1 Introduction

1.1 PURPOSE OF THIS GUIDE

Today's organizations are subject to continual change. There are often many, dynamic and contradictory drivers for change, including innovations in technology, working practices (for example, outsourcing and partnerships), mergers, increased demands from regu lation and, for the public sector, delivery of policy driven by changing political parties and/or ministers. Whatever the organization, wherever it is located and however it is structured, the rate of change is increasing.

Organizations that have learned how to transform themselves through effective leadership and strategic contro l are more likely to survive and prosper. Programme management is increasingly being recognized as a key tool to enable organizations to deliver their strategy and manage that transformation.

Managing Successful Programmes (MSP) represents proven good practice in programme management in successfu lly del ivering transformational change, drawn from t he experiences of both public and private sector organizations.

This guide provides:

• An adaptable route map for programme management, bringing together key principles, governance themes and a set of interrelated processes to facilitate the delivery of business transformation

Advice on how these programme management principles, themes and flow processes can be embedded, reviewed and applied, to ga in measurable benefits from business change.

The MSP framework is based on three core concepts as shown in Figure 1.1. These are:

• MSP principles (outer ring) Derived from lessons learned in programmes that had both positive and negative results. They represent common factors that underpin the success of any programme of transformationa l change.

• MSP governance themes (second ring) An organizat ion's approach to programme management needs to be defined, measured and controlled. The governance themes

allow organizations to put in place the right leadership, delivery team, robust organization structures, controls and control information (e .g. blueprint, business case, quality and assurance strategy), giving t he best chance of delivering the planned outcomes and realizing the desired benefits.

• MSP transformational flow (inner circle) The flow provides a route through the lifecycle of a programme from its conception through to del ivering the new capability, transit ioning to the desired outcomes, real izing the benefits and finally on to the close of the programme.

This gu ide is intended primarily for those who are involved in the direction, management, support and delivery of programmes. It is presented as a gu ide for programme managers, business change managers (BCMs) and programme office staff. It also provides guidance for leaders and programme sponsors who are also known as the senior responsible owners (SROs) of programmes of change.

1.2 WHAT IS A PROGRAMME?

In MSP, a programme is defined as a temporary, f lexible organization created to coord inate, direct and oversee the implementation of a set of related projects and activities in order to del iver outcomes and benefits related to the organization's strategic objectives. A programme is likely to have a life that spans several years.

A project is also a t emporary organ ization, usually existing for a much shorter duration, which will deliver one or more outputs in accordance with an agreed business case. A particu lar project may or may not be part of a programme.

Programmes deal wit h outcomes; projects deal with outputs. Programme management and project management are complementary approaches. During a programme lifecycle, projects are initiated, run and closed. Programmes provide an umbrella under which these projects can be coordinated.

5

6 I Part 1 Introduction and programme management principles

Defining a Programme

Identifying a Programme

Delivering the Capability

Closing a Programme

Realizing the % Benefits

\~ 0'~-----l ·7 (I)~ '-----'1 ~ o-

Figure 1.1 MSP framework and concepts

Programme management does not replace the need for competent project direction and management. Programmes must be underpinned by a c?ntrolled project environment of effective direction, management. delivery and reporting disciplines that are common to all projects within a programme.

1.3 WHAT IS PROGRAMME MANAGEMENT?

MSP defines programme management as the action of carrying out the coordinated orga_nization, direction and implementation of a dossier of projects and transformation activities

Key Inner circle Second ring Outer ring

Transformational flow Governance themes Principles

(i.e. the programme) to achieve outcomes and realize benefits of strategic importance to the business.

Programme management aligns three critical organizational elements:

Corporate strategy

• Delivery mechanisms for change • Business-as-usual environment.

It manages the natural tension that exists between t hese elements to deliver transformational change that meets the needs of the organization and its stak~holders. It also manag~s the transition of the solutions developed and delivered by projects into the organization's operations, whilst maintaining

erformance and effectiveness. It does this by ~reaking things into manageable chunks (tranches) with review points for monitoring progress and assessing performance and benefits rea lization to

date.

Programme management provides a framework that integrates and reconciles competing demands for resources, providing a context and cont rol framework for the projects of the programme. It often involves changes to the culture, style and character of organizations. The people aspects of change must be recognized and accommodated if the programme is to succeed.

