Program Life Cycle

1. Pre-Program Set up

2. Program Setup

3. Establishing a Program Mgmt & Technology Infrastructure

4. Deliver Incremental Benefits

5. Closing the Program

G

= Gating Review

G5

G3

G1

G4

G2

Stakeholder Identification

Identify Internal & External Stakeholders

Mandate

Identify Key Interests

Governance Initiation

Establish program

Develop Charter & Business Case

Secure Program Selection

Follow Project Selection Process

Benefits Identification

Identify & Quantify Business Benefits

Initiating Processes ID common benefits & dependencies ID benefits for each project/program ID resources ID project/program schedule Create program charter

Program Life Cycle

Benefits Analysis

1. Pre-Program Set up

2. Program Setup

3. Establishing a Program Mgmt & Technology Infrastructure

4. Deliver Incremental Benefits

5. Closing the Program

G

= Gating Review

G5

G3

G1

G4

G2

Derive & Prioritize Components

Derive Benefit Metrics

Stakeholder Analysis

Governance Set-Up

Analyze Key Expectations & Motivations

Align Program with Org Strategic Direction

Initial Risk Identification

Detailed Program Plan

Program Change Impact Analysis

Mandate

Planning Processes Define timeline and dependency flow chart Define Steering Committee and roles & responsibilities Define program management processes Define risk management Define communication plan

Establish Communication Preferences

Program Life Cycle

Benefits Planning

1. Pre-Program Set up

2. Program Setup

3. Establishing a Program Mgmt & Technology Infrastructure

4. Deliver Incremental Benefits

5. Closing the Program

G

= Gating Review

G5

G3

G1

G4

G2

Map Benefits into Program Plan

Establish Benefits Realization Plan

Governance Planning

Establish Benefits Monitoring

Stakeholder Planning

Stakeholder Risk Analysis & Risk Profiling

Assess Stakeholder Influence & Importance

Infrastructure Completed

Stakeholder Roles & Responsibilities

Establish PMO

Monitor & Control Framework Completed

Mandate

Systems & Communications Completed

Monitor & Control Resource Mgmt Communication Mgmt

Program Life Cycle

Benefits Realization

1. Pre-Program Set up

2. Program Setup

3. Establishing a Program Mgmt & Technology Infrastructure

4. Deliver Incremental Benefits

5. Closing the Program

G

= Gating Review

G5

G3

G1

G4

G2

Monitor Components

Maintain Benefits Register

Report Benefits

Assess Program Changes and Impact to Stakeholder

Maintain Stakeholder Communication

Monitor Stakeholder Influence & Importance

Initiate Projects

Stakeholder Monitor & Control

Assess Risk and Initiate Change

Ensure Adherence to Policy

Mandate

Governance Monitor & Control

Executing Process Controlling & Monitoring

Program Life Cycle

Benefits Transition

1. Pre-Program Set up

2. Program Setup

3. Establishing a Program Mgmt & Technology Infrastructure

4. Deliver Incremental Benefits

5. Closing the Program

G

= Gating Review

G5

G3

G1

G4

G2

Consolidate Coordinated Benefits

Governance Transition

Transfer the On-going Responsibility

Stakeholder Transition

Transfer the On-going Responsibility

Execute Closure

Mandate

Complete & Archive Documentation

Lessons Learned

Closing Process Document Lessons Learned Ensure each project completes all tasks Establish on-going benefits monitoring Communicate closure to Steering Committee

Applying Program ManagementInitiatingSales Program Company A wants to:Refocus remote offices processes to be more sales and marketing drivenTransfer administrative process to main office Reassign remote office staff to focus on sales and marketing responsibilitiesResourcesProduction Business Technical

Program Life CycleProgram Management, p 9

Applying Program ManagementScope of Project ATo administerThe payment of resourcesIn a way that:Centralizes administration in the Main OfficeAllow for Remote Office inputProvides electronic reports and paymentsUtilizes a secure, reliable technology platformLeverages opportunities to realize increased administrative efficiencyAvoids adverse impact on expensesSupports audit processingSo that Payment of resources timely and accurately and service levels are maintained.As measured byReduction in staff and expenses by $xxx,xxx

Applying Program ManagementScope of Project B Eliminate XYZ SystemToEliminate Application System XYZIn a way thatReduces system redundanciesSupports processing of data in new technology compliant systemAligns with objectives of Projects C and DSo thatMaintenance system costs are reducedAs measured byElimination of system costs

Applying Program ManagementScope of Project D Service and SupportTo:Maintain viable production systemsIn a way that:Supports production online and batch systemsResolves outstanding service and maintenance issues So that:The application system provides on time availability of on-lines and reportingAs measured byReduction in number of production support itemsIncreased Data Quality

