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CODE OF PRACTICE FOR PROGRAMME MANAGEMENT IN THE BUILT ENVIRONMENT Manage a construction programme from start to finish with this up-to-date guide The maturation and proliferation of project management principles has been one of the most important stories in recent business history. So widely has project management spread throughout the corporate world that it has now given way to a similar discipline, programme management, designed to align, coordinate and manage a number of related projects as a whole. In the construction industry particularly, programme management can deliver benefits that would not have been possible to realise had individual projects been managed independently. Produced by the Chartered Institute of Building (CIOB), the revised Code of Practice for Programme Management in the Built Environment provides a comprehensive overview of the tools required to deliver such benefits, and how they are applied in construction programmes. A natural complement to the CIOB's popular Code of Practice for Project Management for the Built Environment, it is now fully updated to reflect new insights and best practices. Readers of the second edition of Code of Practice for Programme Management in the Built Environment will find: * Theoretical and practical insights derived from research and experience * Coverage of setting up programmes successfully so that teams feel confident to deliver the final outcome * Guidelines for implementing programme management for the built environment Code of Practice for Programme Management in the Built Environment is ideal for programme management and project management professionals involved in this industry and in particular, contractors and client organisations, as well as for advanced undergraduate and postgraduate students in construction project management and other related disciplines. The Chartered Institute of Building is the world's largest professional body for construction management and leadership. It has a Royal Charter to promote the science and practice of building and construction for the benefit of society. Members across the world work in the development, conservation, and improvement of the built environment.

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Table of Contents

Cover

Table of Contents

Title Page

Copyright

Foreword

Acknowledgements

List of Figures

Working Group (WG) of the Code of Practice for Programme Management

Glossary

1 Programme Management in Context

1.1 Introduction

1.2 Applying programme management in practice

1.3 Programme organisation

Notes

2 Stage A: Inception

2.1 Purpose of this stage

2.2 Key activities of this stage

2.3 Key roles and responsibilities of this stage

3 Stage B: Initiation

3.1 Purpose of this stage

3.2 Key activities of this stage

3.3 Key roles and responsibilities of this stage

4 Stage C: Definition

4.1 Purpose of this stage

4.2 Key activities at this stage

4.3 Key roles and responsibilities of this stage

Note

5 Stage D: Implementation

5.1 Purpose of this stage

5.2 Key activities of this stage

5.3 Key roles and responsibilities of this stage

6 Stage E: Benefits Realisation and Transition

6.1 Purpose of this stage

6.2 Key activities of this stage

6.3 Key roles and responsibilities of this stage

7 Stage F: Closure

7.1 Purpose of this stage

7.2 Key activities of this stage

7.3 Key roles and responsibilities of this stage

Appendix A: Programme Delivery Matrix

A.1 Background

A.2 Use of the Programme Delivery Matrix

Note

Appendix B: Tools and Techniques

B.1 Background

Appendix C: Templates

C.1 Vision statement

C.2 High‐level programme scope

C.3 Programme mandate

C.4 Programme brief

C.5 Business case

C.6 Monthly programme report

C.7 Programme highlight report

C.8 Benefits profile

C.9 Tracking benefits: benefits‐monitoring

C.10 Programme closure report

Note

Appendix D: Key Roles: Skills and Competencies

D.1 Programme manager

D.2 Programme business change manager

D.3 Programme benefits realisation manager

D.4 Programme financial manager

D.5 Head of programme management office

D.6 Programme risk manager

D.7 Programme scheduling manager

D.8 Programme cost manager

Bibliography

Past Working Group of the

Code of Practice for Programme Management

Index

End User License Agreement

List of Illustrations

Chapter 1

Figure 1.1 Programme Delivery Triangle.

Figure 1.2 Organisational interfaces in the programme context. Adapted from ...

Figure 1.3 Six themes for programme management in the built environment.

Figure 1.4 Programme, projects and benefits.

Figure 1.5 CIOB Programme management structure.

Figure 1.6 Typical organisations.

Chapter 2

Figure 2.1 Key artefacts: Stage A (Inception).

Figure 2.2 Programmes and their environments.

Figure 2.3 Overall strategic approach, UK Olympics.

