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Introduction to Programs

Harish L PMP, RMP, PgMP, PfMP

Harishlr@AceproConsulting.com ; Harishlr@Hotmail.com, Ph: +91 984 554 6953, Skype: harishlr

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Agenda
• What is program ?
• When to go for a Project or Program or Portfolio?
• How to classify programs ?
• Program management and associate terms

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Program management – The challenge

You are busy and can’t go out.


You want your friend to get you a
GOOD, LATEST, TRENDY shirt from
the market.
How do you expect they plan to
manage this activity?
- PROJECT OR PROGRAM

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Organisation Vision, Mission

Vision
- What are we going to be?
- The desired end state

Example: Cancer free world To create a better everyday life


for the many people.
Mission
- Why we do that? Our business idea supports this vision
- The reason we exist by offering a wide range of well-
designed, functional home furnishing
Example: Eradication of cancer and products at prices so low that as
enhancement of quality of life of people many people as possible will be able
living with cancer to afford them.”

The best way to predict the future is to invent it ... The future is not laid out on a track. It is something that we can decide, and to the extent that we do not violate any
known laws of the universe, we can probably make it work the way that we want to…. “Inventing the Future", Alan Kay

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Business Value No 1 Car manufacturing company in the world (100M/year ! 40M/year)
3 -> 1 Capacity of the bldg., actions , sales & revenue market share,

Vision
• Business value is the net quantifiable benefit derived from
a business endeavour
• Expressed as a sum of all of tangible and intangible assets
of the organisation
• Organisations move closer to vision by increasing business
value
• Most commercial organisations express business value in
monetary terms

Organisation types:

Commercial Non-profit Government


organisation organisation organisation

SPMv4 Sec 1.6


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Vision
Organisation Strategy
• Mission leads to organisation strategies
• Strategies implemented by programs and projects by
bringing changes
• Business value is gained during operations What

Strategy drives the plan toward the goal. A plan


alone wanders aimlessly.
Why

How and steps

Take Right initiatives to the step

Business value
gained by
Do the initiatives in a Right way to
meet the steps

Changes are
created by

Organizations use portfolios, programs, and projects to increase business value to reach vision
SPMv4 Sec 1.5, Sec 2.3
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Portfolios
“Projects, Programs, sub-portfolios, and Operations managed as a group to achieve strategic objectives”. The projects or
programs within a portfolio may not necessarily be interdependent or directly related. Portfolio selects right
projects/programs to meet strategic objectives as per the organisation capability
Organization

Portfolio-1 Portfolio-2 Portfolio-3 Portfolio-4

Sub-portfolios
Sub-portfolios
Operations Programs
Sub-portfolios Project Programs
Programs
#n

Sub-Project
Sub-Project
Sub-Project

Sub-programs Operations
Operational Projects
Operations Projects
Projects
work
Operational Projects
SPMv4 Sec 1.2.2 work
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PMI Definitions:
Portfolio / Program / Project / Operations

• Portfolio: “Projects, Programs, sub-portfolios, and Operations managed


as a group to achieve strategic objectives. The projects or programs
within a portfolio may not necessarily be interdependent or directly
related.
• Program: “A group of related projects, subprograms, and program
activities that are managed in a coordinated way to obtain benefits not
available from managing them individually.”
• Project: “A temporary endeavor undertaken to create a unique product,
service, or result.”
• Operation: A work that is continuous or repetitive in nature, day-to-day
business and necessary to achieve organization strategic objectives

SPMv4 Sec 1.2.2, PMBOKv6 Sec 1.2.3.4


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PMI Definitions:
Portfolio / Program / Project / Operations
• Program: “A group of related projects, subprograms, and program activities that are managed in a coordinated way to
obtain benefits not available from managing them individually.”
• Project: “A temporary endeavor undertaken to create a unique product, service, or result.”
• Operation: A work that is continuous or repetitive in nature, day-to-day business and necessary to achieve organization
strategic objectives
Benefits
Start Date End Date

Product,
Project: Unique – For the first time Service,
or Result
Operations

Start Date Benefits


Benefits
End Date

Project – A Project – B Deliverable


Benefits Operations
Project – C Project – D

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Programs Deliver Benefits
Benefits:

1. traffic
2. Reduced commute time ( 1 hr to 30 mins)
3. LesReduces the s fuel
4. Space optimisation
5. Improved economy – Geneate new employment
6. Less traffic jam
7. Reduced accidents
8. Touristic attraction
Projects
1. Construction (multiple projects)
2. Land acquisition
3. Traffic mgmt. system
4. Lightings
5. Emergency readiness
6. Toll gate and flow
7. Awareness on google map
8. DLP (Defect Liability Period)

