instructions to follow 1. 2. 3. · managing successful programmes (msp®) is a best-practice...

Instructions to Follow

Please follow the below Instructions before reading this workbook:

1. Open workbook in Adobe Reader or any other pdf reader

2. Write your answer and Save the pdf by pressing Ctrl+S

3. Upload this workbook at the time you request for the exam

Contents

About this Workbook ................................................................................................... 1

Overview, Principles, and Governance Themes ........................................................... 4

Organisation and Programme Office ............................................................................ 14

Vision ........................................................................................................................... 22

Leadership and Stakeholder Engagement ................................................................... 28

Benefits Management .................................................................................................. 40

Blueprint Design and Delivery ...................................................................................... 50

CASE STUDY: Organising ‘the Greatest Show on Earth’ ................................................ 61

Planning and Control .................................................................................................... 65

The Business Case ......................................................................................................... 78

Risk and Issue Management ......................................................................................... 88

Quality and Assurance Management ......................................................................... 102

Transformational Flow................................................................................................ 113

CASE STUDY: Manchester City Council Housing .......................................................... 130

About this Workbook

This workbook follows the MSP® Foundation and Practitioner Course at The Knowledge Academy and works hand-in-hand with the courseware used within the course.

Use this resource to support your learning as it follows the 11 modules of the MSP® course. Throughout the modules, there are exercises to complete that will be based upon your understanding of the material, both in and outside the classroom. These enable you to assess your understanding of the topics included and how you might apply them to your own programme management experience. Try to not review the material while you attempt the exercises, in order to get the most out of them.

At the end of each module is a multiple-choice quiz that is based purely on this workbook and how well you have paid attention! These are mainly to test how much you have taken on board, so they are designed to be taken without the use of the material. Perhaps attempt them at a later point, before you begin the next module, to ensure you have absorbed the material.

You will also come across some case studies, giving examples of programmes where MSP® has been applied effectively. These are to demonstrate the practical application of the material in this workbook, and you are encouraged to take ideas from these for when you manage your own programmes.

This introduction covers the use and benefits of MSP® before the course modules begin.

Background/History

Managing Successful Programmes (MSP®) is a best-practice framework for delivering complex programmes in accordance with long-term strategies. MSP® was developed for and is owned by AXELOS Limited.

MSP® was first released in 1999 in recognition of the need for greater links between an organisation’s longer-term strategy, objectives and goals, and the projects being undertaken by that organisation. This initial version of MSP® drew together a number of evolving approaches to managing the links between projects and business change.

The current (third) version of MSP® was released in 2007 and demonstrated a significant advance in the maturity of programme management by expanding the original concepts and introducing new tools and techniques. The development of this current version of the framework distilled the lessons learned and experiences of a wide range of contributors into a workable and flexible form.

MSP® defines programme management as ‘the action of carrying out the coordinated organisation, direction and implementation of a dossier and transformation activities to achieve outcomes and realise benefits of strategic importance to the business.’

© The Knowledge Academy 2020 1

Why Would an Organisation Use MSP®?

MSP® is designed to support change within an organisation or in the wider community. Therefore MSP® would, or should, be of interest to any organisation which is undertaking a change. This would include:

Organisations that are merging, or going through an acquisition Government agencies rolling out the mechanisms to implement new legislation Organisations developing and launching new products Partnerships that are developing a new facility

Organisations need to have a reasonable level of project management maturity to enable the programme management framework to be efficiently applied. Organisations in this position are often interested in applying a more holistic approach to their work which is more focused on stakeholder engagement and benefits management.

Who Uses MSP®?

A large number of organisations that use MSP® are in the public sector. This is a result of the design of the framework being based on long-term policy implementation, which suits the public sector environment.

Greater awareness and familiarity with MSP® is leading to its application in a wider variety of organisations. The private sector is increasingly recognising the advantages of using MSP® and organisations in the following sectors have established MSP® environments:

Finance Defence Energy Oil and gas Fast-moving consumer goods

What Are the Benefits of Using MSP®?

MSP® is a pragmatic approach to programme management which ensures that strong leadership and governance structure is established and maintained. There is a strong emphasis placed on stakeholder engagement and benefits realisation management. MSP® ensures that these areas receive the focus required to ensure change occurs and benefits are generated.

The benefits of adopting a recognised approach are primarily that all programmes will be managed in the same way – utilising best-practice. This will raise the visibility of all aspects of the programme and enable the assurance and governance functions to operate effectively.

MSP® will provide experienced project and senior managers with skills, techniques, and tools which they are not normally familiar with, thus providing them with another tool to add to their professional toolkit.


MSP® Structure

MSP® Framework and Concepts

Based on AXELOS MSP® material. Reproduced under licence from AXELOS Limited. All rights reserved.


Overview, Principles, and Governance Themes

The MSP® framework was designed to enable the delivery of significant and longer-term change, which will allow the organisation to achieve its strategic objectives.

The programme requires the management of two distinct environments to enable the realisation of benefits. These environments are:

The delivery of projects that create the capability for change The operational environment which will undergo a change in order to deliver the

benefits

What is a Programme?

A programme is a temporary, flexible organisation structure that has been created to coordinate, direct, and oversee the implementation of a set of related projects and activities in order to deliver outcomes and benefits related to an organisation’s strategic objectives. A programme is also likely to have a life that spans several years.

MSP® recognises three broad categories of programme. All three categories can implement the MSP® framework, but each will apply a different focus on the manner in which MSP® is applied.

The three categories are:

Vision-led programmes Emergent programmes Compliance programmes

Vision-led Programmes

A vision-led programme takes a top-down approach by establishing a clear vision at the commencement of the programme, which is closely aligned to the corporate strategy. This type of programme is usually innovative and involves significant change.

Emergent Programmes

Emergent programmes evolve from the current workload and aim to combine existing projects and associated tasks with the objective of exploiting any synergies.

There must be recognition that there is an advantage to combining the projects by developing an emergent vision with a common end-goal.

Emergent programmes are faced with a number of issues because projects will already be underway and may have established their own identity and culture. Drawing these projects together will require the planned engagement of the stakeholders.


Compliance Programmes

In some instances, an organisation will have no option but to change. This may be because of one of several drivers such as:

Market forces The potential negative effect of maintaining the status quo Legislative changes Mergers and acquisitions

These programmes must be commissioned and completed, and therefore the focus tends to be less on the realisation of benefits and more on the achievement of the obligatory outcome.

What is Programme Management?

MSP® defines programme management as ‘the action of carrying out the coordinated organisation, direction, and implementation of a dossier of projects and transformation activities (i.e. the programme) to achieve outcomes and realise benefits of strategic importance to the business’.

The MSP® framework is designed to enable the delivery of transformational change and the achievement of an organisation’s strategic objectives.

Programmes exist in the tension zone between the strategic direction of the organisation, the delivery of change capability by projects and the need to maintain business performance and stability while realising and exploiting the benefits from the investments.

What is a Project?

A project is a temporary organisation that is created for delivering one or more business outputs according to a specified business case.

Elements of the MSP® Framework

The MSP® framework comprises three major elements:

Principles: Seven principles of programme management which are applied to everyprogramme

Governance themes: Nine aspects of governance which ensure that the programmecan be controlled

Transformational flow: A series of interdependent steps which enable the change tobe coordinated and delivered with benefits realised

The principles identified by MSP® represent key aspects of programme management, which should be adopted to ensure success. The principles are based upon experience, and are:


Universal – they apply to all programmes Self-validating – they have been proven by experience Empowering – they allow practitioners who apply this framework the ability to

influence the outcomes of the changes applied

These principles have been distilled into seven features, which form the foundation of the framework.

The seven principles of programme management are

1. Remaining aligned with corporate strategy2. Leading change3. Envisioning and communicating a better future4. Focusing on benefits and threats5. Adding value6. Designing and delivering a coherent capability7. Learning from experience

Governance Themes

The governance themes represent topics that need to be addressed constantly throughout the life of the programme. It is the control framework that enables the programme to deliver and ensures that there is visibility for the stakeholders.

These themes are as follows:

Organisation Vision Stakeholder Engagement and Leadership Blueprint Design and Delivery Benefits Realisation Management Business Case Risk and Issue Management Quality

Each theme will be detailed in-depth in this workbook, and comprises the syllabus by which the MSP® course is based on.


EXERCISE

Illustrate the key differences between a programme and a project, using the knowledge gained in both the classroom course and this workbook:

Programme Management Environment

This is the circumstance and condition(s) within which a programme must operate. Many environmental factors can influence a programme, therefore affecting how it is organised and managed – this will need to be understood and thought about by a member of the management team.

A major programme could end up beyond the scope of one organisation, often, then, requiring a joint venture where two (or more) partner organisations will seek to achieve common goals. However, a downside to this is that it can make stakeholder management and funding a lot more of an intricate and complex process.

In a project, there is more likely to be a distinct and tangible output, whereas programmes will address the wider outcome of driven goals and identify how to pull together the benefits of a project to improve the programme itself overall.

For the successful outcome of a programme, there is a vital need for proper planning, design, and integration. Many moving parts will come together to create a high-quality service, and due to this complexity of the delivery environment, it can yield a massive impact on a programme.

Project Programme

e.g. Shorter timescale e.g. Integrate projects


Programme Management Environments


EXERCISE

The London 2012 Olympic Games is an example of how the many moving parts of a delivery environment ended up shaping the overall programme. Communication between several different operators, as well as a constrained delivery area, were instrumental in affecting the programme’s outcome.

Can you describe another example where a complex delivery environment has an impact on a programme’s outcome?


Fill out your answer in the box


Strategies and Plans

Strategy

An approach or line to take, designed to achieve a long-term aim. Strategies can exist at different levels in an organisation, and in MSP®, there are corporate strategies that are used to achieve objectives. Programmes then develop strategies aligned with these corporate objectives against the particular delivery areas.

Below are the different available Management Strategies

Resource Management Strategy Monitoring and Control Strategy Information Management Strategy Quality and Assurance Management Strategy Risk Management Strategy Issue Management Strategy Stakeholder Engagement Strategy Benefits Management Strategy

The Seven Principles of Programme Management: A Closer Look

Remaining aligned with corporate strategy:

Programmes will always need to stay aligned to corporate strategies, no matter what happens to these strategies over the time of the programme. Programmes will take drivers from the business and use them to govern their constituent projects and business change activities.

Leading change:

Leadership is essential to programme management, with programme managers acting as agents of change. This principle requires a constant stream of communication with stakeholders across the programme’s lifecycle.

Envisioning and communicating a better future:

Programmes should have a clearly defined vision of the future, which will come from the transformational change they will deliver. This should be set-out early in the programme’s lifecycle and refined as required throughout.

Focusing on benefits and threats:

When programmes achieve their desired outcomes, they therefore satisfy their strategic objectives. The benefits of the programme must pertain to the strategic context of the organisation, whilst risk management is also important in ensuring that these benefits are realised.


Adding value:

Programmes add value to an organisation by exceeding any benefits provided by major activities. Programme benefits should exist as well as, and above, the individual benefits of a project.

Designing and delivering a coherent capability:

A programme’s capabilities are defined through its blueprint, and then delivered following the programme plan. Knowing the programme’s scope and quality enables a gradual release of improvements with fewer impacts on major operations.

Learning from experience:

A programme’s team is expected to learn from their past experiences and improve their performance continually. These lessons learned are identified, noted, and implemented through a programme’s lifecycle.

Programme Impact Matrix



Roles and Responsibilities in Programme Governance

The Senior Responsible Owner (SRO)

This person has the overall responsibility for the design, approval, and compliance of the programme as a whole in regards to governance strategies.

The Programme Manager

They support the SRO, with the responsibility of the design and implementation of the programme governance strategies, whilst also consulting with corporate governance and engaging with stakeholders regularly.

Business Change Manager

The Business Change Manager is responsible for reviewing and contributing to governance development, as well as the implementation of governance agreements pertaining to impacts on programme operations.


Quiz 1

Answer these multiple-choice questions to test your knowledge on the Overview, Principles, and Governance Themes section:

1. The Stakeholder Engagement Strategy is one of the available management strategiesin programme management.

True

False

2. Under the designing and delivering a coherent capability principle, ‘a programme’scapabilities are defined through its_________.

Corporate

Strategies

Blueprint

Scope Stakeholder engagement

3. Identify the three main elements of the MSP® framework:i. Principles

ii. Governance Themesiii. Transformational Flowiv. Blueprint Design and Delivery

ii, iii, and iv

i, iii, and iv

i, ii, and iii

None of the above

4. The Senior Responsible Owner (SRO) is only responsible for the compliance of theprogramme in regards to governance strategies.

True

False

5. Which one of the following is a driver of change?

Vision

Market forces

Emergent programmes

Resource management


Organisation and Programme Office

The organisation governance theme details the roles required to deliver the programme and its associated change. This role-based approach ensures that the governance structure is applied through a sponsoring group and their appointed representative, the Senior Responsible Owner (SRO).

Overview of how Programme Organisation fits into MSP®



A programme board is established to drive the programme on a daily basis. The key personnel appointed to the programme board are:

The Senior Responsible Owner (SRO) The Programme Manager The Business Change Manager (BCM)

This standardised organisation structure ensures that the team will have access to the appropriate skills and authorities required to lead the programme. The team can be supplemented with additional roles as required by the specific needs of the programme and the organisation.

Senior Responsible Owner

Responsibilities:

Creating and communicating the vision of the programme Ensuring clear leadership and direction throughout the programme’s lifecycle Securing investment Making sure the programme delivers coherently Establish the governance arrangements Assessing the capability of the Business Case Manage key stakeholders Monitor risks Ensuring the overall effectiveness and performance of the programme Running the Programme Board

Attributes:

Possess the seniority for their responsibilities Be proactive as the driving force of the programme Strong leadership skills Decision-making ability Experience, character, and personality Providing a purpose and direction to the programme Focus on the end-goal Building relationships across the team(s)


Responsibilities:

Day-to-day management Planning and designing the programme Developing and implementing governance framework Coordination of projects Appointing the Programme Office


Making sure that the programme delivers within parameters Resolving strategic issues

Attributes:

Working positively with everyone included in the programme Develop and maintain working relationships Leadership and management skills Vast knowledge of Project Management Finding innovative ways of solving problems Possessing credibility within programme environments

Business Change Manager

Responsibilities:

Defining benefits Assessing progress towards objectives Monitoring performances Appointing the Business Change Team

Attributes:

Possess seniority Knowledge in the relevant business area Have the confidence of Senior Managers Understand the managerial structure and culture of the programme Co-ordinate personnel Possess Change Management skills and the experience to handle complex situations

The Sponsoring Group

They are the driving force behind a programme, providing investment decisions and top- level endorsements for the rationale and objectives of the programme.

Some responsibilities include:

Establishing the organisational context for the programme Sanctioning the programme directives Approving funding Resolving strategic and directional issues Confirming the programme’s strategies Monitoring the programme’s progress Supporting the SRO Signing-off at the conclusion of the programme, after an effective delivery


The Programme Board

An established group supporting the SRO in the successful delivery of a programme. The SRO appoints all members of this board, with each one of them having different, ranging responsibilities. They will always report to the SRO.


Defining risk thresholds Making sure the programme is delivered within parameters Resolving strategic and directional issues Ensuring no double-counting of benefits Managing change impacts Utilising resources to plan and deliver the programme

Who would be considered to join the board?

1. SRO 2. Programme Manager 3. Business Change Manager 4. Project executives of the various projects in the programme 5. Corporate representatives (finance, risk) 6. Lead supplier(s)

The Programme Office

The Programme Office provides the information hub and standards custodian for a programme, and it's delivery objectives. This can also provide support for more than one programme at a time.

A Programme Office has two main roles in the management of a successful programme. The first role is to provide all the support required for a programme to deliver its objectives, and the second is to provide assurance and governance across the programme’s lifecycle.


Track the progress and delivery of the programme against the agreed plans Maintain the master copies of data Produce and dispense all required quality management documentation Support the Programme Manager with the budget Track all risks Maintain a stakeholder list Carry out health checks and provide support Produce comprehensive reports on all programmes


Senior Responsible Owner and the Programme Board


Integrating Project Organisations



EXERCISE

Determine the roles and responsibilities of the Senior Responsible Owner (SRO), The Programme Manager, and the Business Change Manager.

E.g., ‘The Senior Responsible Owner is part of The Programme Board, and is responsible for the overall…’


Business Change Team

A group of specialists appointed to support the Business Change Manager in the business change management aspects of benefits realisation. They are required to have operational knowledge of the area of business that the programme is involved with, and ideally some experience too.

They report to the Business Change Manager solely, and they are usually reviewed and refreshed for team members at the start of every MSP® tranche. This is because each different tranche could affect or deliver changes that influence various parts of the organisation.

