The phases and thedynamic life cycle comprise the dynamic process you are going to employ.So programme management may be defined as: the utilization of project management and its inheren
Trang 1outcomes Programme management is essentially the control system youuse to achieve the desired results or outcomes The phases and thedynamic life cycle comprise the dynamic process you are going to employ.
So programme management may be defined as:
the utilization of project management and its inherent processes to manage effectively a collection of closely interdependent projects in a controlled and structured manner to achieve some clearly defined objectives identi- fied as strategic needs.
The processes employed for programmes and projects are similar.Programme management is primarily concerned to satisfy strategic needsidentified from business planning Since it involves maintaining anoverview of several interdependent projects, all active with differing timelines, programme management is closely linked to business management.Programmes generally use more resources simply because of their size andare often spread between several locations The impact of progress or lack
of it must be under constant review in terms of the business benefitsexpected, especially as benefits accumulate as projects complete and newones start
The programmes and projects that are approved as active at any time
make up the programme and project portfolio This portfolio is like an
invest-ment portfolio: some programmes and projects are low risk and a few arevery high risk, and if all succeed, the business will benefit significantly Allare perceived as essential to success, but priorities do change as newopportunities arise, and the organization must ensure that adequateresources and funding are available So, the definition of programmemanagement can be extended further It can now be defined as:
creating the environment where the portfolio of all active programmes and stand-alone projects is managed to yield defined benefits in pursuit of busi- ness strategic needs.
As with investments, we need to understand our portfolio – what is in itand why and how we will benefit Programme management must create asuitable environment where well-informed business decisions can bemade about the active programmes and projects, for effective business
results This is sometimes termed portfolio management.
WHAT IS PROJECT MANAGEMENT?
The management of your project is essentially the control system you use
to achieve the right results or outcomes As with a programme, the phasesand the dynamic action cycle comprise the dynamic process you are going
to employ, so project management may now be defined as:
Trang 2a dynamic process that utilizes the appropriate resources in a controlled and structured manner to achieve some clearly defined objectives identi- fied as strategic needs.
Project management is clearly carried out within an environment of setconstraints, either from a programme or as a stand-alone project with adefined scope
WHY IS PROGRAMME MANAGEMENT DIFFERENT FROM
PROJECT MANAGEMENT?
Although it is easy to consider programme management and projectmanagement to be different disciplines, in practice they also have manysimilarities Both require an essential understanding of project processes
A programme manager with no knowledge of how to lead a project teamsuccessfully is not likely to make a success of a programme To lead aproject team successfully a project manager must have a detailed under-standing of all the processes employed in project management throughthe project phases
Programme and project management have some common tics Both:
characteris-• are objectives oriented – without objectives you have no outcomes;
• are change oriented – aimed at creating something the organizationneeds but does not have;
• are multi-disciplined – needing a wide range of skills to achievesuccess;
• benefit from opportunism – requiring short cuts to be taken and oldnorms to be bypassed;
• are performance oriented – requiring the setting of appropriate dards and quality of outputs;
stan-• are control oriented – needing carefully designed controls to maintainthe schedule;
• question tradition – demand that managers avoid getting trapped bythe old ways of doing things
The primary objective of programme management is to ensure that all theconstituent projects together provide the benefit required, regardless ofthe performance of any individual project or sub-project Other differ-ences are listed in Table 2.2
Too often the selection of team members for a project team is controlledless by the skill-set needed and more by ‘who is available’ Always ensure
Trang 3you have some part in the selection process You probably will not have afree hand to select who you want, but at least exert a strong influence.Many programmes and projects have run into difficulties because thewrong team members were selected at the outset If programme andproject management is accepted as an essential skill in your organization,you will find it possible to influence senior managers to support yourefforts from the outset.
WHAT IS DIFFERENT ABOUT PROGRAMME AND
PROJECT MANAGEMENT?