To manage opportunities and threats and to deliver benefits, program


components may be pursued in an iterative, non-sequential manner
10
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Decision Making: Portfolio/Program/Project/Operations
Trial and Error method
Ongoing actions Change actions Uncertainty:
• Lack of information, difficulty in predicting a cause-effect
relationship
• Hinders the ability to predict outcomes
• Expressed as continuum from known (low) to
High

Power-Based Learning-based
Methods Methods
knowable(medium) to unknown(high)
Ambiguity

(Portfolios) (Programs)
Uncertainty
Known Knowable Unknown

Ambiguity:
Administration based Performance based
Methods Methods • Characterized by number of possible solutions and not
Low

(Operations) (Projects) having clear path.


• Related to the likelihood of objectives to change over time.
• Expressed as continuum from pre-existing(low) to
Low High
developing(medium) to emergent (high)
Uncertainty
Ambiguity
Existing Negotiated Emergent

“I have not failed. I have found 100 ways of that don’t work !!”
- Thomas Alva Edison
Source: “Program Management “ by Michel Thiry, Ref: SPMv4, Sec 1.2, Sec 1.7.1
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Uncertainty - Everywhere
Strategic Objectives:
• 20% Increased profit margin by 2022
• 10% increased market coverage by 2024 Other projects and programs
• Be a top-10 technological leader in home automation products

Program objective:
Develop an AI powered home assistant by 2021 to contribute 5% profit to the overall objective
Benefits: • 40% profits (100M -> 140M)
• Creates a market for other
Technology advancements products
Planned funds not available • Builds org capability for similar
products in future (people,
Changing complexity process …)
Components with many processes Organisation priorities (CSFs),
Strategies change Merger / Acquisition

Program Benefits
Shift in consumer behaviour
Change in Resources availability
Frequent
Requirements change Compliance change …………………
Staff skill
Increased competition level changes Stakeholder turn-over

To manage opportunities and threats and to deliver benefits, program components may be pursued in an iterative, non-sequential manner

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A Program is NOT

• Complex project…. (But better managed as Program)


• Large projects…. (But better managed as Program)
• Multiple projects…
• On going operations…
• Computer programs..
• TV programs..

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Programs are in general..
• Have high level of uncertainty and ambiguity
• Meet business strategies in a fast-moving environment
• More closer to strategic level and have higher stake than projects
• Higher visibility by executive management
• Have high profile, large no. of stakeholders with diverse expectations
• Partnerships, new engagements, community work, organisation wide changes..
• Better designed to deliver benefits than projects
• Higher value addition to the organisation
• Have complex dependencies between modules

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Program Examples
• A new product development for the first time in the organisation / industry
• State of the art products, research and development work
• Where funds / resource availability is not clear or subjected to frequent changes
• eg. Start-ups, community / government work, low priority works
• Unclear or evolving requirements
• Where work is part of a bigger evolving system
• Large scale organisational changes
• Eg: Implementing/upgrading workflow management system across the organisation,
Implementing employee retention strategies etc..
• Large scale implementation
• Metro work, integrated township..

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Program Management – Practice Questions

❑ 3. Your manager has requested you to develop and ❑ 4. You are completing as a program manager for a
implement faster sales order processing through 150 program aimed to improve employee retention. As
sales offices across the organisation. You choose to go a result, employee retention is increased. There is
with a criticism that improvement is not because of
program, but because employees are not finding
other alternatives in the market. This has surfaced
A. Project because
B. Program
C. Operations
A. Programs do not have methods to showcase its
D. Portfolio achievements
B. It is difficult to establish cause-effect relationship
in a high level of uncertainty.
C. All Programs fail to achieve their objectives
D. You can’t establish success criteria for programs

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Program Components

Program
Subsidiary Program
Project
Also called as sub-programs, are programs
A temporary endeavours undertaken to
sponsored and conducted to pursue a
create a unique product, service or result,
subset of goals important to the primary
as described in the PMI-PMBOK
program Components

Sub-programs Operations Projects


Other program-related activities Operations
Other work Projects
Work processes or activities that are being
Projects
conducted to support a program, but that
are not directly tied to the subsidiary Operational Projects
programs or projects sponsored or work
conducted by a program
Eg: Training, planning, meetings

Ref: SPMv4, Sec 1.2

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Program Stakeholders

Partners
Program Manager
End users
Program Team
Society/Public
Program (Finance, procurement, HR, BA, Quality …)

Project managers and team

Customers Program Sponsor

Competitors
Program Steering Committee
Vendors
Legal/ Regulatory PgMO (PMO)
Q1: What is the difference between a stakeholder and a key stakeholder and a primary stakeholder or an important stakeholder?
Q1: Can a program have more than one sponsor ?