Programme Assurance

Assurance assesses that the specific aspects of a programme are effectively managed so that confidence in the programme’s management is high. This can include making sure those relevant practices, procedures, activities, and rationale are all aligned to the programme’s objectives. This should be carried out independently to the Programme Management Team.

Additional Roles

Risk Manager Programme Accountant Design Authority Benefit Realisation Manager Procurement Expertise Communication Manager Resources Manager


Quiz 2

Answer these multiple-choice questions to test your knowledge on the Organisation and Programme Office section:

1. The three key personnel appointed to the Programme Board are:

Risk Manager, Business Change Manager, Programme Manager

Senior Responsible Owner, Programme Manager, Business Change Manager

Programme Manager, Senior Responsible Owner, Programme Accountant

Senior Programme Owner, Programme Manager, Business Change Manager

2. The Programme Board is responsible for____________.

Defining risk thresholds

Approving funding

Tracking all risks

Engaging with stakeholders

3. Who forms the Programme Board?

Risk Manager

Programme Manager


Senior Programme Manager

4. The Business Change Team are an informational hub for the programme.

True

False

5. The Sponsoring Group is responsible for solving the strategic and directional issuesthat arise in a programme.

True

False


Vision

The vision, defined by the Vision Statement, is agreed and committed to by the sponsoring group. It represents the better future which the programme is designed to deliver, and provides a focus for the team throughout the life of the programme.

This is particularly important due to the long-term nature of programmes and means that even if the team membership changes, the vision statement will provide a constant focal point.

The Vision Statement provides the link between the programme and the organisation’s strategies, used to communicate high-level impressions of the desired future ‘to-be’ state. Note that the Vision Statement and Blueprint should be aligned with each other and be fully consistent.

Overview of how Vision fits into MSP®



Inside a Vision Statement

Written in the future state, not to be confused with strategy, objective, or intentions. Instead, a snapshot of the organisation in the future

Easily-understood terms that can be understood by a wide variety of stakeholders Describes a compelling future that will evoke an emotional response, but not too dry

or factual Mentions the current state of reality as the justification of the statement No target dates, unless the vision is strictly time-dependent Key benefits are implicit and identifiable No reliance on performance targets, as statistics and numbers can be off-putting to

stakeholders and make the statement less memorable to others Flexibility should be prevalent and should not contain too many constraints Allowing the blueprint to take form after providing sufficient context and guidance Short, memorable, and relevant text. Some are no longer than a paragraph and

should be easily recalled

Sometimes, there is a tendency for programmes to have a weak Vision Statement. In this case, it might be easier for the organisation to develop a high-level blueprint alongside the statement.

If this were to occur, these questions should be asked:

What services might need to be added, changed, or stopped? Will any processes be different? What shape will the organisation take? Why are we implementing these changes? How will our tools and technology be impacted? Are there any values we might need to change?

Utilising the answers gained from these questions will ensure that a more tangible vision is created that stakeholders will be able to identify with.


Development and Preservation of the Vision Statement

The SRO assembles a representative group of senior management and key stakeholders to form an outline of a Vision Statement. This is based on the information gathered in the programme mandate.

The outline is then reviewed during the early activities of a programme to ensure its alignment and validity to the programme’s strategy.

Once this is agreed upon, the Vision Statement is refined and communicated to the relevant parties, then formalised in a standalone document.

The Vision Statement should continually be referred to during the programme, and be considered a stable foundation on which the programme continues working.

Improvements to the wording are permitted. However, the Vision Statement must never go through any major changes.

Should a major change transpire, you run the risk of confusing key stakeholders, deflating the credibility of the programme, or signifying that the current programme is no longer satisfactory or strategically aligned.

Vision and Transformational Flow

The vision for the programme is the main constant running through it, acting as a reference point against which the programme’s performance can be evaluated.

The strategic threats identified in the outset of the programme, and the reaction of the organisation’s leadership to these threats, help to form the overall vision for the programme.

This is at the Identifying a Programme stage of the process, with the mandate regularly reviewed and updated as required too.

In the Defining a Programme phase, the Vision Statement is refined from its outline, and stakeholder engagement allows for further development as well.

The statement should not be finalised until the work on blueprint and benefits has been undertaken, as this could change what the programme was originally set out to achieve. During the delivery of the programme, the Vision Statement acts as a guiding light, and is referred to whenever tough decisions are to be made.

The vision should underpin most of the communications to ensure effective stakeholder engagement and a good understanding, by all, of the change that the programme is delivering.

Each project involved in the programme should clearly understand its role in the overall vision, therefore allowing the project team to feel a greater involvement in the direction of the programme.


The benefits of the change will likely be at the centre of the Vision Statement, and during the programme, these benefits will be actively pursued.

Any reluctance or resistance to change should be controlled if the correct communication measures are enforced, allowing affected departments to deliver the new changes.

In the closure of the programme, the vision is tested. Has it achieved what it set out to? It could be true that the objectives have been met, but the vision is still alive, therefore outliving the programme entirely.

Still, in this situation, there should be clear evidence of progress towards this vision, even if some of the benefits remain to be realised.

EXERCISE

Fill in the gaps pertaining to the questions that should be asked when a weak Vision Statement is developed in a programme. Use each word just once.

1. What_________ might need to be added, changed, or stopped?2. Will any ________ be different?3. What shape will the ____ take? 4. Why are we implementing these _____ ? 5. How will our _____ and _______ be impacted? 6. Are there any ______we might need to change?

Missing words: Values, Services, Tools, Processes, Changes, Technologies, Organisation


Key Roles in the Vision

Role Area of focus Senior Responsible Owner (SRO)

Engaging the Sponsoring Group in the development of the Vision Statement Producing the Vision Statement Gaining endorsement and commitment for the vision Ensuring that the organisation is capable of this transformation Maintaining focus on the Vision Statement Authorising any changes to the Vision Statement

Programme Manager

Developing any programme documentation aligned to the Vision Statement Ensuring the communications plan is underpinned by the Vision Statement Co-ordinating the development of the blueprint based on the Vision

Statement Designing the delivery of capability to align with Vision Statement

commitments Process any changes or updates to the Vision Statement

Business Change Manager (BCM)

Supporting the SRO in the content of business areas to change, and contributing to the content itself of the Vision Statement

Interpreting the Vision Statement in the context of their business operations

Assessing the impact of the Vision Statement on their business operations Communicating the Vision Statement to their area of business Delivering any operational changes required to achieve the desired

outcomes

Programme Office

Configuration management of the Vision Statement document


Quiz 3

Answer these multiple-choice questions to test your knowledge on the Vision section:

1. The vision is defined by the _________ .

Blueprint Statement

Guiding Light

Vision Statement

Programme Statement

2. It is up to the Senior Responsible Owner to gain endorsement and commitment forthe vision.

True

False

3. Under which phase is the Vision Statement refined and further developed?

The delivery of the programme

The outset of the programme

The defining of the programme

The closure of the programme

4. The Vision Statement should be full of technical jargon and should be a long, detailedtext.

True

False

5. Which key role in the vision of a programme co-ordinates the development of theblueprint to be based on the Vision Statement?



The Senior Responsible Owner

The Business Change Manager


Leadership and Stakeholder Engagement

A stakeholder is any individual, group, or organisation that can affect, or be affected by, a programme. Programmes attract a large number of stakeholders from a variety of backgrounds and with differing degrees of influence over the programme.

The MSP® framework ensures that the stakeholders are identified and engaged in an appropriate manner, in order to allow the participation and involvement of those who have an interest in the outcomes. MSP® recognises the criticality of communication with the stakeholders and the link between this engagement and the leadership.

There is recognition, within the framework, that engaging and communicating with stakeholders is essential to the success of the programme. MSP® incorporates a number of tools and techniques to enable stakeholders to be engaged, including stakeholder mapping, analysis, and a stakeholder engagement process.

Overview of how Leadership and Stakeholder Engagement fits into MSP®



Programme Stakeholders

Stakeholders may support or oppose change They may be gaining or losing when benefits are realised They notice only threats, possibly convinced that they will lose no matter what

happens Are inherently indifferent to the change, becoming helpful or unhelpful depending on

how they are managed and influenced May become either supporters or blockers of the programme, dependent on what

kind of engagement they receive

Many programmes have failed completely due to inadequate stakeholder engagement, therefore emphasising the importance of this governance theme.

Programme Managers will need to think of stakeholder engagement as not just laborious tasks to complete, but rather a way of achieving a positive influence and attaining a desired outcome through the effective management of stakeholder relationships.

In addition, understanding that people need to be engaged as more than just resources to be used, or obstacles to be removed, will benefit the programme as a whole. A consideration of individual emotions and motivations will behove any Programme Manager as well.

Good leaders should be able to positively influence stakeholders, and they will be able to do this by taking into account the outlooks of certain stakeholders. This can turn blockers into supporters. Engaging the right stakeholders early should ensure this is successful.

Skilful leaders will be able to utilise the ‘do-nothing vision’, whereby they use effective stories, visions, and metaphors to coerce stakeholder blockers to jump on board with their ideals.

This technique shows stakeholders a possible negative impact of their actions if they block a certain vision, providing the idea that they cannot stay on a ‘burning bridge’ and must cross over to the other side, therefore bringing them round to support change.


Leadership

A thriving programme should exhibit evidence of distributed leadership, with all roles in the management team establishing their leadership qualities (SRO, BCM, and PM). However, the SRO and the Sponsoring Group are required to display their leadership on a persistent basis

A programme is always commissioned in a wider context of change, and is considered a macro-level of viewing change.

However, at a micro-level, there are individuals affected by the programme who experience their own cycle of change as they transition from old to new.

Change is everywhere and is an iterative process. Often, it is represented as a circular process rather than a set linear one.

The figure on the next page illustrates an example of a change process model, with parts of the Transformational Flow mapped onto each step.

Business Change Management, as well as ensuring organisational commitment to change, should both be an overriding focus of action for the management team.

Leadership is… Management is…

Required in a context of change, to clarify the ‘as-is’, the vision of the future, and prospers in the tension between the two

Always required, particularly in the business-as-usual contexts, focusing on evolutionary and continual improvement

Inclined to clarify the ‘what?’ and ‘why?’ Focused on the ‘how?’ and ‘when?’

Concerned with direction, effectiveness, and purpose

Concerned with speed, efficiency, and quality

Effective when influencing people by face- to-face communication

Effective when controlling tasks against set specifications or plans

Focused on meaning, purpose, and realised value

Focused on tasks, delivery, and process


Additionally, a BCM must be effective in leading their operational team through a transitional cycle that will embed a new working practice.

Example of a Change Process Model


EXERCISE

Examine the role of a programme stakeholder, e.g. ‘they will always support or oppose change.’


Other Project and Programme Communications

Projects within the programme will need to communicate with their own local stakeholders, but the programme will need to control this to make sure that the communications are regular, clear, well timed, and correct.

A general guideline should be briefed through to the Programme Office and theProgramme Manager

Certain stakeholders should always be referred to the SRO or the ProgrammeManager

Stakeholders may have a nominated person through which all communications arechannelled

Sensitive topic areas must be referred up to the programme for communication Regular project communication briefings should be held so that they can stay on

message Where possible, align project communications with the overarching programme

communications plan

Care should always be taken to ensure that the projects manage their own communications wherever reasonable.

Too much control of communication by the programme will cause discontent amongst stakeholders within the projects, and possibly deprive the projects themselves of power.

The consistency of programme communications is key, and a necessity, in a corporate portfolio environment. Failure to achieve this will risk confusion and a lack of stakeholder confidence.

A programme that solely stresses the importance of stakeholder management will not adequately engage their stakeholders. This can cause planned, robotic communications, and an attempt to manage stakeholders. This way will not yield effective results.

The steps involved in stakeholder engagement must also be managed effectively because if not, the quality of two-way communication will falter.

The figure on the next page illustrates that the stakeholder engagement cycle underpins the MSP® stakeholder engagement strategy, with each step in the cycle being discussed in the coming pages of the workbook.


Stakeholder Engagement Cycle


Identifying Stakeholders

Stakeholder engagement always begins with the identification of all stakeholders involved in or affected by, the programme and its outcomes. The Vision Statement and blueprint acts as a basis for desired outcomes and can reveal further stakeholders further in the programme’s lifecycle.

During this lifecycle, stakeholders can easily change. Some may participate in an advisory role, with others helping to realise the programme’s benefits. Programmes are likely to have many stakeholders, so categorising them as governance, beneficiaries, influencers, and providers may help in the organisation of communications.

Creating and Analysing Stakeholder Profiles

The purpose of the analysis of stakeholders is to gain an understanding of the:

Influences, interests, and attitudes of the stakeholders towards the programme Importance and power of each individual stakeholder

Gathering this information together can provide valuable insight into the programme’s key stakeholders. Any information gathered is consolidated into a document called Stakeholder Profiles, which also contains the stakeholder map, as well as a profile of each stakeholder group.


The stakeholder map is a diagrammatic representation of the stakeholders relevant to an organisational activity and their respective interests. For example, some stakeholders may be concerned with changes to their working environment whilst others might be concerned with how the programme affects customer relations.

Stakeholder profiles should regularly be revisited and revised, possibly due to new stakeholders appearing, or a change of interests in existing stakeholders. The map should be used to inform decisions, so a constant revision of the profiles is important to ensure maximum contribution to the programme.

Analysis of the significance and potential influence of each stakeholder helps to:

Prioritise stakeholder engagement Focus programme resources to contribute the most towards successful outcomes Ensure that communication channels are well-exploited Align message content, media, frequency of engagement, and level of details to meet

the relevant stakeholder needs

A technique for analysing stakeholders is to consider each stakeholder in terms of their influence on the programme and their potential interest in the programme’s outcomes and then plot these findings on a matrix. This can determine the required level of engagement for each stakeholder. An example of an influence/interest matrix is found below:

Influence Interest Matrix of a sports-complex programme



Collectively, the identification and analysis information, in the form of a stakeholder map, influence/interest matrix, or any other kind of analysis – is gathered together into the stakeholder profiles document.

Stakeholder Engagement Strategy

The key question here is: ‘How will the programme effectively engage with the stakeholders?’

The Programme Management Team must specify:

How stakeholders will be identified/categorised/grouped How the analysis of stakeholders will be assessed Approaches for engaging with stakeholders How stakeholder analysis will be stored, processed, and reviewed Which communication channels will be used How feedback and dialogue will be managed How the success of the stakeholder engagements will be measured

In the circumstance that Programme Management Teams are not physically co-located, then this can increase the risk of uncoordinated and inconsistent engagement with stakeholders.

There are various considerations when implementing a stakeholder engagement plan, such as the scale of cultural, organisational, or societal change, as well as the management of stakeholder expectations throughout the programme. Another factor to consider is the use of adequate resources and energy to ensure the smooth running of the stakeholder engagement strategy.

Planning the Engagements

Successful communications are based on four core elements:

Stakeholder identification and analysis – sending the right message Message clarity and consistency – ensuring relevance and recognition Effective system of message delivery – the right messages to the right stakeholders in

an effective way Feedback collection system – assessing the effectiveness of the communications

process

Engagement is more active and embracing than communication. It covers stakeholders in decision-making and implementation, as well as consulting with them and informing them. The greater the change, the greater the need for clear communication. The objectives of the communications process is to:

Keep awareness and commitment to high Explain what changes will be made, and when Ensure that expectations do not fall out of line with what will be delivered


Leaders can undermine their own credibility by giving out inconsistent messages, whilst also risking hesitancy among stakeholders.

Any organisations with access to communications specialists should utilise them as much as possible, in order to assist with the programme communications.

Available communication channels:

Seminars, workshops, videoconferences, and live webcasts Café conversations Press/media packs and briefings Bulletins, announcements, press-releases, blogs Site exhibitions Video, CD, DVD, webinars, podcasts

Engaging Stakeholders

The earlier process of identifying and analysing stakeholders may start to engage them to some degree already.

For example, in order to identify your key stakeholders, asking them questions and listening will prove an effective method of analysis. Programme Managers should recognise the need for more subtle and informal means of communication.

The Programme Management Team will need to sway, lobby, persuade, manipulate, flatter, and apply pressure to stakeholders in order to maintain momentum and keep the programme on track.

Measuring Effectiveness

Communications specialists agree that people do not retain information fully until they have heard it multiple times.

A simple question to a stakeholder like ‘What is the programme’s vision?’ will garner enough feedback to reveal under-communication or miscommunication.

Programme Managers should not wait for the end-of-tranche reviews or an external audit to determine how effective the programme’s stakeholder engagement is. Evidence should be gathered throughout the lifecycle.


Stakeholder Engagement Within Transformational Flow

Stakeholder engagement runs through all processes in the Transformational Flow, since the programme can only succeed if it has the fully active support of all key stakeholders.

