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Module 1Program Management Key Concepts

Program Management Key Concepts

Program Management OverviewIn this introductory module, we will define standard terms related to program management and will present concepts, approaches, and critical success factors that will be explored throughout the course.

This module discusses the characteristics of programs and program management and describes the link between programs and strategic goals. It explores the relationship between project management, program management, and portfolio management. We will outline the program life cycle and explain how it can facilitate program management. In addition, we will introduce four critical success factors—strategic alignment, benefits management, program governance, and stakeholder management—that the program manager must address throughout the program life cycle.

What Is a Program?

What Is a Program?

To properly define a program, it is necessary first to distinguish a project from a program. A project is a “temporary undertaking to create a unique product or service. A project has a defined start and end point and specific objectives that, when attained, signify completion."1

This definition means that a project has a definite beginning and end; is different from other

1 Ward, J. LeRoy. Dictionary of Project Management Terms. 3rd ed. Arlington, Va.: ESI International, 2008, p. 342.

Module 1: Program Management Key Concepts

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products and services; and concludes with the intended output, such as a product, or service. A program, on the other hand, is a group of related projects managed in a coordinated way to obtain benefits not available from managing the projects individually; may include elements of nonproject work such as ongoing activities or tasks that are not within the scope of the individual projects but that contribute to the program's intended benefits. A program concludes upon realization of the desired outcome. Immediately we can see three distinct differences:

A program’s operations are meant to be durable without regard to the time limits specific to its individual projects.A program’s range of oversight is highly complex, encompassing multiple and associated projects simultaneously in an effort to achieve intended objectives and to derive the highest possible benefits to the organization by managing and controlling them more effectively and efficiently to their complete fulfillment.A program is commissioned to create a desired outcome. This outcome is typically one that supports the strategic objectives of the performing organization.

Sometimes organizations classify large projects as programs because of their size, when in reality, they are nothing more than a combination of subprojects. However, if a large project can be divided into various connected projects having mutual management requirements, then they become the building blocks to a program and should be designated as such. Some types of programs are mergers and acquisitions, new facilities, new products, major organizational changes, outsourcing initiatives, and geographic change. The key purpose of a program is to drive strategic change and manage the effect of this strategic change on the organization.

Types of ProgramsThere are at least five common types of programs. Descriptions of these are found below.

Strategic: The focus of the existing standards is largely on the strategic program. This type of program involves an understanding of the organization’s strategic objectives and typically involves organizational, cultural, and behavioral change. Organizational change may be the desired outcome of this type of program or it may be a requirement to achieve program outcomes. It is initiated to achieve an organization’s strategic objectives. An example of a strategic program is a process reengineering effort.Compliance: Compliance programs are initiated to comply with government standards, regulations, or laws. An example of a compliance program would be environmental regulation compliance.Government: These programs are initiated by the political process to serve public or social needs or requirements. They exist at a higher level than programs covered by the existing standards. Typically, programs of this nature dealt with in this course will be “nested” within these higher-level programs. Some examples of government programs are military, defense, or public welfare programs.Customer focused: Some organizations perform programs as part of contracts with external customers. The key to these types of efforts being described as a program lies in the relatedness of the project work to be done under the contract. In these cases, the program manager should also have an understanding of the significance of their work from the client’s strategic perspective. If the project work being done is not related, it would fall more to the definition of a customer portfolio. They are initiated by a contractual agreement


2 PMC:DK4:EN:000 ver. 1.2 ©2016 StrategyExecution

to develop outcomes that require related project work for an external client. These programs help clients achieve their strategic objectives.Emergent: Emergent, or “bottom-up” programs exist when an organization realizes the project efforts that were independently initiated are, in fact, related and would benefit from coordinated control. For example, software upgrades to customer support groups may be initiated along with independently initiated training on the introduction of new products and services. If these efforts are related, the organization will be able to optimize benefits and control by managing these in a coordinated fashion, that is, as a program.

Components of ProgramsThe projects, subprograms and nonproject work that make up programs are sometimes referred to as “components." Additionally, clusters of projects contributing to a particular benefit may be referred to as “tranches." The Project Management Institute (PMI)2 standard generally uses the language of components, and Managing Successful Programmes uses the language of tranches.

Rather than have this be a point of confusion, this material will largely use the word project. However, it should be understood that programs are composed of more than projects.

Program Complexity in Today’s EnvironmentThe complexity of the environment in which a program exists also makes its mark on it. Some factors that contribute to this complexity include differences in project management maturity and models, geography and the increasingly global nature of programs, size and scope, number and behaviors of stakeholders, and the goal of organizational change. Another factor (perhaps the largest one) contributing to complexity in programs is lack of resources.

What Is Program Management?Amid this complexity, program management’s centralized and coordinated control enables accountability. Program management provides accountability for ensuring that the structure and processes exist to enable the organization to achieve a benefits realization program and strategic objectives. The management of the interdependencies between program components (project and nonproject work) and ongoing operations are the responsibility of program management. These responsibilities are performed with the goal of benefits realization and the achievement of desired outcomes.

A definitive characteristic of program management includes the alignment of program objectives to strategic objectives. The program’s outcomes help to achieve the organization’s strategic intent and are central to organizational change, including cultural change. Success is measured by the achievement of the desired outcomes, not just the creation of the planned outputs. Program management is a very iterative process, and while there is a program life cycle, program management is, in practice, nonlinear. Typically, program management is characterized by revisits and refinements of the business case, multiple feasibility studies, and changes to the component definition and execution.

2 PMI is a registered mark of the Project Management Institute, Inc.



Characteristics of Program ManagementProgram management involves applying a central focus to the program to achieve the program’s “strategic benefits and objectives” for the organization. As a result, program management can affect strategic change in an organization by focusing on the critical success factors of ensuring the alignment of the program’s objectives with the organization’s strategic objectives, realizing benefits, effectively managing stakeholders, and providing effective governance. Business change is a readily apparent consequence of successful program management, but cultural change in organizations, such as how staff members interact among themselves and with clients, also may be a by-product. In the end, successful program management produces growth, specific productivity gains, and an improvement in business position.

When compared to the project environment, program management possesses the following distinct characteristics.

Deliverables have a strategic intent: The objectives of the program directly implement the strategic objectives of the organization.Change is anticipated and proactively addressed: Management of change in the program environment means much more than project change control. It means handling and expecting changes due to strategic shifts in the organization, marketplace pressures, valuation issues, and other issues that are not “rejectable” changes. Responding to such changes may alter the makeup and direction of the program and its relationship with the sponsoring organization.Cultural change is integrated within the organization: A change in how members of an organizationwork or interface with one another or their customers will alter the organization’s culture, capabilities, or both. This change must happen without disrupting business as usual. Here, we are talking about big changes—that is, the types of initiatives that will have a significant impact on organizations and the culture of organizations.Success is measured by outcomes, including growth, productivity gain, and improvement of position in the marketplace: These outcomes are the types of success that programs are trying to achieve. A program’s success is not assessed against the traditional triple constraints (of cost, time, and scope) alone. Program objectives may also include objectives for organizational growth, higher productivity, and a larger market share.Programs are iterative and nonlinear: A program is much less linear than a project. A program may not have a specific end date. The business case that preceded program initiation may be revisited and reviewed numerous times during the program’s life. Feasibility studies may be initiated at any time during the program to evaluate new opportunities, components’ schedules may be changed and reoptimized, and the program’s life cycle is characterized by progressive elaboration.

The Value of Program ManagementThe value of program management is one of focus: focus on the capabilities to be added or improved, benefits to be realized, and the outcomes to be achieved. It provides a systematic approach for achieving solutions in that they fulfill the organization’s strategic objectives. It provides the coordination of complex planning activities and optimizes the use of resources,



both human and material. It also provides for an integration of outcomes with ongoing business operations. By providing all this value, it also helps the organization to realize necessary change and create a better future than the current situation.

The Relationship Between Projects and Programs

The Relationship Between Projects and ProgramsBy their nature, the projects’ deliverables individually contribute to a program’s overall strategic goals and benefits by increasing organizational capabilities. Some deliverables may need to be integrated to provide some or all of the program’s benefits. As a result, projects within a program frequently may share resources, often permitting cost and schedules to be optimized and, in the case of staff, to be matrixed. Moreover, it is not unusual for projects within a program to have mutual clients and shared technology as well.

The interdependencies in a program environment require an integrated focus and prudent planning, scheduling, executing, monitoring, and controlling of the program’s projects. Thus, like projects on a smaller scale, programs become an efficient mechanism for fulfilling an organization’s mission.

For more distinctions between projects and programs, please review Appendix A: Projects vs. Programs, in this Reference Manual.



Benefits of Programs

Benefits of ProgramsTogether, projects and programs benefit an organization by contributing to, and enhancing, its general capabilities. They are both instrumental in achieving organizational objectives, such as increasing sales, decreasing operational costs, and reducing organizational waste. Consequently, projects and programs collectively provide utility to an organization’s stakeholders and, in turn, sustain investment in the organization’s future enterprises.

Managing the organizational benefits, however, is the principal distinguishing factor between programs and projects. Although the gains that projects deliver should not be diminished, the temporary duration, focus on outputs, and specific goals of a project prevent the broad realization of their benefits. Rather, it is the program, which inherently manages multiple projects and resources in the context of the organization’s strategic plan, that is better positioned to provide the most benefit to all stakeholders and ultimately achieve the outcomes that the organization desires.

We will continue to discuss program benefits throughout this course. However, it is only through competent program management that the full realization of benefits can be achieved.

Responsibility of Program Managers to Projects

Responsibility of Program Managers to ProjectsThe role of program managers is to coordinate and “integrate” work among the program’s projects rather than to “manage” the projects (which is the role of the project managers). By virtue of their broad oversight, program managers identify, rationalize, monitor, and control their projects’ interdependencies. In that regard, they must manage issues as they arise among the program’s component projects. Thus, program managers can, thereby, track every project’s contributions to the program and toward the organization’s overall benefits.Program managers—

Align efforts between projects in the program, but do not manage individual projectsIdentify, rationalize, monitor, and control project interdependencies to maximize benefitsManage escalated project issuesIntegrate contributions from individual projects to achieve overall program benefitsSelect and define the projects within the programEnsure only projects with outputs that contribute to the program's outcomes are implemented



Consequently, an important distinction for program managers versus project managers is the level of detail at which they are involved. Program managers must focus their attention on managing the program as a whole rather than managing a group of projects.

