Relationship Between Programs and Projects

8/13/2019 Relationship Between Programs and Projects

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Relationship betweenPrograms and Projects

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Index

Purpose of the Standard

What is a Program

What is Program Management

Relationship among Project, Program and Portfolio

Role of a Program Manager

Program External Factors

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Purpose of the Standard

A standard is a collection of bestpractices that can be applied tomost programs, most of the time.t pro!ides a common frame"or#for running programs.

$oncepts in the standard can be appliedacross !arious industries and theirapplication is #no"n to pro!ide

!alue to the organi%ation. &hestandard helps an organization tocreate company specificguidelines for how programs aremanaged.

&hin# of the conse'uences of not ha!ingguidelines "hen multiple programsare executed in a compan(. Forexample, each program managerruns a program the "a( he or shefeels appropriate and thus ma#ing itdifficult to trac# expenditures and

resource usage.

)eclining results due to*

+ncoordinatedprojects

Firefighting

ac# ofaccountabilit(

ac# ofalignment tostrateg(

ac# of

understanding

nconsistenc( inproject results

o" resource

utili%ation

Waste andre"or#

)uplication

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Purpose of the Standard - $ommon terminolog(

&he standard pro!ides a commonterminolog( for programmanagers. A commonterminolog( is essential inprograms spanning borders,cultures and organi%ationalstructures

&he Program Management Standardspecifies roles andresponsibility assignments

between program managers,project managers andportfolio managers. &his setsthe foundation for implementingorgani%ational strateg(.

A common problem faced b(organi%ations is differentiating"hat a program manager doesand "hat a project managerdoes. &he standard aims toaddress this situation.

thought, as a programmanager, "as

responsible forappro!ing the changere'uest/

Well, since its m(project, appro!ed thechange re'uest/

ac# of common program terminolog(www.ikompass.edu.sg


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What is a Program

A Program is defined as a collectionof related projects managedin a coordinated manner toobtain benefits and controlnot available from managingthe projects individually

A program can include non projectacti!ities li#e operations. All theelements that ma#e up a

program are called components.A #e( part of defining a programis identif(ing the componentsthat ma#e up a program. Acomponent can be a project, non0project "or# and effort in!ol!ed

in managing projects. Program

Effort inManaging

1perations

RelatedProjects

$omponents

that ma#e upa program

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What is a Program

iscussion

!here does your Program "it#

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$omponents that ma#e up a program

Related projects mean discreteefforts that are groupedtogether b( commonalitiesbet"een the efforts

Remember the definition of a project.A project is a temporar(endea!or to create a uni'ueproduct, ser!ice or result. When(ou ha!e a group of projects,each "ith a uni'ue product,ser!ice or result, and each of theprojects are related to one other,it makes a case for a program.

A #e( element of defining a programis to identif( the !arious "a(s theprojects are related.

&he shopping complex is made of up2 projects. &he structure, thepar#ing lot, the landscaping and ahelipad. While each of theseprojects are discrete efforts,together the( ma#e up a

shopping complex program.

Shopping complex program "ith 2discrete projects related to each other

Par#ing lotStructure

3elipad andscapingwww.ikompass.edu.sg


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$oordinated Management

Program contains related projectsmanaged in a coordinatedmanner

Managing related projects in acoordinated manner in!ol!esidentif(ing and managing thedependencies bet"een theprojects. &hese dependenciescan be between the projectsor between the project and

the overall program effort.

&he landscaping project, "hichin!ol!es planting trees, clearing!egetation and le!eling une!enground, is dependent on thestructure project, "hich in!ol!esdigging the hole, building thefoundation and erecting thestructure. &he dependenciesre'uire coordinated management

Shopping complex program "ith 2discrete projects related to each other

Structure

andscaping

)ependenc(

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4enefits 5 $ontrol

Program in!ol!es projects managedin a coordinated manner toobtain benefits and controlnot available from managingthe projects individually

)ecision of managing projectsindi!iduall( !ersus managing theprojects as a program re'uires ae!aluation of the conse'uences ofmanaging related projectsindi!iduall( "ith no coordination.

Assuming that structure "as beingbuilt as a project "ith nocoordination "ith the landscapingproject, the result could be thatthe landscaper planted beautifultrees at the sample spot "herein

the hole "as mar#ed for digging.

