Successful Program

Management

A Presentation to the AIPM NSW Chapter

Adel Khreich
9 June 2010

www.bluevisions.com.au
Blue Visions Management Pty Ltd
 The need for business change
Program management is a tool for business change

Programs support the desired business change

driven by business strategy and policy
Programs deliver the changes and the benefits
Projects create the new products and services

www.bluevisions.com.au
Blue Visions Management Pty Ltd 2
 The need for business change
The stimulus package

The Federal Government has unveiled a massive $42 billion

nation building and employment plan aimed at retaining
90,000 jobs over the next two years and insulating Australia
against the worst of the global economic recession

The Daily Telegraph

February 03, 2009

www.bluevisions.com.au
Blue Visions Management Pty Ltd 3
 Risks associated with business change
Common risks that we observe
Change plan is misaligned with strategy or alignment
not focused adequately
No proper mechanism to measure benefits of the
business change
Lack of prioritisation of budgets and resources
Lack of transparency of how the change initiative
initiates programs and projects
Lack of timely and relevant information to support
decisions
The loudest / strongest have bigger wins

www.bluevisions.com.au
Blue Visions Management Pty Ltd 4
 Risks associated with business change
Common risks that we observe
Lack of governance or inappropriate structures
Duplication occurs in the organisation
Interrelationships between programs and projects not
well understood
Processes to manage change are not clear or are
confused with project management processes
Lack of appropriate management tools

www.bluevisions.com.au
Blue Visions Management Pty Ltd 5
 What is program management?

Program management supports business change

Focused on achieving business benefits and alignment
with strategic objectives
Often ongoing, or long-term
Subject to both uncertainty and ambiguity
May contain elements of work outside the scope of the
discrete projects within the program
Establishes a learning-based value loop

www.bluevisions.com.au
Blue Visions Management Pty Ltd 6
 Programs in corporate structure

Group level OPERATIONS Project

ProjectPortfolio
PortfolioPlanning
Planningand
Planning and Management Management
and Management

PROGRAM
MANAGEMENT

PROJECT
MANAGEMENT

PEOPLE TOOLS
PROCESS METRICS

Source: PMI

www.bluevisions.com.au
Blue Visions Management Pty Ltd 7
 Differs from project & portfolios

Standard Definitions
Project Management Output driven (time, cost
and quality)

The application of knowledge, skills, tools, and techniques

to project activities to meet the project requirements.
Program Management Benefits driven (outcome
focused)
The centralized coordinated management of a program to
achieve the program's strategic objectives and
benefits.
Portfolio Management Strategy focused
The centralized management of one or more portfolios,
which includes identifying, prioritizing, authorizing,
managing, and controlling projects, programs, and
other related work, to achieve specific strategic
business objectives.
www.bluevisions.com.au
Blue Visions Management Pty Ltd 8
 Outcomes & benefits focused

FOCUS
Strategic Planning Vision, Outcomes,
KRAs, Objectives

FIT & VALUE

Project Portfolio Management

Is the portfolio achieving Portfolio Align, select, prioritise,
the Objectives?
Management balance, authorise, report,
changes

Are the programs Program MANAGE

delivering the benefits? Outcomes & benefits
Management

Are the projects Project MANAGE

performing? Outputs - time, cost,
Management scope & quality

www.bluevisions.com.au
Blue Visions Management Pty Ltd 9
 Characteristics of the 3PMs

Project Programme Portfolio

Product & physicals Benefit focus Strategy focus

focus
Singular endeavour Group of like Group of programs
projects and projects
aligned to strategy
Fixed term Ongoing Ongoing

Within a functional Normally crosses Across the whole

group organisational organisation
boundaries
Hierarchical Collaborative (inter- Collaborative
dependent)

www.bluevisions.com.au
Blue Visions Management Pty Ltd 10
 Life cycles

Corporate Strategy

Vision Strategic options Project Portfolio Implement strategy

Program delivery

Program set-up Mobilise Deliver benefits Benefits realisation

Project delivery
Initiate Plan Execute Control Close

www.bluevisions.com.au
Blue Visions Management Pty Ltd 11
 Typical program challenges
Lack of understanding of program management and
program manager roles
Lack of authority to drive governance and accountability
No process to kill non performing projects and
programs
Separation of the tools, processes and training
creating inconsistency
Duplications of effort in program management capability
Metrics inconsistent with process
No clear link back to benefits

www.bluevisions.com.au
Blue Visions Management Pty Ltd 12
 Successful program management