Compared with normal functional management, the principal difference
is that you are operating in a temporary role You are the manager of theteam only for the life of the programme or stand-alone project and thenyou return to your other operational duties – or another programme withpossibly a different team This situation leads to some specific differenceswhen compared to the ‘fixed’ functional hierarchical team that is part ofthe organizational structure
Table 2.2 Differences between programme management and project management
Is concerned with achieving benefits Is a defined activity focused on delivering required by organization strategic specific objectives as one piece of a
Is appropriate for managing and Is intended for an activity designed to reviewing performance of a large number achieve specific deliverables and benefits
of constituent interdependent projects
that may change with time
Manages the impact and benefits of a Aims to produce clearly defined benefits group of closely aligned projects to in a known environment
ensure a smooth transition to a
defined new environment
Manages risks and issues across the Manages risks and issues within the projects to minimize impact on the project to minimize the impact on the
Creates an environment that sets the Creates an environment where constraints constraints for all the projects in the are set by the project scope
programme
Trang 4In a fixed functional team, as the manager you:
• lead the team;
• have team members reporting direct to you alone;
• have a stable team membership in the medium to long term;
• create the conditions for good teamworking;
• set the team norms and behaviours with the team;
• decide responsibilities and coach team members in new skills;
• control the work of the team – input and output;
• build trust and respect in the team;
• encourage the personal growth and development of the teammembers;
• encourage sharing of information, opinions and feelings for the team’sbenefit;
• utilize the team’s creative skills to improve team performance;
• appraise the team members’ performance;
• set individual targets to improve performance;
• create a team identity
The team you bring together for a programme or stand-alone project willalmost certainly have come from different departments in the organiza-tion, maybe even different sites Although you must attempt to do all thethings just listed, you will have difficulty with some of them:
• Team members report to you only for their work on the programme orproject and to their line manager for other work – unless they are fullydedicated to your new team
• Your team membership is less likely to have stability, owing to ing priorities of the team members’ line managers
chang-• With a changing team membership, conditions for good teamwork aremore difficult to create
• Often team members do not know each other, and setting team normstakes a considerable time
• You are in a time-limited situation and can find little time for coaching;you need the skills immediately
• Team members who do not know each other well are always hesitant
to share information, opinions and feelings openly
• You can appraise an individual only on his or her programme orproject work; this individual may be working on more than oneproject at a time for different managers and still have line responsibili-ties So who does the appraisal and how?
• Creating a team identity requires time and additional effort on yourpart to ensure that the team comes together regularly as a team tolearn more about each other
Trang 5The organizational hierarchical structure is a matrix from which your team
is drawn, and during the early stages of a programme or stand-aloneproject everyone is getting used to the situation of working with a differ-ent group of people This can lead to more conflict than you would like, sopay particular attention to getting to know and understand the teammembers yourself through setting up regular one-to-one meetings witheach
Success in programme and project management is not going to be yoursmerely as a result of your using the right tools and techniques It is onlyachieved through giving time to leading the team and overcoming theseareas of potential difficulty, which will then reduce the risk of failure
HOW ARE PROGRAMMES AND PROJECTS DERIVED?
As we have seen, the programme or project is a vehicle for carryingchange to its intended conclusion, which is to give your organizationsomething it does not currently have, but strongly desires But where dothe ideas for all this additional activity come from? You may feel theanswer is obvious – the senior management, maybe Yet anyone in theorganization may come up with ideas Creativity and idea generation arenot the exclusive territory of the management It is the people who dothe day-to-day operational work who often have the best ideas forimproving organizational performance, both in current operations and
in terms of creating new products To identify how programmes andprojects are derived, it is appropriate to examine their sources in theorganization
Business planning
Every organization today engages in business planning in some manner It
is common to have a three- or five-year corporate plan and a shorter year strategic plan The corporate plan will set the future direction of the
one-organization and establish broad targets The strategic plan is a moredetailed documentation of how the organization will meet the corporateplan through the next financial year
Trang 6everyone Everyone should seek always to find better ways to do the job
so as to make the organization more effective and more efficient
Sometimes good ideas that come from continuous improvement activity
in one part of the organization may have benefits for other functions Aconsiderable effort with a cross-functional team may then be needed tomake a significant change effectively The organization can gain consider-ably from treating this type of continuous improvement as a stand-aloneproject, because of the size and complexity of the work involved
Step change growth
Most programme and project activity in an organization starts by someonerecognizing the importance of addressing specific needs or opportunitiesnow to yield increased defined benefits in the future The purpose is togive the organization something that does not yet exist but is clearlydefined as essential or highly desirable to support the process of achievingthe strategic plan for the year Some programmes may be of longer life anddirected towards the corporate objectives within the three- or five-yearplan
It may be considered necessary to start a programme comprising severalprojects that are connected by a common overall objective, as in our earlierexample of a cost reduction programme All have one important character-istic: they involve a step change or quantum leap from current businessprocess or operations They are directly derived from the organization’svision for the future and form a significant contribution towards achievingthat vision
How does this affect you as the programme or project manager? Youhave an interest in success, and a key element of success is the team, ie thepeople doing the work It is not enough to just hand out the work youdecide is necessary The people in the team must participate in all aspects