&he t"o projects are managed as aprogram "ith collecti!e benefitsand control. &he benefits andcontrol are not a!ailable if each of

the projects "ere managedseparatel( "ith no coordination.

Structure

andscaping

3ole being dug at the sameplace "here the trees arealread( planted due to nocoordination

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4enefits

6e( to understanding programs liesin understanding theconse'uences of running a set ofrelated projects indi!iduall( "ithno coordinated management

Running a set of related projects as a

program re'uires e!aluation of thedependencies bet"een the projects. &hedependencies can be in the form ofcollective benefits or in the form ofcontrol.

A benefit is a utility delivered forenhancing current capability orcreating new capability in anorganization. 4enefits from the relatedprojects could be reali%ed at the end ofthe program or it could be realized inincrements during the program

lifecycle.

For example, a benefit deli!ered b( thepar#ing lot project is that !ehicles comingto the shopping complex ha!e a place topar#. &his could be reali%ed onl( at theend of the program "hen the shoppingcomplex is completel( operational

Projectsrun

indi!iduall(

Projectsmanagedas a

Program


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4enefits - Shopping complex program

Projects create uni'ue products,ser!ices, results ordeli!erables. &hese outcome ofprojects create benefits. AProgram manages thesebenefits in a coordinatedmanner.

&he shopping complex programhas 2 projects "ith each ofthem producing uni'uedeli!erables. &hesedeli!erables together offer

collecti!e benefits that aremanaged as a program

f this "as not managed as aprogram, situations such asthe garden not being at close

!icinit( or the par#ing lot notbeing con!enient or thestructure7s design not beingcongruent "ith the landscapecould arise

ProjectProject1utcome

4uildingStructure

8arden

3elipad

Par#ing lot

Project 4enefit

Retail 1utlets

Place to relax

$hopper ser!ices

)ri!e to mall

Program4enefits

Pro!iding acon!enientshoppingexperience for

customersalong "ithgarden facilit(to relax in close!icinit(

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Examples of Programs

Ad!antages of managing a collectionof related projects as programsre'uire a program manager todocument the interdependenciesthat exist bet"een the projectsand "hat happens if theseinterdependencies are notcoordinated.

Each of these programs are made upof related projects. ets loo# atsome programs and the possibleprojects that ma#e up theprogram along "ith the collecti!ebenefits.

1utsourcing Program

Ser!ice EnhancementProgram

Merger Program

& &ransformation Program

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6ampen nc 1utsourcing Program

6ampen nc is an insurance compan("ith the product portfolio of lifeinsurance, !ehicle insurance,health insurance and disabilit(insurance. 1ne of the initiati!esthat 6ampen has underta#en toreduce operating costs is tooutsource certain functions.

&he outsourcing initiati!e has beenclassified as a program "ith!arious components. $omponents

include related projects and othernon0project "or# such asoperations. $lassif(ing it as aprogram means coordinatedmanagement of benefits fromeach of the projects

f each of these projects "ere runindi!iduall( "ith no coordination,the highlighted benefits ma( notbe reali%ed.

1utsourcingProgram

$laimsProcessing &echnical3elp )es#

$ustomer

Ser!ice $all$enter

Projects

Program

Selecting !endors 5 technolog( for the three projects

3iring and training ne" staff for the three projects

&echnical and business dependencies bet"een the projects

nternal change management as a result of outsourcing

$ollecti!e benefits


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Sloten Air"a(s Ser!ice Enhancement Program

Sloten Air"a(s has decided to ma#eser!ice impro!ements to increasetheir customer base. 1ne of theinitiati!es is to enhance thecurrent mode of chec#0in "hichonl( includes airport counterchec#0in. &he ne" program is toadd internet, telephone and SMSchec#0in capabilities

&he flight chec#0in program is madeof three projects, nternet chec#0in, SMS chec#0in and &elephone

chec#0in. &hese three projectsneed to be managed in acoordinated manner due to thedependencies.

Flight $hec#in options

nternet$hec#0in SMS $hec#0in &elephone$hec#0in

Projects

Program

&hree options for the same customer

Sharing same database of customers

$ollecti!e mar#eting about ne" features

$oordinated de!elopment of ne" features

$ollecti!e benefits

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4aarn Softdrin#s nc Merger Program

4aarn Softdrin#s has created aprotfolio aimed at increasingmar#et share in de!elopingcountries. 1ne of the initiati!es isto merge "ith an establishedcompan( in the ne" countr(.4aarn Softdrin#s has classifiedthe merger as a programinitiati!e

&he merger program is made of threeprojects, product extension,distribution channels and

branding. &hese three indi!idualprojects ha!e discrete benefits as"ell as collecti!e benefits.

