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- Herausgeber: John Wiley & Sons
- Kategorie: Fachliteratur
- Sprache: Englisch
Program Management Unique and adaptable approach to program management, offering key insights needed for professionals and business leaders to drive strategic change Program Management links business purpose, strategy, program stakeholders, benefits realization, and transformative change-making to provide a uniquely integrated view and use of program management, offering practicing initiative leaders the skills and mindset shifts needed to effectively communicate and champion programs to stakeholders. The text includes key insights into strategy execution excellence and designing risk-based governance strategies that empower a learning culture within the PMO and across the business, guidance that is customizable to the nature of strategic initiatives and change efforts at the individual and organizational level, and customization that is driven by the emphasis on the potential use of programs and projects as learning labs for different levels of complexity, organizational maturity, and diverse business contexts. Written by a highly qualified author with more than 30 years of experience in the field, Program Management covers critical topics such as: * Origin of programs, program management definitions and concepts, the role of program manager vs. project manager, and the importance of value focus across the program life cycle. * How leaders need to be agile, navigate political waters, manage incredible complexity, and align diverse stakeholders. * Envisioning a Program Roadmap that fits context and inspires commitment to continuously achieving value. * The culture for change making and the attributes for a healthy "change culture" including the future Power Skills. Also addressing the value proposition of program professionals in the future. * Impact of digitalization and Artificial Intelligence (AI) on the future of programs. * Creating the value-driven way of working and developing the value mindset coupled with the role of benefits management in programs and projects. * The PMO as the learning engine for the enterprise and the changing role of the program offices. * Becoming a Change Scientist, the maturing of value and strategic metrics in programs, and how to achieve the right metrics design and mix. For program and project managers, practitioners, PMO leaders, students in project and program management courses, and those studying for project and program management certifications, Program Management is an essential mindset, skillset, and toolset for executing a strategic plan and providing synergy, consistency in managing change, and a greater focus on achieving what matters to customers and stakeholders.
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Table of Contents
Cover
Table of Contents
Title Page
Copyright
Dedication
Preface
Introduction The Why of Program Management
BACKGROUND
DIFFERENCES BETWEEN PROGRAMS AND PROJECTS
WHY THIS BOOK
APPROACH
THE EXPECTED OUTCOMES
REFERENCES
SECTION I: GOVERNING WITH EXCELLENCE AND ACHIEVING CHANGE
CHAPTER 1: Connecting to Purpose and Achieving Change
1.1 PROGRAMS MATTER
1.2 ALIGNMENT ACROSS DELIVERY
1.3 SPEED AND QUALITY OF DECISIONS
1.4 THE CONDUCTOR
1.5 ELABORATING THROUGH COMPLEXITY
1.6 MANAGING CHANGE MATTERS
1.7 ALIGNING ACROSS HEARTS AND MINDS
1.8 DIGITAL TRANSFORMATION
1.9 THE CHANGE MAKER
1.10 CHAMPIONING CHANGE
Notes
CHAPTER 2: Creating Focus
2.1 THE PROGRAM SPONSOR
2.2 A CRITICAL PARTNERSHIP
2.3 THE STAKEHOLDER LINK
2.4 THE PROGRAM CHARTER AND CLEAR PRIORITIZATION
2.5 THINKING AGAIN FOR A CHANGE
