Xxxx
Managing
Successful
Programmes
MSP®
5th Edition
OFFICIAL
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i
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Contents
List of figures
vii
List of tables
ix
Foreword
xi
Preface
xii
About this guide
xiii
1
2
3
4
Introduction
1
1.1 Purpose of the guide
2
1.2 What is a programme?
3
1.3 Why use programme management?
5
1.4 Overcoming common challenges
6
1.5 Programme environment
6
1.6 How MSP fits into AXELOS Global Best Practice
10
1.7 How to use this guide
10
Principles
13
2.1 Lead with purpose
15
2.2 Collaborate across boundaries
16
2.3 Deal with ambiguity
17
2.4 Align with priorities
17
2.5 Deploy diverse skills
18
2.6 Realize measurable benefits
19
2.7 Bring pace and value
20
An introduction to MSP themes
21
3.1 Programme governance
23
3.2 Fit with corporate governance
23
3.3 Plan–Do–Check–Act cycle
24
3.4 Programme strategy
25
3.5 Programme plans
26
3.6 Content of the MSP themes
26
Organization
27
4.1 Purpose
28
4.2 Key relationships with principles
29
4.3 Governance approach
29
4.4 Risk appetite
30
4.5 Organization structure
31
4.6 Individual roles
35
4.7 Tailoring programme governance
39
4.8 Additional governance support offices
41
4.9 Additional individual roles
43
4.10 Stakeholder engagement
43
iii
Managing Successful Programmes
5
6
7
8
iv
4.11 Stakeholder engagement approach
44
4.12 Stakeholder engagement and communications plan
44
4.13 Documents to support the theme
48
4.14 Focus of the key roles for the theme
49
Design
51
5.1
Purpose
52
5.2
Key relationships with principles
53
5.3
Design approach
53
5.4
Vision statement
53
5.5
Benefits
56
5.6
Risk identification and prioritization
61
5.7
Target operating model
65
5.8
Documents to support the theme
70
5.9
Focus of key roles for the theme
71
Justification
73
6.1 Purpose
74
6.2 Key relationships with principles
75
6.3 Programme mandate
75
6.4 Funding approach
76
6.5 Programme brief
78
6.6 Business case
78
6.7 Financial planning
86
6.8 Documents to support the theme
89
6.9 Focus of key roles for the theme
90
Structure
91
7.1 Purpose
92
7.2 Key relationships with principles
93
7.3 Delivery approach
93
7.4 Establishing the appropriate pace
94
7.5 Delivery planning
97
7.6 Multimodal delivery
100
7.7 Dependencies
102
7.8 Benefits realization planning
103
7.9 Resourcing approach
106
7.10 Documents to support the theme
108
7.11 Focus of key roles for the theme
109
Knowledge
111
8.1 Purpose
112
8.2 Key relationships with principles
113
8.3 Knowledge and learning approach
113
8.4 Knowledge management
114
8.5 Ensuring lessons are learned
116
8.6 Information approach
118
Contents
9
10
11
12
13
14
8.7 Information management
118
8.8 Documents to support the theme
119
8.9 Focus of key roles for the theme
120
Assurance
121
9.1 Purpose
122
9.2 Key relationships with principles
123
9.3 Assurance approach
123
9.4 Assurance at multiple levels
124
9.5 Assurance planning
127
9.6 Documents to support the theme
131
9.7 Focus of key roles for the theme
132
Decisions
133
10.1 Purpose
134
10.2 Key relationships with principles
135
10.3 Decision-making approach
135
10.4 Issue resolution approach
136
10.5 Risk response approach
137
10.6 Data-gathering and reporting
139
10.7 Options analysis
142
10.8 Documents to support the theme
143
10.9 Focus of key roles for the theme
144
Introduction to MSP processes
145
11.1 Programme lifecycle
146
11.2 MSP processes
147
Identify the programme
149
12.1 Purpose
150
12.2 Objectives
151
12.3 Context
151
12.4 Activities
151
12.5 Responsibilities
153
12.6 Application of the themes in this process
153
Design the outcomes
155
13.1 Purpose
156
13.2 Objectives
157
13.3 Context
157
13.4 Activities
158
13.5 Responsibilities
160
13.6 Application of the themes in this process
161
Plan progressive delivery
163
14.1 Purpose
164
14.2 Objectives
165
14.3 Context
165
14.4 Activities
165
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Managing Successful Programmes
15
16
17
18
14.5 Responsibilities
167
14.6 Application of the themes in this process
168
Deliver the capabilities
169
15.1 Purpose
170
15.2 Objectives
171
15.3 Context
171
15.4 Activities
172
15.5 Responsibilities
174
15.6 Application of the themes in this process
174
Embed the outcomes
175
16.1 Purpose
176
16.2 Objectives
177
16.3 Context
177
16.4 Activities
177
16.5 Responsibilities
178
16.6 Application of the themes in this process
179
Evaluate new information
181
17.1 Purpose
182
17.2 Objectives
183
17.3 Context
183
17.4 Activities
183
17.5 Responsibilities
185
17.6 Application of the themes in this process
185
Close the programme
187
18.1 Purpose
188
18.2 Objectives
189
18.3 Context
189
18.4 Activities
190
18.5 Responsibilities
190
18.6 Application of the themes in this process
191
Appendix A: Programme documentation
193
Further research
201
Glossary
205
Acknowledgements
215
Index
219
vi
List of figures
Figure 1.1 Reasons for using programme management
5
Figure 1.2 Programme environment
7
Figure 1.3 MSP framework and the three lenses
11
Figure 2.1 The MSP principles
15
Figure 3.1 The MSP themes
22
Figure 3.2 Plan–Do–Check–Act cycle
24
Figure 4.1 The organization theme as part of the MSP framework
28
Figure 4.2 Organization structure: governance boards and supporting offices
32
Figure 4.3 Organization structure: individual roles
35
Figure 4.4 How the programme board works with constituent projects and other work
41
Figure 4.5 Example of the prioritization of individual stakeholders for the charity programme
45
Figure 4.6 Example of an analysis of a stakeholder network
46
Figure 4.7 Partial stakeholder network for the National Rail network programme
47
Figure 5.1 The design theme as part of the MSP framework
52
Figure 5.2 Path to benefits
57
Figure 5.3 Benefits map for the charity organizational realignment programme
58
Figure 5.4 Benefits map for the utilities maintenance and improvement programme
58
Figure 5.5 An example of a risk universe
62
Figure 5.6 An example of a heatmap showing the status of programme risks
64
Figure 5.7 An example of the visualization of risk connectivity
64
Figure 5.8 Aspects of the target operating model
66
Figure 5.9 The gap between current and future states
68
Figure 6.1 The justification theme as part of the MSP framework
74
Figure 6.2 The business case
79
Figure 6.3 Cumulative net benefit curve
80
Figure 6.4 An example of the output from a risk model
82
Figure 6.5 An example of sizing and allocating ownership of financial contingency
83
Figure 6.6 Cumulative net benefit curve for the bank compliance and adaptability programme
85
Figure 7.1 The structure theme as part of the MSP framework
92
Figure 7.2 An example of a delivery plan showing tranches and landing points
98
Figure 7.3 High-level delivery plan showing tranches and landing points for the bank programme
100
Figure 7.4 Multimodal delivery
102
Figure 7.5 An example of a benefits realization plan
104
Figure 8.1 The knowledge theme as part of the MSP framework
112
Figure 8.2 Tacit and explicit knowledge
114
Figure 8.3 The learning cycle
117
vii
Managing Successful Programmes
Figure 9.1 The assurance theme as part of the MSP framework
122
Figure 9.2 Assurance across the three lines of defence
124
Figure 9.3 Three lines of defence for the National Rail network programme
127
Figure 10.1 The decisions theme as part of the MSP framework
134
Figure 10.2 Layers of decision-making
136
Figure 10.3 Sources of data
140
Figure 11.1 Processes that enable incremental progression
147
Figure 12.1 Identify the programme process within the MSP framework
150
Figure 13.1 Design the outcomes process within the MSP framework
156
Figure 14.1 Plan progressive delivery process within the MSP framework
164
Figure 15.1 Deliver the capabilities process within the MSP framework
170
Figure 16.1 Embed the outcomes process within the MSP framework
176
Figure 17.1 Evaluate new information process within the MSP framework
182
Figure 18.1 Close the programme process within the MSP framework
188
Figure A.1 Relationship between the various items of programme information
195
viii
List of tables
Table 4.1 Key relationships between the organization theme and MSP principles
29
Table 4.2 Potential support roles or offices to deal with specific investments
40
Table 4.3 Documents to support the organization theme
48
Table 4.4 Areas of focus for the key roles associated with the organization theme
49
Table 5.1 Key relationships between the design theme and MSP principles
53
Table 5.2 Minimum content of the four benefit profiles for the charity programme
61
Table 5.3 Current and future state operating model for the charity organizational realignment programme
68
Table 5.4 Documents to support the design theme
70
Table 5.5 Areas of focus for key roles associated with the design theme
71
Table 6.1 Key relationships between the justification theme and MSP principles
75
Table 6.2 Types of programme cost
87
Table 6.3 Documents to support the justification theme
89
Table 6.4 Areas of focus for key roles associated with the justification theme
90
Table 7.1 Key relationships between the structure theme and MSP principles
93
Table 7.2 Combined high-level delivery and benefits realization plan for the charity programme
105
Table 7.3 Documents to support the structure theme
108
Table 7.4 Areas of focus for key roles associated with the structure theme
109
Table 8.1 Key relationships between the knowledge theme and MSP principles
113
Table 8.2 Documents to support the knowledge theme
119
Table 8.3 Areas of focus for key roles associated with the knowledge theme
120
Table 9.1 Key relationships between the assurance theme and MSP principles
123
Table 9.2 Examples of assurance activities
128
Table 9.3 Success factors for assurance
129
Table 9.4 Documents to support the assurance theme
132
Table 9.5 Areas of focus for key roles associated with the assurance theme
132
Table 10.1 Key relationships between the decisions theme and MSP principles
135
Table 10.2 Response options for threats and opportunities
138
Table 10.3 Documents to support the decisions theme
143
Table 10.4 Areas of focus for key roles associated with the decisions theme
144
Table 12.1 Inputs, activities, and outputs for identify the programme
151
Table 12.2 RACI chart for the identify the programme process
153
Table 12.3 Application of the themes in the identify the programme process
153
Table 13.1 Inputs, activities, and outputs for design the outcomes
157
Table 13.2 RACI chart for design the outcomes
160
Table 13.3 Application of the themes in the design the outcomes process
161
ix
Managing Successful Programmes
Table 14.1 Inputs, activities, and outputs for plan progressive delivery
165
Table 14.2 RACI chart for plan progressive delivery
167
Table 14.3 Application of the themes to the plan progressive delivery process
168
Table 15.1 Inputs, activities, and outputs for deliver the capabilities
171
Table 15.2 RACI chart for deliver the capabilities
174
Table 15.3 Application of the themes in the deliver the capabilities process
174
Table 16.1 Inputs, activities, and outputs for embed the outcomes
177
Table 16.2 RACI chart for embed the outcomes
179
Table 16.3 Application of themes in the embed the outcomes process
179
Table 17.1 Inputs, activities, and outputs for evaluate new information
183
Table 17.2 RACI chart for evaluate new information
185
Table 17.3 Application of the themes in the evaluate new information process
185
Table 18.1 Inputs, activities, and outputs for close the programme
189
Table 18.2 RACI chart for close the programme
190
Table 18.3 Application of the themes in the close the programme process
191
Table A.1 Document creation
195
x
Foreword
The world today is constantly changing and appears more complex and uncertain than ever. If they want to
ensure their continued survival and future success, organizations and their leaders must recognize the need to
respond to these changes with a significant investment in time, resources, and people. Programme
management provides a framework that enables organizations to lead investments in change by serving multiple
organizational objectives that will achieve positive outcomes and realize tangible benefits.
Managing Successful Programmes (MSP®) is a globally recognized, valued, and adopted programme
management framework. Many private, public, and third-sector organizations have successfully used the
framework in a wide range of situations. They have discovered how MSP helps them to introduce changes that
are aligned with organizational strategy, and ensure that the reasons for the changes and the programme vision
are effectively communicated and understood.
The fifth edition of Managing Successful Programmes responds to a number of developments in the world of
programme and project management, and it reflects evolving perceptions of programme management that have
become evident through extensive research and consultation with leading practitioners. Consequently, this
edition has been designed with some broad concepts in mind to make it even more beneficial for everyone
using the framework. In summary, the new design will:
● ensure that MSP is adaptable, flexible, and can be used in a wide range of environments. There are many
and varied drivers for change, and MSP’s approach to programme management should ensure that the
organization’s investment in change is wisely managed.
● provide clear and practical guidance for a wide range of situations and investments that benefit from
programme management.
● not ‘replicate’ guidance that is provided in other methods such as PRINCE2® or PRINCE2 Agile®, but instead
offer additional value to anyone involved in a programme (including programme managers, project managers,
and business change managers).
● emphasize the incremental nature of a programme and show how MSP enables a cyclical progression
towards the desired future state. Organizations are complex and the external context is emergent, and
therefore the delivery of benefits and the creation of value cannot usually be achieved through a series of
linear steps.
However, the essence of what a programme is remains the same: it is temporary, it is focused on outcomes of
benefit, and it is concerned with leading multiple projects and other work. As before, the framework has
principles, themes, and a set of processes that make up the lifecycle of a programme.
I am confident that this new edition of Managing Successful Programmes, along with the associated accredited
training and qualification scheme that supports it, will help current and aspiring programme managers (and
others in the programme team) to successfully lead and deliver their programmes.
Mark Basham
CEO, AXELOS Global Best Practice
xi
Managing Successful Programmes
Preface
When I was asked to be lead editor on the fifth edition of Managing Successful Programmes, I was both
honoured to be asked, and intrigued to learn how this tried and tested product could be improved.
One of the things the team discussed as we began the work was the ‘definitions debate’ that has consumed our
profession over the years. There have been some excellent attempts to try to put clear blue water between
projects, programmes, and portfolios, and a guide such as Managing Successful Programmes must, of course,
continue to be clear. However, the world of practice (the people who are taking investment decisions to attempt
to create a strategic advantage for their organization, and the people who are tasked with leading the delivery of
those investments and their associated outcomes and benefits) cares much less about definitions. For certain,
job titles do not reflect strict demarcation between projects, programmes, and portfolios, and the leadership of
planned change can take many forms. We noticed that much planned change work that could benefit from a
programmatic approach was not called a programme; strategic projects or major projects were two examples.
Accordingly, one of the changes you will see in this edition is that the core guidance (the principles, themes,
and processes) is applied to four scenarios that reflect examples of how programme management is used in
practice. We have been careful to not call these ‘types’ of programme because a typology aims to make things
distinct. We have instead referred to different reasons for using programme management to reflect the fact that
in practice, there may be many reasons for investing, and multiple ways to configure a programme to achieve
the desired goals.
We also took the decision early in the process that Managing Successful Programmes was not the place to
delve deeply into the ‘how to’ of some of the essential elements in programme management (e.g. stakeholder
engagement and the sizing of financial contingency). Other AXELOS publications fulfil this purpose. As a result,
you will see that this fifth edition is shorter, making the ‘essential’ elements of the guidance very clear and
leaving more scope for practitioners to tailor the actual programme governance and plans to meet the needs of
the investing organization. We believe that this balance of clear advice and scope to tailor gives the guide a
renewed relevance in a fast-changing world where the ability to reliably deliver complex change is a vital
organizational capability.
I would like to take this opportunity to thank the team I have worked with closely over the past months:
AXELOS employees, MSP examiners, and my team of authors, notably Andrew Schuster, Penny Pullan, and Sue
Taylor. And therefore, it only remains for me to wish you, the readers, every success with creating value through
the use of MSP in programme management.
Signature needed?
Dr Ruth Murray-Webster
Director, Potentiality UK
xii
About this guide
Four fictitious scenarios are used throughout this guide to illustrate aspects of the Managing Successful
Programmes (MSP) framework for programmes that have different drivers and distinctive characteristics.
A short summary of each scenario is provided below. Some of the scenarios feature programmes at an early
stage in their development. Others are part-way through the programme lifecycle. The following icons represent
each of the scenarios that appear throughout the guide.
Innovation
and growth
Organizational
realignment
Appears next to the
National Rail network
programme
Appears next to the charity
organizational realignment
programme
Effective
delivery
Efficient
delivery
Appears next to the bank
compliance and adaptability
programme
Appears next to the
utilities maintenance and
improvement programme
Scenario 1 National Rail network programme:
an example of an innovation and growth investments
The National Rail network extends across the country covering many geographic and
administrative boundaries, with different parts of the network controlled by various
regional operating companies.
Innovation
and growth
Many passenger and rail transport corridors are expected to reach or exceed capacity in the coming
years. At the same time, the government is committed to reducing the carbon emissions produced by
road transport and is considering ways to shift travel away from roads to rail.
Following several years of consultation and analysis, the government has developed a new national
transport policy, including national rail targets for the next 25 years, which relate to:
● improvements to the maintenance and expansion of the existing rail infrastructure
● improvements to the monitoring, estimating, and allocation of capacity
● changes to the nature and performance expectations of the services provided by regional operating
companies
● increased adoption of sustainable practices in the design of the rail network and rolling stock.
The policy indicates that all existing rail-related investments will be rolled into one new National Rail
network programme. The new programme has significant cost implications for the national government
and affordability will be an issue. The government treasury is planning to announce the level of
investment it will provide to the National Rail network programme in the next national budget.
xiii
Managing Successful Programmes
Scenario 2 Charity programme: an example of an
organizational realignment investments
A small- to medium-sized enterprise in the charitable sector has 400 staff and 2000
volunteers. It operates internationally with its headquarters in a major city.
Organizational
realignment
The charity is growing in response to a greater need for services. It also needs to deal with disruptions
within the sector, especially those associated with the digital agenda, and in response to issues with
public trust following a few high-profile cases where trust has been broken.
The charity has prided itself on its (relatively) low headquarters costs over the years, organizing around
services at the point of delivery. This operating model has enabled the development of a focused and
flexible culture. The disruptions, however, call for a more centrally coordinated approach around key
compliance areas, and an investment in digital technologies to support fundraising and to build capability
for future service delivery.
The board of the charity has been successful in providing services, securing healthy cash reserves and
lines of credit. The chief executive officer (CEO) and chief financial officer (CFO) both agree that the time
is right for a major investment to make the charity fit for the future. They are reflecting on how to
achieve this as there is little organizational ability to successfully design and implement a major change
programme.
Scenario 3 Bank compliance and adaptability programme:
an example of an investment in effective delivery
Effective
A private-sector retail bank, with more than 400,000 staff, has offices in many major
delivery
cities worldwide. It has provided a high level of customer service for decades but is now
slipping from its place at the top of bank customer satisfaction tables around the world.
One of the problems is that smaller ‘challenger’ banks, unrestricted by legacy systems and processes,
are able to bring products to market more quickly, using innovative technology. Digital transformation is
needed for the bank to survive, let alone lead the market again.
In addition, the bank has to comply with new regulations for the sector, which are introduced frequently
by regulatory authorities around the world. These regulations cover areas such as data protection,
competition, open banking, money laundering, and cybersecurity. This requires the bank to work towards
compliance with a number of diverse regulations while developing new ways to retain existing customers
and gain new ones.
A number of programmes have been started to address this situation managed through the bank’s
overall digital transformation portfolio, which is focused on the strategic need to improve services to
customers. The bank compliance and adaptability programme is designed to ensure compliance with,
and exploitation of, the possibilities of new regulations around the world that are designed to create
greater competition in banking. These regulations give customers access to their data so that they can
use it in a variety of applications and even allow payments to be initiated by third-party operators.
The programme consists of multiple projects and other ongoing work, and is designed to be
implemented regionally as each set of regulations is confirmed. We join the programme halfway through
the first tranche, where the compliance projects for the first region are almost complete.
xiv
About this guide
Scenario 4 Utilities maintenance and improvement
programme: an example of an investment in efficient
delivery
Efficient
delivery
A utilities provider is responsible for maintaining and improving the electricity
distribution infrastructure and supply for a region. The organization employs approximately
2000 permanent staff, located in cities and regional areas, and has a head office in the capital city.
The provider is a listed company and is owned by individual, corporate, and public-sector shareholders.
The organization endorses new infrastructure programmes to be completed over a number of years, but
approval is given and funding released only for a single financial year at a time.
The projects and activities to be carried out each year are planned and prioritized during an annual
forecasting session held as part of the budgeting cycle. Resources (including funding, people, and
equipment) are limited. Internal resources are especially limited as the organization’s headcount cannot
be increased, so efficient scheduling of projects and work based on availability of scarce resources is
essential. The level of annual budget available also affects the number of external contractors that can
be allocated to different projects and activities.
The organization is facing challenges, including:
● the reliability and safety of ageing equipment, particularly some old wooden electricity poles which
are becoming unsafe
● the capability of the network to withstand and continue to supply electricity during extreme
weather events
● budget constraints for maintenance and upgrade work
● concerns from the public about the level of disruption to the electricity supply during works.
It is becoming increasingly important for the organization to schedule infrastructure maintenance and
upgrade tasks more efficiently. The organization is using MSP for the first time to structure related
maintenance and upgrade work into a programme. The maintenance and improvement programme is a
five-year rolling programme of works to maintain and upgrade the electricity assets owned by the
organization. The programme aims to make best use of equipment and maintenance teams, enabling
more work to be carried out without increasing costs, and minimizing the disruption to the public.
The specific work to be carried out in this programme during the next 12 months is currently being
prioritized and scheduled.
xv
Managing Successful Programmes
xvi
CHAPTER 1
Introduction
Chapter 1 – Introduction
1
1.1
Introduction
Purpose of the guide
To survive and prosper, organizations must continually improve their ability to respond to changes in their
environment. Investing in incremental change programmes in order to realize tangible benefits is a way of
doing this.
The rate and scale of change experienced by organizations continues to increase. Words such as volatility,
uncertainty, complexity, and ambiguity are often used to describe a fast-paced and changing world where the
path from the current state to the desired future state is not linear and cannot be predicted with any certainty.
What is VUCA?
The acronym VUCA (volatility, uncertainty, complexity, and ambiguity) is commonly used to refer to the
dynamic and fast-changing nature of the contemporary business environment. The purpose of the VUCA
label is not to explicitly define the individual terms, nor to describe how each affects organizational
survival. Rather, the label is used as a warning that organizations must develop greater awareness of,
and readiness for, the unexpected in order to survive.
Leaders need to decide when to invest to address drivers for change. For example, when to:
● embrace disruption and emergent technologies and trends
● build new physical infrastructure
● respond to societal expectations and policy changes
● build more effective working partnerships across supply chains
● use scarce resources as efficiently as possible across the organization’s diverse range of projects
and processes.
Often project management is used to define and deliver new capabilities. In other circumstances, change is
managed through continual improvement of ‘business as usual’ (BAU) processes. Programme management is
recognized as an approach that brings together multiple projects and other work associated with delivering
outcomes of benefit across organizational boundaries. The programme management approach shows
organizations how to adopt appropriate governance, pace, and focus to enable them to move ahead.
2
● describe an adaptable set of programme management approaches, leading to the creation of outcomes of
benefit in an incremental way
● provide an integrated framework that guides the work using three lenses:
● fundamental principles
● governance themes
● processes across a programme lifecycle.
The guide is intended for those who are involved in the direction, management, support, and delivery of
programme work. It will also be useful to those who sponsor programmes, lead programmes, manage projects
or processes within a programme environment, or support programmes (e.g. by providing assurance or working
in a programme office).
The wider use of MSP
This deals with the requirements in a product brief to make MSP relevant to work that is called other
things but which could benefit from a programmatic approach.
It is common for different terms to be used to describe the work managed to deliver beneficial change.
Some organizations use the term ‘mega-project’, typically to describe work that has a high investment
commitment, vast complexity, and a long-lasting impact on the economy, the environment, and/or
society. Others use terms such as ‘major projects’, ‘strategic projects’ strategic initiatives, ‘transformation
projects’, ‘change portfolio’, or just refer to ‘major change’.
This guide assists with the management of the delivery of any beneficial change that cannot be
achieved through the management of a single project, as described in methods such as PRINCE2®
or PRINCE2 Agile®.
1.2
What is a programme?
Definition: Programme
A temporary structure designed to lead multiple interrelated projects and other work in order to
progressively achieve outcomes of benefit for one or more organizations.
1.2.1
Temporary structure
Programmes can exist for many years. Sometimes, they can appear to have a permanent place in the
organization structure. However, a key feature of programmes is that programme governance has the
primary purpose of adding specific value, and that there will always be a point in time when governance is
no longer warranted.
3
Chapter 1 – Introduction
The purpose of this guide is to:
Managing Successful Programmes
Chapter 1 – Introduction
1.2.2
Lead multiple interrelated projects and other work
Project work or process-focused work creates the outputs and capabilities that enable outcomes of benefit.
Programme management goes beyond coordinating the collection of necessary work and is focused on making
choices of what work is done and when.
1.2.3
Progressively achieve outcomes of benefit
Programmes are designed to deliver outcomes of benefit to stakeholders throughout the programme lifecycle
using an incremental approach. Programme management requires the design and redesign of the progression
towards the desired future state with a focus on achieving measurable benefit as early as possible. The
incremental approach also allows for the intentional alignment with new information as the programme
progresses. This enables organizations to be responsive and flexible. Such responsiveness and flexibility is often
referred to as enterprise agility.
Definition: Enterprise agility
A condition of an organization that is able to be flexible and responsive to drivers in its environment.
Programme management enables enterprise agility. Also called ‘corporate agility’ or ‘organizational agility’.
The fact that programmes require an inherently incremental approach does not imply that programme
management relies on implementing agile ways of working. Projects within the programme may adopt agile
ways of working where it is optimal to deliver outputs iteratively; the schedule is then organized through
timeboxes where as much scope as possible is delivered with a fixed set of resources. Programmes do not
progressively realize outcomes of benefit through fixed timeboxes, but rather by designing multiple interim
landing points that are spaced to reflect a step-change in capability and benefits realization.
Chapter 7 on the structure theme discusses how programmes work with projects and other work that are using
multiple modes of delivery, including pure agile ways of working, linear or waterfall approaches, and a range of
hybrid solutions to fit the needs of the programme.
1.2.4
One or more organizations
An organization in a programme context may be a separate legal entity, public-sector department, or business
unit or function within a larger legal entity. In all cases, programmes work across organizational boundaries and
are concerned with ensuring that the needs of stakeholders are understood and maximized within necessary
constraints. MSP uses the term ‘investing organization’ to refer to the body that carries the risks associated with
funding the programme and realizing the outcomes of benefit.
Programme management does not replace the need for competent management of the project-based and
process-based work that is grouped together within the programme. Programme management adds value by
ensuring that work is coordinated and optimized, i.e. the right work is done at the right time to satisfy the
priorities of the investing organization(s).
4
Introduction
Why use programme management?
Programmes are temporary structures used by organizations to lead investments in change. Multiple
organizational objectives may be served by the investment. Rather than referring to different types of
programme which suggests that all programmes fall into one type or another, MSP refers to reasons for the
investment in change. The scope of a programme often includes more than one reason. Common reasons
include:
● Innovation and growth A response to the opportunity to build and exploit new physical or knowledge-based
capabilities.
● Organizational realignment A response to mergers, acquisitions, or divestments, or a drive to restructure
how resources are deployed.
● Effective delivery A response to demands from customers, regulators, or other stakeholders to improve
compliance and/or performance.
● Efficient delivery A response to sharing scarce resources requiring prioritization to gain the best outcomes
for the least cost across multiple projects and processes.
Figure 1.1 provides a visual representation of the reasons for using programme management.
Innovation
and growth
Reasons
for using
programme
management
Efficient
delivery
Organizational
realignment
Effective
delivery
Figure 1.1 Reasons for using programme management
5
Chapter 1 – Introduction
1.3
Managing Successful Programmes
Chapter 1 – Introduction
1.4
Overcoming common challenges
MSP is specifically designed to address common challenges that organizations encounter when leading
investments in change. These include:
● insufficient support from decision-makers in the investing organization(s)
● unclear decision-making
● unsustained focus on outcomes and benefits
● poorly defined, communicated, or maintained narrative that supports the vision
● lack of clarity about the gap between current and future states
● unrealistic expectations about the capacity and ability to change
● failure to engage and influence stakeholders
● complex dependencies obscuring an integrated approach
● inability to influence the prevailing culture
● difficulties in keeping effort focused at the right level of detail.
1.5
Programme environment
A programme is a major undertaking for most organizations, putting significant demands on already busy
resources, and requiring substantial funding and change for the organizations involved.
Programmes always exist within the internal and external organizational context. Externally, the ecosystem of
stakeholders (e.g. customers, citizens, regulators, pressure groups, suppliers, and competitors) provides
opportunities and threats. These shape the organizational objectives and their related strategies, policies,
investments, and targets. Internally, the permanent organization is designed to deliver strategy through the ways
of working embedded in BAU organizational routines. Changes to strategy inevitably need embedded ways of
working to change and this has to be done in the context of the prevailing culture and power structures. As a
result, programmes are often seen as disruptors within an organization, and programme management needs
to establish the right balance between leading change and understanding and respecting the established paths
to value.
Uncertainty is a feature of most programme environments leading to a diverse range of risk types that have the
potential to influence programme objectives. In addition, external and internal contexts are unstable so
programmes need to adapt to emerging information and keep a focus on the most affordable and achievable
ways forward. Figure 1.2 illustrates a programme environment.
Organizations have choices about how they manage their investments in change, and adopting the MSP
programme management approach is one choice. Some organizations will judge that a project management
method (such as that defined in PRINCE2) is sufficient for the work because the path to achieving the desired
outcomes is clear and can be defined at the start. Other organizations may choose to adopt a portfolio
management approach (such as that defined in Management of Portfolios or MoP®) because their primary
focus is to keep their extensive collection of individual investments in change efficient and focused on
strategic objectives. Some organizations may use all three approaches. If the investing organization(s) is ready
to invest in the necessary governance and processes, the MSP programme management approach can bring
significant advantages.
6
Introduction
Organizational objectives
Chapter 1 – Introduction
External context
Political, economic, sociological, technological, legal,
and environmental factors (drivers, opportunities, threats)
Strategies, policies, initiatives, targets
Change priorities
Programmes, leading multiple interrelated projects and
other work to progressively achieve outcomes of benefit
Internal context
Culture, ways of working, power structures
Figure 1.2 Programme environment
National Rail network programme
In the National Rail network programme, the programme environment is characterized
by major economic, societal, and sustainability drivers for change. As it progresses, the
programme is also likely to encounter numerous political challenges.
Innovation
and growth
Key drivers from the external context include:
● the increasing importance of the environment and the use of sustainable energy
● the need for a better service in an already congested rail transport system
● the availability of innovations in rolling stock designs and signalling technology
● an awareness that other departments are also seeking additional investment funding from the
government treasury.
As a result, the government’s organizational objectives are to implement the national transport policy,
driving through aggressive targets for improvement and integrating this work into a single programme.
Consequently, the governance structures and approaches to managing existing rail programmes will need
to change. This is expected to be problematic as there are historic conflicts between the people leading
the existing programmes. The integrated programme will need to move quickly to:
● create a unified programme organization to bring existing programmes together into one
● analyse the effect on other forms of public and private transport, including rail freight services that
share infrastructure with public services
● identify the enabling technology that will be essential for success.
7
Managing Successful Programmes
Chapter 1 – Introduction
Charity organizational realignment programme
The programme environment in this scenario is characterized by disruption from the
wider sector. This has resulted in a need to redesign the organization and significantly
change the ways in which staff and volunteers work.
Organizational
realignment
Key drivers from the external context include:
● the effect of advances in technology on methods of fundraising, service users’ needs, and the
service offered
● responding to issues of public trust following some high-profile cases where that trust has
been broken
● an increasing number of people in need of the charity’s services.
As a result, the charity’s organizational objectives are to realign the organization with a centrally
coordinated operating model that has:
● standardization around key compliance areas (e.g. safeguarding* of service users, staff, and
volunteers)
● an approach to investments in technology that supports fundraising in the first instance, but building
capability to look at technology-enabled responses to some aspects of service delivery in the future.
This could include support through virtual centres of excellence.
The implications are significant for staff and volunteers. Conversations with management have raised
strong concerns regarding the distinctive culture of the organization. Decisions need to be made quickly to:
● define how much they want to change at this time (the ambition for significant change exists at board
level)
● understand the implications for staff, volunteers, and service users and make a judgement about the
ability to engage and motivate the team
● identify the enabling technology that will be essential for greater centralization to be effective
● establish an organization structure for the programme that enables the team to succeed.
*Safeguarding means protecting the health, wellbeing, and human rights of people at risk, allowing them to live safely, free from
abuse and neglect.
Bank compliance and adaptability programme
Here the programme environment is one of considerable change and challenge. Key
drivers from the external context include:
● regulatory change that opens up access to banking data and enables customers to
Effective
delivery
use innovative financial applications. Some regions have been early adopters of
changed regulations in this area, with many parts of the world intending to follow
● the challenge of new, more agile competitors who are able to bring products to market much faster
than the bank. These are noticeably taking market share, particularly in developing markets
● falling customer satisfaction.
8
Introduction
Chapter 1 – Introduction
The bank is keen to improve its offering to customers to regain their loyalty and to ensure great service,
as well as complying with the new regulations. However, as an established player in the global market, it
has the constraint of being heavily reliant on legacy processes and systems, which are difficult to
navigate and slow to change. The programme has the dual challenge of regulatory compliance and the
creation of innovative new products, enabling customers to view their own financial data across multiple
bank accounts and investments worldwide, using information from the bank and its competitors.
The internal challenges associated with this are significant and can be summed up by the perspectives
of two members of the executive committee:
● The chief risk officer is concerned that, just by complying with the regulations, the ability to prevent
money laundering is at risk.
● The chief information officer (CIO) is very excited about the possibilities of this programme. The
legacy systems limit innovation and prevent the bank from exploiting new financial technology and
the programme will address this.
The CEO and the board agreed that the programme needed to both ensure compliance and build a
solid platform for the future. They hoped that the programme would help to solve the problems with
customer loyalty.
Utilities maintenance and improvement programme
The programme environment in this scenario is characterized by the need to prioritize
and schedule maintenance and improvement works to efficiently make use of limited
resources and minimize public disruption while the works are carried out.
Efficient
delivery
Key drivers from the external context include:
● public concerns about the reliability and safety of ageing equipment, particularly old wooden
electricity poles that are becoming unsafe
● public concerns around the level of disruption, particularly the duration of planned electricity outages
during maintenance works
● pressure from the regulator to provide network redundancy so that the network can better withstand
and continue to supply electricity during extreme weather conditions.
In previous years, all work within the infrastructure portfolio was treated as stand-alone projects and
prioritized based on a single set of investment criteria applied to the portfolio. This caused some internal
problems that the programme needs to resolve, these being:
● maintenance gear and crews being over-allocated in some months and under-allocated in others
● works causing more disruption than necessary because of inefficient scheduling. A recent example of
this was when local streets were closed and electricity was cut during excavation works to install new
electricity cables, then disrupted again later when new poles and overhead cables were installed.
The decision to use MSP means that planning, coordination, resource allocation, and reporting will be
managed at a programme level, providing greater visibility for the organization but less autonomy for
local teams. The outcomes of benefit should be the ability to do more maintenance and improvement
work to build resiliency in a less disruptive way for the public and at no additional cost.
9
Managing Successful Programmes
Chapter 1 – Introduction
1.6
How MSP fits into AXELOS Global Best Practice
MSP is part of a portfolio of global best-practice publications aimed at helping organizations and individuals
manage projects, programmes, and portfolios consistently and effectively. MSP can be used in conjunction with
all the other best-practice products, and international or internal organizational standards. Where appropriate,
guidance is supported by a qualification scheme and accredited training and consultancy services. All bestpractice guidance is intended to be tailored for use by individual organizations (see Further research for a list of
AXELOS best-practice guidance).
1.7
How to use this guide
This guide is not intended to be read from beginning to end. It is a reference guide designed to help those
involved in programme management to shape the work of the programme so that value can be delivered to the
investing organization(s) and other stakeholders. It also provides the basis for the MSP qualifications. The
foundational information is contained in Chapters 2, 3, and 11, and you are recommended to read these
chapters first.
A summary of the content is as follows:
● Chapter 2 outlines the seven MSP principles: the guiding obligations that are continually required to achieve
value from programme management.
● Chapter 3 outlines the seven MSP themes: the essential aspects of governance that are required to ensure
that the programme is aligned with the principles across the programme lifecycle.
● Chapter 11 outlines the seven MSP processes that are applied across the incremental MSP lifecycle.
Processes are a structured set of activities that define the sequence of actions and their dependencies to
achieve a specific objective. All of the themes are applied across all of the processes in order to deliver value
from programme management.
● The other chapters are a deeper dive into either one of the themes or one of the processes:
● Chapters 4–10 describe each of the MSP themes and the controls that are essential for upholding and
driving value from the principles.
● Chapters 11–17 describe each of the MSP processes and how the different roles within the programme
organization ensure that the controls are effective within each process.
Working together, principles, themes, and processes provide an integrated framework to guide the management
of programmes. Figure 1.3 illustrates the three lenses through which the MSP framework is viewed.
10
Introduction
Deliver the
capabilities
IO N
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new
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Plan
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Design the
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Deliver the
capabilities
Identify the
programme
Close the
programme
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outcomes
Processes
Figure 1.3 MSP framework and the three lenses
11
Chapter 1 – Introduction
WITH LEA
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Managing Successful Programmes
Chapter 1 – Introduction
12
CHAPTER 2
Principles
Chapter 2 – Principles
2
Principles
Organizations use programme management in a variety of situations and to pursue different organizational
objectives: innovation and growth; organizational realignment; and the effective and efficient delivery of change.
MSP provides a principles-based framework that can be applied in all of these different circumstances.
Principles are guiding obligations that apply continually from the first identification of programmes through to
their closure. Principles are built into programme governance through the themes (Chapters 3–10) and enacted
through the processes in the programme lifecycle (Chapters 11–18).
Definition: Principle
A guiding obligation that is continually required to achieve value from programme management.
Programmes aligned with MSP are directed by the following principles:
● Lead with purpose
● Collaborate across boundaries
● Deal with ambiguity
● Align with priorities
● Deploy diverse skills
● Realize measurable benefits
● Bring pace and value.
These principles are:
● Universal They apply to every programme.
● Self-validating They have been demonstrated by practical use.
● Empowering They enable practitioners to reinforce the most critical factors for programme success.
The principles are illustrated in Figure 2.1.
14
FICATI N
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Chapter 2 – Principles
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Figure 2.1 The MSP principles
2.1
Lead with purpose
Key message
An MSP programme leads with purpose: envisioning and communicating the desired outcomes.
Programmes are purposeful endeavours focused on planned change within one or more organizations. The
ability for people involved in leading programmes to envision and communicate the desired outcomes of benefit,
and to reinforce those desired outcomes over many years, is critical to success. The principle of leading with
purpose applies to the whole programme team across the programme lifecycle. Leading with purpose keeps
stakeholders and decision-makers focused on what is most important. This principle reinforces the need for the
programme vision to be clear and the relationships with other projects and programmes within the
organizational portfolio to be defined and agreed.
15
Managing Successful Programmes
The lead with purpose principle is achieved by:
● providing clarity of purpose for stakeholders (organization theme)
Chapter 2 – Principles
● maintaining a compelling vision and design of the target operating model (design theme)
● justifying and communicating the financial viability over time in the business case (justification theme)
● planning delivery in the most appropriate way to achieve the future state and associated outcomes of benefit
(structure theme)
● supporting the curation and organization of knowledge (knowledge theme)
● designing the three lines of defence to support leadership decision-making (assurance theme)
● gathering, analysing, and presenting decision-ready information and communicating the rationale that
underpins decisions (decisions theme).
2.2
Collaborate across boundaries
Key message
An MSP programme collaborates across boundaries: facilitating effective cross-organizational governance.
Programmes inevitably affect many organizational units. For example, the organizational units may be in
different legal entities such as multiple investors coming together to create significant new infrastructure; or they
may be different parts of a public-sector body working together to transform and implement new policy.
Alternatively, the organizational units may be within a single organization that has multiple business units and
functions which are involved and affected. Successful programmes collaborate across these organizational
boundaries in order to facilitate effective cross-organizational governance where it does not already exist.
The collaborate across boundaries principle is achieved by:
● maintaining mechanisms for organizational units and stakeholders to interact (organization theme)
● articulating benefits and designing a clear target operating model (design theme)
● implementing governance for financial decision-making related to investments, priorities for cash, and/or the
risk profile of achieving outcomes (justification theme)
● maintaining clarity about the number and types of resource needed and how they will be sourced
(structure theme)
● providing everyone in the programme with access to knowledge and information (knowledge theme)
● developing a unified view of assurance for the programme (assurance theme)
● ensuring approaches used to make decisions in the light of new information can work across multi-
organizational governance (decisions theme).
16
Principles
Deal with ambiguity
Chapter 2 – Principles
2.3
Key message
An MSP programme deals with ambiguity: understanding the risks associated with decisions.
Leading change using programme management is a future-focused activity. It is typified by uncertainty caused
by the inability to know for sure what will happen next. Knowing what we do not know, i.e. knowing what is
ambiguous in the external or internal context, enables us to frame risks. Risks can be positive opportunities or
negative threats. Risks may be related to inherent uncertainty about what outcomes will be of greatest value to
the organization and/or about what path will deliver those outcomes of benefit. All are important in shaping the
decisions that are taken throughout the programme lifecycle. Dealing with ambiguity is not a principle to reduce
risk as much as possible; rather it is a principle that embraces the volatile, uncertain, complex, and ambiguous
nature of programmes and focuses attention on the need to make ‘eyes-open’ choices.
The deal with ambiguity principle is achieved by:
● defining the appetite for risk and facilitating transparency, information-sharing, and evidence-based decision-
making (organization theme)
● providing a clear view of current thinking and the risks perceived (design theme)
● reflecting uncertainty of estimates and specific risks in the business case (justification theme)
● providing manageable tranches of delivery that contribute to clear intermediate landing points
(structure theme)
● making knowledge as clear and accessible as possible (knowledge theme)
● adopting a risk-based approach to assurance that focuses resources on the areas where greater certainty
would be valuable (assurance theme)
● explicitly considering the upside and downside impacts of decisions (decisions theme).