Programs and Strategic Objectives

Programs and Strategic ObjectivesPrograms are vehicles for implementing the business strategy of an organization. The strategy outlines the business change that the organization desires. Driving the organization from the AS-IS state to the TO-BE state, as outlined in the strategy, is a major program function. This TO-BE state is not mere rhetoric, but it should describe in as much detail as possible the future and how it will be better than the current situation.

As discussed previously, one characteristic of program management is achieving strategic intent, which means the objectives of the program directly implement the strategic objectives of the organization. However, there remains yet a more direct link to an organization’s strategy than a program, namely a portfolio.

Portfolios and Portfolio Management

Portfolios and Portfolio Management



Superior to the program in the organizational hierarchy is the portfolio. Portfolios are ongoing, are larger and more extensive in their scope than programs, and drive investment. Although programs are the vehicles that an organization employs to directly implement its strategic objectives, it is within the portfolio where management’s highest decision making occurs. As an aggregate of projects, programs, other work, and, occasionally, other portfolios having similar business intent and objectives, the portfolio is best positioned as the umbrella subdivision to establish and oversee the organization’s intent, direction, and progress. The portfolio frames strategic decisions regarding organizational investments, resource allocation, and business advantage. The portfolio is concerned with monitoring program alignment to organizational initiatives and how they relate to its strategy. Thus, it is through portfolio groupings that strategic business goals are most effectively facilitated and managed to maximize benefits.

Consisting of various-sized projects and programs—all or part of which may be in process concurrently and may not be mutually exclusive—the portfolio is critical to the organization’s strategic operations. Thus, portfolio management must focus on the interdependencies among programs and projects as well as portfolio and program process interactions, which can be done at multiple levels in an organization. Although control flows from the portfolio to the program, information monitoring travels upward from the program to the portfolio. As an example, an IT department might be managing an IT portfolio, which, in turn, may roll up to a higher level of portfolio management where data on project/program budgets, schedules, and performance reports are overseen.

Portfolio management facilitates the alignment of investments in projects and programs with strategy. Portfolio management focuses on establishing priorities and allocating resources (funding and people) for programs and projects.

Program Management Standards

Program Management StandardsThere are two internationally recognized and used standards.

The Standard for Program Management is currently in its third edition, published in 2013. It was developed under the direction of PMI and is popular predominantly in the USA and non-UK-



aligned countries. This version of the PMI standard again shifts focus from life cycle and knowledge areas to domains and supporting process groups, which are listed alphabetically. Again, the names of the program life cycle phases have changed.

It includes five Program Management Performance Domains: Strategy Alignment, Benefits Management, Stakeholder Engagement, Governance, and Life Cycle Management.

It also discusses nine Supporting Processes Groups: Communications Management, Financial Management, Integration Management, Procurement Management, Quality Management, Resource Management, Risk Management, Schedule Management, and Scope Management.

The most recent edition of Managing Successful Programmes (MSP) was published in 2011 and was developed under the direction of the Cabinet Office of the UK. It is popular in the UK and UK-aligned countries (for example, Australia, New Zealand, and Scandanavia), especially within the public sector and other large organizations.

This standard's principles include: Descriptions of Successful Programs, Alignment with Corporate Strategy, Leading Change, A Better Future, Benefits Realization Focus, Adding Value, Coherent Capability, and Learning from Experience.

Governance themes discussed include: Organization, Vision, Leadership and Stakeholder Engagement, Benefits Management, Blueprint Design and Delivery, Planning and Control, Business Case, and Risk and Quality Management.

The Transformational Flow (life cycle) used consists of the following stages: Identify, Define, Manage Tranches, Deliver Capability, Realize Benefits, and Close.

Both standards provide guidelines for managing programs within an organization as well as a common vocabulary for effective communication and coordination. They also outline approaches and best practices for successfully managing a program.

There is also at least one additional standard: A Guidebook of Project and Program Management for Enterprise Innovation, last published in 2005 under the direction of the Project Management Association of Japan. Its use appears to be limited to Japan, and it does not appear that it is being updated or maintained.



Program Life Cycle

Program Life Cycle

The approach used in this course is to use a generic life cycle. Program activities typically occur within phases, or stages.

The names of these phases vary among standards. In fact, the three versions of the PMI standard have all changed the names of the life-cycle phases and even changed the activities performed in various phases. The Managing Successful Programmes standard refers to this grouping of activities as the “transformational flow.”

Each one of these high-level phases will be dealt with in more detail in the following modules. For now, the phases of the life cycle used in this course and associated activities include—

Program Proposal: Identifying the program need and developing the program proposalInitiation and Approval: Obtaining program approval and fundingProgram Planning: Developing program and project management plans and governance proceduresDelivery of Capabilities and Benefits: Implementing plans to create the outputs and integrating them to achieve the desired outcomes. This phase entails actually "managing" the programs.Program Closure: Operationalizing, transitioning, ending, or continuing the program

It is important to note that the program life cycle is not a linear process. In fact, the typical program life cycle is less linear than a project life cycle, because whereas projects have a definite end date, programs may not. For example, the 2008 Beijing Olympics had a definite end date after the closing ceremony and after all financials were closed out. The A-380 Airbus program, however, will not have an end date until the last plane rolls off of the production line. We do not have a way of knowing exactly when that will be.

In addition, programs encompass the management of projects and continued management of the operations and maintenance (O/M). Additionally, programs can be injected into the strategic mix at any business juncture. This further introduces a tendency for programs to be nonlinear.



The program life cycle simply helps to provide a framework for managing program activities. This framework would include an identification of decision points or phase gates relative to program approval and continuance. The life cycle also provides a framework for enhancing governance and control, the management of projects and nonproject work, and the realization of benefits.

Program Management Critical Success Factors

Program Management Critical Success Factors

The four critical success factors—strategic alignment, program governance, benefits management, and stakeholder management—flow through the program life cycle:

Strategic alignment: Maintain alignment of program objectives with strategic objectives.Program governance: Develop, communicate, implement, monitor, and assure the policies, procedures, organizational structures, and practices associated with a given program.Benefits management: Define, realize, maximize, and sustain the benefits of the program.Stakeholder management: Manage the expectations and interest of stakeholders to ensure their continued support and appropriate participation in the program.

The program manager’s job is to maintain alignment with strategic objectives, to recognize the stakeholders’ interests in the program, and to ensure that benefits and stakeholders are successfully managed throughout the program life cycle. Thus, proper program governance means planned and executed policy, procedures, and processes. Throughout this course, we



will explore the critical success factors and how each phase of the program life cycle addresses them.

Additional Considerations in Program Management

Additional Considerations in Program ManagementIt is not too soon for the program manager to think about how the program will end. Programs do not always have a definite end. A program may be focused on a product line or a customer and the objective may be to keep realizing benefits on an ongoing basis. There may be difficulties when the program’s outcomes have to be transitioned to operations. Therefore, there is a need for planning the ending, be it the end of a product line, the transition to operations, or the ongoing support of the program’s deliverables by the program team.

When managing a program, it is necessary to consider two additional areas: O/M and how the product life cycle relates to these areas.

Although these aspects will vary from program to program and from organization to organization, there are three general options for managing O/M and the product life cycle. First, a program—by extending its life cycle—could be responsible for these areas. Second, a program could hand over these responsibilities to an O/M or product support department. And third, the program office and operational management department could work together to manage these areas and then disengage at some later point in the product life cycle.

Within any given program, some deliverables and products that are being implemented will continue to be the responsibility of the program, whereas others will be handed to O/M. For



example, the Apple® iPhone® is a program for which a program manager will be responsible until the end of the product’s life.

We will discuss these options in more detail during the Delivery of Capabilities and Benefits phase.

Summary and Next Steps

Course Summary and Next StepsPrograms are a means to achieving strategic change in an organization. The purpose of a program is to affect strategic change and to realize benefits and strategic objectives. Projects are collectively organized into programs so that their discrete deliverables contribute to the program’s benefits.

Program managers manage the interdependencies between projects and track the contributions of each project to the program’s consolidated benefits. Programs follow a five-phase life cycle that helps to manage outcomes and benefits and to facilitate governance.

Portfolio management facilitates the alignment of investments in programs and projects with strategy. A portfolio is a collection of programs and projects that map to an organization’s strategy.

The critical success factors of strategic alignment, stakeholder management, benefits management, and program governance must be addressed in all five life-cycle phases.



Module 2Program Proposal

Introduction

OverviewThis module focuses on the first phase of the program life cycle, Program Proposal. It presents the purpose of this phase and its major activities and deliverables. The module will offer an approach for understanding the context in which the program exists and identifying and understanding key program stakeholders, and it will outline the critical elements of the high-level program business case. This module will also discuss the importance of aligning program objectives with organizational strategy and will examine the responsibilities of the program manager as they relate to the activities described.

Purpose of Program ProposalThe purpose of this phase involves identifying the business need that has to be addressed. Organizations are continuously faced with needs such as improving operations, growing market share, meeting changing customer expectations, and successfully operating in a global environment. Organizations develop strategic objectives to decide which business needs are to be met.

This purpose is fulfilled by developing a strong, high-level business case that clearly identifies and describes the program benefits. The high-level business case is then approved by key stakeholders.

The strategic planning process identifies business needs that then give rise to the program concept or mandate, including a high-level view of the strategic objectives that the program will accomplish and the benefits that it will deliver. Exactly how this takes place and who is involved will vary from organization to organization. This selection process typically occurs at the highest levels of the organization by senior managers or a steering committee with cross-functional representation.

It is important for the program manager to understand the strategic objectives and how the program supports these strategic objectives. The business case will identify the factors to be considered in determining whether a program will be approved, but it will also contain important information on benefits expected and assumptions made not only about those benefits, but also regarding the environment. The program manager must be aware of the context in which the program has been approved, and that context should be provided in the business case.

Module 2: Program Proposal


Identify Program Context

Identify Program ContextThe consideration of a program is generally triggered by an executive “program mandate.” The mandate will require addressing two major issues:

How will the organization’s strategic objectives be realized through the program’s objectives?How will the organization’s mission, vision, and values inform the program’s mission, vision, and values?