Notes
CHAPTER 3: Driving Integration
3.1 THE HOLISTIC LEADER
3.2 THE BENEFITS FOCUS
3.3 INTEGRATING WITH EMPATHY
3.4 COMMUNICATING WITH THE PROGRAM ROADMAP
3.5 POWERFUL STORYTELLING
Notes
SECTION II: APPLYING POWER SKILLS AND DIGITAL ENABLERS TO CREATE CONTINUAL CHANGE
CHAPTER 4: Change Making
4.1 THE FUTURE OF BUSINESS
4.2 CHANGE CULTURE
4.3 CHANGE MATTERS
4.4 THE INSPIRING PROGRAM STORIES
4.5 TRANSFORMATION QUALITIES
Note
CHAPTER 5: Effective Engaging
5.1 ADAPTING ACROSS THE LIFE CYCLE
5.2 PROGRAM STAKEHOLDERS
5.3 ENGAGING STAKEHOLDERS
5.4 ENGAGEMENT STRATEGIES FOR FIT
5.5 SENSING AND RESPONDING
CHAPTER 6: Power Skills
6.1 THE SKILLS REVOLUTION
6.2 NOT SOFT SKILLS ANYMORE
6.3 THE PROGRAM SUCCESS LINK
6.4 POWER SKILLS MASTERY
6.5 THE PROGRAM MANAGER PROFESSIONAL
Notes
CHAPTER 7: Digitized Future
7.1 AI IS HERE TO STAY
7.2 THE DIGITAL EDGE
7.3 MANAGING WITH INTELLIGENCE
7.4 COMMUNICATING IS HUMAN
7.5 ACHIEVING BALANCE
Notes
SECTION III: THE PROGRAM MANAGEMENT OFFICE (PMO) – THE STRATEGY EXECUTION ARM
CHAPTER 8: Value‐Driven Programs and Hybrid Work
8.1 VALUE‐DRIVEN WAY OF WORKING
8.2 THE VALUE MINDSET
8.3 BENEFITS MANAGEMENT MATTERS
8.4 INITIATIVES SUCCESS
8.5 IMBEDDING THE VALUE FOCUS
8.6 THE HYBRID WAY OF WORKING
8.7 COCREATING THE PROGRAM APPROACH
8.8 VALUE OF FLEXIBLE DELIVERY
8.9 PROGRAM LIFE CYCLE CHOICES
8.10 ORGANIZING TEAMS FOR FIT
Notes
CHAPTER 9: Risk‐Based Governance
9.1 WHY RISK‐BASED PROGRAM GOVERNANCE MATTERS?
9.2 THE CASCADING EFFECT OF THE RISK APPETITE
9.3 DECISION‐MAKING SPEED
9.4 INTEGRATION WITH LEARNING
9.5 MATURING PROGRAM MANAGEMENT PRACTICE
Note
CHAPTER 10: The Learning Engine
10.1 THE ENTERPRISE LEARNING MUSCLES
10.2 DEVELOPING ROLE OF THE PMO
10.3 CREATING THE LEARNING CULTURE
10.4 CRITICALITY OF CROSS‐PROGRAMS ALIGNMENT
10.5 GUIDED CONTINUOUS IMPROVEMENT
SECTION IV: ORGANIZATIONAL CHANGE MANAGEMENT FRAMEWORK – TRANSFORMING STRATEGY EXECUTION TO REALIZE PROGRAM VALUE
CHAPTER 11: Change Culture
11.1 THE FEATURES OF CHANGE CULTURE
11.2 CHANGE SUCCESS INGREDIENTS
11.3 GOVERNANCE MATTERS
11.4 ERM‐BASED GOVERNANCE
11.5 SUPPORTING CHANGE SUCCESS
CHAPTER 12: Sustaining Benefits
12.1 BENEFITS ACROSS THE LIFECYCLE
1
12.2 RESILIENCY AND BENEFITS
12.3 AN OWNERSHIP ENVIRONMENT MATTERS
12.4 MANAGING FOR TRUST
12.5 CHANGE AND BENEFITS CONSISTENCY
REFERENCES
Notes
CHAPTER 13: Change Scientists
13.1 THE CHANGE SCIENTISTS’ REVOLUTION
13.2 THE POWER SKILL FOR PROGRAM SUCCESS
13.3 THE PROGRAM METRICS MIX
13.4 DECISION‐MAKING MASTERY
13.5 THE PROGRAM CORE TEAM CHANGES
CHAPTER 14: Adaptable Roadmaps
14.1 VALUE‐BASED PROGRAM ROADMAPS
14.2 THE ADAPTING FACTOR
14.3 BALANCING GOVERNANCE WITH TRACEABILITY
14.4 COCREATED ROADMAPS
14.5 DIVERSITY CONSISTENCY
SECTION V: THE PATH FORWARD
Index
End User License Agreement
List of Tables
Section V
TABLE 1 Some High‐Level Components of a Culture
List of Illustrations
Chapter 1
FIGURE 1.1 Digitalized Program Management Effects
FIGURE 1.2 Program Benefits Strategic Links
FIGURE 1.3 Sample Linkages Structure
FIGURE 1.4 Program Lifecycle
FIGURE 1.5 Program Delivery Excellence
FIGURE 1.6 Tailoring Concept
FIGURE 1.7 The Samsung Alignment Sample
FIGURE 1.8 The Innovation Model
2
FIGURE 1.9 Minimizing Estimating Bias
FIGURE 1.10 The Conductor
FIGURE 1.11 The Holistic View
FIGURE 1.12 A Program’s Competing Constraints
FIGURE 1.13 Facebook and Simplicity
FIGURE 1.14 Achieving Change Balance
FIGURE 1.15 Connecting Strategic Outcomes to Change
FIGURE 1.16 ADKAR Model and Enabling Change
FIGURE 1.17 Kotter’s 8 and Implementing Change
FIGURE 1.18 Data‐Driven Decision‐Making
FIGURE 1.19 What Is the Dominating Organizational Culture?