Increase efficiency and reduce business risks

Cut across hierarchical and functional silos to achieve
collaboration
Manage emergent threats, opportunities, complexity,
risks, issues, interdependencies and conflicting
priorities associated with business changes
Focus functional groups on a common goal
successful development of an integrated product or
service and ultimately the anticipated business results

www.bluevisions.com.au
Blue Visions Management Pty Ltd 13
 Examples of success
KPMG (2005) project management survey
successful companies were more focused on strategic alignment
and monitoring of the achievement of business benefits and the
establishment of PMOs
Hutchinson Telecoms
First to market in Australia with its 3G offer. Program management
was implemented from start (6 people in the business) to launch
(approx 800 people).
Government agencies
Health, Roads and Transport, Railcorp, Housing, Public Works and
Services and Centrelink use program management to deliver
service transformation

www.bluevisions.com.au
Blue Visions Management Pty Ltd 14
 Private sector competitive advantage
The competitive advantage of program management
goes right to the companys bottom line, improving its
P & L.

Program Management makes better, faster and

cheaper a reality.

Varian Semi-Conductors

www.bluevisions.com.au
Blue Visions Management Pty Ltd 15
 Program management trends 2010
Increased reliance on metrics and measurable
performance to demonstrate business value
Demand to understand impact of change on the
organisation
A test bed for the development of business strategy
More emphasis on governance
Greater recognition of the need to communicate with
and manage stakeholders

www.bluevisions.com.au
Blue Visions Management Pty Ltd 16
 Reported Success / Failure
2009 Business Week
only 18% of the companies with a globalisation
strategy perceived their global product and service
development programs to be very successful.
82% of companies believed their efforts failed to
produce intended business results
Often these failures are a result of a misalignment
between globalization strategy and effective
execution in a global environment

www.bluevisions.com.au
Blue Visions Management Pty Ltd 17
 Critical success factors as perceived
Global leaders identify 3 critical success factors to
achieve global business strategy
Effective program and project management
practices
Standard development processes
Standard product or service development tools

www.bluevisions.com.au
Blue Visions Management Pty Ltd 18
 Risk management
Business change involves risk
Risk should be managed across the whole business
Establish clear program objectives
Establish a review cycle (and maximise opportunities
for value creation)
Implement a proactive approach to handling risks and
uncertainties particularly during formation phase

www.bluevisions.com.au
Blue Visions Management Pty Ltd 19
 Program life cycle

PROGRAM LIFECYCLE

3.Establishing
1. Pre-
2. Program a Program
Program Set G1 G2
Set Up Management &
Up
Technical 4. Delivering the
Infrastructure G3 G4
incremental Benefits

5. Closing the
G5
Program

Benefits Management

Program Governance

Stakeholder Management

www.bluevisions.com.au
Blue Visions Management Pty Ltd 20
 How is value created?
Involve all levels of management to identify sustainable long
term value rather than knee jerk short term benefits
Value drivers linked to business benefits.
Drive efficiency and consistency
Mature or improve program management methodology, tools,
techniques and metrics
Demonstrate that the benefits of a program is greater than
independently delivered projects
Deliver and improve business capability
Demonstrate a learning culture through regular measurable
improvements
Focus on benefits and not products
Keep expectations realistic .
Manage stakeholders, communication and facilitation
Link risk management to value creation
www.bluevisions.com.au
Blue Visions Management Pty Ltd 21
 Private vs. government sectors
Private Sector Program Public Sector Program
Management Management
Strategic business Policy driven
development
Increase in market share Response to perceived/actual
service/social needs
Remain competitive Pressure on funding, IPART,
etc
Profit focus Rarely focused on profits
Global Local
Efficiencies Availability of funding and
annual cash flow cycles
www.bluevisions.com.au
Blue Visions Management Pty Ltd 22
 Private vs. government sectors
Private Sector Public Sector
Program Management Office:
- Set standards for - Often set standards but
achievement of business rarely manage
benefits implementation

- Deliver the product to - Influenced by political

market imperatives
- Teach the organisation -Can operate as a permanent
functional business unit
-Protracted approvals
processes

www.bluevisions.com.au
Blue Visions Management Pty Ltd 23
 Private vs. government sectors
Private Sector Public Sector
- Have sunset clauses - Tend to be permanent
department(s)
- Multiple PMOs
- Less documentation - Significant documentation
requirements to satisfy
policy/legislation
- Organisation focused - Subject to political
policies, procedures and influences
governance
- Reporting requirements - Significant compliance
increasing reporting requirements

www.bluevisions.com.au
Blue Visions Management Pty Ltd 24
 Industry best practice
Program management framework
To provide sufficient detail of understanding and the role
of program management among:
Client
Program team
External stakeholders

To effectively contribute to the successful delivery of the

business strategy

www.bluevisions.com.au
Blue Visions Management Pty Ltd 25
 Industry best practice

