The Standard for Program Management

Presented May 16, 2007 By Garry Flemings, PMP Lorraine Henry, PMP Rene Wickes, PMP, MBA For

PMI Heartland Chapter

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Copyright 2007 by Garry Flemings, Lorraine Henry, and Renee Wickes

Overview
Historical context The Structure of Program Management Introduction to Program Management The Program Management Life Cycle Program Management Processes Applying Program Management

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Context
1969, Project Management Institute forms
Today, PMI with more than 200,000 members in over 150 countries, is the worlds foremost advocate for the project management profession. A vital and forward-thinking organization, PMI is comprised of 247 chartered chapters (www.PMI.org, Mar 4, 2007)

1987, A Guide to the Project Management Body of Knowledge first published

updated in 1996 and 2004 now approved as an American National Standard (ANS) by the American National Standards Institute (ANSI)
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Context (contd)
2003, Organizational Project Management Maturity Model published: helps organizations assess strengths and weaknesses 2006, The Standard for Portfolio Management published 2006, The Standard for Program Management published
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Copyright 2007 by Garry Flemings, Lorraine Henry, and Renee Wickes

Standard
Definition: something considered by an authority or by general consent as a basis of comparison; an approved model The Random House College
Dictionary

For the standards in this discussion, the authority is PMI. These standards are approved models for your company to use in designing your processes.
Good: We based our companys processes on PMI standards. Less meaningful: Our company uses PMI processes.
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Portfolios, Programs, and Projects

Program Management, p 9

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Project Management
Definition, project: A project is a temporary endeavor undertaken to create a unique product, service, or result.
PMBOK Guide, p 5

Definition, project management: the application of knowledge, skills, tools and techniques to project activities to meet project requirements.
PMBOK Guide, p 8

PMP, Project Management Professional: the professions most globally recognized and respected credential
www.PMI.org, Mar 4, 2007 Copyright 2007 by Garry Flemings, Lorraine Henry, and Renee Wickes

Program Management
Program: a group of related projects managed in a coordinated way to obtain benefits and control not available from managing them individually.
Program Management, p 4

Program management: the centralized management of a program to achieve the programs strategic benefits and objectives. 8
Program Management, p 4
Copyright 2007 by Garry Flemings, Lorraine Henry, and Renee Wickes

Portfolio Management
Portfolio: a collection of components (i.e., projects, programs, portfolios, and other work such as maintenance and ongoing operations) that are grouped together Program Management, p 5 A portfolio always exists within an organization and it is comprised of a set of current initiatives.
Program Management, p 6

You cannot not do portfolio management. Youre doing it!

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Structure of Program Management

Chapter 1: Introduction
Defines program and program management Relates program management to portfolio management, to project management, and to organizational planning Introduces themes of program management
Benefits management Program stakeholder management Program governance
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Structure (contd)
Chapter 2: Program Life Cycle and Organization
Introduces a life cycle model of program management Relates the themes from Chapter 1 to all parts of the life cycle Discusses the phases of the life cycle in more detail

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Structure (contd)
Chapter 3: Program Management Processes
Breaks the phases of the model into 36 processes.
Similar: the PMBOK Guide breaks project management into 44 processes.

Discusses each process in some detail.

We wont cover them in this 75 minute period. We will cover the phases.
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Copyright 2007 by Garry Flemings, Lorraine Henry, and Renee Wickes

Part 2 - Program Life Cycle Part 3 Program Processes

Program Life Cycle
Program Governance Program Benefits Program Stakeholder Management

Program Processes
Initiating Planning Executing Controlling Closing
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Copyright 2007 by Garry Flemings, Lorraine Henry, and Renee Wickes

Program Life Cycle

G Mandate 1. PreProgram Set up G1 2. Program Setup G2 3. Establishing a Program Mgmt & Technology Infrastructure G3 4. Deliver Incremental Benefits G4 5. Closing the Program G5 = Gating Review

Governance Initiation Establish program Develop Charter & Business Case Follow Project Selection Process Secure Program Selection

Benefits Identification Identify & Quantify Business Benefits

Stakeholder Identification Identify Internal & External Stakeholders Identify Key Interests

Initiating Processes ID common benefits & dependencies ID benefits for each project/program ID resources ID project/program schedule Create program charter

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Program Life Cycle

G Mandate 1. PreProgram Set up G1 2. Program Setup G2 3. Establishing a Program Mgmt & Technology Infrastructure = Gating Review 5. Closing the Program 4. Deliver Incremental Benefits