FIGURE 1.20 Developing the Learning Sponge
FIGURE 1.21 Change Maker Competencies
FIGURE 1.22 Engagement Strategies
FIGURE 1.23 The Servant Leader as a Difference Maker
FIGURE 1.24 IOT and Program Change
FIGURE 1.25 Going Beyond Agility
Chapter 2
FIGURE 2.1 Attributes of the Sponsor Role
FIGURE 2.2 The GROW Model3
FIGURE 2.3 Impact of Effective Sponsorship4
FIGURE 2.4 Building Effective Sponsorship
FIGURE 2.5 Political Acumen Pillars
FIGURE 2.6 Communications Principles5
FIGURE 2.7 Tiers of Stakeholders Example
FIGURE 2.8 Sample Stakeholders Register
FIGURE 2.9 Stakeholders Engagement Matrix
FIGURE 2.10 Program Management Performance Domains
FIGURE 2.11 Core Team and Team of Teams
FIGURE 2.12 Program’s Critical Escalations
FIGURE 2.13 Conductor Driving Thinking
FIGURE 2.14 Adoption from Thinking Fast – Slow7
FIGURE 2.15 Think again Roadmap
Chapter 3
FIGURE 3.1 Learning from Disney Imagineering
FIGURE 3.2 Balancing Strategy and Business
FIGURE 3.3 What Should We Keep Score of?
FIGURE 3.4 Key Distinctions
FIGURE 3.5 Weighing Benefits Sample
FIGURE 3.6 Weighing Benefits Sample
FIGURE 3.7 Execution Discipline
FIGURE 3.8 Vulnerability and Execution
FIGURE 3.9 Data and Program Roadmaps
FIGURE 3.10 Sample Program Roadmap
FIGURE 3.11 PM Profession Story Sample
FIGURE 3.12 Communicating Across Agile Ceremonies
FIGURE 3.13 Canvas Value
Chapter 4
FIGURE 4.1 The Sustainable Future
FIGURE 4.2 Making Change Happen
FIGURE 4.3 Complexity Management
FIGURE 4.4 Cultural Choices
FIGURE 4.5 EFQM Cultural Elements
FIGURE 4.6 Driving Change
FIGURE 4.7 Organizational Vision Contributors
FIGURE 4.8 Stories for Leading
FIGURE 4.9 Team Charter Connections
FIGURE 4.10 Tailoring Plans
FIGURE 4.11 VUCA Handling Ingredients
FIGURE 4.12 Connecting the Head and the Heart
Chapter 5
FIGURE 5.1 Engaging over the Life Cycle
FIGURE 5.2 Engagement Antidotes
FIGURE 5.3 Rethinking Success
FIGURE 5.4 Expanding Cultural Understanding
FIGURE 5.5 Engaging across Stakeholders’ Tiers
FIGURE 5.6 Tackling Complexity
FIGURE 5.7 Continual Engaging
FIGURE 5.8 Success Myths
FIGURE 5.9 Profession Story
FIGURE 5.10 Safe Connecting
FIGURE 5.11 Exploiting and Exploring Attributes
Chapter 6
FIGURE 6.1 Future of Work Skills
FIGURE 6.2 Skills Momentum
FIGURE 6.3 Ownership for Success
FIGURE 6.4 Success Skills
FIGURE 6.5 Collaboration Routines
FIGURE 6.6 Success
FIGURE 6.7 Power Skills in EFQM.