Figure 2.4 Strategic change and strategic objectives by change type.

Figure 2.5 Strategic objectives alignment.

Figure 2.6 Typical programme organisation.

Chapter 3

Figure 3.1 Key artefacts: Stage B (Initiation).

Figure 3.2 Benefit categories.

Figure 3.3 Benefit delivery in three stages.

Figure 3.4 Example of representation of benefits realisation over time.

Chapter 4

Figure 4.1 Key Artefacts: Stage C (Definition).

Figure 4.2 Programme controls.

Figure 4.3 Full‐year programme expenditure example.

Figure 4.4 Programme delivery plan.

Figure 4.5 Stakeholder map.

Figure 4.6 Ability to impact and commitment to the change.

Figure 4.7 Reference Class Forecast.

Figure 4.8 Programme schedule with risks.

Figure 4.9 Change, risk and reporting.

Figure 4.10 Financial management roles and responsibilities.

Figure 4.11 Programme budget for transport programme (example).

Figure 4.12 Waterfall chart (programme funds example).

Figure 4.13 Sankey chart (programme funds example).

Figure 4.14 Delivery/project performance – programme EVM summary.

Figure 4.15 Earned value metrics.

Figure 4.16 Programme fiscal year performance (annual spend forecast).

Figure 4.17 Four‐year programme cost projection.

Figure 4.18 Reporting integration.

Figure 4.19 Invitation to tender (ITT), signed outline contract (SOC) plus v...

Figure 4.20 PMO structure, function and reporting.

Chapter 5

Figure 5.1 Key artefacts: Stage D (implementation).

Figure 5.2 Stage D: implementation.

Figure 5.3 Common construction procurement methods.

Figure 5.4 Measuring progress using S curves.

Figure 5.5 Data analysis on programmes.

Figure 5.6 Data collection on programmes.

Figure 5.7 Measuring progress on programmes.

Figure 5.8 Reporting on multiple projects in a programme.

Figure 5.9 Forecasting schedule information.

Figure 5.10 Programme monitoring and control.

Figure 5.11 Interface between programme and project reporting.

Figure 5.12 The need for independent analysis.

Figure 5.13 Correct use of graphics (example 1).

Figure 5.14 Correct use of graphics (example 2).

Figure 5.15 Programme time management.

Figure 5.16 Key points of contact.

Chapter 6

Figure 6.1 Stage E: Benefits review and transition.

Figure 6.2 Key artefacts: Stage E (Benefits realisation and transition).

Figure 6.3 Managing benefits realisation.

Figure 6.4 Benefits map Step 1: Mapping programme objectives to strategic ob...

Figure 6.5 Benefits map Step 2: Identifying and mapping benefits to programm...

Figure 6.6 Benefits map Step 3: Identifying business changes.

Figure 6.7 Benefits map Step 4: Mapping project outputs to benefits.

Figure 6.8 Benefits map Step 5: mapping the links between programme, objecti...

Figure 6.9 Organisation size over time for programme delivery.

Chapter 7

Figure 7.1 Key artefacts: Stage F (Closure).

Figure 7.2 Stage F: Closure.

Appendix B

Figure B.1 Stage review process.

Figure B.2 Fibonacci sequence.

Figure B.3 Example of planning poker.

Figure B.4 Manging using the concept of SPRINTS.

Figure B.5 Example of Kanban boards and time schedules.

Figure B.6 Programme time schedule.

Figure B.7 Example of burn‐down charts.

Figure B.8 Media wall example.

Figure B.9 Managing the programme scope.

Figure B.10 Three‐point estimate triangle.

Figure B.11 Estimation of uncertainty: illustrative example.

Figure B.12 S‐curve detailing the cumulative contingency requirement.

Figure B.13 Dataset example.

Figure B.14 Reference Class Forecasting using the manual method.

Figure B.15 Results of the manual method.

Figure B.16 Descriptive statistics (example).

Figure B.17 Frequency histogram (example).

Figure B.18 Percentiles calculation using excel.

Figure B.19 Reference class forecast (example).