During the early days of the programme, there is likely to be a small group of stakeholders who are involved in the strategic and initiation activities. This is where consideration should be given to the high-impact stakeholders and an evaluation of what challenges could be faced.

As the programme progresses, stakeholder engagement spreads from this core group because more is known about the programme and its impacts. Formal documentation should start to appear, and once the vision, blueprint, and benefits are beginning to stabilise, then engagement can become more intense.

With the programme in full delivery, communication should be regular and focused, especially with any changes in stakeholder expectations or priorities. After the launch of projects, stakeholders will need to be engaged during the process. During the ‘Realising the Benefits’ stage of the Transformational Flow, resistance to change and the positive effects of the programme may be at its highest, so it is of utmost importance to manage this successfully.

The difference between whether a programme is remembered as a success or failure could be down to effective communication at the closure. The programme will not please everyone, no matter how successful it was. Ensuring that communications are carefully targeted will assist in the management of the various stakeholder groups.


Key Roles in Leadership and Stakeholder Engagement

Role Area of focus

Senior Responsible Owner (SRO)

Engaging key stakeholders early, and at appropriate milestonesthroughout the programme

Leading the engagement with high-impact stakeholders andanticipating any issues that may arise

Briefing the Sponsoring Group and gathering strategic guidance onchanging business drivers

Showing visible leadership at key communication events and ensuring thevisible and demonstrable commitment of the Sponsoring Group

Ensuring the creation, implementation, and maintenance of the overallstakeholder engagement strategy

Programme Manager

Developing and implementing the stakeholder engagement strategy Day-to-day implementation of the whole stakeholder engagement

process Developing and maintaining the stakeholder profiles Controlling and aligning project communication activities Ensuring effective communications with project teams Developing, implementing, and updating the programme

communications plan

Business Change Manager (BCM)

Engaging and leading those operating new working practices through thetransition and generating confidence from those involved

Supporting the SRO and taking responsibility for stakeholderengagement in their part of the organisation

Support to the Programme Manager in the development of thestakeholder engagement strategy and programme communications plan

Alerting the Programme Manager to the winners and losers in theirareas of change

Providing information and business intelligence for stakeholder profiles Briefing and liaising with the Business Change Team Communicating with affected stakeholders to identify new benefits and

improved ways of realising benefits Delivering key communications to their business operations

Programme Office

Maintaining information pertaining to the stakeholders Maintaining an audit trail of communication activity Collating feedback and ensuring that it is logged and processed Facilitating activities specified in the programme communications plan


Quiz 4

Answer these multiple-choice questions to test your knowledge on the Leadership and Stakeholder Engagement section:

1. Café conversations is considered an effective communication channel for stakeholderengagement.

True

False

2. Fill in the gaps to this question in the stakeholder engagement strategy.‘How will the ____________effectively engage with the ____________?’

Senior Responsible Owner, Stakeholders

Stakeholders, Programme

Programme, Stakeholders

Business Change Manager, Programme Manager

3. Who is responsible for visibly showing leadership at key communication events, andensuring the commitment of the Sponsoring Group?



The Programme Management Tea


4. What is focused on the ‘how?’ and ‘when?’

Management

Leadership

Engagement

Communication

5. Which of the four core elements of successful communication is missing?Stakeholder identification and analysis, Message clarity and consistency,___________ , and Feedback collection system

Effective use of the alignment plan

Identification of the programme communication channels

Efficient message deliverance

Effective system of message delivery


Benefits Management

Benefits are defined as ‘the measurable improvement resulting from an outcome that is perceived as an advantage by a stakeholder.’

The rigour with which an MSP® programme addresses the management of benefits is one of the distinctive features between programmes and projects. The governance theme of benefits realisation management incorporates a number of techniques and tools that support the identification, realisation, and measurement of benefits within the programme.

The methodical approach to the management of benefits is closely linked to other governance mechanisms within MSP®, including the role of the business change manager (which is closely linked to this theme). The identification and mapping of the proposed benefits, and negative impacts as a result of implementing the programme, enables the development of a robust business case that allows the accurate measurement of the progress of the programme. MSP® programmes focus attention on the generation and measurement of benefits.

Overview of how Benefits Management fits into MSP®



Definitions of Benefits Management

Output

The tangible or intangible artefact produced, constructed, or created as result of a planned activity.

Capabilities

The completed set of project outputs required to deliver an outcome; this exists prior to transition. It is a service, function, or operation that enables the organisation to exploit opportunities.

Outcome

The result of change, normally affecting real-world behaviour or circumstances. Outcomes are desired when a change is conceived, and they are achieved because of the activities undertaken to enact the change.

Dis-benefits

A measurable decline resulting from an outcome perceived as negative by one or more stakeholders, which reduces one or more organisational objectives.

Benefits within the Programme

Benefits and dis-benefits are anticipated when a change is conceived and, while there may be uncertainty relating to its extent, the benefit or dis-benefit itself is not a risk because it is planned to be realised.

The programme’s goal here is to deliver the organisation’s benefits, whilst also recognising the feelings of stakeholders.

Without benefits, a programme would not exist and the work to analyse and develop these benefits is a key input into the business case. The realisation of benefits will most likely take place within the business’ operational environment.

The programme will deliver new capabilities such as business processes, new assets, systems, functions, services, or sets of working practices. The programme’s prerogative is then to support the implementation of these and manage their effects on performance during the transition of achieving the outcomes.


Strategic Context of Benefits Management


Benefits management is a vital driver in Transformational Flow, and essential to all of the other governance themes.

Given its prominence, it is not unexpected that benefits management also drivesmany facets of programme management:

Aligning and validating the reliability of the blueprint against the projects, activities,and associated organisational changes mandatory to deliver benefits

Defining the aggregate of realised benefits, anticipated benefits, costs to date, andprobable cost against the business case

Ordering benefits to allow the programme to create maximum value under givenrestrictions and making the right trade-off decisions if essential

Planning the programme (benefits realisation comprising the foundation) Engaging with stakeholders to comprehend influences Defining what a fit-for-purpose capability is, establishing what the critical quality-

checking mechanisms throughout the programme would be Updating end-of-tranche reviews to enable decisions on changes to the programme

going forward Monitoring the risks and issues that may impact benefits realisation


Benefits management stretches from the commencement of a programme to beyond its closure, ensuring that the programme:

Does the right things – is aligned with strategy Concentrates on the right set of benefits Is aware of any positive and negative impacts it might generate Identifies, plans, validates, measures, and reviews benefits Is tightly aligned to the Transformational Flow processes

EXERCISE

You are the new Business Change Manager for a protein shake programme. The Programme Manager has shared a list of benefits with you, but has mixed up Outputs, Outcomes, Capabilities, and Benefits.

The following is the list shared to you:

The marketing campaign Better visibility The expense of the marketing campaign Stock keeping An increased profitability within 12 months of the launch A new flavour of shake The programme is behind schedule An upswing in customers

Place each ‘benefit’ into the correct, corresponding category.

Output Outcome Benefits Dis-benefits

E.g. – The marketingcampaign


Benefits and Corporate Objectives

Organisations need to evolve and grow in order to survive. Programmes must then link their intended benefits to the corporate objectives to ensure that they are adding sufficient value to the organisation. A Programme’s nature is to deliver transformational changes.

Some of the changes provided by the programme may cause some dis-benefits. However, these changes also provide opportunities for additional benefits.

Benefits may take longer to achieve compared to the programme’s lifecycle because benefits realisation lasts long after the programme is closed. It could also be possible that, even if benefits have been realised, it might not be to the correct or expected levels.

The Business Change Manager is always responsible for benefits realisation, even after the closure of a programme. This member of management captures unexpected benefits, in order to ensure that the full value of the programme is recognised.

Benefits Categorisation

Below are the different ways to categorise benefits. These are well-established categories, but not extensive:

Value Financial Impact Corporate Objective Stakeholder Impact Timeline Level of Risk

Any of these categories can be utilised, either applied in order, or combined together. However, the programme will need to decide early on how it will categorise its benefits.

It is almost certain that each benefit will be categorised against more than one of these categories, as they allow a different perception of said benefit. Be sure not to double-count a benefit, though.

The category to which a benefit belongs should be recorded and documented in the benefit profiles.

Value

This implies what the benefits can add to the organisation. Further sub-categorisation under value includes the three ‘E’s:

Economic benefit – Financial improvements Effectiveness benefit – Doing things better, or to a higher standard Efficiency benefit – Doing more of the same, but with less

These types of benefits cover the vast majority of potential benefits in a programme, and is useful for the initial identification of a programme’s benefits.


Financial Impact

This specifies whether the benefits are cashable or not, and how they may be able to be converted into cash.

Cashable – E.g. Staff savings Non-Cashable – E.g. Staff time savings

Any forecast cashable benefits should be authorised with the finance department. In order to realise non-cashable benefits, it is important to agree on them with the relevant business areas.

Corporate Objective

Benefits can be categorised by the type of corporate objective that they support. These types of objectives are:

Increased flexibility Internal performance improvement Enhanced personnel or HR management Policy or legal compliance Process improvements Improved revenue generation

Each of these objectives could have an impact on one, or more, of the three value types identified earlier: economic, efficiency, and effectiveness.

Stakeholder Impact

Each outcome and benefit of a programme can have a different effect on different stakeholders. These effects may be positive or negative, as a benefit for one group of stakeholders could possibly be a dis-benefit for another. The programme needs to investigate thoroughly the benefits it may generate, and their potential effects on stakeholders. This will minimise resistance from stakeholders who perceive the programme as a negative as a whole. If a programme were to fail to contain its dis-benefits, it can make a business case unviable.

Timeline

Benefits will materialise at different points during a programme’s lifecycle, and even after the closure of the programme.

Time-management of benefit realisation is important, due to the advantages it could bring with stakeholder support, and ‘quick wins’.

Level of Risk

Identifying the levels of risk associated with the achievement of benefits is crucial. It contributes to the overall understanding of the levels of risk for the programme.


Levels of risk are:

Low Risk – implying that 90% of the value is achievable Medium Risk – implying that 60% of the value is achievable High Risk – implying that 30% of the value is achievable

Managing the threats to benefits is one of the fundamental MSP® principles, ‘focusing on the benefits and threats to benefits realisation.’

The Benefits Management Cycle

Benefits Management Cycle


The benefits management cycle is a four-step continuous cycle for managing benefits in any programme. Its iterative nature allows for continuous optimisation and identification of benefits.

Identify Benefits

The benefits management cycle should start early in the programme’s lifecycle. The first step is to identify likely benefits and map them from corporate objectives to project outputs.


An optimal way to identify benefits is to engage key stakeholders who can provide differing perspectives. These insights will generate an initial list of benefits. Once the benefits have been categorised, the programme should adjust its scope to ensure that it will deliver the required balance of benefits.

Plan Benefits Realisation

After the identification of the benefits, the programme will need to understand how they fit together, attribute responsibilities, validate that they are credible, and plan for delivery.

Benefits Attribution – Defines the accountability and responsibility for benefits Benefits Validation – Four critical tests should be passed: Description, Observable

outcomes, Attribution, and Measurement Benefits Realisation Plan – A complete view of all benefits, their dependencies, and

expected realisation timescales

Deliver Benefits Realisation

Benefits realisation has three stages:

Pre-transition Transition Post-transition

There can be a tendency to be over-optimistic with expectations when defining and setting targets of benefits. This can produce commitments from key stakeholders early on, which is incredibly beneficial to the programme’s early stages. However, when the benefits are reviewed, the support gained at the start could easily falter due to failed promises.

Choosing suitable KPIs (Key Performance Indicators) is crucial in benefits management. Current KPIs must be supplemented by other measures to assess the benefits realised by the programme. Some of these measures may fluctuate due to process variations or seasonal trends, so it is important to understand and reflect this in the relevant plans.

Benefits Reviews

Benefits reviews can be time-driven or event-driven, taking place, at a minimum, at the end of each tranche to ensure that benefits realisation is still on track.

The objectives of a benefits review is to:

Assess and update each individual benefits profile and benefits realisation plan Check that all benefits are aligned to the programme’s objectives Inform stakeholders and senior management of the progress in benefits realisation Assess the level of benefits achieved against the benefits realisation plan Assess the performance of the changed business operations against their original

performance levels Review the effectiveness of how benefits management has been handled, sharing any

learned lessons© The Knowledge Academy 2020 47

Reviews will require the benefits realisation plan itself, as well as its benefits map and any relevant individual benefit profiles. If any concerns arise, then the benefits management strategy should be revisited.

Benefits Map

A benefits map will illustrate the relationship between outputs, capabilities, outcomes, benefits, and objectives. This is crucial to learn about the cause and effect relationship between the elements in a programme.

It should read from right to left, and show the total ‘picture’ of changes for the overall programme. In the figure illustrated below, the corporate objective is demonstrated on the right, with short and longer-term benefits leading towards it. To the left of that are the outcomes achieved after the transition into live operation, and then the new process is underpinned by the new IT systems.

Benefits Map: New HR system example


The benefits map contributes heavily to the benefits realisation plan, outlining the realisation sequence through a chain of benefits. Timescales can also be developed from the map, informing the creation of schedules within the realisation plan.


Quiz 5Answer these multiple-choice questions to test your knowledge on the Benefits Management section:

1. The three ‘E’s that make up the sub-categories of the Value benefitcategorisation are:

A. Effectiveness, Expression, EfficiencyB. Economic, Effectiveness, EfficiencyC. Efficiency, Economic, ExtensiveD. Expression, Extensive, Empirical

2. Which of the following describes a capability?A. The tangible or intangible artefact produced, constructed, or created as result

of a planned activityB. The result of change, normally affecting real-world behaviour or

circumstancesC. Engaging with stakeholders to comprehend influencesD. The completed set of project outputs required to deliver an outcome; this

exists prior to transition3. Benefits management will stretch from the _________ of a programme, to

beyond its __________.A. Conception, ClosureB. Definition, ClosureC. Timeline, LifecycleD. Lifecycle, Definition

4. Which member of senior management is responsible for benefits management?A. The Business Change ManagerB. The Senior Responsible OwnerC. The Sponsoring GroupD. The Programme Team

5. Which set of information provides a complete view of all benefits, theirdependencies, and expected realisation timescales?

The Benefits MapThe Benefits Realisation PlanBenefits ReviewsThe Benefits Management Cycle


What is the use of the Blueprint?

The blueprint is a document which translates the vision statement into a detailed description of the capability that is required to enable the outcomes. The blueprint defines the scope of the programme manager’s authority by describing the current (or as is) state of the organisation and the future capability which will be delivered through the projects dossier.

The blueprint is not concerned with how to deliver the future state; subsequent documents, such as the projects dossier and programme plan, contain that level of information. The delivery of the blueprint is achieved through these supporting documents and the management of the projects.

Overview of how Blueprint Design and Delivery fits into MSP®



Blueprint Objectives

The blueprint statement’s purpose is to ensure the coherence between the entire future state and the solutions that will lead a path to that future. It provides a basis for benefit realisation and the design of the projects dossier, because knowing what the planned future state looks like gives insight into the new advantages the organisation will experience.

The blueprint drives the projects dossier, programme plan, benefits realisation plan, and business case. These should be developed systematically and reviewed recurrently, in order to ensure that the desired benefits are motivating the transformation. Blueprint suggests several different routes to the desired future state with relative benefits, time scales, risks, and costs. It is the responsibility of the SRO and programme team to decide on the route that will lead to the best business case.

It is the responsibility of the Programme Manager to review all blueprint activities with the help of the Business Change Managers. Overall accountability lies with the SRO.

Gap Analysis

Knowing the current capabilities of the business and where the business wants to be is a great place to start gap analysis. If you discover gaps, you can determine how to fill them with the new capability that the organisation needs. This can be included within Blueprint documentation, to demonstrate where and why the programme scope needs to be effective.

This is called the Blueprint Delivery. Clarifying which capabilities are required and how they can be manifested – through small jumps or one big jump – can help identify which projects will enable you to achieve them. This continues to be the case throughout the programme as it can be used to assess whether projects are completing their targets and are still aiding in plugging the gaps required.

The Blueprint is an extremely useful tool for the Programme Management Office or Senior Management Team to question projects and programmes that are burning resources while not taking the company any closer to their goals.


The initial analysis of the gap


Options Analysis

This is the name given to the decision-making process of the programme team, which analyses the different approaches they could take to reach the objectives and optimise the Blueprint. It is about discovering the best mixture of solutions to deliver the new capability through the use of tranches.

Each approach will address different issues to varying extents. Some will be cost-effective but may contain too many risks, while others will meet most of the benefits but may take too long. The ideal approach will have low cost, low risk, speedy delivery, and many benefits. Finding this may be improbable, so the programme will need to optimise its approach by balancing the elements out.

Optimising the Approach

Optimising the approach consists of working across benefits management and blueprint design activities. Switching between them to test a number of perspectives against available funding, whether the required skills are at hand, and the overall viability of the approach.