&he success of the cross borderprogram is determined b( the

effecti!eness of the coordinationbet"een the projects. A merger couldalso include man( other projects suchas sales, finances, human resourcemanagement etc.,

$ross borderMerger

ProductExtension )istribution$hannels 4randing

Projects

Program

Merged product line affecting branding

9e" entit( and ne" distribution channels

Eliminating redundant mar#eting

Merged departments and functions

$ollecti!e benefits


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:"olle 4an#ing nc Soft"are +pgrade Program

:"olle 4an#ing has embar#ed on aninitiati!e to moderni%e the ban#.1ne of the program7s initiated isto upgrade certain criticalsoft"are used b( the ban#7semplo(ees.

&he soft"are program has threeprojects, $RM soft"are, nternet4an#ing Soft"are and dentit(

Management Soft"are. &hesethree projects ha!e discretebenefits as "ell as collecti!ebenefits.

Soft"are+pgrade

$RMSoft"are

nternet

4an#ingSoft"are

dentit(

ManagementSoft"are

$ommon operating s(stem

$ommon procurement for resources

Abilit( to mitigate ris#s arising from the dependencies

$ommon go!ernance structure to monitor and control

Projects

Program

$ollecti!e benefits

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What is Program Management

Program Management is thecentralized management ofthe related projects to achie!ecollecti!e benefits. $ollecti!ebenefits arise as a result ofintegrated cost, schedule andeffort.

$entrali%ed management pro!ides foran optimi%ed "a( of "or#ing andproducing results. $entrali%edmanagement is generall( appliedfor costs, schedule, ris#s and

resources for multiple projects.

For example, a high"a( constructionprogram is characteri%ed b(centrali%ed management due tothe amount of coordination

needed bet"een the !ariousprojects. Projects li#e landac'uisition, traffic di!ersion,material procurement, "or#placesafet(, bridge construction etc.,

$entral $oordinationof cost, time, effort

&raffic )i!ersionProject

Road $onstructionProject

Wor#place Safet(Project

and Ac'uisition

Project

$entrali%ed Management of 3igh"a( $onstruction programwww.ikompass.edu.sg


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Projects, programs and portfolios areorgani%ational approaches toimplementing compan( businessstrateg(. Mature projectorgani%ations use a combinationof projects, programs andportfolios in a hierarchicall(structured approach toimplement compan( strateg(.

A portfolio is a collection ofprograms, projects or operational"or# that ma( or ma( not be

related to each other. &hecomponents, e!en though notrelated to each other, aregrouped together for a strategicreason.

Portfolios represent an organi%ation7sstrategic business intent. et7sloo# at an example of strategicbusiness intent and thecorresponding portfolios.

4usinessStrateg(

; ncrease Mar#et Share

; mpro!e Re!enue

Portfolios

;Expand to 9e" Mar#ets

;Extend Product ine

Programs

;Emerging Mar#ets Program

;9e" Product ntroduction


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A collection of sub projects ma#e up aproject. A collection of relatedprojects ma#e up a program. Acollection of programs andoperational "or# ma#e up aportfolio. Projects, programs andportfolios are structured in a

hierarch( during organi%ationalplanning

A business strateg( can beimplemented "ithout portfolios

and programs, ho"e!er, thebenefits associated "ith astructural approach is lost. Acompan( ma( end up "ith man(projects that are run indi!iduall("ith no coordination and control

leading to probable failure.

&emporar(endea!ors to createa product or ser!ice

$ollection of related

projects

$ollection ofprograms, projects

and operationsPortfolio

Program

Project Project

Program

Project

4usiness Strateg(

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Relationship bet"een Strateg( 5 Portfolio

6ampen nc is an insurance compan(.6ampen7s business strateg( forthe (ear includes maximi%ingshareholder !alue b( increasingprofitabilit(. &he businessstrateg( is to pro!ide affordableinsurance solutions and

increasing profit margins.

For reali%ing this goal, < portfoliosare ne"l( created. 1perationalexcellence, di!estitures and ne"

mar#et expansion. Each of theportfolios "ill contains programsand operational "or#.

