Standard for Program Mgmt (1)

© Copyright 2007 by Garry Flemings, Lorraine Henry, and Renee Wickes

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The Standard for Program Management

Presented May 16, 2007

By

Garry Flemings, PMP

Lorraine Henry, PMP

Renée Wickes, PMP, MBA

For

PMI® Heartland Chapter


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Overview

• Historical context

• The Structure of Program Management

• Introduction to Program Management

• The Program Management Life Cycle

• Program Management Processes

• Applying Program Management


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Context

• 1969, Project Management Institute forms– Today, PMI “with more than 200,000 members in over

150 countries, is the world’s foremost advocate for the project management profession. A vital and forward-thinking organization, PMI is comprised of 247 chartered chapters …” (www.PMI.org, Mar 4, 2007)

• 1987, A Guide to the Project Management Body of Knowledge first published– updated in 1996 and 2004– now approved as an American National Standard

(ANS) by the American National Standards Institute (ANSI)


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Context (cont’d)

• 2003, Organizational Project Management Maturity Model published: helps organizations assess strengths and weaknesses

• 2006, The Standard for Portfolio Management published

• 2006, The Standard for Program Management published


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Standard

• Definition: “something considered by an authority or by general consent as a basis of comparison; an approved model” The Random House College Dictionary

• For the standards in this discussion, the authority is PMI.

• These standards are approved models for your company to use in designing your processes.– Good: “We based our company’s processes on PMI

standards.”– Less meaningful: “Our company uses PMI

processes.”


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Portfolios, Programs, and Projects

• Program Management, p 9


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Project Management

• Definition, project: “A project is a temporary endeavor undertaken to create a unique product, service, or result.” PMBOK® Guide, p 5

• Definition, project management: “the application of knowledge, skills, tools and techniques to project activities to meet project requirements.” PMBOK® Guide, p 8

• PMP, Project Management Professional: “the profession’s most globally recognized and respected credential” www.PMI.org, Mar 4, 2007


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Program Management

• Program: “a group of related projects managed in a coordinated way to obtain benefits and control not available from managing them individually.” Program Management, p 4

• Program management: “the centralized management of a program to achieve the program’s strategic benefits and objectives.” Program Management, p 4


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Portfolio Management

• Portfolio: “a collection of components (i.e., projects, programs, portfolios, and other work such as maintenance and ongoing operations) that are grouped together” Program Management, p 5

You cannot not do portfolio management. You’re doing it!

• “A portfolio always exists within an organization and it is comprised of a set of current initiatives.” Program Management, p 6


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Structure of Program Management

• Chapter 1: Introduction– Defines “program” and “program

management”– Relates program management to portfolio

management, to project management, and to organizational planning

– Introduces themes of program management• Benefits management• Program stakeholder management• Program governance


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Structure (cont’d)

• Chapter 2: Program Life Cycle and Organization– Introduces a life cycle model of program

management– Relates the themes from Chapter 1 to all parts

of the life cycle– Discusses the phases of the life cycle in more

detail


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Structure (cont’d)

• Chapter 3: Program Management Processes– Breaks the phases of the model into 36

processes.• Similar: the PMBOK® Guide breaks project

management into 44 processes.

– Discusses each process in some detail.• We won’t cover them in this 75 minute period. We

will cover the phases.


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Part 2 - Program Life CyclePart 3 – Program Processes• Program Life Cycle