Strategic objectives are developed within the context of the organization’s mission, vision, and values. A program, therefore, must reflect those mission, vision, and values.

Strategic objectives must be translated into manageable investment and initiative decision criteria. Also, any program proposal should demonstrate measurable contribution.

The organization’s mission, vision, and values must be understood and assessed for program impact. The degree of clarity and detail in the program’s vision will be a contributing factor to success.

The majority of these activities occur before the program manager is assigned. However, the program manager still must understand the activities that occurred here, the rationale for the selection of the program, and the context in which the program is to be managed.

Mission, Vision, Values, and Organizational Strategy

Mission, Vision, Values, and Organizational StrategyDuring the Introduction of this course, we learned that programs are strategy implementation vehicles. In fact, organizational strategy should drive programs, and the objectives of the program should, in turn, be aligned with organizational strategy.



The strategic objectives that an organization identifies are developed within the context of the mission, vision, and values of that organization. The linkage between the organization’s strategic objectives and the program’s objectives should be made clear and explicit, and the organization’s mission, vision, and values should be reflected clearly in the program’s mission, vision, and values.

Mission defines the purpose or why the organization exists. The program’s mission describes its purpose and what it needs to achieve.Vision is what the end or future state of the organization will look like. The program vision describes how the program will help to achieve this future state.Values are the collection of guiding principles that the organization deems to be correct and desirable regarding business conduct.

Organizations are increasingly identifying and making more explicit the values that it considers to be important and then identifying these values as drivers of expected behaviors. Examples of such organizational values are ethical behavior, concern for the natural environment, and collaborative work behaviors. Values are to be identified, understood, and used to drive program team behavior. Thus, as the mission drives the vision, the vision is influenced by the values of the organization. Together, the mission, vision, and values, in turn, create the context for development of the organizational strategy and objectives.Examples of mission, vision, and values from Strategy Execution:

Mission: To help the world’s leading corporations and government agencies improve their performance by developing their most important assets: their employees.Vision: To differentiate Strategy Execution as the premier provider of learning solutions to organizations across the globe by leveraging knowledge, technology, and innovative learning practices. We will achieve this by delivering unparalleled value to our customers by providing insights into learning best practices based on our years of experience in the design, development, and delivery of our products and strategic services. We will positively impact the performance of our clients’ organizations by improving how they work.



Values:

Honor the trust of our clients, partners, and employees: Strategy Execution adheres to the highest standards of honesty and integrity, conducting our business with respect for cultures, the rights and dignity of individuals, and the environment everywhere we operate.Deliver impact: Deliver high-quality, innovative learning solutions that are relevant to the needs of our clients, support their strategic goals, and make a positive impact to their organizations.Grow and support our people: Strategy Execution provides a rewarding, performance-based culture that allows our people to prosper, grow, and develop their skills and talents, ensuring success for us and our clients.

Organizational Strategy and Business NeedsOrganizational strategy identifies what business needs the organization must address, and based on the mission, vision, and values, how those needs will be addressed. Typical business needs include improving customer service, increasing market share and expanding product and service offerings, anticipating or responding to changes in customer expectations, improving operations efficiency reacting to major technology shifts, and responding to various and pervasive global challenges.

Developing the High-Level Program Business Case

Developing the High-Level Program Business CaseThe high-level program business case is usually developed before the program manager is assigned and is the major deliverable of the Program Proposal phase. It is the program manager’s role to thoroughly understand, revisit, and communicate the information necessary to update and validate the business case throughout the life of the program.

The business case is a high-level overview of the needs, feasibility, justification, and return on investment (ROI) of the program. Its purpose is to demonstrate why the program is a good expenditure of money or other organizational resources and to serve as an objective decision-making tool for judging whether the program is (and remains) desirable, viable, and achievable.

The business case links the proposed program to the organization’s strategy and describes and quantifies the potential program benefits. (However, the program charter, which is developed later, qualifies and quantifies benefits in much greater detail.) If the business case is approved by the key decision makers, then the program can move into the Program Initiation and Approval phase.

Different organizations have different approaches for developing business cases. The business case may be developed within a functional business unit or it may be developed by a cross-functional task force. In some cases, the business case may be only a high-level financial analysis, and the organization may require another document to establish the proposed



program's link with organizational strategy, establish the justification, and so on. The program manager may or may not be involved. In any case, the program manager must fully understand because he or she will need to evaluate the program against the business case throughout the life of the program.

Components of the High-Level Program Business CaseThe business case should outline the following elements:

Executive overviewBusiness need/opportunityAlternativesBenefitsCostsFinancialsAssumptionsRisksConstraintsMarket analysisCompetitive analysisOrganizational considerationsProgram descriptionImplementation plans

Managing the Program Business CasePrograms, unlike projects, manage benefits realization as well as costs. Thus, the business case serves as a tool for value management.

The level of detail and completeness (or maturity) of the business case will reflect the amount of uncertainty associated with the program. Initially, the business case information will be uncertain, as estimates will be very approximate, with high levels of potential variance. As the program develops and more fixed information is known, the business case will then become more accurate and complete.

Review of the Program Business CaseReviewing the business case should provide answers to the following questions:

Is the program (still) affordable? Is there sufficient funding?Is the outcome (still) achievable? Is there a realistic assessment of the organization’s ability to cope with the scale of change required?



Does the program (still) demonstrate value for money? Are the benefits and the costs of realizing them in the right balance?Have options been considered?Is the program’s portfolio (still) the appropriate, or optimum, way of achieving the desired outcome(s)?Are the assumptions underlying costs and benefits clearly documented and understood?

Approval of the High-Level Program Business Case and Appointment of Program ManagerTypically, it is only after the identified group of decision-makers has approved the program business case that the program manager is assigned. The program manager can then move forward with the program and may help to develop the program charter (to be described during Initiation and Approval activities.)

The program manager’s role is, therefore, to have a full understanding of the context for the program, including the mission, vision, and values of the organization, and how they have informed the strategic objectives of the organization. The program manager should also have a full understanding of the business case for the program, how it aligns with and supports organizational strategy, the business needs to be addressed, and the desired outcomes and business benefits expected. The program manager should also understand who are some key stakeholders in the program, both from a more internal, “who developed it and who approved it” perspective and also from a more external "who will be affected” perspective.



Critical Success Factors During Program Proposal

Critical Success Factors During Program Proposal

Strategic AlignmentStrategic alignment during this phase entails organizationally developing and communicating a clear and explicit understanding of the organization’s strategic objectives as well as the context in which they were developed, including their vision, mission, and values. The organization will also identify business needs that have to be addressed and commission the development of a proposal for addressing these via a potential program. The potential program will have to demonstrate how its objectives, vision, mission, and values align with the organization’s objectives, vision, mission, and values. This proposed program will be analyzed, described, and documented in a business case.

Program GovernanceProgram governance at this phase entails having defined processes for identifying program opportunities and developing and approving the initial high-level program business case.

Benefits ManagementDuring Program Proposal, initial benefits are qualified and quantified. The business case should provide an initial identification and estimate of the proposed benefits, and the assumptions that led to these estimates of benefits.



Stakeholder ManagementDuring Program Proposal, stakeholder management entails understanding who develops and communicates organizational strategy and who is responsible for the development, review, and approval of the business case. An initial identification of the stakeholders to be involved directly in the program will be provided in the business case.


Summary and Next StepsIn this module, we’ve discussed the critical activities of the Program Proposal phase, which include creating a firm foundation of support and approval for the program by aligning program objectives, mission, vision, and values with organizational strategy and developing the high-level program business case. Because the business case demonstrates why the program is a good expenditure of organizational resources, it is crucial to have the empowered support of the key decision makers in this phase so that the business case is well developed and ultimately approved. After this occurs, the organization moves the program forward to the Program Initiation and Approval phase. Program Initiation and Approval is the second phase in the program life cycle.



Module 3Program Initiation and Approval

Introduction

OverviewThis module explores the program activities that take place during Program Initiation and Approval, the second phase of the program life cycle. These activities include adding further detail to the information in the business case, developing and obtaining approval for the program charter, identifying the key stakeholders and their roles and responsibilities, and selecting the program manager.

Purpose of Program Initiation and Approval

Purpose of Program Initiation and ApprovalProgram Initiation and Approval specifically defines the following program elements:

Developing and obtaining approval for the program charterIdentifying key program personnel, including the program sponsor and program managerObtaining fundingPerforming initial stakeholder management analysis

Identify the Program Manager

Identify the Program ManagerThe program manager is appointed during Program Initiation and Approval. He or she is selected based on several criteria. The specific selection criteria and key competencies that the program managers will need depend on the nature of the work.

Module 3: Program Initiation and Approval


Key Program Manager CompetenciesTo manage programs successfully, a program manager must possess very specific skills. These competencies include the following.

“Big-picture” thinking and vision development: Ability to understand the mission, vision, and values of the organization and to translate them to the program; also involves understanding the context, or big picture, in which the program existsLeadership and team building: Ability to build relationships, delegate and empower, mentor and coach program personnel, and collaborate with different functions within in the organizationCommunication: Ability to communicate competently in writing and verbally, communicate effectively with a wide range of management (governance boards), communicate priorities and constraints, and communicate with stakeholdersPolitics: influencing and negotiating: Ability to understand and manage the political landscape of the program environment; ability to understand conflicting agendas and negotiate solutionsConflict resolution: Ability to proactively identify and resolve the issues, solve problems, prioritize conflicting objectives, and achieve resolutionStakeholder management: Ability to understand and manage expectations; understand stakeholders’ desires, needs, and requirements (both explicit and implicit); interview prospective stakeholders and business owners; and collaborate with stakeholdersPlanning and resource management: Ability to develop various types of plans (risk, cost, and contingency); assess, match, manage, and release resources; align program management plans with strategic program objectives; and organize program artifactsComplexity management: Ability to gather and integrate information; distill and synthesize requirements; and analyze schedule trends, reports, change drivers, requirements, and competitionProgram/project management tools and techniques: Ability to manage component interdependencies, milestone planning, process mapping, plan and facilitate meetings, change management, statistical quality control, root cause analysis, scenario analysis, brainstorming, scheduling tools operation, and lessons learned

As the program is ready to move into Program Planning, it is important to think about the activities that are to be performed and to identify the resources required.