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Program Management – Practice Questions

❑1. Recently, because of the heavy work demanded by the program, you are coming home late quite often,
and your family is not happy about it. You need to

A. Care about their concerns as they are program stakeholders


B. Care about their concerns as they are program key stakeholders
C. Not worry about their concerns as they are not program stakeholders
D. Not worry about their concerns as it doesn’t affect the program anyway

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Program management is at least 1000 years old !!

• Program Outcome: A temple dedicated to Chennakeshava, Lord Vishnu at Belur


• Key Benefit: A sculptural icon to the world to celebrate victory
• Duration: 1012 – 1117 AD spanning three generations
• Sponsor: King Vishnuvardhana III
• Program Manager: Jakkanachari, the great sculptor of all times
• Projects: Stone & location selection, quarrying, prototype, sculpting, training, Integration …
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Program management is at least 1000 years old !!

Program Vision – A temple model

Roadmap – Rotating pillar


Sculpting wonder Can you think of other programs that you read in newspaper recently ?

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Program Management – Practice Questions

❑ 9. I am overseeing a medical project that involves installation of several medical equipment (like X-rays, Cathlab,
CT, MRI, Endoscopy units, Operating theatres etc) within the same hospital building. Each of these installations are
projects in their own rights.. Also, in the course of these installations, I interface with Mechanical, Electrical and
Plumbing (MEP) contractors to integrate these installations with the Bio-medical needs.
Furthermore, I am overseeing a similar project in another location simultaneously with this and using the same
(engineering) resource in other location.
How do I should classify this work?

A. Portfolio
Program: Perfecting the installation procedure
B. Project Project: Integrated system of medical equipment with bio medical needs
C. Program
Portfolio: Effiicent use of resources for maximized returns

D. Operations

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Program management – The challenge

You are busy and can’t go out.


You want your friend to get you a
GOOD, LATEST, TRENDY shirt from
the market.
How do you expect they plan to
manage this activity?
- PROJECT OR PROGRAM

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Workshop -1: Program Management

1. Identify the Programs, Projects and Operations in your work and


organisation.
2. What effort, if you have to do it again, you would choose to go in a
program way
3. Define a large scale hypothetical program and list its benefits to
organisation
4. Share your hypothetical program and its characteristics with the group

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Answers to Practice Questions

❑ 1. You are reviewing program dashboard with your ❑ 2. Recently because of the heavy work, you are
director. He suggest you to add additional coming home late quite often, and your family is
information into the dashboard, that was not not happy about it. You need to
present in the current dashboard template. So you
decided to
A. Care about their concerns as they are program
stakeholders
A. Add a new section in the dashboard and provide B. Care about their concerns as they are program
information key stakeholders
B. Apologise and deny additional information to C. Not worry about their concerns as they are not
director saying that it is not part of the template program stakeholders
C. Send additional information by mail along with D. Not worry about their concerns as it doesn’t
the dashboard you follow affect the program anyway
D. Consult your PMO for next steps

Answer: Option-D:
Answer: Option-B:

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Answers to Practice Questions

❑ 3. Your manager has requested you to develop and ❑ 4. You are completing as a program manager for a
implement faster sales order processing through 150 program aimed to improve employee retention. As
sales offices across the organisation. You choose to go a result, employee retention is increased. There is
with a criticism that improvement is not because of
program, but because employees are not finding
other alternatives in the market. This has surfaced
A. Project because
B. Program
C. Operations
A. Programs do not have methods to showcase its
D. Portfolio achievements
B. It is difficult to establish cause-effect relationship
in a high level of uncertainty.
Answer: More appropriate is Option-B C. All Programs fail to achieve their objectives
D. You can’t establish success criteria for programs

Answer: Option-B

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Program Management – Practice Questions

❑ 9. I am overseeing a medical project that involves installation of several medical equipment (like X-rays, Cathlab,
CT, MRI, Endoscopy units, Operating theatres etc) within the same hospital building. Each of these installations are
projects in their own rights..Also, in the course of these installations, I interface with Mechanical, Electrical and
Plumbing (MEP) contractors to integrate these installations with the Bio-medical needs.
Furthermore, I am overseeing a similar project in another location simultaneously with this and using the same
(engineering) resource in other location.
How do I should classify this work?

A. Portfolio
B. Project
C. Program
D. Operations

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Program Management – Practice Questions

❑ 9. Your program is initiated to derive multiple benefits. Some of them are tangible and some are intangible. How
do you calculate the overall benefits?

