introduction to program management james j. jiang university of central florida, u.s
TRANSCRIPT
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Introduction to Program Management
James J. Jiang
University of Central Florida, U.S.
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Organizational Maturity in Project-based Organizations
Definition: “the extent to which an organization practices organizational project management (OPM)”Extent implies “levels”Lets consider questions regarding different levels of
successWas the project done right?Was the right project done?Were the right projects done right?Were the right project done right, time after time?
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Introduction
Financial portfolioRole of top management in creating
purposeful project investmentsLink projects to business policy and
organizational strategyTerms portfolio and program are often used
interchangeably
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Why need Programs?
In order to allow for autonomous projects on the one hand side
But on the other hand side to assure the benefits of organizational learning, economies of scale, and networking synergies in a program,
A specific program-organization is required.
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Program Definition
A program is a temporary organization for the performance of processes of medium and high complexity, which are closely coupled by common overall objectives. (Gareis 2000)
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Program Advantages
The advantages cited by organizations using programs include:greater visibility of projects to senior management and
more comprehensive reporting of progress at higher levels
better prioritization of projects; more efficient and appropriate use of resources; projects driven by business needs; better planning and coordination; explicit recognition and understanding of dependencies
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Program Examples
Typical programs examples: the development of a “product family“ (and not
of a single product), the implementation of a comprehensive IT-
solution (such as SAP), the reorganization of a group of companies in a
holding structure, and large investments, such as an oil platform.
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Comparison of Programs and Projects
Program Project
An organizing framework A process for delivering a specific outcome
May have an indefinite time horizon
Will have a fixed duration
Evolve in lines with business needs
Has set objectives
May involve the management of multiple related deliveries
Involve the management of single deliveries
Focus on meeting strategic or extra-project objectives
Focus on delivery an asset or change
Program manager facilitate the interaction of numerous managers
Project manager has single point responsibility for project’s success
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Major Perspectives of Program Management
Program management (Pellegrinelli 1997)
The technical and planning aspectsScarce resource managementEstablishment of appropriate information
systems
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Program configurations
Three archetypal configurationsPortfolioGoal-orientedHeartbeat
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Portfolio programs
Include relatively independent projects but have a common theme.
Emphasis is efficient resource utilization and leveraging existing knowledge or skills.
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Goal-oriented programs
programs which enable the management of initiatives or developments outside the existing infrastructure or routine.
provide a means of dealing effectively with situations where uncertainty prevails and learning is a prerequisite to making progress.
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Heartbeat programs
Enable the regular improvement of existing systems, infrastructure or even business processes,via increments to functionality or occasionally an
overhaul of the system or facility itself.Minimize disruption to operations, Maximizing the amount of new functionality or
capability delivered to the business. E.g.: Projects related to core IT systems.
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Program Management: Classification in IT Consulting firms
Programs by technology/ platformPrograms by clientPrograms by business vertical
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Program Roles and Structure
Typical program roles include: program owner, program manager, and a program coordination team, project ManagerUpper Management
Typical program communication structures are program owner meetings and meetings of the program coordination team .
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Program Manager’s Role and Responsibilities
Program Manager
Effectiveness Coordination Efficiency
Prior to project execution
Identification of business opportunities
1. Resource planning
2. Synergy identification
Resource selection
Project execution
Identification of bad projects
1. Participation in steering groups
2. Prioritization
3. Collection & aggregation of reports
1. Initiate reviews
2. Handling of reviews
3. Coaching of project managers
4. Process Improvement
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Issues in Program management
1. Project selection
2. Maximizing value of project portfolio
3. Balancing/prioritizing project portfolio for resource allocation
4. Best practices for managing project portfolios
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Project selection process
Criteria for project selectionProduction factors
Time until ready to installImpact on business processes
Marketing factorsSize of potential market for outputConsumer acceptance
Financial factorsPersonnel factorsAdministrative and misc factors
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Selection models
Non-numeric modelsSacred cow, operating necessity, competitive
necessity
Numeric modelsPayback, NPV, ROI
Scoring modelsWeighted factors models
Risk models
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2. Maximizing value
Allocating resources for maximizing value of portfolio in terms of firm objective
Expected commercial value (ECV)Function of (NPV, Strategic importance, probability of technical/commercial success, development costs, commercialization costs)
Productivity index (Similar to ECV but also considers R&D expenditure remaining)
Dynamic rank ordered listRank projects according to importance, NPV, internal rate of return and cal mean
Scoring modelsscale 1-5 on reward, strategy fit, strategic leverage, prob of commercial success, technical success
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Balancing project portfolioBalancing high-risk breakthrough R&D projects
versusLow-risk projects that produce near-term returns
through incremental improvements to existing products
Perform high quality analysis of each project Identify appropriate level of problem: technology,
portfolio, strategyGenerate creative, achievable alternativesDevelop reliable informationEstablish values and trade-offs: time and riskApply logical reasoningBuild commitment to action
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3.Balancing project portfolio
Plot projects on a portfolio grid according to technical difficulty and commercial potential
4 quadrantsBread and butter projects (low % and low
value)Oysters (low % of success but potential value)Pearls (high success, high value)White elephants (low potential value, long term)
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4. Best practices in PPM
Senior management buy-inIdentify PPM focus areas and provide proof of
conceptDevelop governance process for projects
Makes PPM implementation easierUse proven PPM toolsDevelop a “common currency” to evaluate
projects based on contribution to business objectives
Optimize portfolio against constraints
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Comments?
How does your organization select an project? Is there a common goal among the selected
projects? Has the organizational goal been supported (i.e.,
aligned with) by those selected projects?Do your employees understand the differences
between “project management” vs. “program management”?
Do your organization implement the best “program management” practices?