Develop the Program Charter

Develop the Program CharterThe overall purpose of the charter is to—

Authorize the program and provide authority to the program managerEstablish understanding and buy-in from program stakeholders



Serve as a communication toolProvide an announcement to the organization that a program has been approved

Overall PurposeThe project charter is to provide information to decision makers to enable the approval or rejection of the program and, if approved, to establish understanding and buy-in from program stakeholders. While the approval of the business case is an important event in the program's life cycle, business cases are generally not the document used to announce, organizationally, the approval of a program. The charter also serves as the basis to move to the next phase, Program Planning. To accomplish this, the charter—

Provides a high-level program scope, objectives, vision, and constraintsOutlines the components or projects, the people involved, the funds needed, and the processes to be followedDescribes the desired outcomes and benefits, the contributing costs and risks involved in getting there, and provides a high-level road map of actions requiredServes as a communication tool to provide stakeholders with an announcement of the program's approval and an understanding of the program

In conjunction with program sponsors and other stakeholders, the program manager and the program team develop the program charter and present it for approval. To help ensure success, it is necessary to actively involve these stakeholders in the development of the program charter. It is an iterative process with the stakeholders actively engaged.

Program Charter ComponentsThe program charter‘s primary input is the business case. The charter contains the following elements:

Justification for the program (description taken from the business case)VisionStrategic alignmentDesired outcomesProgram scopeExpected benefitsInitial componentsResources requiredKey stakeholdersGovernance processes and structureSuccess criteriaConstraintsAssumptions



RisksInitial high-level road mapProgram milestonesProgram managers responsibilities and authorityRoles and responsibilities

One key component of the program charter is the high-level road map. This initial document is basically a milestone chart with expectations of timing for deliverable or component completion, realizations of benefits, and achievement of desired outcomes. This road map will be refined and updated as the program proceeds through its life cycle.As part of the charter’s development, the program manager must also begin to consider the various stakeholders, their relative importance, and their attitudes toward the program, and to identify the initial strategies to manage them. This information will be used to develop the stakeholder management plan and will also be a key input to the initial development of the program communication management plan. The program manager should—

Identify and prioritize key stakeholdersAssess stakeholder power, interest, expectations, and concernsUnderstand key stakeholders and what it takes to win their support for the program business case

Key program stakeholders are those individuals and groups whose support is vital for successful program implementation. The following examples of key program stakeholders represent both individuals and organizations whose interests may be affected by the program outcomes, either positively or negatively.1

InternalProgram governance boardProgram sponsorFunctional managersEnd users

ExternalGovernmental regulatory agenciesCustomersConsumer groupsEnvironmental groups

These stakeholders play a critical role in the success of any project or program. They can influence programs and can either foster or impede outcomes, depending on the benefits or threats that they perceive. Consequently, the program manager must understand the position stakeholders may take, the way they may exert their influence, and their source of power. Where negative influence is possible, the program manager must ensure that the stakeholders see the benefits—a job that corresponds to program promotion and marketing. Thus, it is

1 Project Management Institute. The Standard for Program Management. 3rd ed. Newtown Square, Pa.: ProjectManagement Institute, 2013, p. 11.



essential that the program manager correctly determines stakeholders’ interests and concerns so as to leverage them for business case support.

As the program begins to materialize, the program manager will further refine the list of stakeholders associated with each project based on the types of projects and their scope. It is then essential that the program manager consider how best to engage and communicate with these stakeholders. The program manager needs to emphasize the development of the program scope statement and to maintain stakeholder interest in the projects being developed. Effective and frequent communication with stakeholders is vital to obtain and sustain their continued support. For more information on how to identify, prioritize, and understand your stakeholders, please see the Stakeholder Assessment Table—Program tool behind the Tools tab of this Reference Manual.

Approval of the Program CharterThe approval of the program charter authorizes the program and its program manager. It serves as the document used at any gate review for initiation and approval and provides the program manager with the authority to proceed to Program Planning.

Critical Success Factors During Program Initiation and Approval

Critical Success Factors During Program Initiation and Approval

Strategic AlignmentDuring Program Initiation and Approval, the program manager should have a complete understanding of how the program aligns with the organization’s strategy, and it should be documented in the charter.



Program GovernanceDuring Program Initiation and Approval, the appointment of the program sponsor and the program manager will begin to develop the hierarchy of program governance. Initial program governance activities and responsibilities will be outlined in the charter.

Benefits ManagementDuring Program Initiation and Approval, the program manager should have an understanding of the benefits that the program intends to realize. They should be documented in the charter, and the program manager should develop a high-level road map identifying the expected timing of these benefits.

Stakeholder ManagementDuring Program Initiation and Approval, the program manager should have an understanding of the key stakeholders, and they should be documented in the charter. The initial stakeholder management plan will be developed and continuously revisited throughout the program life cycle.


Summary and Next StepsAs the second phase in the program life cycle, Program Initiation and Approval focuses on selecting the program sponsor and program manager and on approving the charter. The Program Planning module will explore the third phase of the program life cycle, Program Planning. In this phase, the program manager and initial program team establishes the plan for the program and for governing the program.



Module 4Program Planning

Introduction

OverviewThis module explores the next phase of the program life cycle, Program Planning. This phase involves planning the program management and governance activities. The program management plan includes all planning documentation that will be used to implement the work and monitor progress later during the program. The program charter will be “progressively elaborated,” program management plans developed, a benefits realization plan created, and processes and plans for governing the program will be established. Governance involves defining how the program will be managed, measured, monitored, and controlled. Finally, this module will examine the four critical success factors and how they are addressed during this phase.

Purpose of Program Planning

Purpose of Program PlanningIn Initiation and Approval, we described the further development of program details via the creation, elaboration, and approval of the charter.

Program Planning, the next phase of the program life cycle, entails the development of the plan for the program so that it can deliver its intended benefits and achieve the desired outcomes. This phase also entails the development of the governance processes and structure as well as infrastructure to provide support for the program. It is during this phase that the program manager and initial team need to develop viable working processes to facilitate program work in parallel with the development of the components and technical infrastructure to achieve desired outcomes.

Module 4: Program Planning


Program Management Plan

Program Management PlanAfter the development of the program charter, the program manager and the initial program team will begin to create the elements of the program management plan. As previously identified, planning in Program Planning will generally run along two parallel paths: (1) planning the program and its components, and (2) planning the infrastructure and support required for governing the program. In this regard, it is necessary to generate a group of program guidance documents that will be consistent and coherent in directing program execution and program control. This development process must be iterative to accommodate work and resolve competing priorities, assumptions, and constraints to address critical factors such as business objectives, deliverables, benefits, time, and cost.

The program management plan is a compilation of many elements rather than a single document. It incorporates details on the scope, benefits, desired outcomes, interdependencies, costs, schedule, and the other processes that are needed to manage the program. The program management plan is the tactical companion to the more strategic business case.

Program ScopeThe planning effort begins with the charter which is then used to develop the program scope. The scope describes the work that is required to deliver the products, services, or benefits with the required features and function. A scope statement is developed that is further refined to identify the program’s deliverables and projects. These objectives should describe in more detail what the program is to accomplish and demonstrate alignment with the organization’s strategic objectives. Also developed at this point would be the benefits realization plan. That plan clarifies how ongoing benefits will be managed, measured, and supported (and by whom), and how benefits will be sustained when projects, or the program itself, transition to operations and maintenance (O/M).



Benefits Realization Plan

The Benefits Realization Plan—Benefits Mapping

The benefits realization plan is developed as part of objectives development. It describes the business benefits to be realized from the program, how they are to be achieved, and who is responsible. The business case and the charter will provide significant information regarding these benefits, including their identification and the assumptions made that contributed to the identification of the benefits. Baseline information included in the benefits realization plan includes identification of the benefit, how it is to be measured, identification of the deliverables required, planned and actual dates of the deliverables, planned and actual dates that benefit measurement should start, and the benefit owner.

The program manager must understand the business benefits desired and also have a thorough understanding of the assumptions that were made that led to the proposed benefits.

One technique that the program manager can use to perform these activities is benefits mapping. The program manager and initial program team can create a visual representation, or map, of the component deliverables, the initial benefits realized, and the benefits that result in achieving the program’s objectives. The benefits map takes the individual activities that occur within the program and shows how the outputs from the components “map,” or contribute, to the achievement of the program objectives and achieve the desired outcome.

In the following example of a benefits map for the Tyro Hotel Group, the program objective was to increase revenue and profitability by 20 percent in 18 months. The identified program benefit is the “ability to recognize and reward frequent customers.” It also mapped to two other benefits, “customer perception of the hotel chain’s reputation” and “customer’s willingness to pay a higher room rate," which translated into a project to develop a customer loyalty program.



The Benefits Realization Plan tool included in this Reference Manual can assist you in refining your benefits realization plan.

Gathering Program Requirements

Program RequirementsThe scope and objectives are then used to gather more specific program requirements. These requirements provide greater detail regarding the specifications for the program and the issues related to such factors as the business, environment, technology, and regulation. The gathering of these requirements also helps to identify the different components (typically projects) of the program and their requirements.

Program Work Breakdown Structure and Architecture

Program Work Breakdown Structure (PWBS)It is helpful here to draw an analogy with project management activities. Once project managers develop project requirements, they develop the work breakdown structure (WBS), starting with their deliverables and decomposing the work of the project into work packages or tasks. These work packages are then arranged in a network diagram indicating the order in which the work is to be done and the relationship among work packages. The program manager is performing a similar set of activities but at a much higher level. After the requirements for the program are



identified, the program manger decomposes these requirements down to the deliverable level. The deliverables are then used to create the architecture or the "network" for the program. The program manager is focused on the "network" of deliverables, what the interdependencies are, and how to best stage the deliverables to optimize the benefits. These deliverables then become the starting point for the project managers in their planning activities. The major difference is that the program manager is working down to the deliverable level and the project manager starts working at the deliverable level. Another way to think of it is that the lowest level of the program WBS becomes the highest level of the PWBS.

