Projects & Programs are two different animals, Projects
& Programs are two different animals,
don't underestimate the gap
December 2014, Moscow
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Thomas Walenta, PgMP, PMP, PMI Fellow
thwalenta@online.de
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Not typical attributes of project managers:
Strategy alignment, positive towards change, strategy execution
Strategy alignment, positive towards change, strategy execution
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Which profession has these attributes?
A Study reveals a disturbing reality: even among projects that are d li
delivered at least 90% on time & on budget, majority fails to d l
90%
i
&
b d
j i f il
deliver 'business expectations'.
Business outcome expectations include
expectations include
 Delivery quality
p
 End‐user adoption
 Business case attainment
 Sponsor satisfaction
S
ti f ti
Failed
18%
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Succeeded
Challenged
53%
The top‐performing projects in terms of budget and schedule compliance attain on The
top performing projects in terms of budget29%
and schedule compliance attain on
average only 53% of their business outcome expectations.
What did the project managers miss?
What did the project managers miss?
Corporate Executive Board (CEB), www.pmo.executiveboard.com, 2009 Study 'Project Managing Business Outcome'
Scope, budget, milestones = business benefits?
p ,
g ,
A benefit is the 'desired result of an initiative undertaken
to meet a need or solve a problem'
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Successfull project delivered
product in time & budget
Successfull program achieved
benefits and created value
Are Project Managers educated to transform business goals to requirements and benefits?
Project Manager‘s curriculums & certifications focus on
–
Magic triangle scope/quality – cost – time
–
Supporting processes like risk, quality, procuring
–
Soft skills to lead a team
–
Organizational skills –
scope/quality
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Technology
gy
time
cost
How about strategic alignment, benefits realization and
C‐Suite communication?
PM Standards and Methodologies provide no real help
g p
p to Project j
Managers in delivering benefits
• Benefits are specific to an industry / a company
• Benefits delivery is often seen as a primary task of middle management, consulting companies or not addressed specifically g
p
p
y
• Word 'Benefits' is found 24 times in PMBoK Guide 5th edition, but 129 times in PgM Standard 3rd edition, having benefits management as key times in PgM Standard
edition, having benefits management as key
domain and related processes and artefacts
• Prince2 mentions benefits in the business case and benefits review plan (('Managing
Managing Successful Programs
Successful Programs' MSP covers benefits management) MSP covers benefits management)
• IPMA ICB does not have a focus on benefits management, offers Success Criteria for projects
• ISO 21500: projects contribute to benefits, which are created by ISO 21500
j t
t ib t t b
fit
hi h
t db
operations
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How to successfully to fulfill business expectations = deliver benefits to stakeholders?
d li
b
fit t t k h ld ?
E i
Environment
t ((society,
i t jjurisdiction,
i di ti
regulators,
l t
market
k t etc)
t )
?
Stakeholders
(users)
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Benefits
Stakeholders
(
(sponsors)
)
Re
equirements
s
Strategy
Understand what has to be done in addition to project management ‐
t and how it can be accomplished!
dh
it
b
li h d!
E i
Environment
t
Program
strategy
Scope
Cost
Time
Project B
deliver
able
Discrete
benefit
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Re
equirements
s
Stakeholders
(sponsors)
deliver
able
Project A
Component C
Benef
its
Identfi
cation
Benef
its
Analy
sis &
Plann
ing
Benefits
(co
onsolidated))
Scope
Cost
Time
Discrete
benefit
Benef
its
Deliv
ery
Benef
its
transit
ion
Benef
its
sustai
nment
Stakeholders
(users)
How to successfully to fulfill business expectations = deliver benefits to stakeholders?
d li
b
fit t t k h ld ?
E i
Environment
t ((society,
i t jjurisdiction,
i di ti
regulators,
l t
market
k t etc)
t )
Stakeholders
(users)
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Benefits
Stakeholders
(
(sponsors)
)
Re
equirements
s
Strategy
Program Benefits Management transforms stakeholder requirements into sustained benefits
requirements into sustained benefits
Business
Case
Benef
its
Identfi
cation
Benef
its
Analy
sis &
Plann
ing
Program
Mission
Benefits
Realisation
Plan
Define
CSFs
Measurement
Structure
Define
Program
Components
Benef
its
Deliv
ery
Start,
monitor &
transition
components
Evaluate
KPIs
Benef
its
transit
ion
Transition
Plan
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Beneff
B
its
sustai
nment
Program Lifecycle
Program definition
Program benefits
delivery
Define
KPIs
Program closure
Based on PMI Standard for Program Mgmt, 3rd Ed. & IBM's WWPgMM
Performance
Baseline
Monitor
organizational
environment
Verify
Transition
Operational
tasks
Who and what influences requirements?
