Conceptual Framework of
Program Design
Ian J. Potter, Vice President Engineering
20th October 2011
Purpose
Setting the stage and foundation for
program design in the context of an RTO,
with theory and core principles
Picking Races and Creating Wins
through Collaboration
Normal Model?
I-CAN/Client Model?
Collaboration – what is it?
• Collaboration is working together to
achieve a goal.
o It is a recursive process where....organizations work
together to realize shared goals, by sharing knowledge,
learning and building consensus.
What is an RTO?
• Research and Technology Organisations (RTOs) are specialised
knowledge organisations dedicated to the development and transfer
of science and technology to the benefit of the economy and society.
• RTOs make a vital contribution to strengthening a region's economic
performance by supporting product and process innovation in all
branches of government, industry and services - in firms large and
small - as well as by developing technologies which contribute to
improved living standards and higher quality of life.
• RTOs build bridges between basic research and industrial
applications.
o They are innovative and competitive problem-solvers for all sectors of industry and
services.
o They are technology developers, adapters and transfer intermediaries, helping to ensure
more effective exploitation of research by the enterprise sector.
o They are state-of-the-art technology specialists providing expertise which customers do
not possess or cannot afford individually to maintain in-house.
o They are generic and sectoral know-how suppliers, fashioning multidisciplinary solutions
fitted to the needs of specific industries and trades, traditional sectors and SMEs.
Characteristics of World Class
Organizations
• Clear vision of what needs to be done
• Common understanding, buy-in and alignment to vision
• Knows processes better than competitors, uses best-practices
and standards to maximum advantage
• Knows its industry competitors better than anyone else
• Knows its customers better than anyone else
• Adapts to a changing environment and can respond rapidly to
customer behaviours
• Demonstrates its value offering clearly
• Has employees who are motivated and effectively utilized
• Innovative and committed to continuous improvement
• Competes for a market share on a customer-by-customer
basis, exceeds customer expectations
• Measures its performance and has a balanced perspective
Ten Best RTO Practices for Success
1.
2.
3.
4.
5.
6.
7.
8.
Understand drivers for industry change
Coordinate R&D with long range business plans
Focus on end-use customer needs
Agree upon clear, measurable project goals
Formal development process
Cross-functional teams
Coordinate development & commercialization
Determine, understand & measure end-user
needs
9. Refine projects with customer feedback
10. Hire/maintain the best people and expertise
Technology Readiness Level
Level
1
2
3
4
5
6
7
8
9
Definition
DESKTOP. Initiate transfer of scientific research to applied research and development.
DESKTOP. Identification and/ or evaluation of possible applications of the technology.
First level of PROOF OF CONCEPT. Analytical and bench scale study of key elements
of the technology.
LABORATORY. Bench scale study of the technology as a whole.
LABORATORY AND/OR PILOT. Bench scale study of integrated system in simulated
application.
PILOT. Scale up of technology and testing in simulated application.
DEMONSTRATION. Full scale demonstration of technology in industry setting.
COMMERCIAL. End of development, handover to commercial implementation.
COMMERCIAL. Continued improvements implemented.
Evolution of Innovation Metrics
1st Generation Input
Indicators
2nd Generation Output
indicators
3rd Generation
Innovation Indicators
4th Generation Process
Indicators
(1950s-60s)
(1970s-80s)
(1990s)
(2000 + emerging focus)
R&D expenditures
Patents
Innovation surveys
Knowledge
S&T Personnel
Publications
Indexing
Intangibles
Capital
Products
Networks
Tech intensity
Quality Change
Benchmarking
innovation capacity
Demand
Clusters
Management techniques
Risk/Return
System Dynamics
Strategic Management Construct
ROLE
Outcomes
$
Programs
Measures
Processes
Outputs
Strategic
Operational Inputs
People, Facilities, Equipment
Corporate Management Principles
•
•
•
•
Vision
Mission/Mandate
Values
Strategic Plan – 3 to 5 years outlook
o Longer term Goals and outcomes - measures
• Operating Plan – fiscal year
o Annual Goals and outcomes – measures
• Staff Performance Management and Recognition
Creating Clarity – Start with
Definitions
• Portfolio: a client sector segment falling within RTO’s
operating mandate
• Portfolio Outcome: a definitive goal in respect to a
challenge or opportunity within the sector
• Program: a portfolio of projects (or activities) focused on
reaching desired program and portfolio outcomes
• Project: a tactical activity undertaken to create a unique
product, service or result
• Project management focuses on delivering the specific
objectives of the project – program management is
focused on achieving the strategic objectives and
benefits of the integrated program
Programs need Projects
Parameter
Program Management
Project Management
Organisation
Semi-Permanent
Transient
Organisational Alignment
Analogous to building a
new company
Team alignment
Outline Definition
Strategic business outcome Defined scope, schedule
and budget
Risk Management
All risks associated with
strategy
Management of assumed
risks
Execution Planning
Program wide execution
plan
Project execution plan
Stakeholder Engagement
Identification and
integration of stakeholder
interests – effective CRM
Interaction as needed to
advanced project
Background Reading
• Relative shortage of good papers
o Some elements available
o More about process than practical operations
• Learn by doing
• Based on standard business plan
development
Program Principles
• RTO will “compete” on the basis of
program leadership
• “RTO” will build and manage programs for
the benefit of XXX – outcomes through our
clients
• Program performance guides us
• Focus
Technology Roadmaps?