Approach for Developing the Program ArchitectureThe program architecture identifies both the program’s structure and how its components fit together. The architecture or architecture baseline provides a more detailed elaboration of the structure of the program components so that the technical relationships and interdependencies between the components are understood and can be managed. This activity is when any external relationships or interdependencies to the program can be identified. The high-level road map is not explicitly an input to the development of the program architecture baseline, but it provides the high-level guidance regarding the key milestone dates and expectations for maximizing benefits and achieving the desired outcomes. The output of this work is the program architecture.

The program architecture defines the components (typically projects) within the program as well as the technical relationships and high-level interdependencies that exist among these components. It ensures that the components have been integrated to deliver the expected benefits and also provides the high-level deliverables and milestones that result from the individual projects within the program. The architecture is an enhanced road map or bridge for getting from the AS-IS present state to the TO-BE future state.

Although some architecture can be created up front during this phase, this activity is dynamic and continues to be developed in later stages.

After the program and component requirements are identified, the program manager and initial program team will develop a baseline for how the requirements are related technically. The initial program team should include the appropriate technical expertise to identify these relationships among the components and the rules that govern those relationships. The identification should include understanding the required component interfaces and the timing of component development. The business rules and constraints that the organization uses to describe operations will also be used in the development of the architecture.

What Are Business Rules?Business rules govern the way a business initiates actions and responds to situations under various conditions (for example, normal processing, alternative processing, and exception processing). Business rules may originate inside (corporate policy) or outside (government regulation) the organization and they may take various forms in the organization, such as—

RegulationsCalculation formulasProcess rules



Information management rulesSome sample business rules include the following:

All time sheets will be submitted by noon on the Thursday prior to the pay date. If time sheets are turned in after noon on Thursday, they have to be submitted to the Human Resources Director for approval.All submitted insurance claims must have the individual’s name, date of incident, and the individual’s policy number or the claim will be returned to the individual.A sales tax of 7.5 percent must be added to all purchases, except food and prescription medicines.

Program Components

Program ComponentsThe initial identification of program projects may occur as early as the development of the business case. This work will be expanded during Program Initiation and Approval and Program Planning to help ensure that the projects are selected and designed to create the outputs necessary to achieve the desired outcomes. The following recommendations may be applied to project development (again, it should be remembered that while most of this information deals with the identification of the program's projects, there may well be nonproject work that also has to be addressed):

Reduce the program to manageable logical projects or pieces.Create projects with the objective of minimizing handoffs between project teams, organizations, and vendors.Use preexisting resources such as skilled contractors and purchased components.Align with a single or small customer set to control the number of human interface requirements.

The process of program project identification is nonlinear, with some projects identified at the start of the program life cycle and some identified well into the program life cycle.The program manager should consider the following factors when developing the program projects:

PWBS orientation (task, deliverables, and cost perspective): Consider whether the program is organized into actions (tasks) or deliverables. Projects also can be delineated by discipline, location, and outputs.Resource availability: This pertains to such things as technology, infrastructure, software, and hardware as well as human resources.Geography (for product introduction)



The business area of the program (such as accounting, human resources, and marketing): In a merger, for example, business areas may drive the process of splitting the program into projects.Organizational change required: Frequently, the deliverables of the program will have value or benefit after employee behavior changes or external customer behavior changes. The organizational change required should be identified to ensure that activities have been planned and implemented to achieve the desired outcomes.

Program Management Plan Components

Financial Management PlanThe financial management plan for the program includes more than project costs. Many factors that contribute to program complexity will also contribute to costs. Such factors as multiple vendors, funding requirements, different geographies, and fluctuating costs will likely affect multiyear programs.

Program Master ScheduleThe program master schedule (sometimes called the integrated master schedule) is developed using the planning work done thus far. This effort starts with the high-level road map developed in the charter. The high-level road map and the architecture baseline provide direction and constraints for the project managers in their individual project planning. The individual component plans and schedules must then be reconciled with the road map and architecture. The program manager takes the program architecture and overlays it on to a time line. The program manager then compares this to the high-level road map to identify the areas where reconciliation is required. This reconciliation will continue further as the individual project managers create their project schedules, and these have to be reconciled with the architecture and high-level road map. The end result of this reconciliation effort will be the program master schedule or integrated master schedule. After they are reconciled, the program manager will manage the program schedule at the deliverable and milestone level, with the desired goal of realizing the benefits and achieving the objectives.

The Program Management Plan—Additional PlansWhile these efforts are progressing, additional plans for the program will be initially developed. Such plans include the risk response plan, the resource management plan, the change management plan, the communication management plan, the procurement management plan, the quality management plan, the stakeholder management plan, the financial management plan, and the configuration management/change control plan. We call these plans “initial” because they describe the program as it stands at this early phase. They must remain flexible, because as other projects emerge during the life of the program, these plans must change to accommodate them.



Now, with the inclusion of these crucial pieces, the process of building an integrated program management plan is well underway.

Program Governance and Support Requirements

Program Governance and Support RequirementsAs the program manager and the initial program team are developing the elements of the program management plans, they are also, on a parallel path, developing the governance processes and structure for the program. These efforts will result in a governance plan. This plan may include identifying the administrative support and structure required, identifying what activities will constitute program governance and how they will be managed and by whom, and identifying the other support and infrastructure responsibilities that may exist.

Today, many organizations have “PMOs.” They may be understood to be project management offices or program management offices (as PMO means in this course), and their roles and responsibilities are as various as the organizations that they serve. These offices may be an enterprise-level resource that provides templates, processes, and methodologies for the practice of program or project management or may directly support a specific program or project. When a support group directly supports a program, it is sometimes referred to as a program office vs. a program management office.

Regardless of how an organization chooses to organize, what a program manager must address is the governance and support responsibilities required by the program and how they are to be addressed. The program manager must be aware of what types of organizational governance processes and structures already exist so that redundant or, worse, conflicting direction is not provided.

Identifying Required Governance ActivitiesFrom the program manager’s perspective, governance can be understood as looking both “up” and “down.” That is, looking up to maintain strategic alignment, provide an overall financial assessment of performance, and assess the ongoing benefits and status of deliverables; and then looking down to ensure that tasks are performed in each phase and to establish a process for lessons learned and best practices identification. As a consequence, governance activities span all phases of the program life.

Program Planning is the time to identify what activities will be performed as part of program governance. The program manager should clearly understand the role and responsibilities of any existent program management or project management office. The goal is to use what already exists. The program manager must decide what governance activities are to be communicated to the project managers, what governance activities are specific to the program, and what governance activities are required to support organizational expectations.

Typical governance activities that are specific to project management address the areas of standards for project management methodology, tools and processes, standards, status reporting, escalation procedures, and documentation requirements.



Typical governance activities that are program specific address processes and procedures for master schedule and interdependency management, status reporting, resource management, financial management, procurement and vendor management, issue management, configuration management, change management, benefits realization, contingency management, communication and stakeholder management, and transition management.

Typical program-specific governance activities that are organizational specific address strategic alignment, an ongoing benefits assessment, overall financial analysis, and deliverable status.

Governance Structure—The Program Management/Program Office

Governance Structure—The Program Management/Program OfficeThe supporting infrastructure for the program typically will be called a program management office or PMO. The PMO is responsible for identifying the policies and procedures for program management, including the program management methodologies, template sets, and standards. The PMO also will have the responsibility for maintaining the activities that are program specific as identified earlier, including managing the master schedule and finances for the program.

This office may provide enterprise-wide support or support to a specific program. It will typically consist of the program manager and others assigned to execute governance activities.It is also necessary to continue staffing the program team so that the necessary skills and knowledge are available. The PMO staff may also include the following staff roles:

Business analysts from each major area of the organizationTechnical team members that cross programs and projects

ArchitectsTechnical writers

Process analystsProcurement specialistsFinancial analystsProject management mentors and persons who directly oversee projects or groups of projects within the program (in a large program that would be second-level project managers)Administrative support



The support roles in the PMO vary depending on the needs of the program. For example, some programs might need scheduling experts, whereas others may need process analysts. However, any affected area of the organization must be involved in the program, even across project boundaries.

The nature of the PMO can vary depending on the organization and program. Sometimes it serves merely as a support structure, and, on occasion, the program manager might not be part of the program office.

Technical disciplines that also cross projects—but need not be assigned to any specific project on a full-time basis—are candidates for inclusion in the PMO. Business processes will be affected by multiple projects within the program and may also cross functional boundaries within the organization. As such, managing these impacts is an appropriate function for the program office.

Program Team StaffingThe following tips can assist in effectively staffing a program team:

Choose program team members who represent the roles/expertise needed to manage the program.Use a staffing management plan for handling constant change in a program. Programs have constant change: Some projects are ending while others are starting, and some resources are leaving while others are arriving.Consider the functions that need to be performed and how to staff them.

For the purposes of this course, we will assume that we are staffing a program in a matrix organization. This requires more effort to define and promote the priority of program efforts. It also involves extensive planning and negotiating, and encourages matrix managers to separate staff members from day-to-day support issues.

To secure an expert that the program manager can leverage across the program’s projects, the program manager may need to allow the expert initially to work part time for the program and to work part time training a replacement for the role in his or her functional department. Program managers have been known to pay for the training time by agreeing that the expert will be



dedicated to the program full time after a certain amount of training time for his or her replacement.

Organizational Roles in Program Governance

Organizational Roles in Program GovernanceAlthough the program manager will address the necessary governance issues for a specific program, it must be done with an understanding of the organizational governance structure and decision-making apparatus. The following organizational bodies and individuals can exist within organizations today, and the program manager should understand their roles, responsibilities, and expectations:

Program board /steering committee: Represents the interests of the organization and makes business decisions about the programExecutive sponsor: Has a primary responsibility to the organization for delivery of benefits and participates with the program board in making business decisions about the programProgram director: Has executive ownership of the program; may be the same person as the sponsor

The review “gates” for the program will be established based on organizational need and are opportunities for program governance and decision making, and will likely involve these roles and individuals. The senior-level decision makers determine whether the program is still viable and whether the program can move to the next life-cycle phase.