G3

G4

G5

Governance Set-Up Align Program with Org Strategic Direction Detailed Program Plan

Benefits Analysis Derive & Prioritize Components Derive Benefit Metrics

Stakeholder Analysis Analyze Key Expectations & Motivations Program Change Impact Analysis Initial Risk Identification Establish Communication Preferences
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Planning Processes Define timeline and dependency flow chart Define Steering Committee and roles & responsibilities Define program management processes Define risk management Define communication plan
Copyright 2007 by Garry Flemings, Lorraine Henry, and Renee Wickes

Program Life Cycle

G Mandate 1. PreProgram Set up G1 2. Program Setup G2 = Gating Review

3. Establishing a Program Mgmt & Technology Infrastructure

G3

4. Deliver Incremental Benefits

G4

5. Closing the Program

G5

Governance Planning Establish PMO Monitor & Control Framework Completed Infrastructure Completed Systems & Communications Completed

Benefits Planning Establish Benefits Realization Plan Establish Benefits Monitoring Map Benefits into Program Plan

Stakeholder Planning Assess Stakeholder Influence & Importance Stakeholder Risk Analysis & Risk Profiling Stakeholder Roles & Responsibilities

Monitor & Control Resource Mgmt Communication Mgmt

Copyright 2007 by Garry Flemings, Lorraine Henry, and Renee Wickes

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Program Life Cycle

G Mandate 1. PreProgram Set up G1 2. Program Setup G2 3. Establishing a Program Mgmt & Technology Infrastructure G3 = Gating Review

4. Deliver Incremental Benefits

G4

5. Closing the Program

G5

Governance Monitor & Control Initiate Projects Assess Risk and Initiate Change Ensure Adherence to Policy

Benefits Realization Monitor Components Maintain Benefits Register Report Benefits

Stakeholder Monitor & Control Assess Program Changes and Impact to Stakeholder Maintain Stakeholder Communication Monitor Stakeholder Influence & Importance

Executing Process Controlling & Monitoring

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Program Life Cycle

G Mandate 1. PreProgram Set up G1 2. Program Setup G2 3. Establishing a Program Mgmt & Technology Infrastructure = Gating Review 4. Deliver Incremental Benefits 5. Closing the Program

G3

G4

G5

Governance Transition Execute Closure Lessons Learned Complete & Archive Documentation

Benefits Transition Consolidate Coordinated Benefits Transfer the On-going Responsibility

Stakeholder Transition Transfer the On-going Responsibility

Closing Process Document Lessons Learned Ensure each project completes all tasks Establish on-going benefits monitoring Communicate closure to Steering Committee
Copyright 2007 by Garry Flemings, Lorraine Henry, and Renee Wickes

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Applying Program Management

Initiating
Sales Program
Company A wants to:
Refocus remote offices processes to be more sales and marketing driven Transfer administrative process to main office Reassign remote office staff to focus on sales and marketing responsibilities

Resources
Production Business Technical
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Program Life Cycle

Program Management, p 9

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Applying Program Management

Scope of Project A
To administer
The payment of resources

In a way that:
Centralizes administration in the Main Office Allow for Remote Office input Provides electronic reports and payments Utilizes a secure, reliable technology platform Leverages opportunities to realize increased administrative efficiency Avoids adverse impact on expenses Supports audit processing

So that
Payment of resources timely and accurately and service levels are maintained.

As measured by
Reduction in staff and expenses by $xxx,xxx
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Applying Program Management

Scope of Project B Eliminate XYZ System
To
Eliminate Application System XYZ

In a way that
Reduces system redundancies Supports processing of data in new technology compliant system Aligns with objectives of Projects C and D

So that
Maintenance system costs are reduced

As measured by
Elimination of system costs

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Copyright 2007 by Garry Flemings, Lorraine Henry, and Renee Wickes

Applying Program Management

Scope of Project D Service and Support
To:
Maintain viable production systems

In a way that:
Supports production online and batch systems Resolves outstanding service and maintenance issues

So that:
The application system provides on time availability of onlines and reporting

As measured by
Reduction in number of production support items Increased Data Quality
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Program Organization
Program Board Initiating Sponsor Sustaining Sponsor IT Vice President Business Adminstration Production Vice President Remote Office Liason

Subject Matter Experts (SMEs) Program Directors Stakeholders Sales Product Financial Internal Audit Business IT Production Sales Production Sales IT Consulting

Program Manager(s) Business IT

Weekly Program Control Initiating Sponsor Project Directors Project Manager Remote Office Liason Initiative-based Project Resources Business IT Initiative-based Project Resources TBD