It is also important to assess:

Identified risks through risk analysis Benefits and their timelines Sufficient capacity to manage the work


Options if Emerging Business Case is not viable

There are three available options to adjust the blueprint and/or approach if, despite attempting to optimise the approach, a viable business case is still not emerging:

Consider all alternative options that could still balance cost, time, and benefit. If unable to find an optimum business case, compromises must be made. A blueprint is designed where the gap between ‘as is’ and ‘to be’ states is small

Find a different approach and solution that can deliver the blueprint Close the programme

Compiling the Blueprint

An effective blueprint requires:

The knowledge from well-informed people e.g. Business Change Managers

A thorough understanding of how the business works at the current point in time is vital in detailing the future operating model. Defining the future state requires comprehending the needs of the business and what it is capable of achieving.

A cycle of reviewing the blueprint throughout its development

The first cut of the blueprint will not have sufficient information to be the finished product. As the process continues, more information and data about cost, schedule, and risk may affect elements of the plan of activities, which could cause a domino effect. Thus, constant review of the blueprint is required, in case of projects require a re-think.

A review of the overall business case

As the blueprint begins to take form, the programme should start to balance out cost, benefits, and risk. At this point, the business case will need to be assessed to confirm its viability and cost-effectiveness, before it can be formally approved.


Blueprint Design and Delivery in collaboration with other themes


Vision is expanded and developed into a blueprint which is further delivered by the Programme Plan.

Blueprint design and delivery interacts with many themes through two-way

communication:

It informs the business case of programme objectives, while the business case justifies the blueprint by providing details about the value of benefits, risks, costs, and timescales.

Blueprint defines the quality expected from the deliverables and outcomes. It also provides control to the governance by helping it define the tranches and

controlling the delivery. Blueprint needs to engage the stakeholders and receive input from them to refine

the blueprint further. The blueprint will also identify the risks that might come up during the program. Blueprint tries to optimise the benefits, which then qualifies the blueprint. It means

that planned benefits will drive the transformation designed by the blueprint.


The POTI Model

Blueprints often use the POTI Model to define the scope of all changes taking place as a result of the projects. POTI stands for Processes, Organisation, Technology, and Information; the four areas that outline all elements compiling the programme scope.

Processes

Projects adapt current processes and implement new ones. Any operational business models that will undergo change due to the projects in the programme come under this area. For example:

Performance Levels Removing old work methods

Organisation

All personnel and HR organisation information, including any changes made, requirements for the business, and organisational culture. For example:

Re-arrangement of staff Training requirements

Technology

All project technology requirements are included in this section, including equipment, tools, systems, and resources. For example:

Equipment needs New networks or systems Machinery requirements

Information

This area consists of mostly intangible data, such as new information requirements for stakeholders. This may not be available early on in the blueprint development. For example:

Changes to reporting systems Project specific data outcomes

In order to be able to track and plan the blueprint content from the current business state to the desired operating model, it must contain key sets of information, on which its design and delivery will be based.

‘As is’ state: how the elements of the current business state presently work

‘To be’ state: how the elements of the completed programme will work

Intermediate state: Major control points or tranches throughout the programme. Knowing where the programme should be at certain points will prevent “big-bang” changes that were unforeseen


Intermediate states represent ‘step-changes’ in the way the business operates. These tranches are determined by grouping projects with outputs that are aimed at particular outcomes. This allows for the output to outcome transition to be clearer, allowing for the delivery of benefits much earlier in the programme, meeting organisation objectives quicker and more efficiently – the purpose of programme management.

Understanding Tranches

Characteristics of Tranches:

Consist of 1 or more projects/activities Deliver step change in capability for organisation Control Points at which the programme can change direction or be stopped Step changes should be planned to support desired benefit realisation In MSP®, Programme Plan is designed to deliver new capabilities in tranches Include transition activities to achieve determined outcomes

Selecting Existing Projects for a Tranche:

1. Ascertain which projects are to be part of the programme and those that are alreadyin progress

2. Analyse projects already in progress through these criteria:a. Proximity to delivery – Projects close to completion should be allowed to

continue, since closing them would lead to waste in resources already usedb. Strategic fit – If projects no longer align with the programme (and thus

organisation) objectives should be closedc. Re-use and Adaptation – projects half-way to completion that can be adapted to

strategy with minimal cost and effort can be continuedStep Changes through Overlapping Tranches

Within larger or more complex programmes, there may be tranches that overlap or even run parallel alongside each other. However, this can sometimes create more risk, especially in the case of concurrent tranches. There are possible ways to manage this risk:

If confidence in delivery is high, the next tranche could be brought forward, but thiscan only be done when there are no dependencies on the project’s outputs betweentranches

Ensure that the organisation is willing and able to accept increased risk withoverlapping tranches

If tranches overlap, review points at the end of tranches are not possible, so plannedreviews at key decision point must be implemented – normally these are time-driven or event driven


Blueprint Delivery



The Blueprint document should include a detailed roadmap, providing the Processes, Organisation, Technology, and Information analysis for each of the 3 states.


Exercise: Design and fill a POTI model analysis for each of the 3 states for your

organisation

E.g.

2015-Current 2020-Interim 2030-End Process

LLW disposability is managed Risk based disposability Risk based disposability by radiological classification approaches have been assessments are norm

developed


Updating the Blueprint

The blueprint can be used as a control check throughout the programme, as it contains all planned activities and their desired outcomes. It can be used to measure performance and determine if the projects within the programme are still beneficial to the organisation.

Keeping the blueprint up-to-date enables traceability from blueprint to project milestones, creating a baseline that ensures the projects are on track. Given that programmes differ from projects because they are designed for outcomes, rather than outputs, a programme blueprint recognises the need to adapt small details or projects, in order to deliver the big picture.

Blueprint and Transformational Flow

Transformational Flow Blueprint Design and Delivery Identifying a Programme Blueprint emerges when ‘as is’ states is

documented Vision is developed .i.e. the input for the

blueprint to expand

Defining a Programme Vision is refined To-be state begins to be outlined Benefits cannot be defined without the blueprint

Managing the Tranches Blueprint is critical for maintaining direction andcontrol

Programme changes should be compared toensure alignment with future state – this shouldbe reflected in Blueprint

Tranches show intermediate stages of blueprintso focus should be on both throughout theprogramme

Delivering the Capability Content of blueprint provides key input to thedevelopment of the more detailed design ofproject briefs

Accepting outputs of projects should always becompared to the capabilities they are required tocreate in the blueprint

Realising the Benefits Blueprint defines performance baseline againstwhich to measure benefits

Changes to baseline inform both benefits andprogress towards change

Reviewing benefits requires comparing benefitsagainst the outlined outcomes of the blueprint


Closing the Programme Success is measured based on the delivery of theblueprint’s capabilities

Final review looks at delivery of objectives butalso the management of changes to blueprint

Final state will look different from the initialoutline of blueprint but it should reflect finalversion

No Blueprint

Creating a blueprint that matches the vision statement and the extent of change required is a challenging and complex task. In some programmes the blueprint is never written. Below are some reasons why:

Programme leaders or team members who are inexperienced and do notunderstand the need for it

Sponsors, stakeholders, leaders have a ‘just-do-it’ attitude and think once theprogramme has begun, the path will become clear

There is a lack of clarity within the programme’s purpose and objectives, meaningthat a detailed blueprint highlights too many problems with all its questions

The assumption that there is always someone else who has the bigger picture Initiating the blueprint and starting such a daunting task puts people off


Quiz 6Answer these multiple-choice questions to test your knowledge on the Benefits Management section:

1. Who is responsible for choosing the best approach for the optimum business case?

A. The Programme Manager

B. The SRO

C. The Business Change Manager

D. The Programme Office

2. Overlapping Tranches are not acceptable when:

A. The business is willing to accept the increased risk

B. There are dependencies on project outputs

C. There are regular review points

D. There are concurrent tranches

3. The Blueprint explains how the future state will be achieved:

A. True

B. False

4. The purpose of the Blueprint Statement is to:

A. Ascertain ‘as is’ and ‘to be’ states

B. Ensure solutions will ensure manifestation of capabilities

C. Drive project dossier, programme plan, and benefits realisation plan

D. Set out what the Blueprint will include

5. ‘Changes to reporting systems’ comes under which element of the POTI Model:

A. Processes

B. Organisation

C. Technology

D. Information


CASE STUDY: Organising the ‘greatest show on earth’

Introduction

Hosting the London Olympic and Paralympic Games was, quite simply, a mammoth task. By the time of the Opening Ceremony, at least 100,000 people were working on the Games, including 3,000 staff, 70,000 volunteers and large numbers of contractors. With a public sector funding package worth £9.298 billion, it was imperative for Britain’s reputation nationally and internationally that the Games were delivered successfully. However, it is the legacy of the Games that informed opinion on success or otherwise in the longer term.

Although the methodology Managing Successful Programmes (MSP®) was used throughout the organisation, this was a programme on a scale far bigger than any MSP® training can prepare you for. How did the programme managers working on the Olympics manage something this big?

It’s Complicated…

The London 2012 Olympic and Paralympic Games had a lot to deliver and standards had been set high. The organisers had to put on excellent sporting events: during the Olympics and Paralympics, meaning the equivalent of holding 26 world championships at the same time. However, they were also aiming to leave a lasting legacy for the UK by boosting sports participation and ensuring the excellent facilities were used after the Games. London 2012 was also working overseas to spread the message of international participation, organising the Cultural Olympiad to unite culture and sport, and working with the local community to involve people in the international events happening on their doorsteps. That’s a lot of projects to organise and coordinate.

In addition, London 2012 had to ensure venues were built, tested, and ready to put on great sporting shows, including those taking place at the Olympic Park in East London, a project often quoted as twice the size of Heathrow’s Terminal 5 but being built in half the time.

Organisers also had to make sure that London and the UK could carry on working while the Games were on, ensuring local residents and businesses continued to receive the goods and services they need, and making sure that the transport system could accommodate the huge number of visitors and participants who were in London.

There were a number of different organisations involved with delivering the London 2012 Games. The London Organising Committee of the Olympic and Paralympic Games (LOCOG) was a private company responsible for staging the Games. The Olympic Delivery Authority is a public sector organisation that was responsible for designing and building the new venues. Many central government departments and agencies were involved in providing services, coordination, and oversight for the programme, such as the Home Office, Metropolitan Police, Department for Transport, and Transport for London, and local


government had a huge role to play in the delivery of local services and ensuring that the Games came to life in London and around the UK. Finally, there was the Olympic Park Legacy Company, a joint venture of central and local government, which had the responsibility for ensuring the Olympic Park thrived after the Games finished.

Added to the complexity of organising such a vast number of individual projects and coordinating the involvement of so many delivery organisations, was the fact that the Games had a rather fixed deadline. The Opening Ceremony of the Olympic Games started at 20:12 on 27 July 2012 regardless of which stage preparations were at, so it was vital there was a clear, shared understanding of what must be delivered, by whom and how everyone was going to get to that end point. There was also a real need to make sure there was visibility about how things were going and an understanding of what the risks were, and how problems would be resolved.

If that isn’t enough, there was the added dimension of public interest in the Games. Stories featured in the press every day – unsurprising given the potential impacts on national pride and the UK’s international reputation. Moreover, with so much riding on a successful Games in 2012 and a sustainable legacy in the years after, scrutiny was high – everyone wanted to know how things were going. How do you keep everyone happy and deliver a great Games?

Where to Start?

Anyone who has been on MSP® training would think that the first place to start would be to make sure you’ve got a mandate, senior level buy-in, and a blueprint setting out what the aims of the programme are. With the Olympic and Paralympic Games, many of those essentials were taken care of during the bid process, which ended in 2005 for London. The scope of what the International Olympic Committee requires from a host city is clearly laid out and London described in its candidature file how it would meet these challenges and what it would do to make its Games special. Senior level support from all parties across government was secured during the bid process.

But, winning the bid was just the start – how do you make those ideas and concepts a reality? This is where the process gets complicated and where structured methodology can only help to a certain extent. At a project level, PRrojects IN Controlled Environments (PRINCE2®) techniques are invaluable in organising work and ensuring clear boundaries of responsibility. But, as the projects are collected into programmes and the programmes are collected into ‘super programmes’, life becomes more complicated. Those with a high-level view of the programme apply the principles of MSP® to bring structure to the programme – pulling together high-level plans and ensuring risks are managed effectively. Cross- programme or integration risks, issues, and progress are managed and a programme brief is kept updated to clarify the aims, organisations, and governance arrangements across the programme.


The London 2012 Approach

‘With a programme this big the art of programme management becomes almost more important than the processes,’ Sinclair said. ‘It’s important to establish good working relationships to ensure challenges and problems can be resolved quickly.’ She also said it is vital to take a pragmatic approach – dealing with so many different organisations, both public and private sector, and both large and small, means that a ‘one size fits all’ approach is not always going to work.

‘In fact with the best will in the world it’s never going to work. Therefore, it’s important to have a thorough understanding of everyone’s roles and who is responsible for what – and not be afraid to let people get on with their jobs. A flexible approach and being able to communicate your aims effectively is crucial to get people on side, build cooperation and get things done,’ she said.

One way London 2012 approached this was to form networks across organisations to bring together people with similar remits to enable communication and sharing of best practice. These networks ranged from informal knowledge sharing forums, to more structured and focused decision-making groups. Lissaman said, ‘A paper report does not mean you know what is really happening. What you need is for people to be open and honest with you and good communication is key. We have to deal face to face with stakeholders too.’

Underhill agreed: ‘Winning over the hearts and minds of your colleagues is just as important as the process. The ability to manage successfully relies on collaboration and creating a programme management family. Constituent parts of the programme are massive programmes in their own right.’

Another approach the programme tried to adopt is to learn from previous Games and spot where things may be falling through the gaps. For example, by breaking down organisational silos and bringing together different people by theme rather than by employer, the team identified scope gaps and overlaps in good time and were able to resolve issues that would have been far more expensive and difficult to manage if they’d been identified closer to

Game’s time. This sort of crosscutting approach to issues also helped to build relationships across organisations and prepared people for working during the Games, when issues needed to be identified and resolved quickly by those with the expertise, authority, and experience that matters. They needed to deal with situations appropriately and efficiently using the senior levels of governance to focus on preparations and set strategic direction.

But perhaps most of all, London 2012 learnt that flexibility and being aware of changing environments are key to keeping on track. This was perhaps inevitable in light of the radically different economic climate in which London 2012 found itself operating, compared to the situation when the bid was won. Changes to the economic climate had an impact on many areas of the programme, with changes of approach being needed to ensure the original aims of legacy and sustainability are delivered. Since then, there were also political © The Knowledge Academy 2020 64

changes at all levels – local, London Mayoral, and central government – and minimising the impact of these changes on the programme was achieved by securing cross-party support to the bid from the outset. Organisers also regularly reviewed the effectiveness of governance structures and adjusted them to meet changing circumstances and to evolve with the lifecycle of the programme.

Looking Ahead

The preparation for the Games then moved into a new stage – with the build phase nearing completion. As the Games got closer and deadlines got tighter, everyone had to pull together even more. There was a huge amount of commitment, energy, and enthusiasm for making sure that a good job was done. There were, naturally, huge challenges in getting such enormous projects and programmes to coordinate their activities and their knowledge, as Lissaman said, ‘Everyone involved in 2012 passionately wants it to be successful and they know that they can’t do this on their own.’

TOP TIPS FOR GETTING ENGAGEMENT ON A LARGE SCALE:

Be pragmatic – in a complex programme it is not possible for a ‘one size fits all’approach to programme management

Work in an engaging way that invites participation PRINCE2®/MSP® can be seen as bureaucratic so find ways to sell them – use

language that people can understand Relationships matter so talk to each other – don’t rely on emails and processes It is vital that you have the right stakeholders involved in planning for understanding

interdependencies Build integration activity into plans at the outset Create something that is seen as adding value and not a burden

THE STRATEGIC OBJECTIVES OF THE OLYMPICS AND PARALYMPICS WERE TO:

Stage an inspirational Games for the athletes, the Olympic family and the viewingpublic

Deliver the Olympic Park and all venues on time, within agreed budget and tospecification, minimising the call on public funds and providing for a sustainablelegacy

Maximise the economic, social, health, and environmental benefits of the Games forthe UK, particularly though regeneration and sustainable development in EastLondon

Achieve a sustained improvement in UK sport before, during, and after the Games,in both elite performance and grassroots participation


Planning and Control

Planning and control are fundamental to the success of the programme and should be seen as separate and complementary concepts.

A programme plan is developed when the programme is defined (during the defining a programme process) and will contain many assumptions and estimates. These will be revised as progress is made and information becomes available. The preparation of the plan requires the analysis of large volumes of data and consultation with subject matter experts and stakeholders before the distillation of that information into a coherent plan.

