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

1
The Standard for
Program Management
Presented May 16, 2007
By
Garry Flemings, PMP
Lorraine Henry, PMP
Renée Wickes, PMP, MBA
For
PMI
®
Heartland Chapter
© Copyright 2007 by Garry Flemings, Lorraine Henry, and Renee Wickes
2
Overview
• Historical context
• The Structure of Program Management
• Introduction to Program Management
• The Program Management Life Cycle
• Program Management Processes
• Applying Program Management
© Copyright 2007 by Garry Flemings, Lorraine Henry, and Renee Wickes
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Context
• 1969, Project Management Institute forms
– Today, PMI “with more than 200,000 members in over
150 countries, is the world’s 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)

© Copyright 2007 by Garry Flemings, Lorraine Henry, and Renee Wickes
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Context (cont’d)
• 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
© Copyright 2007 by Garry Flemings, Lorraine Henry, and Renee Wickes
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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 company’s processes on PMI
standards.”
– Less meaningful: “Our company uses PMI
processes.”
© Copyright 2007 by Garry Flemings, Lorraine Henry, and Renee Wickes
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Portfolios, Programs, and
Projects
• Program Management, p 9
© Copyright 2007 by Garry Flemings, Lorraine Henry, and Renee Wickes
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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
profession’s most globally recognized and
respected credential” www.PMI.org, Mar 4, 2007
© Copyright 2007 by Garry Flemings, Lorraine Henry, and Renee Wickes
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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
program’s strategic benefits and
objectives.” Program Management, p 4
© Copyright 2007 by Garry Flemings, Lorraine Henry, and Renee Wickes
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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
You cannot not do portfolio management. You’re doing it!
• “A portfolio always exists within an organization
and it is comprised of a set of current initiatives.”
Program Management, p 6
© Copyright 2007 by Garry Flemings, Lorraine Henry, and Renee Wickes
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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
© Copyright 2007 by Garry Flemings, Lorraine Henry, and Renee Wickes
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Structure (cont’d)
• 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
© Copyright 2007 by Garry Flemings, Lorraine Henry, and Renee Wickes
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Structure (cont’d)
• 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 won’t cover them in this 75 minute period. We
will cover the phases.
© Copyright 2007 by Garry Flemings, Lorraine Henry, and Renee Wickes
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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
© Copyright 2007 by Garry Flemings, Lorraine Henry, and Renee Wickes
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Program Life Cycle
1. Pre-
Program
Set up
2. Program
Setup
3. Establishing a
Program Mgmt &
Technology
Infrastructure
4. Deliver
Incremental
Benefits
5. Closing
the
Program
G
= Gating Review
G5 G3 G1 G4 G2
Stakeholder
Identification
Identify Internal &
External
Stakeholders
Mandate
Identify Key
Interests
Governance
Initiation
Establish program
Develop Charter &
Business Case
Secure Program
Selection
Follow Project
Selection Process
Benefits
Identification
Identify & Quantify
Business Benefits
Initiating Processes
ID common benefits & dependencies
ID benefits for each project/program
ID resources
ID project/program schedule
Create program charter
© Copyright 2007 by Garry Flemings, Lorraine Henry, and Renee Wickes
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Program Life Cycle
1. Pre-
Program
Set up
2. Program
Setup
3. Establishing a
Program Mgmt &
Technology
Infrastructure
4. Deliver
Incremental
Benefits
5. Closing
the
Program
G
= Gating Review
G5 G3 G1 G4 G2
Governance
Set-Up
Align Program
with Org Strategic
Direction
Detailed Program
Plan
Mandate
Benefits
Analysis
Derive &
Prioritize
Components
Derive Benefit
Metrics
Stakeholder
Analysis
Analyze Key
Expectations &
Motivations
Initial Risk
Identification
Program Change
Impact Analysis
Planning Processes
Define timeline and dependency flow chart
Define Steering Committee and roles & responsibilities
Define program management processes
Define risk management
Define communication plan
Establish
Communication
Preferences
© Copyright 2007 by Garry Flemings, Lorraine Henry, and Renee Wickes
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Program Life Cycle
1. Pre-
Program
Set up
2. Program
Setup
3. Establishing
a Program
Mgmt &
Technology
Infrastructure
4. Deliver
Incremental
Benefits
5. Closing
the
Program
G
= Gating Review
G5 G3 G1 G4 G2
Governance Planning
Infrastructure
Completed
Establish PMO
Monitor & Control
Framework
Completed
Mandate
Systems &
Communications
Completed
Benefits Planning
Map Benefits into
Program Plan
Establish Benefits
Realization Plan
Establish Benefits
Monitoring
Stakeholder Planning
Stakeholder Risk
Analysis & Risk
Profiling
Assess Stakeholder
Influence &
Importance
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
1. Pre-
Program
Set up
2. Program
Setup
3. Establishing a
Program Mgmt &
Technology
Infrastructure
4. Deliver
Incremental
Benefits
5. Closing
the
Program
G
= Gating Review
G5 G3 G1 G4 G2
Initiate Projects
Assess Risk and
Initiate Change
Ensure Adherence
to Policy
Mandate
Governance Monitor
& Control
Benefits
Realization
Monitor
Components
Maintain
Benefits
Register
Report Benefits
Assess Program
Changes and
Impact to
Stakeholder
Maintain
Stakeholder
Communication
Monitor Stakeholder
Influence &
Importance
Stakeholder Monitor
& Control
Executing Process
Controlling & Monitoring
© Copyright 2007 by Garry Flemings, Lorraine Henry, and Renee Wickes
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Program Life Cycle
1. Pre-
Program
Set up
2. Program
Setup
3. Establishing a
Program Mgmt &
Technology
Infrastructure
4. Deliver
Incremental
Benefits
5. Closing
the
Program
G
= Gating Review
G5 G3 G1 G4 G2
Governance
Transition
Execute Closure
Mandate
Complete &
Archive
Documentation
Lessons Learned
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