Program management framework

Program Strategy business, technology and market
strategy
Program organisation program management
structure must support highly integrated and
interdependent nature of projects within a program
Program processes governance, schedule, financial,
risk, stakeholder, communication, resource
management plans and controls
Program metrics focused on business aspects of the
program

www.bluevisions.com.au
Blue Visions Management Pty Ltd 26
 Industry best practice
Mature program management process
Established program lifecycle and processes
The program is governed using gate reviews
Dedicated program managers with expertise in
stakeholder management
Assesses strategic alignment at phase gate reviews
Independent phase gate reviewers

www.bluevisions.com.au
Blue Visions Management Pty Ltd 27
 Industry best practice
Program management systems
Universal and can be applied to every program
Self-validating and have been proven in practice
Empowering giving practitioners added ability to
influence and shape business change towards
success
Maintain links with corporate strategy
Inbuilt flexibility to manage emerging threats &
opportunities to business change
Focused on future and associated benefits

www.bluevisions.com.au
Blue Visions Management Pty Ltd 28
 Industry best practice
Program management office
Support / reporting model: Provides training,
facilitation, reporting, administration and develop /
maintain practice standards.
Enterprise PMO model: provides the framework for
the delivery of corporate strategy through
management of portfolio, program and projects
Delivery model: Actually responsible for the delivery
Project Control model: Reviews, audits and control
Resource model: Provide resources to other
functional business areas

www.bluevisions.com.au
Blue Visions Management Pty Ltd 29
 Program management domain
Research Organisational
emerging framework for Relationships
practices project execution and protocols
Coaching &
mentoring
Alignment of
projects to Program
corporate governance
goals Competency
development

Identification
Program Program

Analysis
Management Change
Benefits control

management
Business risk
Stakeholder & issues
Planning management
management

Transition
Realisation
Communications
Organisational management
Change
management

www.bluevisions.com.au
Blue Visions Management Pty Ltd 30
 Pre setup
Program business case assesses the feasibility of
investing in a program and obtains the means to align
execution to business strategy
Program alignment matrix identifies an organisations
business objectives and indicates the degree of
alignment of a program with each organisational
business objective
Program road map can provide a means to balance the
market needs with availability of development capacity
over a predetermined time period
Program complexity assessments help determine skill
set and experience required by program manager &
team
www.bluevisions.com.au
Blue Visions Management Pty Ltd 31
 Program setup

Early development of the program Vision Statement

as a description of the program outcomes
Expansion of vision statement into a blueprint to
provide a basis for modeling benefits and designing
the required projects and selection of optimum set of
solutions and routes
Look for quick wins with small incremental changes
Use of a series of tranches to implement new business
capability has proven more successful than a single
major change

www.bluevisions.com.au
Blue Visions Management Pty Ltd 32
 Program planning

Prepares for the future

Is an extension of strategic management
Program definition binds all the functions together to
execute the business strategy effectively
Develops the program scope, integrate cross project
implementation plans into the master program plan
Obtains management approval to proceed
Planning techniques can vary in accordance with
individual program situations

www.bluevisions.com.au
Blue Visions Management Pty Ltd 33
 Program communication

Must be willing to lead and consider all viewpoints with

focus on achievement of program vision and
objectives
Facilitate quick and effective decision making
Build stakeholder and program team members trust
Exhibit fairness to set expectation that all others will
behave in the same way
Communicate effectively in all directions and tailor
information to suit audience

www.bluevisions.com.au
Blue Visions Management Pty Ltd 34
 Learning from experience

Program is a learning experience as it has inbuilt

controls to reflect on and improves its own
performance during a program life
At the end of each program tranche, the program
management team seek new ways and opportunities
to improve the business outcomes from the program
Updating the program business case means that it is
optimised, fine-turned, taking advantage of both data
in emerging trends and a growing understanding of the
possibilities generated by the program

www.bluevisions.com.au
Blue Visions Management Pty Ltd 35
 Change control

Initial assessment is critical. Filtering poorly justified or

non-aligned changes prevents wasted effort with
limited program resources
Programs require a fast track process for time-
sensitive decisions and defining change control
protocols to drive desired behaviours

www.bluevisions.com.au
Blue Visions Management Pty Ltd 36
 Maturity in program management

L5 - Programme leadership
L4 - Programme Mgt support environment
L3 - Programme controlled
L2 - Programme planned
L1 - Independent uncoordinated projects

www.bluevisions.com.au
Blue Visions Management Pty Ltd 37
 Questions ?
Successful Program Management

Adel Khreich
9 June 2010

www.bluevisions.com.au
Blue Visions Management Pty Ltd