Guide

Cover

Table of Contents

Title Page

Copyright

Foreword

Acknowledgements

List of Figures

Working Group (WG) of the Code of Practice for Programme Management

Glossary

Begin Reading

Appendix A: Programme Delivery Matrix

Appendix B: Tools and Techniques

Appendix C: Templates

Appendix D: Key Roles: Skills and Competencies

Bibliography

Past Working Group of the Code of Practice for Programme Management

Index

End User License Agreement

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Code of Practice for Programme Management in the Built Environment

 

Second Edition

 

 

 

 

This second edition first published 2024© 2024 John Wiley & Sons Ltd

Edition HistoryJohn Wiley & Sons Ltd (1e, 2016).

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, except as permitted by law. Advice on how to obtain permission to reuse material from this title is available at http://www.wiley.com/go/permissions.

The right of The Chartered Institute of Building to be identified as the author of this work has been asserted in accordance with law.

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Library of Congress Cataloging‐in‐Publication Data

Names: Chartered Institute of Building (Great Britain), author.Title: Code of practice for programme management in the built environment / The Chartered Institute of Building.Description: Second edition. | Hoboken, NJ : Wiley-Blackwell, 2024. | Includes bibliographical references and index.Identifiers: LCCN 2024003438 (print) | LCCN 2024003439 (ebook) | ISBN 9781394192434 (paperback) | ISBN 9781394192458 (adobe pdf) | ISBN 9781394192441 (epub)Subjects: LCSH: Building–Superintendence. | Project management.Classification: LCC TH438 .C626 2024 (print) | LCC TH438 (ebook) | DDC 658.4/04 – dc23/eng/20240212LC record available at https://lccn.loc.gov/2024003438LC ebook record available at https://lccn.loc.gov/2024003439

Cover Design: WileyCover Images: © Ashley Cooper/Getty Images; pyramid/line graphic ‐ created by Wiley ‐ concept provided by author

Foreword

The Code of Practice for Programme Management was first published in 2016 and, in that relatively short time, we have seen many challenging changes in the way that built environment projects are delivered.

This second edition is a natural development from the first edition and builds on the sixth edition of the Code of Practice for Project Management published in 2022, authored by two experts with UK and international expertise in this field.

The first edition of this Code of Practice defined a programme as:

A collective of related projects is coordinated to achieve desired benefits more effectively than when managing them as a group of individual projects.

This definition has been retained for the second edition.

The term ‘Built Environment’ has been retained as we continue to see projects that are not solely construction or development‐related. Some of the client sectors, for example, highways, rail, airports, shipping or nuclear are likely to incorporate projects that are not related to construction. Accordingly, I believe that this code has relevance to a very wide reader base, which goes beyond construction.

Six core themes have been identified as key to the life cycle strategy of the programme. These are 1. developing capability, 2. procuring value, 3. digitalisation and visualisation, 4. cultural identity and ethics, 5. sustainability and its governance and 6. platform thinking.

The need for programme management arises when benefits obtained in a coordinated manner are greater than the sum of individual project benefits obtained in isolation.

This need has continued to grow due to several factors, including being seen as a way to help transform the industry as a whole, which has continued to struggle with productivity, collaboration and innovation. In addition, it is seen as an opportunity to manage the availability of resources and skills in the industry and obtain wider beneficial societal change beyond solely the strategic objectives of the client organisation.

As this second edition was being prepared, society was experiencing major disruptions, including the pandemic, high inflation and a war on the borders of Europe. These global issues are influencing the energy supply. This is at the same time as environmental challenges and an ongoing emphasis on social value and sustainability.

All this points to a current and future operating environment that is more uncertain than we have experienced in recent times.

These changes provide a greater emphasis on the application of programme management becoming more dynamic, which requires actively organising and managing.

I believe the application of this Code of Practice can assist those responsible for programmes in this rapidly changing world. It will also serve as an important textbook reference in academia.

I thank all those involved in the production of this code who have offered advice and guidance as this edition was being written. My special thanks to those who have spent time reviewing and commenting on the work of the authors. I also thank colleagues at CIOB for their work in coordinating the numerous parts of the code.