Programme control is exercised through a number of mechanisms which collate and present the information related to progress to the higher authorities. Supporting activities and processes will be applied to ensure that projects are commissioned on a timely basis and that the progress and transition activities are undertaken as scheduled.

Overview of how Planning and Control fits into MSP®



Programme Plan

Programme Plan Preparation Activities

Analysing a large amount of information, in order to lay out a detailed plan ofactivities

Identify the right path for the programme through stakeholder consultation Utilise progressive refining and information from other baselines in an iterative

process to improve and establish a final plan

Programme Plan

Functions of the programme plan include:

Forms an overall picture of the programme’s activities

Provides a clear understanding of the objectives within the vision statement Links benefits to projects and tranches, to show how the programme objectives will

be achieved Requires information inputs about the capacity and abilities of resources Includes stakeholder needs and the roles of responsible people Timetable which identifies dependencies and interfaces between projects and

benefits Risks and Issues that could be results of projects Lists the milestones at which the projects and programme will be monitored Considers the cultural aspects and acceptance of teams Requires on-going coordination of project plans Focuses on the interdependencies between projects and external dependencies

outside the control of the programme

Contributions to the Programme Plan



Resources

Resource: Any input required by a project or programme They cover materials, people, assets, funding, and services Have finite availability

Sharing resources has its advantages and disadvantages, and need to be managed properly. On one hand, sharing too many resources can result in bottlenecks, whereas if used in moderation, it can promote efficiency, knowledge sharing, and reduce time and money.

Human resources and the management of people is also complex, and may require some careful preparation. If relationships between people are not already in place, team building should be employed, to promote supportive and effective teamwork. However, there may be limits on skills, numbers, and emotional constraints.

Resource Management Strategy and Plan

1. Identify all resources required by the Programme Plan and how they will beacquired, used, and managed

2. Select required specialist skills and outline where and when they will be needed3. Develop Resource Management Strategy alongside the Programme Plan, so they

align and the correct resources are assigned to projects and activities4. Ensure the Resource Management Plan reflects the correct schedules for resource

requirements and staff designation5. Represent shared resources as dependencies and plan their use to optimise them

Risk Management

The Programme Plan should be prepared to manage the risks that may arise when implementing it. Within the programme, individual projects may be vulnerable to risk that could affect the whole programme. The plan should ensure to put in place risk identification and response activities into the programme’s risk management strategy, in order to endure that the programme will be able to respond to risks should they arise.

Projects Dossier

The Projects Dossier is a document that summarises all projects and their outputs. The objective is to clarify which projects are accountable for which activities, results, resources, and costs. The clear delineation of project boundaries minimises the interfaces and dependencies between projects.

These are some key characteristics of the projects dossier:

Receives information from the blueprint, including the intermediate and ‘to be’states, as well as the specifications that are required by each project

Identifies dependencies on other projects Includes anticipated budgets based on business case Describes each project’s contribution to the programme


Deadlines, Constraints, and Priorities

Some programmes have certain time-restrictions that constrain the overall timescale and schedule. Planning properly will ensure that deadlines or other such constraints will not confuse the programme’s objective, or lead to unsatisfactory completion. The programme is obliged to continue to deliver the most high-priority capabilities that can still realise the maximum benefit.

Priorities are extremely important to factor in when scheduling, since delaying or bringing forward certain projects can have a significant impact on the resources or the programme as a whole. Prioritisation should focus on:

Critical activities, such as projects whose outputs are relied upon by others – a highamount of dependencies makes this difficult

Resource requirements for skills that are not readily available – a lot of sharedresources impacts this

Early Benefit Realisation




EXERCISE:

Match up the elements required for the Programme Plan, Resource Management Strategy and Plan, and the Projects Dossier.

Programme Plan

Resource Management Plan

Project Dossier

Outlines specialised skills and where/why they are not

Includes anticipated budgets based on business case

Identifies dependencies on other projects

Correct schedules for staff designation

Risks and Issues that could be results of projects

Minimises the interfaces and dependencies between projects

Requires information inputs about the capacity and abilities of resources

Forms an overall picture of the programme’s activities


Programme Control

Programme Control Activities

Refine and Improve the delivery of the programme through supporting activities Ensure benefits outweigh costs, so the programme is justified to continue Bring certainty by addressing any ambiguity and reduce its impact

Features of Programme Control

Should be established early on – assurance arrangements described in programmemandate and detailed in programme preparation plan

Critical control points at end of tranches to ascertain whether the programme isviable to continue. This is based on the realisation of benefits, whether it still alignswith blueprint strategy, and management of funding

Provides clear tolerance limits to projects, so they do not exceed their delegatedauthority

Ensure productive communication between projects, programme, and operations.Good communication flow enables information re-use from standards that areintroduced as part of programme governance

Monitoring and Control Strategy

Monitoring and Control focuses on how the programme will be controlled internally. It explains how the programme will maintain governance over its projects and change activities, how project interdependencies are managed, and aids in keeping the programme on track to achieve its objectives.

It ensures that the projects are initiated and executed in a controlled manner and their stages are defined correctly, in order for them to be effectively reviewed against blueprint and programme plan, before they are approved, redirected, or stopped.

Dependency Management

Dependencies are split into three categories: Internal Dependencies, Intra-dependencies and External Dependencies. They are defined as dependencies within the programme, between programme and other projects, and outside the programme respectively. Below are some examples and how they are managed. Internal Dependencies are managed inside the programme and include how projects depend on each other, such as shared resources. Intra-dependencies are found within the parameters of the organisation’s programme management and are thus dealt with by making plans to accommodate them within its remit. External Dependencies are beyond the control of the programme management environment and could be in external dynamics, such as legislation and strategic decisions. They are managed through the creation of a dependency network, which helps enable the programme manager to identify which projects have dependencies but no respective responsibilities.


Example of a dependency network showing how projects depend on other project

outputs



Exercise

Fill in the table below.

Dependency Type of dependency How it should be managed

Certain resources will be available only after completing the project for a different program

As per instructions from the SRO, the potential markets need to be identified before the marketing plan is prepared

If any organisation launches the product before Azure Scents the program, Azure L’eau de Parfum, should be stopped

The FDA regulations of the targeted country should be considered


Project Briefs

Details of each individual project within the programme’s scope. They should include:

Scope Objective Outputs Constraints Interfaces How the project contributes to delivering new capability How the project requirements match the blueprint How new capability links with benefits and outcomes Defines authority, accountability, and responsibilities in project How the project will report performance to programme Guidance on how the project should perform to standards

Integration of Information

In some case, pre-existing projects need to be adapted to be included within the programme and all details pertaining to it need to be integrated into the blueprint and programme plan. This integration will cover:

Strategic-level changes that alter the programme’s blueprint, vision, or businesscase, and/or impact on live projects

Responsibilities/Accountabilities from governance strategies that might impact atproject level

Tolerance levels for cost, schedule, and quality Project milestone and review points for each project

Information Management Strategy and Plan

Should include the following:

Standards and Processes to cover data and records management Naming conventions and version controls Details information systems Confidentiality and Information Integrity Levels Audit requirements Configuration Management Procedures

Progress Monitoring

Monitoring should be established when implementing the Programme Plan and should prevent the programme from losing focus on its targets, by implementing management plans to address any issues. Formal assessments normally take place at the end of tranches or at planned control points if tranches overlap, or are particularly lengthy. At this point, anything which is tangible and available or if a milestone has been reached, is assessed,


which adds to the overall picture of whether the programme is still viable against the business case.

The type of review could be any of the following:

Internal audit Peer-level assessment External scrutiny

All information for this purpose must be valid, current, complete, and accurate.

Planning and Control Transition

Simple example showing outputs, transition management and benefits realisation


Some programmes may result in a new operating model, whose transition into the organisation is aided by detailed transition planning. Sufficient progress must have been made, because it requires knowledge of specific project outputs and the state of readiness of the operations due to change.


There are three phases of transition, which are detailed below.

Pre-Transition

First stage, acting as preface to transition Begins as soon as programme is known to the public Developing blueprint ‘as is’ state will define the baseline that will be used to

measure the progress towards desired state of operations Requires all stakeholders to accept the vision Operations need to be ready to accept new capability and be able to go through

transition. Only then can the stop/go decision be made to initiate transition

Transition

If more than one deliverable is planned, the more complex the transition, so morecareful planning is required

Outputs are embedded in business operations Needs to be reviewed and assessed to verify the benefits realisation

Post Transition

Aims to achieve persistent and prevailing change and prevent the main reasonprogrammes often fail: project outputs are accounted for, but the main purpose ofthe programme (to work towards business change outcomes) is not

May go beyond programme’s life, so is then passed on to BCM

Planning and Control within Transformational Flow

Transformational Flow Planning and Control

Identifying a Programme Programme Preparation Plan is produced

Provides basic governance arrangements for use in Defining the Programme, before full governance framework is developed

Defining a Programme Full set of plans and governance arrangements are prepared

The outputs are reviewed towards the end of the tranche


Managing the Tranches Full set of control documents are used to direct and control the programme

All work in programmes except starting projects which is covered later

Delivering the Capability Projects Dossier identifies which projects will start

Blueprint and Programme Plan explain how outputs will be integrated into outcomes

Project teams made aware of dependencies

Reporting arrangements are agreed for each project

Realising the Benefits Collaboration between projects and those carrying out other programme activities is vital

Transition is managed

Closing the Programme Ensure that programme delivers all projects in dossier

Review programme against all control documents to assess its management


Quiz 7Assess how well you have understood this section on Planning and Control

1. Which type of dependency is managed with a Dependency Plan?

A. Internal Dependency

B. Intra-dependency

C. External Dependency

D. All of the above

2. Which of the following contains the objectives of projects?

A. Projects Dossier

B. Projects Brief

C. Programme Plan

D. All of the above

3. The Programme Plan details how to identify and assess risk. Explain your answer.

A. True

B. False

4. Which of these is a feature of Programme Control?A. Explains how the programme will maintain governance

over its projects and change activitiesB. Analyses a large amount of information, in order to lay

out a detailed plan of activitiesC. Prevents the programme from losing focus on its

targetsD. None of the above

5. Which of the following does a large amount of dependencies affect?

A. PrioritiesB. ConstraintsC. DeadlinesD. Transition


The Business Case

Overview of how the Business Case fits into MSP®


The business case provides the test of the viability of the programme and justifies the investment in the programme. Closely linked to the analysis of benefits, this document provides the SRO and the sponsoring group with the information required to support their investment decisions. The programme business case is maintained throughout the life of the programme to provide the sponsoring group and programme board with the confidence that the investment in the programme is worthwhile.

As the programme progresses, more accurate information will become available to support the business case and the assumptions and estimates upon which it is based. The use of this information allows the business case to be regularly refined and revised, providing the SRO and sponsoring group with the most accurate and up-to-date information available upon which to base all major decisions.


Genesis of Programme Business Case

Genesis of Programme Business Case


Business Drivers

The business drivers are fairly self-explanatory, in that they drive the business to see the need for change through either a brand new business strategy or to invoke changes or re- work to the business case from a current one. These drivers often are motivated by demands from within the organisation or externally.

Business Strategy

The business strategy then further identifies the type of change or operational method it will need the programme to implement. This goal of the programme is the basis of the programme mandate, which then triggers the initiation the programme.

Programme Brief

The programme brief receives input from the business strategy and programme mandate, and attempts to evaluate the programme’s viability. If it considers the programme achievable, the brief is further detailed into the programme business case.

Programme Business Case

As the programme progresses, the business case will require continuous re-work and updates, some of which will be driven by outside business drivers, such as legal requirements. The business case must also continuously validate the programme is worth the investment; it constantly justifies the continuance of the programme. To do so, it requires frequent reviews at the end of tranches, or in the case of any updates, to ensure that the programme will continue to deliver the desired benefits. © The Knowledge Academy 2020 80

Link with Benefits

The Business Case will always be tied in with benefits, as they are the data that aids in providing justification for investment. As such, any new benefits that arise during the programme should be updated in the business case.

The main rule for justifying investment is that due to the financial savings running the programme are expected to be more than the cost of the projects to deliver the new capability. The only exceptions to this are compliance programmes, where the avoidance of negative consequences are counted as benefits.

Link with Projects

Projects also have their own individual business cases, which focus on delivering the project outputs and balancing the cost, schedules, and risks of those outputs. They provide the details of dependencies on other projects and manage the risks that are within the tolerance limits. Any escalation of an issue or risk from a project that could affect the programme is dealt with by the programme business case. This is because it is broader than the project business case; it embraces the wider horizons of the strategic outcomes arising from the projects – it is more than simply a summation of the project business case.

Contents of Business Case

Information Inputs for the Business Case:

Blueprint Benefits Realisation Plan Risk register Resource Management Strategy and Plan Programme Plan

In defining a programme, all the above documents should be prepared in parallel, so they can also receive the information from the business case once it formulates and analyses the data they provide.

Putting this information through analysis, the business case compiles:

Overall costs Planned Benefit Realisation Risk profile of programme

These three areas are most pertinent for the business case to justify the programme, since the desired benefits must overcome the cost and risks to which implementing the programme may make the organisation vulnerable.


Net Benefit Line

The Business Case must measure and evaluate the programme costs against the realisable benefits. The net benefit line is supposed to demonstrate that, as more benefits are realised throughout the programme, the cumulative net benefit increases.

Cumulative Net Benefit


Once the net benefit line gets above zero, this means the programme has reached the milestone of breaking even on its investment.


EXERCISE

Programme Business Case Project Business Cases e.g. Broader than project cases Focuses only on the outputs of the

project


Types of Programme Costs

Project Costs

Referred to as investment or development costs Costs incurred whilst delivering the project outputs For the project and programme contingency and budget change Can be derived from Projects Dossier, Programme Plan, and Project Business Cases

Benefit Realisation Costs

Costs incurred when setting up and implementing measurement, monitoring, and reporting on benefit realisation

Include other benefit-related costs, such as compensation packages for staff Derived from Benefits Management Strategy, Benefits Profiles, and Benefits

Realisation Plan

Business Change and Transition Costs

Costs of preparing, training, moving, and supporting an operational unit until new practices are embedded

Can include the cost of activities within ‘Realising the Benefits’ Costs of BCM and Business Change Teams Derived from programme plan, resource management plan, and benefit profiles

Programme Management Costs

Associated costs with Programme Officer, Programme Manager and Programme Management Activities, which can include office space, or programme tools for tracking and reporting progress

Includes contingency budget for dealing with risk and change Costs incurred in assurance and review Derived from Resource Management Plan, Information Management Strategy,

Programme Communications Plan, Quality and Assurance Strategy, and Programme Plan

Capital Costs

Costs incurred for the purchase of fixed technological assets The impact of these costs will often be spread over a number of years Derived from the blueprint



Reviewing the Business Case

Validating the Business Case


Identify

Does the initiative make good business sense?

Yes: Send inputs forward to the define stage

No: Send feedback to the policy strategy group

It is important to ensure that alternatives have been considered

Define

As management and activities are implemented, is the business case still viable?

Yes: Once satisfied with emerging business case, send it on to

Tranche No: Check alignment with strategy

Tranche

At the end of the tranche, benefits are delivered. At this point, is the business case still viable?

Yes: Send on to next tranche

No: Make the required changes


Close

Was the business case met to all standards?

Yes: Close the business case review

No: Ensure any lessons learned are recorded to improve future business cases

Managing the Business Case

The Business Case will be supplying information throughout the programme’s lifecycle, ensuring that all objectives are delivered, and the outcomes align with the overall strategy.

To manage the business case is to evaluate how many of the expected benefits the programme can realise and whether the costs and benefits are still correctly balanced to ensure the programme still favours the organisation’s strategic objectives.

Management will use the Business Case to assess:

Implementation of business change Revisions to blueprint or scope Revised benefit and cost estimates from BCMs and projects Risks and issues that are identified

The Business Case still continues after the programme closes, to ensure that not only the programme outcomes have been achieved, but the business change is continuously sustained.