– Program Governance– Program Benefits– Program Stakeholder Management

• Program Processes– Initiating– Planning– Executing– Controlling– Closing


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Program Life Cycle

1. Pre-Program Set up

2. Program Setup

3. Establishing a Program Mgmt &

Technology Infrastructure

4. Deliver Incremental

Benefits

5. Closing the

Program

G = Gating Review

G5G3G1 G4G2

Stakeholder Identification

Identify Internal & External

Stakeholders

Mandate

Identify Key Interests

Governance Initiation

Establish program

Develop Charter & Business Case

Secure Program Selection

Follow Project Selection Process

Benefits Identification

Identify & Quantify Business Benefits

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


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Program Life Cycle


2. Program Setup




Benefits

5. Closing the

Program

G = Gating Review

G5G3G1 G4G2

Governance Set-Up

Align Program with Org Strategic

Direction

Detailed Program Plan

Mandate

Benefits Analysis

Derive & Prioritize

Components

Derive Benefit Metrics

Stakeholder Analysis

Analyze Key Expectations &

Motivations

Initial Risk Identification

Program Change Impact Analysis

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

Establish Communication

Preferences


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Program Life Cycle


2. Program Setup

3. Establishing a Program

Mgmt & Technology

Infrastructure


Benefits

5. Closing the

Program

G = Gating Review

G5G3G1 G4G2

Governance Planning

Infrastructure Completed

Establish PMO

Monitor & Control Framework Completed

Mandate

Systems & Communications

Completed

Benefits Planning

Map Benefits into Program Plan

Establish Benefits Realization Plan

Establish Benefits Monitoring

Stakeholder Planning

Stakeholder Risk Analysis & Risk

Profiling

Assess Stakeholder Influence & Importance

Stakeholder Roles & Responsibilities

Monitor & Control Resource Mgmt Communication Mgmt


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Program Life Cycle


2. Program Setup




Benefits

5. Closing the

Program

G = Gating Review

G5G3G1 G4G2

Initiate Projects

Assess Risk and Initiate Change

Ensure Adherence to Policy

Mandate

Governance Monitor & Control

Benefits Realization

Monitor Components

Maintain Benefits Register

Report Benefits

Assess Program Changes and

Impact to Stakeholder

Maintain Stakeholder

CommunicationMonitor Stakeholder

Influence & Importance

Stakeholder Monitor & Control

Executing Process Controlling & Monitoring


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Program Life Cycle


2. Program Setup




Benefits

5. Closing the

Program

G = Gating Review

G5G3G1 G4G2

Governance Transition

Execute Closure

Mandate

Complete & Archive

Documentation

Lessons Learned

Benefits Transition

Consolidate Coordinated

BenefitsTransfer the

On-going Responsibility

Stakeholder Transition

Transfer the On-going

Responsibility

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


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Applying Program Management

• Initiating– Sales Program

• Company A wants to:– Refocus remote offices processes to be more sales and

marketing driven

– Transfer administrative process to main office

– Reassign remote office staff to focus on sales and marketing responsibilities

– Resources• Production • Business • Technical


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Program Life Cycle

• Program Management, p 9


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• Scope of Project A– To administer

• The payment of resources

– In a way that:• Centralizes administration in the Main Office• Allow for Remote Office input• Provides electronic reports and payments• Utilizes a secure, reliable technology platform• Leverages opportunities to realize increased administrative efficiency• Avoids adverse impact on expenses• Supports audit processing

– So that • Payment of resources timely and accurately and service levels are maintained.

– As measured by• Reduction in staff and expenses by $xxx,xxx



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• Scope of Project B – Eliminate XYZ System– To

• Eliminate Application System XYZ

– In a way that• Reduces system redundancies• Supports processing of data in new technology compliant system• Aligns with objectives of Projects C and D

– So that• Maintenance system costs are reduced

– As measured by• Elimination of system costs



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• Scope of Project D – Service and Support– To:

• Maintain viable production systems

– In a way that:• Supports production online and batch systems• Resolves outstanding service and maintenance issues

– So that:• The application system provides on time availability of on-

lines and reporting

– As measured by• Reduction in number of production support items• Increased Data Quality



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Program OrganizationProgram Board

Initiating Sponsor Sustaining Sponsor

IT Vice PresidentBusiness Adminstration

Production Vice PresidentRemote Office Liason

Program Directors

BusinessIT

Program Manager(s)

BusinessIT

Subject Matter Experts (SME’s)

Production SalesProduction Sales

ITConsulting

Initiative-based Project Resources

BusinessIT

Initiative-based ProjectResources

TBD

Stakeholders

SalesProduct

FinancialInternal Audit

Weekly Program Control

Initiating SponsorProject DirectorsProject Manager

Remote Office Liason


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Project Dependencies and Timeline


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Risk ManagementRISK RESPONSE PLAN AND REGISTER

Project Name/Number: Prepared by: Date:

Project A/ABCDEFG PM 1/PM 2 12/15/2006 Customer/End User Group: Contact Name: Project Type (S/M/L):

Sales Project Directors LARGE Business Unit: Project Manager: Project Sponsor:

Sales Project Managers Project Sponsor

Number Risk Event Probability Impact Overall Risk

Risk Response Risk Owner

1 PM/Planning risk – missing tasks, assumptions, estimates

High Medium Medium Risk Buffer PM’s

2

Knowledgeable resources – resource constraints could cause a delay in anticipated project delivery date

Medium Medium Medium Detailed task estimates have increased Executing Phase dates, we can look for additional skilled resources or implement in phases. At a minimum, we could use small amount of the SME’s time as a consultant.