Program Organization

NameTitle

NameTitle

NameTitle

NameTitle

NameTitle

NameTitle

Team Title

Name

Company Name

Company NameDepartment Name

Program Board

Initiating Sponsor Sustaining SponsorIT Vice PresidentBusiness AdminstrationProduction Vice PresidentRemote Office Liason

Program Directors

BusinessIT

Program Manager(s)

BusinessIT

Subject Matter Experts (SMEs)

Production Sales Production SalesITConsulting

Initiative-based Project Resources

BusinessIT

Initiative-based Project Resources

TBD

Stakeholders

SalesProductFinancialInternal Audit

Weekly Program Control

Initiating SponsorProject DirectorsProject ManagerRemote Office Liason

Project Dependencies and Timeline

Risk Management

Risk Management

Project Reporting & Communication

Project Reporting & Communication

Program Change Control*Legend on Next Slide

Program Change Control

Program/Project Change Control

Lessons LearnedLESSONS LEARNED DOCUMENT Project Name/Number: Prepared by: Date: Scanning Project Managers 2/10/05 Customer/End User Group: Contact Name: Project Type (S/M/L): Sales Project Directors Large Business Unit: Project Manager: Project Sponsor: Sales Project Managers SUMMARY OF LESSONS LEARNED Project Background The primary purpose of the project was to . The project team consisted of a core group of approximately xx I/S and B/A associates, but included approximately yy other I/S and B/A associates who also had effort on the project. The overall estimate for the pproject was 100 I/S and B/A workdays combined. The baseline target release date for Project Z was 10/1/04. Major Challenges > Given the overall estimate for the project, there was an overwhelming amount of work to plan, organize and complete within the desired time frame. > The project was going to require changes to approximately 2 systems. > Because of overlapping time frames with another project additional coordinative activity would be needed to ensure the needs of both projects would be met. > Resource constraints within certain areas, like Accounting, that had significant amounts of effort on multiple projects and production efforts.

Lessons Learned1.Request Executive and Senior Management communication of established Corporate or Division priorities to align resources appropriately.2.Use dedicated, co-located I/S and B/A resources, if allowed.3.Modify the product process to overlap project stages as opportunities permit.4.Get off to an organized, motivated, strong start with Project and Stage kick-off meetings.5.Implement a project structure and project controls that facilitate good communication.6.Focus commitments on quality deliverables but also with emphasis on process improvements.7.Dont tolerate poor communication or poor performance.8.Properly plan, monitor and execute a well defined customer testing strategy.9.Manage external expectations through the use of project checkpoints.10.Make sure you have clearly defined expectations, roles and responsibilities for each key position on the Project Team.11.Give individual and team recognition as warranted.* If you want to finish ahead of schedule, you must plan to do so. It wont happen by accident.

Most of the items listed above do not require resources or buy-ins to use on any given project, and while some are specific to projects, most are applicable to all projects as well. Each of these items should at least be considered at the start of any project.

Lessons Learned

Lessons LearnedProject ExperienceRecommended Process ImprovementsOther Recommendations

Areas of Focus Technical ExperienceSchedule PerformanceCost PerformanceRisk ManagementTeam ManagementTool PerformanceRelease Performance

ClosingDifferences between Portfolio vs Program vs Project ManagementOverview of The Standard for Program ManagementDefined how a Program is structuredSuggested ways to apply Program Management

Q & APlease complete your evaluations!Your speakers are: Garry Flemings, Lorraine Henry, and Rene Wickes.

Reference Slides

Additional Sources for InformationA Comprehensive Technology Portfolio Management Process (Borland) http://www.borland.com/resources/en/pdf/white_papers/technology_portfolio_management.pdfA Concise Guide to Program Management: Fundamental Concepts and Issues by Mitchell Springer Program Management for Corporate Information Technology Leaders by John W., Ph.D. Rittinghouse and Bill Hancock Programme Management Demystified: Managing multiple projects successfully by Geoff Reiss The Program Management Office: Establishing, Managing And Growing the Value of a PMO by Craig J. Letavec Enterprise Programme Management: Delivering Value by David Williams and Tim Parr Program Management for Improved Business Results by Dragan Z. Milosevic, Russ Martinelli, and James M. Waddell U.S. Military Program Management: Lessons Learned and Best Practices by Gregory A. Garrett and Rene G. Rendon Middle Managers in Program and Portfolio Management by Tomas Blomquist and Ralf Muller

Additional Sources (contd)InternetProject Management Institute: www.pmi.orgHeartland Chapter: www.pmiheartland.orgAll PMI standards are available at many sources, including: www.pmibookstore.org

PresenterGarry Flemings, PMPTechnical Consultant, ASC Information TechnologyIT project management since 1992, in both government and industryPMP, 1998President, PMI Heartland Chapter, 2005email: garry.pmi@cox.net

PresenterLorraine Henry, PMPInformation Services Project Manager, Mutual of OmahaPMP in 1999President, PMI Heartland Chapter, 2004email: lorraine.henry@mutualofomaha.com

PresenterRenee Wickes, PMPProgram Manager, Hewlett-Packard CompanyMBA, 1996PMP, 2002President, PMI Heartland Chapter, 2007email: renee.wickes@hp.com

This SessionYoull know the relationship of The Standard for Program Management to the better known A Guide to the Project Management Body of Knowledge (PMBOK Guide).Youll know the structure of The Standard for Program Management.Youll have considered some ways to apply The Standard for Program Management to Heartland companies.