Establishing Program Metrics

Best Practices for Program Control Using Metrics

Some best practices for program control and measurement via the use of metrics follow:Establish how the organization will measure the success of a strategic initiative. Knowing what to measure and how to calculate the measure is an important factor for program success.Establish frequent interim measurements (expressed in business terms) to ensure that deliverables support strategic objectives and that the program is on the right track as the solutions are developed.Assess and report on the adoption of processes, objectives, and changes that result from the deliverables. This assessment can occur after the end of the program or during the program as the deliverables are being implemented.Measure deliverables at checkpoints during their deployment and initial use.



Use the assumptions in the business case to continually assess the reality of the proposed benefits and the achievement of program and strategic objectives.Use multiple levels of measurements. Measurements are necessary at the project, program, and organizational levels.

Three Categories of Metrics

The program manager typically manages three types of metrics.Project managers develop and maintain traditional measurements within the program such as technical measurements; traditional tracking; earned value; and the triple constraints of cost, time, and scope.Program managers ensure that an ongoing tie to benefits realization and program objectives exists and that the measurements are in place and updated regularly. These measurements may involve the intermediate realization of benefits as the program progresses. They should periodically revisit the assumptions underlying the business case to reassess their validity.Organizational measurements: The organization as a whole needs to know how it will measure the realization of strategic initiatives. The program needs to demonstrate support for these initiatives. Ensuring that it does so is the job of the program manager, whether these measures will be taken during the program or after transition to an operating environment.

Program Governance—KPIs and CSFsThe program manager should consider the use of key performance indicators (KPIs) to measure trends during the program life cycle. The program manager should also measure critical success factors (CSFs) to ensure the program has delivered the benefits anticipated.



Determine Other Infrastructure Requirements

Determine Other Infrastructure RequirementsOther infrastructure requirements may be necessary to support the program, including IT systems and communication technologies with the necessary support arrangements to sustain the program throughout its life cycle. In addition, buildings, tools, facilities, and other required infrastructure to support the program must be identified.

Critical Success Factors During Program Planning

Critical Success Factors During Program Planning

Strategic AlignmentDuring Program Planning, the program manager and the team develop the plans for the program to ensure that the details of the program achieve the desired strategy. Consistency of program objectives with strategic objectives must be maintained.

Benefits ManagementDuring Program Planning, the program manager establishes the infrastructure for benefits monitoring and revisits the benefits realization plan. Moreover, the program manager determines how benefits realization will be communicated to stakeholders.



Stakeholder ManagementIt is necessary to identify and analyze stakeholders who have authority for program governance. Moreover, tools for communicating with stakeholders should be developed that support the stakeholder management plan.

Program GovernanceProgram governance is one of the two main focus areas of this phase. The following governance activities specifically occur during Program Planning:

Setting up the program office with the roles/functions needed to support the programOrganizing program governance mechanisms for—

Reporting program statusDeveloping program measurementsAssessing benefits deliveryEnsuring the alignment of benefits with strategic goalsMonitoring program schedule and interdependenciesMaking program decisionsMonitoring and controlling risk

Deciding whether the program is ready to proceed to Delivery of Capabilities and Benefits


Summary and Next StepsThe third phase in the program life cycle, Program Planning, focuses on planning the program and installing structures to support the program and program management.

The program management plan and all additional plans are created during Program Planning. This planning work builds on the work done in the business case and the charter. The scope of the program is identified further with the objectives, which leads to the more detailed development of program requirements, the architecture, and the PWBS. This work then will contribute to the planning for the projects. Along a parallel path, the program office and governance mechanisms are created. The activities involved in good program governance include developing metrics, recording deliverables, making program decisions, tracking benefits, and monitoring risks.

The necessary infrastructure (such as buildings, technology, facilities, and tools) is set up to support the program and to manage benefits realization and stakeholder communication.

Now that we have developed the program management plan and organized these infrastructure and governance requirements, we are ready to implement the program. The next module will



focus on program implementation by discussing the next phase of the program life cycle, Delivery of Capabilities and Benefits.



Module 5Delivery of Capabilities and Benefits

Introduction

OverviewThis module explores the fourth phase of the program life cycle, Delivery of Capabilities and Benefits. This phase involves initiating the projects to meet program objectives and realizing the benefits. More specifically, Delivery of Capabilities and Benefits involves initiating the projects or components, monitoring the program, responding to changes, managing program and project-level risks, and executing preventive and corrective action procedures for projects and programs. This module will consider the need for coordinating activities, resources, and interdependencies between projects and other programs and any ongoing activities. In addition, managing the transition to the target state and effectively accomplishing organizational change will be explored. Finally, the module will address activities related to the critical success factors of strategic alignment and program governance, together with stakeholder and benefits management, during this phase.

Purpose of Delivery of Capabilities and Benefits

Purpose of Delivery of Capabilities and BenefitsIn this phase, the project outcomes are realized as a series of additions, primarily because each part will ultimately combine toward the program’s total benefit. The realization of the program’s total benefits generally occurs in one of two ways: The benefits are realized at the end of the program (for example, building a bridge or tunnel) or the benefits are realized in stages or increments (for example, a process reengineering program may realize benefits when certain geographies or certain divisions are reengineered). The focus in this phase is initiating components, benefits realization, stakeholder management, monitoring and controlling programs, and dealing with program challenges.

Module 5: Delivery of Capabilities and Benefits


Implement the Governance Structure to Monitor and Control the Program Components/Projects

Implement the Governance Structure to Monitor and Control the Program Components/ProjectsDuring Program Planning, the governance activities to be performed by the program manager and team were identified. In this phase, the program manager must ensure that the project-specific governance activities have been defined and are being implemented. Among those governance activities are ensuring consistency in project management processes and methodology, tools, templates, and status as well as progress reporting.

The program manager may seek to encourage rather than enforce adherence. By doing so, he or she is helping the project managers to see the value of putting the right processes in place and following the proper procedures. It is also a good idea for the program manager to partner with the project managers to improve the processes.In addition, program managers need to ensure that project managers adhere to established project management methodologies by—

Conducting quality assurance activities such as program/project reviews and health checksDetermining who performs these activities and how often

The quality assurance activities to review processes should be conducted at regular intervals and might include program/project reviews and health checks. The program managers should determine who performs these activities and how often.

Initiate and Manage Program Projects to Achieve Program Objectives

Initiate and Manage Program Projects to Achieve Program ObjectivesThe program manager is responsible for managing the optimal timing of the deliverables (in relation to other deliverables) to achieve benefits. For example, maximum benefits may be achieved if “Deliverable X” is no more than three weeks before “Deliverable Y” and no later than two weeks after.There is no formula for sequencing projects, as every program is different. Guidance and constraints will be provided by the high-level road map, the architecture baseline, and the program master schedule. Consider the following areas to facilitate this activity:

Cross-project interdependencies (the relationship among project deliverables)



External interdependenciesLinkages between projectsResource availabilitiesMarket demandLegal and regulatory requirements

Project start-up involves aligning projects with program objectives and the benefits realization plan; outlining key project roles (sponsor and project manager); and developing the project charter, including objectives, scope, and deliverables.

The Dynamic Nature of Programs

Programs are dynamic and, thus, do not follow a strict, linear pattern. In Program Planning, the program is being planned, which includes defining the projects within it. However, the projects defined in Program Planning are probably only the initial projects in that, as the program proceeds (throughout multiple years, typically), there will be changes, and opportunities will arise that will require other projects to be considered. By Delivery of Capabilities and Benefits, an idea may emerge that needs to be studied from a feasibility perspective. As a result, a project business case then would be developed to determine whether it makes sense to launch this newly conceived project. This scenario becomes more the rule than the exception in the types of strategic and long-term programs under focus in this course.

Coordinate and Manage the Program’s Projects and Nonproject WorkInitiating and managing the projects and nonproject work involves ensuring that common activities and interdependencies between projects are coordinated. It also means that the high-level road map is revisited, updated, and enhanced with greater detail as the program progresses. Changes to projects also have to be addressed in the context of the architecture baseline to understand how newer projects interface with originally planned projects. The top-down control and coordination of projects is best performed via the use of the program master schedule. Special software can be used to create a program master schedule for the purpose of viewing all project schedules in one high-level view. The main areas to be viewed are benefits



realization milestones, project titles, and major blocks of activities having information on project initiation and benefits delivery.

In addition to monitoring and controlling the high-level road map, the architecture baseline and the program master schedule, the program manager should also be monitoring and controlling the progress toward the realization of benefits via the use of benefits realization milestones. These milestones would have been identified in the benefits realization plan.

Coordinating the projects also involves coordinating the efficient use of resources across the program and project activities as well as making program and matrix resources available to projects. The intent is to best use available resources based on the program’s priorities, not on individual project priorities. It is facilitated by using program management software.

Monitor and Analyze Progress Against the Program Management Plan

Monitor and Analyze Progress Against the Program Management Plan

Analyze progress to the plan using the high-level road map, architecture baseline, master schedule, and financial management planDuring Delivery of Capabilities and Benefits, projects are monitored to ensure that the following criteria occur or are maintained:

Meeting traditional metrics based on project constraints or earned value management (EVM)Project deliverables meeting requirementsAdherence to project schedulesEffective identification and management of risks, issues, and assumptions



Accuracy of estimatesEffective project cost and benefit trackingSufficient resources

Availability and quantity of funding, skills, training, and so onOngoing assessment of benefits

Best practices for monitoring benefits realization include the following:Establish the infrastructure for monitoring benefits.Revisit the benefits realization plan.

Include intended interdependencies between benefits being delivered among various projects within a program.Ensure the alignment of benefits with the strategic goals of the organization.Include a schedule for benefits delivery.Include how benefits will be measured (metrics and measurement).Outline who is responsible and accountable for delivery.

How to Ensure Project Outputs Meet RequirementsQuality control and review activities are geared at ensuring that deliverables meet requirements. These activities may include testing, discovering defects, and defect management.

Quality control involves determining whether project and program metrics are being met. It is, therefore, necessary for the program manager to be familiar with both project and program metrics. Project metrics include the traditional metrics based on the project constraints and EVM. Program metrics are based on ROI and the cost-benefit ratio, the initial realization of organizational benefits from the first projects completed, operational performance trending in the desired direction, the assessment of whether expected future benefits are realistic based on the current reality, EVM, and service-level agreements (SLA).

Perform Internal and External Environmental Scans

Identify and Respond to Internal and External Environmental Changes to Ensure Strategic AlignmentBoth internal and external environmental changes may affect the program. These changes should be identified and addressed to ensure that the program changes still align with the strategic objectives of the organization.