2.4
Align with priorities
Key message
An MSP programme aligns with priorities: adapting to new information and emergent change.
The programme environment does not stand still and it is normal for organizational priorities to change
frequently during the life of any programme. Successful programmes adapt to emerging information and work to
continually improve the quality of decision-making in a dynamic environment. This ensures that the programme
17
Managing Successful Programmes
Chapter 2 – Principles
aligns with the organizational objectives and strategy of the investing organization(s) over time and does not
avoid addressing any conflicting objectives. Sometimes, new information will remove the justification for the
programme. In these situations programmes are closed in a controlled way. More often, new information results
in changed priorities which leads to the realignment of programme plans and the reassignment of the limited
resources available to deliver work.
The align with priorities principle is achieved by:
● adapting structures, roles, and responsibilities over time to provide oversight and alignment with business
operations (organization theme)
● revisiting the benefits, target operating model, and associated risks over time (design theme)
● reflecting new information in the business case (e.g. performance to date, potential changes in direction,
changes to the size and phasing of costs and benefits, and changes to the risk profile) (justification theme)
● adjusting the content of tranches to reflect new information (structure theme)
● supporting stakeholders to acquire the knowledge and information they need to understand priorities
(knowledge theme)
● prioritizing assurance observations and action plans to reflect risks (assurance theme)
● reporting both historic performance and emerging trends (decisions theme).
2.5
Deploy diverse skills
Key message
An MSP programme deploys diverse skills: meeting the changing needs of the work.
The work done within a programme spans numerous skills and disciplines. Internal knowledge and experience
are typically complemented with external skills provided by consultants and prime and second-tier contracting
staff. The blend of internal and external skills then shapes and delivers the required outputs and outcomes of
benefit. Different skills are needed at different times and successful programme management deploys the right
mix of skills and contracting routes to meet the changing needs of the work. Knowing when additional
organizational capabilities and/or resource capacity is needed is key. Additionally, balancing the demand for
external specialists with the needs of overstretched employees who are learning new ways of working is a
critical factor in delivering change. It is also vital to not rely solely on external support, thereby missing the
opportunity for the investing organization(s) to build needed skills for the future.
The deploy diverse skills principle is achieved by:
● providing oversight of the development of the required organizational capabilities and resource capacity
(organization theme)
● providing clarity on the skills necessary for the target operating model to work as designed (design theme)
● providing visibility in the budget of the incremental costs of deploying specialized skills from inside or outside
the organization (justification theme)
18
Principles
● planning delivery using the most appropriate mix of resources to achieve the outcomes of benefit
(structure theme)
to do their work (knowledge theme)
● allocating the right resources to assurance activities, balancing independence, specialist knowledge, and cost
(assurance theme)
● analysing data to forecast the impact on the capacity and capability of the investing organization(s) to deliver
the planned outcomes of benefit (decisions theme).
2.6
Realize measurable benefits
Key message
An MSP programme realizes measurable benefits: designing and delivering coherent
organizational capabilities.
Creating outcomes that lead to defined and measurable financial and non-financial benefits is at the heart of
programme management. The programme designs and delivers coherent organizational capabilities. These are
transitioned and adopted into routine operations so that the desired outcomes become embedded and the
realization of benefits can be observed and measured. Planned yet undesirable outcomes, measured by disbenefits, are a reality in many programmes and are proactively managed alongside the desirable outcomes of
benefit. Because programme management spans organizational units and time, it is positioned to be able to
drive the phasing and overall realization of measurable benefits.
The realize measurable benefits principle is achieved by:
● ensuring that stakeholders are engaged and that there is two-way communication about the outcomes of
benefit (organization theme)
● designing the benefits map and benefit profiles (design theme)
● ensuring benefits are measurable, either with a direct route to cash, through the use of cash proxies, or by
using a non-financial measure (justification theme)
● ensuring outcomes of benefit are embedded in line with intermediate landing points (structure theme)
● ensuring that stakeholders can access details of the benefits and understand how they are measured
(knowledge theme)
● focusing assurance on the risks affecting outcomes of benefit over time (assurance theme)
● keeping the decision-making focus at programme level, i.e. on the realization of the outcomes of benefit
(decisions theme).
19
Chapter 2 – Principles
● supporting all stakeholders and team members to gain access to the knowledge and information they need
Managing Successful Programmes
Chapter 2 – Principles
2.7
Bring pace and value
Key message
An MSP programme brings pace and value: justifying the investment in programme management
to stakeholders.
The investment an organization makes in using the programme management approach must be justified. MSP
is designed to bring value to programme work through the coordinated and continual focus on the interplay
between principles, themes, and processes in delivering outcomes of benefit. MSP brings structure and
transparency to the management of investments in incremental change and applies rigour to the coordination of
constituent projects and other work. Part of MSP’s value is associated with establishing an appropriate pace of
change. Not to be confused with velocity, pace is focused on the timing of certain aspects of the work and their
alignment with other key events or objectives. Establishing the right pace will enable the organization to achieve
the desired future outcomes alongside the BAU activities required to deliver value.
The bring pace and value principle is achieved by:
● focusing on establishing governance that empowers decision-making as close to the day-to-day work as
possible (organization theme)
● keeping the vision, benefits, and target operating model clear and aligned with priorities (design theme)
● expressing the design and structure of the programme in financial terms to make clear how the phasing of
expenditure and benefits realization supports the pace of delivery (justification theme)
● planning the delivery of capabilities at the best pace to achieve the outcomes of benefit in line with the
business case (structure theme)
● encouraging the learning of lessons and a culture of continual improvement (knowledge theme)
● planning assurance that is timely and appropriate (assurance theme)
● working within clear delegated limits of authority and only escalating decisions when needed
(decisions theme).
20
CHAPTER 3
An introduction to
MSP themes
The underpinning principles of the MSP framework are brought to life by establishing tailored governance and
associated controls to enable effective management of the programme.
In addition to their relationship with the principles, all MSP themes apply across each process in the
programme lifecycle. The application of the themes within each process is included in each of the process
chapters (Chapters 12–18).
Definition: Theme
An essential aspect of governance required to ensure that the programme is aligned with the principles.
Themes are collectively applied during the processes throughout the programme lifecycle.
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Figure 3.1 The MSP themes
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Chapter 3 – An introduction to MSP themes
3
An introduction to
MSP themes
IT
H
The themes in this guide are:
● organization
● design
● justification
Chapter 3 – An introduction to MSP themes
● structure
● knowledge
● assurance
● decisions.
The themes are illustrated in Figure 3.1.
3.1
Programme governance
Definition: Programme governance
The framework of authority and accountability applied by the investing organization(s) to control the work
and ensure the creation of value.
Governance, as applied to a programme, is the framework of authority and accountability applied by the
investing organization(s) to control the work and ensure the creation of value. As part of this governance, the
programme needs controls that provide transparency and engender confidence that activities will happen as
expected. Controls may be policies, processes, tools, and/or behaviours.
The MSP themes of organization, design, justification, structure, knowledge, assurance, and decisions describe
essential aspects of governance required to ensure that the programme is aligned with the principles across the
programme lifecycle. Collectively, application of the themes establishes the control environment for the
programme. The key requirements to ensure that programme governance and controls address the principles
are included in each of the theme chapters (Chapters 4–10). These represent the essential aspects of
programme governance and how it fits within the wider organizational control framework.
3.2
Fit with corporate governance
Definition: Corporate governance
The means by which an organization is directed and controlled. At the level of a legal entity, corporate
governance is focused on maintaining a sound system of internal control by which the directors and officers
of the organization ensure that effective management systems are in place to protect assets, earning
capacity, and the reputation of the organization.
23
Managing Successful Programmes
Programme governance clearly does not stand alone and needs to fit within the wider organizational control
framework. In most organizations, the wider organizational control framework will need to comply with the
requirements for corporate governance in the relevant jurisdiction. In public and other not-for-profit sectors, the
concepts underpinning corporate governance also apply but different terminology may be used, such as ‘good
governance’ for charities.
Where programmes have multiple investing organizations, the fit with the various organizational control
frameworks needs to be agreed and any conflicts resolved.
3.3
Plan–Do–Check–Act cycle
Many aspects of the control environment require a structured process or cycle to ensure that there is effective
implementation and continual improvement. The Plan–Do–Check–Act (PDCA) cycle (also known as the Deming
cycle or Shewhart cycle) applies to the control of key aspects of programme management such as risk analysis
and management, issue resolution, stakeholder engagement and communications management, and information
management. Figure 3.2 illustrates the Plan–Do–Check–Act cycle.
Und
Wha ersta
t/ho n
w
t
d
tion
ua
d
sit spon
re
CHECK
DO
tep
PLAN
cs
rt
pe
te
fu
r
h e e s u lt
s
ra
c ti
ons
c fi
da
tif y
i
Val
Iden
ACT
s
o
ns
tio ent
c
a
m
er rove
p
App
Conti ly fur
nua th
l im
Chapter 3 – An introduction to MSP themes
Normally programmes are required to comply with organizational policies such as those relating to data privacy,
anti-bribery, and corruption or hiring and rewarding staff and contractors. Depending on the specific needs of
the programme, permission to vary from the organizational standards may be sought from senior leadership, but
the default position would be full compliance.
Figure 3.2 Plan–Do–Check–Act cycle
24
C ar
ry
t
ou
s
An introduction to MSP themes
The model is divided into four phases that form a circular, repetitive process. The ‘plan’ phase involves
understanding the current situation clearly before progressing. This might include establishing risk tolerances to
express risk appetite, or analysing the current programme environment.
The ‘check’ phase involves validating the results from the previous phase, and if they are not as expected,
identifying where further action may be needed. This might include specific work to understand the
effectiveness of the resolution of an issue or to review whether governance is working as planned.
The ‘act’ phase is when validated actions are applied in practice. Continual improvement happens when plans
and initial actions are reviewed and revised to reflect the current priorities and situation.
Specific processes or cycles for these areas may exist in other guides, such as the management of risk process
in M_o_R or the issue and change control procedure in PRINCE2. MSP requires a structured process to be
used that is fit for purpose for that programme and organization, but does not specify the process steps so the
programme is free to use the most appropriate solution.
3.4
Programme strategy
The purpose of the programme strategy is to define the governance and control environment for a programme in
line with the corporate governance requirements of the investing organization(s) and to ensure that MSP
principles are applied throughout the programme lifecycle. MSP proposes that the programme strategy should
be a single document containing a number of sections that outline the steps necessary to establish effective
governance and control across each theme.
The various sections in the programme strategy should be derived from the approach information specified in
each theme. These are the:
● governance approach in the organization theme
● stakeholder engagement approach in the organization theme
● design approach in the design theme
● funding approach in the justification theme
● delivery approach in the structure theme
● resourcing approach in the structure theme
● knowledge and learning approach in the knowledge theme
● information approach in the knowledge theme
● assurance approach in the assurance theme
● decision-making approach in the decisions theme
● issue resolution approach in the decisions theme
● risk response approach in the decisions theme.
The approach information is framed as a set of questions that the programme addresses to establish tailored
governance and controls for the particular work. The programme strategy is intended to summarize the control
environment, making it clear why a particular control is required and providing high-level detail of the steps
needed to comply.
When the programme strategy has been developed to address all the questions in the approaches, it forms the
governance baseline for the programme and is kept up to date using formal change control.
25
Chapter 3 – An introduction to MSP themes
The ‘do’ phase is when the specific steps required are performed, such as identifying, prioritizing, and
responding to risks; capturing, codifying, and storing information; or planning assurance activities.
Managing Successful Programmes
3.5
Programme plans
Chapter 3 – An introduction to MSP themes
In contrast to the purpose of the programme strategy (which is to answer the questions of ‘why’ and ‘what’ with
respect to the governance and control framework), the purpose of the programme plans is to define the specific
arrangements for implementing the programme strategy and for directing the team. Programme plans answer
the more detailed questions of ‘who’, ‘when’, and ‘how’ in order to deliver the outcomes of benefit over time.
Organizations may choose to consolidate all the plans for the programme into a single document or have
separate documents, each with independent change control.
MSP does not require a plan for every approach as in some scenarios the approach will be sufficient to meet
the programme’s needs. The theme chapters outline where a plan is required. These are the:
● stakeholder engagement and communications plan in the organization theme
● financial plan in the justification theme
● delivery plan in the structure theme
● benefits realization plan in the structure theme
● assurance plan in the assurance theme.
When the programme plans have been approved, they form the management baseline for the programme and
are updated using formal change control.
3.6
Content of the MSP themes
Each theme chapter addresses the:
● purpose of the theme
● key requirements necessary to implement the principles
● key ideas and the information required to support the theme
● areas where each key role needs to focus.
The theme is also brought to life through the application of the ideas in the four scenarios that reflect how to
apply the theme in different sorts of programme.
Key message
The three lenses of the MSP framework work together.
The themes ensure that the principles are continually applied during the processes throughout the
programme lifecycle.
26
CHAPTER 4
Organization
4.1
Purpose
The purpose of the organization theme is to describe:
● how programmes organize to ensure effective leadership, sponsorship, scrutiny, and decision-making,
including clarity around roles, responsibilities, and delegated limits of authority
● how stakeholders are identified and engaged, and how communication is planned and effectively delivered.
Figure 4.1 illustrates the organization theme as part of the MSP framework.
D
Plan
progressive
delivery
Embed the
outcomes
KN
OW
LED
GE
STR
U
U
CT
RE
W
ALIG N
W IT H P RIO RITIES
Figure 4.1 The organization theme as part of the MSP framework
28
TY
STI
Evaluate
new
information
JU
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OY I
PL SK
DE SE
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Close the
programme
D
AM EA
BI L
GU
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ASSURA
Identify the
programme
DIV
LL
Deliver the
capabilities
FICATI N
O
Design the
outcomes
RATE
LABO
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SS
RO
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Chapter 4 – Organization
4
Organization
IT
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4.2
Key relationships with principles
The organization theme contributes to the adherence to MSP principles across the programme lifecycle. Key
relationships with the principles are summarized in Table 4.1.
The organization theme
applies the MSP principle
By …
Resulting in …
Lead with purpose
Providing clarity of purpose for stakeholders
Commitment to the programme and the enthusiasm
for stakeholders to overcome challenges
Collaborate across
boundaries
Maintaining mechanisms for organizational units
and stakeholders to interact
Coordinated and integrated decision-making
Deal with ambiguity
Defining the appetite for risk and facilitating
transparency, information-sharing, and
evidence-based decision-making
Better identification, analysis, and response to risks
and emergent change
Align with priorities
Adapting structures, roles, and responsibilities
over time to provide oversight and alignment
with business operations
Governance that matches priorities
Deploy diverse skills
Providing oversight of the development of the
required organizational capabilities and resource
capacity
Better management of risks related to resources and
skills
Realize measurable
benefits
Ensuring that stakeholders are engaged and that
there is two-way communication about the
outcomes of benefit
Commitment of stakeholders throughout the lifecycle
Bring pace and value
Focusing on establishing governance that
empowers decision-making as close to the
day-to-day work as possible
Reduction in programme delays and cost
4.3
Governance approach
The governance approach outlines the questions that the programme strategy must address as a minimum. Its
content will vary depending on the nature of the programme and the organizations involved. In MSP, it is
assumed that the governance approach adopted will address the corporate governance requirements of all the
investing organizations.
The governance approach in the programme strategy answers the following questions:
● What programme governance boards and supporting offices are required in the programme’s organization
structure and what are their terms of reference?
● How will the programme governance boards and supporting offices work with other governance boards that
exist outside the programme’s organization structure, including partner organizations and the investing
organization(s)?
● What are the individual accountabilities and responsibilities for each individual role in each part of the
organization structure?
● What is the appetite for risk for the programme, ideally expressed as tolerances around measurable targets?
● What are the delegated limits of authority for each individual role in each part of the organization structure,
aligned with risk tolerances?
29
Chapter 4 – Organization
Table 4.1 Key relationships between the organization theme and MSP principles
Managing Successful Programmes
4.4
Risk appetite
Chapter 4 – Organization
Definition: Programme risk appetite
The amount of risk the investing organization(s) is willing to accept in pursuing the benefits of
the programme.
Defining the programme’s risk appetite enables delegated limits of authority to be assigned to specific roles
within each part of the organization structure.
It is also a requirement of corporate (and charitable) governance that boards and executive teams express their
appetite for risk in achieving their strategy. It follows, therefore, that investments in programmes reflect
corporate risk appetite to ensure programmes are aligned with the operational business.
Best practice is for the risk appetite to be expressed as tolerances (alternatively called thresholds) around
measurable targets rather than as narrative statements. Measurable targets in the programme context are the
programme objectives which may be interpreted as the gross benefits and costs, or as net benefits. Expressing
appetite as tolerances vs time targets for programmes is also possible, although the purpose of programmes is
to realize measurable benefits and therefore using time as a proxy for benefits may not be ideal. Risk tolerances
may also be set for the programme based on key organizational objectives such as safety performance or
customer satisfaction.
Bank compliance and adaptability programme
The bank has a formally defined corporate risk appetite. The risk tolerances created by
this appetite have been adopted for the entire digital transformation portfolio and the
bank compliance and adaptability programme has the same targets.
Effective
delivery
However, there is one specific aspect of the bank compliance and adaptability
programme that provides a challenge. Ten years ago, after a money laundering scandal, the bank’s
appetite for reputational risk was very low. There is a conflict between the need to comply with
regulations for open-access banking worldwide and to ensure that there is no way that money laundering
could take place. The regulations require third parties to be able to initiate payments and this conflicts
with the requirement for banks to know their customers to prevent money laundering. The chief risk
officer perceives this as a very high risk. The programme team understand that the corporate
reputational risk appetite will be the driving decision criterion but they are still challenged to meet this
and to innovate in order to realize other programme benefits associated with growth and customer
satisfaction.
30
Organization
Charity organizational realignment programme
The charity has not formally defined its risk appetite for ongoing operations, so the
conversation to implement this in the organizational realignment programme has taken
place with the executive team. The conversation was challenging as there were many
differing views.
Organizational
realignment
Chapter 4 – Organization
The team ultimately agreed that the programme must not:
● reduce staff/volunteer satisfaction by any more than 5 percentage points on the quarterly pulse
check; currently this is always greater than 80%
● breach compliance or expected standards of behaviour in any jurisdiction; there is zero tolerance for
compliance breaches
● be allowed to continue beyond two years. The executive team do not want the organization to suffer
change fatigue and are prepared to trade progress towards the vision for time (if necessary). The
programme must end with the organization in a stable condition.
The charity does not have an existing formal risk management process, so a consultant helped the
charity to create the following scales to prioritize risks during the programme. Risks with impacts on
staff/volunteer satisfaction and programme duration could be opportunities or threats. The compliance
scale only applies to threats as the target is zero breaches.
Score
Likelihood
Impact on staff/
volunteer
satisfaction
Impact on compliance breaches
Impact on achievement
of a stable landing point
in 24 months
3
>50%
>5%
Any single reportable breach or >5
non-reportable
>3 months
2
20–50%
2–5%
2–5 non-reportable breaches
1–3 months
1
<20%
<2%
Any single non-reportable breach
<1 month
4.5
Organization structure
The purpose of the programme’s organization structure is to define the governance boards and supporting
offices that are needed to control the definition and delivery of outcomes of benefit within the constraints of the
investing organization(s). The organization structure is defined when deciding the governance approach and is
documented in the programme strategy.
A number of governance boards are typical for programmes, including the sponsoring group and programme
board. In order to fulfil their roles, these boards are assisted by supporting offices that are established in order
to plan governance controls and implement them effectively. The programme office is the single required
governance office. The existence of other governance offices depends on the nature of the programme. (Note
that the work of the programme will be delivered by a collection of projects and other work. Details of how
projects are governed is not within the scope of this guidance. See Managing Successful Projects with PRINCE2
and Directing Successful Projects with PRINCE2 for details.)
The typical organization structure for a programme is shown in Figure 4.2. In practice, programme governance
boards and supporting offices may have different names, but within MSP, they are defined as follows.
31
Managing Successful Programmes
Governance board
Corporate governing body
(and audit committee)
Delegates authority to
Supporting office
Non-programme roles
Sponsoring group
Reports to
Chapter 4 – Organization
Business operations
senior management
Delegates
authority to
Programme board
Reports to
Delegates
authority to
Programme office
(and other support offices)
The permanent structure
The temporary structure
Figure 4.2 Organization structure: governance boards and supporting offices
4.5.1
Sponsoring group
The sponsoring group is the governance board with delegated authority to direct the programme. It includes
senior leaders who are accountable to the executives of the respective investing organizations, and it is
responsible for:
● ensuring alignment of the programme objectives with the strategic direction of the organizations or
organizational units involved
● the scope of the programme investment
● achieving the expected outcomes of the investment
● setting overall programme priorities
● reconciling conflicts between the programme’s priorities and other programmes, and with ongoing business
operations
● providing continued commitment and endorsement in support of the programme objectives
● appointing the senior responsible owner (SRO)
● delegating decision-making authority to the SRO, programme board, and supporting offices
● monitoring progress against the programme objectives
● being aware of the overall risk landscape of the programme and deciding how to act to keep exposure to risk
within risk appetite
● taking decisions to keep the programme on track, or to close.
Because programme investments often lead to changes affecting multiple organizations, the sponsoring group
will include representatives from those organizations. The sponsoring group can be an existing executive
committee or other board of the organization or organizations, if one exists with a span of control aligned with
the needs of the programme.
As a minimum, the sponsoring group should meet during the identify the programme process, at the end of
each tranche, and at the closure of the programme. It may choose to meet at more frequent intervals depending
32
Organization
on the size and nature of the programme. In practice, the sponsoring group delegates much of its authority to
the SRO and this person holds accountability between meetings.
4.5.2
Programme board
Members of the programme board include (as a minimum):
● the SRO
● the programme manager
● the business change manager (BCM)
● the leader of the programme office.
Other representatives on the programme board may include:
● representatives from other supporting offices
● project sponsors
● representatives of corporate functions (e.g. finance, HR, or risk)
● a lead supplier (if there are different senior suppliers across the projects of the programme, it may be
advisable to appoint a lead supplier with whom the team will work at the programme level).
4.5.3
Programme office
Definition: Programme office
A governance-supporting office, led by the programme office lead, with primary responsibility for managing
delivery and capacity controls for the programme. The programme office may be part of a wider governance
office such as a portfolio management office, or may work with other relevant governance offices such as a
project management office or a centre of excellence.
The programme office includes a group of specialists who are accountable to the programme manager and
responsible for providing the skills, processes, and tools that assist the SRO and programme board in executing
their accountabilities and fulfilling their roles. To achieve this, the programme office provides services that
support the programme manager and BCM with managing:
● risks
● issues
● communications and stakeholder engagement
● organizational change management and benefits realization
33
Chapter 4 – Organization
The programme board is the governance board with delegated authority to drive delivery of the outcomes of
benefit within the defined constraints. It consists of a group of senior managers who are accountable to the
sponsoring group (via the SRO as the delegate of the sponsoring group). They are responsible for developing,
implementing, and maintaining the programme strategy and answering the questions in the approach sections
of each theme.
Managing Successful Programmes
● planning and estimating
● monitoring and reporting
● quality
● assurance
● resource planning
● procurement and contracts
Chapter 4 – Organization
● information
● finances
● change control
● the secretariat and support for the board.
For more information, see Portfolio, Programme and Project Offices (P3O).
For each of the services the programme office provides, specialists are often required. For example:
● Financial management may require an expert accountant who supports and ensures compliance with
corporate accounting procedures, and also provides useful support in creating the business case.
● Benefits realization may require an expert in managing change who defines benefits realization plans,
establishes benefit profiles, and develops digital dashboards for monitoring benefits.
● Commercial management may require an expert procurement manager who ensures compliance with
corporate procurement procedures and provides advice. Most programmes will involve some aspect of
procurement.
● Risk management may require an expert risk manager who defines risk strategy and governance; identifies,
prioritizes, and monitor risks; and works with enterprise-level risk management.
● Planning and estimating may require an expert programme scheduler who understands how to define
integrated project plans.
Utilities maintenance and improvement programme
The focus of the utilities programme is on the efficient delivery of physical
infrastructure. It does not involve organizational change other than changes to get the
maintenance teams used to the programmatic way of planning, resource allocation, and
reporting. The temporary programme organization structure is closely aligned with
existing permanent governance boards and supporting offices as follows:
Efficient
delivery
● Governance boards The utilities infrastructure investment committee is responsible for approving all
investments in the organization’s infrastructure portfolio and signing off the annual infrastructure
portfolio budget. This includes the overall budget for the five-year maintenance and improvement
programme. The infrastructure investment committee is the natural sponsoring group for the
programme.
● Supporting office The infrastructure portfolio office, which supports all initiatives in the
infrastructure portfolio, will provide programme office resources. One of its key responsibilities will be
to maintain a schedule of all planned work in the programme and a resource forecast showing
utilization levels and availability of equipment and maintenance crews. This helps the programme to
schedule maintenance resources more efficiently. The existing infrastructure portfolio office lead will
join the programme board.
34
Organization
● Programme board A new element of governance is required to organize this work as a programme.
Roles on the programme board include:
● SRO: the head of maintenance
● programme manager: a senior maintenance engineer
● BCM: another member of the maintenance team. The BCM has a dual external and internal focus:
4.6
Individual roles
The governance boards and supporting offices that constitute the programme’s organization structure include
leaders with specific individual roles. Within MSP, specific roles are defined as shown below, but in practice the
roles may have different titles.
Role definitions are created when deciding the governance approach and are documented in the programme
strategy. Their purpose is to clearly define accountabilities, responsibilities, and delegated limits of authority.
The individual roles within the programme’s organization structure are illustrated in Figure 4.3.
Supporting office
Individual role
Non-programme roles
Appoints
Senior responsible owner
Appoints
Member of
Business operations
senior management
Business change manager
Supports
Business operations
change champions
Programme manager
Delegates
authority to
Supports
Provides
guidance to
Supports
Accountable to
Lead of programme office
(and other support offices)
The permanent structure
The temporary structure
Figure 4.3 Organization structure: individual roles
35
Chapter 4 – Organization
engaging with local councils and communicating details of road closures and service disruptions;
and ensuring that there is open dialogue with local teams to share knowledge and improve
programme planning.
Managing Successful Programmes
4.6.1
Senior responsible owner
The senior responsible owner (SRO) is accountable to the sponsoring group and chairs the programme board.
The SRO has overall and ongoing accountability for the successful delivery of the outcomes of the programme,
which includes:
● setting the programme strategy and plans
Chapter 4 – Organization
● monitoring the programme’s performance: namely, delivery of new capabilities and realization of outcomes
of benefit
● ensuring engagement with the sponsoring group
● making decisions regarding high-impact programme risks.
The SRO is likely to be directly involved with key programme-level authorizations, including the:
● vision statement
● business case
● programme strategy and plans
● release of funding
● assurance plans and the commissioning of reviews
● closure of the programme.
In practice, the SRO is likely to delegate day-to-day activities to the programme manager or BCM who in turn
will receive support from specialists in the programme office.
4.6.2
Programme manager
The programme manager is accountable to the programme board and has overall and ongoing responsibility for
the successful day-to-day leadership of the programme in support of the SRO, including:
● defining and maintaining an integrated programme delivery plan, monitoring actual progress to date and
forecasting progress in future tranches
● defining and maintaining a programme budget baseline, monitoring actual expenditures to date and
forecasting expenditures for future tranches
● monitoring and reporting overall performance of the programme, including stakeholder engagement, risk
management, and benefits realization
● identifying and resolving programme-level issues
● identifying and delegating project-level issues to the appropriate project manager
● identifying and escalating organizational-level issues to the SRO.
What is the role of a programme director?
In some organizations, the role of a programme director may be specified in addition to the SRO and
programme manager. In such cases it is important for the sponsoring group to confirm when they define
the governance approach which accountabilities the programme director is adopting on behalf of the
SRO or programme manager.
36
Organization
4.6.3
Business change manager
The business change manager (BCM) is accountable to the programme board and has overall and ongoing
responsibility for the successful day-to-day adoption of new capabilities in the investing organization(s) in
support of the realization of outcomes of benefit on behalf of the SRO.
The BCM has overall and ongoing accountability for establishing the approach and guidance for organizational
change management for the programme and ensuring this is implemented. The BCM may be a change
professional, or they may be an operational manager who manages change activities through a network of
change champions in the business and/or with the support of stakeholder engagement and communications
specialists in the programme office.
This work includes:
● agreeing leading indicators to provide early information on the success of change activities
● planning and delivering specific change activities
● regularly soliciting feedback from internal and external stakeholders
● identifying risks and issues that relate specifically to the ability of the organization to adopt changed ways of
working on time.
Where multiple change specialists are needed on the programme, a single BCM reports to the SRO and other
specialists report either to the BCM or into the business, with an indirect reporting relationship to the BCM.
Different names are used in practice for the change specialists who report to the BCM, such as change
champion, change adviser, or change agent.
Bank compliance and adaptability programme
The bank is investing in a vast amount of change and this programme is just one
part of this.
During the first tranche of the programme, the bank recruited a chief change officer
(CCO) to join the executive committee; with this appointment, the BCMs for all
programmes gained a professional indirect reporting relationship with the CCO.
Effective
delivery
Initially, the BCM for the programme felt supported by having such a senior manager involved with
stakeholder engagement and communications activities. However, as time progressed, the CCO stopped
attending the programme board and the sponsoring group meetings, and this started to cause problems
as the CCO did not have an appreciation of the full implications of the issues affecting the programme.
The BCM is finding this frustrating and needs the support of the CCO, who is more senior than the SRO.
With the support of the SRO, the BCM is seeking support from the CCO in managing the conflict
between the chief risk officer (risk) and CIO (IT) regarding the controls needed to prevent money
laundering in future. The CCO joining the sponsoring group for the programme would be a good result in
the short term.
37
Chapter 4 – Organization
The BCM is typically a member of the business operations leadership team and will remain close to BAU
activities during the programme. In collaboration with representatives from business operations, the BCM
ensures that programme changes are valid and relevant to the business and that the business is ready to adopt
the changes.
Managing Successful Programmes
National Rail network programme
Within this programme, government ministers agree that overall accountability resides
with the transport department. Given the objectives of the programme and the
associated risks, the following organization structure is agreed:
Innovation
and growth
Governance boards
Chapter 4 – Organization
● Sponsoring group Includes senior representatives from the government departments accountable for
treasury, transport, economic development, domestic affairs, and business sustainability investment.
Senior representatives of regional rail operating companies responsible for investment decisions are
invited to sponsoring group meetings when major decisions need to be made.
● Programme board Includes the chief operating officers of the regional rail operating companies, and
senior representatives from the government departments responsible for rail, freight, road, and
regional economic development policy, in addition to the SRO, programme manager, and BCM.
● Project boards and project sponsor Established for each project as the programme evolves.
Supporting offices
● Programme office Provides support for planning, reporting, knowledge management, and project
and programme management skills development. The programme office lead reports to the
programme manager, and the office integrates its services with the other relevant centres of
excellence, portfolio management offices, and business functions (e.g. finance) that exist in all other
government departments and rail operating companies.
● Programme design and change office Takes responsibility for ensuring that the design of capabilities
is coherent, that specifications for procurement are fit for purpose, and that change and configuration
controls for the complex infrastructure development are effective.
● Programme assurance office Ensures that assurance across the three lines of defence is
coordinated, resourced, and provides value for money.
There is an ongoing discussion about the merits of establishing a separate company to manage the
programme on behalf of the government. The SRO would become the managing director of a company
responsible for all aspects of delivery of the government’s requirements, and the sponsoring group would
take responsibility as the board of directors. In such a situation, the governance boards and supporting
offices would continue to exist as planned but within a ‘ringfenced’ legal entity.
Charity organizational realignment programme
This programme is the only significant change initiative happening in the charity. The
programme will transform the entire operating model and so the executive team has
Organizational
realignment
decided that the programme’s organization should reflect the accountabilities in the
permanent organization. A consultant has been appointed to be programme manager,
who will support the executive team in setting up the programme. The sponsoring group will be the
entire executive team, and sponsoring group meetings will be added on to routine executive committee
meetings. This blurring of the permanent and temporary programme organization will need careful
management.
38
Organization
The SRO for the programme is the HR director. The person with HR accountabilities overall was chosen
as the ‘first among equals’ on the executive team to take the role of SRO because the programme will
affect all of the charity’s employees and volunteers.
Chapter 4 – Organization
Just as with the programme manager, there was no obvious person within the existing charity
organization to take the role of BCM, so another consultant with significant experience was selected. For
the contracted BCM to be successful, they need to work with a network of staff change champions who
will be the ‘eyes and ears’ of the programme across the organization. Change champions are best placed
to advise on key matters such as the timing of the transition of new capabilities and the actions needed
to embed outcomes, realize benefits, minimize dis-benefits, and resolve issues.
The charity does not have a programme office capability, so contract resource is included to support the
programme manager with planning, reporting, knowledge and information management, and assurance.
The opportunity to support internal staff development has been recognized and a key talent from finance
and another from customer services will be seconded to the programme office and their roles backfilled
from the programme budget. The plan is that these people will be able to take on the core
responsibilities in the programme office as time progresses, with the potential for one of them to become
the programme manager.
The programme has significant IT systems content to enable the changes needed. The IT director will
sponsor all the projects with an IT element and is part of the sponsoring group and executive team. The
SRO has invited the IT director to be a permanent member of the programme board, although they have
no formal programme role. As a result, the programme board comprises the SRO, the contract
programme manager, the contract BCM, the contract programme office lead, the seconded programme
office staff from finance and customer services, and the IT director.
4.7
Tailoring programme governance
Programme governance needs to be tailored to its environment. Some considerations that will inform tailoring
include the programme size, reasons for the investment and associated risks, and the public profile of the
organizations involved.
4.7.1
Programme size or complexity
The governance of a programme varies in response to its size and complexity, i.e. the number of projects,
organizations, and people involved with the programme. In smaller or less complex programmes, fewer
governance boards, supporting offices, and individual roles may be warranted as working relationships and
reporting lines are more direct. In larger or more complex programmes, additional programme boards,
supporting offices, and individual roles are often necessary to deal with the number and types of working
relationships and/or reporting lines that are extended and benefit from intermediaries. Additional specialist roles
may also be required in larger programmes (e.g. for planning, reporting, technical design, quality, assurance,
finance, benefits realization, reporting, procurement, resourcing, and communications).
39
Managing Successful Programmes
4.7.2
Reasons for investment and associated risks
The governance of a programme varies in response to the risk associated with the nature of the investment. The
investment might, for example, lead to changes focused on technology, physical infrastructure, societal shifts,
organization structures, or internal processes. Additional supporting offices may be required to deal with the
distinctive aspects of these investments. Table 4.2 provides some examples.
Chapter 4 – Organization
Table 4.2 Potential support roles or offices to deal with specific investments
Reason for investment
Potential support roles or offices to deal with specific risks
Innovation and growth
Service design office focused on service development, innovation and change control
Infrastructure design and assurance office focused on the design, procurement, and deployment of
physical assets (e.g. roads, railways, airports, and buildings) and ensuring safety
Organizational realignment
Business process design office focused on collaborative corporate transaction implementation, e.g.
mergers, acquisitions, and divestments
Change office focused on helping people in a business prepare for a significant transformation
Effective delivery
Programme assurance office focused on assuring regulatory compliance with new or revised rules
governing the organization (e.g. cybersecurity, finance, etc.)
Operational process design office focused on streamlining and optimizing processes to better meet the
needs of customers, citizens, or other stakeholders
Efficient delivery
Resource planning office focused on scheduling the use of facilities, equipment, and people across the
organization
Asset management office focused on understanding the whole-life costs of assets
4.7.3
Public profile of the organizations involved
Investments in programmes are made by private, public, and not-for-profit sectors. Programmes operating in the
public sector, or where the programme impacts on members of the public, will be affected by their public profile
which may entail:
● a greater level of scrutiny by media, public, and Parliament (e.g. audits by a central government authority)
● additional monitoring and reporting requirements to enable public transparency
● additional processes to ensure fairness and equity (e.g. during procurement)
● additional requirements for stakeholder engagement (e.g. public consultation)
● decision-making distributed across government bodies with statutory responsibilities
● heavy reliance on a positive social media presence.
Additional governance boards, supporting offices, and individual roles may be required to deal with the
distinctive characteristics of public organizations.
Integrating programme, project, and operational
organization structures
4.7.4
Designing the appropriate levels of engagement between the programme and its constituent projects and other
work is a key part of establishing an effective programme organization. There are various forms of project and
operational organization structure and different ways of integrating these into a programme organization.
Figure 4.4 shows four examples, labelled A, B, C, and D.
In A, managers of other work that contributes towards the achievement of the programme will also receive
strategic direction and support from the programme board.
40
Organization
Programme board
Individual roles
Senior responsible owner
Other roles
Programme manager
A
Manager of other work
Work team
B
Programme manager
as project owner
Project manager
Project
Project
delivery
manager
team
BCM as a senior user
on project board
C
Project board
Strategic direction and
governance support
D
Project board
Project
Project
delivery
manager
team
Project manager
Project delivery team
Project delivery team
Projects and other work
Figure 4.4 How the programme board works with constituent projects and other work
In B, projects that are central to the programme may work well with the programme manager fulfilling the
project owner/sponsor/executive role and maintaining a very tight, direct link between the project and the
programme.
In C, the BCM may provide valuable user-side input and assurance to projects within the programme. In this
scenario, the BCM may fulfil the senior user or project owner/sponsor/executive role on the project board.
In D, some projects will benefit from a dedicated project board to provide the required level of management
direction and decision-making. The project board should have a clear set of responsibilities, agreed at the
programme level, for directing the project and defining how the project should interface with the programme.
The chair of the project board will be the project executive. This scenario may be well suited to larger projects
within the programme.
4.8
Additional governance support offices
There are additional governance support offices that are regularly observed in practice. Two examples
are provided.
4.8.1
Programme design and change authority
The programme design and change authority is a governance support office with primary responsibility for
programme-level technical design and change control. The focus of programme design and change authority
varies according to what aspect of the business operation is changing and requires careful design and change
control expertise (e.g. technology, capital infrastructure, business process, service, or organizational).
41
Chapter 4 – Organization
Strategic direction and
governance support
Business change manager
Managing Successful Programmes
A programme design and change authority is accountable to the programme board and responsible for providing
the skills, processes, and tools that assist the programme manager in fulfilling their role. It may take
responsibility for activities such as:
● evaluating the impact of changes to the organization’s operating model
● selecting suppliers
● considering the whole-life costs of assets created through the programme’s work.
Chapter 4 – Organization
For each of the services provided, specialists are often required, for example:
● an asset manager
● a procurement manager who understands the supply chain and contractual arrangements that suit the work
● enterprise, application, data, or process architects who understand IT system design and planning
● a corporate governance expert who understands mergers, acquisitions, and divestment.
Where a specific programme design and change authority does not exist, the responsibilities lie with the
programme manager.
4.8.2
Programme assurance office
The programme assurance office is a governance support office with primary responsibility for assessing and
validating the management controls for the programme. The programme assurance office provides an objective
assessment of the likelihood that the programme will deliver the expected quality and outcomes within the
expected budget and timelines to management, based on good practice (see also Chapter 9).
Accountable to the sponsoring group and responsible for providing the skills, processes, and tools that will
assist the programme sponsoring group in executing their overall accountabilities and fulfilling their roles, a
programme assurance office may take responsibility for activities such as:
● development or validation of the programme risk framework (aligned with enterprise risk management)
● definition of a risk-based assurance strategy
● development of methods and tools to support project-level quality management
● risk-based deep-dive assessments
● baseline and periodic maturity assessments
● baseline and period capability assessments
● quality reviews of processes or artefacts.
Specialists are often required, for example:
● an expert accountant who understands corporate and programme financial management
● a procurement manager who ensures compliance with corporate procurement procedures and provides
advice. Most programmes will involve some aspect of procurement
● a testing specialist who understands IT system testing
● a data conversion specialist who understands data conversion planning and execution
● a programme governance expert who understands programme governance and programme office design.
Where a specific programme assurance office does not exist, the responsibilities lie with the programme office.
42
Organization
4.9
Additional individual roles
There are additional individual roles associated with programmes that are regularly observed in practice. Two
examples are provided.
Organizational change manager
In an organization where much change is delivered through multiple programmes and projects, a change manager
for the entire portfolio may exist. Different titles are used for such roles, for example change director, change
portfolio manager, or organizational change lead. In such a situation, the relationship between the organizational
change manager and the BCM for a programme would be expected to be a functional ‘dotted-line’, with the BCM
reporting directly to the SRO for the programme, but being part of a wider community of change professionals.
Where an organizational change manager exists, they are likely to have direct input into activities such as:
● defining the stakeholder engagement approach and/or plan for stakeholder engagement and communications
● defining the benefits realization plan
● supporting the resourcing of change and benefits realization activities.
4.9.2
Business-unit operations manager
Operational managers within lines of business will have ultimate responsibility for implementing changes in their
area. They need to work closely with the BCM to ensure that change activities are relevant and timely.
Additionally, they ensure that the conditions for realizing benefits and preventing the erosion of benefits after the
programme has completed are in place.
The business-unit operations manager is unlikely to have a formal role in programme governance, but may be a
member of a project board as senior user. Irrespective of formal reporting lines, business-unit operations
managers are critical stakeholders representing the recipients of the change and therefore need to be involved in:
● aligning project and operational resource requirements (e.g. ensuring staff are available for the required
training at the right time)
● identifying operational risks and issues and resolving them where possible
● escalating risks and issues to both operational management and project management when required.
4.10
Stakeholder engagement
Definitions
● Stakeholder Any individual, group, or organization that can affect, be affected by, or perceives itself
to be affected by, a programme.
● Stakeholder engagement A way of exercising influence and achieving positive outcomes through
effective management of relationships.
43
Chapter 4 – Organization
4.9.1
Managing Successful Programmes
The scale and complexity of change associated with programmes typically creates a stakeholder environment
that requires careful analysis and management. Stakeholder engagement requires planning and continual review
to ensure that the affected people and groups who can influence the programme are understood and suitably
influenced.