Sources of InformationThe Standard for Program Management 2006 Project Management Institute, Inc. Chapter 2 Program Life Cycle and Organization page 17 28Appendix E Benefits Assurance and Sustainment pages 87 89

Program governance provides formal program reviews hence the phases and processes to monitor the benefits and program process. Opportunity to evaluate program still supports corporate strategy and is providing expected benefits An organizational structure will be required that will bring the procedures and policies to support and deliver the program. (PMO)Governance will be managed by rolesExecutive SponsorProgram DirectorSteering committeeProgram ManagerProject MangersGovernance activities will occur throughout the phasesCommon procedures for all projects within the programControls to ensure consistent application of proceduresDevelop and document program assumptions & decisionsManage program changeMeasure the success of individual projects and programCapture risk, issues, benefit measurement and lessons learned

Pre-Program Set UpPurpose Establish program support, selection and approvalOutcomeApproval from a governing boardProgram charterAssigned Program ManagerID and commitment of key resources for planningPlan for the next phaseGovernance ActivitiesWorking to attain program selectionDefine program objectives and align with organizationDevelop business caseCreate Program CharterAppoint Program ManagerDevelop plan to initiate programBenefit ActivitiesIdentify business benefitsQuantify benefitsStakeholder ActivitiesIdentify stakeholdersDetermine stakeholder expectationsDetermine stakeholder interestBuild support for program selectionDetermine who is against the program

Program Set UpPurposeHow program is managedWhat are the key deliverablesOutcomeAuthorization to execute the program management planBasic program planning completedID of preliminary program teamGovernance ActivitiesAlign mission, vision & values to organizationDetailed program cost & schedule planConduct feasibility studiesRules for Make/Buy decisionDevelop Program ArchitectureComplete Business CaseCommunicate with Stakeholders & get supportBenefit ActivitiesDerive and prioritize benefitsDetermine benefit metricsStakeholder ActivitiesAnalyze key expectations and motivationsInitial risk identificationProgram change impact analysisEstablish a Program Mgmt & Technology InfrastructurePurposeEstablish infrastructure to support programOutcomeProgram team & program officeGovernance with approval and reportingFramework to monitor and control programFacilities and infrastructureIT systems & communication technologiesGovernance Activities:Continue to develop organizationEstablish program processes & proceduresSecure required program tools Determine reporting and trackingSecure program facilitiesBenefit Activities:Establish a benefits realization planEstablish benefits monitoringMap benefits into the program planStakeholder Activities:Establish communication preferences for each stakeholderAssess each stakeholder for influenceAssess each stakeholder for importanceDetermine stakeholder risk profileDetermine roles and responsibilitiesDeliver Incremental BenefitsPurposeInitiate individual projectsCoordinate deliverables to create incremental benefitsOutcomePlanned benefits realized or Decision made to terminate programGovernance ActivitiesMonitor & control projectsInitiate projectsEnsure adherence to governance/methodologyID environmental changes and asses benefit impactEnsure activities & dependencies are coordinatedID risks and ensure mitigation activitiesBenefit ActivitiesMonitor benefit componentsMaintain a benefits register (validate performance)Report BenefitsStakeholder ActivitiesAssess program changes sand impact to stakeholderMaintain Stakeholder communicationMonitor Stakeholder influence and importance

Closing the ProgramPurposeExecute a managed project closureOutcomeTransition of benefits monitoringProgram is completeGovernance ActivitiesReview status of benefits w/stakeholdersDisband program organization & teamDismantle infrastructureDocument lessons learnedProvide feedback on out of scope changesStore program documentationManage transition to operationsBenefit ActivitiesConsolidate coordinated benefitsTransfer the on-going responsibilityStakeholder ActivitiesClose out with stakeholdersTransfer any on-going responsibilities

Applying Program ManagementDefine the scope of the program individual projects or another programExample Sales ProgramResource needs business, technical, production (field & HO)Program Life CycleEach project may start at the same time or at different times be on different scheduled installationsDefine how each project interacts with the other projectsDependencies this completed before this step/stage/phaseAre the projects needed at the same timeHow the benefits react together I.e. one before the next or togetherInstallation dependenciesResource needs by project/programWho needs whoDoes the resource move from one project to the next