Mike Foy OBE FCIOB MBA FCMI

CIOB President 2021/2022

Acknowledgements

I am delighted that the Chartered Institute of Building is publishing this updated version of the Code of Practice for Programme Management. As Past President Mike Foy mentions in his foreword, the built environment and construction sector are ever‐changing, and there is perhaps more need than ever to look to the role of Programme Manager, with their overview of work and the opportunity to anticipate potential changes.

The previous edition of this code of practice was ably steered by CIOB Fellows and other industry experts, who focused on producing a practical document for a discipline that is present in many different sectors. CIOB is a broad church, covering an impressive range of built environment sector roles and, in turn, this publication is intended for an audience of programme management professionals who are active across a range of industries.

The process to update this second edition of our Code of Practice for Programme Management reflects both the depth of expertise of the profession and the breadth of sectors it spans, with contributions from built environment specialists and other professional institutions providing their insights and expertise.

A list of participants and the organisations represented is included in this book. I want to take this opportunity to thank all the CIOB members who contributed their time in producing this revised Code of Practice for Programme Management. I also want to acknowledge all those who have supported our publications over the years – our community of members who contribute to our publications has always been generous in sharing their time and expertise.

Caroline Gumble

Chief Executive

Chartered Institute of Building

List of Figures

1.1 Programme Delivery Triangle

1.2 Organisational interfaces in the programme context

1.3 Six themes for programme management in the built environment

1.4 Programme, projects and benefits

1.5 CIOB Programme management structure

1.6 Typical organisations

2.1 Key artefacts: Stage A (Inception)

2.2 Programmes and their environments

2.3 Overall strategic approach, UK Olympics

2.4 Strategic change and strategic objectives by change type

2.5 Strategic objectives alignment

2.6 Typical programme organisation

3.1 Key artefacts: Stage B (Initiation)

3.2 Benefit categories

3.3 Benefit delivery in three stages

3.4 Example of representation of benefits realisation over time

4.1 Key Artefacts: Stage C (Definition)

4.2 Programme controls

4.3 Full‐year programme expenditure example

4.4 Programme delivery plan

4.5 Stakeholder map

4.6 Ability to impact and commitment to the change

4.7 Reference Class Forecast

4.8 Programme schedule with risks

4.9 Change, risk and reporting

4.10 Financial management roles and responsibilities

4.11 Programme budget for transport programme (example)

4.12 Waterfall chart (programme funds example)

4.13 Sankey chart (programme funds example)

4.14 Delivery/project performance – programme EVM summary

4.15 Earned value metrics

4.16 Programme fiscal year performance (annual spend forecast)

4.17 Four‐year programme cost projection

4.18 Reporting integration

4.19 Invitation to tender (ITT), signed outline contract (SOC) plus value of contract placed

4.20 PMO structure, function and reporting

5.1 Key artefacts: Stage D (implementation)

5.2 Stage D: implementation

5.3 Common construction procurement methods

5.4 Measuring progress using S curves

5.5 Data analysis on programmes

5.6 Data collection on programmes

5.7 Measuring progress on programmes

5.8 Reporting on multiple projects in a programme

5.9 Forecasting schedule information

5.10 Programme monitoring and control

5.11 Interface between programme and project reporting

5.12 The need for independent analysis

5.13 Correct use of graphics (example 1)

5.14 Correct use of graphics (example 2)

5.15 Programme time management

5.16 Key points of contact

6.1 Stage E: Benefits review and transition

6.2 Key artefacts: Stage E (Benefits realisation and transition)

6.3 Managing benefits realisation

6.4 Benefits map Step 1: Mapping programme objectives to strategic objectives

6.5 Benefits map Step 2: Identifying and mapping benefits to programme objectives

6.6 Benefits map Step 3: Identifying business changes

6.7 Benefits map Step 4: Mapping project outputs to benefits

6.8 Benefits map Step 5: mapping the links between programme, objectives, benefits, business changes and project outputs

6.9 Organisation size over time for programme delivery

7.1 Key artefacts: Stage F (Closure)

7.2 Stage F: Closure

B.1 Stage review process

B.2 Fibonacci sequence

B.3 Example of planning poker

B.4 Manging using the concept of SPRINTS

B.5 Example of Kanban boards and time schedules

B.6 Programme time schedule

B.7 Example of burn‐down charts

B.8 Media wall example

B.9 Managing the programme scope

B.10 Three‐point estimate triangle

B.11 Estimation of uncertainty: illustrative example

B.12 S‐curve detailing the cumulative contingency requirement

B.13 Dataset example

B.14 Reference Class Forecasting using the manual method

B.15 Results of the manual method

B.16 Descriptive statistics (example)

