thomas walenta, pgmp, pmp, pmi fellow. projects & programs are two different animals, don't...
TRANSCRIPT
Projects & Programs are two different animals, don't underestimate the gap
December 2014, Moscow
Thomas Walenta, PgMP, PMP, PMI Fellow
Not typical attributes of project managers:
Strategy alignment, positive towards change, strategy execution
Which profession has these attributes?
A Study reveals a disturbing reality: even among projects that are delivered at least 90% on time & on budget, majority fails to
deliver 'business expectations'.
Business outcome expectations include
Delivery quality
End-user adoption
Business case attainment
Sponsor satisfaction
Challenged
53% Succeeded
29%
Failed
18%
Corporate Executive Board (CEB), www.pmo.executiveboard.com, 2009 Study 'Project Managing Business Outcome'
The top-performing projects in terms of budget and schedule compliance attain on average only 53% of their business outcome expectations.
What did the project managers miss?
Scope, budget, milestones = business benefits?
Successful project delivered
product in time & budget
Successful
benefits and created value
A benefit is the 'desired result of an initiative undertaken
to meet a need or solve a problem'
Are Project Managers educated to transform business goals to requirements and benefits?
Project Manager‘s curriculums & certifications focus on
– Magic triangle scope/quality – cost – time
– Supporting processes like risk, quality, procuring
– Soft skills to lead a team
– Organizational skills
– Technology
cost time
scope/quality
How about strategic alignment, benefits realization and C-Suite communication?
PM Standards and Methodologies provide no real help to Project Managers in delivering benefits
• Benefits are specific to an industry / a company
• Benefits delivery is often seen as a primary task of middle management, consulting companies or not addressed specifically
• Word 'Benefits' is found 24 times in PMBoK Guide 5th edition, but 129 times in PgM Standard 3rd edition, having benefits management as key domain and related processes and artefacts
• Prince2 mentions benefits in the business case and benefits review plan ('Managing Successful Programs' MSP covers benefits management)
• IPMA ICB does not have a focus on benefits management, offers Success Criteria for projects
• ISO 21500: projects contribute to benefits, which are created by operations
? Stake-holders
(sponsors)
Stake-holders (users)
Strategy
How to successfully to fulfill business expectations = deliver benefits to stakeholders?
Environment (society, jurisdiction, regulators, market etc) R
eq
uire
me
nts
Be
ne
fits
Program
Stake-holders
(sponsors)
Re
qu
ire
me
nts
Stake-holders (users)
strategy
Project A deliverable
Scope Cost Time
Be
ne
fits
(c
on
so
lidate
d)
Project B deliverable
Scope Cost Time
Discrete benefit
Benefits Identification
Benefits Analysis & Planning
Benefits transition
Benefits sustainment
Benefits Delivery
Understand what has to be done in addition to project management - and how it can be accomplished!
Component C Discrete benefit
Environment
Stake-holders
(sponsors)
Stake-holders (users)
Strategy
How to successfully to fulfill business expectations = deliver benefits to stakeholders?
Environment (society, jurisdiction, regulators, market etc) R
eq
uire
me
nts
Be
ne
fits
Program Benefits Management transforms stakeholder requirements into sustained benefits
Based on PMI Standard for Program Mgmt, 3rd Ed. & IBM's WWPgMM
Benefits Identification
Benefits Analysis & Planning
Benefits transition
Benefits sustainment
Benefits Delivery
Business Case Program
Mission Define CSFs Measurement
Structure
Benefits Realisation
Plan
Define Program
Components Define KPIs Performance
Baseline
Start, monitor & transition
components
Evaluate KPIs
Monitor organizational environment
Program definition Program benefits
delivery Program closure
Transition Plan Verify
Transition
Operational tasks
Program Lifecycle
Stake-holders
(sponsors)
Stake-holders (users)
strategy
Who and what influences requirements? Who can control requirements? Project or Program Manager?
Project deliverable
Scope Cost Time
Discrete benefit
Environment
Be
ne
fits
Project Program Portfolio
Objective Create previously agreed
deliverables
Achieve previously agreed
and defined strategic
objectives, realize business
benefits
Permanently attempt to
reach the mission of the
organization
Duration Finite, short term Temporary, might be
flexible
Infinite
Focus of
Mgmt
Scope and deliverables Value and Benefits
Stakeholder Engagement
Interfaces and Integration
Prioritization of Projects &
Management of Resources
Decision-
making
In phases, based on
milestones/gates
In stages/projects, based
on benefits realization
In periods, based on
management cycle
Sponsor Program Manager or
Project Sponsor
Strategic Objective Owner
(Business Exec Sponsor)
Organization (CEO, COO)
Success In scope, quality, budget,
time & stakeholder
satisfaction
Achieve benefits & satisfy
stakeholder needs
Aggregate investment
performance
What is it
about
Efficiency Effectiveness Agility
Differences between projects, programs and portfolios
Program Project
Plan Control Deliver
Scope / Quality
Time Cost
Understand Create Achieve
Strategy / Benefits
Governance Stakeholders
Program Management is outward focussed while Project Management mainly deals with project internals
Capabilities of a successful program manager are different to those of a good project manager
PMI Congress 2003 – Europe Paper
Pellegrinelli, Partington and Young
Example: How I became a Program Manager
2001/2: working as a multi project manager for an investment bank's IT
2002: was asked for a project assessment on a troubled EU SAP rollout (my first encounter with SAP)
Issues identified: parallel rollouts, productive systems and SAP operations unaligned Insufficient communication with stakeholder groups
Proposed a program management system (PMS) Key attributes: enable integration and specific communication interfaces And … was asked to implement it (took 3 months and about 10 people)
Main issues identified: - Unaligned parallel rollouts, productive systems and SAP operations - Insufficient communication with stakeholder groups
Was then asked to run the remaining SAP rollouts as a program (UK, eastern Europe, Russia, end: 2008)
SLF4
Relationship
Management
Specialist
Team
Program Management
SLF3
Organizational
Change
Management
SLF2
Architectual
Solution
Board
SLF7
Test &
Transition
Management
SLF5
Quality
Assurance
/ Risk
SLF6
Program
Mgmt
Office
SLF8
Resource
Management
Oper-
ations
Applic.
Mainten.
User
Help
Desk Project 4
.........
Project 1
Operational Layer Functions
(Projects, Teams, Production)
Strategic Layer Functions
Project 3 Project 5
Project 6 Project 2 Enduser
Training
Team
Sponsors
Stakeholders,
e.g. Users Business
Steering
Committee
A Program Management System (PMS) ensures the linkage between involved and affected stakeholder groups and the integration among
projects and with ongoing tasks
SLF1
Business
Strategy
Source: PMI Global Congress Toronto 2005 Paper Th. Walenta
Transition Steps from Project to Program Orientation (by Liam Dillon, [email protected])
1. Delivery >>> Business
2. Schedules >>> Dependencies
3. Reporting >>> Escalation
4. Scope >>> Strategy
5. Crisis >>> Conflict
6. Team >>> Governance
7. Transfer >>> Transition
8.Salary >>> Challenge
9. Stress >>> Relaxation
10. Project Triangle >>> Program triangle
Change the thinking