Portfolios represent the organi%ation7sapproach or intent for

implementing the businessstrateg(. n this example, theorgani%ation assumes that thesethree portfolios "ill lead toaffordable insurance andincreased profit margins.

Mission* &o be the "orld7s nsurance pro!ider ofchoice

=ision* Mar#et leader in nsurance solutions

Strateg(*>. nsurance solutions that are affordable?. nsurance solutions that ha!e mass reach


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Relationship bet"een Portfolio 5 Program

6ampen nc has three portfolios,1perational Excellence,)i!estitures and 9e" Mar#etexpansions. Each of the portfolioscontain components such asprograms and elements ofoperational "or#.

&he programs that ma#e up eachof the portfolios doesn7t ha!eto be directl( related to each

other. For example, thebusiness automation programis not related to the productrestructuring program.3o"e!er, both theseprograms contribute to

operation excellence.

&he operational excellenceportfolio is a means ofincreasing profitabilit( for6ampen nc

1perationalExcellence

Six Sigma Program

1utsourcingProgram

Automation Program

1perations

ProductRestructuring

)i!estitures

Product ineAnal(sis Program

Sell0off Program

&ransition Program

9e" Mar#etExpansion

Emerging Mar#etsExpansion

9e" Product ineProgram

>. nsurance solutions that are affordable?. nsurance solutions that ha!e mass reach


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nformation flo" bet"een Portfolio and Program

&hin# of portfolios li#e bloc#s thatcontain onl( those componentsthat add !alue to the portfolio interms of reali%ing the businessstrateg(. )ecisions about "hethera component should be added intothe bloc# or not is based on

relati!e !alue of a program orcomponent. &his decision is madeb( a portfolio manager

nformation flo"s from the portfolioto the program during the earl(stages of the program. A Programis initiated based on the inputsrecei!ed b( the portfolio.

When the program is being executed,information flo"s from theprogram bac# to the portfolio.&his information is mostl( aboutthe status of the program.

Portfolio selection

Portfolio decisions

Program nitiation Program Execution

Strategic 8oals$ontrol

Funding

Reports+pdates

$hange Re'uests

nformation Flo"

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Relationship bet"een Program 5 Project

Programs are made of a collection ofrelated projects. 1ne of theprograms in 6ampen7s portfolio is1utsourcing. &he outsourcingprogram falls under theoperational excellence portfolio.&he 1utsourcing program has 2

related projects.

Each of the projects in theoutsourcing program ha!ediscrete benefits as "ell as

collecti!e benefits.

&he projects are managed in acoordinated manner "ithcentrali%ed management.nterdependencies bet"een the

projects in!ol!e ha!ing acommon support center,technolog(, communication,procurements, ris#s, hiring andtraining.

1perationalExcellencePortfolio

4usinessAutomation

Program

ProductRestructuring

Program

1utsourcingProgram

$laims

Process1utsourcing

3elp )es#1utsourcing

$all $enter1utsourcing

)ata $enter

1utsourcing

6ampen nc Strateg(* nsurance solutions that areprofitable/

Projects

$ommon Support$enter

$ommonProcurements

$ommon =endors

$entrali%ed 3iringand &raining

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nformation flo" bet"een Program 5 Projects

Programs are a "a( of managing andhandling projects in a coordinatedmanner. Programs pro!ide inputsfor projects and in!ol!eidentif(ing interdependenciesbet"een projects andcoordinating the deli!erables or

outcomes of the projects

Projects are initiated based on theinputs pro!ided b( the program.As projects are executed,

information on the status of theprojects flo"s bac# to programs.

Program )ecisions

Project nitiation Project Execution

4usiness $ase

$ontrolFunding

Reports

+pdates$hange Re'uests

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)ifference bet"een Project Management 5 Program Management

Project $anagement

Focused on deli!erables

Projects initiated through inputs froma Program

Focused on tas#s and acti!ities thatproduce deli!erables

Responsible for project resources

Focused on getting the job done

Managing project team members

Program $anagement

Focused on coordination of relateddeli!erables

Projects initiated through inputs froma Portfolio

Focused on managinginterdependencies bet"een projects

Responsible for resource allocationbet"een projects

Focused on alignment of projects andstrategic goals

Managing project managers andpro!iding o!erall leadership

Project Management Program Management

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Portfolio, Program 5 Projects - Putting it all together

6ampen7s strateg( is to increaseprofits. &his is achie!ed throughoperational excellence andproduct restructuring.1perational excellence portfoliocontains multiple programsincluding outsourcing.