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Project Dependencies and Timeline

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Copyright 2007 by Garry Flemings, Lorraine Henry, and Renee Wickes

Risk Management
RISK RESPONSE PLAN AND REGISTER
Project Name/Number: Prepared by: Date:

Project A/ABCDEFG
Customer/End User Group:

PM 1/PM 2
Contact Name:

12/15/2006
Project Type (S/M/L):

Sales
Business Unit:

Project Directors
Project Manager:

LARGE
Project Sponsor:

Sales Number 1 Risk Event PM/Planning risk missing tasks, assumptions, estimates Knowledgeable resources resource constraints could cause a delay in anticipated project delivery date

Project Managers Probability High Medium Impact Medium Medium Overall Risk Medium Medium

Project Sponsor Risk Response Risk Buffer Detailed task estimates have increased Executing Phase dates, we can look for additional skilled resources or implement in phases. At a minimum, we could use small amount of the SMEs time as a consultant. Recruit SMEs to walkthru vision with assigned analysts and participate in walkthrus. Draw from risk buffer, if necessary. Risk Owner PMs PMs

Analysts performing program/ project tasks may not be the same analysts that estimated the effort for these tasks. This could result is discrepancies between estimates and the actual effort. Management and Sponsor acceptance of gating processes

Medium

Medium

Medium

PMs / SMEs

Low

Low

Low

Adherence to governance processes

PMs

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Copyright 2007 by Garry Flemings, Lorraine Henry, and Renee Wickes

Overall Risk Assessment Matrix

Risk Management
Impact High Moderate 1 3 1 Low 0 0 3 6 1 2

High Probability Moderate

Low

RISK ANALYSIS MATRIX Risk Response Strategies Analysis 1. PM may have missed tasks or underestimated 2. Knowledgeable resources 3. Estimator & Analyst Different Recruit assistance from SMEs Governance process sign off to be required by Sponsor or IFS PMO PCR Date Constant communication with other PMs Avoidance Mitigation Build in appropriate risk buffer Build in appropriate risk buffer Build in appropriate risk buffer Transfer Acceptance

4. Acceptance of gating process

5. Dependency on Other Projects

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Project Reporting & Communication

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Project Reporting & Communication

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Copyright 2007 by Garry Flemings, Lorraine Henry, and Renee Wickes

Program Change Control

ATTENDEES (name of individual in parenthesis if not in attendance): Project Directors Sustaining Sponsor Resource Managers Project Managers Change Manager Production Support Project
Project A Phase 1 Project A Phase 2A Project A Phase 2B Project A Pay Phase 2C Project A Phase 3 Project B Phase 1 Project B Phase 2 Project D Feb07 Project D Apr 07 Scanning Project F Project C Accounting Manual Process Change Management Project L

Project Stage CAT Logical/ Physical Dsn Logical Dsn Not Started Not Started Phys Dsn/CUT/CAT Not Started Completed CAT Warranty CAT CAT On Hold Execution Execution Completed

Impl Apr 07 Aug 07 Oct 07 TBD TBD May 07 Aug 07 Feb 07 Apr 07 Jan 07 Apr 07 Aug 07 On Hold Jun 07 Ongoing Feb 07

Mar 16 Green Yellow Red Purple Purple Red Purple Green Green Yellow Green Blue Green Green

Mar 09 Green Yellow Yellow Green Purple Purple Yellow Purple Green Green Yellow Green Blue Green Green

Mar 02 Green Yellow Purple Green Purple Purple Yellow Purple Green Green Yellow Green Blue Purple Green

Feb 23 Green Yellow Purple Purple Purple Yellow Purple Green Green Green Yellow Green Blue Purple Green

Feb 16 Green Green Purple Purple Purple Yellow Purple Green Green Green Yellow Green Blue Purple Green Green

Feb 09 Green Green Purple Purple Purple Yellow Purple Green Green Green Yellow Green Blue Purple Green Green

Feb 02 Green Yellow Purple Purple Purple Yellow Purple Green Green Green Yellow Green Blue Purple Purple Purple

Jan 26 Green Yellow Purple Purple Purple Yellow Purple Green Green Green Yellow Green Blue Purple Purple Purple

Jan 19 Yellow Yellow Purple Purple Purple Yellow Purple Green Green Green Yellow Green Blue Purple Purple Purple

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Copyright 2007 by Garry Flemings, Lorraine Henry, and Renee Wickes

