The Handbook of Project Management: A Practical Guide to Effective Policies and Procedures, 2nd Revised Edition_2 doc

outcomes. Programme management is essentially the control system you use to achieve the desired results or outcomes. The phases and the dynamic 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 needs identified from business planning. Since it involves maintaining an overview of several interdependent projects, all active with differing time lines, programme management is closely linked to business management. Programmes generally use more resources simply because of their size and are often spread between several locations. The impact of progress or lack of it must be under constant review in terms of the business benefits expected, especially as benefits accumulate as projects complete and new ones 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 are very high risk, and if all succeed, the business will benefit significantly. All are perceived as essential to success, but priorities do change as new opportunities arise, and the organization must ensure that adequate resources and funding are available. So, the definition of programme management 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 it and why and how we will benefit. Programme management must create a suitable environment where well-informed business decisions can be made 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 phases and the dynamic action cycle comprise the dynamic process you are going to employ, so project management may now be defined as: Change: programmes and projects l 17 a 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 set constraints, either from a programme or as a stand-alone project with a defined scope. WHY IS PROGRAMME MANAGEMENT DIFFERENT FROM PROJECT MANAGEMENT? Although it is easy to consider programme management and project management to be different disciplines, in practice they also have many similarities. Both require an essential understanding of project processes. A programme manager with no knowledge of how to lead a project team successfully is not likely to make a success of a programme. To lead a project team successfully a project manager must have a detailed under- standing of all the processes employed in project management through the project phases. Programme and project management have some common characteris- tics. Both: • are objectives oriented – without objectives you have no outcomes; • are change oriented – aimed at creating something the organization needs but does not have; • are multi-disciplined – needing a wide range of skills to achieve success; • benefit from opportunism – requiring short cuts to be taken and old norms to be bypassed; • are performance oriented – requiring the setting of appropriate stan- dards and quality of outputs; • are control oriented – needing carefully designed controls to maintain the schedule; • question tradition – demand that managers avoid getting trapped by the old ways of doing things. The primary objective of programme management is to ensure that all the constituent projects together provide the benefit required, regardless of the 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 controlled less by the skill-set needed and more by ‘who is available’. Always ensure 18 l The programme and project environment you have some part in the selection process. You probably will not have a free hand to select who you want, but at least exert a strong influence. Many programmes and projects have run into difficulties because the wrong team members were selected at the outset. If programme and project management is accepted as an essential skill in your organization, you will find it possible to influence senior managers to support your efforts 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 the team only for the life of the programme or stand-alone project and then you return to your other operational duties – or another programme with possibly a different team. This situation leads to some specific differences when compared to the ‘fixed’ functional hierarchical team that is part of the organizational structure. Change: programmes and projects l 19 Table 2.2 Differences between programme management and project management Programme management 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 objectives programme or as a stand-alone project 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 programme performance project performance 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 In 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 team members; • encourage sharing of information, opinions and feelings for the team’s benefit; • 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 will almost certainly have come from different departments in the organiza- tion, maybe even different sites. Although you must attempt to do all the things just listed, you will have difficulty with some of them: • Team members report to you only for their work on the programme or project and to their line manager for other work – unless they are fully dedicated to your new team. • Your team membership is less likely to have stability, owing to chang- ing priorities of the team members’ line managers. • With a changing team membership, conditions for good teamwork are more difficult to create. • Often team members do not know each other, and setting team norms takes 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 or project work; this individual may be working on more than one project 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 your part to ensure that the team comes together regularly as a team to learn more about each other. 20 l The programme and project environment The organizational hierarchical structure is a matrix from which your team is drawn, and during the early stages of a programme or stand-alone project 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, so pay particular attention to getting to know and understand the team members yourself through setting up regular one-to-one meetings with each. Success in programme and project management is not going to be yours merely as a result of your using the right tools and techniques. It is only achieved through giving time to leading the team and overcoming these areas 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 carrying change to its intended conclusion, which is to give your organization something it does not currently have, but strongly desires. But where do the ideas for all this additional activity come from? You may feel the answer is obvious – the senior management, maybe. Yet anyone in the organization may come up with ideas. Creativity and idea generation are not the exclusive territory of the management. It is the people who do the day-to-day operational work who often have the best ideas for improving organizational performance, both in current operations and in terms of creating new products. To identify how programmes and projects are derived, it is appropriate to examine their sources in the organization. 