B.17 Frequency histogram (example)

B.18 Percentiles calculation using excel

B.19 Reference class forecast (example)

Working Group (WG) of the Code of Practice for Programme Management

Chair

Michael J Foy

OBE, FCIOB, MBA, FCMI

Working Group Chair, CIOB President 2021/2022

Technical Authors

Dr. Tahir Hanif

FCIOB, FAPM, FACostE, FIC FRICS

Principal PMO and Project Controls Consultant – Costain; Honorary Professor ‐ University of the West of Scotland

Dr. Simon Addyman

MSc, PhD, FAPM

Associate Professor of Project Management, UCL

Working Group

Gildas André

MBA, MSc, BSc (Hons), MAPM, MCIOB, Director GAN Advisory Services

David Haimes

MCIOB

David Haimes Consulting Limited

Dr. Ruth Murray‐Webster

HonFAPM

Director, Potentiality UK

Niki French

FICE

Head of Utilities, HS2

Andy Stanley

FCIOB, FAPM, AMICE, NECReg

Programme Management Practitioner.

Dr. Paul Sayer

Publisher: John Wiley & Sons Limited

Dr. Ashwini Konanahalli

BArch, MSc, PhD, FHEA

Reader in Construction Management, University of the West of Scotland

The following also contributed in the development of the Code of Practice for Programme Management.

Stephen Coppin

BEng(Hons) MSc C.Build E FCABE FCIOB CFIOSH FIIRSM FMaPS CWIFM MInstRE PIEMA EurOHSM

Strategic Technical Director, SJC Risk Management Solutions Ltd

David Philp

MSc, BSc, FCIOB FICE FRICS FCInstCES

Chief Value Officer, Cohesive Group

Jamie Strathearn

MRICS MCIOB

Head of Programme, Cost, Procurement, Pre‐Construction ‐ Marks and Spencer

Francis Ho

FCIOB

Partner at Charles Russell Speechlys LLP

Milan Radosavljevic

PhD UDIG MIZS‐CEng

Vice‐Principal and Pro Vice‐Chancellor (Research, Innovation and Engagement)

Mr. Wes Beaumont

BSc, MSc, MCIOB

Associate Vice‐President, Digital Transformation Leader, AECOM US

Neil Thompson

FIET, MCIOB, MDAMA

Director, AtkinsRealis

Bill McElroy

FAPM, FICE

Independent Consultant

Glossary

Benefits

A (directly or indirectly) measurable improvement resulting from an outcome perceived as an advantage by one or more stakeholders and that contributes towards one or more organisational strategic objective(s).

Benefits management

The identification, definition, monitoring, realisation and optimisation of benefits within and beyond a programme.

Benefits profile

Used to define each benefit (and dis‐benefit) and provide a detailed understanding of what will be involved and how the benefit will be realised.

Benefits realisation manager (BRM)

Supports programme manager by taking the responsibility for benefits identification, mapping and realisation – ensures that necessary business benefits are realised.

Benefits realisation plan

Used to monitor the realisation of benefits across the programme and set governing controls.

Business change manager (BCM)

Responsible for ensuring that the objectives have been sufficiently and accurately defined, managing the transition activities and undertaking and determining whether the intended benefits have been realised.

Business partner

Organisations that have a business or financial interest in the outcome of the programme.

Clients

Persons using the services of a professional entity or those who are procuring products or services from a professional entity. In legal context, a client may instruct a professional entity to act on the client's behalf. In the programme sense, this document defines clients as ‘the body or group that procures the services of professionals to initiate and deliver projects or a programme of projects’.

Customer

Persons who are paying for a product or a service but not necessarily in the legal context represented by the professional entity.

Deliverable

What is to be provided as a result of an initiative or project – typically tangible and measurable.