Tangible benefits: Intangible benefits:

1. Increased profits by 20% 1. Enhanced employee motivation


2. Decreased costs by 10% 2. Increased trust level by customers

Convert the above into monetary terms to arrive at increased business value due to the program:

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Strategic Management – Terms
Program -1: Establish new remote market by 2022 to help (?) sustain profit level from 20% to 30%

SO-1 SO-2 SO-3 SO-4 SO-5


• Increased revenue
• Grow earning per share
• Ensuring financial sustainability
Financial • Sustained profitability
• Managed cost
• Diversified markets

• Reduced operating cost SO-1 SO-2 SO-3 SO-4 SO-5


• Increased operational reliability

Mission
Operational • Ensure compliance
• Quality through lesson learnt
excellence • Maintain alignment across depts
• Increased automation

• Broad product range SO-1 SO-2 SO-3 SO-4 SO-5


• Best service
• Highest Quality/reliability
products
Customer • Increase market share
• Cross selling
• Understand my needs

Result Areas Strategies Strategic objectives (SO): Strategy implementation through roadmap Vision

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An ideal simple program
Strategic Objectives:
• Improve the economy of the region by 20% within next 4 years

Program Objectives:
• Reduce the travel time between City-A and City-D by 50% ( 1 hour to 30 mins) which help improve economy by 5%

Opening Gate Review -1 Gate Review -1 Gate Review -1 Gate Review -1 Closing Gate Review -1

A B C D

Question: You are leading a work to reduce the travel time between City-A and City-D. So you plan to build highway. Work
is expected to last for 4 years with overall budget allocation of 100 M.

What uncertain event or conditions you expect and how you see this as a program?

To manage opportunities and threats and to deliver benefits, program components may be pursued in an iterative, non-sequential manner

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Programs Classifications..

Strategic Compliant Emergent


programs programs programs

Ref: SPMv4, Sec 1.2.1 Which is the highest priority?

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Program Manager Skills

Coaching
Collaborative Facilitation Performance measurement

Program Manager

Time management
Contigency planning
Business ethics

Negotiation Vendor management


Cost– beneift
People management
Risk analysis analysis Emotional intelligence


Political
Mentoring
Project management Planning Management techniques

Ref: SPMv4, Sec 1.7


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Example: Program in a global company
Strategic Objectives / goal:
• Retain and enhance customer confidence

Program Objectives:
• Enhance security level of all client transactions with 3D security standards before 2023 across the globe

Country-A Projects in each location: Implementing the


Country-B
Pr Country-C security standards as per program
Country-n Pr management + Customisation to changing
Country-n Pr local compliance + local customer outreach
Country-n

Country-D Program management, Benefits


HQ:
Program management, uniform roll out of
Management technology, centralised program
infrastructure, procurement, Quality
planning and control…

A group of related projects, subprograms, and program activities that are managed in a coordinated way to obtain benefits not available from managing them individually

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Example: Program in a partnership environment
Strategic Objectives / goal:
• Multiple… it aligns with each partner organisations

Program Objectives:
• Develop and monetise the hybrid battery as an enabler for the mass market

Marketing firm
(working on a
volume
Partner-1 commission) Investing
Concept/proto company ( 60%)
type Decision making: Voting as per their share strength

Program
management
services Manufacturer
Electronics: company (20%)
Charge
controller
Applications Procurement
- Solar lantern, company ( gel,
toys, portable case,
devices electrodes etc)

A group of related projects, subprograms, and program activities that are managed in a coordinated way to obtain benefits not available from managing them individually

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Example: Program in a partnership environment
Strategic Objectives / goal:
• Establish as a leader in power grid solutions in APAC region

Program Objectives:
• Increased revenue/profit by quality software development and deploy customised solutions at clients locations to enable them with
better monitoring and control of their operations leading to lower cost of their operations

Customer -1

Customer -2
Software product development
Sub-program

Customer -3

Customer -4

A group of related projects, subprograms, and program activities that are managed in a coordinated way to obtain benefits not available from managing them individually

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Strategic Plan – Major components

Mission Why we exist

Vision What we want to be – Define the success

Goals What we must achieve for success

Objectives
What are the steps to achieve success (expressed in measurable steps)

Portfolios What are the right activities to achieve objectives

How an initiative can be performed rightly to achieve objectives


Operations Programs and Projects

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Benefits and Programs


Strategic Objective

Existing
market
20%
Capture 40% revenue increase by 5 years

Environment factors
20% from new
market Environment factors

Clear plan is available


B Factory 1 M cars
A F 5 cities with 25 sales and service outlet
D 10M $ for advertisement
E Project to establish new market
C
Program to Establish new market
Level of uncertainty and ambiguity makes the difference !!
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Typical Program Manager and interfaces
Customers