© Copyright 2007 by Garry Flemings, Lorraine Henry, and Renee Wickes
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Program Life Cycle
• Program Management, p 9
© Copyright 2007 by Garry Flemings, Lorraine Henry, and Renee Wickes
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• 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
Applying Program Management
© Copyright 2007 by Garry Flemings, Lorraine Henry, and Renee Wickes
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• 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

Applying Program Management
© Copyright 2007 by Garry Flemings, Lorraine Henry, and Renee Wickes
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• 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 on-
lines and reporting
– As measured by
• Reduction in number of production support items
• Increased Data Quality



Applying Program Management
© Copyright 2007 by Garry Flemings, Lorraine Henry, and Renee Wickes
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Program Organization
Program Board
Initiating Sponsor
Sustaining Sponsor
IT Vice President
Business Adminstration
Production Vice President
Remote Office Liason
Program Directors
Business
IT
Program Manager(s)
Business
IT
Subject Matter Experts (SME’s)
Production Sales
Production Sales
IT
Consulting
Initiative-based Project Resources
Business
IT
Initiative-based Project
Resources
TBD
Stakeholders
Sales
Product
Financial
Internal Audit
Weekly Program Control
Initiating Sponsor
Project Directors
Project Manager
Remote Office Liason
© Copyright 2007 by Garry Flemings, Lorraine Henry, and Renee Wickes
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Project Dependencies and Timeline
© Copyright 2007 by Garry Flemings, Lorraine Henry, and Renee Wickes
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Risk Management
RISK RESPONSE PLAN AND REGISTER
Project Name/Number: Prepared by: Date:
Project A/ABCDEFG PM 1/PM 2 12/15/2006
Customer/End User Group: Contact Name: Project Type (S/M/L):
Sales Project Directors LARGE
Business Unit: Project Manager: Project Sponsor:
Sales Project Managers Project Sponsor

Number Risk Event Probability Impact
Overall
Risk
Risk Response Risk Owner
1 PM/Planning risk – missing tasks,
assumptions, estimates
High Medium Medium Risk Buffer PM’s

2
Knowledgeable resources –
resource constraints could cause
a delay in anticipated project
delivery date
Medium Medium Medium 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 SME’s time as a
consultant.
PM’s

3
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.
Medium Medium Medium Recruit SME’s to walkthru “vision”
with assigned analysts and
participate in walkthru’s. Draw from
risk buffer, if necessary.
PM’s / SME’s
4 Management and Sponsor
acceptance of gating processes
Low Low Low Adherence to governance processes PM’s

© Copyright 2007 by Garry Flemings, Lorraine Henry, and Renee Wickes
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Risk Management
Overall Risk Assessment Matrix
Impact

High

Moderate
Low

High

6

1
0

Probability

Moderate
1

3

0


Low

2

1

3


RISK ANALYSIS MATRIX
Risk Response Strategies
Analysis Avoidance Mitigation Transfer Acceptance
1. PM may have missed tasks or
underestimated
Build in appropriate risk buffer
2. Knowledgeable resources Build in appropriate risk buffer
3. Estimator & Analyst Different Recruit assistance from
SME’s
Build in appropriate risk buffer
4. Acceptance of gating process Governance process sign off
to be required by Sponsor or
IFS PMO