Stage Gating: 10 Steps to Effective
Program Management
1. Critical issues and outcome target identification
2. Technology and deployment gaps
3. Corporate role/Mandate alignment
4. Stakeholders and partners
5. Deployment pathways and strategies
6. Program definition – objectives, budgets, milestones
7. Cost benefit
8. Key risks and success probabilities
9. Leadership plan
10. Program implementation
Program Design Process
• Iterative process of reflection and “market”
testing to refine program definition
• Stakeholder engagement critical
o Management support
o Customer interest
o Partnership interest
• Effective design often secures early
commitments to build momentum
Why Programs/Projects Fail?
Inappropriate leadership style, lack of vision,
unrealistic expectations, Ill-defined scope, poor
role definition, inadequate communications, lack
of buy-in, low morale, lack of training and skills,
poor teaming, lack of culture conducive to
program and project management, lack of trust,
poor scope & estimates, unrealistic timeframe,
inefficient resource allocation, no change mgmt,
mismanagement of projects, management in
wrong roles, unrealistic goals, lacks enough
milestones, lack of termination policy….
Program Assessment
•
•
•
•
•
•
•
Need – issue with objective rationale
Value – quantified
Impact – minor, low, medium, high
Key risks – define with potential impact
Risk/success – possible, unlikely, likely, almost certain
Investment – overall (multi-year) cost
Benefit/Cost – low, medium, high
30 second clearly understood value proposition – public
interest
Difference it will make - clear game plan - easily measured
over time
The Value Proposition - Defining
High Impact Program Agendas
•
Within each area, what big issues do we face?
o
o
o
o
•
•
What is the driver behind the issue?
Who cares about it (stakeholders and influencers)?
What difference will it make, to whom and when?
Can we define a value proposition?
What technology gap makes it expensive, hard or impossible to deal with
the issue? Do we understand the challenge? How does it fit within the
overall system?
What kind of a program would it take to create a solution?
o What critical challenges need to be addressed?
o What are the risks – technical, engineering, business, political, economic, regulatory, market and deployment,
schedule, partners and alliances?
o Have we done a market assessment?
o Do we understand the deployment channels? Do we have the business smarts?
•
Can we carve out a natural advantage in and for Canada?
o What is the state of the art?
o What are others around the world doing in the area?
o What would it make sense to do here?
Example – Value Proposition
• Give me money and I’ll give you value?
• (I promise)?
Example – Value Proposition
• Increase Alberta’s recoverable gas
reserves
• From 150 Tcf
• by 12 Tcf
• by 2017
• through improved recovery technology
• at less than $6.50 per thousand scf
– (baseline 2011 - $8.49 per thousand scf)
Depth of Intervention of Program
Management Philosophy
Operational
“What we are doing is right – we just need to do it better”
– no change to mission, values, strategy
Shallow
Strategic
Deep
“The fundamentals are right – but we need to refocus”
– change objectives, strategies, possibly mission
Cultural
“We have to change the way we think and act”
– change vision, values and leadership
Paradigm
“We have to recreate the business – or disappear”
– change, redefine and recreate the total enterprise
Deepest
Degree of Difficulty
What is culture?
• Culture is a set of stated and unstated, explicit and
implicit beliefs and assumptions that are shared by a
group
• Culture is invisible, unconscious, ever-present, and
lasting feature that shapes and harmonizes behavior of
all members
• Cultures can have subcultures based on geography,
gender, age, …
What does an effective program
culture enable?
The business perspective:
• Focuses all efforts in the organization
towards the same business goals
o Builds delivery capacity within an organization
o Moves program management from a tactical delivery control
mechanism to a strategic organizational competency
o Generates commitment to organizational initiatives
o Sense of purpose
• Focuses on the client(s)
• Effective resource allocation
What does an effective program
culture enable?
The human perspective:
• The individuals in an organization are the
organization’s most important resources
• A mutual program culture with an understanding of
team work and management, can liberate
creativity and make use of the knowledge and
experiences of all individuals
• Allows all organizational members to know how
they influence program outcomes
• Shares the responsibility between all team
members for the success of the program
Building a Program
Management Culture Requires:
• Senior Management support and (firm) commitment
• Common language for talking about programs and
program management
• A minimum set of corporate fundamentals:
o
o
o
o
o
o
Linking program management to organizational strategy
Communications
Risk Management in a Program Environment
Managing Innovation Programs
Building Effective Program and project Teams
The Importance of Client Relationships
• Use of change agents to support the change
What is a great program? The
Outcome!
• Works to realize a shared vision that is meaningful and
inspiring to those involved inside and outside the RTO
• Fosters a sense of teamwork where individuals feel that
their contribution has been valued and that they have
made a difference
• Instils trust & mutual respect both inside and outside the
RTO
• Produces a successful track record that has earned
recognition from outside the RTO
• Showcases “Region” as a place of innovation
• Through industry, builds the “Region” economy