Project Management vs Program Management Strategies for Transition

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Project Management vs. Program Management Strategies for Transition Success Presented by Ruffin Veal III,

Project Management vs. Program Management Strategies for Transition Success Presented by Ruffin Veal III, MSPM, PMP Project Management Institute La Crosse-Rochester Chapter Rochester, Minnesota September 16, 2014

Outline Presentation Overview – – – – Program Management Assumptions What is Program Management?

Outline Presentation Overview – – – – Program Management Assumptions What is Program Management? Program Management vs. Project Management Project & Program Plan Integration Program Management Hierarchy Program Management Office Organizational Structure Program Management Office Business Benefits 5 Major Aspects of Program Management Competency Model Essentials of Effective PMO Roles/PMO Models PMO Key Considerations/PMO Success Factors PMO Capability Maturity Models Key Goal and performance Indicators

Program Management Assumptions Program Management = Simultaneous Project Management Program Management Plans = Combined

Program Management Assumptions Program Management = Simultaneous Project Management Program Management Plans = Combined Project Management Plans Program Management Scope = Combined Project Management Scopes Program Governance = Combined Project Governance ARE ALL INCORRECT!

What is Program Management? Program management is the coordinated management of interdependent projects over

What is Program Management? Program management is the coordinated management of interdependent projects over a finite period of time to achieve a set of business goals. Coordinated management of multiple projects means that the activities of each project team are synchronized through the framework of a common lifecycle executed at the program level by the program core team. Interdependent projects are those that have a mutual dependence on the output of other projects in order to achieve success. Program management ensures the dependencies between the multiple projects are managed in a concerted manner.

What is Program Management? A finite period means that a program is a temporary

What is Program Management? A finite period means that a program is a temporary undertaking, having a point of beginning and the point of ending. A program is of limited duration, a one-time venture which begins with clearly defined business objectives, and ends when the objectives are attained. Accomplishment of the stated business goals is the overriding objective of a program, and the ultimate responsibility of the program manager. Business goals include such things as capturing additional market share, increasing profit through sales and gross margin growth, and strengthening brand value through quality, features and customer support.

Program Management vs. Project Management Program management is strategic in nature, while project management

Program Management vs. Project Management Program management is strategic in nature, while project management is tactical in nature. Program management is entirely cross-functional, while project management focuses on a single function, or limited cross-functional alignment at best. Program management integrates the individual elements of the projects in order to achieve a common objective.

Program Management vs. Project Management

Program Management vs. Project Management

Program Management vs. Project Management

Program Management vs. Project Management

Project Plan-Program Plan Integration Source: Cobi. T 3 rd Edition, Management Guidelines

Project Plan-Program Plan Integration Source: Cobi. T 3 rd Edition, Management Guidelines

Program Management Hierarchy Program Manager Business Objectives and Program Strategy Program Work Breakdown Structure

Program Management Hierarchy Program Manager Business Objectives and Program Strategy Program Work Breakdown Structure B

Program Management Hierarchy B Program Plan (Integrated Project Plans, Schedules and Budgets) Program Success

Program Management Hierarchy B Program Plan (Integrated Project Plans, Schedules and Budgets) Program Success Criteria and Integrated Project Metrics Project Managers Project A Project B Project C Project D Project E Project Plan Project Plan Success Criteria Success Criteria Deliverables Deliverables

Program Management Office & Organizational Structure Genera l Manager P MO Director Progra m

Program Management Office & Organizational Structure Genera l Manager P MO Director Progra m Manager Eng Director En g Proj. Mgr and team Mrktn g Director Mrktng Proj. Mgr and team Man uf Director Financ e Director Qualit y Director Manuf Proj. Mgr and team Financ e Proj. Mgr and team Qualit y Proj. Mgr and team

Business Benefits of Program Management Program management provides a competitive advantage for businesses that

Business Benefits of Program Management Program management provides a competitive advantage for businesses that view and utilize it as a critical business function within their organization. Integration of business elements. Program management is the mechanism by which the work of various operating functions within a company is integrated to create an effective business model, and executing business strategies more effectively than an uncoordinated approach. Aligning business strategy to operational execution. Program management can be viewed as the organizational “glue” that translates strategic business objectives into actionable plans and then manages the tactics to achieve the desired business results.