Having well-documented and accessible processes, tools, and job aids in place for program and project management can help reduce the affects of changes to the internal environment.



There are external factors that lie outside the control of the program manager. These include: regulatory changes, market surges or downturns, economic factors, human or natural disasters, and so on.

Manage Resources to Ensure Program Priorities Are Maintained

Coordinate and Manage the Program’s ResourcesThe program manager is responsible for ensuring the efficient coordination of resources across the program and project activities. The key responsibility here is to ensure that resource assignments are based on program priorities and not individual project priorities. The program manager must also ensure that matrix resources are available to the project as required. The program manager can leverage a higher-level view to identify the most constraining resource(s) and maximize the productivity of those for the overall benefit of the program.

The program manager is also concerned with developing the team and cultivating the skills of individual contributors, which is an ongoing process. An example would be providing business analysis training and project analysis training to team members to enhance program performance.

Virtual teaming—that is, having staff that is physically or geographically dispersed—is a common concern in program environments. Scheduling issues and altered team dynamics are some virtual team challenges that the program manager must face during programs.

Manage Risks and Contingencies

Manage Risks and ContingenciesManaging project and program risks is crucial during this phase. Risk management entails monitoring and controlling risks that were identified previously, implementing risk response plans that were previously developed, and being alert and observant of new risks. It is an iterative process.

Considerations When Managing RiskWhen managing risk, include the following considerations:

Delegate project risk management to project managers.Seek interdependencies among risks and response strategies.Be aware of large program risks that may impact the projects.



Be attentive to project risks that might impact other projects.Consider that risk response strategies may affect other projects.Be conscious that all project-level risks and strategies must be visible at the program level.

The reason why it should be emphasized that all project risks must be visible at the program level is because individual projects may not be able to perceive how they can affect other projects or the overall program.

At this juncture, decisions may now be made about responding to risk by using contingencies or risk reserves that were included previously in the program budget.

Identify Issues and Ensure Preventive or Corrective Actions Are Taken

Identify Issues and Ensure Preventive or Corrective Actions Are TakenFor a description of typical issues and strategies for solving them, see Appendix C, Pitfalls and Strategies in Program Organization in this Reference Manual.

Manage the Transition from the AS-IS to the TO-BE StateThe program manager must be prepared to deal with issues that arise as the program moves the organization from the AS-IS to the TO-BE state.

This activity involves identifying the interim transitions, determining how you will measure and monitor them, and deciding when and how the transitions will occur. The program manager must also understand gap analysis, which studies the space between where you are and where you want to (or should) be and defines the road map for program change.



Ensure Change Management Plans Are in Place

Ensure Change Management Plans Are in PlaceA program is an instrument of organizational change. It is essential that the program manager help people deal with that change. Organizational change requires—

A thorough and honest understanding of the AS-IS stateThe identification of the correct issuesThe selection of appropriate best practices and benchmark organizations for comparisonA sufficiently detailed TO-BE definition that considers all the factors necessary for sustainable change

The program manager must anticipate and be prepared to deal with organizational resistance to change. This should be addressed in program planning activities, but not all areas of resistance may be identified at that time. The program manager should understand where the program’s deliverables may involve unanticipated power shifts, encounter a difficulty with acceptance of change or surface technical conversion issues, and run up against culture clashes. The program manager should also be aware of any lack of leadership or transfer of information. It is the responsibility of the program manager to be prepared to address these issues.

Communicate with Stakeholders and the Program Governance Board

Communicate with Stakeholders and the Program Governance BoardWhen communicating with stakeholders, reporting the benefits achieved should be the top priority and should include the early capture of organizational benefits from the first projects completed. In addition, the benefits expected in the future, based on a comparison with the current reality, should be assessed and communicated. It is essential to manage stakeholder expectations throughout the program life cycle.

Stakeholders should also be kept current of the program status and included in the management of out-of-scope requirements/expectations.

Unfortunately, too many programs just report on program status and neglect benefits realization.



Other Considerations—Transition to O/M

Other Considerations—Transition to O/MTransitioning to the product life cycle or operations may occur during the Delivery of Capabilities and Benefits phase.

Every organization has a different approach to transitioning to the product life cycle or operations. The product life cycle can be explained in the following way. A “product” is a project deliverable, and projects produce products. However, projects close down, and the product still must be maintained. At some point in time, however, the product may be/is taken out of operation.

The transition to the product life cycle might be handled in the benefits realization phase or the program closeout phase. Some projects, such as a major upgrade to the IT system, get immediately folded into O/M. With other products, such as brand-new ones, the programs may provide O/M for some time prior to transitioning. Regardless of how this transition is accomplished, it is important that the program manager obtain an understanding and agreement of how it will be managed as early in the program as possible.

Critical Success Factors During Delivery of Capabilities and Benefits

Critical Success Factors During Delivery of Capabilities and Benefits



Strategic AlignmentDuring Delivery of Capabilities and Benefits, the program manager must continue to scan the external and internal environment, maintain focus on the “big picture,” provide leadership for organizational change, and revisit the business case to ensure ongoing strategic alignment.

Program GovernanceThe program manager must also ensure the project governance structure is executed to monitor and control the projects. The governance structure, which was established during the previous life-cycle phase, is now meeting more frequently and formally.

The program manager should review the program governance structure with project managers. The project governance structures, in turn, should map to the program governance structure. Project managers must understand project success or failure and how it relates to benefits and any changes in the program.

Benefits ManagementDuring Delivery of Capabilities and Benefits, the program manager must maintain the benefits realization plan. Focus will be on managing interdependencies and the program master schedule with the goal of maximizing benefits realization.

Stakeholder ManagementStakeholder management during Delivery of Capabilities and Benefits involves understanding and managing stakeholder expectations, reporting status and benefits realized, communicating the expectation of future benefits, and engaging stakeholder support for organizational change.


Summary and Next StepsDelivery of Capabilities and Benefits, as the fourth phase of the program life cycle, concerns achieving project outcomes (intermediate benefits) that lead to the program’s total benefits.

Key activities during Delivery of Capabilities and Benefits include initiating projects, monitoring progress, managing risk, maintaining high project management standards, managing organizational change issues, and ensuring that deliverables meet the requirements.

The program manager should ensure that projects align with program objectives and benefits realization. In addition, all project-level issues, risks, and response strategies should be visible at the program level so that they do not negatively affect the program or other component projects.



Leading organizational change and the transition to the TO-BE state are critical activities in this phase. They call for special leadership skills from the program manager.

Other considerations at this time include developing the team, implementing corrective actions, and moving the product to O/M.

As part of good governance, the program manager should closely monitor all levels from the portfolio to the projects and manage cross-project links and interdependencies.

In the next module, we will explore the final phase of the program life cycle, Program Closure.



Module 6Program Closure

Introduction

OverviewThis module explores Program Closure, the final phase of the program life cycle. The module will outline the activities that occur during program closure, including obtaining agreement from stakeholders regarding benefits realization, identifying future opportunities, transitioning a program to operations and maintenance (O/M), capturing lessons learned and closing down the program in an orderly fashion. In addition, we will discuss the critical success factors of strategic alignment, program governance, and stakeholder and benefits management during this phase.

Purpose of Program Closure

Purpose of Program ClosureThe purpose of this phase is controlled closure of the program. The focus of Program Closure is to validate benefits status; ensure stakeholder satisfaction; disband the program; dismantle the infrastructure; document lessons learned; store program documents for future reference; and transition ongoing operations, benefits, and management to O/M. Even when a program is terminated prematurely, program closure is essential.

Validate Status of Benefits Realization with Stakeholders

Validate Status of Benefits Realization with StakeholdersThe purpose of this activity is to ensure that stakeholders are in agreement on the benefits being realized and the objectives being achieved. During Program Closure, the program manager performs a final review of the benefits that have been tracked against the program management plan. The following best practices can assist this process:

Use a performance analysis report.

Module 6: Program Closure


Use the benefits realization plan.Employ previously established metrics.Evaluate whether the products, services, and results of the program have met the overall needs.Hold a stakeholder review meeting.Provide stakeholders with an opportunity to complete a stakeholder satisfaction survey.

Disband the Program Organization, Infrastructure, and Team, and Ensure Effective Redeployment Where Appropriate

Disband the Program Organization, Infrastructure, and Team, and Ensure Effective Redeployment Where AppropriateAt this point, it is necessary to ensure that arrangements are in place for the appropriate redeployment of both human resources and physical resources.

The program manager must disband the program organization and supporting infrastructure. When an independent program office is established, the facilities, personnel, and technology must be disbanded and redeployed as required. Team members should be recognized for their contributions, and the program manager should facilitate their transition to their next assignments.

Provide for Ongoing Customer Support and Maintenance

Provide for Ongoing Customer Support and MaintenanceThe program manager should ensure that a process exists for ongoing issue or defect resolution after the deliverables have been accepted by the customer or user organization. Ideally, this process should be identified and agreed to earlier in the program life cycle.



Document Lessons Learned for Future Organizational Retrieval and Use

Document Lessons Learned for Future Organizational Retrieval and UseThe purpose of documenting lessons learned is to identify organizational weaknesses (areas to improve) or strengths (best practices). Although lessons learned should have been recorded throughout the program life cycle, at this stage, their documentation needs to be formal. Often, the lessons learned are derived from other program management processes, which created them as outputs. The lessons learned need to be analyzed and integrated into the program closure report. This information—when captured in a usable way—can be used in the future to improve overall program success.

Provide Feedback and Recommendations for Future Opportunities

Provide Feedback and Recommendations for Future OpportunitiesIt is not uncommon for the program manager or program team to identify opportunities for future benefits as the program progresses through its life cycle. These opportunities may be outside the program’s scope and not immediately realizable. They should be identified and documented by the program manager so that the organization can evaluate and possibly pursue them after the program closes. These opportunities may involve the identification of new service or product ideas, additional productivity improvements, new market areas, or follow-on customer business.

Archive and Maintain all Documentation for Future Use or Audits

Archive and Maintain all Documentation for Future Use or AuditsMany programs frequently result in audits due to the size of the investment in them and/or their lengthy durations. These audits may be performed by outside auditors to ensure that financial standards were followed or by internal auditors to ensure that standard processes have been followed. The program manager should ensure that all required documentation is up-to-date and available for these audits.