Well-designed stakeholder engagement reduces the negative perceptions of blockers, retains supporters, and
transforms indifference into support. Among the stakeholders, there will be those who:
Chapter 4 – Organization
● support or oppose the programme
● gain or lose when benefits are realized
● see only a threat, perhaps convinced that they will suffer a loss despite all evidence to the contrary
● are inherently indifferent to the change. They may become helpful or unhelpful, depending on how they
themselves are managed and influenced
● may become either supporters or blockers of the benefits depending on how they are treated over time.
Well-designed stakeholder engagement will focus effort on those stakeholders with the greatest influence on the
success of the programme.
Programmes are likely to have a large number and many types of stakeholders. Some will be relatively more
peripheral and others more critical. It is important to maximize the impact of engagement and communication
resources by focusing on the stakeholders who matter the most, without entirely ignoring the others.
Many programmes have a high socio-political complexity, i.e. the stakeholder environment is highly influenced
by politics, power-plays, alliances, and conflicts. It is vital that the stakeholder engagement approach recognizes
the potential for such complexity and plans accordingly.
4.11
Stakeholder engagement approach
The stakeholder engagement approach outlines the questions that the programme strategy must address as a
minimum. Its content will vary depending on the nature of the programme and the organizations involved. In
MSP, it is assumed that the approach adopted will address all the stakeholders who are associated with the
programme environment.
The stakeholder engagement approach in the programme strategy answers the following questions:
● Which factors of the programme have the potential to make the stakeholder environment difficult
to manage?
● What are the key objectives and metrics for measuring stakeholder engagement?
● What are the accountabilities of the governance boards, supporting offices, and individual roles in
stakeholder engagement?
● How will programme governance boards monitor the risks, progress, and success of stakeholder engagement
across the lifecycle?
4.12
Stakeholder engagement and
communications plan
The purpose of the stakeholder engagement and communications plan is to detail how stakeholders are
identified, prioritized, and engaged over the life of the programme, including two-way communication and
feedback. It helps to gain commitment from stakeholders to the changes being introduced in order to maximize
44
Organization
the impact and value of the programme outcomes. The plan defines the stakeholder engagement activities that
are key to the programme’s success and aligns the message content and level of detail with the needs of the
priority stakeholders. It is important that the engagement is truly two-way; it should be a dialogue, rather than a
broadcast of messages.
The stakeholder engagement and communications plan addresses:
● how stakeholders are analysed (identified, categorized, prioritized, and grouped)
Chapter 4 – Organization
● how the analysis of a stakeholder’s influence and interest in the programme is measured and assessed
● how the importance and impact of a stakeholder to a programme is assessed
● what communications channels and types of media will be used and at what frequency
● how feedback will be encouraged, collected, and managed when received
● what the key messages and objectives for each group should be
● metrics and measures for monitoring communication.
4.12.1
Stakeholder prioritization
Stakeholder analysis identifies stakeholders, how they are affected by the programme, and how they can
influence the programme. The analysis identifies stakeholders (individuals or groups) and then prioritizes the
level and type of engagement for these stakeholders.
Various stakeholder mapping techniques can be used to identify stakeholder interests and their relationship to
the programme. One technique for mapping stakeholders is to consider each stakeholder in terms of their level
of influence on the programme (e.g. low to high), their level of interest in the programme outcomes (e.g. low to
high), and whether or not the stakeholder is expected to be supportive of the programme. If stakeholders are
plotted on such a matrix, it provides a visual snapshot of the current perceptions about stakeholders that can be
validated through further engagement. Figure 4.5 shows an example related to the charity organizational
realignment programme.
ATTITUDE to change – positive backer
High
ATTITUDE to change – negative blocker
CEO
CFO
Operations
middle managers
in regions
Chairperson
Rest of senior
management team
INFLUENCE of
stakeholders on the
programme outcomes
IT staff
Fundraising staff
Service users
Charity regulator
Charity trustees
Majority of volunteers
Some staff in regions
(more work required
to understand
size of problem)
The silent majority
Low
Active
Passive
Level of INTEREST in the
programme outcomes
Passive
Active
Level of INTEREST in the
programme outcomes
Figure 4.5 Example of the prioritization of individual stakeholders for the charity programme
45
Managing Successful Programmes
Programmes operate in a dynamic environment with the focus of the work evolving over time as the programme
progresses, risks emerge, and learning occurs. Going further than a simple mapping of individual stakeholders,
it can be useful to understand the network of stakeholders; how they are connected and how their role, power,
alliances, and ability to influence are constantly changing. Social networking methods are often used to create a
visualization of the stakeholder relationship relating to a programme. Figure 4.6 shows an example of a
relatively simple analysis of a stakeholder network, whereas Figure 4.7 illustrates a partial stakeholder network
for the more complex National Rail network programme.
Chapter 4 – Organization
Operations
director
SRO
Programme
manager
CEO
Consultant
B
Close
friends
BCM
Supplier
B
CFO
Consultant
A
Bank
Supplier
A
Figure 4.6 Example of an analysis of a stakeholder network
National Rail network programme
The National Rail network programme has many stakeholders spanning multiple
investing organizations, in addition to the stakeholders in the wider programme
environment. These stakeholders form a complex network of relationships and
influencing groups. Stakeholder engagement and communications planning takes these
relationships into account, and also analyses individual stakeholder influence and interest.
Innovation
and growth
Some of the key stakeholders and their relationships are shown in the stakeholder network in Figure 4.7.
The part of the network that is featured (shaded area in the top left corner) highlights how the change
directors in the government departments that are involved in the programme are connected to:
● the public via lobbying groups
● politicians through government committees
● Parliament via ministers.
As a result, the change directors have the potential to influence government policy and priorities, which
may impact the funding of the programme.
46
Regional operating
company 2
Change project
director
Regional operating
company 1
Change project
director
Department
change plan
information
Operation
change plan
information
Integrated digital system for
monitoring, estimating, and
allocating capacity
Capacity
performance
and plans
Information
regarding
capacity
Transport
department
Change project
director
Other departments
Change project
director
Figure 4.7 Partial stakeholder network for the National Rail network programme
Rail network
monitoring
centre
Citizens, experts,
and interest
groups
Evidence and viewpoints
Government
committees
Opinion and advice
Parliament
Government
ministers
Digital systems
integrator
BCM
Information
systems
Digital systems
contracted vendor(s)
Infrastructure
delivery plans
Annual funding
support
Programme
manager
Contractbased
funding
Informationsharing
SRO
Policy, investment and
impact assessment
Support for investment
Other department
Project director
Other delivery
plans
Regional operating
company 2
Project director
Regional operating
company 1
Project director
Transport department
Project director
Transport department
CFO
Rail
capacity
Other delivery
teams
Other capacity and
capabilities
Rail infrastructure
contracted vendors
Rail
capacity
Contract-based
funding and
requirements
Road infrastructure
contracted vendors
Road capacity
Private-sector
funders
Capital funding
Multi-year
budget support
Government
treasury
Chapter 4 – Organization
Policy support
Organization
47
Managing Successful Programmes
4.12.2
Preparing for change
A specific and vital part of stakeholder engagement and communications is the work that is led by the BCM to:
● prepare operational/BAU areas to receive new capabilities
● support the adoption of new capabilities into new ways of working
● embed outcomes and track the realization of benefits.
Chapter 4 – Organization
MSP guidance is largely focused on supporting the change agents as they direct, plan, and deliver outcomes of
benefit on behalf of the investing organization(s). Change recipients in the investing organization(s) need to be
engaged and influenced for the programme to deliver the required return on investment.
4.13
Documents to support the theme
The documents produced as records of application of the organization theme are shown in Table 4.3.
Table 4.3 Documents to support the organization theme
Document
Purpose
High-level content
Programme strategy:
governance approach
To define the risk appetite
for the programme and
governance regime,
including terms of reference
and delegated limits of
authority for governance
boards, supporting offices,
and individual roles
Terms of reference The programme governance boards and supporting
offices in the programme organization structure
Relationship with wider governance How the programme governance
boards and supporting offices work with other governance boards that exist
outside the programme organization structure, including partner
organizations and in the investing organization(s)
Role definitions Individual accountabilities and responsibilities for each
role in each part of the organization structure
Programme risk appetite The appetite for risk, ideally expressed as
tolerances around measurable targets
Delegated limits of authority The delegated limits of authority for every
role in each part of the organization structure, aligned with risk tolerances
Programme strategy:
stakeholder engagement
approach
To define the stakeholder
context and the controls for
ensuring stakeholders are
engaged throughout the
lifecycle
Socio-political complexity The factors of the programme with the potential
to make the stakeholder environment difficult to manage
Measuring stakeholder engagement The key objectives and metrics for
measuring engagement
Oversight of stakeholder engagement The accountabilities of governance
boards, supporting offices, and individual roles
Adjusting to changing situations How programme governance boards
monitor risks, progress, and success of stakeholder engagement throughout
the lifecycle
Stakeholder engagement
and communications plan
To detail how stakeholders
are identified, prioritized,
and engaged over the life of
the programme, including
two-way communication and
feedback
Stakeholder prioritization How stakeholders are identified, categorized,
and grouped
Determining influence and interest How a stakeholder’s influence and
interest in the programme is measured and assessed
Analysing stakeholder networks How the importance and impact of a
stakeholder to a programme are assessed based on alliances and sources
of power
Communications plan What communications channels and types of media
will be used and at what frequency
Stakeholder feedback How feedback will be encouraged, collected, and
managed
Key messages What the key messages are for each group and objectives
Communication effectiveness Metrics and measures for monitoring
communication
48
Organization
4.14
Focus of the key roles for the theme
The areas of focus associated with the organization theme for the roles of the sponsoring group members, SRO,
programme manager, BCM, and programme office lead are shown in Table 4.4.
Role
Areas of focus
Sponsoring group members
Ensuring the governance approach and stakeholder engagement approach are fit for purpose
Chapter 4 – Organization
Table 4.4 Areas of focus for the key roles associated with the organization theme
Identifying strategic stakeholders
Agreeing the programme risk appetite
Senior responsible owner
(SRO)
Member of, and accountable to, the sponsoring group
Chairs the programme board
Has overall and ongoing accountability for the successful delivery of the outcomes of benefit of the
programme
Engagement of strategic stakeholders
Approving the documents associated with the theme
Programme manager
Member of the programme board reporting to the SRO
Day-to-day leadership of the programme
Business change manager
(BCM)
Member of the programme board reporting to the SRO
Programme office lead
Supporting the programme board with programme delivery and capacity controls
Organizational change management for the programme in support of the SRO
49
Managing Successful Programmes
Chapter 4 – Organization
50
CHAPTER 5
Design
5
Design
Figure 5.1 illustrates the design theme as part of the MSP framework.
Chapter 5 – Design
Plan
progressive
delivery
S
KN
OW
LED
GE
ST
T
RUC
UR
E
TY
STI
Embed the
outcomes
JU
Evaluate
new
information
D
AM EA
BI L
GU
I
NCE
OY I
PL SK
DE SE
ER
DIV
LL
FICATI N
O
Deliver the
capabilities
Identify the
programme
Close the
programme
RATE
LABO
COL BOUNDARIES
SS
RO
AC
N
IG
ES
DE
CIS
IO
D
NS
Design the
outcomes
ASSURA
REALIZ
E
MEASURABLE B
ENE
FIT
S
WITH LEAD
ING VALUE
R
PU
B D
RP
N
A
OS
E
Z
A
I
T
E
ION
C
GAN
R
A
O
P
W
IT
H
ALIG N
W IT H P RIO RITIES
Figure 5.1 The design theme as part of the MSP framework
5.1
Purpose
The purpose of the design theme is to describe:
● how programmes are designed to ensure that the end-state is clear, and the benefits and risks are understood
● how to create the target operating model, and how to understand the gap between the current and future states.
52
5.2
Key relationships with principles
The design theme contributes to the adherence to MSP principles across the programme lifecycle. Key
relationships with the principles are summarized in Table 5.1.
Table 5.1 Key relationships between the design theme and MSP principles
By …
Resulting in …
Lead with purpose
Maintaining a compelling vision and design of the target
operating model
A clear view of the future state
Collaborate across
boundaries
Articulating benefits and designing a clear target operating
model
Everyone being aware of and committed to
the same end goals
Deal with ambiguity
Providing a clear view of current thinking and the risks
perceived
A point of focus and a target against which
emerging risks and trends can be evaluated
Align with priorities
Revisiting the benefits, target operating model, and
associated risks over time
The avoidance of redundant work
Deploy diverse skills
Providing clarity on the skills necessary for the target
operating model to work as designed
The organization deploying and developing
talent
Realize measurable
benefits
Designing the benefits map and benefit profiles
Clarity about the drivers for the programme
Bring pace and value
Keeping the vision, benefits, and target operating model
clear and aligned with priorities
The avoidance of misalignment over time
5.3
Design approach
The design approach outlines the questions that the programme strategy must address as a minimum. Its
content will vary depending on the nature of the programme and the organizations involved; however, in MSP it
is assumed that the approach adopted will address the required governance and controls of all the investing
organizations.
The design approach in the programme strategy answers the following questions:
● How will the vision for the programme be agreed and approved?
● How will the benefits for the programme be agreed and approved?
● How will the target operating model be defined and approved?
● How will the risks to achievement of the benefits be captured and prioritized?
5.4
Vision statement
The purpose of the vision statement is to document the vision for the programme in a way that enables
engagement, motivation, and alignment of the large community of stakeholders involved in the programme,
possibly across multiple organizations.
53
Chapter 5 – Design
The design theme applies
the MSP principle
Managing Successful Programmes
Definition: Vision
The desired future state of the investing organization(s) after the programme is completed.
Chapter 5 – Design
The vision statement describes the desired future state after the end of the programme at a high level, whereas
the benefit profiles and target operating model provide more detail. The more detailed documents need to align
with the vision statement.
The vision statement is written as an outward-facing document describing new services, improvements, and
ways of working. It is important that the vision statement can be understood by everyone, in order to engage
and gain commitment from a wide variety of programme stakeholders.
Characteristics of a good vision statement are that it should:
● be written as a snapshot of the organization(s) in the future; an articulation of what people will see and
experience when the programme has been successfully completed
● be written in terms of the key stakeholders and their interests, painting a credible picture of a future that
they will want to engage with
● be easily understood by a wide range of people, avoiding jargon and technical language
● be concise: a good vision statement could be a paragraph or two in length. The longer the statement, the
more likely it is to contain inconsistencies and be less motivating
● be compelling: it should draw people towards an attractive and desirable future state, engaging their hearts
and minds and providing motivation
● address why the status quo is not an option.
When writing a vision statement, the following points are useful:
● A vision statement does not need to include definite timings, unless it is time-sensitive (such as a major
sporting event). Many programme vision statements remain valid even if delivery timescales slip.
● Avoid using detailed, measurable targets. It is useful to have a vision which can be measured so that it is
clear when the organization has achieved the programme’s objectives. However, specifying targets can
detract from the key purpose of the vision statement; targets are more usefully captured in the business case
and target operating model.
● Avoid including details that detract from the compelling nature of the vision.
National Rail network programme
Some aspects of the vision are encapsulated in the government policy document that
was approved to launch the National Rail network programme. The policy document
includes statements related to:
Innovation
and growth
● improvements to the maintenance and expansion of the existing rail infrastructure
● improvements to the monitoring, estimating, and allocation of capacity
● changes to the nature and performance expectations of the services of regional operating companies
● increased adoption of sustainable practices in designing the rail network and rolling stock.
54
Design
The SRO is conscious of the need to create a vision statement from the policy document that will
resonate with a diverse set of stakeholders in the public, private, and not-for-profit sectors. The content
in the document was developed for government decision-making purposes and is not sufficiently
forward-looking and motivational to stand as a vision statement for the programme.
The SRO is working with the programme board and communications specialist advisers to develop a
concise vision statement, written in plain language. The draft statement focuses on the distinctive needs
of key stakeholders and the government; for example:
● delivering value for money for the public purse
Chapter 5 – Design
● demonstrating regional equality and access
● accommodating transparency and accountability.
Numerous rounds of consultation are planned to test the language with stakeholders, including
passengers, rail operating companies, and sustainability experts.
Charity organizational realignment programme
Creating the vision statement for the charity programme has been challenging. Staff
and volunteers were highly sceptical about the proposed changes and rumours were
circulating about the implications of the programme.
Organizational
realignment
Although the programme was not motivating in the short term, the sponsoring group
knew that they needed to craft a message that would resonate across the existing company culture and
provide a vision that was at least understandable, thus creating acceptance that change was needed.
The SRO started the process by commissioning some focus groups to share the external and internal
drivers for change and to test some draft vision statements. These were useful in creating a vision
statement that achieved two things. Firstly, it described the charity two years hence: an organization
that could assure safety and service for those whom it serves, with sustainable funding in place.
Secondly, it reiterated the values underpinning the charity’s ethos to be upheld through the change.
After it was agreed, the vision statement was published in several formats. It had a clear focus on the
desired outcomes of benefit and a commitment to maintaining what staff and volunteers considered to
be the most valuable aspects of the service. Feedback to the sponsoring group resulted in a tentative
truce across the organization regarding the programme. Most people were sceptical but willing to play
their part in shaping the future.
55
Managing Successful Programmes
5.5
Benefits
Definition: Vision
Chapter 5 – Design
● Benefit The measurable improvement resulting from an outcome perceived as an advantage by the
investing organization(s) and which contributes towards one or more organizational objectives.
● Dis-benefit The measurable decline resulting from an outcome perceived as negative by the investing
organization(s) and which detracts from one or more organizational objectives.
Benefits drive programmes. Without the promise of benefits, organizations would not invest in programmes,
and without a focus on benefits, resources would be invested in the wrong places at the wrong time.
Programmes need to design and deliver capabilities that can be transitioned and adopted so that the intended
outcomes are embedded and measurable benefits realized. Programmes also need to understand the disbenefits that are a consequence of planned outcomes which are perceived as negative, and design the
programme to minimize the impact of these.
Sometimes a benefit to one organization, or part of an organization, turns out to be a dis-benefit to another. This
needs to be understood and managed carefully.
5.5.1
Types of benefit
At the highest level, benefits fall into two main types:
● Efficiency Arising from outcomes that enable the organization to create results with fewer resources
resulting in cost reduction, cost avoidance, or reduced working capital. Doing more for the same, or the
same for less, is another way of expressing efficiency (e.g. processing more enquiries with the same number
of people as before).
● Effectiveness Arising from outcomes that enable the organization to create better results now, or increase
the likelihood of future effectiveness in a fast-moving context by improving adaptability. Effectiveness
benefits for better results now may be in the form of higher standards or better levels of compliance; greater
of satisfaction of customers or staff; lower levels of waste; or improved market share. Effectiveness benefits
related to improved adaptability may be an improved ability to respond to changing environments; a faster
time to market of new products or services; an ability to respond to market disruptions quickly; or a
workforce that is more open and able to change.
It is a principle of MSP that benefits should be measurable. Ideally, benefits are measurable in financial terms,
but non-financial measures are also valid. This area is explored further in the justification theme.
5.5.2
The path to benefits
The path to benefits for a programme is shown visually in the benefits map in Figure 5.2. The purpose of the
benefits map is to show the relationship between outputs, capabilities, outcomes, benefits, dis-benefits, and
organizational objectives.
56
Design
Dis-benefits
Outputs
Measured by
Deliver
Capabilities
Benefits
Outcomes
Lead to
Chapter 5 – Design
Embed
Organizational
objectives
Figure 5.2 Path to benefits
One way to create a benefits map is to start with the organizational objectives on the left, decomposing them
(via measurable benefits) to outcomes, capabilities, and outputs of projects or other work on the right (see
Figure 5.3). Working from organizational objectives to outputs answers the question ‘how’.
An alternative way is to start with outputs on the left, and aggregate them through capabilities, outcomes, and
benefits to the organizational objective on the right (see Figure 5.4). Working from outputs to organizational
objectives answers the question ‘why?’.
In practice, the activity of benefits mapping is a messy process that seeks to reconcile the decomposition of
organizational objectives with the aggregation of outputs from projects and other work. The final format of the
benefits map is a choice. After it is completed, the benefits map makes the rationale for investments in projects
and other work clear. It provides the ‘why’ and ‘how’ to support the vision statement and is a vital input to
preparing the business case (see Chapter 6).
Charity organizational realignment programme
The programme decided to create a benefits map by decomposing the organizational
objectives described in the vision. This was a useful process to keep focused on the
Organizational
realignment
purpose of the programme, deriving measurable benefits, outcomes, capabilities, and
outputs from projects and other work. The consultants supporting the programme
reflected that this process had avoided the pitfall of thinking about projects before benefits. The map is
included as Figure 5.3.
57
Managing Successful Programmes
Organizational
objectives
Chapter 5 – Design
Sustainable
charity: fit for
the future
Measurable
benefits
Outcomes
20% additional funds
raised with current staff
and volunteer base with
5% growth p.a.
thereafter
Public motivated to
be generous and
fund the charity
into the future
Ability to raise
more funds
Service 10% more
users with current
staff and volunteer base
Increased number
of people we
can help
Ability to access
more people in
need
Zero compliance
breaches or negative
media about trust
in the charity
Reputation
enhanced as an
ethical operator
Current staff and
volunteer numbers and
expertise maintained
through change
Increased control
of local operations
Capabilities
Ability to control
key processes and
ways of working
Outputs
Digital giving
function
New marketing
and fundraising
campaigns
Technology-enabled
service delivery
channels
New operating
model with greater
centralization and
standardization of
key controls
New ethics policy
and training for
staff and volunteers
Figure 5.3 Benefits map for the charity organizational realignment programme
Outputs
Capabilities
Outcomes
Measurable
benefits
New rosters for
maintenance crews
Ability to group
similar works
together
Reduced disruption
during works
Planned electricity
outages reduced
by 15% over
12 months
New asset
maintenance
schedule
Ability to schedule
maintenance
activities more
efficiently
Increased
productivity of
equipment and
human resources
10% more maintenance
works serviced annually
with current levels of
crews and equipment
New equipment
availability
forecasts
Ability to reduce
equipment idle
time
Reduced the time
taken to carry out
maintenance works
Resource utilization
increased by 10%
over 12 months
Figure 5.4 Benefits map for the utilities maintenance and improvement programme
58
Organizational
objective
Improved
operational
efficiency
Design
Utilities maintenance and improvement programme
The programme decided to create a benefits map working to illustrate the flow from
delivery of the programme’s outputs and capabilities through to achievement of the
Efficient
delivery
resulting outcomes and measurable benefits. The programme has other benefits
associated with the achievement of the maintenance and upgrade work, but this part of
the benefits map is focused on the efficiency benefits for the utility. The map is included as Figure 5.4.
Understanding benefits
It is helpful to look at benefits from the perspective of stakeholder impact and timing of benefits realization to
ensure a greater understanding.
5.5.3.1
Stakeholder impact
Although benefits and dis-benefits are as perceived by the investing organization(s) (i.e. they are the result of
intended outcomes), each benefit or dis-benefit will impact a group of stakeholders in a different way. It is
useful to understand the impact of each benefit on all groups of stakeholders as this may trigger issues or risks
for the programme. The intended impact may be quite different from the stakeholders’ perception, and this is
valuable information that could prevent future problems. Where stakeholders perceive that a programme may
impact them negatively, they are likely to demonstrate either resistance or apathy. Both are challenging and
could create significant unintended effects for the programme; therefore they need to be managed carefully by
the BCM.
5.5.3.2
Timing
Benefits are realized at various points during and after the programme’s lifecycle. The detailed timing of benefits
is documented in the benefits realization plan (see Chapter 7). Here it is sufficient to consider the timescale to
benefits realization. It is helpful to know, for example, whether a benefit might be used as a short-term ‘quick
win’ to help keep stakeholders supportive of the initiative, or whether it might be better to release cash as the
programme progresses (see Chapter 6).
5.5.4
Measuring and realizing benefits
The benefits that are intended to flow after embedding outcomes are hypothetical without a plan to actually
realize and measure those benefits. For example, adopting new capabilities in an organization may intend to
increase efficiency by allowing a process to be performed by fewer resources. However, the benefit is only
realized when resources are removed from the process (through reassignment, redeployment, or redundancy)
and the remaining resources are skilled and committed to performing the new routines.
A key document in the benefits realization process is the benefit profile. The purpose of a benefit profile is to
provide a description of the attributes and interdependencies of a single benefit and to detail how it will be
realized and measured. The responsibility for benefits realization is with the BCM, although a specific benefit
may have a different owner in the investing organization.
59
Chapter 5 – Design
5.5.3
Managing Successful Programmes
The minimum contents of a benefit profile are:
● Description What precisely is the benefit?
● Observable outcomes What are the verifiable differences that will be noticeable after the outcomes are
embedded?
● Attribution Where will this benefit arise? Can the programme claim the entirety of its contribution (i.e. no
other actions are needed outside of the programme to realize the benefit)? Are the accountability and
responsibility for delivering the change clear?
● Measurement How will the achievement of the benefit be measured and over what timeframe?
Chapter 5 – Design
The remainder of the benefit profile takes more time to create but when complete includes:
● a description of the benefit
● the organizational objectives to which it relates
● the benefit type
● how the benefit will be measured (financial where possible)
● key performance indicators (KPIs) in the business operations that will be affected, both immediately after
realization and in the future
● current baseline performance levels, and the anticipated improvement trajectory
● outcomes that need to be embedded to enable realization
● related capabilities that need to be delivered, transitioned, and adopted
● the business changes required (e.g. to process, culture, people, and policies)
● the costs of embedding the outcome and realizing the benefit
● related issues and risks
● any dependency on events or other projects/programmes outside of this programme
● the operational owner of the benefit and the operations that will receive this benefit
● the person responsible for realizing this benefit (usually the BCM)
● any related (intended) dis-benefits and how these will be managed.
Some organizations find it helpful to have a benefit profile for individual dis-benefits. Others prefer to refer to
the management of dis-benefits in the same profile as the benefit from a particular outcome.
Charity organizational realignment programme
The programme is driven by the achievement of four benefits that are measures of the
desired outcomes. The minimum contents of a benefit profile are shown for each of the
four benefits in Table 5.2.
Organizational
realignment
The programme will transform the current-state operating model, with ownership of the programme
firmly within the permanent organization. To cement this ownership, ‘commitment contracts’ have been
agreed with the parts of the organization that will own the benefits after the programme has been
completed. This ensures that the programme benefits will be seamlessly input into the operating plans
and budgets in subsequent years.
60
Design
Table 5.2 Minimum content of the four benefit profiles for the charity programme
Observable outcomes
Attribution
Measurement
Greater number of people
committing to larger direct
debits to support the charity
Customer services director
responsible. All growth attributable to
the programme. Dependent on
capabilities for marketing and digital
collection
% increase in monthly donations
compared with baseline at the
start of programme
Service 10% more users
with current staff and
volunteer base
Ability to help all service
users who request support
Customer services director
responsible. All growth attributable to
the programme. Dependent on
capabilities for technology-enabled
service provision
% increase in numbers of people
supported compared with
baseline at the start of the
programme
Zero compliance breaches or
negative media reports
about trust in the charity
Improved reputation of the
charity in all parts of the
world
Operations director responsible.
Dependent on capabilities to control
key processes and ways of working
Number of:
● rolling monthly number of
reportable breaches
(decreasing)
● rolling monthly number of
non-reportable breaches
(decreasing)
● rolling monthly number of
near-misses or whistleblowing reports (increasing)
Current staff and volunteer
numbers and expertise
maintained during the
change
5.6
Satisfaction of the team
sustained
CEO responsible. Dependent on
capabilities to provide effective
support for staff and volunteers
Quarterly staff satisfaction rate:
target 80% minimum
Staff and volunteer attrition rate:
target 5% maximum
Risk identification and prioritization
Definition: Programme risk
An uncertain event that, if it occurs, will have an effect on the achievement of the programme’s objectives.
The exposure of the programme’s objectives to risk is determined by multiplying the perceived likelihood of
each threat or opportunity occurring by an estimate of the size of its impact on one or more of the objectives.
Programmes are inherently uncertain and predominantly deal with a particular type of uncertainty associated
with a lack of knowledge: ambiguity. Uncertain events that would affect the achievement of programme
objectives are programme risks. Programme risks may have a negative impact (threats or downside risks) or a
beneficial impact (opportunities or upside risks).
Programme objectives may be interpreted as the achievement of outcomes of benefit, with the size of risk impact
measured in the same units as benefits. Organizations may also wish to specifically identify risks to cost targets
(not just net benefit measures) or other organizational objectives. The risk appetite for those objectives that are ‘at
risk’ is defined in the governance approach in the programme strategy, and this work ensures that the programme
has impact scales to prioritize those risks that reflect what is most important to the investing organization(s).
MSP does not specify a particular risk management process other than to require a single process for the
programme that follows a Plan–Do–Check–Act cycle; however, it does require the use of a risk register. The
61
Chapter 5 – Design
Description
20% additional funds raised
with current staff and
volunteer base, with 5%
growth p.a. thereafter
Managing Successful Programmes
purpose of the risk register (which may be in the form of a document or a database) is to record those uncertain
events that would affect one or more programme objectives. It also keeps a record of the risk exposure for each
of those events and the management actions to respond to them (for response planning, see Chapter 10).
5.6.1
Types of programme risk
The risk register is likely to include wide-ranging types of risk, including those associated with:
● stakeholder behaviours
● delivery performance of projects and other work
Chapter 5 – Design
● emerging changes in the programme environment
● capacity and capability of the organization to embed changes.
Programme-level risk management does not seek to manage risks to the objectives of individual projects and
other work within the programme, but it is the place to:
● manage risks with a direct impact on one or more outcomes of benefit
● escalate project risks that have a programme-level impact
● aggregate project risks that have common causes or would benefit from a coordinated programme-level
response for some other reason.
When a risk is identified it is important that causes (facts that exist now) are separated from uncertain events
(things that may happen) and effects (the outcome of benefit that is ‘at risk’).
Organizations often use risk categories, sometimes referred to as a risk universe, to prompt the identification of
risks. This can be useful to avoid gaps in the risk register. An example of an organization’s risk universe network
is shown in Figure 5.5.
Other techniques for identifying risks exist and are described in detail in Management of Risk (M_o_R).
Liabilities
Programmes
and major
projects
Market
dynamics
Physical
assets
Governance
Mergers
People
Operational
Strategic
Stakeholder
engagement
Information
technology
Planning
Supply
chain
Compliance
Financial
Tax
Legal
Liquidity
Standards
Credit
Regulatory
Accounting
and statutory
reporting
Figure 5.5 An example of a risk universe
62
Capital
structure
Market
Design
Utilities maintenance and improvement programme
One of the benefits of managing utilities maintenance and improvement as a
programme is that the organization now has a more coordinated approach to risk
identification and subsequent prioritization and response planning.
Efficient
delivery
Chapter 5 – Design
Previously, each project had a risk register but the content of these registers was
limited to ‘normal’ technical risks, such as the potential for ground or weather conditions to be worse
than expected, preventing construction work at the planned pace. Because risk registers contained the
same information each time, little value was seen from the practice and risks were rarely managed, just
noted until they were no longer risks either because the project was lucky, or the risk became an issue
to be managed.
The programme risk register focuses on risks to three objectives:
● health and safety of the public, employees, and contractors working on schemes
● ability to meet the efficiency targets (completing schemes on time with allocated resources)
● reputation of the utility with the regulator and the public.
The project/scheme-level risks that are common across the programme are combined at programme
level. One advantage of this has been analysing weather patterns at a systemic level, optimizing the use
of labour and equipment by, for example, not planning work in areas of known flood risk during certain
months.
The programme also looks at upside risks leading to a focus on seizing opportunities with the potential
to improve the utility’s public reputation.
5.6.2
Risk prioritization
Each risk in the risk register needs to be prioritized so the programme leadership can decide where it is most
important to invest in additional responses to increase certainty. Prioritization will, as a minimum, include:
● an assessment of the likelihood of the risk occurring
● an estimate of the impact on one or more programme objectives.
Calibration of the impact scales used to prioritize risks is a minimum requirement derived from the
determination of risk appetite; this is part of the governance approach in the programme strategy (see
Chapter 4). When impact scales are calibrated in this way, it facilitates the appropriate escalation to the
sponsoring group of those programme risks that exceed programme level-tolerances.
In addition to the risk register, organizations may choose to display risks using a heatmap such as the one
shown in Figure 5.6. Here, the likelihood and impact of the risks are shown, together with the status of the
risk responses.
63
Managing Successful Programmes
Risk responses not yet planned
Risk responses planned but not implemented effectively
VH
Risk responses planned and being implemented effectively
Risk is tolerable and requires no further response
VH
H
M
L
VL
H
=
=
=
=
=
very high
high
medium
low
very low
M
Risk tolerance threshold
Any risks that are top right of the
tolerance threshold are escalated
to the sponsoring group
L
Chapter 5 – Design
VL
VL
L
M
H
VH
Impact (effect)
Figure 5.6 An example of a heatmap showing the status of programme risks
Other techniques for prioritizing risks may also be deployed; for example, consideration of the relationships
between risks, the proximity of the risk (in time), and/or the velocity of risk (speed of effect). Such techniques
are becoming popular as organizations acknowledge that risks tend not to happen one at a time and that
analysis of the interactions between risks is required. For example, where there are common causes, an analysis
of risk connectivity can provide valuable insight (see Figure 5.7).
4
2
5
3
1
8
7
6
11
12
12
13
10
9
14
15
Figure 5.7 An example of the visualization of risk connectivity
64
5
Size of circles represents
exposure of each risk
(likelihood and impact).
Each number represents
a risk identifier
Thickness of lines
represents strength
of connections
Design
Further information on modelling the combined effects of risks to determine overall confidence levels and
financial contingency is included in the justification theme (Chapter 6). For more information on the risk
management processes relevant to programmes, see Management of Risk (M_o_R). If you are interested in risk
at a project level, see Managing Successful Projects with PRINCE2.
Risk response planning is covered in the decisions theme (Chapter 10).
5.7
Target operating model
Chapter 5 – Design
Definition: Target operating model
A detailed description of the future state of the investing organization(s) after the programme has finished,
including roles and responsibilities, culture, processes, technology, infrastructure, information and data, and
knowledge and learning.
The programme’s vision statement paints a picture of the desirable future state. The benefits map outlines the
path to benefits realization. The target operating model is created by taking these inputs and expanding and
developing them into a detailed description of what the investing organization(s) will be like when the
programme is completed.
The purpose of the target operating model is to articulate the future organization structure, its working practices
and processes, the information it requires, and the technology that supports its operations. This future state
needs to be capable of achieving the desired outcomes of benefit. The target operating model is used
throughout the programme, maintaining the focus on the future state. It is important to note that the target
operating model is not concerned with how to reach the future state. In most cases, there will be many different
possibilities, passing through multiple intermediate operating models and landing points (as described in
Chapter 7).
Design of the detailed target operating model will require input from a wide variety of experts. Programme
leaders may need to bring in staff with specialist skills from external consultancies and contractors. These may
be experts in:
● business analysis and architecture
● organization design
● infrastructure, technology, and information
● how the organizations involved operate currently in terms of processes, culture, organization, technology,
infrastructure, information and data, and knowledge and learning.
65
Managing Successful Programmes
5.7.1
Aspects of the target operating model
Figure 5.8 shows aspects of the target operating model.
Processes
Chapter 5 – Design
Knowledge
and learning
Information
and data
Infrastructure
Culture
Organization
Technology
Figure 5.8 Aspects of the target operating model
The key aspects which need to be considered and integrated in the target operating model are:
● Processes Consider working practices, processes, and detailed process steps (including performance
measures). Make sure that measures cover efficiency, effectiveness, and adaptability requirements. What
will the KPIs of the future include? In addition to the steps in each core process, consider those that guide
and enable. Guiding processes include those that implement regulations and policies, and reporting.
Enabling processes provide the appropriate support, trained people, supporting technology, and
infrastructure to support the core processes.
● Culture Consider the key elements of organization design such as the culture, ethos, and the style of the
organization. What will the values of this organization be in the future? Will they change? All of this makes a
considerable difference to how people perform and the ability of the organization to cope with a volatile and
uncertain context.
● Organization Consider the capabilities needed for the future. How will they be supported in terms of
organization structure, staffing levels, roles, and responsibilities? What training and competences will be
required for each role?
● Technology Consider technology of all types, including IT systems and the tools needed to support people
to work effectively in the future.
● Infrastructure Consider the physical infrastructure such as buildings, equipment, and machinery, and the
accommodation and workspaces needed for the people in the new organization structure to be able to
work well.
66
Design
● Information and data Consider the information and data required for future business operations and
performance management. In a world where huge volumes of data are created every day, consider the
possibilities of accessing data to produce valuable knowledge that was not possible in the past.
● Knowledge and learning In an uncertain and changing world, organizations that can easily access the
knowledge embedded in their processes, people, and information, and adapt and learn from this knowledge,
will survive. Consider how to support this in the future, building in access to and curation of knowledge, and
ongoing learning.
It is important that all of the elements are considered in depth. It is easy for one aspect to overpower the others
and this needs to be avoided. Ensure that where the programme has a large percentage of its work in one area
(such as implementing new technology or infrastructure) that the other aspects of the target operating model
are considered in detail. This will ensure that the target operating model describes a coherent set of capabilities.
5.7.2
Current state, future state, and gap analysis
The status of the operating models for the relevant parts of the investing organization(s) at the start of a
programme is called the current state. In some situations, the programme may be creating something
completely new, but usually there is an existing operating model that will be changed by the work of the
programme. It is important to consider all the different aspects of the current state to understand where things
are now. This includes performance measures and KPIs to give a performance baseline at the start of the
programme. This is an input into the benefits process, as benefits depend on the difference between future and
current performance.
Avoid spending too much time and energy finding out about the present, as it is possible to go into many layers
of detail. Choose the appropriate level for exploring the current state and then do not go any deeper, unless
there is a good reason, which will help avoid the same problems in the future.
When the programme team have a good understanding of the target operating model (the future state) and how
things work at the start (the current state), it is possible to analyse the gap between the two. Each of the seven
aspects listed above need to be explored.
There are many ways in which the current- and future-state operating models can be depicted in practice.
Table 5.3 shows an example for the charity organizational realignment programme.
67
Chapter 5 – Design
Each aspect of the target operating model must be integrated. Without the right data, information systems will
not be able to function. Without people who are motivated and supported to perform to the best of their
abilities, the organization’s business processes will not work as well as they can. It is only a combination of all
of these elements that will enable the outcomes of benefit.
Managing Successful Programmes
Table 5.3 Current and future state operating model for the charity organizational realignment programme
Chapter 5 – Design
Current state
Future state (two years hence)
Processes
Common processes in place related to finances (salaries,
pensions, accounting, etc). All other policies and processes
established in regional operational centres
Common processes for all aspects of the charity’s
core work
Culture
Strong, shared ethos across the charity. Cohesive
organizational cultures in each region
Common organizational culture built on the strong,
shared ethos
Organization
Regional structure with minimal central support from
finance, HR, customer services (including marketing/
fundraising/public relations), and IT
Centralized centres of excellence for finance, HR,
customer service, and IT, with changed reporting
lines for regionally based staff serving these
functions
A new compliance directorate with responsibility for
risk and internal controls
Regional structure focused on front-line support for
service users
Technology
Core systems in place to support current processes
New systems for digital giving and technologyenabled service provision created with integration to
existing systems
Infrastructure
No changes to buildings, equipment and machinery
are required. The working assumption is that a
small increase in staff numbers in HQ can be
accommodated without additional investment
Information and
data
Information about current processes and operations is
available
Information and performance metrics adjusted to
monitor the benefits of the programme
Performance management framework is in place
Knowledge and
learning
Knowledge resides largely in regional operations with little
effective sharing
Effective sharing of knowledge and implementation
of lessons learned across the charity
Formal training is organized locally
Formal training organized centrally but delivered
locally
Current operating model
Target operating model
New
Enhanced
Processes
Knowledge
and learning
Information
and data
Infrastructure
Processes
Culture
Knowledge
and learning
Gap
Organization
Technology
Information
and data
Infrastructure
Removed
Culture
No change
Organization
Technology
Figure 5.9 The gap between current and future states
It can also be helpful to create visuals to show the gap between the current and future states. Figure 5.9 is an
example of such a gap.
68
Design
Bank compliance and adaptability programme
When the programme has been completed, the target operating model for the bank will
be similar in each region, but not identical because regional regulations and products
sold vary. The end goal is an operating model that enables the bank to compete with
rival banks, developing new products to meet current and future customer needs, using
new possibilities provided by technology.
Effective
delivery
Chapter 5 – Design
The changes required are summarized here but a detailed target operating model will be needed for the
programme, showing regional variances as these become understood:
● Processes Many business processes stay the same; however, the supporting technology may
change. New processes will be required to take new financial technology products to market at
speed.
● Culture The programme introduces big changes. At the start, the bank operated in a bubble where
no data left the bank, protecting its customers. By the end of each tranche, there will be competitors
accessing data for customers, and third parties initiating payments. The ‘island’ mindset of many of
those employed by the bank will need to change considerably. Another change in culture is for the
bank to become more adaptable, and for people to realize that new products can be developed in
weeks and months rather than years. In the past, new products have required meticulous planning
and have taken considerable investment to develop. This can now be done quickly with the new
interface layer. The culture in the future state needs to be adaptable, flexible, and innovative, with
people willing to try things out and fail fast, rather than only investing in products that seem certain
to succeed. The programme needs to create these changes within the conservative appetite for
reputational risk at the corporate level.
● Organization The organization will require people with skills in the new technologies to support
bringing products to market quickly.
● Technology The new interface layer means that the old legacy systems are now in the background
and do not need to be changed to make new products. The technology is changing to a newer
innovative financial technology, driven by applications that work across multiple operating systems.
● Infrastructure No change is required in the physical infrastructure, except for space and a suitable
environment for professionals with the required technology-based skillset to work in.
● Information and data An entirely new way of working with customer data is required. It is important
that the data remains safe and that risks of data breaches are minimized.
● Knowledge and learning Retaining the knowledge of those who build the new interface layer is vital
for sustained competitive advantage.
69
Managing Successful Programmes
5.8
Documents to support the theme
The documents produced as records of application of the design theme are shown in Table 5.4.