5. Dependency on Other Projects PCR Date
Constant communication with other
PM’s

© Copyright 2007 by Garry Flemings, Lorraine Henry, and Renee Wickes
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Project Reporting & Communication
© Copyright 2007 by Garry Flemings, Lorraine Henry, and Renee Wickes
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Project Reporting & Communication
© Copyright 2007 by Garry Flemings, Lorraine Henry, and Renee Wickes
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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
Stage
Impl Mar
16
Mar
09
Mar
02
Feb
23
Feb
16
Feb
09
Feb
02
Jan
26
Jan
19
Project A Phase 1 CAT Apr 07 Green Green Green Green Green Green Green Green Yellow
Project A Phase 2A
Logical/
Physical Dsn
Aug 07 Yellow Yellow Yellow Yellow Green Green Yellow Yellow Yellow
Project A Phase 2B Logical Dsn Oct 07 Red
Yellow
Green
Purple
Green
Purple Purple Purple Purple Purple Purple
Project A Pay Phase 2C Not Started TBD Purple Purple Purple Purple Purple Purple Purple Purple Purple
Project A Phase 3 Not Started TBD Purple Purple Purple Purple Purple Purple Purple Purple Purple
Project B Phase 1
Phys
Dsn/CUT/CAT

May 07

Red Yellow Yellow Yellow Yellow Yellow Yellow Yellow Yellow
Project B Phase 2 Not Started

Aug 07 Purple Purple Purple Purple Purple Purple Purple Purple Purple
Project D – Feb07 Completed Feb 07

Green Green Green Green Green Green
Project D – Apr 07


CAT


Apr 07 Green Green Green Green Green Green Green Green Green
Scanning Warranty Jan 07 Green Green Green Green Green Green Green Green Green
Project F CAT Apr 07 Yellow Yellow Yellow Yellow Yellow Yellow Yellow Yellow Yellow
Project C CAT Aug 07 Green Green Green Green Green Green Green Green Green
Accounting

On Hold On Hold Blue Blue Blue Blue Blue Blue Blue Blue Blue
Manual Process

Execution

Jun 07

Green Green Purple Purple Purple Purple Purple Purple Purple
Change Management Execution Ongoing Green Green Green Green Green Green Purple Purple Purple
Project L Completed Feb 07 Green Green Purple Purple Purple

*Legend on Next Slide
© Copyright 2007 by Garry Flemings, Lorraine Henry, and Renee Wickes
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Program Change Control
 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
Project/Proj Mgr Status Stage/Cost to Date Project Control Updates
Project A – Phase 1
PM 1/PM 2


Green CAT Status

Issues and Follow-ups: None
Project A – Phase
2A
PM 1/PM 2


Yellow

Logical Design/ Physical
Design
Status
Issues:
 Issue 1
Follow ups:
 PM 2 - Develop Project Change Request
Project A – Phase
2B
PM 1/PM 2
Red

Logical Design Status
Issues:
 Issue 3
Follow-ups: None
Project B – Phase 1

PM 3
Red

Test Plans, Physical
Design, Code and
Unit Test
Status
Issues:
 Issue 4
 Issue 1
Follow-ups: None
Project D –
April 2007
May 2007

PM 4/PM 5
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:

© Copyright 2007 by Garry Flemings, Lorraine Henry, and Renee Wickes
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Program/Project Change Control
© Copyright 2007 by Garry Flemings, Lorraine Henry, and Renee Wickes
36


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
37
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
© Copyright 2007 by Garry Flemings, Lorraine Henry, and Renee Wickes
38
Q & A
Please complete your evaluations!
Your speakers are:
Garry Flemings, Lorraine Henry, and Renée Wickes.
© Copyright 2007 by Garry Flemings, Lorraine Henry, and Renee Wickes
39
Reference Slides
© Copyright 2007 by Garry Flemings, Lorraine Henry, and Renee Wickes
40
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
© Copyright 2007 by Garry Flemings, Lorraine Henry, and Renee Wickes
41
Additional Sources (cont’d)
• Internet
– Project Management Institute: www.pmi.org
– Heartland Chapter: www.pmiheartland.org
• All PMI standards are available at many
sources, including: www.pmibookstore.org
© Copyright 2007 by Garry Flemings, Lorraine Henry, and Renee Wickes
42
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
© Copyright 2007 by Garry Flemings, Lorraine Henry, and Renee Wickes
43
Presenter
• Lorraine Henry, PMP
– Information Services Project Manager,
Mutual of Omaha
– PMP in 1999
– President, PMI Heartland Chapter, 2004
– email: lorraine.henry@mutualofomaha.com
© Copyright 2007 by Garry Flemings, Lorraine Henry, and Renee Wickes
44
Presenter
• Renee Wickes, PMP
– Program Manager,
Hewlett-Packard Company
– MBA, 1996
– PMP, 2002
– President, PMI Heartland Chapter, 2007
– email: renee.wickes@hp.com
© Copyright 2007 by Garry Flemings, Lorraine Henry, and Renee Wickes
45
This Session
• You’ll know the relationship of The Standard for
Program Management to the better known A
Guide to the Project Management Body of
Knowledge (PMBOK
®
Guide).
• You’ll know the structure of The Standard for
Program Management.
• You’ll have considered some ways to apply The
Standard for Program Management to Heartland
companies.
© Copyright 2007 by Garry Flemings, Lorraine Henry, and Renee Wickes
46
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