Business Benefits of Program Management Managing return on investment. Program management practices put a

Business Benefits of Program Management Managing return on investment. Program management practices put a continual focus on the business aspects of developing products, services and infrastructure. Accelerating time-to-money. Time-to-money goals are optimized. The program management model is built on the identification and management of the cross-project deliverables through an iterative and integrated development process.

5 Major Aspects of Program Management Governance: Defining roles and responsibilities, and providing oversight

5 Major Aspects of Program Management Governance: Defining roles and responsibilities, and providing oversight Management: Planning and administering both projects and the overall program Financial management: Implementation of specific fiscal practices and controls Infrastructure: The program office, technology, and other factors in the work environment supporting the program effort Planning: Activities that take place at multiple levels, with different goals. The program plan is not a traditional plan

Program Management Competency Model Customer and Market. This involves having a full understanding of

Program Management Competency Model Customer and Market. This involves having a full understanding of the market or organization that the product, service or infrastructure capability is being deployed in to, and how it will be used by the customer and end user. The better the program manager and his or her team can closely align the final solution with the customer’s needs, the more it will enhance the potential for customer satisfaction and the successful achievement of the business results intended. Business and Financial. This includes the ability to develop a comprehensive program business case that supports the company’s objectives and strategies, the ability to manage the program within the business aspects of the company, and the ability to understand analyze the related financial measures pertaining to the product, service or infrastructure capability under development.

Program Management Competency Model Process and Project Management. The program manager must possess operational

Program Management Competency Model Process and Project Management. The program manager must possess operational competencies, including project management methods and tools, to effectively manage the tactical elements of the program. Another important aspect of this core discipline set is that of becoming proficient in the specific processes and practices of the company that the program manager is a part of. Knowing how things get done, the policies and procedures that must be adhered to and who must be involved and approve various aspects of their program are critical for the successful completion of every program.

Program Management Competency Model Leadership. This is needed to effectively lead multiple crossdisciplined project

Program Management Competency Model Leadership. This is needed to effectively lead multiple crossdisciplined project teams that are a part of the program. The program manager needs to have the capability to build, coalesce and champion the team to achieve product, service, and infrastructure solutions that will satisfy the company’s customers.

Elements of an effective Program Management Office

Elements of an effective Program Management Office

Program Management Office Roles Program office management Resources coordination Budget administration and procurement Risk

Program Management Office Roles Program office management Resources coordination Budget administration and procurement Risk assessment Work products tracking and review Facilities administration Contracts administration Technical support liaison Training coordination Methodology and process support Issues management Communications management Status reporting management

Program Management Office Models One size does not fit all – – – –

Program Management Office Models One size does not fit all – – – – PMO drivers/business needs PM maturity Vision and goals of sponsor Business/organization mission Organization size Number of projects Political and cultural environment Tactical vs. strategic Internal vs. external focus Departmental vs. enterprise Single vs. multiple Staff vs. line organization

Program Management Office Support/Control Model SUPPORT Program administrative support PM standards, methodology, processes Program

Program Management Office Support/Control Model SUPPORT Program administrative support PM standards, methodology, processes Program Consulting and mentoring PM coaching/training/certification Integrated Program Reporting CONTROL Program Audits Cost and Schedule Control Business Case Program Approval Program Prioritization Issue Tracking/Reporting Program Management Master Program Schedule Resource Management Program Document Repository PM tools and tools support IT Asset Management Program Portfolio Management

Program Management Office Key Considerations PMO charter Culture change Implementation strategy Staffing Metrics/Performance Success

Program Management Office Key Considerations PMO charter Culture change Implementation strategy Staffing Metrics/Performance Success factors Maturity of Project Management Practices

Program Management Office Success Factors Clear Charter – Creates clear expectations – Defines boundaries

Program Management Office Success Factors Clear Charter – Creates clear expectations – Defines boundaries for implementation Top-Down Support Bottom up Buy-in Sponsor - Reporting to senior executive Strong enterprise level representation Communication/PR – – – Promotion of services Education of value Performance metrics that demonstrate business and customer value

Program Management Capability Maturity Models Valuable tool for establishing PMO and help define objectives,

Program Management Capability Maturity Models Valuable tool for establishing PMO and help define objectives, charter, and processes Assess current status Compare against best practices Develop strategy and road map for PMO Help communicate vision and get buy in Different models (Cobi. T, OPM 3, ISO 15504, CMM/CMMI)

Program Management Capability Maturity Models Capability Maturity Model (CMM) Capability Maturity Model Integration (CMMI)

Program Management Capability Maturity Models Capability Maturity Model (CMM) Capability Maturity Model Integration (CMMI) Both CMM and CMMI define five distinct levels of process maturity based on Key Performance Areas (KPA’s). The KPA's of CMMI levels overcome the inefficiency of CMM levels to unearth significant architectural flaws.

