Projects & Programs are two differentanimals, don't underestimate the gap

December 2014, Moscow

Thomas Walenta, PgMP, PMP, PMI Fellow

thwalenta@online.de

Not typical attributes of project managers:Strategy alignment, positive towards change, strategy execution

Which profession has these attributes?

A Study reveals a disturbing reality: even among projectsthat are delivered at least 90% on time & on budget,

majority fails to deliver 'business expectations'.

Business outcomeexpectations include

Delivery quality End-user adoption Business case

attainment Sponsor satisfaction

Challenged53%Succeeded

29%

Failed18%

Corporate Executive Board (CEB), www.pmo.executiveboard.com, 2009 Study 'Project Managing Business Outcome'

The top-performing projects in terms of budget and schedule complianceattain on average only 53% of their business outcome expectations.

What did the project managers miss?

Scope, budget, milestones = business benefits?

Successful project delivered product in time & budget

Successful benefits and created value

A benefit is the 'desired result of an initiative undertaken to meet a need or solve a problem'

Are Project Managers educated to transformbusiness goals to requirements and benefits?

Project Manager‘s curriculums & certifications focus on

– Magic triangle scope/quality – cost – time

– Supporting processes like risk, quality, procuring

– Soft skills to lead a team

– Organizational skills

– Technology costtime

scope/quality

How about strategic alignment, benefits realization andC-Suite communication?

• Benefits are specific to an industry / a company• Benefits delivery is often seen as a primary task of middle

management, consulting companies or not addressed specifically

• Word 'Benefits' is found 24 times in PMBoK Guide 5th edition, but129 times in PgM Standard 3rd edition, having benefits managementas key domain and related processes and artefacts

• Prince2 mentions benefits in the business case and benefits reviewplan ('Managing Successful Programs' MSP covers benefitsmanagement)

• IPMA ICB does not have a focus on benefits management, offersSuccess Criteria for projects

• ISO 21500: projects contribute to benefits, which are created byoperations

PM Standards and Methodologies provide no real help toProject Managers in delivering benefits

?Stake-holders

(sponsors)

Stake-holders(users)

Strategy

How to successfully to fulfill business expectations = deliver benefits to stakeholders?

Environment (society, jurisdiction, regulators, market etc)R

equi

rem

ents

Ben

efits

Program

Stake-holders

(sponsors)

Req

uire

men

ts

Stake-holders(users)

strategyProject A

deliverable

ScopeCostTime

Ben

efits

(sus

tain

ed)

Ben

efits

(con

solid

ated

)

Project Bdeliverable

ScopeCostTime

Discretebenefit

BenefitsIdentification

BenefitsAnalysis &Planning

Benefitstransition

Benefitssustainment

BenefitsDelivery

Understand what has to be done in addition to projectmanagement - and how it can be accomplished!

Component C Discretebenefit

Environment

Stake-holders

(sponsors)

Stake-holders(users)

Strategy

How to successfully to fulfill business expectations = deliver benefits to stakeholders?

Environment (society, jurisdiction, regulators, market etc)R

equi

rem

ents

Ben

efits

Program Benefits Management transforms stakeholderrequirements into sustained benefits

Based on PMI Standard for Program Mgmt, 3rd Ed. & IBM's WWPgMM

BenefitsIdentification

BenefitsAnalysis &Planning

Benefitstransition

Benefitssustainment

BenefitsDelivery

BusinessCase Program

MissionDefineCSFs Measurement

Structure

BenefitsRealisation

Plan

DefineProgram

ComponentsDefineKPIs Performance

Baseline

Start,monitor &transition

components

EvaluateKPIs

Monitororganizationalenvironment

Programdefinition

Program benefitsdelivery Program closure

TransitionPlan Verify

Transition

Operationaltasks

Program Lifecycle

Stake-holders

(sponsors)

Stake-holders(users)

strategy

Who and what influences requirements?Who can control requirements?

Project or Program Manager?

Req

uire

men

ts

Projectdeliverable

ScopeCostTime

Discretebenefit

Environment

Ben

efits

Project Program Portfolio

Objective Create previously agreeddeliverables

Achieve previously agreedand defined strategicobjectives, realize business benefits

Permanently attempt toreach the mission of theorganization

Duration Finite, short term Temporary, might beflexible

Infinite

Focus ofMgmt

Scope and deliverables Value and BenefitsStakeholder EngagementInterfaces and Integration

Prioritization of Projects &Management of Resources

Decision-making

In phases, based onmilestones/gates

In stages/projects, basedon benefits realization

In periods, based onmanagement cycle

Sponsor Program Manager orProject Sponsor

Strategic Objective Owner(Business Exec Sponsor)

Organization (CEO, COO)

Success In scope, quality, budget,time & stakeholdersatisfaction

Achieve benefits & satisfystakeholder needs

Aggregate investmentperformance

What is itabout

Efficiency Effectiveness Agility

Differences between projects, programs andportfolios

Program Project

PlanControl Deliver

Scope /Quality

TimeCost

UnderstandCreate

Achieve

Strategy /Benefits

GovernanceStakeholders

Program Management is outward focussed while ProjectManagement mainly deals with project internals

Capabilities of a successful program manager are differentto those of a good project manager

PMI Congress 2003 – Europe Paper Pellegrinelli, Partington and Young

Example: How I became a Program Manager

2001/2: working as a multi project manager for an investment bank's IT

2002: was asked for a project assessment on a troubled EU SAP rollout(my first encounter with SAP)

Issues identified: parallel rollouts, productive systems and SAP operations unalignedInsufficient communication with stakeholder groups

Proposed a program management system (PMS)Key attributes: enable integration and specific communication interfacesAnd … was asked to implement it (took 3 months and about 10 people)

Main issues identified: - Unaligned parallel rollouts, productive systems and SAP operations - Insufficient communication with stakeholder groups

Was then asked to run the remaining SAP rollouts as a program (UK, eastern Europe, Russia, end: 2008)

SLF4RelationshipManagement

SpecialistTeam

Program Management

SLF3Organizational

ChangeManagement

SLF2Architectual

Solution Board

SLF7Test &

TransitionManagement

SLF5Quality

Assurance / Risk

SLF6Program

MgmtOffice

SLF8Resource

Management

Oper-ations

Applic.Mainten.

User Help DeskProject 4

.........Project 1

Operational Layer Functions (Projects, Teams, Production)

Strategic Layer Functions

Project 3 Project 5

Project 6Project 2 Enduser

TrainingTeam

SponsorsStakeholders, e.g. Users

Business SteeringCommittee

A Program Management System (PMS) ensures the linkagebetween involved and affected stakeholder groups and the

integration among projects and with ongoing tasks

SLF1BusinessStrategy

Source: PMI Global Congress Toronto 2005Paper Th. Walenta

Transition Steps from Project to Program Orientation(by Liam Dillon, ldillon@turlon.com)

1. Delivery >>> Business

2. Schedules >>> Dependencies

3. Reporting >>> Escalation

4. Scope >>> Strategy

5. Crisis >>> Conflict

6. Team >>> Governance

7. Transfer >>> Transition

8.Salary >>> Challenge

9. Stress >>> Relaxation

10. Project Triangle >>>Program triangle

Change thethinking