of the work from the start-up and definition through to completion Youcan get the team motivated, enthusiastic about the work and focused onthe objectives if you can explain the context of the programme or projectwithin the organization’s strategy Then everyone understands why theprogramme or project exists, its importance and its relative prioritycompared with other work
Occasionally you may be faced with a mandatory project – a changecontrolled by an external requirement such as new UK legislation, EUdirectives or health and safety requirements Such projects often do notarouse enthusiasm but are still important for the organization and arealways part of strategy After all, failure to comply may lead to legal andcommercial difficulties or financial penalties
Trang 7THE DYNAMIC LIFE CYCLE
Because the programme or project has such specific characteristics, alllimited by time, it naturally goes through a life cycle, just as a productdoes The difference here is that the life cycle is dynamic and subject toreiteration at any time during the project
The front end of any programme or project is marked by the initial sion to proceed This start-up is often very ‘woolly’ and ill defined, andwill be discussed in more detail in Chapter 5
deci-All programmes and projects given an initial approval to start gothrough a similar life cycle, comprising four fundamental phases:
• Opportunity identified An opportunity is identified for a new
product, new system or process, new manufacturing facilities or
ACTIVE PROGRAMMES
& STAND-ALONE PROJECTS
NEW IDEAS OPPORTUNITIES STEP CHANGE GROWTH
BUSINESS STRATEGIES
CORPORATE STRATEGIC OBJECTIVES
REVIEW AND PRIORITIZE CONTINUOUS
INCREMENTAL GROWTH
Figure 2.4 How programmes and projects are related to strategy
Trang 8business process If it is considered a valid opportunity within thecurrent strategy then it passes into Phase Zero.
• Phase Zero: Selection An opportunity is examined in some detail and
subjected to rigorous selection tests and criteria by the business group
or department making the proposal A decision must be made toproceed and commit resources to the work and pass into Phase One
• Phase One: Definition Phase One is the start of the real work once
needs have been clearly identified and the project can be defined withthe agreement of those people with an interest in the outcomes Onceall definition work is complete and approved then Phase Two can beentered
• Phase Two: Planning Phase Two is the processes of planning to derive
a realistic schedule taking into account all the constraints that can beidentified at this stage When all those with an interest in theoutcomes have approved the plans, the actual work can start, which isPhase Three
• Phase Three: Execution Phase Three involves launching the actual
work, ensuring everyone understands the plan; the controls youimpose on the process; and making sure the plan is always up to datewith any changes that occur When all work is successfully completeand no outstanding major issues are unresolved then entry to PhaseFour is approved
• Phase Four: Closure Formal closure is agreed with the customer All
work is complete and the acceptance and handover signed off Anyfollow-on activities are identified and assigned and the evaluationprocess is completed
THE DYNAMIC ACTION CYCLE
In practice these phases are only a convenient way to help you to separatethe programme or project work into blocks with a defined sequence Thereality is that no programme or project follows such a neat and simpleprocess flow without a significant amount of reiteration At any stage ofthe work you may have to:
• revise the definition and scope;
• replan part of the work;
• revise the schedule;
• solve problems;
• carry out recovery planning – to recover lost time;
• carry out contingency planning – in case a high-risk part of the workgoes wrong
Trang 9The action cycle gives the basic steps that a programme or project (or any
part of a project) must go through, with the phases identified earlier.Figure 2.5 shows the cycle in a graphic form
Completion of any phase in the process requires a decision-makingprocess to be invoked The work done must be subjected to a rigorousreview to determine the validity of allowing the programme or project tocontinue This decision can commit the organization to using resourcesthat do not exist, because of other commitments Many questions must beasked by the management before this decision is made Too often, rogueprogrammes or projects are allowed to continue unchecked and eithersubsequently fail owing to there being insufficient resources or seriouslyaffect other important programmes by stealing their resources Clearly, the
REVIEW &
EVALUATE
MONITOR PROGRESS
DEFINE OBJECTIVES
MONITOR PROGRESS
PLAN THE WORK
COMMUNICATE THE PLAN
DEFINE
MONITOR PROGRESS
PLAN THE WORK
Trang 10technical feasibility of continuing must be reviewed at the same time Inthe past, many development projects (eg for a new product) have become
‘runaway trains’ consuming huge amounts of resources and still quently failing, with large debt write-offs The risk of such situationsoccurring can be minimized by using a regular review and decisionprocess
subse-At each of the steps in Figure 2.5 it may become necessary to recycle theprocess and redo some of the work Such reiteration throughout theprocess maintains the dynamics It provides a check that you are doingthe right things to keep the work on track to the schedule and achieve thedesired outcomes agreed with your customer
THE PROGRAMME AND PROJECT PROCESS
PHASE GATES
For any programme or project to achieve success it is essential to relate theprogress through the dynamic action cycle to the organization’s strategicneeds As the programme or project manager you will always demonstratethat your programme or project has clear objectives and that the work is
on target However, the senior management of the organization need to bekept informed and must remain convinced that the costs justify continu-ing with the work
To achieve this open approach two essential elements are required:
• Phase gates (Figure 2.6) to provide entry to each phase of the dynamic
action cycle Each phase gate is opened to allow the work of theprogramme or project to proceed to the next phase
• The programme steering team (PST) This team of senior managers of the
organization meet at regular intervals to review the status of all activeprogrammes and projects The PST also approves opportunities to beinvestigated and sets the priorities We will look in more detail at thePST and how it operates in Chapter 3
The decision to open a phase gate for any programme or project is madeonly after a review by the PST The decision is driven by a review of theprogramme or project that covers the following elements:
• current progress and identification of slippages;
• current risks and issues;
• the budget;
• priority ranking compared with other active programmes andprojects;
Trang 111
5
3B 3C
3
4
3A
GATE ZERO Decision made by PST to investigate further – apply selection tests &
criteria
GATE ONE Decision by PST to proceed with a programme or project.