Program Management Capability Maturity Models Level 1 (Initial): The first level of both CMM

Program Management Capability Maturity Models Level 1 (Initial): The first level of both CMM and CMMI describes an immature organization without any defined processes, run in an ad hoc, uncontrolled, and reactive manner. Level 2 (Repeat): Organizations that repeat some processes attain Level 2 CMM. Level 2 of CMMI however requires management of organizational requirements through planned, performed, measured, and controlled processes. Level 3 (Defined): CMM Level 3 mandates a set of documented standard processes to establish consistency across the organization. CMMI Level 3 is an improvement of CMMI Level 2 and describes the organizational processes in standards, procedures, tools and methods.

Program Management Capability Maturity Models Level 4 (Manage): CMM Level 4 requires organizations to

Program Management Capability Maturity Models Level 4 (Manage): CMM Level 4 requires organizations to attain control over processes by using quantitative statistical techniques. CMMI Level 4 demands likewise, but also identifies sub processes that significantly contribute to overall process efficiency. Level 5 (Optimized): CMM Level 5 mandates use of quantitative tools and objectives to manage process improvement. CMMI Level 5 on the other hand focuses on continuously improving process performance through incremental and innovative technological improvements.

Program Management Office Key Goal Indicators Increased number of programs completed on time and

Program Management Office Key Goal Indicators Increased number of programs completed on time and on budget Availability of accurate program schedule and budget information Decrease in systematic and common program problems Improved timeliness of program risk identification Increased organization satisfaction with program delivery services Improved timeliness of program management decisions

Program Management Office Key Performance Indicators Increased number of programs delivered in accordance with

Program Management Office Key Performance Indicators Increased number of programs delivered in accordance with defined methodology Percent stakeholders participation in programs Number of program management training days per program team member Number of program milestones and budget reviews Percent of programs with post-program reviews Average number of years of experience of program managers

Conclusion Understanding Project/Program differences is essential Program Management maintains a enterprise level perspective One

Conclusion Understanding Project/Program differences is essential Program Management maintains a enterprise level perspective One size does not fit all PMO Support/Control model most useful Clear charter, top down support, & bottom up buy is key to PMO success CMM valuable framework for establishing and evolving PMO Well established models and key considerations are available

References Russ Martinelli -Intel Corporation Jim Waddell -Tektronix, Inc ØAligning Program Management to Business

References Russ Martinelli -Intel Corporation Jim Waddell -Tektronix, Inc ØAligning Program Management to Business Strategy ØProgram Management: Linking Business Strategy to Product and IT development ØProgram and Project Management: Understanding the Differences ØThe Program Strike Zone: Beyond the Bounding Box ØTaming the Fuzzy Front End ØProgram Manager Roles, Responsibilities and Core Competencies ØAchieving Common Leadership and Infrastructure through the Program Management Office

References IBM Developerworks Rational Library Program Management: Different from Project Management Michael F. Hanford,

References IBM Developerworks Rational Library Program Management: Different from Project Management Michael F. Hanford, IBM Summit Ascendant Methodologies Karen Y. Lucus (Pg. MP), The Effective Program Management Office Setup, Management, Measure and Services Oracle Corporation An Oracle Whitepaper (May 2010) A Strategy for Governing IT Projects, Programs and Portfolios Throughout the Enterprise TD Jainendrukumar, (2008) The Project/Program Management Office (PMO) Published in PM World Today - January 2008 (Vol. X, Issue I)

Q&A

Q&A

Contact Information Comments? Questions? Feedback? Website: http: //www. ruffin-veal-and-associates. com E-Mail: principal@ruffin-veal-and-associates. com

Contact Information Comments? Questions? Feedback? Website: http: //www. ruffin-veal-and-associates. com E-Mail: principal@ruffin-veal-and-associates. com