Who can control requirements? q
Project or Program Manager?
E i
Environment
t
strategy
Stakeholders
(sponsors)
Project
deliver
able
Discrete
benefit
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Ben
nefits
Scope
Cost
Time
Stakeholders
(users)
Differences between projects, programs and portfolios
p
Project
Program
Portfolio
Objective
Create previously agreed
deliverables
Achieve previously agreed
and defined strategic
objectives, realize business
b
benefits
fit
Permanently attempt to
reach the mission of the
organization
Duration
Finite, short term
Temporary, might be
flexible
Infinite
Focus off
F
Mgmt
S
Scope
and
d deliverables
d li
bl
Value
V
l
and
d Benefits
B
fit
Stakeholder Engagement
Interfaces and Integration
Prioritization
P
i iti ti
off Projects
P j t &
Management of Resources
Decisionmaking
In phases, based on
milestones/gates
il t
/ t
In stages/projects, based
on benefits
b
fit realization
li ti
In periods, based on
managementt cycle
l
Sponsor
Program Manager or
Project Sponsor
Strategic Objective Owner
(Business Exec Sponsor)
Organization (CEO, COO)
Success
In scope, quality, budget,
time & stakeholder
satisfaction
Achieve benefits & satisfy
stakeholder needs
Aggregate investment
performance
What is it
about
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Efficiency
y
Effectiveness
Agility
g y
Program Management is outward focussed while Project Management mainly deals with project internals Program
Project
Strategy /
Benefits
Scope /
Quality
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Understand
Create
Achieve
Stakeholders
Plan
Control
Deliver
Governance
Cost
Time
Capabilities of a successful program manager are different to those p
p g
g
of a good project manager
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PMI Congress 2003 – Europe Paper
Pellegrinelli, Partington and Young
Example: How I became a Program Manager
2001/2: working as a multi project manager for an investment bank's IT
2002: was asked for a project assessment on a troubled EU SAP rollout
(my first encounter with SAP)
Issues
Main issues
identified:
identified:
parallel
- Unaligned
rollouts,
parallel
productive
rollouts,systems
productive
andsystems
SAP operations
and SAPunaligned
operations
Insufficient
- Insufficientcommunication
communicationwith
withstakeholder
stakeholdergroups
groups
Proposed a program management system (PMS)
Key attributes: enable integration and specific communication interfaces
And … was asked to implement it (took 3 months and about 10 people)
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Was then asked to run the remaining SAP rollouts as a program
(UK eastern Europe
(UK,
Europe, Russia
Russia, end: 2008)
A Program Management System (PMS) ensures the linkage between involved and affected stakeholder groups and the integration among projects and with ongoing tasks
projects and with ongoing tasks
Stakeholders,
e.g. Users
Business
Sponsors
Steering
Committee
Program Management
SLF1
Business
Strategy
SLF2
Architectual
Solution
Board
SLF3
Organizational
Change
Management
SLF4
Relationship
Management
SLF5
Quality
Assurance
/ Risk
SLF6
Program
Mgmt
Office
Strategic Layer Functions
SLF7
Test &
Transition
Management
SLF8
Resource
Management
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Project 1
Project 2
Project 3
.........
User
Specialist
Oper- Applic.
Help
Team
ations Mainten.
Desk
Project 6
Enduser
Operational Layer Functions
Training
(Projects Teams
(Projects,
Teams, Production)
Team
Project 5
Project 4
Source: PMI Global Congress Toronto 2005
Paper Th. Walenta
Transition Steps from Project to Program Orientation
(by Liam Dillon, ldillon@turlon.com)
1. Delivery >>> Business
10. Project Triangle >>>
Program triangle
9. Stress >>> Relaxation
8.Salaryy >>> Challenge
g
2. Schedules >>> Dependencies
3. Reporting >>> Escalation
Change the
thinking
Click to add text4. Scope >>> Strategy
7 Transfer >>> Transition
7.
5 Crisis >>> Conflict
5.
6. Team >>> Governance