Table 5.4 Documents to support the design theme
Chapter 5 – Design
Document
Purpose
High-level content
Programme
strategy: design
approach
To define how the vision,
benefits, target operating model,
and associated risks will be
defined and approved by
governance
Vision How the vision for the programme will be agreed and approved
Benefits How the benefits for the programme will be agreed and approved
Target operating model How the target operating model will be defined and
approved
Risk identification How the risks to achievement of the benefits will be identified
and captured
Risk prioritization How the risks to achievement of the benefits will be prioritized
Vision
statement
Benefits map
To document the vision for the
programme in a way that
enables engagement, motivation,
and alignment of the large
community of stakeholders
involved in the programme,
possibly across multiple
organizations
Outward-facing description of the future state that is:
To show the relationship
between outputs, capabilities,
outcomes, benefits (or disbenefits), and organizational
objectives
Path to benefits A visual representation of the path to benefits that relates to the:
● concise
● understandable by a wide range of stakeholders
● engaging
● sufficiently motivating to make maintaining the current state undesirable
● outputs of projects and other work
● capabilities
● outcomes of benefit (or dis-benefit)
● benefits to be measured
● organizational objectives of the programme
Benefit profile
To provide a description of the
attributes and interdependencies
of a single benefit and to detail
how it will be realized and
measured
Description of the benefit, including:
● the organizational objectives to which it relates
● the benefit type
● how the benefit will be measured (financial where possible)
● KPIs in the business operations that will be affected, both immediately after
realization and in the future
● current baseline performance levels and the anticipated improvement
trajectory
● outcomes that need to be embedded to enable realization
● related capabilities that need to be delivered, transitioned, and adopted
● the business changes required (e.g. to processes, culture, people, and
policies)
● the costs of embedding the outcome and realizing the benefit
● related issues and risks
● any dependency on events or other projects/programmes outside of this
programme
● the operational owner of the benefit and the operations that will receive this
benefit
● is the person responsible for realizing this benefit (usually the BCM)
● any related (intended) dis-benefits and how these will be managed
70
Design
Document
Purpose
High-level content
Risk register
To record those uncertain events
that would affect one or more
programme objectives
Description of risk, including:
● likelihood of the risk occurring
● impact on the programme if the risk does occur
● proximity of the risk
● risk owner
● risk responses (ideally with costs)
● planned residual likelihood and impact, assuming responses are effective
● relevant dates
Note: risk responses are dealt with in Chapter 10
To articulate the future
organization structure, its
working practices and processes,
the information it requires, and
the technology that supports its
operations
Future-state description, including:
Chapter 5 – Design
Target
operating
model
● processes
● culture
● organization
● technology
● infrastructure
● information and data
● knowledge and learning
5.9
Focus of key roles for the theme
The areas of focus associated with the design theme for the roles of sponsoring group members, SRO,
programme manager, BCM, and programme office lead are shown in Table 5.5.
Table 5.5 Areas of focus for key roles associated with the design theme
Role
Areas of focus
Sponsoring group members
Ensuring the design approach is fit for purpose
Agreeing benefits and their measures
Identifying risks
Senior responsible owner (SRO)
Agreeing the design approach to include in the programme strategy
Approving the documents associated with the theme
Programme manager
Day-to-day leadership of the programme, including responsibility for completion of the
requirements of the design theme
Business change manager (BCM)
Providing sufficient and appropriate operational resources to support the design, ensuring that:
● the vision is clear and sufficiently motivating for the programme team plus the organization as
a whole
● the benefits are realistic for the organization to achieve
● the target operating model is appropriate in all aspects
● the risks associated with the business change are fully understood
Programme office lead
Providing specialist resources required for design theme activities
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Managing Successful Programmes
Chapter 5 – Design
72
CHAPTER 6
Justification
6
Justification
Figure 6.1 shows the justification theme as part of the MSP framework.
FICATI N
O
S
STI
Embed the
outcomes
KN
OW
LED
GE
STR
U
U
CT
RE
D
AM EA
BI L
GU
JU
Evaluate
new
information
IT Y
DE
CIS
IO
NCE
OY I
PL SK
DE SE
ER
DIV
LL
Deliver the
capabilities
Identify the
programme
Close the
programme
RATE
LABO
COL BOUNDARIES
SS
RO
AC
Plan
progressive
delivery
Design the
outcomes
ASSURA
REALIZ
E
MEASURABLE B
ENE
FIT
S
D
NS
N
IG
ES
Chapter 6 – Justification
WITH LEAD
ING VALUE
R
PU
B D
RP
N
A
OS
E
Z
A
I
T
N
E
I
C
A
O
G
N
R
O
PA
W
IT
H
ALIG N
W IT H P RIO RITIES
Figure 6.1 The justification theme as part of the MSP framework
6.1
Purpose
The purpose of the justification theme is to describe how programmes:
● ensure that the investment of capital and resources is value for money
● balance affordability and achievability with the desired benefits of value to stakeholders
● manage finances over the lifecycle, including budgeting and cash-flow management.
74
6.2
Key relationships with principles
The justification theme contributes to the adherence to MSP principles across the programme lifecycle. Key
relationships with the principles are summarized in Table 6.1.
Table 6.1 Key relationships between the justification theme and MSP principles
By …
Resulting in …
Lead with purpose
Justifying and communicating the financial
viability over time in the business case
Managed stakeholder expectations about the
programme’s evolving purpose (benefits) and
challenges (costs and risks)
Collaborate across
boundaries
Implementing governance for financial
decision-making related to investments,
priorities for cash, and/or the risk profile of
achieving outcomes
Decision-makers having clear expectations, even if
they are in different organizations
Deal with ambiguity
Reflecting uncertainty of estimates and specific
risks in the business case
Confidence levels in achieving particular outcomes
being understood by decision-makers
Align with priorities
Reflecting new information in the business case
(e.g. performance to date, potential changes in
direction, changes to the size and phasing of
costs and benefits, and changes to the risk
profile)
Clear understanding of the current expectations about
return on investment, given changing circumstances
and competition for scarce resources
Deploy diverse skills
Providing visibility in the budget of the
incremental costs of deploying specialized skills
from inside or outside the organization
Decisions about resource deployment that balance
costs and pace of delivery of benefits with individual
and organizational learning
Realize measurable benefits
Ensuring benefits are measurable, either with a
direct route to cash, through the use of cash
proxies, or by using a non-financial measure
Stakeholder confidence that the benefits are real and
the investment is justified
Bring pace and value
Expressing the design and structure of the
programme in financial terms to make clear
how the phasing of expenditure and benefits
realization supports the pace of delivery
Transparency of investments and outcomes
6.3
Programme mandate
The purpose of the programme mandate is to initiate early thinking about a programme. It is provided by the
executive management and could arrive in any format, but the sponsoring group take the information to create a
document that is used to confirm the following:
● strategic or operational drivers for the programme
● information about the internal and external organizations likely to be involved and their roles
● critical success factors against which the programme will be justified and judged
● any assumptions or constraints.
The programme mandate provides initial input to the programme brief which in turn informs the business
case. It also provides essential input for crafting the vision statement. On confirming the programme mandate,
the sponsoring group will also confirm the initial budget for progressing the programme and creating the
programme brief.
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Chapter 6 – Justification
The justification theme
applies the MSP principle
Managing Successful Programmes
6.4
Funding approach
The funding approach outlines the questions that the programme strategy must address as a minimum. Its
content will vary depending on the organizations investing in the programme and the extent to which investment
decisions can be made as part of BAU corporate governance or whether special funding instruments or
decision-making processes are required.
The funding approach in the programme strategy answers the following questions:
● Who are the investors?
● What share of the investment will be borne by which party?
Chapter 6 – Justification
● What funding mechanisms will be used, how debt will be serviced, and what requirements will need to be
satisfied for the different parties?
● How will the phasing of investments work over time and what are the implications for cash flows?
● If the programme is intended to be self-funding (i.e. benefit delivery in the early part of the lifecycle is used to
justify later tranches), what controls will be put in place to release cash based on actual savings or growth?
● What methods will be used to set budgets and size, and manage financial contingency? How will programme
budgeting be aligned with annual business planning and budgeting?
6.4.1
Funding mechanisms
Definition: Funding mechanism
The way(s) that the investing organization(s) chooses to provide finances to the programme over time.
When the investment in a programme is within a single privately owned organization or charity, the executive
team and its board can decide how to fund the investment. Investments may be funded through borrowing from
investors or the market as loans in the form of overdrafts, capital, or funds from shareholders through rights
issues, venture capital, or grants. Single organizations can adjust the funding mechanisms over time if necessary
to meet the needs of the business.
In the public sector, investment may be made directly by the government treasury as part of public-sector
borrowing plans, or other funding arrangements may exist that engage private-sector capital for the delivery of
public programmes.
In the case of a multi-organization investment in the programme, developing the funding mechanisms is likely to
be more complex and may involve international investors and grant funding from, for example, the United
Nations. In such cases, the goals and agendas of multiple funding stakeholders need to be aligned and
auditable systems put in place to track performance. A major goal in such situations, as is the case with all
programmes, is to agree the delegated limits of authority at local (programme level) so that the programme can
progress without unreasonable delay while maintaining the confidence of the funding bodies.
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Justification
It would be normal for the finances to fund the programme to be released to the team as part of a budget.
Budgets may cover the whole programme or part of a programme, such as the next tranche of work or the next
financial year. Some programmes receive a ‘seed’ budget for a specific period of time before the initial benefits
are realized, after which the programme is expected to be self-funding.
National Rail network programme
Innovation
and growth
Chapter 6 – Justification
The National Rail network programme requires a significant level of government
funding over many years. The government treasury strives to minimize the cost of
borrowing across all government programmes and is working with affected
departments, primarily transport, to understand the timing and level of the required
allocation of funds.
Funding allocation needs are reviewed as part of the government’s budgeting processes and revised as
necessary to take into account policy priorities and progress with major capital schemes. Updates to
budgetary and allocation needs are included in the government’s budget. This is a politicized event as
funding for this programme means other programmes will not receive funding.
There is a preliminary cost profile for the programme. The capital investment required is significant and
it indicates several periods when the demand for capital funding will peak. The government is exploring
funding regimes that would make private-sector capital available. There are risks and rewards associated
with such partnership arrangements and the SRO is working with the government treasury to evaluate
options and bring together the relevant information to enable the sponsoring group to make a decision.
Utilities maintenance and improvement programme
Funding for this programme comes from internal budgets. The infrastructure
investment committee is responsible for approving all the initiatives in the infrastructure
portfolio, which includes approving, in principle, the portfolio of schemes (projects) to
be delivered over five years to achieve the goals of the programme.
Efficient
delivery
The annual infrastructure portfolio budget is released each year, and this includes the annual budget
allocated to the maintenance and improvement programme. The level of budget determines the amount
of work that can be completed during the year, and the challenge for the programme is to complete as
much work as possible with the funds available.
If any project in the programme is unable to complete the work as planned, the unused funding is
returned to the programme so it can be reallocated to other work. This requires behavioural change
across the maintenance teams, and the BCM and programme office lead work together to ensure that
reporting and forecasting are as honest as possible.
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Managing Successful Programmes
6.5
Programme brief
The purpose of the programme brief is to validate and build from the programme mandate and create the
information that represents evolving thinking about a number of the programme’s areas, such as:
● initial vision
● outcomes
● benefits
● costs of building and embedding new capabilities
● risks to the achievement of costs, outcomes, and benefits
Chapter 6 – Justification
● early ideas on funding and cash flows.
The programme brief is often said to be the ‘first draft’ business case. It must expose any flaws in the original
mandate. In particular, the programme brief looks not only at the desired outcomes of benefit and the (highlevel) costs to achieve them, but reflects a realistic view of the organization’s competence, capacity, and culture
to be successful.
Depending on the organization’s approach to measuring benefits in financial terms, some programmes may have
costs that are not balanced by direct financial benefit. For example, programmes that are required to comply
with changing legislation may be justified, in part, on the basis of avoided fines, or programmes intended to
improve customer satisfaction may be justified without attributing all new sales to the programme. The
programme brief will make such underpinning assumptions clear so they can be further developed in the
business case.
6.6
Business case
The purpose of the business case is to describe the overall costs, the planned benefits realization, and the risk
profile of the programme in order to assess its viability and make appropriate management decisions about its
continued justification. In approving the business case, the sponsoring group authorizes investment for the
programme to seek to deliver the organizational objectives of the investing organization(s). It is the one element
of programme information that requires continual review and adjustment to take into account new information
and actual performance. Inputs to the business case include the outputs from work across all the other themes;
for example, the target operating model from the design theme and the resourcing approach from the structure
theme.
The business case looks at the combined effect of the:
● value of benefits
● costs of delivering capabilities
● costs of embedding outcomes of benefit
● timing of investments and business changes
● risks to achievement of benefits and size of financial contingency.
Figure 6.2 illustrates the business case.
78
Justification
Programme mandate
Programme brief
Target operating model
Programme business case
Inform
Inform
Benefits
Risks
Chapter 6 – Justification
Resources
Timings
Project
business
case
Scope,
objectives,
and
constraints
Alignment
Assurance
Figure 6.2 The business case
All benefits must be measurable but it is highly desirable when building a business case (to justify initial and
continued investment in a programme) to be able to express those benefits in financial terms. There are
numerous tried and tested ways to carry out an investment appraisal, the critical success factor being that the
benefits claimed must be directly attributable to the work to be funded, with no ‘leaps of faith’ or ‘doublecounting’. The benefits map and associated benefit profiles are crucial documents in ensuring this is achieved.
Some organizations choose not to measure all benefits in financial terms.
When benefits are directly attributable to the work of the programme, the costs of delivering those outcomes of
benefit can be estimated. This is the case whether they are investments in new capabilities or investments in
embedding the outcomes into routine processes to create long-term value.
The logic underpinning the phasing of the work requires interplay across the multiple themes to find the optimal
size of investment that is affordable and represents an achievable amount of change for the organization at an
acceptable level of risk.
In some organizations it is a requirement to include considered options in the business case as well as the full
justification for the chosen option. Options analysis is discussed in the decisions theme in Chapter 10.
6.6.1
Investment appraisal
Investment appraisal is necessary to justify initial and continued investment in the programme. An investment
appraisal looks at the relationship between benefits, costs, and risks.
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Managing Successful Programmes
6.6.1.1
Financial measures of benefits
Financial measures of benefits may include:
● cost savings vs budget, such as reduced staff costs
● future cost avoidance, such as the avoidance of the need to upgrade a system that is being replaced
● growth, such as additional sales that are directly attributable to the programme
● cash proxies for qualitative benefits, such as increased customer satisfaction (reduced sales costs), staff
satisfaction (reduced costs of recruitment), or improved safety performance (reduced costs of investigations
or fines).
Chapter 6 – Justification
Financial measures of benefits enable investment appraisals to determine the return on investment using
metrics such as:
● Payback A measure of time to literally pay back the investment of cash and other resources.
● Net present value (NPV) An amount of money that the investment will have earned by a particular point in
time that takes into account the time value of money using a discount rate to determine discounted cash
flows (DCF).
● Internal rate of return (IRR) A percentage that indicates the rate of return on investment when the NPV
is zero.
The assumptions underpinning the estimates of benefits and costs need to be explicit to enable decision-makers
to judge the validity of the measures of return on investment.
Figure 6.3 shows a graph of a simple payback approach to investment appraisal, often called the cumulative
net benefit curve.
Programme close
Value of benefit
Cost of delivering benefit
Net benefit line
Programme start
Figure 6.3 Cumulative net benefit curve
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Justification
6.6.1.2
Non-financial measures of benefits
Non-financial measures of benefits may include:
● satisfaction rates with a service from customers or citizens
● staff satisfaction
● safety performance
● asset utilization, such as percentage availability or percentage ‘down-time’.
It is vital to clearly state the assumptions that underpin estimates.
Understanding and accepting the risk profile and not setting expectations of higher-than-justified confidence in
estimates of return on investment is critical work for the SRO and sponsoring group. Decision-makers often
require confidence levels to be placed on return-on-investment estimates, and quantitative risk assessment
techniques can support this requirement by modelling the combined effects of estimate uncertainty and specific
risks (see section 6.6.2).
6.6.2
Combined effects of risks
Risk models aim to represent an uncertain situation (in this case, the programme’s business case) by taking into
account:
● variability in estimates of benefits and costs, such as productivity rates or sales volumes
● the combined effects of specific threats and opportunities from the risk register.
Risk models use statistical methods to analyse the effect of uncertainty on objectives. Using three-point
estimates for each variable, the analysis produces an overall estimate of the results from the programme with
information on the confidence levels it would be rational to hold about meeting a capital cost or NPV. Such
analysis is said to be probabilistic. If this kind of analysis is not done and single-point estimates are used in
financial models, the predicted out-turns are said to be deterministic. It then becomes difficult to have any
confidence about whether the results represent an optimistic, realistic, or pessimistic view of the programme.
The key to building risk models is to be very clear about underpinning assumptions and the parameters used to
build the output. This is specialist work performed by people typically employed in a programme office.
However, in many programme environments it is essential to be explicit to enable confidence levels in achieving
the programme’s goals, in order to manage the investing stakeholders’ expectations.
It is common when building such models to look only at costs, but there is a greater value in looking at the
whole business case (benefits and whole-life costs) and at a probabilistic NPV of the investment or a
probabilistic IRR.
An example of the output from a risk model is shown in Figure 6.4. It is common practice to refer to the
probability of achieving an objective (e.g. a capital cost for a programme or the NPV of the investment) as P
followed by the percentage confidence. In Figure 6.4, therefore, the P10, P50, and P90 positions on the
cumulative curve relate to the 10%, 50%, and 90% confidence levels respectively.
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Chapter 6 – Justification
Where the investing organization(s) does not require a complete financial expression of return on investment,
the business case may show a lower financial return based on the relationship between costs and a sub-set of
benefits (with other benefits expressed qualitatively). Where benefits are difficult to attribute directly to the
programme in financial terms, such as sales growth, the sponsoring group is likely to accept non-financial
measures. This avoids the risk of double-counting of benefits in the investment appraisal or assuming that
benefits will flow from the work of the programme, when in fact other activities are required to realize those
benefits.
Managing Successful Programmes
Probability
of achieving
an objective
P90 (90% confidence level)
Costs,
benefits,
or NPV
P50 (50% confidence level)
Chapter 6 – Justification
P10 (10% confidence level)
Range of results from probabilistic risk analysis
Figure 6.4 An example of the output from a risk model
Other techniques exist for looking at specific risks to the business case at a less granular level (e.g. decision
trees and sensitivity analysis). For more information, see Management of Risk (M_o_R).
6.6.3
Sizing and allocating ownership of financial contingency
Definition: Financial contingency
The financial allowance that the investing organization(s) decides to make available to deal with identified
and unidentified risks.
In most organizations, the justification of a programme will also include a process of allocating budgets at
different levels of the organization structure, and for agreeing the amount of financial contingency that will be
held at the various levels.
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Justification
Delegated to
sponsoring group
Management reserve
Cost at 90% confidence level (P90)
Risk budget
Expected monetary
value of risks (or %)
Delegated to
programme board
Risk budget
Cost at 80%
confidence level (P80)
Base cost
Estimate for known scope
Delegated to
programme manager
Base cost
Cost at 50%
confidence level (P50)
Figure 6.5 An example of sizing and allocating ownership of financial contingency
Figure 6.5 provides an example of two different ways that organizations may choose to allocate financial
contingency (alternatively called the risk budget or management reserve). The left-hand side assumes that risk
modelling or a probabilistic risk assessment has not been done and that the size of contingency has been
determined through:
● a high-level estimate informed by benchmarks (e.g. ‘in our experience programmes of this complexity
typically require 30% contingency’) or
● an estimate of the expected monetary value of the risks in the risk register by multiplying the percentage
likelihood of occurrence with the financial value if it did.
Both are crude and/or approximate methods but are frequently used in practice in organizations. Where a
percentage estimate has been used, it is good practice to translate this into an actual amount of money.
The right-hand side assumes that a probabilistic risk assessment has been done and that the respective sizes of
the budget and contingency would therefore be calculated from the outputs. For example:
● budget set at the 50% confidence level for the programme manager to manage
● contingency amount (risk budget) set at 80% confidence level to be managed by the SRO and
programme board
● management reserve held by the sponsoring group set at 90% confidence level.
Different organizations use different methods for both the sizing of and allocating ownership of financial
contingency and the confidence levels chosen are specific to the organization and its risk appetite. Defining
these parameters is an important part of the funding approach and the overall governance of programme
justification over time.
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Chapter 6 – Justification
Management reserve
Estimate
Managing Successful Programmes
6.6.4
Key considerations when validating a business case
To ensure that the programme is justified throughout its lifecycle, periodic reviews of the business case are
required so that decisions can be made about realignment with needs and the ongoing viability of the programme.
Such reviews are planned as part of overall assurance planning. Reviewing the business case provides answers
to the following questions:
● Does the programme continue to align with the strategic objectives of the investing organization(s)?
● Does the programme remain affordable?
● Do the programme outcomes remain achievable?
● Does the programme continue to demonstrate value for money in terms of the balance between benefits
Chapter 6 – Justification
and costs?
● Does the financial contingency provide realistic cover for knowable risks?
Bank compliance and adaptability programme
The programme is halfway through the first tranche, and compliance with the openaccess banking regulations in Region 1 is almost complete. So far, the programme has
Effective
delivery
consumed a huge amount of money, time, and resources for no quantified return on
investment. In the original business case, the bank decided not to create cash proxies for
compliance with regulations, the ability for the bank to stay in business, or for the ability to bring
products to market more quickly. As a result, there is a growing perception at board level that the
programme is just a big, expensive compliance exercise with no benefits. Given the size of the overall
digital transformation portfolio, the CEO has asked the SRO to revisit the business case part-way through
Tranche 1.
The SRO and programme manager meet up to discuss the possibilities going forward. The options include:
● closing the programme as soon as compliance is complete in Region 1 but without finishing the
development of all the planned capabilities in Tranche 1
● closing the programme when the work to complete the compliance requirements and the interface
layer is complete in Region 1. This interface layer brings the capability to allow new products and
services to be built in the future, but the programme would close before actually creating any of them
● continuing Tranche 1 as planned.
After considering each option, the SRO and programme manager come to the following conclusions:
● Closing the programme as soon as the compliance work was complete in Region 1 would mean that
there was no financial return on investment. It would also mean that the situation with the challenger
banks would remain unchanged and market share and customer satisfaction would continue to fall.
● Closing the programme after building the complete interface layer in Tranche 1 would mean that the
capability was there to build new products quickly, but none would be developed. Although this case
ensures adaptability for the future, it does not provide any return on investment until these new
products are developed.
● Continuing with Tranche 1 to the landing point as planned would allow new products and services to
be developed at speed and to compete with the challenger banks. This is the only option carrying the
potential for a positive return on investment.
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Justification
The SRO and programme manager create a diagram showing the options and results (Figure 6.6). They
use a cumulative net benefit curve, which combines the costs with the predicted benefits. They know
that the programme will allow quicker access to market in the future but drafting a measure is
problematic. They know that monetizing the benefits of the programme beyond compliance will be
important in maintaining board support.
4 Most optimistic
Chapter 6 – Justification
Now
Time
4 Most pessimistic
1 No compliance
2 Compliance
3 Compliance and
adaptability for
the future
4 Compliance, adaptability,
increased market share,
increased consumer loyalty
and adaptability
Figure 6.6 Cumulative net benefit curve for the bank compliance and adaptability programme
Charity organizational realignment programme
The executive team, acting as the sponsoring group, have asked the programme team to
produce a high-level cost estimate for the work planned for the two-year programme
Organizational
realignment
and they will approve this budget at the next monthly meeting. There is little interest in
understanding the business case for the programme in terms of return on investment.
The financial benefits associated with growth in donations is an agreed target and the charity does not
want to quantify the increased service, compliance, and staff satisfaction benefits in financial terms.
There is little capability or interest in a formal risk process and the CEO and CFO consider the risks
associated with the programme to be minimal (on the assumption that the programme experts that have
been hired will deliver).
Charity programme continues
85
Managing Successful Programmes
As a result, financial contingency will be set as a small percentage of the cost estimate. The programme
manager and the BCM are concerned about this approach. Realization of the benefits will not be
straightforward and although the charity can afford the investment, achievability of the outcomes in two
years is uncertain. As soon as delivery planning and benefits realization planning are in place, the
programme board has agreed to create a more comprehensive business case, including financial
measures for all benefits and a full risk assessment. They will attempt to persuade the sponsoring group
of the value of the business case when making programme decisions at each landing point.
Chapter 6 – Justification
6.7
Financial planning
Financial management of a programme includes the work to set budgets, plan cash flows, collect and analyse
data on actual expenditure and benefits realization, report on variances, facilitate corrective action as necessary,
and forecast future financial performance. Financial management is documented in the financial plan, and
applies to all elements of the programme, including projects and other work.
The purpose of the financial plan is to detail how costs and benefits are budgeted, monitored, and measured
over time, as well as the process for managing variations from the plan and the methods of forecasting future
performance. The financial plan may be a separate document or be part of the wider programme plan.
6.7.1
Budgets
Definition: Budget
The sum of the estimates of income and expenditure for the programme that are delegated to the roles in
the programme organization.
Programmes require budgets to enable people to know the limits of their delegated authority in carrying out
the work. Budgets are the output of planning processes (see Chapter 7). It is normal for the overall budget,
including all financial contingency for a programme, to be allocated to the sponsoring group. Parts of the overall
budget are delegated to other parts of the organization structure, in line with the delegated limits of authority that
are agreed when composing the governance approach and the methods for allocating contingency in the
funding approach.
Because most programmes span many financial years, the funding approach in the programme strategy
addresses how programme budgeting will work alongside annual budgeting within the investing organization(s).
Individual projects or other work that are part of the programme may receive budget from other sources (e.g. an
operational budget as part of the annual business plan). It is important to ensure that the programme business
case includes all costs of delivering the outcomes of benefit without gaps or double-counting. This will entail
measuring or estimating costs for internal resources in an appropriate way, such as time-sheets for staff or an
agreed allocation process for the use of facilities or equipment. This will ensure that the business case for the
programme does not communicate a partial picture of what achieving the vision and benefits will require.
Table 6.2 provides examples of the different types of programme cost.
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Justification
Table 6.2 Types of programme cost
Type
Description
Project costs (sometimes referred to
as investment or development costs)
Project costs in acquiring and delivering the enabling outputs for project and programme
contingency and change budget
Benefits realization costs
Setting up and implementing measurement, monitoring, and reporting on benefits realization
Other costs incurred in achieving the benefits, which can be attributed to benefits (e.g.
compensation packages for staff)
Programme management costs
Some programme roles will be full-time (e.g. the programme office and the programme
manager)
Associated costs for these roles and for programme management activities (e.g. office space
and programme tools for tracking and reporting progress)
Contingency budget for dealing with risk and change
Assurance and review costs
Capital costs are normally for fixed assets, which can often be found under the ‘technology’
heading in the target operating model
Chapter 6 – Justification
Capital costs
In accountancy terms, the impact of these costs will often be spread over a number of years
6.7.2
Cash flow
Definition: Cash flow
The net amount of cash and cash-equivalents that the programme requires to pay for resources over time.
Programmes inevitably require visibility of the phasing of expenditure so that the finance function in the
investing organization(s) can plan to have cash available to pay for resources. The funding mechanism that was
agreed as part of the funding approach will have particular controls in place to release cash as required.
Some programmes are expected to be self-funding so that after a relatively small investment in achieving initial
benefits, it is the flow of cash from benefits that will justify ongoing work. This can cause particular problems
for releasing cash flow so specific arrangements are needed.
As part of the overall programme planning (see Chapter 7), the phasing of work, the commitment of resources
to the delivery plan (including third-party resources), and the form of contract agreed with suppliers all impact
on cash-flow planning and management. For example, contracts may specify that milestone payments to
suppliers are only paid after the work has been verified as ‘earned’ and accrued by finance.
6.7.3
Tracking and forecasting expenditure and benefits realization
The assurance theme addresses the methods for monitoring the performance of programmes at multiple levels.
A key part of this is the work that the programme office performs on behalf of the programme board to track
actuals. This includes expenditure committed (earned and accrued by staff on time-sheets or supplier invoices),
money spent (cash paid), and benefits realized.
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Managing Successful Programmes
Some organizations will use earned value techniques to track actuals vs plans and provide forecasts. Where this
is not the case, it is important that:
● tracking of money is done alongside tracking of time and completion of the work in scope
● forecasts reflect performance to date and any corrective actions that have been implemented to improve the
trajectory if this is not positive.
It can be useful to set up a specific benefits tracker to focus on the activities to embed outcomes and realize
benefits, and the planned and actual benefits achieved. Such a tracker would be created from the individual
benefit profiles and would also usefully track the management of dis-benefits.
6.7.4
Management of financial contingency
Chapter 6 – Justification
Financial contingency is derived from an assessment of risk, either a top-down estimate or a bottom-up
detailed probabilistic assessment. Whatever approach is used, the purpose of financial contingency is to make
provision for:
● risks that have been identified in the risk register
● known variability within estimates
● supplemental management reserve to deal with emergent or unidentified risks.
It follows that financial contingency is not intended to be spent on known scope or planned work, and as a
result the tracking and release of financial contingency often has specific controls defined.
Over the life of a programme, the amount of financial contingency would be expected to reduce as ambiguity
decreases. This may be because some of it has been spent:
● on dealing with issues when risks materialize
● to put in additional risk responses.
The reduction in financial contingency may also be due to putting more of the programme funding into the
‘known’ budget relative to the ‘unknown’ contingency budget as ambiguity decreases.
Tracking and managing financial contingency is a key responsibility of governance boards.
6.7.5
Reporting on variances
The decisions theme (Chapter 10) covers governance of programme reporting and decision-making. Reporting
on financial variances is one key part of this work. It is vital for ensuring that decision-makers at all levels have
the information they need to ensure the programme remains aligned with organizational objectives, delivering
value to the investing organization(s) at the right pace.
Programmes rely on timely and accurate information from the programme office and honesty from all parties
when deciding whether the programme is, and continues to be, justified.
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Justification
6.8
Documents to support the theme
The documents produced as records of application of the justification theme are shown in Table 6.3.
Table 6.3 Documents to support the justification theme
Document
Purpose
High-level content
Programme
mandate
To initiate early thinking
about a programme
Strategic or operational drivers for the programme
Initial information about the internal and external organizations likely to be involved and
their role
Critical success factors against which the programme will be justified and judged
Initial budget to create the programme brief
Initial input to the programme brief and vision statement
Programme
strategy:
funding
approach
To define the investors in
the programme and how
funds will be raised and
made available to the
programme over time
Investors Who they are and what share of the investment each will bear
Funding mechanisms What funding mechanisms will be used, how will the debt be
serviced, and what requirements will need to be satisfied for the different parties?
Phasing of investments and implications for cash flows. The controls that are needed to
release cash based on actual savings or growth
Budgets Methods to agree budgets aligned with annual business planning
Financial contingency Methods to determine size and how the contingency will be managed
Programme
brief
To validate and build from
the programme mandate
and create the information
that represents evolving
thinking about a number of
the programme’s areas
First draft business case, including:
● initial vision
● outcomes
● benefits
● costs of building and embedding new capabilities
● risks to the achievement of costs, outcomes, and benefits
● early ideas on funding and cash flows
Business case To describe the overall costs,
the planned benefits
realization, and the risk
profile of the programme in
order to assess its viability
and make appropriate
management decisions about
its continued justification
Organizational objectives of the investing organization(s)
Financial plan
Budgeting Process and controls
To detail how costs and
benefits are budgeted,
monitored, and measured
over time, as well as the
process for managing
variations from the plan and
the methods of forecasting
future performance
Value of benefits in measurable terms, ideally financial
Costs of delivering capabilities and embedding outcomes of benefit
Timing of investments and intended changes
Risk to achievement of outcomes of benefit and associated financial contingency
Assessment of viability of the overall business case
Cash flow Process and controls
Variances Monitoring and reporting variances of both costs accrued and benefits
realized
Releasing contingency Process and controls
Forecasting Methods for forecasting future performance, taking into account
performance to date and any corrective actions
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Chapter 6 – Justification
Any assumptions and constraints
Managing Successful Programmes
6.9
Focus of key roles for the theme
The areas of focus associated with the justification theme for the roles of sponsoring group members, SRO,
programme manager, BCM, and programme office lead are shown in Table 6.4.
Table 6.4 Areas of focus for key roles associated with the justification theme
Role
Areas of focus
Sponsoring group members
Confirming the programme mandate
Approving the programme brief
Approving the business case
Chapter 6 – Justification
Ensuring the funding approach is fit for purpose
Senior responsible owner (SRO)
Producing the programme brief
Providing ongoing justification of the business case on behalf of the sponsoring group
Agreeing the funding approach to be included in the programme strategy
Programme manager
Planning and monitoring all costs in delivering the programme
Ensuring financial analysis is risk-informed
Business change manager (BCM)
Planning and monitoring all benefits realization for the programme
Programme office lead
Providing timely and accurate information relating to accrued costs and realized benefits
Providing expert resources to assist with financial planning and management, including risk
assessment
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CHAPTER 7
Structure
7
Structure
Figure 7.1 illustrates the structure theme as part of the MSP framework.
S
STI
Embed the
outcomes
KN
OW
LED
GE
STR
U
U
CT
RE
D
AM EA
BI L
GU
I
JU
Evaluate
new
information
TY
DE
CIS
IO
NCE
OY I
PL SK
DE SE
ER
DIV
LL
FICATI N
O
Deliver the
capabilities
Identify the
programme
Close the
programme
RATE
LABO
COL BOUNDARIES
SS
RO
AC
Plan
progressive
delivery
Design the
outcomes
ASSURA
REALIZ
E
S
A
U
E
R
M
ABLE B
ENE
FIT
S
D
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N
IG
ES
Chapter 7 – Structure
WITH LEAD
ING VALUE
R
PU
B D
RP
N
A
OS
E
Z
A
I
T
N
E
ION
C
GA
R
A
O
P
W
IT
H
ALIG N
W IT H P RIO RITIES
Figure 7.1 The structure theme as part of the MSP framework
7.1
Purpose
The purpose of the structure theme is to describe how:
● programmes plan the delivery of projects and other work in the most effective way, ensuring the best pace
of delivery to allow the organization to transition to the future state and achieve the benefits
● resources are selected, allocated, and optimized, including people, facilities, and equipment.
92
7.2
Key relationships with principles
The structure theme contributes to the adherence to MSP principles across the programme lifecycle. Key
relationships with the principles are summarized in Table 7.1
Table 7.1 Key relationships between the structure theme and MSP principles
By …
Resulting in …
Lead with purpose
Planning delivery in the most appropriate way to
achieve the future state and associated outcomes of
benefit
Continual focus on achieving the
programme’s goals in the most effective way
Collaborate across boundaries
Maintaining clarity about the number and types of
resources needed and how they will be sourced
Effective and efficient use of programme
resources
Deal with ambiguity
Providing manageable tranches of delivery that
contribute to clear intermediate landing points
Greater clarity in ambiguous environments,
even when the ultimate ending point may not
be known
Align with priorities
Adjusting the content of tranches to reflect new
information
Manageable progress towards the vision with
safe places to stop and readjust
Deploy diverse skills
Planning delivery using the most appropriate mix of
resources to achieve the outcomes of benefit
More effective use of external skills and
development of permanent staff
Realize measurable benefits
Ensuring outcomes of benefit are embedded in line
with intermediate landing points
Realization of benefits across the programme
lifecycle, not just at the end
Bring pace and value
Planning the delivery of capabilities at the best pace
to achieve the outcomes of benefit in line with the
business case
Achievable and managed progression towards
the future state
7.3
Delivery approach
The delivery approach outlines the questions that the programme strategy must address as a minimum. Its
content will vary depending on the organizations investing in the programme and the mix of projects and other
work that is needed to create the desired outcomes of benefit.
The delivery approach in the programme strategy answers the following questions:
● How will programme work be structured and delivered, based on the organizational environment, the
programme’s complexity, and the availability of skills and resources?
● What ways of working are most appropriate to the task, team, individuals, and context? What modes of
delivery will be used?
● How will projects and work on processes be started, controlled, and closed to maintain alignment with the
target operating model?
● What delivery standards are relevant to the programme?
● How will internal, intra-organizational, and external dependencies be defined and managed?
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Chapter 7 – Structure
The structure theme applies
the MSP principle
Managing Successful Programmes
7.4
Establishing the appropriate pace
Definition: Pace
The timing of programme delivery to ensure the appropriate balance between a number of factors. The
factors include delivery of capabilities, achievement of desired programme outcomes, available funds,
maintenance of current performance levels, and business as usual (BAU) activities.
Chapter 7 – Structure
A programme aims to deliver maximum improvements with minimum disruption to an organization. The
programme needs to have sufficient funding and the necessary resources with the right skills for delivery. The
affected organizational units need to have sufficient capacity and capability to adapt to new operations while
maintaining the performance of existing operations. Pace is about designing the programme delivery so that the
investing organization(s) can ‘cope’ with the rate of change.
7.4.1
Balancing capacity and ability
Definitions
● Organizational capacity The amount of work that an organization can deliver in a given period of time.
● Organizational ability The overall capability of an organization to perform the work required to deliver
outcomes of benefit with its current people, processes, and practices.
The programme organization will have limited capacity for programme delivery. Operational units being affected
by change will have limited capacity to adopt new capabilities and adapt to new operational outcomes. In
addition, the organization(s) investing in the programme may not have the collective capabilities to perform the
necessary work. The programme needs to coordinate delivery to take into account the limited resources
available, and ensure that the resources have the right skills to deliver and adapt to change. Questions to
consider include:
● Will there be sufficient capability available to manage the work when required?
● Will programme and project staff have the appropriate skills and experience?
94
Structure
Utilities maintenance and improvement programme
Organizational capacity is the primary limiting factor on pace for this programme.
Distinctive aspects of the programme are:
● limited resources, including internal maintenance crews, excavation and maintenance
Efficient
delivery
equipment, and available funding for external contractors
● significant ambiguity when scheduling, given the unpredictability of when unplanned maintenance
requirements will be required and whether the conditions for working outside will be conducive to
efficient work.
Programme planning needs to make best estimates based on the best historic and predictive data
available. The common experience of many efficiency programmes is that:
● there is frustration at the local level when productivity drops on one project for the benefit of another.
Chapter 7 – Structure
The behavioural changes needed to optimize a portfolio of work within a programme can be significant
● plans are optimistic and do not make realistic provision for risks occurring, such as from worse than
expected ground and/or weather conditions, to the breakdown of equipment and unavailability of workers.
Accurate reporting of actuals and re-forecasting based on an up-to-date understanding of experience and
perceived risk are critical success factors for efficiency programmes, as is the creation of a culture where
the whole programme rather than individual projects is optimized.
Bank compliance and adaptability programme
Organizational ability is the primary limiting factor for this programme. Distinctive
aspects of the programme are:
Effective
delivery
● achieving the target operating model with previously well-guarded data made
available so that customers can use it both within the bank’s systems and elsewhere; building the
technology to do this requires skills that do not existing in the current bank
● existing bank staff do not have the ability and knowledge to do the technical work required
● new ways of working are radically different from the bank’s established culture of keeping data safe
by retaining it and not letting go of it for any reason.
There is a need to bring in experts who have a good knowledge of open-access banking at a time when
many other banks will be chasing the same specialist contractors. There is only a small pool of people
with the detailed knowledge and experience of developing the interface layer of systems required and
exploiting the technology when it is in place. To build the organizational ability for the future, the bank
will need to pay external resources to do the work, and to train internal staff in parallel.
The common experience of many effectiveness programmes with a compliance aspect is that:
● the costs to comply are so high that the organization does not want to invest in exploiting additional
new capabilities
● the organization fails to develop any competitive advantage from its investments in compliance.
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Managing Successful Programmes
7.4.2
Balancing achievability and affordability
The target operating model shows the processes, culture, organization, technologies, infrastructure, information
flows, data, and knowledge and learning for the current and future organizations, and highlights the gap between
them. This gap is filled by the programme through the delivery of capability via projects and other work.
Balancing the achievability and affordability of the programme is an iterative process which is accomplished
through developing the target operating model and associated benefits in parallel with planning the
programme’s delivery. If an acceptable balance between affordability and achievability does not emerge, it is
worth considering:
● designing a target operating model in which the gap between the current and future states is smaller
● finding a different solution (e.g. delivering the programme more quickly or cheaply)
● negotiating the allocation of increased funding or allocation of other resources to the programme
● closing the programme earlier than originally planned.
Chapter 7 – Structure
National Rail network programme
Affordability is the primary limiting factor for this programme. Distinctive aspects of the
programme are:
● size of the funding required
Innovation
and growth
● duration over which it will be required
● competition for funding from other government programmes
● influence of stakeholders, such as citizens and lobbying groups, on government opinion.
Effort will be required to ensure that value for money for citizens is defined, communicated, and
understood. The programme funding will register as a notable percentage of the annual gross domestic
product of the entire national economy, making the costs of borrowing significant. Close management of
the borrowing and the timing of the allocation of funds to the programme will be required. The
programme manager is aware that delivery planning must consider the availability of cash to the
programme.
The common experience of major infrastructure programmes across countries shows that:
● costs are often significantly underestimated
● the difficulty of achieving the target operating model is not appreciated
● more effort than anticipated is required and costs rise
● the target operating model and all aspects of delivery need to be regularly reviewed and the business
case regularly re-justified.
96
Structure
Charity organizational realignment programme
Achievability is the primary limiting factor for the charity programme. Distinctive
aspects of the programme are the:
Organizational
realignment
● lack of in-house capability in programme management
● size of the cultural change necessary to move to greater centralization and process control
● ability to deliver the technical solutions quickly enough in a two-year timeframe.
Effort is required to build internal capabilities, particularly those associated with embedding change in
regional operations. The common experience of many organizational realignment programmes is that:
● the effort to change behaviours is underestimated
● unless processes and internal controls are changed to support the required change, initial benefits
will be eroded over time.
Chapter 7 – Structure
The delivery plan will be critical in keeping a focus on every element of the programme.
7.5
Delivery planning
The purpose of the delivery plan is to schedule the constituent projects and other work of the programme to
show their relative timescales, resources, and dependencies. The plan covers the programme as a whole and
the next tranche in detail.