Gate opens to enter the Definition Phase 1 of the process Objectives validated to customer &
strategic needs GATE TWO
Decision by PST to continue with a programme or project.
Gate opens to enter the Planning Phase 2 of the process, committing resources.
GATE THREE Decision by PST to accept the plan, validating the resource needs and priority of the programme or project.
Commitment to continue by all functions involved and enter the Execution Phase 2
OR Abort & decommission.
GATE FOUR Acceptance by PST that work nears successful completion Handover agreed with customer GATE FIVE
Acceptance by PST that programme or project
is complete.
Completion certificate issued Team disbanded
2
NEW IDEA OR OPPORTUNITY IDENTIFIED
0
1
5
3B 3C
3
4
3A
GATE ZERO Decision made by PST to investigate further – apply selection tests &
criteria.
GATE ONE Decision by PST to proceed with a programme or project.
Gate opens to enter the Definition Phase 1 of the process Objectives validated to customer &
strategic needs.
GATE TWO Decision by PST to continue with a programme or project.
Gate opens to enter the Planning Phase 2 of the process, committing resources.
GATE THREE Decision by PST to accept the plan, validating the resource needs and priority of the programme or project.
Commitment to continue by all functions involved and enter the Execution Phase 3.
OR Abort & decommission.
GATE FOUR Acceptance by PST that work nears successful completion Handover agreed with customer.
GATE FIVE Acceptance by PST that programme or project
is complete.
Completion certificate issued Team disbanded 2
Figure 2.6 The programme and project process phase gates
Trang 12• assessment that appropriate resources are available for the next phase;
• confirmation that the programme or project is still needed – alignmentwith strategic needs;
• a ‘GO/NO GO’ decision either to continue or to cancel the programme
or project
The review outcome is dependent on information you present to the PST.Occasionally it may even be necessary for you to make specific recommen-dations concerning revisions to the objectives, scope or current plans, oreven to cancel the work This ensures that decisions are confronted at theappropriate time in the dynamic action cycle
IS THE PHASE GATE A CONSTRAINT?
You may consider that the concept of phase gates is imposing morebureaucracy on you as the programme or project manager The onlyapparent constraint is preventing some work in the next phase from start-ing early because resources are available and you keep the work rollingalong
The real purpose of the phase gate is to focus the mind of everyone with
an interest in your programme or project, encouraging them to take a deepbreath and ask ‘where are we now?’ After a detailed review the PST isprimarily concerned to seek answers to three questions:
• Is the programme or project still viable? The PST must be satisfied that the
planned benefits meet their original expectations and the costs havenot exceeded the planned budget
• Is the priority the same relative to other programmes or projects? The PST
decides the relative priority of all active programmes and projects,taking into account the costs, benefits and resource availability
• Is funding still available? The PST must decide to continue funding the
work when reviewing all other commitments In some circumstancesthe work may be slowed to make money available for other activities.After a successful review, and if the answers to the above questions aresatisfactory, the next phase gate is opened and a ‘GO’ decision recorded.However, the PST may instead decide on one of three primary options:
• Terminate – cancel the programme or project and initiate sioning procedures immediately to minimize collateral damage
decommis-• Suspend work – stop all work temporarily for a specified period Thismay be due to a change of priority, the need to move resources toanother programme or a demand for a review of strategic needs