1.4 WHY USE PROGRAMME MANAGEMENT?

Where there is major change there will be complexity and risk, many interdependencies to manage and conflicting priorities to resolve. Experience shows that organizations are likely to fail to deliver change successfully where:

• There is insufficient board-level support

• Leadership is weak

There are unrealistic expectations of the organizational capacity and abi lity to change

• There is insufficient focus on benefits

There is no rea l picture (blueprint) of the future capability

• There is a poorly defined or poorly communicated vision

The organization fails to change its culture

• There is insufficient engagement of stakeholders.

Adopting a programme management approach such as MSP provides a structured framework that can help organizations avoid these pitfalls and achieve their goals.

Organizations make choices as to how they w ill manage their activities and need to decide on the most appropriate approach to successfully deliver their business goals. In particular they need to ask:

• Is this a portfolio of change programmes and projects that needs to be coordinated corporately?

• Is this a single programme of business change implemented through the coordination of several projects and business activities?

Introduction I

Understanding the nature and sca le of the proposed change activities, and also the context of the organization(s) owning the benefits, will be essential for making this decision.

For example, bui lding a new school may be a straightforward project for the construction company carrying out the work, with the output being the completed bui lding. However, for the education authority, it may be part of a programme, where the building is merely one of several different interdependent outputs, which together will ensure the longer-term benefits of providing improved education and recreation in a particular community.

In this example, the portfolio would be held by the government department responsible for education, and would be aimed at delivering a strateg ic objective to raise standards of education nationally.

Appendix B looks at the key differences between portfolios, programmes and projects in more detail.

1.5 THE PROGRAMME MANAGEMENT ENVIRONMENT

A programme is a major undertaking for most organizations, meaning significant funding and substantia l change for the organizations and individu!=!IS involved. Figure 1.2 shows a typical environment for programme management.

The organization's corporate strategies, initiatives and policies are influenced and shaped by both the internal and the external environment. Programmes are then defined, scoped and prioritized to implement and deliver the outcomes required. Programmes in turn in itiate, monitor and align the projects and related activities that are needed to create new products or service capabilities to effect changes in business operations. The projects wil l deliver the required outputs and capabi lity and transition them into operations to achieve the outcomes. Fina lly, the full benefits of the programme can be realized and business transformation wi ll have been achieved.

Even as programmes are in the process of implementing changes and improvements to the target operations, they may need to respond to changes in corporate strat egies or accommodate new initiatives or policies. A continual process of realignment is required to ensure that the programme remains linked to strategic objectives.

7

8 I Part 1 lnt d · ro uctlon and programme management principles

Internal or external environment (political: economic, sociological,

technological, legal, environmental)

Influence and shape

Strategies, policies, initiatives and targets

efine, scope and prioritize

Programmes

Initiate, monitor and align

Project and related activities create new capabilities

Deliver and implement

Transition delivered and outcomes achieved

Transformed operations and services enable benefits realization

Figdur~ 1.3 shows some of the drivers for change an t e areas that may be affected by h and A d' c ange,

. ppen IX B looks in more detail at the drrvers. f~r- c~ange that are likely to contribute to the Initiation of a transformational chang programme. e

1.6 TYPES OF PROGRAMME

A programme can be triggered in a number of ways:

• Vision-led programme:

• Has_ come into existence to deliver a clearly defmed vision that has been created and is sponsored by the top of the organization

• Tends to b~ top down in approach, with cross-~unc_tJOnal implications for the organization's operations

• Entrepreneurial programmes developing ~ew pr~ducts and services, that focus on mnovatlo~ or strategic opportunity offered by the business environment

Figure 1.2 PT< ogramme management environments

• In the p.ublic sector, this could be the translation of political priorities into a pro_gramme which will refine and deliver the des1red changes

• Emergent programme:

Adaptation needed to cope with changing markets

Changing or new strategic initiatives and policies

Random events, e.g. flood, disease, terrorism

Opportunities arising from mergers and acquisitions

Developments in t echnology

Figure 1.3 Drivers for change

Areas affected by change:

• relationships with stakeholders

• work patterns • culture

• business processes • roles and responsibilities

of individuals • organization structures • IT systems • supply chain • vendor relationships

Changes in economic environment

Improving the quality and delivery of products and services

Development s to achieve globalization

Requirements to comply with industry standards or legislation

Evolves from concurrent, individual projects that have grown within an organization. There is now recognition that coordination of the projects is necessary to del iver the changes and the desired benefits

• Is transitory, as it becomes a planned programme when its vision, context and direction have been defined and established

• Compliance programme: • May also be referred to as a 'must do'

programme The organization has no choice but to change as a result of an external event, such as legislative change Benefits may be expressed in terms of compliance, achievement and avoidance of negative implications rather than measurable improvements in performance.