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 one- year strategic plan. The corporate plan will set the future direction of the organization and establish broad targets. The strategic plan is a more detailed documentation of how the organization will meet the corporate plan through the next financial year. Incremental growth Greater effort will be directed towards achieving the operational targets for the year. Everyone whose job contributes to achieving the growth of current operations set out in the strategy seeks to improve performance. Continuous improvement is not to be undertaken via an initiative or campaign; it should be part of everyday work and a way of life for Change: programmes and projects l 21 everyone. 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. A considerable effort with a cross-functional team may then be needed to make a significant change effectively. The organization can gain consider- ably from treating this type of continuous improvement as a stand-alone project, because of the size and complexity of the work involved. Step change growth Most programme and project activity in an organization starts by someone recognizing the importance of addressing specific needs or opportunities now to yield increased defined benefits in the future. The purpose is to give the organization something that does not yet exist but is clearly defined as essential or highly desirable to support the process of achieving the strategic plan for the year. Some programmes may be of longer life and directed towards the corporate objectives within the three- or five-year plan. It may be considered necessary to start a programme comprising several projects that are connected by a common overall objective, as in our earlier example of a cost reduction programme. All have one important character- istic: they involve a step change or quantum leap from current business process or operations. They are directly derived from the organization’s vision for the future and form a significant contribution towards achieving that vision. How does this affect you as the programme or project manager? You have an interest in success, and a key element of success is the team, ie the people doing the work. It is not enough to just hand out the work you decide is necessary. The people in the team must participate in all aspects of the work from the start-up and definition through to completion. You can get the team motivated, enthusiastic about the work and focused on the objectives if you can explain the context of the programme or project within the organization’s strategy. Then everyone understands why the programme or project exists, its importance and its relative priority compared with other work. Occasionally you may be faced with a mandatory project – a change controlled by an external requirement such as new UK legislation, EU directives or health and safety requirements. Such projects often do not arouse enthusiasm but are still important for the organization and are always part of strategy. After all, failure to comply may lead to legal and commercial difficulties or financial penalties. 22 l The programme and project environment THE DYNAMIC LIFE CYCLE Because the programme or project has such specific characteristics, all limited by time, it naturally goes through a life cycle, just as a product does. The difference here is that the life cycle is dynamic and subject to reiteration at any time during the project. The front end of any programme or project is marked by the initial deci- sion to proceed. This start-up is often very ‘woolly’ and ill defined, and will be discussed in more detail in Chapter 5. All programmes and projects given an initial approval to start go through 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 Change: programmes and projects l 23 ACTIVE PROGRAMMES & STAND-ALONE PROJECTS NEW IDEAS OPPORTUNITIES STEP CHANGE GROWTH BUSINESS STRATEGIES CORPORATE STRATEGIC OBJECTIVES REVIEW AND PRIORITIZE CONTINUOUS IMPROVEMENT PORTFOLIO OF APPROVED ACTIVE PROGRAMMES AND STAND-ALONE PROJECTS BUSINESS BENEFITS £ £ CURRENT OPERATIONS INCREMENTAL GROWTH Figure 2.4 How programmes and projects are related to strategy business process. If it is considered a valid opportunity within the current 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 to proceed 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 with the agreement of those people with an interest in the outcomes. Once all definition work is complete and approved then Phase Two can be entered. • Phase Two: Planning. Phase Two is the processes of planning to derive a realistic schedule taking into account all the constraints that can be identified at this stage. When all those with an interest in the outcomes have approved the plans, the actual work can start, which is Phase Three. • Phase Three: Execution. Phase Three involves launching the actual work, ensuring everyone understands the plan; the controls you impose on the process; and making sure the plan is always up to date with any changes that occur. When all work is successfully complete and no outstanding major issues are unresolved then entry to Phase Four is approved. • Phase Four: Closure. Formal closure is agreed with the customer. All work is complete and the acceptance and handover signed off. Any follow-on activities are identified and assigned and the evaluation process is completed. THE DYNAMIC ACTION CYCLE In practice these phases are only a convenient way to help you to separate the programme or project work into blocks with a defined sequence. The reality is that no programme or project follows such a neat and simple process flow without a significant amount of reiteration. At any stage of the 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 work goes wrong. 