An inherent feature of a programme is that it cannot be delivered through a linear set of delivery phases.
Programmes require an incremental progression to the target operating model to take account of complexity
and ambiguity.
Definitions
● Incremental progression An approach to delivering a programme that focuses on delivering benefits
of value to stakeholders throughout the programme lifecycle, adapting as necessary to align with new
information.
● Tranche The work required to deliver a step-change in capability and benefits realization. Several
interrelated projects and other work may be involved in a tranche. Work may be delivered
incrementally across several tranches.
● Landing point A control point, following delivery of a step-change in capability and benefits
realization (tranche), at which a programme can be redirected or closed.
Programmes are designed to help the organization move from the current state to the future state through a
series of intermediate operating models. Each increment in MSP is called a tranche.
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Managing Successful Programmes
The intermediate operating model achieved at the end of each tranche is often referred to as a landing point.
Landing points represent a set of coherent capabilities which provide a safe place to stop if necessary, or a new
baseline from which priorities can be adapted in response to new information.
Not all benefits from the tranche will be realized by the landing point. At the landing point, capability is
delivered and outcomes are embedded which then enable benefits to be realized over time.
Delivering in tranches enables the programme to adapt to learning and new information. Early tranches might
deliver core changes with later tranches building on that core, resulting in quick wins and the reduction of
programme risk. Early in a programme, the route to achieving the vision may also be unclear. Structuring a
programme into tranches can help to explore different approaches and decide on the most appropriate mix of
cost, time, benefits, and risk in achieving the vision.
In some cases, tranches may be planned to overlap where projects or other work need to start early and at risk.
When deciding whether to have overlapping tranches, consider:
● Ongoing commitment to the programme If there is confidence that the programme will continue because
Chapter 7 – Structure
progress to date has been to plan, and there is organizational capacity, capability, and funding to do so,
starting the next tranche early may be advantageous.
● Risk appetite of the investing organization(s) Is there enough confidence to work at risk knowing that the
programme might be closed at the next landing point? This is likely to be connected to whether the
programme environment is stable or fast-moving.
● Willingness to modify governance Overlapping tranches increase administration and the complexity of
decision-making, so the possibility for accelerated benefits realization must outweigh the costs.
Planning programme delivery considers a number of factors, including:
● the relative priorities of projects (e.g. procurements where outputs are prerequisites for future projects)
● resource requirements, including scarce and shared resources
● projects that will provide early benefits realization
● dependencies.
Tranche 2
Tranche 1
Project D
Capability
Project C
Transition
Outcomes
Project A
Project B
Capability
Other work
Transition
Outcomes
Project E
Capability
Project F
Transition
Landing point 1
Figure 7.2 An example of a delivery plan showing tranches and landing points
98
Outcomes
Landing point 2
Structure
To enable effective management, it is necessary to consider logical groupings of projects and other work, taking
into account factors such as skills, knowledge, technology, existing team-working arrangements, geography,
culture, and projects currently underway.
A key part of planning the programme is planning for transition. Change to an organization’s people, processes,
and technologies needs to be planned and managed carefully to allow a smooth migration from the old
environment to the new one. It is important to maintain performance levels in existing business operations
while introducing new operations. Figure 7.2 is an example of a plan with tranches and landing points.
Bank compliance and adaptability programme
Chapter 7 – Structure
The programme rolls out around the world, region by region. Tranche 1 covers
Region 1. This tranche starts with a number of projects which develop a new interface
Effective
delivery
layer of systems for the bank to use in Region 1, allowing compliance with the new
open-access banking regulations. Additional projects expand the interface layer so that
new developments can rely on this new layer, rather than having to change legacy systems and
processes. As soon as this technical work is complete, several projects develop new innovative products
for customers, using the new interface layer alongside new financial technologies. These projects happen
in parallel with other work.
When the new compliant interface layer and the new products are in place, they can be launched into
the market as part of the transition. This is when the landing point has been reached, with the target
operating model in place for Region 1. It is likely to take many months before customers use these new
capabilities in large-enough numbers to deliver benefits in terms of profit and increased market share
back to the bank. Other non-financial benefits come from compliance with regulations, plus the ability to
adapt quickly in the future, by developing new products without having to change legacy systems.
Future regions will follow in subsequent tranches, depending on when their open-access banking
regulations are complete. As Region 2 regulations are already clear, the projects for Region 2 can begin
as soon as there is capacity available in Tranche 1. As most of the work has already been done to
prepare for compliance in Region 1, the timescale for providing compliance is likely to be shorter in
Region 2 and subsequent regions. Figure 7.3 illustrates a high-level delivery plan showing tranches and
landing points for the programme.
Utilities maintenance and improvement programme
In this programme, the detailed delivery plan for the year focuses on allocating
resources to maximize resource utilization and minimize disruption to services during
delivery. Each tranche of delivery is scheduled over a year, coinciding with the release of
yearly funding. An outline plan for the delivery of subsequent tranches has been created.
Efficient
delivery
A key part of delivery planning is identifying the capabilities that will be delivered at the end of each
year; even though the programme uses yearly tranches of delivery, it is important to recognize what
capability will be delivered at the end of each tranche. Any projects planned for longer than 12 months are
broken down into further detail. This ensures that the specific capabilities which will be delivered during
the current tranche can be identified and that there is a clear landing point at the end of each year.
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Managing Successful Programmes
Tranche 2
Tranche 1
Interface
Interface Layer
layer
Compliance
compliance
Projects
projects
Interface
Interface
layer Layer New
expansion
Expansion
product
projects
Projects
development
Other work
Other work
Capability
Transition Outcomes
Interface
Interface Layer
layer
Compliance
compliance
Projects
projects
Chapter 7 – Structure
Interface
Interface
layer Layer New
expansion
Expansion
product
projects
Projects
development
Other work
Other work
Capability
Transition Outcomes
Landing point 1
Landing point 2
Region 1 complete
Region 2 complete
Figure 7.3 High-level delivery plan showing tranches and landing points for the bank programme
7.6
Multimodal delivery
Definitions
● Multimodal delivery The selection of project lifecycles and/or methods of delivering the work of a
programme that are appropriate to the task, the team, the individuals (including customers,
stakeholders, leaders, and workers), and the context.
● Iterative project lifecycle A project delivery mode that repeats aspects of the design or delivery with
the objective of managing any uncertainty of scope by allowing outputs to evolve as learning and
discovery take place.
The constituent parts of programmes, i.e. projects and other work, may use different modes of delivery within a
single programme and it is important to use the most appropriate modes for the situation. Selecting the most
appropriate modes of delivery depends on many factors, such as an organization’s culture, the type and
complexity of the work required to deliver the programme, and the people involved. Multimodal delivery uses
multiple ways of working, based on what is most appropriate for those delivering the work and on the work
itself. A single programme may incorporate a mixture of approaches to its component work, with projects using
iterative, linear, or hybrid lifecycles (see below) or continual improvement activities.
100
Structure
Agile ways of working adopt iterative project lifecycles. In such situations, scope and quality of outputs build
over time but are limited by defined and costed timeboxes. In an iterative lifecycle, time and cost are fixed
within each timebox, and scope and quality emerge. It is important to note that agile ways of working are not
defined solely by having an iterative lifecycle. Achieving the benefits of agile also relies on:
● collaboration (behaviours and the tools to facilitate collaborative behaviours if teams are not co-located)
● empowered teams who have the delegated authority to make decisions within the timebox
● customer focus (internal or external) and their expectations for quality
● a willingness to inspect and adapt to improve processes and outputs.
Definitions
a single pass through a set of distinct phases, completed sequentially.
● Hybrid project lifecycle A project delivery mode that combines a linear lifecycle for some phases or
activities with an iterative lifecycle for others.
Linear lifecycles are used where it is optimal to define scope and requirements and deliver these through
sequential phases, varying time and cost as necessary to deliver the outputs right first time. In a linear lifecycle
(often called a waterfall model), scope and quality are fixed, and time and cost are flexed accordingly.
Many projects benefit from a hybrid project lifecycle that uses an iterative lifecycle and agile ways of working in
some phases of an otherwise linear lifecycle. An example might be to design a solution in an agile way prior to
integrating that design into a larger solution that is delivered, tested, and commissioned sequentially. This is
increasingly seen as a pragmatic way of delivering projects in a collaborative yet controlled way. In programmes,
outputs progressed using agile ways of working during a tranche are likely to be combined with outputs created
using different ways of working to form the step-change in capability required to enable a stable landing point at
the end of each tranche/increment.
Definition: Continual improvement
A delivery mode used for improvement work that enables an organization to identify waste in a process or
system and work to eliminate this.
Not all work in a programme is project-based. To achieve outcomes of benefit, some processes or systems
within BAU will need to be adjusted in order to adopt new capabilities and embed outcomes to realize benefits.
There are a range of tools and techniques that may be deployed for this work, such as Lean Six Sigma.
Figure 7.4 illustrates a multimodal delivery.
Further information on multimodal delivery can be found in A Guide to AgileSHIFT.
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Chapter 7 – Structure
● Linear project lifecycle A project delivery mode that aims to complete the delivery of outputs within
Managing Successful Programmes
e
as
e
f
in
Te
e
f
in
Te
e
in
Te
e
in
De
ld
e
e
as
f
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Bu
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st
ld
e
e
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f
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e
e
e
Bu
i
st
ld
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as
Bu
i
st
Rel
Bu
i
st
ld
Te
Iterative
De
Linear
Plan
Develop
Plan
Bu
i
st
ld
Initiate
Te
Hybrid
e
Chapter 7 – Structure
Continual improvement
Close
Execute
Close
e
Rel
as
Execute
e
f
in
Initiate
De
Identify
opportunities
Review
results
Plan
improvements
Execute
change
Figure 7.4 Multimodal delivery
7.7
Dependencies
Planning and control also involve identifying and managing the programme’s dependencies.
Definition: Dependency
An activity, output, decision, or resource that is required to achieve an aspect of the programme.
There are three main types of dependency:
● Internal dependencies between projects in the programme
● Intra-organizational dependencies of the programme on other projects or programmes within a portfolio
● External dependencies either within or outside the organization, such as legislation and strategic decisions.
Programme dependency management focuses on key dependencies which will potentially affect the programme
as a whole. Showing these on a dependency network diagram can help to clarify these major interdependencies
102
Structure
National Rail network programme
Successful delivery of the National Rail network programme depends on the robust
integration and alignment of relevant organizations, teams, and individuals. There are a
range of internal, intra-organizational, and external dependencies to identify and manage:
Innovation
and growth
● Internal dependencies Within the transport department, there are vertical dependencies from the
project level to the programme level and from the department level to the programme level.
● Intra-organizational dependencies Within the transport department, there are horizontal
dependencies between the National Rail network programme and other programmes and operational
functions (e.g. those focused on the road network).
● External dependencies There are horizontal dependencies between the National Rail network
programme and all involved government departments and the private-sector investors.
● department-level strategies, policy, risks, operational capacity, and funding
● programme-level benefits, risks, capacity, landing points, and budgets
● project-level deliverables, benefit enablers, risks, resources, milestones, and costs.
Identifying and agreeing the ownership of dependencies by the governance boards, supporting offices,
and individuals in the programme organization structure helps to improve accountability and makes roles
and responsibilities more transparent.
and any combined dependencies (for example, to show where transition cannot start until a number of project
outputs are complete and combined to create a capability).
Shared resources also represent a set of dependencies and must be carefully managed and used efficiently. Typical
examples of resource-sharing include staff, infrastructure or facilities, information, and external service providers.
7.8
Benefits realization planning
Programmes exist to realize benefits for the investing organization(s); therefore it is vital that the intended
benefits included in the benefits map and defined in a benefit profile are actually realized.
The purpose of the benefits realization plan is to detail the scope and schedule of all benefits realization related
work. This includes scheduling organizational change activities, measuring and tracking the realization of
benefits, assurance to understand any barriers to benefits realization, and ensuring that corrective actions are
adopted where the organization is failing to embed outcomes and realize benefits as planned. The benefits
realization plan is also used to manage any dis-benefits associated with outcomes.
The benefits realization plan also includes timings for measuring baseline performance levels before transition.
This supports the work to realize and measure benefits after the capability has been transitioned and embedded
into operations.
Planning for benefits realization is conducted alongside planning for programme delivery, to ensure alignment
across the delivery of capabilities, management of transition and adoption, embedding of outcomes, and
measurement and tracking of benefits. These activities can be summarized as pre-transition, transition, and
post-transition. Drawing from the benefits map and benefit profiles, the benefits realization plan shows a
103
Chapter 7 – Structure
The specific internal, intra-organizational, and external dependencies are related, but not limited to:
Managing Successful Programmes
Tranche 2
Tranche 1
Benefits measurement
Benefit baseline
measurement
Pretransition
activities
Posttransition
activities
Transition
activities
Capabilities
Outcomes
of benefit
Embedded
change
Benefits measurement
Benefit baseline
measurement
Pretransition
activities
Capabilities
Benefit baseline
measurement
Posttransition
activities
Transition
activities
Outcomes
of benefit
Embedded
change
Pretransition
activities
Benefits measurement
Posttransition
activities
Transition
activities
Capabilities
Chapter 7 – Structure
Landing point 1
Outcomes
of benefit
Embedded
change
Landing point 2
Figure 7.5 An example of a benefits realization plan
complete view of the benefits, their dependencies, and the timeframes and resources required to track and
measure them. The benefits realization plan also identifies timings for benefit reviews, where benefits and their
realization can be formally assured. Figure 7.5 shows an example of a benefits realization plan.
In some cases, the benefits realization plan may be combined with the delivery plan to show all the work of the
programme on one timeline. In all cases, the benefits realization plan and delivery plan must work together to
ensure that the phasing of delivery of new capabilities is coordinated with the work to:
● prepare the business for change
● transition and adopt new capabilities
● embed outcomes of benefit.
Benefits realization does not take place only at the end of tranches of delivery work. Each tranche is designed
to make a step-change in capability, and benefits realization and work to ensure this happens take place across
the delivery of every tranche.
Charity organizational realignment programme
The programme manager, BCM, and programme office lead for the charity programme
Organizational
agree that a combined delivery and benefits realization plan would be the optimal way
realignment
forward, given the lack of programme experience in the organization (see Table 7.2). The
executive team, acting as the sponsoring group, have set a two-year time horizon for
changes. The programme team want to keep the sponsoring group actively engaged with the leadership
of the programme. They have, therefore, decided to plan in six-monthly tranches so the governance of
the programme fits in with the business planning and reporting cadences of the charity.
As a result, there are four landing points where the programme could be stopped, if necessary. Work to
be funded in a tranche that will not result in a new capability until a later tranche is shown as being
conducted at risk. More detailed delivery and benefits realization plans will be developed but this level of
detail is judged to be sufficient for the initial engagement of the sponsoring group.
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Structure
Table 7.2 Combined high-level delivery and benefits realization plan for the charity programme
Tranche 1
Projects and other work
Agree and implement digital fundraising technologies
Design and implement marketing campaigns
Compliance director hired (at risk)
Requirements and user stories for technology-enabled service delivery approved and number of sprints agreed (at risk)
Mapping of current business processes and associated internal controls (at risk)
Adjust performance scorecard to track all benefits from end of Tranche 1
Activity to embed outcomes
Train all relevant staff and volunteers in changed fundraising processes and technology
Landing point
Capability to increase fundraising embedded
Tranche 2
Projects and other work
Delivery of technology-enabled service delivery functionality using agile ways of working
Definition of future business processes and associated internal controls (at risk)
Chapter 7 – Structure
New organization structure agreed and communicated (at risk)
Change champions in place and trained
Activity to embed outcomes
Start using technology-enabled service delivery capabilities developed to date in selected regions
Landing point
Capability to reach more service users via technology-enabled service channels embedded in some regions
Tranche 3
Projects and other work
Delivery of technology-enabled service delivery functionality using agile ways of working
Recruitment and talent development to support delivery of new organization structure
Training for new business processes and internal controls developed
Internal programme capability sufficient to phase out contract staff
Activity to embed outcomes
Continue use of technology-enabled service delivery capabilities developed to date in all regions. Implement new
organization structure, processes, and internal controls
Landing point
New organization, processes, and internal controls in place. Technology-enabled service delivery embedded in all
regions
Tranche 4
Projects and other work
Potential additional delivery of technology-enabled service delivery functionality using agile ways of working
Share knowledge of new processes and internal controls across the charity; redesign as required
Investment in cross-charity events to share stories and ideas to build strong relationships between front-line and
support staff and volunteers
Embedding of outcomes
Support for new organization to optimize new processes and internal controls, and build commitment to new ways of
working
Landing point
All programme outcomes embedded, programme closed, and all accountabilities transitioned to BAU
105
Managing Successful Programmes
Utilities maintenance and improvement programme
In this programme, work is planned for completion over a five-year investment period,
with work scheduled around annual tranches of delivery coinciding with each year-end.
Planning benefits realization in this scenario includes defining the capabilities being
delivered each year; for example, the ability to:
Efficient
delivery
● schedule maintenance crews more efficiently
● group similar works together
and understanding how these capabilities contribute to outcomes of benefit. For example, reduced
disruption could lead to the ability to service 10% more maintenance works annually with current crews
and equipment.
Chapter 7 – Structure
There are separate delivery and benefits realization plans for this programme as some benefits will be
realized over a number of years while each tranche of delivery will focus on a single year.
7.9
Resourcing approach
The resourcing approach outlines the questions that the programme strategy must address as a minimum. Its
content will vary depending on the organizations investing in the programme and the mix of skills, facilities,
technology, and systems required by the programme.
The resourcing approach in the programme strategy answers the following questions:
● What will be the approach to procurement and supply chain management, taking into account multiple
modes of delivery and perhaps many organizations with different policies?
● What infrastructure will the programme need?
● What equipment and technology will be required for delivery?
● How will scarce resources, including infrastructure, equipment, and human resources, be shared between
the programme and its projects, and the wider organization? Where the programme is part of a wider
portfolio, portfolio standards may exist for resource forecasting and scheduling.
● What specialist skills and subject matter experts will be required, and how will these be sourced?
● How will the human resource requirements of the programme be managed?
● How will the balance between internal and external resources be controlled?
● How will the programme ensure that the resources in operational areas required for business change are
managed to embed outcomes that will create benefits?
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Structure
7.9.1
Procurement and supply chain management
The procurement of goods and services for programmes is a major contributor to success, to ensure that the
programme has the resources it needs to supplement staff, facilities, equipment, and systems in the investing
organization(s). It also ensures that the MSP principle of deploy diverse skills is upheld.
Deploying diverse skills requires establishing a balance between the use of external resources for additional
capacity or enhancing the collective capability of the team, and the investment in the skills of staff. The same
principle applies to other resources; for example, whether to lease facilities, equipment, and systems for the
short term or to purchase the asset for the long-term use of the organization.
The approach to procurement and supply chain management needs to consider:
● the benefits of building long-term partnerships with suppliers rather than short-term transactional
relationships
reimburses time and materials, or a fixed fee with milestone payments linked to deliverables)
● the need to spread risk by working with multiple suppliers.
In some programme environments, the language of commissioning is used to refer to the process by which
services are planned, purchased, and monitored. Depending on the programme, procurement and supply chain
specialists may be embedded in the programme office, or accessed from the relevant function as required.
Utilities maintenance and improvement programme
The focus of the programme is on the increasingly productive use of maintenance crews
and equipment, so that more maintenance works can be conducted with less disruption
and fewer electricity outages.
Efficient
delivery
The programme is part of the wider infrastructure portfolio. There may be other projects and
programmes in the overall portfolio needing to use the same staff and equipment. Taking a portfolio
approach may impact the staff and equipment available for the programme if resources are diverted to
other programmes in the infrastructure portfolio. This may mean that the efficiency programme will need
to increase its use of external contractors to carry out works (if this can be accommodated within the
annual budget). Anticipating this need, negotiating flexible supply contracts for labour and equipment is
key to success.
The portfolio office, which is providing programme office scheduling resources to the programme,
defines any scheduling constraints or changes to the programme required as a result of portfolio planning
and calls on the support of procurement and supply chain experts in the company to ensure that supply
contracts optimize risk and cost.
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Chapter 7 – Structure
● the impact of forms of contract on supplier management and cash flow (e.g. whether to have a contract that
Managing Successful Programmes
7.10
Documents to support the theme
The documents produced as records of application of the structure theme are shown in Table 7.3.
Table 7.3 Documents to support the structure theme
Document
Purpose
High-level content
Programme
strategy:
delivery
approach
To define how the
programme will be
structured to deliver
the capabilities needed
to achieve the desired
outcomes of benefit
Structure How the programme work will be structured and delivered, based on the
organizational environment, programme complexity, and availability of skills and resources
Delivery modes Ways of working most appropriate to the task, team, individuals, and
context. Modes of delivery to be used
Controlling projects and other work How projects and work on processes will be started,
controlled, and closed to maintain alignment with the target operating model
Delivery standards Delivery standards that are relevant to the programme
Chapter 7 – Structure
Dependencies How internal, intra-organizational, and external dependencies will be
defined and managed
Delivery plan
Benefits
realization plan
To schedule the
constituent projects
and other work of the
programme to show
their relative
timescales, resources,
and dependencies. The
plan covers the
programme as a whole
and the next tranche in
detail
Tranches Grouping of projects and other work into tranches with clear landing points and
sequencing of delivery
To detail the scope and
schedule for all
benefits realization
related work
Schedule of organizational change activities and other benefit-related work
Next tranche schedule Identifying dependencies, milestones, and key activities to track at
programme level
Resources Activities need to acquire and deploy people, equipment, and facilities to
support delivery
Transition Schedules for transitioning and adopting capability into operations
Risks and assurance Timing of impact of potential risks and associated assurance
activities
Measuring and tracking the realization of benefits, including establishing baselines
Assurance to understand any barriers to benefits realization
Corrective actions where the organization is failing to embed outcomes and realize benefits
as planned
Management of any dis-benefits associated with outcomes
Programme
strategy:
resourcing
approach
To define how the
programme will acquire
and manage the
resources required to
deliver the capabilities
Supply chain management Approach to procurement, contract, and supply chain
management
Infrastructure What the programme will need, including equipment and technology
Allocating scarce resources How scarce resources will be allocated and shared between
the programme, its projects, and the wider organization. This may involve complying with
portfolio-level standards for resource forecasting and scheduling
Sourcing specialist resources How specialist resources will be sourced
HR management How the HR requirements of the programme will be managed:
recruitment, performance management, grievances, disciplinaries, the balance between
internal and external resources, learning and development, and termination of contracts
Change recipients How the programme will work with people in operational areas that are
the recipients of change
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Structure
7.11
Focus of key roles for the theme
The areas of focus associated with the structure theme for the roles of sponsoring group members, SRO,
programme manager, BCM and programme office lead are shown in Table 7.4.
Table 7.4 Areas of focus for key roles associated with the structure theme
Role
Areas of focus
Sponsoring group members
Ensuring that the delivery and resourcing approaches are fit for purpose
Senior responsible owner (SRO)
Monitoring progress and direction of the programme at a strategic level
Maintaining sponsoring group support for the programme
Approving the documents associated with the theme
Programme manager
Designing the delivery plan (with the BCM)
Designing the benefits realization plan (with the programme manager)
Providing sufficient and appropriate operational resources to the programme
Ensuring that:
● transition is planned and will align with the required benefits realization
● changes are implemented into operational areas
● required performance levels for BAU work are maintained
● operational functions are adequately prepared and ready for change
● changes are embedded and sustained following transition
Programme office lead
Providing support for programme planning
Providing programme and project resources
109
Chapter 7 – Structure
Developing the resourcing and delivery approaches that will be included in the programme strategy
Business change manager
(BCM)
Managing Successful Programmes
Chapter 7 – Structure
110
CHAPTER 8
Knowledge
8
Knowledge
Figure 8.1 illustrates the knowledge theme as part of the MSP framework.
Plan
progressive
delivery
KN
S
OW
LED
GE
STR
U
U
CT
RE
TY
STI
Embed the
outcomes
JU
Evaluate
new
information
D
AM EA
BI L
GU
I
NCE
OY I
PL SK
DE SE
ER
DIV
LL
FICATI N
O
Deliver the
capabilities
Identify the
programme
Close the
programme
RATE
LABO
COL BOUNDARIES
SS
RO
AC
N
IG
ES
DE
CIS
IO
D
NS
Design the
outcomes
ASSURA
Chapter 8 – Knowledge
REALIZ
E
S
A
U
E
R
M
ABLE B
ENE
FIT
S
WITH LEAD
ING VALUE
R
PU
B D
RP
N
A
OS
E
Z
A
I
T
N
E
ION
C
GA
R
A
O
P
W
IT
H
ALIG N
W IT H P RIO RITIES
Figure 8.1 The knowledge theme as part of the MSP framework
8.1
Purpose
The purpose of the knowledge theme is to describe how programmes:
● acquire, curate, and use knowledge
● use knowledge and experience to learn lessons, and to build a culture and practice of continual improvement
● manage information to ensure its integrity, controlled access to the right versions, and data privacy.
112
Definition: Knowledge
An asset embedded tacitly in the minds of individuals or codified explicitly as information. Most knowledge
is tacit and only becomes explicit when there is an investment of effort to do so.
8.2
Key relationships with principles
The knowledge theme contributes to the adherence to MSP principles across the programme lifecycle. Key
relationships with the principles are summarized in Table 8.1.
Table 8.1 Key relationships between the knowledge theme and MSP principles
By …
Resulting in …
Lead with purpose
Supporting the curation and organization of
knowledge
Everyone being able to access the knowledge that
they need to do their best work
Learning and improvement as the programme
progresses
Collaborate across
boundaries
Providing everyone in the programme with
access to knowledge and information
Everyone being able to do their work supported by
the knowledge and information they need
Deal with ambiguity
Making knowledge as clear and accessible as
possible
Teams being able to adapt and learn from experience
Align with priorities
Supporting stakeholders to acquire the
knowledge and information they need to
understand priorities
Reduced re-work and waste as people are working
with current information
Deploy diverse skills
Supporting all stakeholders and team members
to gain access to the knowledge and information
they need to do their work
An efficient team of people from multiple
organizations
Realize measurable benefits
Ensuring that stakeholders can access details of
the benefits and understand how they are
measured
A focus on the primary purpose of the programme
Bring pace and value
Encouraging the learning of lessons and a
culture of continual improvement
Demonstrable added value from programme
management
8.3
Knowledge and learning approach
The knowledge and learning approach outlines the questions that the programme strategy must address as a
minimum.
The approach covers the organization and management of knowledge, as well as how people will learn lessons
from experience and improve as the programme runs. Its content will vary depending on the complexity of the
programme knowledge and the complexity of the programme’s organization structure. For example, accessing
appropriate knowledge across a programme comprised of multiple legal organizations is usually far more
difficult than accessing it in a single-organization programme. The ways of learning lessons can vary across
organizations too, so it is important to ensure that this is happening across the programme.
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Chapter 8 – Knowledge
The knowledge theme
applies the MSP principle
Managing Successful Programmes
The knowledge and learning approach in the programme strategy answers the following questions:
● What past knowledge does the programme need to draw on?
● What new knowledge is likely to be created during the programme, both tacit and explicit?
● How will explicit knowledge be captured, stored, curated, retrieved, and shared to support the achievement
of objectives?
● How will the programme encourage a culture of knowledge-sharing and reflection to identify lessons to
be learned?
● How will the programme encourage a culture of continual improvement based on embedding learning into
ways of working so lessons are actually learned?
● How will the programme share knowledge and learning with other parts of the investing organization(s)?
8.4
Knowledge management
Chapter 8 – Knowledge
When dealing with programme knowledge, there will be some knowledge that is explicit, which is easy to write
down and make accessible to others as information. Tacit knowledge, on the other hand, is the kind of
knowledge that is embedded in the experience of people within an organization and is often unwritten,
unspoken, and sometimes not consciously acknowledged. Tacit knowledge is therefore difficult to share with
other people in an explicit way. Despite tacit knowledge being less accessible, programmes rely on both the
explicit and tacit knowledge of stakeholders for success. Figure 8.2 illustrates both tacit and explicit knowledge.
Explicit knowledge
Captured information
• Data, information and facts
• Documents and files
• Models and metrics
Know-how embedded
in people and practices
•
•
•
•
•
•
Experience
Thinking
Habit
Competence and skills
Values and motives
Commitment
Tacit knowledge
Figure 8.2 Tacit and explicit knowledge
The approach to managing different types of knowledge varies. Explicit knowledge can be captured in writing
and stored in a well-designed programme repository as information. If the repository is curated well and data is
easy to find, then people are able to access that knowledge without needing help. Unfortunately, such
repositories are often full of information that people know is in there but cannot find. To avoid this, it is sensible
to design the repository at the start to suit the needs of the programme. The programme office take
responsibility for curating the information in the repository and ensuring its accessibility.
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Knowledge
Because tacit knowledge is less easily captured, the best way to pass knowledge on may well be to connect the
person who needs the knowledge with someone else who has it. In this case, team collaboration systems are
helpful as they enable people to connect and promote networking and sharing of skills. Building a visual map of
the people and expertise in the programme will make it easier to find colleagues who can share experiences and
help others.
Another helpful option is to build up communities of practice related to different areas of the programme.
Definition: Community of practice
A learning network of people who share a skill and who improve as they interact and learn from each other
on a regular basis.
Where it is possible to do so, it is good to consider the layout of people who are co-located in the same space.
Proximity of key staff to one another in the work environment can make informal sharing of tacit knowledge
more likely.
National Rail network programme
The range of specialist knowledge required to deliver the National Rail network
programme is vast. The cost and time to create all this knowledge is prohibitive.
Innovation
and growth
To support the objectives of the programme, the programme office is defining the
knowledge management service it will provide to the programme. Fortunately, there is considerable
existing knowledge to exploit. The programme is preceded by other domestic and international
transport programmes.
Explicit knowledge is captured in a range of relevant publications. The programme office is planning to:
● research good practice in the domestic and international rail marketplace (e.g. good practice related
to trackside rail traffic monitoring technologies and data analytics)
● search existing thought leadership publications and make that knowledge available.
Tacit knowledge related to transport industry cultures, organizations, business processes, people,
technology, tools, and techniques is derived from experienced staff and specialists who have come
from other programmes. The programme office is planning for:
● a number of communities of practice for learning (e.g. rail capacity monitoring and planning,
sustainable rail network design and technologies, strategic sourcing from and management of
regional operating companies, and rail infrastructure planning)
● a mandatory induction programme for new staff to capture and share common knowledge and to
identify lessons that can be formally learned through changed programme practices.
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Chapter 8 – Knowledge
Those involved in similar areas across projects within the programme, such as business analysis, might form a
group that meets regularly and helps members to connect. Regular community meetings, which include sharing
stories of what does and does not work, will foster learning between different projects, and across the
programme and the organization as a whole. Such sessions can also be facilitated with team members who are
located in different geographies and time zones.
Managing Successful Programmes
The culture of the organization will influence all parts of knowledge management. To get the best value from
knowledge, it is necessary to foster a culture where sharing knowledge is the accepted way to work. Such a
culture of sharing knowledge also helps with the accuracy of status reports. Where people are encouraged to be
open and honest, it is more likely that the programme board and sponsoring group will have the full and
accurate information they need to direct and lead the programme. This prevents situations where optimism
about the ability to recover leads to the status being reported as ‘on track’, when in reality there are underlying
issues that could be resolved if they were shared.
8.5
Ensuring lessons are learned
Definition: Lessons learned
Chapter 8 – Knowledge
Forms of new knowledge and/or understanding that arise from experience and which have been explicitly
learned by embedding them into ways of working.
An important part of the knowledge to be understood are the lessons that arise from doing the actual
programme work. Sometimes lessons arise from things going wrong, while others occur from things going well.
These lessons are invaluable when they are captured, communicated to those who would benefit from applying
them, and then put into practice through changes to processes, systems, or ways of working. Too often, lessons
are inappropriately entitled ‘lessons learned’ when they are not actually learned, but just noted, filed away, and
forgotten.
While some lessons learned come in the form of the relatively easy-to-capture explicit knowledge, others are
more nuanced tacit knowledge. One way to share a wider range of learning is to encourage communities of
practice of people facing similar challenges to be established across the programme.
Programmes need to build in time to allow individuals and groups to collaborate, reflect, and discuss learning,
not just at the end of projects and tranches, but regularly throughout the project and programme lifecycles to
allow adjustment and improvement.
A focus on collaboration in agile ways of working is evident through the use of retrospectives to access learning
and decide what to do with it. This is a specific feature of agile methods, but is good practice for all work.
Definition: Retrospective
A regular event that looks at how the process of doing work can be improved.
Retrospectives are sessions where people gather and explore what has worked well and what they wish had
been different. It is important to understand that asking ‘what went wrong’ tends to lead to defensiveness or
negativity and reduces the flow of ideas, so it is more effective to frame conversations in a positive way. The
outputs are then used to produce lessons for the rest of the project or programme and/or for the future. They
are captured and shared proactively with those elsewhere in the programme and organization who could benefit
116
Knowledge
from them. Sharing lessons by simply placing them in a repository rarely works as well as sharing them
creatively and in an engaging manner at community sessions. Storytelling and some game forms are
increasingly being used to help team members access and share knowledge and to think creatively about
improvement. Figure 8.3 shows the learning cycle.
Retrospective
Ne
w
Embedd
ed
in ways kno
of
wo w
r
ge
led ng
ki
ledge
ow
kn
Chapter 8 – Knowledge
Lessons
learned
Captured
lessons
App
li e d k n o w l e d g
e
Figure 8.3 The learning cycle
Bank compliance and adaptability programme
The bank programme relies on contractors to provide the specialist knowledge on
open-access banking compliance. It is a continual challenge to secure enough people
Effective
delivery
with this specialist knowledge. Because of the pressure to deliver and the ‘sellers’
market’ for such skills, contractors were leaving the programme without adequate time
for a handover to their colleagues. Upon investigation, this was found to be happening even when
contractors moved projects within the programme.
To learn from this lesson, the programme team designed a process of handover, which now applies
across the entire programme. They also negotiated a slightly longer notice period with contractors to
allow this to happen. In addition to a good handover, staff in the programme office are tasked with
ensuring that all work done is well-documented and that internal staff learn from the specialist contractors.
117
Managing Successful Programmes
8.6
Information approach
The information approach outlines the questions that the programme strategy must address as a minimum. It
explores how people will be able to access appropriate and up-to-date information in a timely way.
The information approach in the programme strategy answers the following questions:
● What is the information that the programme will create?
● Who will have access to what information?
● How will the status of information integrity be determined and ensured?
● What is the appropriate level of privacy for different types of information, and how will this be achieved?
● What controls will be used to ensure that people can access the most appropriate and up-to-date
information?
● What programme information needs to be retained beyond the life of the programme, and how will this
be managed?
Chapter 8 – Knowledge
8.7
Information management
Programmes create and use huge amounts of information. Information needs to be stored and managed in a
way that allows the right people (and only the right people) to access the right version of the information that
they need when they need it.
The three pillars of information security are:
● Confidentiality Only those who need to know can access the information
● Integrity Information is correct when it is accessed
● Availability It can be accessed by those who need it, when they need it. If it is not available when needed,
decisions may be made without the relevant knowledge.
Information can be in a physical form (documents, papers, books, and drawings) or it can be held as digital
data assets. Programmes need a controlled way of collecting, storing, organizing, disseminating, archiving, and
destroying information.
As noted in Portfolio, Programme and Project Offices (P3O), information management and knowledge
management are often confused in organizations. This is particularly the case when only explicit forms of
knowledge stored as information are acknowledged, such as peer-reviewed papers or findings from audits. One
way of understanding the difference is to consider knowledge management as an input to effective working and
learning in a programme, whereas information management is concerned with the control of the programme
artefacts. Knowledge that can be explicitly defined then becomes information.
Information management requires:
● a way of determining the integrity (quality and relevance) of the information before it is stored and when
it is accessed
● version control to make sure that people are working from the latest versions of the document, software,
drawing, etc.
● access control, to make sure that only the right people have access to the information, to safeguard privacy
and privileged information
118
Knowledge
● storage, so that information is accessible across locations, time zones, and organizational boundaries
● archiving, so that past information can be accessed when required.
Any storage of personal data must comply with the data and privacy regulations in force at the time. The
information security policies of the investing organization(s) will inform the information approach.
Utilities maintenance and improvement programme
The utilities programme generates a large amount of information including:
● maintenance schedules
Efficient
delivery
● resource availability and utilization forecasts
● details of equipment and assets, including serial numbers, drawings, and relationships
between assets
● condition and criticality assessment of each asset, linked to the maintenance schedule.
Chapter 8 – Knowledge
It is essential that the correct versions of these documents, schedules, and drawings are available and
used by planners and maintenance crews, otherwise works may be carried out in the wrong location or
may not be scheduled at the right time.
The infrastructure portfolio office, which is providing programme office services to the programme, is
responsible for facilitating the information management activities and consolidating project information
within the programme. This also includes taking responsibility for configuration and change control
across all the programmes in the portfolio.
8.8
Documents to support the theme
The documents produced as records of application of the knowledge theme are shown in Table 8.2.
Table 8.2 Documents to support the knowledge theme
Document
Purpose
High-level content
Programme
strategy:
knowledge and
learning
approach
To define how
knowledge and
learning will be
managed
across the
programme
Past knowledge What past knowledge the programme will draw on
New knowledge Knowledge that is likely to be created during the programme, both tacit and explicit
Explicit knowledge How explicit knowledge will be captured as information and stored, curated,
retrieved, and shared to support the achievement of objectives
Knowledge-sharing How the programme will encourage a culture of knowledge-sharing and
reflection to identify lessons to be learned, including across other parts of the investing
organization(s)
Lessons learned How the programme will encourage a culture of continual improvement based on
embedding learning into ways of working so lessons are actually learned
Programme
strategy:
information
approach
To define how
information
will be
managed
across the
programme
What information The information that the programme will create
Access Who will have access to what information
Integrity How the status of information integrity will be determined and ensured
Privacy The appropriate level of privacy for different types of information, and how this will be achieved
Version control The controls to be used to ensure that people access the most appropriate and
up-to-date information
Retention What programme information will need to be retained beyond the life of the programme,
and how this will be managed
119
Managing Successful Programmes
8.9
Focus of key roles for the theme
The areas of focus associated with the knowledge theme for the roles of sponsoring group members, SRO,
programme manager, BCM, and programme office lead are shown in Table 8.3.
Table 8.3 Areas of focus for key roles associated with the knowledge theme
Role
Areas of focus
Sponsoring group members
Ensuring that the knowledge and learning, and information approaches are fit for purpose
Senior responsible owner
(SRO)
Agreeing the approaches for the management of knowledge and learning, and information of the
programme with the sponsoring group and ensuring that these are documented in the programme
strategy
Programme manager
Developing the knowledge and learning, and information sections of the programme strategy, and
ensuring that they are applied
With the BCM, fostering a culture of knowledge-sharing, learning, and reflection across the programme
Ensuring that all statutory and organizational requirements regarding information, such as privacy, are
upheld
Chapter 8 – Knowledge
Business change manager
(BCM)
Providing sufficient and appropriate operational resources to the programme for knowledge, learning, and
information work
With the programme manager, fostering a culture of knowledge-sharing, learning, and reflection across
the programme
Programme office lead
Providing support for knowledge, learning, and information work on the programme (e.g. facilitation of
learning sessions, training for communities of practice, and administration to manage knowledge and
information systems)
Curation of organizational lessons learned, and advice on appropriate programme knowledge repositories
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Assurance
9
Assurance
Figure 9.1 shows the assurance theme as part of the MSP framework.
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Figure 9.1 The assurance theme as part of the MSP framework
9.1
Purpose
The purpose of the assurance theme is to describe:
● assurance roles and responsibilities, related to the three lines of defence
● the assurance approach and how it supports governance
● how assurance activities are planned.
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Definition: Assurance
A discipline that provides transparency and confidence to the sponsoring group that the programme will
meet its objectives by focusing activities on the most risky aspects of the programme.
9.2
Key relationships with principles
The assurance theme contributes to the adherence to MSP principles across the programme lifecycle. Key
relationships with the principles are summarized in Table 9.1.
Table 9.1 Key relationships between the assurance theme and MSP principles
By …
Resulting in …
Lead with purpose
Designing the three lines of defence to support
leadership decision-making
Increased focus of the leadership on those matters in
their sphere of influence and responsibility
Collaborate across
boundaries
Developing a unified view of assurance for the
programme
Common adoption of methods, processes, tools, and
techniques to aid efficiency and understanding
Deal with ambiguity
Adopting a risk-based approach to assurance
that focuses resources on the areas where
greater certainty would be valuable
Better identification, analysis, and response to risks
and emerging change
Align with priorities
Prioritizing assurance observations and action
plans to reflect risks
The ability to prioritize programme work and align it
with ongoing operations
Deploy diverse skills
Allocating the right resources to assurance
activities, balancing independence, specialist
knowledge, and cost
Cost-effective and efficient provision of the
transparency and confidence required by the
sponsoring group
Realize measurable benefits
Focusing assurance on the risks affecting
outcomes of benefit over time
Better information on which to base decisions to
secure outcomes of benefit
Bring pace and value
Planning assurance that is timely and
appropriate
Leaders taking actions earlier to prevent issues that
slow delivery
9.3
Assurance approach
The assurance approach outlines the questions that the programme strategy must address as a minimum. Its
content will vary depending on the nature of the programme and the organizations involved. In MSP, it is
assumed that the approach adopted will address the required corporate assurance and controls of all the
investing organizations.
The assurance approach in the programme strategy answers the following questions:
● What are the requirements for assurance (if any) flowing from the corporate governance of the investing
organization(s)?
● What are the assurance accountabilities, responsibilities, and delegated levels of authority for the
programme governance boards, supporting offices, and individual roles?
123
Chapter 9 – Assurance
The assurance theme
applies the MSP principle:
Managing Successful Programmes
● How will the programme governance boards and supporting offices work with assurance providers outside
the programme organization structure (including, but not limited to, any outsourced internal audit function)?
● What assurance activities will be provided by each line of defence?