In reality, most programmes have a mix of these characteristics, but it is helpful to understand the dominant characteristics of a programme as it will help to develop and optimize the priorities and approach. For example, the benefits for a compliance programme may focus on the avoidance of penalties.

High

Introduct ion I

1.7 PROGRAMME IMPACT

Programmes may be set up to deliver change in parts of an organization, across the entire organization, across more than one organization, or in the environment in which the organization operates. In deciding on the best approach to managing a programme it is useful to assess its likely impact on the organization, and this can be done by looking at the nature of the change a programme is expected to deliver. The impact matrix in Figure 1.4 shows how different types of programme have different impacts on the environment, and provides some examples of the changes they may deliver.

Some programmes wi ll be highly complex in nature, but have a reasonably well-defined expectation, i.e. there will be h igh levels of predictability in terms of outcome even though the journey may be costly and complex. On the other hand, change to societal behaviours over a long period, driven by po licy and leg islation, will have low levels of predictability due to the long timescales, and the cause and effects may not be fully anticipated as other societal trends develop. The programme impact matrix, together with the

Medium I Low I 1 I

••••••••••••••J•••••••••••••••••••L••••••••••••••••••~•••••••••••••••••

Specification-led

Business transformation

Pol itica l and societal change

Major engineering programmes, Globalization of technology e.g. Olympic park services

Complex products based on Adoption of technology that known design is new to the organization,

Large-scale technology e.g. ERP replacements Multi-organization delivery

·······-------- ·-- -r------- ·· -- -······ Implementat ion of approaches used in similar organizations, e.g. ISO adoption

Process change affecting technology and structures

Change to current legislation or policies

Increases or decreases to investment programmes

Predictable or clear stakeholder base

New products or services to existing market place

Changing hist orical working pract ices. values and structures

Supply chain changes, e.g. out sourcing of services

New legislation reacting to societal t rends

Legislative change to affect socio-economic behaviour

Changes to public service delivery models, e.g. health provision

©Crown copyright 2007 Repr duced under l icence from OGC

Figure 1.4 Programme impact matrix

Pioneering engineering techniques

Unproven technology implementati on

Specifi cation-led organizat ional change

Diversification of new products into new markets

Internal external and customer behaviour

Radical restructuring of supply chains

Changes to societal values and behaviour, e.g. criminality

Incentive-driven change to lifestyles and economic behaviour

Long-term societal effects, e.g. hea lth

9

10 I Part 1 Introduction and programme management principles

explanations below, can be used to decide whether an MSP approach is required or, if not, which programme management techniques could be useful in those circumstances.

management framework of MSP is primarily designed to cater for leading and managing transformational change.

The impacts can be:

• Specification-led Where the change being delivered is based on the making and delivering of new facilities, the programme will tend to be led by the specification of the outputs requi red - for example, a major capital construction programme. There will be relatively low levels of ambiguity about what the programme is to deliver but there may be high levels of complexity and risk in the delivery. The scope will be reasonably well defined and adjusted according to circumstances. MSP's approach

1.8 WHEN TO USE MSP

MSP is highly suitable for business transformation and political/societal change, being an approach designed to accommodate high levels of complexity, ambiguity and risk. Adopting a programme approach is not necessary w here something new is delivered within the existing business model. Incremental improvements

can be used in this type of programme but may need to be scaled down, as some of its elements may not be required.

• Business transformation Where the change is more focused on transforming the way the business functions (for example, implementing a new service partnership or moving into a new market) the programme w ill tend to be vision-led with desired outcomes and associated benefits. There is likely to be ambiguity about the overall implication of the changes; for instance, it may not be known how some parts of the organization will react. The greater the impact on customers and the markets, the greater are the levels of ambiguity and risk. MSP is designed to provide structure for such programmes.