Example Scope of Project ADefines problemHow to handle the solutionFinal product needHow to project is measured$ savingsHardware savingsProcedure savingsEliminationProject BElimination of systemBenefitsIntangibleHard $Cost AvoidancePersonnel savings/costsProject E Project Scope small fixesBenefitsData Quality impacting all projectsPerception of Remote OfficesPerception of Production ResourcesProject OrganizationDefine steering committee and reporting structureDefine StakeholdersSMEEach Project should have own org chartDefine process/procedures for communication and reporting (NOTE: roles/responsibilities docs) for each level StakeholdersExternal and Internal communicationProject teamsProject resourcesDefine processes for resource requests Who is neededWhen are they neededWhat will they be doingWorking with resource managers

Risk Management PlansDefine the risks for the program based on risks for each project/programRisks should look overall from a big picture/high levelFunctionalityResourcesStakeholdersPlanningCommunicationExternalInternal team, management, production support areaHow they relate to each projectDefine how you will handle the risks and who is the owner of the risksReview with SponsorsProject Review define risks for each project

Define approach for project control reporting changes to the program such as time, cost, scope, quality, and benefits Define control reporting examplePhases/Stages/DeliverablesTimeframe/work effort/costGeneral StatusMonitoring and controlAttending project control meetings for each projectDefine specific reporting methodologyUtilize a stop light approach (green, yellow, red)Weekly meetings with Project Managers (IT and Business)Participate in status meetings with projects in troubleOffer potential solutions to resolve issuesCommunicate to stakeholders/sponsors/key resources on status of various projectsMonitor project plans to identify when a project may be in trouble that will necessitate changes in approach to meet deliverables or to understand changes that effect overall project dependencies

ReportingIssues that need escalationFYI for project levelNext deliverables What was accomplished since last reportProgram ControlListing of all projects/multiple stages similar to project dependency chartOverall status of eachAt Program Control meetings with key resources/stakeholdersDefine the phase that the project is inReporting mechanism with stakeholders and managementReview changes in scope/costs/timeline

Program Change ControlReporting mechanism to stakeholders, sponsors, managementLets management know of projects on track, in temporary, or in need of help to get back on trackStop light approach Defines where each project is atStatusIssuesFollow-upsIdentifies areas where more resources neededIdentifies where crisis management may be neededProvides are for continual evaluation of changes in risk or determining where risk mitigation plans need to be implemented

Project Change ControlTracking changes to time, cost, quality, and benefitsRisk Buffer ManagementDefine process for requesting work effort from the risk bufferDefine approval process (project directors)Track utilization of risk bufferPending, approved, deniedProject Change ControlScopeBudgetaryChanges in benefits/CBA with result of changeTimePending change requestsItems not fully defined yetLessons LearnedProject BackgroundDefine Major/Minor ChallengesGather them as you go easier than at the end

Lessons LearnedSummarize at high level Define lessons in manner to be able to be shared with othersNOTE: *If you want to finish ahead of schedule, you must plan to do so. It wont happen by accidentStakeholders requested earlier finishPlanning without agreed upon scope changesOverall recommendationLessons LearnedTechnical PerformanceWhat worked/What didnt/Process improvementsSchedule PerformanceHow well did you maintain your scheduleCost PerformanceHow did you control costs on the projectAreas where cost went overMonitoring and ControllingRisk ManagementHow well did you maintain risksWhat steps of the risk mitigation plan had to be institutedTeam ManagementDid you have the resources when you needed/How did the resources performTools ExperienceTechnical - Cobol/JavaBusiness - Test Case reporting/Design MatrixProject Management -Open Workbench/Clarity/MS Project/SpreadsheetsRelease PerformanceWhat worked with the implementation/What didnt Process improvementsOverview of The StandardDefined what a Program isDiscussed the relationship to Project,Program and Portfolio ManagementDefined the Program Life CycleHow Program management focuses on Benefit, Stakeholder Management, and Governance Defined Program Life CycleProgram Governance by role and when it occursProgram Life CyclePre-Program Set Up(Initiating)Governance Initiation, Benefit Id, Stakeholder IdProgram Set Up (Planning)Define components of program, benefits associated with each, Timelines/Dependencies, benefit analysis, stakeholder expectations and communication processesProgram Management and Technology Infrastructure (Execution)Governance Planning (communications, monitoring & controls, How track benefits, Stakeholder risks & rolesDeliver Incremental Benefits(Control)Monitor & Control, initiate new projects in the program, monitor benefits, communication with stakeholdersClosing the Program (Closure)Document lessons learned, archive documentation, transfer benefit and stakeholder management support to on-going support areaApplying Program Management defined actual process of the Program Life Cycle