9.4
Assurance at multiple levels
Assurance is required whenever authority or responsibility is delegated to another individual, team, or
organization; for example, when:
● funding is granted to a programme from the corporate organization
● a programme sponsoring group delegates responsibilities to a programme manager via the SRO (individual)
● testing is assigned to a team of specialists (team)
● a systems integrator is contracted to design and implement an IT system (organization).
Lines of defence address the delegation of authority and responsibility from programme governance boards
to other teams and individuals. There are three levels of delegated authority that define the three associated
lines of defence.
Chapter 9 – Assurance
Definition: Three lines of defence
The provision of three levels of assurance in line with the levels of delegated authority within the
programme’s organization.
Figure 9.2 illustrates assurance across the three lines of defence.
Corporate governing body (and audit committee)
Programme organization
Reports to
Reports to
Operations senior manager
Risk insight
and advice
Reports to
Risk insight
and advice
Risk decisions
First line of defence
• Owns project and operation-level
risk controls,measures and monitoring
• Responsible for operation- and
project-level risks delegated from
project management
Sponsoring group
Programme board
Risk insight
and advice
Risk decisions
Second line of defence
• Owns programme-level risk controls,
measures, and monitoring
• Responsible for programme-level risks
escalated from project management
and delegated from corporate
management
Executive
management
Risk insight
and advice
Risk
decisions
Risk
decisions
Third line of defence
• Owns corporate-level risk controls
measures, and monitoring
• Responsible for corporate-level risks
escalated from programme
management
Responsible for project- and operation-level risk response
Independent from project- and operation-level risk response
Figure 9.2 Assurance across the three lines of defence
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Assurance
9.4.1
First line of defence
The first line of defence owns project and operation-level risk controls, measures, and monitoring. It:
● monitors the processes and progress of projects and other work in the programme
● integrates assurance from relevant projects, operational functions, and service areas
● reports findings (via the operations senior manager) to the programme board.
Some programme boards set tolerance levels so that reporting is by exception and only required if there is
evidence that tolerances are being threatened or exceeded.
Quality management activities performed by projects to validate that outputs meet requirements may form part
of the scope for the first line of defence in some programmes.
9.4.2
Second line of defence
The second line of defence owns programme-level risk controls, measures, and monitoring. It:
● receives inputs from the first line of defence
● commissions assurance in the first line of defence
Chapter 9 – Assurance
● monitors the effectiveness of programme-level processes and progress
● integrates assurance from relevant programmes, corporate functions, and outsourced functions
● reports findings (via the programme board) to the sponsoring group.
Some sponsoring groups set tolerance levels so that reporting is by exception and only required if there is
evidence that tolerances are being threatened or exceeded.
9.4.3
Third line of defence
The third line of defence owns corporate-level risk controls, measures, and monitoring. It:
● receives inputs from the second line of defence
● commissions assurance in the second line of defence, which may in turn have been requested by corporate
management or government departments in the case of public-sector investments
● provides an assurance focus on the business case of the programme
● monitors and integrates assurance of the programme with corporate risk and assurance functions
● reports findings (via the sponsoring group and executive management) to the corporate governance of the
investing organization(s).
The specific roles and responsibilities of the three lines of defence will vary depending on the nature of the
programme and its governance and so are specified in the assurance approach in the programme strategy.
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National Rail network programme
The National Rail network programme is delivered by multiple organizations, with each
contributing to the accountabilities and delegated levels of authority within the three
lines of defence. The three lines of defence are designed in accordance with the
governance and risk profile of the programme.
Innovation
and growth
The primary investing organization is the government treasury. The involved organizations provide
assurance to the government treasury through the SRO and the sponsoring group. The transport
department has overall accountability for the delivery of the National Rail network programme, but
because some accountabilities are delegated to other organizations, the transport department also has
an integration role. The three lines of defence are as follows:
● First line of defence:
● Operational senior management in each organization, including contracted vendors, provide
risk-based assurance for the relevant projects, operational functions, and service accountabilities
in their organizations.
● Second line of defence:
Chapter 9 – Assurance
● The programme boards provide risk-based assurance for the programme-level accountabilities in
their organizations.
● The programme boards work together to ensure that there are no assurance gaps between the
interdependent aspects of the programmes in their organizations.
● Third line of defence:
● The sponsors of the programmes in each organization provide risk-based assurance for the
department-level accountabilities of their organizations.
● The sponsors of the regional operating company and contracted vendor provide department-level
assurance to the government department sponsors.
● The government department sponsors provide risk-based assurance to the government treasury.
● The National Rail network programme sponsors work together to ensure that there are no
assurance gaps between the interdependent aspects of the programmes in their organizations.
The Office of the Auditor General operates in support of the government and government treasury. Given
the distributed nature of assurance across many organizations, the Office of the Auditor General provides
an additional level of assurance for high-risk areas across all involved organizations. As some risks (i.e.
from other policy areas) may be owned outside of the programme governance structure, additional
assurance may be required by departmental executive management directly to government.
Figure 9.3 illustrates three lines of defence designed in accordance with the programme.
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Assurance
Government treasury
NRN = National Rail network
Transport department
Operations senior
management
Government
NRN programme
Sponsoring group
Transport department
NRN programme board
Transport department
Road and other programme boards
Transport
department
Sponsor
Transport
department
Executive
management
Other departments
Operations senior
management
Other department
Programme board
Other department
Sponsor
Other department
Executive
management
Regional operating
companies
Operations senior
management
Regional operating
company
Programme board
Regional operating
company
Sponsor
Rail operating
company
Executive
management
Contracted vendor
Operations senior
management
Contracted vendor
Programme board
Contracted vendor
Sponsor
Contracted
vendor
Executive
management
First line of defence
Second line of defence
Chapter 9 – Assurance
Third line of defence
Figure 9.3 Three lines of defence for the National Rail network programme
9.5
Assurance planning
Assurance planning helps programme leaders to:
● ensure that the risks facing the programme have been identified and are being managed well
● ensure that they are receiving quality (timely, accurate, and complete) information regarding the overall risk
level that the programme is facing
● understand which programme controls are working well and which are not
● identify whether good programme management practice is being adopted
● understand the actual or potential impacts of issues and risks so they can consider these in
decision-making.
The purpose of the assurance plan is to detail the scope and timing of the assurance activities that will be used
to provide transparency and confidence to the sponsoring group that the programme is on track to deliver the
desired outcomes of benefit. The assurance plan also identifies the activities that are focused on programme
risks. The focus might be on a narrow set of risks or, if the plan is comprehensive, the assurance activities
might consider a wide range or risks.
The assurance plan specifies:
● the nature of the assurance activities to be conducted
● the timing and resourcing of the assurance activities
● any guidance on how to carry out each assurance activity.
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9.5.1
Nature of the assurance activities
Assurance activities may be motivated by a range of situations. Examples of assurance activities are shown in
Table 9.2, organized by the driver for the assurance taking place.
Table 9.2 Examples of assurance activities
Drivers for assurance
Types of assurance activity
Key decisions
Funding approvals
End-of-tranche reviews
Benefit reviews
Gate reviews
Progress monitoring
Project exception reports
Maturity assessments (e.g. using P3M3)
Health checks
Real-time advice
Advice provided directly to the SRO after observing a programme board meeting
Advice to the programme manager on aspects of the team
Continuous monitoring
Monitoring of key processes such as access controls on systems or buildings
Common causes of risk or
an emerging risk
Review of common risk areas related to programme management (e.g. programme office, service design,
or stakeholder engagement) or to the specifics of the programme (e.g. testing or operational readiness)
Chapter 9 – Assurance
Assessment of the impact of an emerging risk
Capability assessments
Culture and organizational learning reviews
Portfolio and capacity management
Regulatory compliance
Leadership
The assurance plan identifies assurance activities throughout the life of the programme. Assurance
investigations that are conducted when the programme is being planned rely on the experience of reviewers to
foreshadow risks and implications for the future. Assurance investigations that are conducted during
implementation rely on uncovering the actual risks the programme is facing in the present. Assurance
investigations that are conducted after the transition of new capabilities to the business rely on observing
compliance to standards, procedures, and practices executed in the past. Appropriate specialist knowledge and
skills are required in each scenario.
9.5.2
Timing and resourcing of assurance activity
There are many assurance activities that are built into the normal rhythm of the delivery plan; for example,
regular reviews prior to reporting to the programme board or end-of-tranche reviews. Other assurance activities
may be planned to coincide with specific events; for example, prior to the transition of a new capability to the
business or prior to cut-over activities for a new system.
Some assurance activities will not be planned in advance, emerging as the programme progresses and
new information materializes; for example, investigating the impact of an emerging risk on the viability of
the programme.
All assurance activities consume time and resources, for the area being reviewed as well as the reviewers. The
assurance plan needs to be coordinated with the other programme plans (delivery plan, benefits realization
plan, financial plan, and stakeholder engagement and communications plan) to ensure that the investment in
assurance is justified, i.e. the transparency and confidence brought by the assurance activity outweighs the
impact on the team, pace, and costs. This balance also needs to take into account the time to put corrective
actions in place where the assurance activity identifies priorities for improvement.
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Assurance
It is often a great source of comfort to the sponsoring group to commission programme assurance from external
consultancies as they tend to have a wide range of experience across multiple organizations doing similar sorts
of work. The confidence gained and the costs of such exercises need to be balanced against:
● the pressure on the organization as they entertain external consultants alongside their daily work
● the implied lack of confidence that senior leaders have in their team if they are having to seek external
validation of their work.
9.5.3
How to plan successful assurance activities
Each assurance activity needs to consider the five factors required for successful assurance: independence,
accountability, coordination, proportionality, and risk appetite.
Table 9.3 Success factors for assurance
In practice, this means that the assurance is:
Conducted by people who are not carrying out the work being assured in order to provide an objective
assessment and conclusions based on evidence and in accordance with good practice. There are degrees of
independence (e.g. investigators could be internal peers or external contractors)
Accountability
Driven and supported by the sponsoring group, owned by the SRO, and its findings are reported through to
governance boards
Coordination
Visible and planned in collaboration with other programme work to ensure that work is conducted in the best
way and at the right time. It needs to begin as early as possible and be updated as the programme progresses
and the risk profile of the programme changes
Proportionality
Conducted to maximize the impact and minimize the level of required effort by tailoring the assurance to the
context of the programme and the needs of stakeholders
Risk appetite
Focused on areas of greatest risk to benefits and outcomes, and invests more effort where the risk is greater
and the appetite for risk (variance from plan) is lower
It is good practice for specific assurance activities to be commissioned by the relevant governance board with a
clear brief, predefining relevant standards and good practice from the industry, the organization, or the
investigators.
Each assurance activity will generally follow these steps:
● Prepare
● Define the investigation objectives, e.g. audit or advisory.
● Define the drivers (e.g. key decision, emerging risk, or capability assessment).
● Define the risks to investigate.
● Find previous investigations that identified relevant risks.
● Select and appoint specialists for the assurance team.
● Define investigation methods and procedures to apply the method.
● Identify relevant good practice to use as a point of reference.
● Set a budget and timeline.
● Confirm objectives, scope, and budget with the SRO.
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Success factors
Independence
Managing Successful Programmes
● Gather evidence
● Identify information requirements (e.g. indicators, trends, changes, adherence to protocols).
● Find relevant advice from previous assurance investigations.
● Gather new information from stakeholders (via documents, interviews, workshops, or real-time
observation).
● Analyse information according to good practice and extract relevant observations.
● Identify findings.
● Validate findings.
● Report
● Develop conclusions based on findings.
● Develop corrective actions (compliance/audit) or advice (advisory) for management.
● Validate actions with stakeholders.
● Report to management and confirm actions.
● Follow-up
● Record corrective actions and advice.
● Monitor whether corrective actions or advice have been enacted.
Chapter 9 – Assurance
In a programme environment, the context and state of the programme will be in continual flux. It is important
that assurance is conducted efficiently and quickly so that management can respond to observations in a timely
way. If adopting agile ways of working for project work, the preparation, execution, and reporting work can be
organized into, for example, a small number of two-week sprints that build upon one another. Each sprint would
include some evidence-gathering in order to narrow the focus of the work onto a smaller set of risks and issues,
with the final sprint focusing on validation and reporting of key observation and conclusions.
Bank compliance and adaptability programme
In the bank programme, the chief risk officer remains concerned about providing
assurance to the board that establishing compliance with open-access banking
regulations does not render the bank unable to prevent money laundering and fraud.
Effective
delivery
The programme manager asks the programme office to hire a team of independent contractors who are
specialists in the assurance of banking systems. They are asked to stress-test the new capabilities and
conduct a mock audit to try to ‘break the system’ and provide assurance that the delivered capability is
within the bank’s corporate appetite for risk to reputation. They will also check compliance with the new
regulations on open-access banking, plus existing anti-money laundering and anti-fraud regulations.
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National Rail network programme
The National Rail network programme is a new programme to be delivered by multiple
organizations over a number of years. The programme assurance plan provides a broad
Innovation
and growth
view of the assurance activities for the entire duration of the programme and a detailed
view of the assurance activities in the near term, e.g. the current year. The plan is
refreshed on a quarterly basis to reflect changes to the risk profile of the National Rail network
programme.
The programme assurance plan has the following distinctive aspects:
● Independence Funding is granted from the government treasury to multiple government departments
that are not directly accountable to one another and for this reason, the Office of the Auditor General
provides independent assurance over these government departments.
● Accountability Ownership of the assurance activities coincides with the uniquely delegated
accountabilities made to the involved organizations, including government departments, regional
operating companies, and contracted vendors.
● Coordination The design of the programme office includes an assurance management service that
Chapter 9 – Assurance
coordinates the assurance activities across all involved organizations on behalf of the programme
board and sponsoring group.
● Proportionality Given that the level of risk (i.e. investment) is high, the number of assurance
activities is expected to be high and cost estimates for the programme need to take this effort into
consideration.
● Risk appetite The expected programme benefits (e.g. efficient use of capacity, increased capacity,
sustainability, passenger experience, etc.), the metrics, and the target measures are unclear, meaning
the type of assurance activities (assurance plan) will need to be refined as the appetite for risk is
defined and documented in the programme strategy.
9.6
Documents to support the theme
The documents produced as records of application of the assurance theme are shown in Table 9.4.
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Managing Successful Programmes
Table 9.4 Documents to support the assurance theme
Document
Purpose
High-level content
Programme
strategy: assurance
approach
To define how assurance
will be managed across
the programme
Corporate governance requirements The requirements for assurance (if any)
flowing from corporate governance of the investing organization(s)
Delegated authorities The assurance accountabilities, responsibilities, and
delegated authorities for programme governance boards, supporting offices, and
individual roles
Working with partners outside the programme How the programme governance
boards and supporting offices will work with equivalent structures that exist outside
the programme organization structure, including partner organizations and in the
permanent organization
First line of defence The assurance activities provided by the first line of defence
Second line of defence The assurance activities provided by the second line of
defence
Third line of defence the assurance activities provided by the third line of defence
Assurance plan
Chapter 9 – Assurance
9.7
To detail the scope and
timing of the assurance
activities that will be used
to provide transparency
and confidence to the
sponsoring group that the
programme is on track to
deliver the desired
outcomes of benefit
Risk-based focus The assurance plan identifies assurance activities focused on
programme risks
Types of assurance activity The types of assurance that will be provided
Timing When the assurance activities will take place
Resourcing The resources that will be used for assurance activities (people and facilities)
Methods/guidance Any guidance on how to carry out each assurance activity
Focus of key roles for the theme
The areas of focus associated with the assurance theme for the roles of sponsoring group members, SRO,
programme manager, BCM, and programme office lead are shown in Table 9.5.
Table 9.5 Areas of focus for key roles associated with the assurance theme
Role
Areas of focus
Sponsoring group
members
Ensuring the assurance approach is fit for purpose
Senior responsible
owner (SRO)
Agreeing the approaches for the management of assurance of the programme with the sponsoring group and
ensuring these are documented in the programme strategy
Programme
manager
Developing the assurance approach in the programme strategy and ensuring it is applied
Commissioning assurance activities
Developing the assurance plan
Supporting assurance activities
Ensuring observations and recommendations are fed into decision-making processes (see Chapter 10)
Helping to implement assurance investigation recommendations accepted by the sponsoring group
Business change
manager (BCM)
Supporting assurance activities
Programme office
lead
Supporting the regular monitoring and review of progress
Helping to implement assurance investigation recommendations accepted by the sponsoring group
Establishing the methods and tools for each assurance activity
Securing assurance specialists for each commissioned activity
Coordinating the planning, execution, and closure of assurance activities
Providing information to support the assurance activities
Potentially conducting some assurance activities on behalf of the programme board
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CHAPTER 10
Decisions
10
Decisions
Figure 10.1 illustrates the decisions theme as part of the MSP framework.
Plan
progressive
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KN
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D
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O
Deliver the
capabilities
Identify the
programme
Close the
programme
RATE
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Design the
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Chapter 10 – Decisions
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Figure 10.1 The decisions theme as part of the MSP framework
10.1
Purpose
The purpose of the decisions theme is to describe:
● how programmes make decisions at various points across the programme lifecycle, whether those
decisions be related to resolving issues, responding to risks, or any other choice requiring a considered
and governed approach.
● the prerequisites for effective decision-making within programmes.
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10.2
Key relationships with principles
The decisions theme contributes to the adherence to MSP principles across the programme lifecycle. Key
relationships with the principles are summarized in Table 10.1.
Table 10.1 Key relationships between the decisions theme and MSP principles
By …
Resulting in …
Lead with purpose
Gathering, analysing, and presenting decision-ready
information, and by communicating the rationale that
underpins decisions
Focus, purpose, and commitment to action
Collaborate across
boundaries
Ensuring approaches used to make decisions in the
light of new information can work across multiorganizational governance
Quicker decisions and greater alignment
Deal with ambiguity
Explicitly considering the upside and downside
impacts of decisions
Keeping the risk profile within defined
tolerances
Align with priorities
Reporting both historic performance and emerging
trends
Decisions about priorities being made using the
best possible information at the time
Deploy diverse skills
Analysing data to forecast the impact on the capacity
and capability of the investing organization(s) to
deliver the planned outcomes of benefit
The need for new/different/more skills becoming
clear
Realize measurable benefits
Keeping the decision-making focus at programme
level, i.e. on the realization of the outcomes of benefit
Focus and no distraction from the primary
purpose of the investment
Bring pace and value
Working within clear delegated limits of authority and
only escalating decisions when needed
Timely decisions that keep things moving and
empower the team
10.3
Decision-making approach
The decision-making approach outlines the questions that the programme strategy must address as a minimum.
Its content will vary depending on the nature of the programme and the organizations involved.
The decision-making approach in the programme strategy answers the following questions:
● What are the decision points for the programme, both planned (e.g. an end-of-tranche review) and ad-hoc
(e.g. a significant change request or emergent change in the programme environment)?
● What are the decision criteria that will be used to report data, analyse information, and make
recommendations?
● How do decision criteria vary between those at the programme level and those for the constituent projects
and other work in the programme?
● What are the criteria for escalation and delegation of information between governance boards?
● What reports are provided to decision-makers with what content and at what frequency?
● How are decisions documented and communicated?
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Chapter 10 – Decisions
The decisions theme
applies the MSP principle:
Managing Successful Programmes
Definition: Decision point
An event or occurrence that triggers the need for programme governance to make decisions about the future
of the programme.
Decisions happen many times during the programme. Issues and risks require particular approaches to
decision-making, and separate registers are maintained for each of them (see sections 10.4 and 10.5). For
other decisions made by the sponsoring group or programme board (such as whether to approve the business
case) a decision register is used. The purpose of the decision register is to record decisions made by each
governance board, providing an audit trail of decisions and their underpinning rationales.
Figure 10.2 illustrates the layers of decision-making.
Executive management
Programme
mandate
Organizational
objectives
Chapter 10 – Decisions
Sponsoring group
Benefit profiles
Benefits
Programme board
Target
operating model
Capabilities
and outcomes
Programme manager
Delivery plan
Outputs
Figure 10.2 Layers of decision-making
10.4
Issue resolution approach
The issue resolution approach outlines the questions that the programme strategy must address as a minimum.
Its content will vary depending on the nature of the programme and the organizations involved. In MSP,
however, the change control procedure will be included as part of the issue resolution approach (consistent with
the PRINCE2 approach; see Managing Successful Projects with PRINCE2).
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Decisions
The issue resolution approach in the programme strategy answers the following questions:
● What is the process for allocating issues to owners?
● What is the delegated authority to owners of issues?
● How are change requests logged and processed?
● What is the governance for reviewing change impact analysis and making decisions?
● How will the links between the issue resolution approach and risk response approach be established (e.g.
when do realized risks become issues, or issues become causes of risks)?
● What reports are provided to decision-makers with what content and at what frequency?
Definitions
● Issue An unplanned event that has occurred and requires management action. It could be a problem,
query, change request, or a risk that has occurred.
● Issue owner The person who is assigned to take responsibility for resolving the issue to the satisfaction
of the programme’s governance boards.
10.5
Risk response approach
The risk response approach outlines the questions that the programme strategy must address as a minimum.
Its content will vary depending on the nature of the programme and the organizations involved. In MSP,
however, the approach adopted will accommodate any uncertainties that would have a beneficial impact on
programme objectives if they occur (upside opportunities) and those that would have a detrimental impact
(downside threats).
The risk response approach in the programme strategy answers the following questions:
● What is the process for allocating risks to owners?
● What is the delegated authority to owners of risks?
● What guidance is provided to risk owners to justify any additional investment in proactive responses to risk
that are in line with risk appetite?
For example, the tolerance for impacts on safety performance is likely to be zero (or ‘as low as reasonably
practicable’) whereas the tolerance for impacts on programme costs may be ±10% of the budget for the
tranche.
● What is the governance for reviewing and approving risk response plans, both proactive and reactive/
contingent response plans?
● How will the links between the issue resolution approach and risk response approach be established (e.g.
when do realized risks become issues, or issues become causes of risks)?
● What reports are provided to decision-makers with what content and with what frequency?
Risk responses are recorded in the risk register (see Chapter 5).
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Chapter 10 – Decisions
Issues are recorded in the issue register which may be a document or database. The purpose of the issue
register is to record issues and the impact on objectives if not managed; document the issue owner with
responsibility for resolution; and track the resolution of the issue.
Managing Successful Programmes
Definition: Risk owner
The person who is assigned to take responsibility for responding to a risk to the satisfaction of the
programme’s governance boards.
10.5.1
Generic responses to threats and opportunities
Programme risks are uncertainties that would affect one or more of the outcomes of benefit of the programme.
Some of those risks will have an exposure that is tolerable for the sponsoring group and the risk will be
accepted (for now) and monitored, perhaps with a contingent plan being put in place (what we will do if …).
Other risks will have an exposure that would be intolerable for the sponsoring group. They would therefore see
value in investing additional time and resources now in order to increase certainty, either by making an
opportunity more likely to happen, or a threat less likely to happen. The costs of implementing a risk response
must be justified, i.e. the increase in certainty must have a value greater than the time and money required to
implement the response effectively.
The range of response options are described in Table 10.2.
Chapter 10 – Decisions
Table 10.2 Response options for threats and opportunities
Response options
Use
Avoid a threat
This option is about making the uncertain situation certain by removing the risk. This can often be achieved by
removing the cause of a threat, or by implementing the cause of an opportunity. This option may be adopted at
no extra cost by changing the way the work is planned. More often though, costs will be incurred in order to
remove all residual risk for threats and opportunities. Where costs are incurred, these must be justified, i.e.
the cost of the response must be warranted to make the situation certain.
Exploit an opportunity
Reduce a threat
Enhance an
opportunity
This option chooses definite action now to change the probability and/or the impact of the risk. The term
‘mitigate’ is relevant when discussing reduction of a threat, i.e. making the threat less likely to occur and/or
reducing the impact if it did. Enhancing an opportunity is the reverse process, i.e. making the opportunity
more likely to occur and/or increasing the impact if it did. Again, because this option commits the organization
to costs for reduction/enhancement now, response costs must be justified in terms of the change to residual
risk.
Transfer the risk
(threat or opportunity)
Transfer is an option that aims to pass part of the risk to a third party. Insurance is the classic form of transfer,
where the insurer picks up the risk cost, but where the insured retains the impact on other objectives, such as
time delay. Transfer can apply to opportunities, where a third party gains a cost benefit, but the primary
risk-taker gains another benefit, but this is not a commonly used option, whereas transfer of threats is
commonly used. Again, the cost of transference must be justified in terms of the change to residual risk: is the
premium you pay worth it? It is important to note that some elements of risk cannot be transferred, although
an organization may choose to delegate the management of the risks to a third party.
Accept the risk
The ‘accept’ option means that the organization ‘takes the chance’ that the risk will occur, with its full impact
if it did. There is no change to residual risk with the accept option, but neither are any costs incurred now to
manage the risk, or to prepare to manage the risk in future. An example would be the risk to profitability as a
result of currency fluctuations. An organization may decide to take a chance and not engage in any hedging or
other provision to protect margins from wide variation in rates. This option would not be appropriate if the risk
exposure exceeded the risk tolerance threshold for the organizational activity in question. Note that in a case
such as currency fluctuations where the impact could be positive or negative, this is actually two risks,
because a risk is the relationship between the uncertain event and the impact of that event occurring. There is
a risk leading to loss and a risk leading to gain. Framing the uncertainty as two risks allows for different
responses to each part.
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Decisions
Response options
Use
Prepare contingent
plans
This option involves preparing plans now, but not taking action now. Most usually associated with the accept
option, preparing contingent plans in this instance is saying: ‘We will accept the risk for now, but we will make
a plan for what we will do if the situation changes.’ This option applies equally to other responses and is often
refer to as a ‘fallback’ plan, i.e. what we will do if the original response does not work. Fallback plans apply to
all other strategies, even avoiding a threat and exploiting an opportunity, because the plan to avoid and/or
exploit may not be successful despite good intentions.
This option is important because it builds in future managerial flexibility for a smaller committed cost than
investing in more proactive strategies. This does not mean that investing now to respond to a risk is wrong,
but such investments do need to be cost-justified, as previously mentioned.
10.6
Data-gathering and reporting
To make relevant and timely decisions as part of programme governance, decision-makers need access to
relevant and timely data about performance to date and/or things that have happened, and emerging trends
about the future and/or things that might happen.
10.6.1
Looking back
The decision-making approach specifies the reporting arrangements for the programme. The data provided must
be as accurate and complete as practicable with clear guidance to decision-makers about assumptions made
and highlighting any limited confidence in the data reported.
As previously discussed in the knowledge theme, the culture of the organization plays a significant role in
providing relevant and timely information for decision-makers. Some cultures have embedded behaviours that
make it difficult to share what is perceived as ‘bad’ news, either in the form of negative variance from plan or
the identification of downside risks. Where this is the case, it can lead to partial reporting of real progress or
over-optimistic assessments of risk exposure. The number and magnitude of issues that arise would be
expected to be greater in cultures where early sight of risks and realistic reporting enable decision-makers to
anticipate, drive improvement, and keep on the ‘front-foot’. Providing false information on historic performance
destroys value. The SRO and sponsoring group are accountable for building a culture where this does not happen.
10.6.2
Looking forward
Programmes are intended to deal with ambiguity, adapting and realigning to ensure that the investment in
outcomes of benefit is continuously affordable and achievable. To do this, decisions need to be made with as
much foresight as possible.
The people managing the projects and other work within the programme will be focused on delivering outputs
within the resource constraints and therefore keenly aware of the associated risks. However, the programmelevel focus is upwards and outwards. The programme team looks for new information on emerging risks and
disruptive trends in the programme environment, and is aware of weak data signals as well as established
information. Such activity is often referred to as horizon scanning. Effective monitoring of the external context
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Chapter 10 – Decisions
Data also needs to be ‘decision-ready’, making it clear where decisions are needed to correct negative trends,
resolve issues, or to put in place additional risk responses, and the options and alternatives that have been
considered (see also section 10.7). There are close links between the knowledge and assurance themes
(Chapters 8 and 9) and this work. New and updated knowledge will be created by the programme team, and
assurance activities will provide the information on which decisions will be based. The decision-making
approach will specify the content and format of the information required.
Managing Successful Programmes
for the investing organization(s) enables timely decisions to be made on risks or issues that may have an impact
on the capacity and capability to embed outcomes to realize benefits.
There are many ways in which a programme team can present such information to decision-makers. Some will
present the information in the risk register or issue register format because the format is an established part of
governance, understood by the people involved. Others may draw from the risk register and issue register
formats to present data so it has the greatest chance of being understood and considered.
Established techniques to evaluate the programme environment can be used as a means of horizon scanning.
One such technique, PESTLE, analyses political, economic, sociological, technological, legal, and environmental
factors. Although some would, correctly, see such techniques as a form of risk identification, they can be useful
for programmes to keep a specific focus on longer-term trends in the programme environment. Other relevant
techniques include scenario analysis where different potential futures are described. Armed with a considered
‘forward look’, decision-makers are able to consider the new information and the potential need to realign and
justify the programme. Figure 10.3 shows the various sources of data.
Reports
Performance to date
Emerging risks
Adapting and realigning
Decision-ready data
Issues
Effectiveness of risk responses
Options/alternatives
Disruptive trends
back
Looking
Chapter 10 – Decisions
Knowledge created
Assurance outputs
forward
Weak signals
Horizon scanning
PESTLE
Scenarios
Figure 10.3 Sources of data
National Rail network programme
The National Rail network programme is a programme spanning a number of years
funded primarily by the government with some private-sector funding that involves many
organizations and produces numerous reports. The risk profile for the programme is
expected to change over time, and data-gathering and reporting are used on an ongoing
basis to help prepare the leadership for an uncertain future.
Innovation
and growth
Using horizon scanning, the programme office identifies and reports potential risks that may affect the
National Rail network programme approach and plans; for example:
● an election resulting in a change in government which will lead to different funding priorities
● an increase to the cost of government borrowing leading to increasing costs to the programme
● the emergence of new rail monitoring technologies and data analysis techniques leading to different
ways to deliver the target operating model
● the introduction of new government policies, legislation, or regulations resulting in different
mandatory quality requirements for the programme.
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Decisions
Using predictive analytics, the programme office interprets historical programme performance data in
order to identify potential future events; for example:
● cost overruns due to changes in resourcing or contracting in one team
● delayed project delivery due to a missed milestone caused by the slowdown of a particular business
operational process
● declining project quality due to changes in how software is being tested and released
● over-reported financial benefits realization, due to poor accounting practices which are under-
reporting costs
● operational capacity shortages in high-risk areas, due to poor management of staff holiday time.
Using lessons learned from other major programmes, decision-makers anticipate potential risks that may
affect the National Rail network programme approach and plans; for example:
● people in key individual roles (e.g. SROs, programme managers, and BCMs) typically only stay with a
programme for a few years before moving to other roles, leading to different ways of managing the
programme
● government departments regularly restructure, leading to changes to the organization structures,
supporting offices, and individual roles
● contacts with vendors evolve, leading to changes to supplier costs and the allocation of funds.
Chapter 10 – Decisions
Charity organizational realignment programme
The programme was planned over a two-year time horizon with the change in
Organizational
organization structure and associated processes and internal controls happening in
realignment
Tranche 3 (after 18 months). Because the sponsoring group of the programme is the
executive team, reporting on progress was provided as part of the normal monthly pack
of reports. Benefits monitoring for the entire programme scope was in place by the end of Tranche 1, so
the senior team had good visibility of the current status of fundraising, numbers of service users,
compliance performance, and staff satisfaction and attrition.
The programme team were pleased with the quality of data provided and that issues were being
resolved on a timely basis. However, during a meeting towards the end of Tranche 2, they were shocked
to be presented with new information by the newly appointed compliance director. This showed that the
future business process and internal controls work had not considered two pieces of changed legislation
relating to the safeguarding of service users. There was some suggestion that the changed legislation
would also require modifications to the new technology-enabled service channel. The potential for
legislation to change was on the risk register but no one had taken accountability for actively tracking
this. The team were reminded of the need for their data analysis to look forward as well as look back.
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Managing Successful Programmes
Utilities maintenance and improvement programme
In this programme, a review near the end of a tranche showed that many of the
projects would probably fail to deliver as planned. The sponsoring group members were
Efficient
delivery
surprised to hear this, as all the reports from the programme had been positive so far.
The majority of progress summary charts were also showing ‘green’ status, with few
projects reporting amber and none reporting red. This was a significant issue for the programme as it
was too late in the year to spend the money on other work.
In preparation for the next tranche, the sponsoring group members asked the programme office lead to
look at the underlying causes of the optimistic reporting so far. The programme manager was asked to
look again at training and support for all programme staff on the importance of transparent and accurate
reporting. The programme manager suspected that project managers were afraid to declare that they
could not deliver because there was no precedent in the company for projects being praised for freeing
up resources for other projects in the portfolio. This must change for the efficiency programme to be
successful.
10.7
Options analysis
Chapter 10 – Decisions
‘Decision-ready’ information contains an analysis of the options available to the decision-makers.
Many reports to governance are for information only: reporting on progress and keeping the programme board
and sponsoring group abreast of status. No decisions are needed. Where decisions are needed, however,
decision-makers will have their own partial perspective on the situation; therefore the information provided
needs to challenge those perspectives to ensure that sub-optimal decisions are not taken based on biased
positions.
It can be useful to think about the quality of a decision. This cannot be judged on the outcomes as other things
will inevitably have happened between the decision point and those outcomes. The quality of decisions,
therefore, relies on a robust decision-making process. Critical features of any decision-making process include:
● a clearly understood decision ‘frame’. What is the problem that needs to be solved? What are the
conditions and boundaries associated with the decision? Which aspects of the decision are ‘givens’ and
which are tradable?
● the availability of relevant and reliable information from which to create alternatives
● alternatives underpinned by clear logic, including a clear understanding of what cannot be known for sure
at the point of the decision
● clear motivation and commitment to action from key stakeholders.
It is also often part of an organization’s culture to behave as if there is only one correct option in any given
circumstance and therefore behaviours are focused on justifying why the option chosen is the only one that
could be correct in the situation. If this is the culture, the options presented may be biased and misleading.
Decision-makers do not like being manoeuvred into a corner. When a programme is at a significant decision
point, understanding the ‘do nothing differently’ baseline is key before presenting at least two more viable
options. This provides decision-makers with a real choice to make, or a context from which other creative
alternatives can be explored.
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Decisions
10.8
Documents to support the theme
The documents produced as records of application of the decisions theme are shown in Table 10.3.
Table 10.3 Documents to support the decisions theme
Document
Purpose
High-level content
Programme strategy:
decision-making
approach
To define the decision points in
the programme and the
information provided to
decision-makers in order to align
with new information as the
programme progresses
Decision points The decision points for the programme, both planned and
ad-hoc
Decision criteria The criteria that will be used to report data, analyse
information, and make recommendations How the criteria vary between
different levels
Escalation and delegation Criteria for escalation and delegation of
information between governance boards
Reporting The reports that are provided to decision-makers: content and
frequency
Audit trail of decisions How decisions made by governance boards are
documented and communicated
Programme strategy:
issue resolution
approach
To define the specific
arrangements for capturing,
evaluating, and deciding how to
act on change requests or issues
arising
Issue owners The process for allocating issues to owners
Delegated authority to issue owners The limits of authority delegated to
issue owners
Change requests How change requests are logged and processed
Links with risk response approach How links between the issue
resolution approach and risk response approach work
Reporting The reports that are provided to decision-makers: content and
frequency
Programme strategy:
risk response
approach
To define the criteria to be used
when deciding whether to accept
risk and put in place reactive
(contingent) responses if risk
events occur, or to invest in
proactive responses to threats
and opportunities
Risk owners The process for allocating risks to owners
Delegated authority to risk owners The limits of authority delegated to
risk owners
Guidance provided to risk owners To justify additional investment in
proactive responses to risk that are in line with risk appetite
Governance For reviewing and approving risk response plans, both
proactive and reactive/contingent response plans
Links with issue resolution approach How links between the issue
resolution approach and risk response approach work
Reporting The reports that are provided to decision-makers: content and
frequency
Decision register
To record decisions made by
each governance board, providing
an audit trail of decisions and
their underpinning rationales
Decision description
Options considered
Choice made and rationale
Decision owner
Relevant dates
Issue register
To record issues and the impact
on objectives if not managed; to
document the issue owner with
responsibility for resolution; and
to track the resolution of the
issue
Issue description
Impact on the programme if not resolved
Issue owner
Actions to resolve (ideally with costs)
Relevant dates
Table continues
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Chapter 10 – Decisions
Change impact analysis The governance for reviewing change impact
analysis and making decisions
Managing Successful Programmes
Table 10.3 continued
Document
Purpose
High-level content
Risk register
To record those uncertain events
that would affect one or more
programme objectives
Risk description
Likelihood of the risk occurring
Impact on the programme if the risk does occur
Proximity of the risk
Risk owner
Risk responses (ideally with costs)
Planned residual likelihood and impact, assuming responses are effective
Relevant dates
10.9
Focus of key roles for the theme
The areas of focus associated with the decisions theme for the roles of sponsoring group members, SRO,
programme manager, BCM, and programme office lead are shown in Table 10.4.
Table 10.4 Areas of focus for key roles associated with the decisions theme
Role
Areas of focus
Sponsoring group members
Ensuring the decision-making, risk response, and issue resolution approaches are fit for purpose
Making decisions at key planned or unplanned decision points
Chapter 10 – Decisions
Senior responsible owner
(SRO)
Agreeing the approach for the management of decisions (including issue resolution and risk responses)
with the sponsoring group and ensuring these are documented in the programme strategy
Leading the decision-making process at key planned or unplanned decision points
Programme manager
Developing the decision-making, issue resolution, and risk response approaches in the programme
strategy, and ensuring that they are applied
Providing decision-ready information for governance boards
Business change manager
(BCM)
Supporting the programme manager in providing decision-ready information for governance boards
Programme office lead
Maintaining registers of risk, issues, and decisions
Supporting the programme manager in providing decision-ready information for governance boards by:
● collating data from multiple sources, including new knowledge and outputs from assurance
activities
● performing analyses and providing back-up data
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CHAPTER 11
Introduction to
MSP processes
11
Introduction to
MSP processes
Investments in programmes and programme management can be significant and span several years. In an MSP
programme, there is a focus on ensuring that the seven principles are met through the design and application of
a tailored governance and control environment informed by the seven themes. This control environment needs
to be applied over time and it is the MSP processes that determine how this is done over the life of the
programme.
Definition: Process
A structured set of activities that define the sequence of actions and their inputs and outputs to achieve a
specific objective.
Chapter 11 – Introduction to MSP processes
11.1
Programme lifecycle
The lifecycle of any programme is incremental. Programmes are designed to deliver benefits of value to
stakeholders throughout the programme lifecycle. As new information becomes available, adjustments are
made. Programme management requires a focus on learning, design, and redesign of the progression towards
the desired future state.
As a result, the processes in the programme lifecycle are designed to support the governance of the programme
by guiding an orderly progression with clear decision criteria. They also provide a flexible and adaptable way of
ensuring that the programme adheres to the MSP principles.
Each process in the programme lifecycle addresses the MSP governance themes of organization, design,
justification, structure, knowledge, assurance, and decisions. The lifecycle has a controlled start (identify the
programme) and a controlled end (close the programme). Between these points, the incremental lifecycle
ensures that:
● the target operating model represents the future state that is required to embed outcomes and realize
benefits
● the business case continually reflects a justified trade-off between benefits, costs, and risks
● the benefits are progressively delivered and stabilized at landing points
● the programme strategy and plans continue to represent the optimal way of managing the programme.
146
11.2
MSP processes
The MSP processes are:
1
Identify the programme
2
Design the outcomes
3
Plan progressive delivery
4
Deliver the capabilities
5
Embed the outcomes
6
Evaluate new information
7
Close the programme
The first and seventh processes (identify the programme and close the programme) are the only linear parts
of the lifecycle.
FICATI N
O
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Embed the
outcomes
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STR
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RE
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AM EA
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GU
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Evaluate
new
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TY
DE
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OY I
PL SK
DE SE
ER
S
Close the
programme
RATE
LABO
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SS
RO
AC
Deliver the
capabilities
Identify the
programme
DIV
LL
N
IG
ES
Plan
progressive
delivery
Chapter 11 – Introduction to MSP processes
D
NS
Design the
outcomes
ASSURA
REALIZ
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S
A
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R
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FIT
S
WITH LEAD
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R
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Figure 11.1 Processes that enable incremental progression
147
Managing Successful Programmes
Processes 2–6 are repeated through the programme, forming an incremental spiral of progression towards the
defined vision and outcomes of benefit.
At the end of each tranche or landing point, Process 6 specifically addresses progress and what has changed
in the programme environment to inform Process 2 in the next cycle.
Process 3 focuses on the business case for the whole programme at a high level and planning the next
tranche in detail.
Processes 4 and 5 focus on programme delivery and embedding the outcomes to realize benefits within a
single tranche.
Figure 11.1 illustrates the processes that enable incremental progression.
Each process chapter addresses:
● the purpose, objective, and context of the process
● the activities involved and the information flow to transform inputs to outputs
● the mapping of programme roles to the activities involved in the process.
The chapter finishes with a summary of how each theme is applied in that particular process. Together, the
MSP processes ensure that the principles and themes are continually applied across the programme lifecycle.
Chapter 11 – Introduction to MSP processes
148
CHAPTER 12
Identify the programme
12
Identify the
programme
Figure 12.1 illustrates the identify the programme process within the MSP framework.
FICATI N
O
Deliver the
capabilities
OY I
PL SK
DE SE
ER
KN
S
OW
LED
GE
STR
U
U
CT
RE
TY
STI
Embed the
outcomes
JU
Evaluate
new
information
D
AM EA
BI L
GU
I
NCE
Close the
programme
RATE
LABO
COL BOUNDARIES
SS
RO
AC
Plan
progressive
delivery
Identify the
programme
DIV
Chapter 12 – Identify the programme
LL
N
IG
ES
DE
CIS
IO
D
NS
Design the
outcomes
ASSURA
REALIZ
E
S
A
U
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R
M
ABLE B
ENE
FIT
S
WITH LEAD
ING VALUE
R
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B D
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Figure 12.1 Identify the programme process within the MSP framework
12.1
Purpose
The purpose of the identify the programme process is to analyse the drivers and justification for the programme,
ensuring that it is consistent with the overall strategy for the investing organization(s) and is likely to offer a worthwhile
investment, before carrying out more detailed work to justify and structure the programme and plan its delivery.