Partners
Partners
Internal Partners
Sponsor -1
Sponsors
Executive Program
Sponsor Manager
External Project in a
Sponsors Project in a
remote sitein a
Projects
remote site
remote sites

Program manager
Internal Projects in
Internal other
Project
Internal Operations
Project departments
Project
Project manager
Functional manager
Govt Industry Standard
Line manager Agencies Experts bodies
People manager Vendor -1
Vendor -1
Employee Vendor
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Program Complexity

Complexity factors for Program

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Program Examples
EastWest Electronics, over the years has gained good customer confidence, best-in the industry for employee relations.
With not many new orders, It is into loss for the last 1 year and is expected to continue this year. Board has set a
strategic objective to cut-down the operating costs by 20% to recover from losses in next one year.
You are called in to achieve the above benefit. You find that there are many ways to achieve, but each method has their
own uncertainty and further you should not dent any of the core strengths of the company. It is also that stakeholders
are not very clear about what are the best way to achieve the goal
1. Improved productivity - Quality dept - 5%
2. Improved process efficiency – Quality depat – 2%
3. Outsource to lower cost regions – Propc - 5%
4. Consolidate vendors – proc – 10%
5. Shared infracture – IT infra
6. Higher automation - IT infra
7. Reduce travel – Finance
8. Layoffs
8. Reduced power consumption, water and other logistics.
9. Forced shutdown

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Leading Program Management Standards

PMI SPMv4: Project Management Institute, Standard for Program Management Version 4

• A group of related projects managed in a co-ordinated way to obtain benefits and control not available from
managing them individually

APMG MSP: Managing Successful Programs, 2011 version

• A temporary flexible organization created to co-ordinate, direct and oversee the implementation of a set of
related projects and activities in-order to deliver outcomes and benefits related to the organization strategic
objectives

PMAJ P2M: Project Management Association of Japan, Project and Program Management for
Enterprise Innovation
• An undertaking in which a group of projects for achieving a holistic mission are organically combined

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Program Examples

Project
Weight loss Factory

Program

Product
Portfolio deve
dining

Operations

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Portfolio
Management

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Program Stakeholders

Program Stakeholders
Customers
Program
Sponsor team team …….
Other
Component individuals or
teams Program organisations

Regulatory agencies
Competitors
Funding Suppliers Potential
organisation customers

Q1: What is the difference between a stakeholder and a key stakeholder and a primary stakeholder or an important stakeholder?
Q1: Can a program have more than one sponsor ?

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Program Management Office (PgMO)
Management Office(MO) is a management
structure that standardizes program related Enterprise
governance processes and facilitates EMO
management office
sharing of resources
• Liaison between PfM/PgM/PM and the
executive management system Portfolio
PfMO PfMO
• Defines organization program management Management Office
standard – processes and procedures.
• Primary function is to support PfM/PgM/PM
managers Program/Project
PgMO-A PgMO-B PMO
- Coaching, mentoring, training, providing Management Office
oversight
- Co-ordinating communication across the change
agents
- Develop and manage process framework, PMO-1 PMO-2
templates, standards , monitoring compliance ,
internal audits, etc
- Identify and manage best practices, lesson learnt
- Centralised support for managing changes and
tracking issues and risk

Q1: Is the PMO common across all programs or specific to a program?


What is process tailoring? ? Q2: In case specific PMO is not present, how the PMO is formed?
Q3: What is process tailoring?
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Program Management – Practice Questions

❑ 1. You are reviewing program dashboard with your ❑ 2. Recently because of the heavy work, you are
director. He suggest you to add additional coming home late quite often, and your family is
information into the dashboard, that was not not happy about it. You need to
present in the current dashboard template. So you
decided to
A. Care about their concerns as they are program
stakeholders
A. Add a new section in the dashboard and provide B. Care about their concerns as they are program
information key stakeholders
B. Apologise and deny additional information to C. Not worry about their concerns as they are not
director saying that it is not part of the template program stakeholders
C. Send additional information by mail along with D. Not worry about their concerns as it doesn’t
the dashboard you follow affect the program anyway
D. Consult your PMO for next steps

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Harish L
Handset: +91 984 554 6953
Skype: harishlr
email: harishlr@aceproconsulting.com

harishlr@hotmail.com
Whatsapp: +91 9845546953
Google+: PgMP Lighthouse
Linked-In: https://in.linkedin.com/in/harishalr

www.aceproconsulting.com
463/B, 11th Cross,
2nd Phase, Girinagar,
Bangalore – 560085
India
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