1utsourcing program has multipleprojects including call centeroutsourcing and help des#outsourcing

Successful projects and a profitableand optimi%ed project portfoliore'uire a project culture based ona common terminology andproject methodology with

clearly defined roles andresponsibilities that arecommon to the entireorganization. PM7s standardsfor projects, portfolio andprograms pro!ide best practicesin the form of standards

Strateg(

Portfolios

Programs

Projects

nsurance solutions that are profitable/

1perational

Excellence

Product

Restructuring

1utsourcing Automation

$laims Processing $all $enter 3elp des#

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Program Manager is responsible forpro!iding o!erall leadership tothe project managers. &hisincludes communicating the bigpicture to the projectmanagers "hich encompassesalignment of a project to

organi%ational strateg(.

Program managers are responsiblefor ensuring consistenc( in themanner in "hich projects areimplemented. &his consistenc(comes from ha!ing established

standards and guidelines. &hePM1 supports the programmanager in pro!iding theseguidelines and standards.

&he program manager iscommerciall( and financiall(responsible for the projects andtheir outcome. &he programmanager is the primar( ris# ta#erfor the projects and ma#es thetollgate decisions, based on anassessment of the project@s

alignment "ith the organi%ation@sbusiness direction


$onsistenc( $ompliance $oordination

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Program Manager 6no"ledge and S#ills

Program Manager is responsible for

aligning all program efforts in theorgani%ation into the samebusiness direction, focusing oncustomer satisfaction andsecuring maximum !alue from ofthe entire program through an

efficient use of resources.

&his re'uires professional programmanagement #no"ledge, and ashared understanding of ho" it isapplied in the organi%ation.

$ommunication s#ills, leaderships#ills, strategic !isioning andplanning s#ills and sta#eholdermanagement s#ills are a fe" ofthe most important s#ills for aprogram manager. Strong communication s#ills

to deal "ith !arioussta#eholders

=endorManagingdirector

ine Manager Support Staff

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Program Manager S#ills - Political $limate

Sta#eholders can positi!el( or

negati!el( influence a program orbe positi!el( or negati!el(influenced b( the programoutcomes. A Program managerneeds to be a"are of the politicallandscape of the organi%ation.

Political landscape in anorganization is about power,influence and decision making

abilities of stakeholders andgroups. +nderstanding thepolitical climate is important inachie!ing a positi!e relationshipand setting the ground "or# forshared attitudes and team"or#.

3idden agendas/

Political landmines/4alance of po"er/

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l


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Program - External Factors

A Program is a component "ithin the

larger organi%ation. 1thercomponents "ithin theorgani%ation outside that of theprogram can ha!e a greatinfluence on the success of theprogram.

Program Manager is responsible foridentif(ing these influences andmanaging them for the o!erall

benefit of the program. $ommoninfluences are organi%ationalprocess assets, enterpriseen!ironmental factors andenterprise external factors.

1rgani%ational process assets arepolicies, procedures, tools,templates and lessons learneddatabases that exist in theorgani%ation.

4est Practices, essons earned, 3istoricalnformation, Ris# )ata, $ompleted Schedules

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P E l F E i E i l F


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Program External Factors - Enterprise En!ironmental Factors

Enterprise En!ironmental Factors are

situations, conditions andcircumstances "ithin thecompan( that influences thesuccess of the program. &hisinclude enterprise factors such asthe organi%ation7s culture, ris#

thresholds and reportingrelationships.

Programs should be allo"ed to focusthe on fulfillment of their goals.3o"e!er, there is a built0in ris# in

this since the business directionof the organi%ation could be lostor changed. &his is "h( a clearand strategic understanding ofthe enterprise en!ironmentalfactors is needed.

$onditions in the enterprise could

change resulting in change of programgoals

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P E t l F t E t i E t l F t


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Program External Factors - Enterprise External Factors

Apart from the factors "ithin the

compan(, a program managerneeds to ha!e an understandingof conditions outside thecompan( that can influence theprogram. &his includes mar#etplace conditions, go!ernment

regulations, customer trends etc., Stoc# Mar#ets

8o!ernmentregulations

Factors outside the compan( that couldinfluence the program

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Documents

Relationship Between Programs and Projects