• Political and societal change Where the change is focused on improvements in society, the level of predictability will be reduced, as there will be many uncontrollable external factors also at play. For example, a change that aims to improve the early education of pre-school-age children in order to increase their likelihood of making a more meaningfu l contribution to society when they leave f u ll-time education will not only take time to design and introduce but the implications for the students and the economy will not necessarily be controllable or predictable in the long term. The scope may need to be adjusted as ambiguities are clarified and the changes are delivered in steps (tranches) over a number of years. MSP is highly suitable for programmes with a high level of complexity, ambiguity and risk. The programme

to an existing product or service would not normally warrant a programme approach, nor is a programme relevant in organizing all the projects within an enterprise solely for prioritizing and allocating resources. Organizations have successfully used MSP, or elements of it, in such situations; however, the programme management framework of MSP is primarily designed to cater for leading and managing transformational change.

Programme management principles may be applied to any change, what ever the level of its focus or the nature of its outcomes, and can provide structure and process to support all types of change. However, it is important to remember that using programme management requires significant resourcing (including the provision of appropriately skilled and experienced individuals) with relatively high levels of funding. Therefore it is less likely such an approach will be needed in full for the specification-led programmes.

A programme is always planned and managed with an end in mind. Programmes are designed as temporary management environments that are expected to end. Changes to the drivers of the programme may mean the programme having to change its boundaries (e.g. re-plan an end date further into the future). This could happen several times during the life of a programme but it will always be managed as if it will end one day. However, if a programme drifts into becoming never-ending, then it is no longer a true programme but becomes another expression of operational management and is part of business as usual. In such cases, although elements of programme management may be employed, much of this programme management framework in MSP becomes less appropriate.

12 01 mpics is a good example of The London 20 . y d to change its impact and

mme deslgne h a progra f one tranche to anot er . . t moves rom . d focus as I h ogramme can be Vlewe as In simple terms t e pr

three tranches: . . . . che is largely spec1f1cat1on-led,

• The frrst tfran be ing on the construction of with the ocus the Olympic facilities in east London.

d tranche started w hen much of t he • The ~ec:on was completed and t he focus

cons ~to business read iness for the Games, ;o~;ning the complex operational model

esl ld be needed to manage the Games. that wou h G ill This tranche completes before t e ames w be held.

• The third tranche begins aft~r t he Gam~~· t he with the focus on t he OlympiC l_egacy a . achievement of susta inable socio-economiC change and benefits as a resu lt of t he Games.

Introduction I 11

1.9 BEST MANAGEMENT PRACTICE GUIDANCE

MSP is part of a portfolio of best-practice publications (known collectively as Best . Management Practice or BMP) aimed at h~lprng organizations and individuals ~anage proJects, programmes and services consistently and effectively (see Figure 1.5) . MSP can be used in harmony with other BMP products, and international or internal organizati?n standar~\ Where appropriate, BMP guidance IS sup~o.rte y a qualification scheme and accredited t:a~nrng an: consultancy services. All BMP guidance IS ~nte_nde to be tai lored for use by individual organ lzatrons.

BMP publications include:

t Of Portfolios (MoP™) Portfolio • Managemen h management concerns the twin issues of ?w to do the 'right' projects and programm~s In t he context of the organ ization's strateg l ~ . objectives, and how to do them 'corre_ctly rn terms of achieving delivery and benefi~S at a . collective leve l. MoP encompasses c_onslderatl?n of the principles upon w hich effectl~e p~rtfoho

management is based; the key ~ractKes In the portfo lio definit ion and delivery cycles, including examples of how they have been

I Glossary

[ Guidance

Models J

8 - r-- -Management Portfolio, r M anagement

of Value Programme Portfolio, of Risk (MoV™) and Project Programme (M_o_R<!i)

Offices and Project (P30®) I Management

Maturity Model

j (P3M3®)

( Portfolio management (MoP™)

l I I

J PRINCE2e ( Programme management (MSPe) Maturity

I Model

I

J (P2MM)

( Project management (PRINCE2®)

l \.

Figure 1.5 MSP's relationship With other es a . . 8 t M nagement Practice gutdes