EXERCISE

Below is a basic outline of what the business case should evaluate. Expand on each of the sections to specify exactly what the business case will consider and detail why it is used:

Benefits and Dis-benefits

Risks

Costs

Expenses

Strategic Objectives


Business Case within Transformational Flow

Transformational Flow Business Case Identifying a Programme

Programme Mandate is input Programme Brief is created and

provides outline of business case

Defining a Programme Whole business case is developed

using inputs from governancedocuments

Ensures all alternatives have beenconsidered to create optimumbusiness case

Managing the Tranches Business case needs to be updated

and reviewed throughout tranches End of tranche review also needs

business case to confirmprogramme is viable

Business case needs to be checkedagainst corporate strategy

Delivering the Capability Programme business case includes

cost of business changes and benefitrealisation costs

Describes how project outputsintegrate to achieve businessstrategy

Realising the Benefits Benefits are integral to the business

case If programme fails to deliver

benefits, business case also fails Benefit reviews provide input into

reviewing business case

Closing the Programme Business case should have been

achieved Continues after closing with SRO

ensuring business change is fullyabsorbed


Quiz 8Answer these multiple-choice questions to test your knowledge on the Leadership and Stakeholder Engagement section:

1. Which type of cost can be referred to as investment costs?

A. Business Change and Transition Costs

B. Programme Management Costs

C. Project Costs

D. Capital Cost

2. What occurs at the end of a tranche?

A. Review of business case

B. Benefits are realised

C. Check if programme is still viable

D. All of the above

3. Project business cases ensure project outputs are integrated to corporate strategy.

A. True

B. False

4. How does the Programme Brief relate to the Business Case?

A. It provides input information

B. It is the outline

C. Compares it to the Programme Mandate

D. All of the above

5. What is the central purpose of the Business Case?

A. To perform a cost-benefit analysis

B. To align programme with business strategy

C. To ensure the identified costs and risks are worth it

D. To outline the benefits of programme outcomes


Risk and Issue Management

Overview of how the Risk and Issue Management fits into MSP®


Introduction

Programmes are managed in an uncertain environment and risks will be identified throughout the duration of the programme. This governance theme covers the identification, management and escalation of risks and issues. The risk process is applied to both threats and opportunities. Threats have a negative impact on the programme outcomes, whilst opportunities have a positive or advantageous impact. From an organisation’s perspective, there are four types of risks:

● Strategic● Programme● Project● Operational

Categorising the risks in this way enables the appointment of suitable risk owners and provides the opportunity to escalate the risks to higher authorities if their status or significance changes.


Issue resolution is closely linked to change control and provides a formal approach to the treatment of changes. It is critical that a strategy is established to provide guidelines for the management of issues because it is impossible to plan a programme that will not be subject to change requests and issues. This governance theme highlights the need for pre-emptive guidelines and tools to allow the effective and efficient management of issues when they occur.

Risks and Issues

Risk is an uncertain event or set of events that affects how the programme achieves its objectives. They can be:

• Detrimental or non-detrimental• Negative

o Threats impede or prevent the realisation of benefits• Favourable

o Opportunities that promote the objectives or introduce new benefits

They should be described with details of the event, its cause, whether it is negative or favourable to the programme and the impact it is most likely to produce Issue is an unplanned event that has occurred and requires intervention by management. If a risk occurs, it becomes an issue.

Risk Management Perspectives

As described, there are four types of risk that management needs to be aware of, in order to anticipate where the programme might be vulnerable: Strategic, Programme, Project, and Operational.

Interrelationships between different organisational perspectives



Risk Management Strategy

A risk management strategy outlines how a programme will approach managing its risks. If the organisation already has risk governance structures and policies in place, the programme risk management strategy should reflect these and ensure compliance with them throughout the programme. However, the programme’s risk management strategy will be programme specific, with the programme setting its own risk appetite and culture. A key role will be describing how the projects within the programme should address their risks, as well as how the projects, programmes, and operation will work together to manage risks that impact them all. As such, the flow of information between them must be detailed in the risk management strategy to prevent key details being lost when they manage their risks in isolation. The management of opportunities should be aligned with benefit management, as specified in the benefit management strategy.

Risk Appetite and Tolerance Thresholds

Risk appetite is the extent of risk a programme is willing to accept, whereas as tolerance thresholds translate the risk appetite into a guideline, so projects and programmes know where they can operate. When both are defined well, the programme is protected from unexpected risks and it is clear when the reaction to a risk exposure needs to be escalated e.g. an event may cause a domino effect across the programme, because generictolerance levels were set.Assumptions, Early Warning Indicators, and Risk Register

Assumptions Assumptions are the boundary of the programme or projects in the business case and provide for uncertainties outside its immediate area of influence. They are recorded in the risk register because a false assumption can have a detrimental impact on the programme, so should be treated as a risk. The programme should first process the assumption in case of risk, and then the project should manage it as a risk.

Early Warning Indicators

The essential characteristic of risk management is that it is proactive. Detection of possible risks before they occur, and planning risk responses in case they do, can be improved by Early Warning Indicators. They provide advance warning of potential threats, trends, and can provoke preventative or corrective action.

They are only of value if they are measuring valid indicators, are regularly updated and reviewed to ensure they are accurate, and they reach decision-makers to be acted upon. Some examples are:

• Reduction or delays in the delivery ofexpected benefits

• Changes to services or products• Increase in aggregated risks


Risk RegisterThe Risk Register is a repository of all identified risk information. The risk management strategy defines the content and purpose of the risk register. It is created during Defining the Programme; any existing risk before then will be described in the Programme Brief. Projects maintain their own records, while programmes coordinate the activities in a separate register.

Risk Evaluation

Risks are uncertain events, because it is unknown whether they will actually occur and become issues. Evaluating risk is about calculating the probability and assessing what the impact on cost, schedule, or benefits could be. This can be done in a number of ways:

• Probability impact grid• Expected Value• Estimated Monetary Value• Calculation• Net present value calculation• Risk model

Risk Aggregation

While one project’s risk may be fairly simple with a low expected impact, it can be the case that when coinciding with risks from other projects in the programme, the impact can suddenly dramatically increase. To manage this, the Programme Manager will need to be aware of the level of risk impact on each project, so that details of contingency and mitigation plans can be prepared. A summary risk profile can demonstrate aggregation and interdependencies, so that responses can be implemented into the risk management strategy.

Summary Risk Profile



Proximity and Progress Reporting

Proximity

Proximity is the idea that, depending on when the risk will occur, its impact on the programme may vary. Analysing proximity helps management to be aware of upcoming threats and discover the cause or instigate a response.

Progress Reporting

A progress report is a document that monitors the programme’s risk exposure. It tracks any overall trends in risks and issues across the programme, as well as the aggregation and escalation of risks in projects. It can include key data, such as:

The success of any risk management activities Trend analysis of risks and issues Anticipated emerging and aggregated risks The expenses of implementing contingencies

If properly maintained, the progress report is a key risk control for the programme.

Risk Management Cycle

Programme Risk Management Cycle



Identify

The identification of all risks is the first step of risk management. Gaining understanding of the scope, objectives, assumptions, and environments of the programme helps to clarify the types of risk that the programme is vulnerable to and the extent of their impact. Without this understanding, it is more likely that the programme will be surprised by unexpected risk that was unaccounted for, or not prepared to implement the correct countermeasures.

Once the programme context is comprehended, threats and opportunities can be identified and recorded in the risk register.

Assess

Threats and Opportunities must be assessed for their probability, proximity, and impact. Together, these elements can be used to calculate the net aggregated effect of all programme risks. This is important at the programme level, since the assessment of individual project risks does not reveal the impact of combined risks from multiple projects on the programme.

Plan

Once assessed, the appropriate responses must be prepared, in order to reduce or, even better, remove the effect of the risks on the programme. Each risk will have a specific response or set of responses to combat the threat or realise the opportunity. Sometimes, these are not completely effective, leaving behind residual risk. This must also be assessed and planned for.

Implement

This step ensures that the response actions planned in the previous stage are implemented, monitored, and successful. If they are ineffective, corrective action needs to be taken.

Furthermore, the risk owner and risk actionee roles are assigned:

Risk owner: Responsible for management and control of all risks assigned to them Risk actionee: Responsible for the implementation of risk response actions. They

support and report to the risk owner

Other Activities within the Cycle

Communicate

Not a step, but an activity that is carried out throughout the risk management cycle alongside all four steps. It is important in the identification of risks, and management must communicate any changes in risk and risk management to staff and stakeholders.

Embed and Review

Also another activity running alongside the cycle, ensuring that all steps within risk management are properly handled within the programme and the wider organisation. It


reviews each of the steps to evaluate its contribution to the overall risk management strategy. It provides controls over the process, including health checks and maturity models to gain maximum value from the investment into risk management.


Exercise

Exercise

1. Clarify the difference between the Risk Register and the RiskProgress Report, detailing the purposes and included elements of each:

2. Define the following risk management concepts:

Concept Definition Risk Appetite

Risk Tolerance

Assumption

Proximity

Opportunity

Threat

Issue


Issue Management

Issues are manifested risks that require management intervention. Action is required to solve the problem, reduce its impact, or send it outside the programme for management. They canemerge from:

• Constraints• Stakeholders• Projects• External sources

Issues within projects are dealt with by the project risk management. However, those that fall outside of the project tolerance thresholds will need to be escalated to programme risk management level.Issues can be classified into three different types:

• A risk that was earlier identified and has now occurred• A request for change within the programme• A problem that affects part or all of the programme

Threat and Opportunity ResponsesThreat

• Avoid: Remove the risk, often by identifying and preventing the cause of the threat• Reduce: Change the probability and impact of threat, also known as mitigating risk• Transfer: Pass all or part of the risk to third party e.g. insurance takes the cost of

thethreat• Share: Seek multiple parties to share the risk on a pain or gain basis• Accept: Accept the risk will occur and absorb the impact. There are no costs incurredby

accepting, unlike other responses• Prepare contingency plans: Plans will be prepared but no action until risk occurs

Opportunity• Exploit: Increase and strengthen cause of opportunity e.g. make it a betteropportunity• Enhance: Increase the probability of the opportunity occurring and its impact• Share: Risk is shared by multiple parties• Accept: Allow opportunity to happen without intervention• Transfer: A third party gains a cost-benefit, while primary risk taker gets main benefite.g.

increased number of customers. (not usually preferred, all benefits would bebetter)• Prepare contingency plans: Planning a backup in case opportunity does not

comethrough as planned


Issue Management Cycle

Issue Management Cycle


Capture

This step is to determine the issue type. This process is prescribed in the issue management strategy, but essentially the issues are analysed, categorised, and their impact assessed.

Examine

Impact analysis is used to examine the issue and its impact, in terms of the programme’s performance, business case, risk profile, projects, objectives, blueprint, and operations.

Propose Course of Action

Before this can take place, it should be ensured that all alternative solutions have been considered. The best solution should maintain the balance between its advantages, how it affects cost and schedules, as well as if it causes other risks.


Decide

The next step is to decide to implement the proposed solution, or to choose a different one. Issue management strategy should outline the decision-making hierarchy, as well as who has the authority to have the final say. The programme manager can make decisions on minor issues, while any decisions made about issues affecting operations should involve the BCM. When the decision is made, an issue owner and actionee should be assigned, and the issue register should be updated.

Implement

The final stage is to implement the decided change. The stakeholders should be informed about the decision and response action plan. All documents which contain information related to the change should be updated. The change is then applied and all resulting effects and lessons learned should be recorded, in order to inform future issue decisions.

Other Activities within the Cycle

Monitor and Control

All actions regarding issue management need to be monitored and controlled, to ensure they are resolved, the impact is assessed and checked as acceptable, and that the impact on benefits, processes, and performance is minimal and not underestimated.

Embed and Review

As with risk management, this stage is to review each step’s contribution and ensure all actions are being handled optimally. End of tranche reviews should also provide evaluation on issue management strategy, so that the next tranche’s issues are managed more effectively.

EXERCISE

You are Programme Manager of a programme setting up a new grocery store. Knowing the local farmers that supply your fruits and vegetables tend to not work well to a schedule, you have a choice of risk response actions.

Match up the risk response actions to the correct type: Avoid, Reduce, Transfer, Share, and Accept.


Action Response

Find new suppliers, despite them being further away and you will incur shipment costs

Put a clause in their contracts, billing them a fee for every late delivery

Take out insurance to cover the cost of delays, loss of customers, and other impacts

Emphasise to the farmers your need for on-time supply, in the hope the product is worth possible delays

Spread out your supply from several local farms, so not all of your supply will be late

Avoid

Reduce

Transfer

Share

Accept


Issue Management Strategy and Issue Register

Issue Management Strategy

As with the risk management strategy, this describes the programme approach toissue management

Outlines how issues will be identified, categorised, impact-rated, and then managed Explains the change control procedures Provides clear processes to how issues will be escalated or delegated to parts of the

programme

Issue Register

Very similar to the risk register All information pertaining to the issues identified are recorded in the issue register Created in Defining the Programme

The Programme Office should have a major role in building, maintaining, and supporting the issue management strategy, cycle, and operations.

Change Control

Programmes deliver business changes, but they do impact other parts and processes of the organisation whilst doing so. The programme environment is constantly changing and this will impact not only its ability to produce the outcomes, but also whether those outcomes are still required.

Small changes within projects may go unnoticed due to their minimal significance in the bigger picture, but major changes should be governed correctly if the right processes are in place. The formal change control process is outlined in the issue management strategy. They are:

Capture the change and define why it is needed Allocate priority to indicate urgency Authorise an agreed solution Assess the impact Analyse all the options and test the potential solutions Implement the change and monitor its effects Review effectiveness and update associated documentation

All changes should be assessed for their impact on the Programme Plan, Blueprint, Benefits, and Projects Dossier.

Programme changes are processed by issue management. Configuration management provides the control for managing these changes, as it assesses their impact, but recognises that a change in a particular configuration may necessitate a change in other items.


Configuration Management

The purpose of configuration management is to control the development of and changes to programme documentation and assets, products, and services created by the programme. There are five stages:

Planning

Decisions regarding what level of configuration management is appropriate. These are decided based on the blueprint and the organisation’s approach to configuration management

Identifying

Involves identification of all assets created during the programme and any dependencies. A system for describing configuration items must be set up.

Controlling

The configuration of the programme is baselined once the programme definition document is agreed. Any changes to configuration must be version-controlled following procedures outlined in the information management strategy. The programme should also explain how dependencies on external assets will be managed if they change.

Status Accounting

Maintenance of the current and historical information pertaining to configurations, such as items and dependencies.

Verifying

Involves auditing the programme to ensure conformity between expected and actual status of the products and the configuration items, before it is transferred to operations.


Quiz 9Answer these multiple-choice questions to test your knowledge on the Leadership and Stakeholder Engagement section:

1. What is the main characteristic of Risk Management?

A. Preventative

B. Proactive

C. Precise

D. Programme-Specific

2. Which form of Opportunity Response is the least desired?

A. Exploit

B. Enhance

C. Transfer

D. Prepare Contingency Plan

3. Which process occurs if a risk is outside the tolerance threshold for therespective project or programme?

A. Risk Evaluation

B. Risk Aggregation

C. Risk Escalation

D. Risk Response

4. Which is the correct order of the Risk Management Cycle?

A. Capture, Assess, Plan, Implement

B. Identify, Assess, Decide, Implement

C. Identify, Examine, Plan, Implement

D. Identify, Assess, Plan, Implement

5. A risk owner is responsible for the implementation of risk response actions.

A. True

B. False


Quality and Assurance Management

Introduction to Quality

Quality management, in relation to MSP®, refers to the need to satisfy the stakeholders’ requirements by meeting their expectations and offering the best opportunity to realise the planned benefits. Quality and Assurance management activities will be undertaken throughout the duration of the programme to confirm that there is optimal management of people, resources, suppliers, processes, assets, information and strategic alignment, and describe the importance of having an effective quality and assurance strategy to help enable and optimise the achievement of the programme goals, so they continue to meet the stakeholders’ expectations.

Overview of how Quality and Assurance Management fits into MSP®



Quality

Quality is defined as ‘the totality of the features and inherent or assigned characteristics of a product, process, or system, which shows that it meets expectations, requirements, or specifications’.

Quality and Programme Management Principles

Programme Management Principles describe the characteristics of a successful programme and act as critical success factors. Quality focuses on these areas, because they determine how successful the programme is.

Remaining Aligned with Corporate Strategy

Tested by checking the validity of the vision statement, blueprint, business case, andbenefits realisation plan.

Ensures the correct projects are running and reviewing the currency of thegovernance strategies

Leading Change

Tested by reviewing quality of the leadership behaviour exhibited by programmepersonnel and the impact they have had on the stakeholders

Envisioning and Communicating a Better Future

Tested through the level of engagement the programme is achieving Understands the expected outcomes of the programme and the benefits that will be

delivered

Focusing on Benefits and Threats

Tested by checking that the benefits are a prominent focus of the ProgrammeBoard, all benefit information is in place, and the projects are clearly in line withthem

Adding Value

Tested by checking the programme is still justified Review to see if changes would promote better delivery configurations If the programme is no longer justified, it should be closed. If a group of projects are

no longer benefited by being part of a programme, they should be givenindependence

Designing and Delivering Coherent Capability

Tested against the validity of the blueprint, the projects’ ability to deliver thecapability, and the organisation’s ability to implement it


Learning from Experience

Tested by assessing the effectiveness of the reviews and how well the lessonslearned are being utilised

Can also be tested by the effect the reviews have on the programme and businessperformance metrics that measure internal effectiveness

The Scope of Programme Quality

There are eight process areas that require a management review of their effectiveness in supporting the delivery of programme objectives. These are key elements used in deploying quality and assurance:

Communications Management

Quality is focussed on testing perceptions of the success of stakeholders, in order toensure effective responses when deliverables do not meet the required quality

Needs to deliver the needs and expectations of the stakeholders The programme should categorise their stakeholders to effectively communicate

with them and to deliver their requirements for change. This will require goodworking relationships, so their needs and expectations can be anticipated

Information Management

Core purpose is to provide the right information, in the right format, to the rightpeople, at the right time

Provides support for decision-making by providing the correct input information Quality ensures that the data satisfies the five critical success factors:

o Compliance with organisational policies and legislation, such as data protectiono Information Integrity should be maintained under change management control.