24 l The programme and project environment The 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-making process to be invoked. The work done must be subjected to a rigorous review to determine the validity of allowing the programme or project to continue. This decision can commit the organization to using resources that do not exist, because of other commitments. Many questions must be asked by the management before this decision is made. Too often, rogue programmes or projects are allowed to continue unchecked and either subsequently fail owing to there being insufficient resources or seriously affect other important programmes by stealing their resources. Clearly, the Change: programmes and projects l 25 REVIEW & EVALUATE MONITOR PROGRESS DEFINE OBJECTIVES MONITOR PROGRESS PLAN THE WORK COMMUNICATE THE PLAN Problem CONCEPTION & DEFINITION REDEFINE REPLAN PHASE 1 PHASE 2 PHASE 3PHASE 4 PLANNING AND SCHEDULING EXECUTING THE WORK HANDOVER AND CLOSURE PHASE 0 OPPORTUNITY SELECTION OPPORTUNITIES IDENTIFIED REVIEW & EVALUATE MONITOR PROGRESS DEFINE MONITOR PROGRESS PLAN THE WORK Problem PHASE 11 PHASE 0 Problem Figure 2.5 The dynamic action cycle technical feasibility of continuing must be reviewed at the same time. In the past, many development projects (eg for a new product) have become ‘runaway trains’ consuming huge amounts of resources and still subse- quently failing, with large debt write-offs. The risk of such situations occurring can be minimized by using a regular review and decision process. At each of the steps in Figure 2.5 it may become necessary to recycle the process and redo some of the work. Such reiteration throughout the process maintains the dynamics. It provides a check that you are doing the right things to keep the work on track to the schedule and achieve the desired 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 the progress through the dynamic action cycle to the organization’s strategic needs. As the programme or project manager you will always demonstrate that your programme or project has clear objectives and that the work is on target. However, the senior management of the organization need to be kept 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 the programme 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 active programmes and projects. The PST also approves opportunities to be investigated and sets the priorities. We will look in more detail at the PST and how it operates in Chapter 3. The decision to open a phase gate for any programme or project is made only after a review by the PST. The decision is driven by a review of the programme 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 and projects; 26 l The programme and project environment [...]... programmes and projects as the teams carrying out the work This creates a common understanding of the processes involved and obliges everyone involved to work with the dynamic action cycle and phase gates discussed in Chapter 2 With an effective PST a clear decision process exists on all aspects of programme and project work and you have a clear understanding to whom you are reporting It also creates a. .. STEERING TEAM DIVISION 2 PROGRAMME STEERING TEAM DIVISION 3 PROGRAMME STEERING TEAM Concerned with all active programmes and projects that are of major interest to the Executive Team These are normally large programmes and projects that cross division boundaries for support and resources Concerned with all active programmes and projects that are of interest to the Division Management Team These are always... conduct of the work Such a board is totally internally focused on the programme or project and does not consider any Organizing for programme management l 35 other unrelated programme activities going on in the organization Attempts have been made to establish programme or project boards for every programme and project initiated in the organization This increases the bureaucracy, slows decision taking and. .. clear sense of 34 l The programme and project environment PROGRAMME STEERING TEAM SPONSOR SPONSOR SPONSOR SPONSOR Executive Manager Executive Manager Executive Manager Executive Manager PROGRAMME P1 PROGRAMME P2 Programme Manager Programme Manager PROJECT S3 Project Manager PROGRAMME P3 Programme Manager PROJECT S1 PROJECT S4 Project Manager Project Manager PROJECT S2 Project Manager Sponsor accountable... because this is where the initial idea was proposed, the resources are located and the work instigated Some of the work may involve people in one or more other divisions, and these other divisions should list each of their activities on their own register as either a project linked to a programme in another division or a sub -project linked to a project in another division – this may be a stand-alone project. .. will frequently come across the complaint that ‘We have too many projects’, and this is a signal that something is seriously at fault with the organizational culture The operations of the business are usually managed and controlled with a traditional rigid structure of senior managers (or directors) responsible for specific parts of the business Each senior manager manages an element of this structure,... be satisfied that the planned benefits meet their original expectations and the costs have not 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. .. from other management roles because: – it is a temporary role only for the period of the life cycle; – the team membership is flexible and changes as project needs vary; – it is a time- and resource-limited activity 31 3 Organizing for programme management In Chapter 2 you have been introduced to the concept of programmes as a way to manage the activities of an organization that are outside ‘normal operations’... middle-level and junior managers responsible for departments and sections, all staffed by the people who carry out the day -to- day work In this type of environment strategic planning is conducted at the senior manager level and may involve other managers A decision to start a programme or project that will use resources of the business, possibly at the expense of other activities, is normally made by the senior... senior management 32 l The programme and project environment team A programme or project manager is then appointed and a team allocated The first problem occurs at this point Who decides who is to join the team? Drawing the resources from different departments across the organization in a matrix (Figure 3.1) solves the problem, provided you can reach an agreement with all the individual managers concerned . enthusiasm but are still important for the organization and are always part of strategy. After all, failure to comply may lead to legal and commercial difficulties or financial penalties. 22 l The. TEAM SPONSOR Executive Manager SPONSOR Executive Manager SPONSOR Executive Manager SPONSOR Executive Manager SPONSOR Executive Manager SPONSOR Executive Manager SPONSOR Executive Manager Programme Manager PROGRAMME P2 Programme Manager PROGRAMME P3 Project Manager Project Manager PROJECT S2 Project Manager Project Manager PROJECT S1 Project Manager Project Manager PROJECT. possibly at the expense of other activities, is normally made by the senior management 32 l The programme and project environment team. A programme or project manager is then appointed and a team allo- cated.