The time to implement this process is typically short (perhaps only a few weeks), involving a minimum amount
of work. The aim is to turn the initial idea into a tangible business concept so that a decision can be made on
whether further work on the programme is worthwhile.
150
12.2
Objectives
The objectives of the identify the programme process are to ensure that:
● the programme has a clear business justification which warrants further investigation
● the outline vision and high-level benefits are understood
● high-level costs, funding, and cash-flow implications have been considered
● major risks have been identified
● key roles have been identified and appointed
● the resources, timeframes, and costs needed to design the programme in more detail have been planned.
12.3
Context
The programme mandate is the trigger to begin this process. Although it may not initially exist as a document,
the executive management communicates the drivers and key objectives for the programme. An important part
of this process is for the sponsoring group to confirm the information in the programme mandate and then
develop it into a coherent programme brief that describes the high-level costs, benefits, and risks associated
with the programme.
Table 12 1 shows the inputs, activities, and outputs for the process.
Table 12.1 Inputs, activities, and outputs for identify the programme
Activities
Outputs of the process
Confirm the organization structure
Programme brief
Confirm the SRO
Programme strategy (initial)
Confirm the programme mandate
Programme plans (initial)
Develop the programme brief
Establish the initial programme strategy and plans
Prepare for the next process
Agree to proceed (or close)
12.4
12.4.1
Activities
Confirm the organization structure
The sponsorship for the programme and the overall programme governance structure needs to be confirmed at
the earliest opportunity. The sponsoring group is appointed first, followed by the programme board.
12.4.2
Confirm the SRO
The sponsoring group appoints the SRO, which is the role accountable for the programme’s success. The SRO
needs to be a peer and member of the sponsoring group to ensure the appropriate level of seniority and
decision-making authority.
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Chapter 12 – Identify the programme
Inputs to the process
Programme mandate
Managing Successful Programmes
12.4.3
Confirm the programme mandate
The programme mandate may be received from the executive management in any format, or it may be derived
from strategic planning or policy development cycles. It may not be received as a single, cohesive document.
Before continuing, the sponsoring group creates a single document and confirms that the programme mandate
correctly reflects the objectives of the investing organization(s) and the drivers for change.
12.4.4
Develop the programme brief
The programme brief builds from the programme mandate and provides the formal basis for assessing whether
the proposed programme is viable and achievable. It shows the programme’s specific objectives, benefits, costs,
and risks, together with a view of the organization’s capability and capacity to be successful. When developing
the programme brief, consideration of the initial options is documented. After it has been approved, the
programme brief provides the basis for developing the programme’s full business case.
12.4.5
Establish the initial programme strategy and plans
It may be appropriate at this point to establish initial governance approaches to cover certain aspects of the
programme; for example, funding, assurance (including arrangements for an independent review of key
documents such as the programme brief), and organization (including descriptions for key roles and terms of
reference for the programme board). These are included in the initial programme strategy, which will be refined
and developed further in later processes. Initial versions of plans covering certain programme elements (e.g.
assurance) may also be developed.
Chapter 12 – Identify the programme
If possible, the SRO or sponsoring group establishes the programme board and appoints other programme
board members, including the BCM and programme manager, to set up governance and give early input to
those business areas which will be impacted.
12.4.6
Prepare for the next process
The programme brief may be independently reviewed. This ensures that it reflects the objectives, high-level
costs, benefits, timeframes, and risks of the programme and the extent to which the organization has the
capacity and capability to deliver and realize the expected benefits.
The next process involves refining the programme vision, analysing the programme benefits, and developing the
target operating model. This can be complex work, requiring resources or specialist skills, which may need to be
formally planned in detail.
12.4.7
Agree to proceed (or close)
Formal approval to proceed means that:
● the sponsoring group approves the outputs from the process
● the sponsoring group authorizes and commits to resource the next process
● the SRO confirms that the programme correctly reflects the drivers and objectives
● the programme board commits to supporting the next process in the programme lifecycle
● if formal approval cannot be given, the programme will close.
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Identify the programme
12.5
Responsibilities
Table 12.2 shows a RACI chart for the activities in the process, split between the core MSP governance boards,
supporting offices, and individual roles.
Table 12.2 RACI chart for the identify the programme process
Activity
Sponsoring
group
SRO
Programme
manager
BCM
Programme
office
Confirm the organization structure
A/R
I
I
I
I
Confirm the SRO
A/R
I
I
I
I
A
R
C
C
C
Develop the programme brief
A
R
R
C
Establish the initial programme strategy and plans
A
R
C
C
A
R
R
C
R
C
C
C
Confirm the programme mandate
Prepare for the next process
Agree to proceed (or close)
A
R – Responsible; A – Accountable; C – Consulted; I – Informed.
12.6
Application of the themes in this process
Table 12.3 shows how the themes apply to the identify the programme process.
Table 12.3 Application of the themes in the identify the programme process
Application to the identify the programme process
Organization
Appoint key programme roles and establish initial programme structure
Chapter 12 – Identify the programme
Theme
Identify key stakeholders
Design
Identify an initial set of key programme risks and issues
Document the current-state target operating model
Develop an outline view of the programme vision, target operating model, and benefits
Justification
Develop an outline business case (programme brief)
Structure
Plan the work required for the next process
Develop the initial governance arrangements
Identify existing projects which may form part of the programme
Knowledge
Identify initial lessons to incorporate into the programme
Assurance
Consider initial assurance requirements
Identify the programme’s critical success factors
Conduct independent assurance of key documentation
Decisions
Identify key decision-making criteria and initial escalation paths
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Chapter 12 – Identify the programme
154
Design the outcomes
Chapter 13 – Design the outcomes
CHAPTER 13
Figure 13.1 illustrates the design the outcomes process within the MSP framework.
D
Plan
progressive
delivery
OY I
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Embed the
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JU
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Evaluate
new
information
D
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Identify the
programme
DIV
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FICATI N
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Deliver the
capabilities
Design the
outcomes
Close the
programme
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Chapter 13 – Design the outcomes
13
Design the outcomes
W
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Figure 13.1 Design the outcomes process within the MSP framework
13.1
Purpose
The purpose of the design the outcomes process is to establish solid foundations for the programme. This
means enabling the organizations involved to understand the programme vision, benefits, risks, and the target
operating model, including the gap between the current and future states, before starting to plan the programme
in detail. This process is where the detailed definition and design work for the programme is undertaken. It is
revisited at the start of each tranche to either validate the outputs or adapt them to new information.
156
Objectives
The objectives of the design the outcomes process are to ensure that:
● there is a clear and compelling vision for the programme, set out in the vision statement
● the benefits and dis-benefits of the programme are understood and documented
● the design approach has been decided upon and documented
● the risks to the programme have been captured in a risk register and analysed
● the target operating model (along with performance measures) is in place for processes, culture,
organization, technology, infrastructure, knowledge and learning, and information and data
● the gap between the current state and the target operating model is understood and clearly documented.
13.3
Context
The design the outcomes process refines the initial vision statement, which is in the programme brief, and
expands it into two things: a detailed future state comprising the target operating model, and a set of benefits to
be realized. Each benefit is described in a detailed benefit profile. The links between benefits and project
outputs, capabilities, outcomes, and organizational strategic objectives are shown in benefits maps. At this
stage, risks will be identified and prioritized in the programme risk register. This is also the correct point in the
process for learning from previous programmes, projects, and other work to be acknowledged and incorporated
into the programme.
Throughout this process, the programme strategy and programme plans are likely to be updated. The
programme brief is used as input to the business case.
Table 13.1 shows the inputs, activities, and outputs for the process.
Table 13.1 Inputs, activities, and outputs for design the outcomes
Inputs to the process
Activities
Outputs from the process
Approval to proceed
Identify previous learning
Vision statement
Programme brief
Appoint the programme roles
Target operating model
Programme strategy (initial)
Develop the vision statement
Benefit profiles
Programme plans (initial)
Identify and validate benefits
Benefits map
Identify and prioritize risks
Develop the target operating model
Business case (draft, developed from
programme brief)
Develop the programme strategy
Programme strategy (updated)
Develop the programme plans:
Programme plans (updated)
● delivery plan
Risk register
● benefits realization plan
Issue register
● stakeholder engagement and communications plan
Decision register
● assurance plan
● financial plan
Develop the business case
Prepare for the next process
Agree to proceed (or close)
157
Chapter 13 – Design the outcomes
13.2
Managing Successful Programmes
Chapter 13 – Design the outcomes
13.4
13.4.1
Activities
Identify previous learning
The programme manager and programme team spend time identifying learning from previous programmes,
projects, and other work to apply on this programme before proceeding.
13.4.2
Appoint the programme roles
In this process, the programme team will need to expand beyond the initial team which produced the
programme brief. Specialist skills will be required, such as business analysts and benefits specialists, to help
with the construction of the target operating model, analysis of benefits, and options analysis going forward.
Skills which are unavailable locally will be brought in using temporary specialists. It is important to set up an
infrastructure to support them to work effectively. This means organizing items, from office accommodation to
office equipment and computers, and from software tools to configuration management solutions. In this
process, the amount of information will grow significantly and the documents produced will depend on the
contents of others. Version control will help to keep everything in sync so that people are working with up-todate information.
13.4.3
Develop the vision statement
The vision statement builds from the initial vision in the programme brief. One way of developing this vision is to
hold a vision workshop for the representatives of different stakeholder groups to explore the potential end-state
of the programme. The outputs of this workshop should be validated before being included in the vision
statement.
13.4.4
Identify and validate benefits
The vision statement, along with the initial benefits identified in the programme brief, guides the programme
team to develop the benefits of the programme. A benefits map will show the links between outputs, capability,
benefits, and strategic objectives so that these relationships are clearly understood before the benefits are
validated. Creating a benefit profile for each benefit will develop and validate the benefit further.
13.4.5
Identify and prioritize risks
The programme team creates and maintains a risk register to capture those uncertain events that would affect
one or more outcomes of benefit. The risk register is also used to keep a record of the risk exposure of each of
those events and the responses planned. Risks identified in earlier processes are included if they are still valid.
To prioritize risks consider, as a minimum, an assessment of the likelihood of the risk occurring and an estimate
of the size of impact on one or more outcomes of benefit.
158
Design the outcomes
Develop the target operating model
This step takes the vision statement and expands it into a detailed target operating model. This requires focus
on several different aspects: processes, culture, organization, technology, infrastructure, information and data,
and knowledge and learning. The work is likely to bring in a much wider range of people, from specialists in
business analysis and architecture, to process analysts, organization designers, technology specialists, and
data analysts.
13.4.7
Develop the programme strategy
Building on the initial work in the previous process (identify the programme), here aspects of the programme
strategy will be developed, including the approaches to:
● governance
● stakeholder engagement
● design
● funding
● delivery
● resourcing
● information
● knowledge and learning
● assurance
● decision-making
● issue resolution
● risk response.
The programme strategy is developed in this process but is not completed, amended, or (re)approved until the
plan progressive delivery process.
13.4.8
Develop the programme plans
During this process, the team will understand much more about the programme, including the vision, the target
operating model, and its benefits and risks. This means that programme plans can be started during this process,
although they will not be completed, amended, or (re)approved until the plan progressive delivery process.
13.4.9
Develop the business case
Building from the programme brief, the team will gather information about benefits, costs, and risks, and
potentially reconsider some of the options explored when developing the programme brief. All of this information
is important input to the business case which will be completed, amended, or (re)approved in the next process.
13.4.10
Prepare for the next process
The next process is a complex one where the overall programme is planned, and the first tranche is planned in
detail. Programme justification also occurs in the next process. It makes sense to plan for the progressive
delivery process here.
159
Chapter 13 – Design the outcomes
13.4.6
Managing Successful Programmes
Chapter 13 – Design the outcomes
13.4.11
Agree to proceed (or close)
Formal approval to proceed means that:
● the sponsoring group approves the outputs from the process
● the sponsoring group authorizes and commits to resource the next process
● the SRO confirms that the vision statement correctly reflects the desired end-state of the programme
● the sponsoring group commits to supporting the next process in the programme lifecycle
● if formal approval cannot be given, the programme will close.
13.5
Responsibilities
Table 13.2 shows a RACI chart for the activities in the process, split between the core MSP governance boards,
supporting offices, and individual roles.
Table 13.2 RACI chart for design the outcomes
Activity
Sponsoring
group
SRO
Programme
manager
BCM
Programme
office
Identify previous learning
A/R
A
R
R
C
Appoint the programme roles
A/R
A
R
C
I
Develop the vision statement
A
R
C
C
I
Identify and validate benefits
A
R
R
C
Identify and prioritize risks
A
R
R
C
Develop the target operating model
A
R
R
I
R
C
C
C
C
C
C
Develop the programme strategy
A
Develop the programme plans
A
Develop the business case
A
R
C
Prepare for the next process
A
R
C
C
C
C
Agree to proceed, or close
R – Responsible; A – Accountable; C – Consulted; I – Informed.
160
A/R
I
Design the outcomes
Chapter 13 – Design the outcomes
13.6
Application of the themes in this process
Table 13.3 shows how the themes apply to the design the outcomes process.
Table 13.3 Application of the themes in the design the outcomes process
Theme
Application to design the outcomes process
Organization
Bring in the appropriate specialists to develop the vision statement and target operating model
Develop the governance approach
Develop the stakeholder engagement and communications plan
Design
Develop the vision statement
Identify and validate benefits
Identify and prioritize risks
Develop the target operating model
Develop the design approach
Justification
Develop the business case
Develop the funding approach and financial plan
Structure
Prepare for the next process
Develop the delivery approach
Develop the delivery plan and benefits realization plan
Knowledge
Identify lessons from the past
Develop the knowledge and learning approach
Develop the information approach
Assurance
Ensure that each key output of the process is assured
Develop the assurance approach and assurance plan
Decisions
Develop the decisions approach, risk response approach, and issue resolution approach
161
Managing Successful Programmes
Chapter 13 – Design the outcomes
162
CHAPTER 14
Plan progressive delivery
Figure 14.1 illustrates the plan progressive delivery process within the MSP framework.
Plan
progressive
delivery
FICATI N
O
KN
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OW
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GE
STR
U
U
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RE
TY
STI
Embed the
outcomes
JU
Evaluate
new
information
D
AM EA
BI L
GU
I
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OY I
PL SK
DE SE
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DIV
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Deliver the
capabilities
Identify the
programme
Close the
programme
RATE
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CIS
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D
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Design the
outcomes
ASSURA
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Chapter 14 – Plan progressive delivery
14
Plan progressive
delivery
W
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Figure 14.1 Plan progressive delivery process within the MSP framework
14.1
Purpose
The purpose of the plan progressive delivery process is to build on the programme design. The process plans
the programme, structuring the projects and other work into tranches of delivery to achieve the required
capabilities and realize the benefits. It also confirms the programme justification before deciding whether to
proceed with programme delivery.
164
Objectives
The objectives of the plan progressive delivery process are to ensure that:
● the projects and other work involved to deliver the programme are planned
● the tranches of delivery and intermediate landing points are defined
● the delivery approach and ways of working are defined
● the path to realizing benefits is planned
● the approach to acquiring and managing the resources (needed to deliver the programme) is defined
● the pace of delivery is aligned with the rate of change that operational areas can support.
14.3
Context
Planning progressive delivery is about understanding how the outcomes of benefit will be achieved through
delivery of the programme’s projects and other work. This process ensures that the programme will deliver
capability at an appropriate pace, maintaining an acceptable balance between delivery, transition, realization of
benefits, and affordability.
Table 14.1 shows the inputs, activities, and outputs for the process.
Table 14.1 Inputs, activities, and outputs for plan progressive delivery
Inputs to the process
Activities
Outputs from the process
Approval to proceed
Validate required resources
Vision statement
Complete the programme strategy
Programme strategy (completed and
approved)
Target operating model
Continue to develop and validate the programme plans:
Benefit profiles
● delivery plan
Benefits map
● benefits realization plan
Programme strategy (latest
version)
● stakeholder engagement and communications plan
Risk register
● financial plan
Issue register
Confirm the business case
Decision register
Prepare for the next process
Business case (latest version)
Agree to proceed (or close)
● assurance plan
Programme plans (completed and
approved)
Business case (completed and
approved)
Risk register
Issue register
Decision register
Programme plans (latest versions)
14.4
14.4.1
Activities
Validate required resources
The resources required during the plan progressive delivery process need to be confirmed, acquired, and
established. As with the design the outcomes process, resources may include infrastructure, tools, equipment,
and the team needed to carry out the required activities. Specialist skills may be needed for planning the
programme and finalizing the business case. Where appropriate skills are unavailable in-house, they may be
supplemented by external specialists.
165
Chapter 14 – Plan progressive delivery
14.2
Managing Successful Programmes
14.4.2
Complete the programme strategy
Chapter 14 – Plan progressive delivery
The programme strategy aligns with existing organizational processes and governance. This enables effective
decision-making and efficient communication flows among members of the programme team and stakeholders.
Aspects of the programme strategy will have been developed in the previous processes (identify the
programme, design the outcomes), but this activity validates, confirms, and finalizes the overall programme
strategy, including the approaches to:
● governance
● stakeholder engagement
● design
● funding
● delivery
● resourcing
● knowledge and learning
● information
● assurance
● decision-making
● issue resolution
● risk response.
14.4.3
Continue to develop and validate the programme plans
The vision statement, target operating model, benefit profiles, and benefits map provide the basis for designing
the projects and other work required to deliver new capabilities. Different options may be available for achieving
improvements which need to be explored in terms of their timing, content, and associated risks and benefits.
Some projects and other work may already be ongoing, and they will be adopted into the programme, while
others will be new initiatives that the programme will deliver.
The following aspects of the programme need to be planned:
● Delivery of new capabilities The programme’s projects and other work will need to be sequenced into
tranches of delivery, showing their relative timescales and key dependencies. Detailed plans for the next
tranche are required.
● Benefits realization The timeframes for measuring benefits.
● Stakeholder engagement and communications Activities for identifying, analysing, and engaging with
stakeholders.
● Assurance Programme monitoring and control, and independent assurance activities.
● Finances Budgeting, monitoring, and measurement of cost and benefit.
These plans may be consolidated into a single overall document or maintained as separate stand-alone items.
The programme plans cover the delivery of the entire programme; however, they are likely to contain more
detailed information for the first (or next) tranche of delivery and less detail for subsequent tranches. Plans for
each incremental progression will be refined every time this process is undertaken.
166
Plan progressive delivery
14.4.4
Confirm the business case
14.4.5
Prepare for the next process
The programme can now prepare for the first tranche of delivery. Planning for the next process may involve
preparing to establish governance and specifying any physical equipment or infrastructure requirements.
Subsequent tranches may require similar preparations.
According to the assurance plan, the programme documentation may be subject to an independent assurance
review in order to gain objective confirmation that the business case is viable, the programme delivery is
achievable, and the stated outcomes and benefits are realistic. This assurance needs to be completed before
the decision is made to proceed with delivery.
14.4.6
Agree to proceed (or close)
Formal approval to proceed means that:
● the SRO approves the programme business case and other documentation
● the sponsoring group authorizes and commits to resource the first tranche of delivery
● delivery of the programme can commence
● if formal approval cannot be given, the programme will close.
14.5
Responsibilities
Table 14.2 shows a RACI chart for the activities in the process, split between the core MSP governance boards,
supporting offices, and individual roles.
Table 14.2 RACI chart for plan progressive delivery
Activity
Sponsoring
group
Validate required resources
Complete the programme strategy
A
BCM
Programme
office
A
R
C
C
R
C
C
A
R
C
C
A
R
C
C
C
A
R
C
C
A
R
C
C
C
Prepare for the next process
Agree to proceed (or close)
Programme
manager
R
Continue to develop and validate the
programme plans
Confirm the business case
SRO
R – Responsible; A – Accountable; C – Consulted; I – Informed.
167
Chapter 14 – Plan progressive delivery
The business case will have started to emerge in the identify the programme process (as part of the programme
brief) and been further developed in the design the outcomes process. The business case is finalized here as
the arrangements for programme management and delivery are developed. When the information about the
programme’s costs, benefits, timings, and risks are understood, the viability of the programme can be assessed
and confirmed.
Managing Successful Programmes
Chapter 14 – Plan progressive delivery
14.6
Application of the themes in this process
Table 14.3 shows how the themes apply to the plan progressive delivery process.
Table 14.3 Application of the themes to the plan progressive delivery process
Theme
Application to plan progressive delivery process
Organization
Finalize programme and project structures
Confirm the governance approach
Confirm the stakeholder engagement approach
Develop the stakeholder engagement and communications plan
Design
Update the target operating model, if required
Refine and validate benefits
Justification
Finalize the business case
Develop the financial plan
Structure
Confirm the delivery approach
Identify projects and tranches of delivery
Develop the delivery plan, including the next tranche in detail
Develop the benefits realization plan
Knowledge
Confirm the approach to managing information and knowledge
Incorporate learnings into programme plans, and share more widely within the organization(s)
Assurance
Confirm the assurance approach
Develop the assurance plan
Decisions
168
Confirm the approach to decision-making and escalation paths
CHAPTER 15
Deliver the capabilities
Figure 15.1 illustrates the deliver the capabilities process within the MSP framework.
Plan
progressive
delivery
FICATI N
O
KN
S
OW
LED
GE
STR
U
U
CT
RE
IT Y
STI
Embed the
outcomes
JU
Evaluate
new
information
D
AM EA
BI L
GU
NCE
OY I
PL SK
DE SE
ER
DIV
LL
Deliver the
capabilities
Identify the
programme
Close the
programme
RATE
LABO
COL BOUNDARIES
SS
RO
AC
DE
CIS
IO
D
NS
Design the
outcomes
ASSURA
REALIZ
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MEASURABLE B
ENE
FIT
S
WITH LEAD
ING VALUE
R
PU
B D
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OS
E
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Chapter 15 – Deliver the capabilities
15
Deliver the
capabilities
W
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ALIG N
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Figure 15.1 Deliver the capabilities process within the MSP framework
15.1
Purpose
The purpose of the deliver the capabilities process is to oversee programme delivery, ensuring projects and
other work are carried out appropriately. The process monitors progress and takes corrective action to keep
programme delivery on track, delivering the capabilities defined in the target operating model.
170
15.2
Objectives
The objectives of the deliver the capabilities process are to ensure that:
Chapter 15 – Deliver the capabilities
● the approaches to managing different aspects of the programme (defined in the programme strategy)
are implemented
● capabilities are being delivered through the completion of projects and other work, as defined in the
delivery plan
● projects are started and closed in a controlled manner
● project outputs are aligned with capabilities in the target operating model
● the programme’s progress is monitored and reported
● risks and issues are kept under control
● corrective action is taken where necessary.
15.3
Context
The deliver the capabilities process has two main functions:
● controlling the work required to manage each tranche of delivery, focusing on implementing the governance
themes as defined in the programme strategy
● ensuring that the projects in the programme are started, managed, and closed appropriately and remain
aligned with the target operating model.
Table 15.1 shows the inputs, activities, and outputs for the process.
Table 15.1 Inputs, activities, and outputs for deliver the capabilities
Inputs to the process
Activities
Outputs from the process
Approval to proceed
Deploy the required resources
Capabilities delivered
Programme strategy (completed and
approved)
Conduct the planned activities
Updated programme strategy and plans
(as required)
Programme plans (completed and
approved)
Validate the adequacy of the programme
strategy and plans
Risk register
Business case (completed and approved)
Decision register
Risk register
Prepare the business for change and plan
transition
Issue register
Prepare for the next process
Decision register
Agree to proceed (or close)
Manage the tranche
Issue register
171
Managing Successful Programmes
15.4
Chapter 15 – Deliver the capabilities
15.4.1
Activities
Deploy the required resources
Additional resources may be required to support programme delivery. These may include:
● expanding the programme office to act as the information hub for the programme or individual projects
● setting up the physical environment, including buildings, office space, and equipment
● acquiring tools such as planning, configuration management, or risk management tools
● obtaining additional specialist resources.
15.4.2
Conduct the planned activities
The programme plans outline the work to be completed during the tranche to ensure that the projects and other
work required by the programme are delivered as planned.
15.4.2.1
Delivery plan
Projects and other work required to deliver capabilities will need to be conducted according to the delivery plan.
This outlines the tranches of delivery and includes the projects, timeframes, key dependencies, and resources
involved. The detail in the target operating model provides input to the requirements that projects must deliver.
Delivering the capabilities involves:
● Starting projects Ensuring that key project roles are appointed; that there is clarity around the project
scope, key dependencies, and governance and escalation requirements; and that the projects align with the
programme objectives and benefits realization plan.
● Controlling delivery of projects Ensuring that project progress is monitored and controlled at a high level
against the delivery plan; that project risks, issues, and dependencies are managed effectively; and that any
forecast breaches of tolerance are escalated as early as possible.
● Closing projects Ensuring that project outputs meet acceptance criteria and align with the capabilities
outlined in the target operating model.
15.4.2.2
Other programme plans
Other activities which need to be carried out in this process, according to the relevant programme plans,
include:
● Stakeholder engagement and communications Ensuring that stakeholders are kept informed and engaged
in the work of the programme.
● Assurance Carrying out monitoring and control activities (e.g. programme board meetings) and conducting
independent assurance reviews at key decision points.
● Financial management Monitoring and controlling programme budgets, costs, financial benefits, and cash
flow.
● Benefits realization Establishing baseline measures.
172
Deliver the capabilities
15.4.3
Manage the tranche
● Resource management Managing people and other resources, including procurement and supplier and
contract management. Managing suppliers and maintaining the alignment of their activities with the overall
direction of the programme requires specific management attention and intervention if things are not going
to plan. Regular scheduled reviews of suppliers and their performance against expectation and the contract
may become necessary.
● Information management Controlling and tracking documentation, ensuring that it is complete, timely, and
accurate, and available to the right people at the right time. It is also important that the information being
provided is relevant, to support programme control and decision-making.
● Reporting Regular progress-reporting from the projects, to inform monitoring of the programme’s progress
and keep the programme on track. Monitoring progress may identify problem areas requiring management
intervention, and these will need to be actioned or escalated as soon as possible to prevent the programme
moving off track.
● Decision-making Dealing with issues, risks, and exceptions, taking corrective action where needed and
escalating where necessary.
15.4.4
Validate the adequacy of the programme strategy and plans
During the implementation of the tranche, new knowledge may emerge that requires adjustments to the
programme plans. Where this is the case, changes will be made under change control to ensure that each part
of the integrated programme plan to meet the programme strategy is aligned. Where no changes are needed,
the adequacy of the programme plans is validated. This activity also involves ensuring that changes to
programme plans are reflected in the business case.
15.4.5
Prepare the business for change and plan transition
While the programme manager is leading the delivery of new capabilities, the BCM is preparing the business for
change and planning transition. The programme manager and BCM work together to ensure that this work is
coordinated so that preparation for change (including confirmation of business readiness) and transition is timely
and can be implemented as soon as the capabilities are created. Baseline benefit measures are taken and
ongoing benefits measurement is ready to be implemented.
15.4.6
Prepare for the next process
As each project prepares for closure, it delivers its outputs to the programme. The combined outputs need to
deliver the capabilities required and support effective transition, so that operational improvements can be
achieved and benefits realized. Preparing for the next process means ensuring that the capabilities have been
delivered correctly.
Project closure may involve multiple post-project reviews and other assurance activities to assess the
effectiveness of the outputs and capabilities delivered.
173
Chapter 15 – Deliver the capabilities
The programme needs regular monitoring and control to keep it on track. This involves managing the
different aspects of the programme according to the relevant approaches outlined in the programme strategy.
This may include:
Managing Successful Programmes
15.4.7
Agree to proceed (or close)
Formal approval to proceed means that:
● the programme manager confirms that the required capabilities have been delivered
Chapter 15 – Deliver the capabilities
● the BCM confirms that the delivered capabilities are correctly aligned with the target operating model and
that the business is ready to start transition
● transition of capabilities to operational areas can start
● if formal approval cannot be given, the programme will close.
15.5
Responsibilities
Table 15.2 shows a RACI chart for the activities in the process, split between the core MSP governance boards,
supporting offices, and individual roles.
Table 15.2 RACI chart for deliver the capabilities
Activity
Sponsoring
group
SRO
Programme
manager
BCM
Programme
office
Deploy the required resources
A
R
C
C
Conduct the planned activities
A
R
C
C
Manage the tranche
A
R
R
C
Validate the adequacy of the programme strategy and plans
A
R
C
C
Prepare the business for change and plan transition
I
Prepare for the next process
Agree to proceed (or close)
A
A
C
R
C
A
R
R
C
R
C
C
C
R – Responsible; A – Accountable; C – Consulted; I – Informed.
15.6
Application of the themes in this process
Table 15.3 shows how the themes apply to the deliver the capabilities process.
Table 15.3 Application of the themes in the deliver the capabilities process
Theme
Application to deliver the capabilities process
Organization
Use organization structures to deliver projects and other work
Conduct stakeholder engagement and communications activities as outlined in the stakeholder engagement and
communications plan, with a specific focus on preparing the business for change
Design
Measure benefits baseline as outlined in the benefits realization plan
Ensure projects deliver outputs that contribute to the future-state target operating model
Justification
Implement financial controls as outlined in the financial plan
Structure
Deliver projects and conduct activities as outlined in the delivery plan
Plan transition
Knowledge
Manage information so that it is accurate, timely, and controlled, and available for monitoring and decision-making
Ensure lessons and improvements are incorporated into the programme, and shared more widely within the organization(s)
Assurance
Conduct monitoring, control, and assurance activities as outlined in the assurance plan
Decisions
Use governance structures to manage programme issues, risks, and decisions, and escalate as required
174
CHAPTER 16
Embed the outcomes
Figure 16.1 illustrates the embed the outcomes process within the MSP framework.
Plan
progressive
delivery
FICATI N
O
KN
S
OW
LED
GE
STR
UC
R
TU
E
TY
STI
Embed the
outcomes
JU
Evaluate
new
information
D
AM EA
BI L
GU
I
NCE
OY I
PL SK
DE SE
ER
DIV
LL
Deliver the
capabilities
Identify the
programme
Close the
programme
RATE
LABO
COL BOUNDARIES
SS
RO
AC
DE
CIS
IO
D
NS
Design the
outcomes
ASSURA
REALIZ
E
S
A
U
E
R
M
ABLE B
ENE
FIT
S
WITH LEAD
ING VALUE
R
PU
B D
RP
N
A
OS
E
Z
A
I
T
N
E
ION
C
GA
R
A
O
P
N
IG
ES
Chapter 16 – Embed the outcomes
16
Embed the outcomes
W
IT
H
ALIG N
W IT H P RIO RITIES
Figure 16.1 Embed the outcomes process within the MSP framework
16.1
Purpose
The purpose of the embed the outcomes process is to ensure that the investing organization(s) makes the
required changes to adopt new ways of working and realize the benefits. The process incorporates the planning
and management of the transition from old to new ways of working, and the embedding of outcomes. This
needs to be achieved while ensuring that the operational stability and performance of business operations are
not jeopardized.
176
16.2
Objectives
The objectives of the embed the outcomes process are to ensure that:
● capabilities are transitioned effectively
● stakeholders adopt new ways of working
● controls are put in place so that benefits realization continues in BAU.
16.3
Context
Embed the outcomes is led primarily by the BCM, supported by other specific change-focused resources in
BAU. The BCM has led the work to prepare the business change and to agree transition plans with the
programme manager in the deliver the capabilities process. In the embed the outcomes process, the work is
focused on:
● implementing the transition plans
● supporting stakeholders in the business to adopt the capabilities into new ways of working
● realizing and measuring benefits.
Table 16.1 shows the inputs, activities, and outputs for the process.
Table 16.1 Inputs, activities, and outputs for embed the outcomes
Inputs to the process
Activities
Outputs from the process
Capability delivered
Enact the transition
Business prepared for change
Adopt the capabilities
Landing point achieved, a safe place to
stop if necessary
Transition plans
Capture learning
Some benefits realized
Updated programme strategy and plans (as
required)
Begin to realize and measure benefits
Actual performance measurements
Prepare for the next process
Risk register
Risk register
Agree to proceed (or close)
Issue register
Decision register
Issue register
Decision register
16.4
16.4.1
Activities
Enact the transition
Implementing the transition plan can be a sizeable project in itself, depending on the programme and the
number of stakeholders affected. Transition provides a key opportunity for learning. The people responsible for
managing the transition need to work closely with the BCM to ensure that the work is done efficiently but
without any detriment to the operational business.
177
Chapter 16 – Embed the outcomes
● benefits start to be realized and measured
Managing Successful Programmes
16.4.2
Adopt the capabilities
Chapter 16 – Embed the outcomes
Key to this activity is the support that people are given as they learn new capabilities and embed them into new
ways of working. The success of this will depend on the work done to prepare the business for change in the
previous process (deliver the capabilities). Ongoing attention is needed to ensure that the outcomes of benefit
start to emerge and build over time. Part of this activity is withdrawing access to old ways of doing things, such
as legacy systems. This can be difficult for some and these people will need the support of the BCM and
change teams. Adjustments may be required as unforeseen issues arise.
16.4.3
Capture learning
It is inevitable that people will gain new knowledge as they begin to adopt the new capabilities. Sometimes this
knowledge remains tacit, embedded in the memory of the person involved. To ensure the greatest benefit from
the investment, people should be encouraged to share this new knowledge and express this as learning.
16.4.4
Begin to realize and measure benefits
If the design of the capabilities was correct, then after they are transitioned and adopted, benefits will begin to
be realized from the embedded outcomes. This is seen as the achievement of the intermediate operating model
and landing point. Reports start to be provided to the governance boards based on benefit measurement
baselines and measurement systems implemented in the previous process (deliver the capabilities). This is a
critical time for any programme and the measurements must be scrutinized to ensure that they are effective and
not motivating any perverse behaviours across the business. Ongoing attention is also needed to prevent any
benefit erosion over time. The potential for new knowledge to be acquired is significant at this time.
16.4.5
Prepare for the next process
The next process is focused on looking back on progress to date and looking forward to evaluate new
information and decide on priorities for the next tranche of work. Accordingly, to prepare for the next process,
teams make sure that all programme and related project and operational records are complete to support the
end-of-tranche review.
16.4.6
Agree to proceed (or close)
Formal approval to proceed means that:
● the BCM and programme manager confirm that the transition has been made successfully
● the BCM confirms that benefits realization has begun and that plans are in place for the other benefits to be
realized in full, with assigned owners identified
● if formal approval cannot be given, the programme will close.
16.5
Responsibilities
Table 16.2 shows a RACI chart for the activities in the process, split between the core MSP governance boards,
supporting offices, and individual roles.
178
Embed the outcomes
Table 16.2 RACI chart for embed the outcomes
Activity
Sponsoring
group
Enact the transition
SRO
Programme
manager
BCM
Programme
office
A
R
C
C
Adopt the capabilities
A
C
R
C
Capture learning
A
C
R
C
A
C
R
C
A
C
C
R
R
C
C
C
Agree to proceed (or close)
A
Chapter 16 – Embed the outcomes
Begin to realize and measure benefits
Prepare for the next process
R – Responsible; A – Accountable; C – Consulted; I – Informed.
16.6
Application of the themes in this process
Table 16.3 shows how the themes apply to the embed the outcomes process.
Table 16.3 Application of themes in the embed the outcomes process
Theme
Application to embed the outcomes
Organization
Continue to use organization structures to deliver programme and projects
Continue to conduct stakeholder engagement and communications activities as outlined in the stakeholder
engagement and communications plan, particularly to ensure benefits are realized
Ensure ownership of benefits realization is clear
Design
Ensure that the intermediate operating model has been reached and make any adjustments that are needed to the
target operating model
Justification
Implement financial controls as outlined in the financial plan
Structure
Manage the transition, conducting activities as outlined in the delivery plan
Measure benefits realization as outlined in the benefits realization plan
Knowledge
Manage information so that it is accurate, timely, and controlled, and available for monitoring and decision-making
Ensure that knowledge is made explicit and that lessons and improvements are shared and incorporated into the
programme and/or BAU
Assurance
Conduct monitoring, control, and assurance activities as outlined in the assurance plan
Decisions
Use governance structures to manage programme issues, risks, and decisions, and escalate as required
179
Managing Successful Programmes
Chapter 16 – Embed the outcomes
180
CHAPTER 17
Evaluate new information
17
Evaluate new
information
Figure 17.1 illustrates the evaluate new information process within the MSP framework.
Chapter 17 – Evaluate new information
FICATI N
O
Deliver the
capabilities
Embed the
outcomes
S
OW
LED
GE
STR
U
U
CT
RE
D
AM EA
BI L
GU
I
OY I
PL SK
DE SE
ER
KN
TY
STI
Evaluate
new
information
JU
NCE
Close the
programme
RATE
LABO
COL BOUNDARIES
SS
RO
AC
Plan
progressive
delivery
Identify the
programme
DIV
LL
N
IG
ES
DE
CIS
IO
D
NS
Design the
outcomes
ASSURA
REALIZ
E
S
A
U
E
R
M
ABLE B
ENE
FIT
S
WITH LEAD
ING VALUE
R
PU
B D
RP
N
A
OS
E
Z
A
I
T
N
E
I
C
A
O
G
N
R
O
PA
W
IT
H
ALIG N
W IT H P RIO RITIES
Figure 17.1 Evaluate new information process within the MSP framework
17.1
Purpose
The purpose of the evaluate new information process is to ensure that the sponsoring group and programme
board are supported by high quality, up-to-date, and decision-ready information. Evaluating new information
ensures that decision-making during the programme appropriately considers each theme and principle.
182
17.2
Objectives
The objectives of the evaluate new information process are to ensure that new information is:
● collected efficiently and at pace
● validated to ensure its quality/integrity
● analysed, taking the themes into account, in order to provide insight into the current state of the programme
and predictions (i.e. forecasting) of what is to come in the future
● used to inform the programme design and the next tranche.
17.3
Context
During programmes, decision-makers are regularly making decisions about the strategy, design, and delivery of
the programme. In a dynamic and complex environment, information is imperfect and emergent. New
information needs to be evaluated in a way that:
● directly supports decision-makers in the governance structures (e.g. programme boards)
● helps to improve understanding and accelerates action-taking
● is unambiguous to those working both directly and indirectly with the programme.
Table 17.1 shows the inputs, activities, and outputs for the process.
Table 17.1 Inputs, activities, and outputs for evaluate new information
Inputs to the process
Activities
Outputs from the process
Landing point achieved
Analyse tranche performance vs plans
End-of-tranche report
Benefits realized to date
Analyse current state vs target operating
model
Risk register
Issue register
Risk register
Review the programme environment
Decision register
Decision register
Prepare for the next process
Issue register
Agree to proceed (or close)
17.4
17.4.1
Activities
Analyse tranche performance vs plans
This activity is focused on understanding performance to date vs the programme strategy and programme plans.
Information on all aspects of the strategy and plans needs to be combined into the end-of-tranche report, including:
● cost performance
● delivery performance
● benefits realization to date
● status of stakeholder engagement and communications
● adequacy of governance and team-working.
183
Chapter 17 – Evaluate new information
● presented to programme boards in an appropriate way (i.e. concise, informative, timely, and action-oriented)
Managing Successful Programmes
The programme office is likely to play a lead role in this activity, supported by formal assurance activities. As
the programme progresses, it is important to understand current status, variance from plans, and any reasons
for variance that are likely to continue.
17.4.2
Analyse current state vs target operating model
Chapter 17 – Evaluate new information
Another specific element of the end-of-tranche review and report is to confirm the operating model in the
current state, i.e. at the current landing point, comparing it with the intended change for that tranche and
identifying any aspects that are not as planned. This vital information will identify any aspects of the current
operating model that are unstable and needing attention before the next tranche of change begins. Change
activity is always more effective when building from a stable set of organizational routines, so any areas of
instability need to be understood at this point.
17.4.3
Review the programme environment
In addition to looking backwards at performance to date vs plan and at the current operating model, the
evaluation of new information also needs to look forward, to identify emerging trends in the programme
environment. As discussed in Chapter 1, programmes always exist within the internal and external
organizational contexts and these are inherently volatile, uncertain, complex, and ambiguous. Programmes
evaluate new information to keep a focus on the most affordable and achievable way forward.
The programme risk register will already contain the risks perceived and captured by the team, but this is a
good time to look again at any disruption in the programme environment and emerging risks, using techniques
such as horizon scanning.
17.4.4
Prepare for the next process
In the early tranches of the programme, the expected next step will be the design the outcomes process, where
the information from the evaluation of new information will be taken forward into re-planning the next tranche of
delivery. As the programme approaches the latter tranches, the next step is more likely to be to close the
programme. In both cases, it is important that the end-of-tranche report contains complete information about
progress to date and the likely changes in the programme environment going forward.
17.4.5
Agree to proceed (or close)
Formal approval to proceed means that:
● the programme manager confirms that the end-of-tranche report is accurate and complete
● the BCM confirms the status of the change to date and readiness for the next tranche
● the SRO and sponsoring group agree to fund the next tranche
● if formal approval cannot be given, the programme will close.
184
Evaluate new information
17.5
Responsibilities
Table 17.2 shows a RACI chart for the activities in the process, split between the core MSP governance boards,
supporting offices, and individual roles.
Table 17.2 RACI chart for evaluate new information
Activity
SRO
Programme
manager
BCM
Programme
office
C
A
C
C
R
Analyse tranche performance vs plans
Analyse current state vs target operating model
C
A
C
R
C
Review the programme environment
C
A
R
C
C
A
R
C
C
A
R
C
C
C
Prepare for the next process
Agree to proceed (or close)
R – Responsible; A – Accountable; C – Consulted; I – Informed.
17.6
Application of the themes in this process
Table 17.3 shows how the themes apply to the evaluate new information process.