Disbenefit

A (directly or indirectly) measurable decline resulting from an outcome perceived as negative by one or more stakeholders that may or may not affect one or more organisational strategic objective(s).

Issue

A relevant event that has happened or is likely to happen was not planned and requires management action.

Opportunity

A relevant but uncertain event that can have a favourable impact on objectives or benefits.

Outcome

The result of a change. Outcomes are desired when a change is conceived and are achieved as a result of the activities undertaken to reflect the change.

Output

The tangible or intangible effect of a planned activity or initiative.

Portfolio

A portfolio is a total collection of programmes and/or stand‐alone projects managed by an organisation to achieve strategic objectives.

Programme

A programme is a collective of related projects coordinated to achieve desired benefits not possible from managing them as a group of individual projects.

Programme brief

Used to assess whether the programme is viable and achievable.

Programme communication manager

Supports the programme manager by managing all internal and external communication channels, developing the programme communications plan and ensuring governance of internal and external communication protocols.

Programme delivery plan (PDP)

A detailed description of what the programme will deliver, how and when it will be achieved and the financial implications of its delivery and implementation.

Programme financial manager

Deals with complex financial issues including funding arrangements, cash flow and financial governance. Responsible for programme financial plan, budget and financial reporting.

Programme financial plan

A financial statement that collects all the costs that have been identified in relation to implementing the programme – often the funding streams are also identified in this document.

Programme management board

A group established to support a programme sponsor in delivering a programme.

Programme management office (PMO)

The function providing information and governance for a programme and its delivery objectives – it can provide support to more than one programme.

Programme manager

The role responsible for the setup, management and delivery of a programme – typically allocated to a single individual; for large and complex programmes an organisation can be given this role.

Programme mandate

Expansion of the vision statement setting out in greater detail what it is that the programme needs to achieve in terms of the outcomes and what it is that the programme seeks to deliver.

Programme monitor

In certain privately funded programmes, a programme monitor (sometimes known as funder/lender/investor's advisor or monitor) may be appointed, on behalf of the funding entities, to safeguard the interests of the funders.

Programme sponsor

The main driving force behind a programme, appointed by the client and the point of accountability for the programme.

Programme sponsor's board

The driving group behind the programme, which provides the investment decisions and senior‐level governance for the rationale and objectives of the programme.

Programme timescale plan

An overall delivery time schedule for the programme.

Project

A project is a temporary and transient undertaking created to achieve agreed objectives and produce and deliver a product, service or result

Risk

An uncertain event or set of events that, if it occurs, has an effect on the achievement of the objectives. A risk is measured by a combination of the probability of a perceived threat or opportunity occurring and the magnitude of its impact on objectives.

Stakeholder

Any individual, group or organisation that can affect, be affected by or perceive itself to be affected by a programme.

Transition

The changes that need to take place in business as usual, which are aimed to be managed, as project outputs are exploited in order to achieve programme outcomes.

Transition plan

The schedule of activities to cover the transition phase of the benefits realisation plan.

Value

The total sum of benefits to be derived from the programme less the total costs expended across the life of the business case.

Vision

A view of a better future that will be delivered by the programme.

Vision statement

A business vision for change setting out the intent and the benefits sought.

1Programme Management in Context

1.1 Introduction

This second edition of the Code of Practice for Programme Management in the Built Environment is a natural development from the first edition and builds on the recently published sixth edition of the highly successful Code of Practice for Project Management for the Built Environment.

The first edition of this Code of Practice defined a programme as:

a collective of related projects coordinated to achieve desired benefits more effectively than when managing them as a group of individual projects.

In this second edition, we retain this definition. In some organisations, programmes are created with a single business case aligned to a set of benefits. While for others, business cases and benefits are defined at project and not programme level. However, in both cases, the projects are delivered as a programme in order to achieve an organisation's strategic objectives more effectively.

We have retained ‘for the built environment’ because we continue to see many projects that are not solely construction or development‐related. For example, if we consider some of the client sectors involved in creating new facilities and/or infrastructure, such as highways, rail, airports, shipping, nuclear, etc., all of these are likely to incorporate projects that are not related to construction. These may include disciplines such as information technology,