An audit could be used to verify distribution systemso Availability of Information for decision makers when they require ito Confidentiality should be categorised into levels, which are allocated to

documents and their distribution. An audit trail will be neededo Currency should be maintained for all information. Old data can lead to incorrect

decisions

Process Management

Ensures the systematic use of defined processes in a programme Processes need to be adapted appropriately and systematically This will lead to:

o Efficient achievement of programme objectiveso Understanding of interdependencieso Integration and Alignment of the processes that will best achieve resultso Structured approaches that harmonise and integrate processeso Establishment of clear responsibility and accountability for managing activities


Asset Management

All assets subject to any changes and this is managed through change control and configuration management

Deals with identifying, tracking, and protecting the programme’s assets All assets are required to be fully utilised and managed well, to be effective Often grouped into external assets, programme assets, and internal assets, but cover

human resources, infrastructure, or information

Programme Leadership

Demonstrated by the quality of decisions made throughout the programme Leaders of successful programmes provide clear direction and communicate with

stakeholders Must establish a governance framework that provides adequate levels of control,

including delegation of responsibility, and deciding which quality reviews should be done

Should invest in skills of SRO, to ensure their effective leadership, because there is no guarantee that an effective business leader will be a good programme leader

People Management

Should ensure principles such as leading change, envisioning and communicating a better future, and learning from experience are followed diligently

Training, reward, and career development should be managed carefully

Standards Management

All standards are often reviewed and any changes should be managed effectively, so that programmes are aware of them

Many organisations have a quality management system that supports operations to ensure sufficient standard of products and services

Quality assures the suitability of the programme management activities

Supply Chain Management

Quality needs to ensure suppliers apply quality management to their processes, ensuring that they align with the way the programme operates

Provides agility and flexibility through the provision of resources and services as and when the programme requires them

Effective procurement ensures the right partners are selected and managed to ensure good programme delivery


EXERCISE

Fill in the table on this page with the main reason quality assesses each of the focus areas.

Focus Area Why should Quality assess it? Programme Leadership

E.g. Successful leadership will lead to better decision-making,which overall improves probability of a successful programme

Information

Communication

Suppliers

Standards

People


Assurance

Assurance is ‘the systematic set of actions necessary to provide confidence to the Senior Responsible Owner and the stakeholders that the program remains under control, is on track to deliver, and is aligned with the organisation’s strategic objectives’

Assurance Management Principles

Like quality, assurance adheres to principles that ensure the success of the programme. They are:

Independence

The assessors should have no provision for direct line management of the programme team. They should be disinterested in and have no control over project outcomes or service operations

Integrated

Integrated assurance is the planning, coordination, and provision of assurance activities from programme start to finish in such a way that less effort is required but assurance is still guaranteed. Normally, this is completed through a plan which schedules assurance reviews.

Linked to Major Decision Points

Assurance activities should be planned to support major points throughout the programme, such as outcomes and tranche ends.

Risk Based

Assurance should focus on high-risk areas, such as commercial, legal, investment, and performance requirements.

Action and Intervention

Appropriate follow-up actions are taken to resolve any problems identified through the planned assurance activity.

Assurance Management Techniques

Audit

A generic term; not limited to financial audits Used to assess the management, conduct, and ability to deliver a programme Involves the examination of programme activities, to ensure they conform to a

specified criteria. These can be internal or external standards, contract conditions,statutory requirements

Effectiveness of Measurement

Ensures decisions are based on accurate data and reliable information


Inputs, Resources, Activities, and Outputs need to be measured before any plannedchange activity, so the baseline can be formed against which progress andperformance can be assessed

Reviews of this data throughout the programme are analysed at regular reviewpoints, to ensure that measurements and analysis procedures are effective

Assurance Reviews

A programme assurance tool to determine whether the programme should continue Health checks can also be used to provide an impartial view of the programme Review activities include inspection of information, meetings with key people, or

attendance at meetings where major decisions are made Key areas to focus on are:

o How well the programme is controlling and enabling its projectso How well BCMs are preparing the organisation for changeo Whether internal processes and governance strategies are at their most

effective

P3M3® Maturity Assessments

The level of organisational maturity in programme delivery demonstrates how well the organisation can support its programmes. The P3M3® Maturity Model is a specific management maturity model to assess organisational effectiveness. There are seven perspectives taken into consideration:

• Management Control• Benefits Management• Financial Management• Stakeholder Management• Risk Management• Organisational Governance• Resource Management

There are five levels of maturity:

1. Awareness2. Repeatable3. Defined4. Managed5. 4. Optimise


A programme uses a P3M3® Model to:

• Improve performance • Assess maturity of projects • Measure itself against one or more perspectives • Ensure it is working consistently across all projects

Gated Reviews

• Optimal way to apply assurance controls to programmes, because it prevents the programme progressing until it has undergone a gated review

• Take place at the end of tranches • Check programme is controlled and on target to meet objectives • Can be applied to projects to ensure they align with blueprint and programme plan

P3M3® Model



Quality and Assurance Strategy

The main focus is to make sure the integrated assurance of the programme avoids overlapping reviews. It provides a strategic direction for assurance, which needs to be approved by the Sponsoring Group as well as cross-reference with the monitoring and control strategy. It is required by an organisation, due to its fundamental relationship with its approval and decision making systems.

Quality Assurance Plan

The plan will implement the quality and assurance strategy, and outline the responsibilities for quality, assurance, review, and control. It will detail how and when the programme will initiate audits, health checks, and reviews, and when such work will be monitored and reported.

The plan also inputs the required resources and schedule commitments into the programme plan, describing the resources the quality activities will need. It considers the assurance coverage of constituent projects and scheduling activities to prevent overlap and overload. It should be developed using a risk-based approach.

EXERCISE

Put the principles of Quality and Assurance in the correct columns

• Action and Intervention• Leading change• Independent• Integrated• Envisioning and communicating a better future• Risk‐based

• Focusing on the benefits and threats to them

Quality Assurance


Transformational Flow Quality and Assurance Management

Identifying a Programme Assurance approach and Critical Success Factors specified in the Programme Mandate Independent assurance of Programme Brief and Programme Prep Plan

Defining a Programme Creation of related strategies and plans Quality and Assurance, Information Management, and formal review of programme are completed

Managing the Tranches Quality in process, tools, and techniques described in individual strategies are embedded Quality and Assurance measures are applied Regular audits and Gated reviews performed

Delivering the Capability Strict Quality regime focussed on product quality Integrated assurance approach ensures regime is in place Programmes engage with suppliers

Realising the Benefits During pre-transition, there should be assurance that the business is ready for change During post-transition, the activities to embed change and realise benefits should be reviewed

Closing the Programme Formal reviews of strategy and plans and other programme documentation are conducted


Quiz 10

Answer these multiple-choice questions to test your knowledge on the Leadership and Stakeholder Engagement section:

1. Which management process does the Critical Success Factor ‘Compliance’ belongto?

A. People Management

B. Standards Management

C. Information Management

D. Communications Management

2. Which Assurance Technique reviews whether the programme should continue?

A. Assurance Reviews

B. Audits

C. P3M3® Maturity Model

D. Gated Reviews

3. Programme Quality Assurance Management differs from Project Quality AssuranceManagement.

A. True

B. False

4. What is the primary focus of quality management in a programme?

A. Setting quality criteria for outputs

B. Agreeing quality tolerances

C. Outlining processes and standards

D. Promoting process effectiveness

5. Which of the following documents explains which systems will be used to controlprogramme data and records?

A. Quality and Assurance Plan

B. Information Management Plan

C. Quality and Assurance Strategy

D. Information Management Strategy


Transformational Flow

Introduction

The term ‘transformational flow’ is used to describe a series of six processes that guides the programme management team through the programme.

Each process details the management activities that are required to be undertaken at each step of the programme.

The transformational flow is designed to ensure that the team gathers information and makes decisions at the appropriate point in the programme’s lifecycle.

Some of these processes are designed to be undertaken sequentially; for example, “identifying a programme” is completed before defining a programme.

Others may be undertaken in parallel; for example, “managing the tranches”, “delivering the capability” and “realising the benefits” will all have considerable overlap during many of the tranches.

Transformational Flow Process

Overview of the Transformational Flow Process



Identifying a Programme

During this process, the programme mandate is agreed by the stakeholders and developed into a more complete document that outlines the purpose of the programme.

The procedure is intended to engage with key stakeholders, who will (in most cases) form the Sponsoring Group, to ensure that there is a common understanding of the purpose and intent of the programme.

The programme brief defines the outline vision, expected benefits, estimate of costs, timescales, and risks.

This allows for:

Clarification of what can be achieved by the programme The desired benefits A management decision on whether the programme is desirable and appropriate Commitment to the investment and resources required to proceed to the next

process of Defining a Programme Confirmation that the proposed change should be managed as a programme

If a programme has emerged from other change initiatives, it will be necessary to act quickly to avoid any conflict or gaps in the current initiative. This will ensure no additional expenditure is required.


The Process of Identifying a Programme

Sponsoring the Programme

A programme will require top-level sponsorship to achieve and sustain the essential commitment to the investment, resources, timescales, delivery, and operational changes that will be involved.

The significant roles within the identification of a programme:

Sponsoring Group – providing the necessary authorisation, as well as nominating the SRO

Senior Responsible Owner – accountability for the success or failure of the programme

Programme Board – works on the programme brief and preparations plan, making certain that these are aligned with the business strategy

Confirm the Programme Mandate

This should express the direction, restrictions, significances, and ambitions of the programme to the team that is working on the development of the programme brief.

It should also describe the success of the programme, recognise critical factors, and outline assurance methods to achieve it.

Needs to be reviewed and confirmed by the Sponsoring Group, and acts as the trigger to initiate the programme.

Appoint the SRO and Programme Board

The SRO is selected by the Sponsoring Group at the earliest opportunity of the programme, in order to provide leadership and direction.

It is normally the person with the most authority, credibility, experience, and skills to lead the programme.

The Programme Board is formed and headed by the SRO, establishing governance and intended to deliver the benefits and outcomes of the programme.

Produce the Programme Brief

The programme brief provides a formal basis for evaluating the feasibility and achievability of the programme.

At this time of the programme, this is used instead of a detailed business case.

It defines the specific objectives, required benefits, potential risks, outline costs, and timescales using inputs from the programme mandate. It should accentuate areas of overlap that could cause conflict.

Develop the Programme Preparation Plan


This contains the detailed planning and design of all aspects of the programme, and is produced to ensure that the Sponsoring Group is aware and prepared to commit to cost, time, and resources.

The programme preparation plan sets out the governance arrangements, resources, and a predicted timetable for the delivery of work in the Defining a Program stage.

Independent Review

An independent review is conducted to calculate the scope, reasoning, and objectives of the programme.

This helps to classify whether the organisation has the ability to deliver the programme.

The procedure in which this review will be taken should be delineated in the assurance arrangement of the programme mandate.

Approval to Proceed

This is the formal endorsement of the programme brief, and the programme preparation plan, by the Sponsoring Group.

It authenticates that the SRO is confident the programme meets all business requirements and that it is a feasible task.

The Programme Board is now committed to the delivery of the programme, and resources are now provided to the SRO to undertake the process of Defining a Programme.


EXERCISE

From what you have learned throughout this workbook, demonstrate your knowledge on the previous sections and show how they are integrated into Identifying a Programme.


Defining a Programme

The detailed planning for the programme is undertaken at this stage. Once the sponsoring group refines and approves the Vision Statement, the programme board and supporting subject matter experts undertake a number of activities, culminating in the development of a Programme Plan (normally part of the larger and more comprehensive programme definition documentation), and the programme’s business case.

To enable the development of a robust business case, the process must first consider:

The blueprint – to understand what capability is required The projects dossier – to enable the estimation of costs, duration, and benefits

associated with the programme Confirmation of benefits – resulting from the analysis of the benefits and modelling

to achieve the optimum result The programme team Governance requirements

Establishing the Infrastructure

Programme infrastructure must be established at the beginning to allow the team to

successfully conduct the necessary activities.

This infrastructure might cover:

Office accommodation Configuration management Software tools Computers and other office equipment

As the Defining a Programme phase progresses, these volumes will increase significantly. All documents kept at this stage should be synchronised.

Establish the Team to Define the Programme

The Senior Responsible Owner will normally require a small team to support them, with the Programme Preparation Plan utilised to select members of this team.

Team members will fulfil formal business roles such as the Programme Manager or Business Change Manager. Specialist skills will need to be considered at this point, to assist with the blueprint, benefits, or options analysis.

Identify and Analyse Stakeholders

This should be started on at the beginning of Defining a Programme, as the appointed Programme Team will need to engage with stakeholders, and the manner of which these engagements takes place can have a great effect on stakeholders’ attitudes towards the programme.


Model the Benefits and Refine Benefit Profiles

The information in the programme brief and the Vision Statement help to form the first benefit profiles, and as the blueprint is designed, they can be extended and refined.

Too many defined benefits will increase the cost and complexity of achievements, so grouping them in coherent categories will be of importance.

Design the Projects Dossier

The projects dossier is comprised of the Vision Statement, blueprint, benefit profiles, and benefits maps. It represents the whole programme’s approach and how it will deliver the desired outcomes.

Identify Tranches

Projects and activities in the projects dossier are scheduled together to display their timescales and dependencies. The delivery of the programme is built into tranches, which reflect the progressive refinements of the relevant documents.

Early tranches can be designed to explore and prove, or disprove, different approaches to achieve the vision.

Design the Programme Organisation

The organisation for directing, managing, controlling, and supporting the programme has to be designed. Each role will need to be carefully defined with specific accountabilities, responsibilities, and tasks, as well as the required skillset for the role.

Training should be planned to ensure every person has the sufficient expertise in their field, and conflict resolution roles should be put into place to resolve any uprising issues related to resource allocation and sharing.

Consolidate the Programme Definition

Once all the relevant information in the Defining a Programme phase has been produced, it cannot be consolidated, either as a complete set of information with an executive summary, or just a summary that will reference other detailed documents.

Preparation for the First Tranche

It is suggested not to prepare for all tranches in advance, as it may lead to a waste of time and resources in case of the premature closure of a programme.

In order to prepare for the first tranche:

Prepare to establish the programme’s governance and organisation Specify the physical environment and infrastructure required for the management of

the next tranche Develop plans to establish the governance and organisational structure These steps

should be repeated for each tranche.


Approval to Proceed

With the programme’s definition assembled, and the produced information summarised and consolidated, the approval to proceed must go through a four-stage process:

Senior Responsible Owner must approve all documentation, the programme’s governance, and its business case

The Sponsoring Group must then endorse the programme formally, confirming that it meets expectation and requirements

An unbiased, objective, and independent review takes place of the business case The Sponsoring Group must then give another approval on behalf of the organisation

to proceed with the programme, including their commitment of any required investment

EXERCISE

From what you have learned throughout this workbook, demonstrate your knowledge on the previous sections and show how they are integrated into Defining a Programme.


Managing the Tranches

Primarily the responsibility of the Programme Manager, the process of managing the tranches implements the governance arrangements for the programme to each of the tranches.

The activities contained within this process are applied in alignment with the previously defined strategies and plans which would be accepted towards the end of the defining a programme process.

Establishing the Tranche

Programme Organisation – All programme organisation roles are now agreed and visibly defined (SRO, PM, and BCM)

Business Change Team – Appropriately involved and equipped for the transition, assisting operational staff

Programme Office – Offering skills and resources where appropriate Support for Governance – Collection and investigation of data will support the

governance of the programme, ensuring valuable feedback Physical Environment – Buildings, facilities, services, and tools that are vital to

support the programme should be established Communications – With the programme moving into the delivery phase, raising

awareness of the programme and its effects is crucial

Direct Work

This covers much of the day-to-day work schedule of the Programme Manager, with tasks comprising:

Appointment of product delivery organisations Programme risk workshops Programme reporting Dealing with project exceptions Managing the programme and project teams

Manage Risks and Issues

After a preliminary risk assessment for a tranche, the aggregated risk for that tranche should steadily decline.