Table 17.3 Application of the themes in the evaluate new information process
Theme
Application to evaluate new information process
Organization
Confirm the status of governance and stakeholder engagement and communications
Design
Refresh risk identification and prioritization
Assess progress to target operating model
Justification
Review progress vs business case (costs, benefits, and risks)
Verify that funding is adequate for any subsequent tranches
Structure
Assess completeness of tranche in terms of development of capability, transition, and benefits realization
Validate dependencies
Assess performance vs resource plans and highlight any issues
Knowledge
Identify new knowledge and propose new lessons to be learned in the next tranche
Validate compliance with information approach
Assurance
Validate that assurance activities have added value and propose changes for next tranche
Decisions
Validate that decision-making processes, including issue resolution and risk responses, have been effective
Propose any changes for the next tranche
185
Chapter 17 – Evaluate new information
Sponsoring
group
Managing Successful Programmes
Chapter 17 – Evaluate new information
186
CHAPTER 18
Close the programme
18
Close the programme
Figure 18.1 illustrates the close the programme process within the MSP framework.
STI
Embed the
outcomes
KN
S
OW
LED
GE
ST
T
RUC
UR
E
D
AM EA
BI L
GU
I
JU
Evaluate
new
information
TY
DE
CIS
IO
NCE
OY I
PL SK
DE SE
ER
DIV
LL
FICATI N
O
Deliver the
capabilities
Identify the
programme
Close the
programme
RATE
LABO
COL BOUNDARIES
SS
RO
AC
Plan
progressive
delivery
Design the
outcomes
ASSURA
REALIZ
E
S
A
U
E
R
M
ABLE B
ENE
FIT
S
D
NS
N
IG
ES
Chapter 18 – Close the programme
WITH LEAD
ING LUE
PU
BR D VA
RP
N
A
OS
E
Z
E
C
GANI ATION
R
A
O
P
W
IT
H
ALIG N
W IT H P RIO RITIES
Figure 18.1 Close the programme process within the MSP framework
18.1
Purpose
The purpose of the close the programme process is to end the programme in a controlled way, extracting as
much value from the programme regardless of the reason for closing it. This includes ensuring that the investing
organization(s) is ready to maximize the benefits to be realized from the completed programme work by
continuing to measure the benefits and taking steps in BAU to minimize benefit erosion.
188
18.2
Objectives
The objectives of the close the programme process are to ensure that:
● a final assessment of the programme is conducted to capture its achievements relative to those expected
and any gaps
● other governance structures assume accountabilities for residual benefits realization, risk management, and
capability development activities
● the impact of closure on stakeholders is understood and managed well
● capabilities are fully integrated into BAU
● resources are decommissioned (e.g. contractors, staff, or secondees)
● evidence that supports future assurance activities is retained (e.g. external audit)
● knowledge acquired during the programme is retained and lessons learned are put in place for subsequent
programmes.
18.3
Context
Programmes are closed when the value of continuing is no longer justified by the sponsoring group because:
● the work has been completed as planned
● the outcome expectations are deemed to have been sufficiently achieved, leading to the mandate
being fulfilled
● other organizations (e.g. vendors, programmes, projects, or BAU) are deemed to be better suited to
delivering the outcomes or objectives of the programme, leading to the mandate being substantially changed
● programme resources are deemed to be better used elsewhere, leading to the mandate being
withdrawn early.
Withdrawal of the programme mandate might happen either when new corporate strategies or priorities emerge,
corporate funding for programmes has been reduced, the programme is lacking achievements, or the likelihood
of significant achievement in the future is very low.
Table 18.1 shows the inputs, activities, and outputs for the process.
Table 18.1 Inputs, activities, and outputs for close the programme
Inputs to this process
Activities
Outputs from this process
End-of-tranche report
Prepare for closure
Confirmation of closure
Risk register
Hand over residual work
Updated knowledge
Issue register
Finalize programme information
Decision register
Disband the programme organization
and close
189
Chapter 18 – Close the programme
● the programme office and the supporting processes are decommissioned
Managing Successful Programmes
18.4
18.4.1
Activities
Prepare for closure
To prepare for closure, the programme manager:
● confirms that the programme is about to close (triggered by the formal approval to close)
● ensures that stakeholders are notified (this will be in the stakeholder engagement and communications plan
if the closure is planned)
● evaluates programme performance to identify lessons to be learned (drawing from the end-of-
Chapter 18 – Close the programme
tranche report).
18.4.2
Hand over residual work
The programme manager:
● assesses delivery of the target operating model
● hands over residual capability delivery to other programmes (if relevant)
● hands over responsibility for ongoing benefits realization and associated risks and issues.
18.4.3
Finalize programme information
This activity is to ensure that programme information is up to date and stored or archived.
18.4.4
Disband the programme organization and close
Formal closure means that the SRO disbands the programme organization and agrees with the sponsoring group
to close the programme.
18.5
Responsibilities
Table 18.2 shows a RACI chart for the activities in the process, split between the core MSP governance boards,
supporting offices, and individual roles.
Table 18.2 RACI chart for close the programme
Activity
Sponsoring
group
SRO
Programme
manager
BCM
Programme
office
Prepare for closure
A
R
C
C
Hand over residual work
A
R
C
C
Finalize programme information
Disband the programme organization and close
A
R – Responsible; A – Accountable; C – Consulted; I – Informed.
190
A
C
C
R
R
C
C
C
Close the programme
18.6
Application of the themes in this process
Table 18.3 shows how the themes apply to the close the programme process.
Table 18.3 Application of the themes in the close the programme process
Application to close the programme process
Organization
Disband the programme organization
Design
Confirm the status of the operating model
Justification
Confirm the status of the business case (all costs and benefits accrued to date)
Structure
Close all projects and other work that were part of the programme, and hand over residual work
Knowledge
Ensure that the knowledge gained by the programme team is captured and made explicit as far as possible
Chapter 18 – Close the programme
Theme
Identify specific lessons for the organization to learn
Update all programme information
Assurance
Provide any assurance activities that are required by the sponsoring group before final closure of the programme
Decisions
Close issues and risks, and confirm the status of other decisions
Hand over any residual issues or risks as applicable
191
Managing Successful Programmes
Chapter 18 – Close the programme
192
Appendix A: Programme
documentation
Appendix A: Programme
documentation
A.1 Introduction
Appendix A: Programme documentation
This appendix provides an explanation of the information that is required to manage a programme successfully.
It explains what documentation you should establish, where the information could be sourced from, and what to
consider including in the contents. You will also find details on who should be involved in creating the
documentation and what their role should be in the process. The format of the information is indicative and
intentionally non-prescriptive. This enables organizations to structure, store, and integrate information into their
existing corporate governance frameworks. It is more important for organizations to identify and maintain the
information to support their programme in a form that is appropriate for them. Therefore, the following
information descriptions should be seen as flexible checklists rather than rigid templates.
For example, the programme brief contains information that many organizations could also include in an outline
business case. Therefore, the use of either term should be seen as acceptable. It is the process of developing,
capturing, analysing, and acting on the information rather than the title that is important.
A.2 Working with programme information
A programme exists within a dynamic environment. As such, it is likely that information will be constantly
changing. The programme’s knowledge will increase which should be reflected in the information used to maintain
context and manage delivery. This appendix is not intended to provide templates. It is guidance on what should be
included when constructing your documentation and when you should review and update the contents. It is
perfectly acceptable to integrate information into aggregated documents to make life easier. The level and structure
of programme information should be appropriate to the needs of the individual programme or organization. Bear in
mind that there is core information within a programme that is cross-referenced in multiple documents. You may
need to create an indexing system within your programme to enable cross-referencing of this core information. For
example, the benefit profile states that you should identify risks to the achievement of the benefit. These risks
should also be contained within your risk register, where the impact assessment should include reference to the
implications of the risk on that benefit and contributing projects and other work, which in turn could create a
project-level or operational risks. This necessary replication of information requires careful tracking to ensure that
all instances of the same information are updated to maintain integrity throughout the programme documentation.
A.3 Programme information evolution
Table A.1 illustrates where and when documents are created. As information will be continually changing, the
programme information must be maintained and updated throughout the programme to reflect the changing
environment within which the programme exists and to maintain context.
Figure A1 is an example that shows how various documents, including the target operating model, benefits
map, benefit profiles, benefits realization plan, and programme plans might be developed together until an
acceptable business case emerges. Throughout each iteration, the SRO will judge whether the developing
business case is likely to be good enough for formal approval by the sponsoring group.
Section A.4 describes the individual documents in terms of their purpose and content.
194
Table A.1 Document creation
Document
Process during which it is created
Programme mandate
Before identify the programme
Programme brief
Identify the programme
Programme strategy
Identify the programme
Programme plans
Identify the programme
Vision statement
Design the outcomes
Target operating model
Design the outcomes
Benefit profile
Design the outcomes
Benefits map
Design the outcomes
Risk register
Design the outcomes
Issue register
Design the outcomes
Decision register
Design the outcomes
Business case
Design the outcomes
Adapt vision
and strategy in
line with new
information
Vision statement
Programme strategy
Adapt benefits
in line with new
information
Adapt plans to
deliver benefits
in line with
information
Benefits map
Benefit profiles
Target operating
model
Risk, issue and
decision registers
(updated throughout)
Delivery plan
Other plans
(how target operating model
will be delivered)
Benefits
realization plan
(how benefits
will be achieved)
Adapt future
state design
in line with
new information
Adapt plans
to deliver
capabilities in
line with new
information
Business case
(balance of cost, time, and risk
to deliver the target operating
model and realize benefits)
Figure A.1 Relationship between the various items of programme information
195
Appendix A: Programme documentation
Programme brief
Managing Successful Programmes
A.4 Programme documents
A.4.1
Benefit profile
Purpose
To provide a description of the attributes and interdependencies of a single benefit and to detail how it will be
realized and measured
Typical contents
Description of the benefit, including:
● the organizational objectives to which it relates
● the benefit type
● how the benefit will be measured (financial where possible)
● key performance indicators (KPIs) in the business operations that will be affected, both immediately after
realization and in the future
● current baseline performance levels and the anticipated improvement trajectory
● outcomes that need to be embedded to enable realization
● related capabilities that need to be delivered, transitioned, and adopted
Appendix A: Programme documentation
● the business changes required (e.g. to processes, culture, people, and policies)
● the costs of embedding the outcome and realizing the benefit
● related issues and risks
● any dependency on events or other projects/programmes outside of this programme
● the operational owner of the benefit and the operations that will receive this benefit
● the person responsible for realizing this benefit (usually the BCM)
● any related (intended) dis-benefits and how these will be managed
Notes
The minimum contents of a benefit profile are:
● Description What precisely is the benefit?
● Observable outcomes What are the verifiable differences that will be noticeable after the outcomes are
embedded?
● Attribution Where will this benefit arise? Can the programme claim the entirety of its contribution (i.e. no
other actions are needed outside of the programme to realize the benefit)? Are the accountability and
responsibility for delivering the change clear?
● Measurement How will the achievement of the benefit be measured, and over what timeframe?
Some organizations find it helpful to have a benefit profile for individual dis-benefits. Others prefer to refer to the
management of dis-benefits in the same profile as the benefit from a particular outcome.
A.4.2
Benefits map
Purpose
To show the relationship between outputs, capabilities, outcomes, benefits, dis-benefits, and organizational
objectives
Typical contents
A visual representation of the path to benefits that relates to the:
● outputs of projects and other work
● capabilities
● outcomes of benefit (or dis-benefit)
● benefits to be measured
● organizational objectives of the programme
Notes
One way to create a benefits map is to start with the organizational objectives on the left, decomposing them (via
measurable benefits) to outcomes, capabilities, and outputs of projects or other work on the right. Working from
organizational objectives to outputs answers the question ‘how’.
An alternative way is to start with outputs on the left, and aggregate them through capabilities, outcomes, and
benefits to the organizational objectives on the right. Working from outputs to organizational objectives answers
the question ‘why?’.
196
Appendix A: Programme documentation
A.4.3
Business case
Purpose
To describe the overall costs, the planned benefits realization, and the risk profile of the programme in order to
assess its viability and make appropriate management decisions about its continued justification
Typical contents
The organizational objectives of the investing organization(s)
Value of benefits in measurable terms, ideally financial
Costs of delivering capabilities and embedding outcomes of benefit
Timing of investments and intended changes
Risk to achievement of outcomes of benefit and associated financial contingency
Assessment of viability of the overall business case
Notes
Reviewing the business case provides answers to the following questions:
● Does the programme continue to align with the strategic objectives of the investing organization(s)?
● Does the programme remain affordable?
● Do the programme outcomes remain achievable?
● Does the programme continue to demonstrate value for money in terms of the balance between benefits
and costs?
A.4.4
Decision register
Purpose
To record decisions made by each governance board, providing an audit trail of decisions and their underpinning
rationales
Typical contents
Decision description
Options considered
Choice made and rationale
Decision owner
Relevant dates
Notes
A.4.5
Decisions happen many times during the programme. Issues and risks require particular approaches to decisionmaking and separate registers are maintained for each of them.
Issue register
Purpose
To record issues and the impact on objectives if not managed; document the issue owner with responsibility for
resolution; and track the resolution of the issue
Typical contents
Issue description
Impact on the programme if not resolved
Issue owner
Actions to resolve (ideally with costs)
Relevant dates
197
Appendix A: Programme documentation
● Does the financial contingency provide realistic cover for knowable risks?
Managing Successful Programmes
A.4.6
Programme brief
Purpose
To validate and build from the programme mandate and create the information that represents evolving thinking
about a number of the programme’s areas
Typical contents
Initial vision
Outcomes
Benefits
Costs of building and embedding new capabilities
Risks to the achievement of costs, outcomes, and benefits
Early ideas on funding and cash flows
Notes
The programme brief is often said to be the ‘first draft’ business case.
The programme brief may be independently reviewed. This ensures that it reflects the objectives, high-level costs,
benefits, timeframes, and risks of the programme and the extent to which the organization has the capacity and
capability to deliver and realize the expected benefits.
Appendix A: Programme documentation
A.4.7
Programme mandate
Purpose
To initiate early thinking about a programme
Typical contents
Strategic or operational drivers for the programme
Initial information about the internal and external organizations likely to be involved and their roles
Critical success factors against which the programme will be justified and judged
Any assumptions and constraints
Initial budget to create the programme brief
Initial input to the programme brief and vision statement
Notes
A.4.8
The programme mandate may be received from the executive management in any format or it may be derived
from strategic planning or policy development cycles. It may not be received as a single, cohesive document.
Programme plans
Purpose
To define the specific arrangements for implementing the programme strategy and for directing the team.
Programme plans answer the more detailed questions of ‘who’, ‘when’, and ‘how’ in order to deliver the outcomes
of benefit over time
Typical contents
Delivery plan Scheduling the constituent projects and other work of the programme to show their relative
timescales, resources, and dependencies. The plan covers the programme as a whole and the next tranche in
detail
Benefits realization plan Detailing the scope and schedule for all benefits realization related work
Stakeholder engagement and communications plan Detailing how stakeholders are identified, prioritized, and
engaged over the life of the programme, including two-way communication and feedback
Assurance plan Detailing the scope and timing of the assurance activities that will be used to provide
transparency and confidence to the sponsoring group that the programme is on track to deliver the desired
outcomes of benefit
Financial plan Detailing how costs and benefits are budgeted, monitored, and measured over time, as well as
the process for managing variations from the plan and the methods of forecasting future performance
Notes
198
MSP does not require a plan for every approach, as in some scenarios the approach will be sufficient to meet the
programme’s needs.
Appendix A: Programme documentation
A.4.9
Programme strategy
Purpose
To define the governance and control environment for a programme in line with the corporate governance
requirements of the investing organization(s) and to ensure that MSP principles are applied throughout the
programme lifecycle
Typical contents
The programme strategy should be a single document containing a number of sections that outline the steps
necessary to establish effective governance and control across each theme.
The various sections in the programme strategy should be derived from the approach information specified in
each theme. These are the:
● governance approach in the organization theme
● stakeholder engagement and communications approach in the organization theme
● design approach in the design theme
● funding approach in the justification theme
● delivery approach in the structure theme
● resourcing approach in the structure theme
● knowledge and learning approach in the knowledge theme
● assurance approach in the assurance theme
● decision-making approach in the decisions theme
● issue resolution approach in the decisions theme
● risk response approach in the decisions theme
Notes
A.4.10
The programme strategy answers the questions of ‘why’ and ‘what’ with respect to the programme’s governance
and control framework.
Risk register
Purpose
To record those uncertain events that would affect one or more programme objectives
Typical contents
Risk description
Likelihood of the risk occurring
Impact on the programme if the risk does occur
Proximity of the risk
Risk owner
Risk responses (ideally with costs)
Planned residual likelihood and impact (assuming responses are effective)
Relevant dates
199
Appendix A: Programme documentation
● information approach in the knowledge theme
Managing Successful Programmes
A.4.11
Target operating model
Purpose
To articulate the future organization structure, its working practices and processes, the information it requires,
and the technology that supports its operations
Typical contents
Processes The working practices, processes, and detailed process steps, including performance measures
Culture The key elements of organization design, such as the culture, ethos, and style of the organization. The
values of the organization in the future
Organization The capabilities needed for the future. How these will be supported in terms of organization structure,
staffing levels, roles, and responsibilities, as well as the training and competences required for each role
Technology The technology of all types, including IT systems and tools to support people to work effectively in
the future
Infrastructure The physical infrastructure, such as buildings, equipment, and machinery, and the
accommodation and workspaces for the people in the new organization structure
Information and data The information and data required for future business operations and performance
management
Knowledge and learning How this will be supported in the future organization, building in access to and curation
of knowledge, and ongoing learning
Appendix A: Programme documentation
Notes
The target operating model is not concerned with how to reach the future state. In most cases, there will be
many different possibilities, passing through multiple intermediate operating models and landing points.
It is important that all of the elements are considered in depth. It is easy for one aspect to overpower the others
and this needs to be avoided.
A.4.12
Vision statement
Purpose
To document the vision for the programme in a way that enables engagement, motivation, and alignment of the
large community of stakeholders involved in the programme, possibly across multiple organizations
Typical contents
Outward-facing description of the future state that is:
● concise
● understandable by a wide range of stakeholders
● engaging
● sufficiently motivating to make maintaining the current state undesirable
Notes
● When writing a vision statement, the following points are useful:
● A vision statement does not need to include definite timings, unless it is time-sensitive
● Avoid using detailed, measurable targets. Targets are more usefully captured in the business case and target
operating model
● Avoid including details that detract from the compelling nature of the vision
200
Further research
Further research
AXELOS publications
Best-practice publications in the area of portfolio, programme, and project management include:
● Managing Successful Projects with PRINCE2® (6th edition) This is a structured method to help effective
project management via clearly defined products. Key themes that feature throughout PRINCE2 are the
dependence on a viable business case confirming the delivery of measurable benefits that are aligned with
an organization’s objectives and strategy, while ensuring the management of risks, costs, and quality.
● PRINCE2 Agile® This was developed in response to demand from user communities. It is the world’s most
complete agile project management solution, combining the flexibility and responsiveness of agile with the
governance of PRINCE2. It provides the structure and flexible controls of PRINCE2 and demonstrates how
they can be used with agile concepts, methods, and techniques.
Further research
● A Guide to AgileSHIFT® Designed to prepare and equip everyone in an organization for transformational
change, the guide provides insights into why organizations need to transform and offers guidance to support
a shift towards enterprise agility. AgileSHIFT will create and support the champions of change that your
business needs to thrive in an increasingly competitive and disruptive environment.
● Management of Portfolios (MoP®) Portfolio management concerns the twin issues of how to do the ‘right’
projects and programmes in the context of the organization’s strategic objectives, and how to do them
‘correctly’ in terms of achieving delivery and benefits at a collective level. MoP considers the principles upon
which effective portfolio management is based; the key practices in the portfolio definition and delivery
cycles; and guidance on how to implement portfolio management and sustain progress in a wide variety of
organizations.
● Management of Risk (M_o_R®) M_o_R offers an effective framework for taking informed decisions about
the risks that affect performance objectives. The framework allows organizations to assess risk accurately
(selecting the correct responses to threats and opportunities created by uncertainty) and thereby improve
their service delivery.
● Management of Value (MoV®) This is a cross-sector and universally applicable guide on how to maximize
value in a way that takes account of organizations’ priorities, differing stakeholders’ needs and, at the same
time, uses resources as efficiently and effectively as possible. It will help organizations to deliver enhanced
value across their portfolio, programmes, projects, and operational activities to meet the challenges of
ever-more competitive and resource-constrained environments.
● Portfolio, Programme and Project Management Maturity Model (P3M3®) This is a tool for assessing an
organization’s current capabilities for managing its portfolios, programmes, and projects. It helps the
organization to implement change and improvements in a structured way. P3M3 is made up of three
models, and uses a five-level maturity framework to focus on seven process perspectives.
● Portfolio, Programme and Project Offices (P3O®) P3O provides universally applicable guidance to
successfully establish, develop, and maintain appropriate support structures. These structures will facilitate
the delivery of business objectives (portfolios), programmes, and projects within time, cost, quality, and
other organizational constraints.
202
Other global best-practice publications aimed to support organizations in other areas are:
● ITIL® This is the most widely recognized framework for IT and digitally enabled services in the world. It
supports organizations and individuals to gain optimal value from IT and digital services, defining the
direction with a clear service value system, aligning them with the business strategy and customer needs.
● RESILIA® This comprehensive portfolio of tools and training will enable your organization to achieve global
best practice in cybersecurity. RESILIA helps embed best-practice cybersecurity skills and behaviours
throughout your organization, regardless of employees’ roles or responsibilities. With RESILIA you can move
beyond effective cybersecurity and achieve solid cyber resilience.
For more information visit www.axelos.com.
Other sources
Association for Project Management (2007) Co-Directing Change – A guide to the governance of multi-owned
projects. APM.
Pullan, P. (2016) Virtual Leadership: Practical Strategies for Getting the Best Out of Virtual Work and Virtual
Teams. Kogan Page.
Pullan, P. and Archer, J. (2013) Business Analysis and Leadership: Influencing Change. Kogan Page.
Pullan, P. and Murray-Webster, R. (2011) A Short Guide to Facilitating Risk Management. Gower.
203
Further research
Murray-Webster, R. and Dalcher, D. (2019) APM Body of Knowledge (7th edition). Association for Project
Management.
Managing Successful Programmes
Further research
204
Glossary
Glossary
This glossary contains those terms that have a specific meaning in a programme using MSP.
It excludes the documents created as a result of implementing the MSP integrated framework. These are listed
in alphabetical order in Appendix A.
aggregated risk
The combined effect of risk to the programme objectives when risks are viewed collectively rather than
individually. This could include the outputs of particular scenarios or risk combinations.
approach
The term used to describe a mandatory section of the programme strategy. Approaches establish tailored
governance and controls for the particular work.
assumption
Glossary
A statement that is taken as being true for the purposes of planning, but which could change later. An
assumption is made where some facts are not yet known. There is a risk that assumptions are not stable and
therefore cannot be relied on.
assurance
A discipline that provides transparency and confidence to the sponsoring group that the programme will meet
its objectives by focusing activities on the most risky aspects of the programme.
audit
A type of assurance activity that provides a systematic and independent examination of records vs a defined
standard.
baseline
A reference level against which an entity is monitored and controlled.
benefit
The measurable improvement resulting from an outcome perceived as an advantage by the investing
organization(s) and which contributes towards one or more organizational objectives.
benefit erosion
An undesirable situation where the quantum of realized benefits is reduced over time. In business as usual, for
example, resource efficiencies claimed by the programme are reduced by hiring additional staff or contractors.
benefits management
The identification, definition, tracking, realization, and optimization of benefits within and beyond a programme.
best practice
A defined and proven method of managing events effectively.
206
budget
The sum of the estimates of income and expenditure for the programme that are delegated to the roles in the
programme organization.
business change manager (BCM)
A role that is accountable to the programme board and has overall and ongoing responsibility for the successful
day-to-day adoption of new capabilities in the investing organization(s) in support of the realization of outcomes
of benefit on behalf of the senior responsible owner (SRO).
business as usual (BAU)
The ways of working used by an organization to achieve its objectives in its steady state.
capability
The completed set of project outputs required to deliver an outcome; this exists prior to transition. It is a
service, function, or operation that enables the organization to exploit opportunities.
cash flow
The net amount of cash and cash-equivalents that the programme requires to pay for resources over time.
Glossary
change agent
The people deployed by the investing organization(s) to shape, drive, and implement change.
change control
The procedure that ensures that all changes which may affect the programme’s agreed objectives are identified
and assessed, and then approved, rejected, or deferred.
change recipient
The people in the investing organization(s) who are expected to change their ways of working.
community of practice
A learning network of people who share a skill and who improve as they interact and learn from each other on a
regular basis.
continual improvement
A delivery mode used for improvement work that enables an organization to identify waste in a process or
system and work to eliminate this.
corporate governance
The means by which an organization is directed and controlled. At the level of a legal entity, corporate
governance is focused on maintaining a sound system of internal control by which the directors and officers of
the organization ensure that effective management systems are in place to protect assets, earning capacity, and
the reputation of the organization.
corporate portfolio
The totality of the change initiatives within an organization; it may comprise a number of programmes, standalone projects, and other initiatives that achieve congruence of change.
207
Managing Successful Programmes
current state
The existing operating model and performance of the organizations that will be impacted by a programme. Also
called ‘as-is state’.
decision point
An event or occurrence that triggers the need for programme governance to make decisions about the future of
the programme.
decision quality
A concept that supports organizations in making appropriate decisions by focusing on the decision-making
process.
decision tree
A technique that uses a tree-like model to evaluate different options to a problem by considering conditions,
probabilities, and consequences.
delegated limits of authority
Glossary
The limits for decision-making that are delegated to individual roles in an organization; the limits define the
levels of accountability of those roles.
dependency
An activity, output, decision, or resource that is required to achieve an aspect of the programme.
dis-benefit
The measurable decline resulting from an outcome perceived as negative by the investing organization(s) and
which detracts from one or more organizational objectives.
document
A record, in any format, used to evidence application of the MSP integrated framework.
enterprise agility
A condition of an organization that is able to be flexible and responsive to drivers in its environment. Programme
management enables enterprise agility. Also called ‘corporate agility’ or ‘organizational agility’.
financial contingency
The financial allowance that the investing organization(s) decides to make available to deal with identified and
unidentified risks.
financial measure of benefit
A metric that enables benefit to be evaluated in financial terms, e.g. cash saved or revenue growth.
funding mechanism
The way(s) that the investing organization(s) chooses to provide finances to the programme over time.
208
Glossary
future state
The defined future state of the organization at the end of the programme and documented in the target
operating model. Also called the ‘to-be state’ or ‘end-state’.
gated review
A structured review of a project, programme, or portfolio as part of the formal assurance arrangements carried
out at key decision points in the lifecycle to ensure that the decision to invest as per the agreed business case
remains valid.
health check
A type of assurance activity that examines a snapshot of performance status in order to identify which areas are
going as planned and which need attention. Unlike audits, health checks are focused on learning and
knowledge capture rather than compliance with a standard.
hybrid project lifecycle
A project delivery mode that combines a linear lifecycle for some phases or activities with an iterative lifecycle
for others.
An approach to delivering a programme that focuses on delivering benefits of value to stakeholders throughout
the programme lifecycle, adapting as necessary to align with new information.
investing organization
The body that carries the risks associated with funding the programme and realizing the beneficial outcome.
investment appraisal
A collection of techniques used to identify the viability of an investment as part of the creation of the business
case. The purpose of investment appraisal is to assess the viability of decisions and the value they generate.
issue
An unplanned event that has occurred and requires management action. It could be a problem, query, change
request, or a risk that has occurred.
issue owner
The person who is assigned to take responsibility for resolving the issue to the satisfaction of the programme’s
governance boards.
iterative project lifecycle
A project delivery mode that repeats aspects of the design or delivery with the objective of managing any
uncertainty of scope by allowing outputs to evolve as learning and discovery take place.
key performance indicator (KPI)
A metric (either financial or non-financial) that is used to set and measure progress towards an organizational
objective.
209
Glossary
incremental progression
Managing Successful Programmes
knowledge
An asset embedded tacitly in the minds of individuals or codified explicitly as information. Most knowledge is
tacit and only becomes explicit when there is an investment of effort to do so.
landing point
A control point, following delivery of a step-change in capability and benefits realization (tranche), at which a
programme can be redirected or closed.
lessons learned
Forms of new knowledge and/or understanding that arise from experience and which have been explicitly
learned by embedding them into ways of working.
lifecycle
Defines the interrelated steps, stages, phases, or processes that provide a structure for governing the
progression of work.
linear project lifecycle
Glossary
A project delivery mode that aims to complete the delivery of outputs within a single pass through a set of
distinct phases, completed sequentially.
maturity assessment
An assurance activity that enables the assessment and benchmarking of a programme vs a framework such
as P3M3.
multimodal delivery
The selection of project lifecycles and/or methods of delivering the work of a programme that are appropriate to
the task, the team, the individuals (including customers, stakeholders, leaders, and workers), and the context.
non-financial measure of benefit
A metric that enables a benefit (e.g. customer satisfaction) to be counted but not evaluated in financial terms.
opportunity
An uncertain event that would, if it occurred, have a favourable impact on programme objectives. Also called a
positive risk or upside risk.
organizational ability
The overall capability of an organization to perform the work required to deliver outcomes of benefit with its
current people, processes, and practices.
organizational capacity
The amount of work that an organization can deliver in a given period of time.
outcome
The result of change, normally affecting real-world behaviour and/or circumstances. Outcomes are desired when
a change is conceived. They are achieved as a result of the activities undertaken to effect the change.
210
Glossary
output
The tangible or intangible deliverable of an activity.
P3M3
The Portfolio, Programme and Project Management Maturity Model that provides a framework with which
organizations can assess their current performance and put in place improvement plans.
pace
The timing of programme delivery to ensure the appropriate balance between a number of factors. The factors
include delivery of capabilities, achievement of desired programme outcomes, available funds, maintenance of
current performance levels, and business as usual (BAU) activities.
policy
Formally documented management expectations and intentions, used to direct decisions and activities.
portfolio
The totality of an organization’s investment (or segment thereof) in the changes required to achieve its
strategic objectives.
Glossary
principle
A guiding obligation that is continually required to achieve value from programme management.
process
A structured set of activities that define the sequence of actions and their inputs and outputs to achieve a
specific objective.
programme
A temporary structure designed to lead multiple interrelated projects and other work in order to progressively
achieve outcomes of benefit for one or more organizations.
programme board
The governance board with delegated authority to drive delivery of the outcomes of benefit of the programme
within the defined constraints. Members of the programme board include (as a minimum) the senior responsible
owner (SRO), the programme manager, the business change manager (BCM), and the leader of the programme
office.
programme environment
The internal and external context of the programme comprising the ecosystem of stakeholders and the business
as usual (BAU) operations and functions of the investing organization(s).
programme governance
The framework of authority and accountability applied by the investing organization(s) to control the work of the
programme and ensure the creation of value.
programme management
The management of the temporary structure designed to lead multiple interrelated projects and other work in
order to progressively achieve outcomes of benefit for one or more organizations.
211
Managing Successful Programmes
programme manager
A role that is accountable to the programme board and has overall and ongoing responsibility for the successful
day-to-day leadership of the programme in support of the senior responsible owner (SRO).
programme office
A governance-supporting office, led by the programme office lead, with primary responsibility for managing
delivery and capacity controls for the programme. The programme office may be part of a wider governance
office such as a portfolio management office, or may work with other relevant governance offices such as a
project management office or a centre of excellence.
programme organization structure
The temporary organization that has been put in place to deliver the programme, including the governance
boards and supporting offices.
programme risk
An uncertain event that, if it occurs, will have an effect on the achievement of the programme’s objectives. The
exposure of the programme’s objectives to risk is determined by multiplying the perceived likelihood of each
threat or opportunity occurring by an estimate of the size of its impact on one or more of the objectives.
Glossary
programme risk appetite
The amount of risk the investing organization(s) is willing to accept in pursuing the benefits of the programme.
project
A temporary organization that is created for the purpose of delivering one or more business outputs according to
a specified business case.
proximity (of risk)
The time factor of risk (i.e. when the risk may occur). The impact of a risk may vary in severity depending on
when the risk occurs.
register
A formal repository, managed by the programme manager, that requires agreement by the sponsoring group on
its format, composition, and use. MSP has three registers: issue register, risk register, and decision register.
resources
The people, information, equipment, facilities, and funding required to deliver the planned work.
retrospective
A regular event that looks at how the process of doing work can be improved.
risk assessment
The term used for the identification, analysis, and evaluation of risks.
risk connectivity
An analysis of the relationships between risks, providing insight into how they might unfold.
212
Glossary
risk identification
The determination of what could pose a risk; a process to describe and list sources of risk (threats and
opportunities).
risk owner
The person who is assigned to take responsibility for responding to a risk to the satisfaction of the programme’s
governance boards.
risk prioritization
The process of determining which risks matter the most by considering the likelihood of occurrence, the size of
impact on objectives should the risk occur, and (sometimes) other factors such as risk proximity.
risk universe
A visualization of all the types of risk that could affect an entity.
senior responsible owner (SRO)
sensitivity analysis
A technique for understanding how different sources of uncertainty relate to the overall risk to objectives.
socio-political complexity
Difficulties facing the programme as a result of the number and divergence of the following factors: the people
involved; the level of politics or power-play to which the programme is subjected; the lack of stakeholder/
sponsorship commitment; the degree of resistance to the work being undertaken; a lack of shared
understanding of the programme’s goals, a failure to align with strategic goals; and the hidden agendas or
conflicting priorities of stakeholders.
sponsoring group
The governance board, which includes the senior leaders who are accountable to the executives of the
respective investing organizations. The sponsoring group is responsible for ensuring the alignment of the
programme’s objectives with the strategic direction of the organizations or organizational units involved.
stakeholder
Any individual, group, or organization that can affect, be affected by, or perceives itself to be affected by, a
programme.
stakeholder analysis
The process of identifying stakeholders and prioritizing the level and type of engagement of each, depending on
features such as their power, interest, influence, and alliances.
stakeholder engagement
A way of exercising influence and achieving positive outcomes through effective management of relationships.
213
Glossary
The single individual with ongoing accountability for the successful delivery of the outcomes of the programme.
The role is accountable to the sponsoring group and chairs the programme board. Also known in some
organizations as a sponsor.
Managing Successful Programmes
stakeholder mapping
A set of techniques that enables visualization of stakeholders and their relative position in the network of
individuals and groups that can affect, or be affected by, the programme.
target operating model
A detailed description of the future state of the investing organization(s) after the programme has finished,
including roles and responsibilities, culture, processes, technology, infrastructure, information and data, and
knowledge and learning.
temporary structure
The governance boards, supporting offices, and roles that are established to manage the programme.
terms of reference
The scope and limitations of the governance boards and supporting offices within the programme organization.
theme
An essential aspect of governance required to ensure that the programme is aligned with the principles. Themes
are collectively applied during the processes throughout the programme lifecycle.
Glossary
threat
An uncertain event that would, if it occurred, have a detrimental impact on the programme’s objectives. Also
called a negative or downside risk.
three lines of defence
The provision of three levels of assurance in line with the levels of delegated authority within the programme’s
organization.
timebox
A finite period of time when work is carried out to achieve a goal or meet an objective. The deadline should not
be moved, as the method of managing a timebox is to prioritize the work inside it. At a low level a timebox will
be a matter of days or weeks (e.g. a sprint). Higher-level timeboxes act as aggregated timeboxes and contain
lower-level timeboxes (e.g. stages).
tranche
The work required to deliver a step-change in capability and benefits realization. Several interrelated projects
and other work may be involved in a tranche. Work may be delivered incrementally across several tranches.
transition
The work done to hand over, commission, and adopt capabilities into business as usual (BAU) to embed
outcomes of benefit.
version control
The control of a specific product baseline (e.g. a document or version of computer code) that enables users to
know they are using the most up-to-date information.
vision
The desired future state of the investing organization(s) after the programme is completed.
214
Acknowledgements
Acknowledgements
AXELOS Ltd is grateful to everyone who has contributed to the development of this guidance and in particular
would like to thank the following people.
Lead editor
Dr Ruth Murray-Webster
Ruth is recognized as a leader of project-based organizational change and risk management, performing roles as
practitioner, adviser, facilitator, researcher, and author across most sectors. For more than 30 years, Ruth has
practised and advanced change and risk management approaches, developing commercially astute strategy
centred around emerging risks and disruptive trends.
Prior to returning in 2018 to her own company, Potentiality UK, Ruth was the director of the change portfolio
and group head of risk for a major port operator, and was also the director of risk in the boardroom practice for
KPMG LLP. Between 2008 and 2012, she researched organizational change from the perspective of the
recipients of change for an executive doctorate at Cranfield School of Management. Ruth is an associate fellow
at the University of Oxford: Saïd Business School and a teaching fellow at Warwick Business School.
Acknowledgements
Ruth’s interest in risk management arose from a passion to help organizations take educated risks, rather than
avoid them. She has co-authored numerous books on the human aspects of risk management and has also
published papers in the areas of project complexity, organizational ambidexterity through projects and
programmes, and multi-paradigmatic perspectives on business transformation programmes.
Ruth was awarded an honorary fellowship of the Association for Project Management in 2013 for her services
to risk and change. The synergies between the two disciplines continue to drive Ruth’s thinking, writing, and
practice.
Authoring team
Dr Penny Pullan
Penny helps organizations that are grappling with tricky projects and programmes of change, often involving
virtual teams spread across the world. Through her company Making Projects Work Ltd, she brings clarity,
making powerful communications and forging deep connections which help change to flow. Clients range from
pharmaceutical companies and IT companies to manufacturers, banks, and the UK government. She has hosted
the annual Virtual Working Summit since 2010.
Penny’s previous books include Virtual Leadership: Practical Strategies for Getting the Best Out of Virtual Work
and Virtual Teams (2016), Business Analysis and Leadership: Influencing Change (2013), and A Short Guide to
Facilitating Risk Management (2011). She contributed two sections to the latest APM Body of Knowledge
(2019). Her forthcoming book is Making Workshops Work: Creative Collaboration for Our Time.
As well as being a project management professional (PMP) and a member of the APM, BCS, IAF, IET, PMI, and
PSA, Penny still remains a chartered engineer.
216
Sue Taylor
Sue is an independent consultant, trainer, and practitioner in portfolio, programme, and project management.
She has worked across the Asia-Pacific (APAC) region for various clients in financial services, infrastructure, and
government agencies. She is an accredited trainer for PRINCE2, MSP, MoP, P3O, agile project and programme
management, change management, and business case development frameworks, and a consultant for P3M3.
Sue is experienced in leading and managing PMOs and providing assurance services, focusing on helping
organizations apply frameworks pragmatically to achieve real business improvements. She is a qualified
Gateway reviewer.
Sue was a member of the authoring team for Managing Successful Projects with PRINCE2 in 2009 and was
part of the reference and review groups for the 2011 P3O and 2017 PRINCE2 refreshes. She has also written
study guides for the PRINCE2 and P3O exams, and An Introduction to PRINCE2: Managing and Directing
Successful Projects (2009). Sue is currently the chief examiner for P3O on behalf of AXELOS.
Dr Andrew Schuster
Andrew is a practitioner, academic, and consultant focused on the application of good practice to large-scale
organizational transformation. As a practitioner, Andrew worked extensively on delivering major programmes in
public organizations in both Canada and the UK, including the UK National Health Service and central
government. As a consultant, he has held roles at PwC Canada and PwC UK as director of transformation
assurance, advising clients that are investing heavily in organizational transformation.
Andrew is a project management professional (PMP) and certified management consultant (CMC), fellow of the
APM (FAPM) and fellow of the Institute of Consulting (FIC).
Project team
David Atkins
Content delivery and production manager
Richard Bell
Senior commissioning editor
Jose Carmona Orbezo
Head of marketing and product management
Rachida Chekaf
Head of translations
Sarah Conner
Production editor
John Edmonds
PPM portfolio development manager
Ricky Elizabeth
Brand and design manager
Jelena Kaila
Qualifications and assessment specialist
Margo Leach
Chief product officer
Adrian Newman
Project manager
Will de Ruyter
PPM product development coordinator
Ro’isin Singh
Senior project editor
Angela Woodward
Senior qualifications and assessment specialist
Yanni Zuo
Product management lead
217
Acknowledgements
As an academic, Andrew achieved a degree in doctorate business administration at Cranfield University. His
research focuses on projectification and the development of programme management capability in public-sector
organizations. He is a contributor to various practitioner books, including Managing Successful Programmes
(2011), Management of Risk (2010) and Co-directing Change (2007).
Managing Successful Programmes
Examiners
Adrian Hicks, Kalamunda Consulting Ltd
Lead examiner
Michelle Rowland, A&J Project Management Ltd
Chief examiner
Global review group
Acknowledgements
Ray Ahern, Tanner James Management Consultants Pty Ltd; Marwan Alarainy, Bakkah Inc.; Tom Alexander,
RedQuadrant; Mohammed Alfaifi, Bakkah Inc.; Barry Anderson, Tanner James Management Consultants Pty
Ltd; Nick Ashcroft, MOD; James Bawtree, PMLogic; Tanya Benson, Accenture; Mark S. Blanke, OwlPoint;
Robert Buttrick, Project Workout Ltd; Dr Ian Clarkson, QA Ltd; Tracey Copland, PM-Partners Group; Alistair
Cranmer, Oppidum; Milvio DiBartolomeo; Nina Drejer, Global Business Development; Elissa Farrow, About Your
Transition; Ralf Finchett Jnr, Planuz; Luca Gambetti, E-quality Italia; Neil Glover; Adrian Hicks, Kalamunda
Consulting Ltd; John Howarth, Tanner James Management Consultants Pty Ltd; Mark Kouwenhoven, nthen;
Vincent Marsi, HiLogic Pty Ltd; Dan Martland, Eurofins Digital Testing; Ian McDermott, Synergy; Anne McGrath,
Knowledge Xchange Ltd; Victor Miles, Airbus; Richard Newton, Enixus Ltd; Klaus Nielsen, Global Business
Development; Brian Phillips, Yellowhouse; Loretta Pierce, überorganised; Nader K. Rad, Management Plaza;
Geoff Rankins, Inspiring Projects; Richard Rose, RichardARose Associates Ltd; Michelle Rowland, A&J Project
Management Ltd; Ian Santry, Home Office; Fiona Spencer; Nathan Steele; Mark Sutton, Yireh Ltd; Dave Tyler,
Shore PMS Ltd; Duncan Wade, The Human Interface Consultancy Ltd; Brian Wernham; Chris Woodcock,
Siemens; Anette Zobbe, Peak Consulting Group
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