FIGURE 6.8 Impact of Program Teams Dysfunction
FIGURE 6.9 Maturity Journey for Mastery
FIGURE 6.10 Sample Stress Assessment
FIGURE 6.11 Pursuing Certification
FIGURE 6.12 Mindset Shifts
Chapter 7
FIGURE 7.1 AI is Here to Stay
FIGURE 7.2 Mindset Principles
FIGURE 7.3 ERM and Digital Solutions Success
FIGURE 7.4 Trust Currency
FIGURE 7.5 Healthy Governance Trends
FIGURE 7.6 Powerful Questions
FIGURE 7.7 Hybrid Working
FIGURE 7.8 Sustaining Performance
FIGURE 7.9 Inspiring Stories
FIGURE 7.10 The Science of Program Learning
FIGURE 7.11 Learning Practice
Chapter 8
FIGURE 8.1 EFQM and Mindset
FIGURE 8.2 PMO and Benefits
FIGURE 8.3 Benefits Understanding
FIGURE 8.4 Continual Head–Heart Connection
FIGURE 8.5 Pandemic Example
FIGURE 8.6 Balancing Program Constrains to Achieve Value
FIGURE 8.7 Transformation Success Building Blocks
FIGURE 8.8 Hybrid Across Industries
Chapter 9
FIGURE 9.1 The Collaborative Risk‐based Future Decisions
FIGURE 9.2 The Right Risk Appetite
FIGURE 9.3 The UAE Success Story
FIGURE 9.4 Role of PMO in Driving Product Management
FIGURE 9.5 Building Blocks of Maturity Models
Chapter 10
FIGURE 10.1 E‐2‐E Strategic Learning Cycle
FIGURE 10.2 PMO as the Innovation Lab
FIGURE 10.3 PMO and Balancing Change and Data
FIGURE 10.4 PMO and Progress toward Consistency
FIGURE 10.5 GCI
FIGURE 10.6 Start‐Stop‐Continue Tool
Chapter 11
FIGURE 11.1 Metrics Maturity Journey
FIGURE 11.2 BRM Stages
FIGURE 11.3 Benefits Profile
Chapter 12
FIGURE 12.1 BRM Efforts
FIGURE 12.2 Resiliency Muscles
FIGURE 12.3 Trust and Benefits
Chapter 13
FIGURE 13.1 Power Skills Maturity
FIGURE 13.2 Adaptability Around Delivery Approach
FIGURE 13.3 Evolution of Metrics
FIGURE 13.4 Decision‐Making Tree Example
FIGURE 13.5 Benefits Strategist Attributes
FIGURE 13.6 Powerful Change Stories
Chapter 14
FIGURE 14.1 BRM Culture Attributes
FIGURE 14.2 Traceability
FIGURE 14.3 Servant Leadership
FIGURE 14.4 Sample Culture Map
FIGURE 14.5 Diverse Perspectives
Section V
FIGURE 1 The People Anchor (With a Focus on the Customer)
FIGURE 2 Leading with Agility
FIGURE 3 The Future Technologies Anchor
Guide
Cover
Table of Contents
Title Page
Copyright
Dedication
Preface
Introduction The Why of Program Management
Begin Reading
Index
End User License Agreement
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Program Management
Going Beyond Project Management to Enable Value-Driven Change
Dr. Al Zeitoun, PgMP, PMI FellowGlobal Strategy Execution ExecutiveBethesda, Maryland, USA
Copyright © 2024 by John Wiley & Sons, Inc. All rights reserved.
Published by John Wiley & Sons, Inc., Hoboken, New Jersey.Published simultaneously in Canada.
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, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per‐copy fee to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, (978) 750‐8400, fax (978) 750‐4470, or on the web at www.copyright.com. Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, (201) 748‐6011, fax (201) 748‐6008, or online at http://www.wiley.com/go/permission.