Program Change Control

Project/Proj Mgr Project A Phase 1 PM 1/PM 2 Project A Phase 2A PM 1/PM 2 Status Green Stage/Cost to Date CAT Project Control Updates Status Issues and Follow-ups: None Yellow Logical Design/ Physical Design Status Issues: Project A Phase 2B PM 1/PM 2 Red Logical Design Status Issues: Project B Phase 1 PM 3 Issue 3 Issue 1

Follow ups: PM 2 - Develop Project Change Request

Follow-ups: None Red Test Plans, Physical Design, Code and Unit Test Status Issues: Project D April 2007 May 2007 PM 4/PM 5
Note A project is considered on schedule if all major milestones are within 5 days of their baseline end date. Status Indicators Green No project control problems Yellow Minor unresolved project control problems, in some cases a PCR may be required Red Multiple unresolved project control problems; in most cases a PCR is required Blue Project on hold, not started, or currently inactive Purple Project in initial planning stages with work plan not yet available or project is in a re-plan status

Issue 4 Issue 1

Follow-ups: None Apr Green May Yellow April - in CAT May - Physical Design Resources have been assigned for the May and August PRs. No Issues and Follow ups:

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Copyright 2007 by Garry Flemings, Lorraine Henry, and Renee Wickes

Program/Project Change Control

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Copyright 2007 by Garry Flemings, Lorraine Henry, and Renee Wickes

Lessons Learned
Lessons Learned Project Experience Recommended Process Improvements Other Recommendations
Areas of Focus Technical Experience Schedule Performance Cost Performance Risk Management Team Management Tool Performance Release Performance
Copyright 2007 by Garry Flemings, Lorraine Henry, and Renee Wickes

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Closing
Differences between Portfolio vs Program vs Project Management Overview of The Standard for Program Management Defined how a Program is structured Suggested ways to apply Program Management
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Q&A

Please complete your evaluations! Your speakers are: Garry Flemings, Lorraine Henry, and Rene Wickes.
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Reference Slides

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Additional Sources for Information

A Comprehensive Technology Portfolio Management Process (Borland) http://www.borland.com/resources/en/pdf/white_papers/technology_portfolio_ management.pdf A Concise Guide to Program Management: Fundamental Concepts and Issues by Mitchell Springer Program Management for Corporate Information Technology Leaders by John W., Ph.D. Rittinghouse and Bill Hancock Programme Management Demystified: Managing multiple projects successfully by Geoff Reiss The Program Management Office: Establishing, Managing And Growing the Value of a PMO by Craig J. Letavec Enterprise Programme Management: Delivering Value by David Williams and Tim Parr Program Management for Improved Business Results by Dragan Z. Milosevic, Russ Martinelli, and James M. Waddell U.S. Military Program Management: Lessons Learned and Best Practices by Gregory A. Garrett and Rene G. Rendon Middle Managers in Program and Portfolio Management by Tomas Blomquist and Ralf Muller
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Copyright 2007 by Garry Flemings, Lorraine Henry, and Renee Wickes

Additional Sources (contd)

Internet
Project Management Institute: www.pmi.org Heartland Chapter: www.pmiheartland.org

All PMI standards are available at many sources, including: www.pmibookstore.org

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Copyright 2007 by Garry Flemings, Lorraine Henry, and Renee Wickes

Presenter
Garry Flemings, PMP
Technical Consultant, ASC Information Technology IT project management since 1992, in both government and industry PMP, 1998 President, PMI Heartland Chapter, 2005 email: garry.pmi@cox.net
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Presenter
Lorraine Henry, PMP
Information Services Project Manager, Mutual of Omaha PMP in 1999 President, PMI Heartland Chapter, 2004 email: lorraine.henry@mutualofomaha.com

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Presenter
Renee Wickes, PMP
Program Manager, Hewlett-Packard Company MBA, 1996 PMP, 2002 President, PMI Heartland Chapter, 2007 email: renee.wickes@hp.com

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Copyright 2007 by Garry Flemings, Lorraine Henry, and Renee Wickes

This Session
Youll know the relationship of The Standard for Program Management to the better known A Guide to the Project Management Body of Knowledge (PMBOK Guide). Youll know the structure of The Standard for Program Management. Youll have considered some ways to apply The Standard for Program Management to Heartland companies.
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Copyright 2007 by Garry Flemings, Lorraine Henry, and Renee Wickes

Sources of Information
The Standard for Program Management 2006 Project
Management Institute, Inc. Chapter 2 Program Life Cycle and Organization page 17 28 Appendix E Benefits Assurance and Sustainment pages 87 89

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Copyright 2007 by Garry Flemings, Lorraine Henry, and Renee Wickes