PM’s

3

Analysts performing program/ project tasks may not be the same analysts that estimated the effort for these tasks. This could result is discrepancies between estimates and the actual effort.

Medium Medium Medium Recruit SME’s to walkthru “vision” with assigned analysts and participate in walkthru’s. Draw from risk buffer, if necessary.

PM’s / SME’s

4 Management and Sponsor acceptance of gating processes

Low Low Low Adherence to governance processes PM’s


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Risk ManagementOverall Risk Assessment Matrix

Impact

High

Moderate Low

High

6

1 0

Probability

Moderate 1

3

0

Low

2

1

3

RISK ANALYSIS MATRIX

Risk Response Strategies

Analysis Avoidance Mitigation Transfer Acceptance

1. PM may have missed tasks or underestimated

Build in appropriate risk buffer

2. Knowledgeable resources Build in appropriate risk buffer

3. Estimator & Analyst Different Recruit assistance from SME’s

Build in appropriate risk buffer

4. Acceptance of gating process Governance process sign off to be required by Sponsor or

IFS PMO

5. Dependency on Other Projects PCR Date Constant communication with other PM’s


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Project Reporting & Communication


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Project Reporting & Communication


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Program Change ControlATTENDEES (name of individual in parenthesis if not in attendance): Project Directors Sustaining Sponsor Resource Managers Project Managers Change Manager Production Support

Project Project Stage

Impl Mar 16

Mar 09

Mar 02

Feb 23

Feb 16

Feb 09

Feb 02

Jan 26

Jan 19

Project A Phase 1 CAT Apr 07 Green Green Green Green Green Green Green Green Yellow

Project A Phase 2A Logical/

Physical Dsn Aug 07 Yellow Yellow Yellow Yellow Green Green Yellow Yellow Yellow

Project A Phase 2B Logical Dsn Oct 07 Red Yellow Green

Purple Green

Purple Purple Purple Purple Purple Purple Project A Pay Phase 2C Not Started TBD Purple Purple Purple Purple Purple Purple Purple Purple Purple

Project A Phase 3 Not Started TBD Purple Purple Purple Purple Purple Purple Purple Purple Purple

Project B Phase 1 Phys

Dsn/CUT/CAT

May 07

Red Yellow Yellow Yellow Yellow Yellow Yellow Yellow Yellow

Project B Phase 2 Not Started

Aug 07 Purple Purple Purple Purple Purple Purple Purple Purple Purple Project D – Feb07 Completed Feb 07 Green Green Green Green Green Green Project D – Apr 07

CAT

Apr 07 Green Green Green Green Green Green Green Green Green Scanning Warranty Jan 07 Green Green Green Green Green Green Green Green Green Project F CAT Apr 07 Yellow Yellow Yellow Yellow Yellow Yellow Yellow Yellow Yellow

Project C CAT Aug 07 Green Green Green Green Green Green Green Green Green Accounting

On Hold On Hold Blue Blue Blue Blue Blue Blue Blue Blue Blue

Manual Process

Execution

Jun 07

Green Green Purple Purple Purple Purple Purple Purple Purple Change Management Execution Ongoing Green Green Green Green Green Green Purple Purple Purple

Project L Completed Feb 07 Green Green Purple Purple Purple

*Legend on Next Slide


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Program Change Control

Note – A project is considered on schedule if all major milestones are within 5 days of their baseline end date. Status Indicators Green No project control problems Yellow Minor unresolved project control problems, in some cases a PCR may be required Red Multiple unresolved project control problems; in most cases a PCR is required Blue Project on hold, not started, or currently inactive

Purple Project in initial planning stages with work plan not yet available or project is in a re-plan status