Manage Any Additional Required Transitions to O/M

Manage Any Additional Required Transitions to O/MAlthough planning for O/M should have begun during Program Proposal, the transition to O/M is a main deliverable of this phase, and managing this transition is a critical activity. Follow these best practices when transitioning to O/M:

Best Practices for Transitioning to O/MEnsure that all operations are running at expected levels before the transition.Determine who manages operations.Ensure that the customer support and maintenance systems are in place and operational.Have response plans in place to handle product maintenance concerns.Consider metrics around the return on investment (ROI), payback period, and benefits realization (but they cannot be measured until well into O/M).

Critical Success Factors During Program Closure

Critical Success Factors During Program Closure

During Program Closure, strategic alignment involves ensuring that the strategic objectives were met. Program governance involves managing any required transition to O/M and disbanding the program organization and infrastructure. Benefits management involves validating benefits realization and ensuring a plan for transitioning ongoing benefits realization to operations.



Stakeholder ManagementStakeholder management at this phase involves reviewing the status of benefits with the stakeholders and the program sponsor, achieving formal acceptance of the benefits realized, and ensuring that needs have been met.

Summary

SummaryA key activity of Program Closure is ensuring that stakeholders agree on the benefits realized. This stakeholder and benefits management activity can be facilitated by using a survey and holding a meeting to review the benefits. The program manager and program team should also provide feedback and recommendations on any opportunities identified but outside the scope of the program. Closing down the program and transitioning ongoing activities to O/M are the two main outcomes of this phase and program governance activities. Capturing lessons learned is paramount at program closeout and should include both organizational strengths and weaknesses.



GlossaryAS-IS

The current or existing state.

Benefit

A benefit is the description of the improved future performance of an organization resulting from the program’s activities. It can include such improvements as greater revenue generation or efficiency, customer satisfaction, or employee satisfaction and morale.

Benefits Map

A visual depiction of the links between the program deliverables, their capabilities and benefits, and the outcomes that the organization desires.

Benefits Realization Plan

A document that describes the intended benefits of a program, the benefit owner, the metrics to be used to measure the current and improved performance, and the dates or milestones when the benefits can begin to be measured.

Blueprint

A document that describes the “TO-BE” state in detail. It is initiated by the development of the vision statement for the program but goes beyond the vision statement by adding detail describing the changed future state including processes, organizational structure, information systems, and technology. It does not describe how to achieve the vision but more clearly defines the vision.

Business Case

A document developed to assess the justification of and obtain approval for a possible investment. It would include a cost/benefit analysis. The business case can be strictly a financial analysis of the proposed program investment or it can include a description of the strategic alignment, organizational change required, stakeholders involved, and a preliminary identification of the work (project, subprograms, nonprogram) involved.

Business Rule

Obligations concerning actions, processes, and procedures that define, and possibly constrain, some aspect of the business. They govern the way a business initiates actions and responds to situations under various conditions.

Change Control

Change control in the program environment involves scanning the internal and external environment for risks to program benefits and outcomes and opportunities for future benefits and outcomes, and making adjustments to the program’s activities as required. Risks may involve a change to the projects in the program, and opportunities may require feasibility studies to add projects. Change control at this level also takes into account governance processes and impact on the program’s business case.

Change Management

Process used to introduce, train, and implement a new system or set of procedures (the “change”) in an organization so that the users or beneficiaries of the change assimilate it into their everyday work life. Training is an important part of change. Change management is basically a process of acculturation. In a program environment, change management describes

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the organizational, cultural, and behavioral changes required to achieve the desired outcomes and plans, and implements the appropriate activities and interventions.

Component

A component is simply a piece of a program. Component can, and most typically refers to a project that is part of a program. But, components include all aspects of programs, projects, subprograms, and any nonproject work.

Constraints

Any factor, including, but not limited to, time, cost, and scope that restrains a program team's choices. Programs are additionally constrained by the strategic objectives of the organization.

Contingency

(1) Provision for any project or program risk elements within the project or program scope; particularly important when comparison of estimates and actual data suggests that certain risk events are likely to occur. If an allowance for escalation is included in the contingency, it should be a separate item, calculated to fit expected price-level escalation conditions for the project or program. (2) Possible future action that may stem from presently known causes, the cost outcome of which cannot be determined accurately.

Interdependency

Interfaces and interrelationships among components in a program.

Issue

An event or dispute that cannot be resolved at the level at which it exists and requires escalation.

Metric(s)

Measurable criteria that indicate the overall status or performance of a project, program, or project management practice. They can be technical, administrative, or management in nature, the data for which are collected regularly. Viewed by the organization as being necessary to gauge performance and make adjustments to processes and procedures. May include schedule performance, cost data, defect levels, customer satisfaction, employee morale, time-to-market performance, and so on.

Mission (Statement)

The purpose of an organization. Description prepared and endorsed by members of the organization that answers these questions: What do we do? For whom do we do it? How do we go about it? Used as a guide for making decisions in projects and programs. The mission of a program should be clear and consistent with the mission of the organization in which it exists.

Opportunity

(1) Future event or series of events that, if occurring, will have a positive impact on the program or project. (2) Benefit to be realized from undertaking a program or project.

Outcome

The improved future state that an organization is attempting to achieve via program activities. It generally can be measured by the successful achievement of the organization’s strategic objectives for which the program was undertaken.

Output

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A product, service, deliverable, or result created by a project that is required by the program to achieve its desired outcomes.

Portfolio

A collection of projects, programs, and other initiatives grouped together for management and control purposes whose individual objectives and benefits are aimed at satisfying the organization’s strategic objectives.

Portfolio Management

Understanding the strategic objectives of an organization, establishing criteria to objectively evaluate proposed investments regarding the contribution toward achieving these objectives, and making adjustments as internal and external factors warrant.

Program

Group of related projects managed in a coordinated way to obtain benefits not available from managing the projects individually; may include [elements of nonproject work such as] ongoing activities or tasks that are not within the scope of the individual projects but that contribute to the program's intended benefits. (Ward, p. 336)

Program Architecture

The program architecture describes the various deliverables required by the program, how they are related to each other, and how they are best structured and staged to optimize the benefits of the program.

Program Brief

A document that is used to develop the concept for the program and whether or not it is realistic and achievable. It may contain an outline for the vision and business case for the program. The brief may also provide an initial analysis of alternatives. It is developed in the Program Proposal phase.

Program Business Case

The program business case is a high-level overview of the needs, feasibility, justification, and return on investment (ROI) of the program. Its purpose is to demonstrate why the program is a good expenditure of money or other organizational resources and to serve as an objective decision-making tool for judging whether the program is (and remains) desirable, viable, and achievable.

Program Charter

A document which provides information to decision makers to enable the approval or rejection of the program and, if approved, to establish understanding and buy-in from program stakeholders.

Program Governance

The policies, procedures, internal structures, and practices used to manage and monitor a given program.

Program Management

Coordinated management of a related series of projects and nonproject work over time to achieve strategic business outcomes using benefits realization, stakeholder management, and governance.

Program Management Office


Organizational entity established to assist program managers throughout the organization in implementing program management principles, practices, methodologies, tools, and techniques. May also provide assistance on individual programs through coaching and mentoring. In many organizations, the program management office is a support function and is not responsible for program execution. Its main objective is implementing effective program practices throughout the organization.

Program Management Plan

Document that describes the tactical means by which the program will be executed. Consists of the following subsidiary plans: quality plan, human resource plan, risk management plan, contracting plan, communications plan, transition plan, and interface plan, among other components. (Ward, p. 339)

Program Office

Typically a support structure for a specific program.

Program Plan

This plan may be developed during the Program Proposal phase. It goes beyond the program brief in the amount of detail included and contains the strategic justification for the program, the expected benefits and outcomes, and a clear definition of success.

Program Proposal

The program proposal is the document or set of documents that is prepared to describe a business need or opportunity that an organization faces; the cost/benefit analysis of that need or opportunity; and a recommendation that this be addressed by a collection of related projects, subprograms, and nonproject work, that is, a program. The proposal will include a business case that may be high level or detailed. A proposal with a high-level business case will typically include other documents, such as a program brief or program plan, to provide additional information regarding strategic alignment.

Program Sponsor

The person or group that provides the financial resources, in cash or in-kind, for the program.

Program Stakeholder

A person, group, or organization either actively involved in a program or concerned with a program due to positive or negative effects on their interests.

Program Work Breakdown Structure (PWBS)

A work breakdown structure that encompasses an entire program. It consists of at least three levels, associated with definitions, and is used by a program manager and contractors and suppliers, if applicable, to develop and extend a contract work breakdown structure (CWBS). It contains uniform terminology, definitions, and placement in the product-oriented family tree structure. The lowest level of the PWBS is a deliverable that will typically be assigned to a project for creation.

Project

Temporary undertaking to create a unique product or service. A project has a defined start and end point and specific objectives that, when attained, signify completion. (Ward, p. 342)

Project Management

Application of knowledge, skills, tools, and techniques to project activities to meet or exceed stakeholder needs and expectations from a project.

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Risk Event

Discrete occurrence that may affect a project, positively or negatively. In a program environment, a risk event is an internal or external occurrence that can positively or negatively affect the realization of the desired outcome.

Road Map

A road map is a high-level milestone chart that captures the desired outcomes of the business strategy, their timing, and the key deliverables and events required to achieve those outcomes.

Strategic Objective

A statement of measurable, future performance enabling an organization to measure progress toward executing its strategy.

Strategy

Means through which the use of resources accomplishes end purposes for a project, program, or organization.

Threat

Future event or series of events that, if it occurs, will negatively affect the program or project. Also called jeopardy.

TO-BE

The future or desired state.

Tranche

The term is French in origin and describes part of an investment or larger unit. It is used in program management to describe a group of projects that, when completed, provide a capability or benefit that incrementally moves the program closer to achieving its strategic objectives.

Value

A guiding principle that is deemed to be correct and desirable regarding the behavior involved with the conduct of business.

Vision

Description of the desired or future state; gives shape and direction to the organization’s future. The vision should provide a picture of the better future the realization of organization’s strategic objectives will create.


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