As a transition proceeds, the open risks will most likely be only related to the transition itself. Any patterns noted conflicting these should be considered causes for concern and should be inspected.

Undertake Audits and Assurance Reviews

The programme must ensure that the correct mechanisms have been implemented to assess the performance of its projects and processes. © The Knowledge Academy 2020 124

Once the transition is complete, new systems and practices must be rooted into the system. This is the Transformational Flow activity that activates activities in the quality and assurance plan.

Maintain Information and Asset Integrity

Configuration management should be in place from the start in order to track the volume of information collected during the programme’s early stages.

These configuration baselines must be updated at the end of each tranche.

Manage People and Other Resources

Typically, at the end of a tranche, people get increasingly apprehensive as they are going to have to change the way they do their work.

It would be beneficial to have a support system in place to assist staff as they prepare for transition in their new roles and use of new systems.

Monitor, Report, and Control

The arrangements defined in the monitor, report, and control strategy are applied and used to control progress. This necessitates the attention of the SRO or the Programme Board for interventions and implementations. A key aspect of control is to ensure that the blueprint, and the delivery of new capabilities defined within it, remain internally consistent and coherent.

Transitions and Stable Operations

Once the outputs have been delivered by each project, and new capabilities established, utilise the transition plan prepared earlier in the tranche to initiate the transition.

The start of said transition should be signified by an event authorised by the SRO. Performance measures should be tracked to make sure that operations progress to a stable state and do not drift back to the old ways of working.

This is also where fallback plans should come into place, in case performances are outside the projected acceptable deviations.

Prepare for Next Tranche

Increasing clarity about the programme’s way forward should be prevalent at the end of each tranche. The programme’s business case will need to be refined as the plans for the next tranche unfold. A focus on change that is working well, and reducing what is not, should be imperative at this stage.

End-of-Tranche Review and Close

The end of a tranche is reached when all the planned capabilities have been delivered and transitioned into operational use. A full review should be carried out at the end of each tranche, assessing the ongoing viability of the programme as a whole and ensuring that the delivery options and strategy remain optimal. Programmes should only be allowed to


continue if it is still viable, and this will be gleaned from the review. The business case, benefits, and benefits management approach should all be reviewed as well, with the BCM planning a post-end-tranche review to assess how well the transition has gone.

EXERCISE

From what you have learned throughout this workbook, demonstrate your knowledge on the previous sections and show how they are integrated into Managing the Tranches.


Delivering the Capability

The programme manager is responsible for the coordination and management of the projects.

This is achieved through the process known as delivering the capability. The Programme Manager will deliver the blueprint using this management process.

Start Projects

The Programme Manager is responsible for appointing key project roles (Project Manager, Project Executive), ensuring the right individuals are in charge.

Each team in the projects must be fully aware, and able to understand, the project brief, context of blueprint, tranches, benefits, and project management standards.

Project briefing should proceed as follows:

1. Identify the projects started by the programme 2. Confirm how the projects fit into the big picture of the programme 3. Make sure that projects are aware of interdependencies with other projects 4. Explain how the projects’ outputs will be utilised in transitions, acceptance criteria,

and benefits realisation 5. Use information from Defining a Programme to provide projects with guidance on

quality, reporting, exceptions, and escalation

Briefing Projects



Align Projects with Benefits Realisation

When projects are initiated within the programme, the project briefs should be aligned with the relevant benefit profiles and the benefits realisation plan. Responsibility for ensuring that the projects deliver capability in alignment with benefits realisation lies with the Programme Manager.

A member of the Business Change Team may be present in the project board to represent their team in the day-to-day decision-making of the project. The BCM will need to sign-off that the project’s outputs will provide the capability to deliver the required outcomes and benefits, as well as the project’s plan delivering in time to meet the transition agreements.

Align Projects with Programme Objectives

This is a constant activity throughout the programme for all of its projects. Initial alignment is achieved through the project brief, and then maintained through reporting lines between project and programme.

The Programme Manager will sign-off the project plan based on the proposed outputs and its capabilities meeting the requirements from the blueprint. They would also seek that dependencies have been identified, understood, and managed effectively.

Governance: Manage and Control Delivery Monitoring and Controlling Progress

Projects are monitored by focusing on areas that are key to the programme: Outputs – Project outputs meet the requirements of their customers Timely completion – Adhering to delivery forecasts, reporting exceptions Estimates, costs, and benefits – Estimating the contribution to benefits realisation Resources – Confirming suitability, availability, and supplier performances Scope – Required changes, formally managed to avoid scope creep

The Programme Manager will need to oversee a project’s progress, obtaining suitable information for benefit reviews and regular project assessments.

Any escalations and exceptions will need to be dealt with by the Programme Manager, as well as the dependencies and interfaces between projects. A view to the full-scale operational environment is crucial to ensure the smooth running of multiple project outputs in order to achieve the desired benefits.

Managing Risks and Resolving Issues

Any unforeseen situations that may possibly threaten the programme must be recognised and dealt with by the Programme Manager. A project’s risks are identified from their own perspectives, and, if appropriate, escalate these to the Programme Manager.

Guidance for risk management and issues should be described in the project brief, and for programmes, rules are contained in the risk management strategy and issue management strategy.


Close Projects

As a project prepares for closure, there should be a formal delivery of the project’s outputs to the programme.

For a project to successfully close its outputs, it must meet the acceptance criteria defined during the project start-up.

Expected benefits may not be realised if the combined outputs from projects do not support an effective transition. A post-project review should be carried out to assess the realisation of benefits, and should be scheduled to fit into the programme’s review as well.

EXERCISE

From what you have learned throughout this workbook, demonstrate your knowledge on the previous sections and show how they are integrated into Delivering the Capability.


Realising the Benefits

The business change manager is responsible for integrating the outputs from the projects into the operational environment and thereby generating the expected benefits.

Realising the benefits identifies three distinct sets of activities which comprise this process. These activities are as follows:

Manage pre-transition, incorporating the analysis, preparation, and planning for the business change

Manage transition, incorporating all of the activities involved in the handover and integration of the outputs into the business environment

Manage post-transition, including the measurement of progress and the benefits

Managing Pre-Transition

Benefit realisation is the central purpose of the programme, so reliable and relevant measurement processes are required to ensure it occurs. These are outlined in the benefit profiles and benefits management strategy.

Information produced with managing benefits realisation should pass the following tests:

Currency – Capturing recent information, do not use out-of-date data Accuracy – Cross-check the data with a second indicator from another source Relevance – Only report information that is relevant

The Business Change Manager is responsible for carrying out these tests. Any monitoring and collaboration with projects will need to be benefits-focused, with the main emphasis on whether they will be able to produce the desired benefits for the programme. It is the responsibility of the BCM, and their team, to be fully engaged with project teams and business operations to readily prepare for the transitional change. This includes updating all benefits and transition-related documentation. They must assess viability before implementing any changes, and it is the final say of the BCM to determine whether the delivered capability meets the requirements of the business.

Manage Transition

As a project approaches its conclusion, the transition plan is revised and updated to reflect activities during transition. The transition plan should be followed as closely as possible and treated as a route map for implementation of change.

Managing the transition often necessitates careful consideration of personal concerns from all staff, typically related to the work environment and what the changes will mean to them. A comprehensive change plan should be put in place to circumvent disruptions to the transition, and the BCM must provide clear and concise directions throughout the change.

Before the transition takes place, outputs from projects must be complete, verified, and, ready for operational use. © The Knowledge Academy 2020 130

There must be no unresolved risks and issues, contingency plans should be put into place, and an arrangement for temporary transition management should be prepared. With the new arrangements in place, the transition should then be reviewed, with any follow-on actions enacted and effective communication produced throughout. It will take some time for outcomes to be fully realised, but when they are, it is critical to acknowledge this through the programme communications plan.

Managing Post-Transition

Reporting on benefits realised should be part of the end-of-tranche review, and any other planned benefit reviews. In order to sufficiently collect the required information, there may be a delay between tranches.

To ensure that the business will not regress into using old ways of working, the BCM must revoke access to legacy working practices and systems. Any newly formed ideas or recently arisen problems must be emphasised and recognised, then forwarded to the Programme Manager for reflection.

The benefit profiles and benefits realisation plan will need to be updated and released in accordance with the arrangements defined in the benefits management strategy.

This also ensures that stakeholders are pleased with the improvements.

EXERCISE: From what you have learned throughout this workbook, demonstrate your knowledge on the previous sections and show how they are integrated into Realising the Benefits.


Closing a Programme

The purpose of each of the processes within the Transformational Flow is to ensure that each programme is approached from a management perspective in a consistent manner. The closing a programme process is applied at the end of the programme to ensure that the work of the programme is completed and that any follow-on support and actions are in place to ensure the ongoing realisation of the benefits.

Confirming Ongoing Support

After closure, the rooted changes must be able to continue with smooth running operations and working practices. Additionally, all stakeholders must be kept up-to-date with the programme’s closure and its result.

Confirm Programme Closure

In order to formally confirm programme closure:

The business case has been fulfilled All projects have been completed adequately Business performance is steady Any remaining handover or transition activities required have been defined and

assigned to relevant business operators

The SRO will propose the closure to the Sponsoring Group, and if the Sponsoring Group is satisfied with the outcomes, then they will authorise the recommendation to confirm the closure.

Notify Programme Closure

When the Programme Manager is confident that the programme will be closed, then all of the stakeholders and Programme Office should be informed.

Review Programme

The performance of the programme must be assessed and evaluated to detect any lessons learned.

The delivery of the blueprint, the realisation of benefits, and the achievements of the programme’s business case should be taken into account when reviewing.

Update and Finalise Programme Information

Programme information will need to be updated to make sure that any residual risks, issues, or outstanding actions have been suitably dealt with. The liability for this lies with the SRO. For future programmes, the strategies, plans, and boundary documents must be reviewed to measure their effectiveness.


Provide Feedback to Corporate Governance

Since programmes are developed out of strategic needs, strategists in corporate governance require feedback in order to support the programme with developing more strategic decisions.

Disband Programme Organisation and Supporting Functions

The programme’s infrastructure is disbanded, with resources being released from the programme.

This is imperative, so these resources can then be allocated to other roles or programmes. At this point, any contracts must be finalised or handed over to the appropriate business management team.

EXERCISE

From what you have learned throughout this workbook, demonstrate your knowledge on the previous sections and show how they are integrated into closing the Programme.


CASE STUDY: Manchester City Council Housing

In 2006, Manchester City Council (MCC) embarked on an ambitious programme to improve operations in order to meet the Government’s new social housing standard: Decent Homes 2010. In order to be decent, a home should be warm, weatherproof, and have reasonably modern facilities.

In 1997, there were 2.1 million houses owned by local authorities and housing associations that did not meet this standard. Across the UK, local authorities had a £19bn backlog of repairs and improvements.

Many councils will resolve the challenge to meet the new standard by using existing resources (which, per property, are substantially higher than in 1997) and retain both ownership and management of their stock. For those that need extra funding to meet the required standard, the Government outlined three options designed to deliver improved performance and services, while ensuring the extra money will be spent cost effectively.

The three options are:

Option 1: Setting up an Arm’s Length Management Organisation (ALMO). An ALMO is a new company created by the council to manage its homes and make them decent. Although the council still owns the homes, it is free to focus on more strategic housing functions. If the Housing Inspectorate rates the ALMO as ‘good’ or ‘excellent’ the Government makes extra money available in order to make the homes decent.

Option 2: Using Private Finance Initiative (PFI) to encourage extra private sector investment. PFI enables the Government to provide financial support for partnerships between the public and private sectors. Typically, PFI contracts last for thirty years. Although the council still owns the homes, in most cases, the private sector partner will provide the management services.

Option 3: Transferring all or some of the stock to a Registered Social Landlord (RSL). RSLs or Housing Associations who can borrow money from banks and building societies in order to make the transferred houses decent. The council is free to focus on more strategic housing functions.

Because MCC was required to meet the standards of the government’s new Decent Homes directive and improving housing for residents, getting its workforce realigned so that it could deliver to these requirements and beyond, was a top priority.

It initiated a programme that affected 1000 staff in the Contracting Services department who were transferred to local housing companies and a new joint venture company – Manchester Working Ltd. The new organisation was formed to deliver direct benefits to MCC’s residents through improved quality of service and to provide a new working environment for staff. The company was set up as a joint venture between Morrison Facilities Services, which owns 80%, and MCC, which owns 20%.


This partnership brought together the knowledge and skills of the Council’s workforce with Morrison’s commercial expertise and ability to secure work in new markets. The company set out to meet clients’ changing requirements, and continually improve service quality and competitiveness.

Manchester Working Ltd successfully commenced its operations with an order book of over

£310m. The programme commenced in November 2004 and concluded in September 2006

– it consisted of two key phases, included five projects, and six work streams in the portfolio.

Turner & Townsend, construction and management consultants, were appointed to implement the programme for MCC, maintaining business as usual, while delivering the transfer of employees to the new organisations, launching the new company, and managing a potential residual liability of £27million.

‘The key driver behind the programme was risk mitigation,’ says Jim White, Director of Turner & Townsend. ‘MCC provides a high performing service and it supports challenging aspirations. It won Office of the Deputy Prime Minister (ODPM) approval for its Housing Investment Options strategy for a combined solution, which transferred 98% of the Council’s housing. This solution involved a Private Finance Initiative (PFI) partnership, an Arm’s Length Management Organisation (ALMO), and a Registered Social Landlord (RSL).

But, the impact of transferring 50,000 houses to the new organisations (ALMO/RSL’s/PFI’s) identified a residual risk liability of £27m, if the Council could not secure long term certainty of work for the 1000 employees who provided direct and support services to these houses.’

MCC’s Treasurer could only support this risk if there was a robust strategy in place to manage it. White says, ‘A programme of this scale needs to be underpinned by a sound, reliable method, and OGC’s Managing Successful Programmes (MSP®) enabled us to deliver it on time and was fully endorsed by political members, central government, staff, trade unions, and the new private sector partner. It also interfaced well with MCC’s own award winning PRINCE2® derivative, and with ISO9001.’

‘MCC’s tailored version of PRINCE2® was working well,’ White explains, ‘but the internal staff had not deployed it to deliver such an extensive change programme. Turner & Townsend wanted to be more than just a consultant to MCC; we were able to bring a thorough knowledge of MSP® to the table. This robust framework allowed us to manage the risk while optimising the outcome and benefits.’

Over 550 blue and white-collar council staff transferred to the new company in 2006, with their terms and conditions of employment preserved under the UK’s TUPE regulations.

These regulations preserve employees’ existing terms and conditions in a new, successor organisation.


A key part of the success of the programme was of course communicating with those whose roles would be affected. Key stakeholders were identified as:

Employees Customers and service users Executive Members and Councillors Chief Executive/Management Team Trade Unions Manchester Housing Services Audit Commission and District Auditor ODPM

With such a large number of people being affected by, or having an opinion about, the programme, stakeholder engagement was key. An elaborate communications programme was devised by the Senior Responsible Owner (SRO), including bespoke communications with the different groups.

‘The role of the SRO is absolutely key to effective communications,’ White says, ‘because we were looking for a ten year partnership with bidders; we needed the involvement of the strategic management team throughout. The SRO is vitally important because the responsibility for ensuring the programme meets it objectives lies with them, so they need to be aware of all the key stages in the plan.’

The programme was kept on track with Gateway™ Reviews: ‘We wanted to ‘future proof’ the programme, so although Gateway Reviews always involve extra documentation, we were well prepared. We had lots of stakeholder involvement and we were milestone-driven, so it was important that we stuck to our commitments. The suite of documents we needed for the reviews were already part of what we were doing within the Programme Office. The government’s local government project delivery specialist 4ps, cited elements of our programme documentation as exemplary during the review.’

Turner & Townsend is now using MSP® regularly for business change programmes. White says: ‘The 2007 edition of MSP® focuses on benefits and it’s a very effective method used by all of our consultants on major programmes. Currently we are training around 40 consultants a year with Provek, our preferred MSP® training provider. We believe that MSP® is a good framework and it gives you credibility with key stakeholders such as the Chief Executive. You need to be able to look them in the eyes and see their commitment to the programme.’

John Lorimer, Capital Programme Director, Corporate Services, Manchester City Council concludes: ‘The joint venture has been operational for 18 months and has delivered the anticipated throughput of work. Employees and residents – along with the twenty-four apprentices who were taken on – have now become well integrated into the new service and will sustain the long term future of Manchester Working Ltd.’


‘It is clear the well-ordered and structured procurement process has delivered the Council’s brief. Working together with our partners has again proved successful with Turner &

Townsend being a valued member in the team,’ Lorimer says.


instructions to follow 1. 2. 3. · managing successful programmes (msp®) is a best-practice...

Documents