Project/Proj Mgr Status Stage/Cost to Date Project Control Updates

Project A – Phase 1 PM 1/PM 2

Green CAT Status Issues and Follow-ups: None

Project A – Phase 2A PM 1/PM 2

Yellow

Logical Design/ Physical Design

Status Issues:

Issue 1

Follow ups:

PM 2 - Develop Project Change Request

Project A – Phase 2B PM 1/PM 2

Red

Logical Design Status

Issues:

Issue 3

Follow-ups: None

Project B – Phase 1 PM 3

Red

Test Plans, Physical Design, Code and Unit Test

Status

Issues:

Issue 4

Issue 1

Follow-ups: None

Project D – April 2007 May 2007 PM 4/PM 5

Apr - Green May - Yellow

April - in CAT

May - Physical Design

Resources have been assigned for the May and August PRs.

No Issues and Follow ups:


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Program/Project Change Control


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Lessons LearnedLessons Learned

•Project Experience•Recommended Process Improvements•Other Recommendations

•Areas of Focus •Technical Experience•Schedule Performance•Cost Performance•Risk Management•Team Management•Tool Performance•Release Performance


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Closing

• Differences between Portfolio vs Program vs Project Management

• Overview of The Standard for Program Management

• Defined how a Program is structured

• Suggested ways to apply Program Management


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Q & A

Please complete your evaluations!

Your speakers are:

Garry Flemings, Lorraine Henry, and Renée Wickes.


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Reference Slides


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

http://www.borland.com/resources/en/pdf/white_papers/technology_portfolio_management.pdf

http://www.borland.com/resources/en/pdf/white_papers/technology_portfolio_management.pdf

http://www.amazon.com/Concise-Guide-Program-Management-Fundamental/dp/1557533768/ref=pd_bbs_sr_2/103-4734892-4712621?ie=UTF8&s=books&qid=1175868055&sr=8-2

http://www.amazon.com/Concise-Guide-Program-Management-Fundamental/dp/1557533768/ref=pd_bbs_sr_2/103-4734892-4712621?ie=UTF8&s=books&qid=1175868055&sr=8-2

http://www.amazon.com/Program-Management-Corporate-Information-Technology/dp/0741412268/ref=pd_bbs_3/103-4734892-4712621?ie=UTF8&s=books&qid=1175868055&sr=8-3

http://www.amazon.com/Programme-Management-Demystified-Managing-successfully/dp/0419213503/ref=pd_bbs_4/103-4734892-4712621?ie=UTF8&s=books&qid=1175868055&sr=8-4

http://www.amazon.com/Programme-Management-Demystified-Managing-successfully/dp/0419213503/ref=pd_bbs_4/103-4734892-4712621?ie=UTF8&s=books&qid=1175868055&sr=8-4


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Additional Sources (cont’d)

• Internet– Project Management Institute: www.pmi.org– Heartland Chapter: www.pmiheartland.org

• All PMI standards are available at many sources, including: www.pmibookstore.org


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Presenter

• Garry Flemings, PMP– Technical Consultant,

ASC Information Technology– IT project management since 1992, in both

government and industry– PMP, 1998– President, PMI Heartland Chapter, 2005– email: [email protected]


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Presenter

• Lorraine Henry, PMP– Information Services Project Manager,

Mutual of Omaha– PMP in 1999– President, PMI Heartland Chapter, 2004– email: [email protected]


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Presenter

• Renee Wickes, PMP– Program Manager,

Hewlett-Packard Company– MBA, 1996– PMP, 2002– President, PMI Heartland Chapter, 2007– email: [email protected]


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This Session

• You’ll know the relationship of The Standard for Program Management to the better known A Guide to the Project Management Body of Knowledge (PMBOK® Guide).

• You’ll know the structure of The Standard for Program Management.

• You’ll have considered some ways to apply The Standard for Program Management to Heartland companies.


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Sources of Information

The Standard for Program Management © 2006 Project

Management Institute, Inc. – Chapter 2 – Program Life Cycle and

Organization page 17 – 28– Appendix E – Benefits Assurance and

Sustainment pages 87 – 89

Standard for Program Mgmt (1)

Documents

Transcript of Standard for Program Mgmt (1)