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Library of Congress Cataloging‐in‐Publication Data Applied for:
Hardback ISBN: 9781119931287
Cover Design: WileyCover Image: © geralt/Pixabay
To
my wife, Nicola
and my kids, Adam, Zeyad, and Sarah
for being my continued source of inspiration
the memory of
my Dad and Mom
for instilling in me the value of learning
my life’s mentor
Dr. Harold Kerzner
for demonstrating impactful thought leadership
Preface
For more than 50 years, project and program management have been in use, perhaps not on a worldwide basis. Significantly more literature appeared describing the accomplishments of project management rather than program management. By the end of this decade, there will be a great deal of growth in program management applications as companies begin working on more projects, especially those related to strategic business initiatives, innovation, and R&D. Grouping these projects into programs will be a necessity to maximize the expected business benefits and value.
What differentiated companies in the early years was whether they used project management, not how well they used it. Today, almost every company uses project management, and the differentiation is whether they are simply good at project management or whether they truly excel at project management. As the acceptance and use of program management grows, the difference between being good and excelling at program management is expected to be quite large. Program management is heavily focused on business applications. Project management is generally seen as a short‐term perspective, but program management is often viewed in a 10–20‐year time frame.
Companies such as IBM, Microsoft, Siemens, Hewlett‐Packard, and Deloitte, just to name a few, have come to the realization that they must excel at project management. As such, these companies encourage their employees to become certified in project management. As program management applications increase, companies are expected to encourage their workers to become certified in program management practices as well because of the significant return on investment it can have on business success.
History is a great teacher and predictor of the future. What we learned from project management was that success was measured as a continuous stream of successfully managed projects. The challenge now will be defining program management success. Some of the components that are expected to be included in program management success are:
Nonlinear thinking
:
Project management traditionally focuses on linear thinking with well‐defined requirements and life cycle phases. Companies use the same forms, guidelines, templates, and checklists on all projects. The projects within programs may begin with just an idea, and new policies and procedures may need to be developed as programs progress. Projects within a program can become highly complex over time.
Strategic focus
:
The focus of most projects is on the creation of a deliverable acceptable to stakeholders. The focus of programs will be on the creation of long‐term business benefits and business value.
Change management
: Programs have a much greater impact on the organization’s business models than do individual projects. As such, program managers must continuously evaluate the long‐term effects of a successful program and prepare for change as early as possible. Program change management necessities have a much greater likelihood of removing people from their comfort zones.
Collaboration
: Traditional project may have just a few stakeholders, and their involvement in the project may be minimal. Programs may have a multitude of stakeholders, many of whom desire to be involved in critical decision‐making. Programs therefore require much more collaboration and engagement, often on a continuous basis, than traditional project management.
Methodologies and life cycle phases
: Program managers must be able to manage multiple projects within a program, where each project can use a different methodology and have different life cycle phases.
Integration
: Each of the projects within a program must be integrated with other projects within the program. This creates challenges for program managers with problem‐solving and decision‐making.
Risk management
: The VUCA environment has a much greater impact on risk management and eventual success for programs than for individual projects. The program manager must continuously monitor the VUCA environment and be willing to mitigate risks, especially business‐related risks that might impact future business value creation.
Culture
: Unlike project managers who may focus on just one project culture, program managers must deal with multiple cultures and how each culture interfaces with the corporate culture. Program managers must also possess the leadership skills to deal with cultures that can change over the long‐term life cycles of programs.
Problem‐solving and decision‐making
: The growth in the number of projects will make it difficult for the program manager to solve problems and make decisions without the use of digitalization technology such as
Artificial Intelligence
(
AI
). On traditional projects, the project manager may have the luxury of deciding whether or not to use AI practices. But on programs, given the possibility of a large number of projects being performed consecutively, the program manager may find it necessary to educate all of the stakeholders on how digitalization practices will affect their projects.
There are, of course, other topics that will help in defining and achieving program management success. All of the topics discussed above, and more, appear in Dr. Zeitoun’s book. If your company wishes to achieve the program management success that other companies have found, then this book is a “must read.”
The future of program management may very well rest in the hands of solution providers. These providers will custom‐design program management practices, such as those discussed in this book, for each client and possibly for each stakeholder. They must be able to develop program management skills that go well beyond current program management documentation and demonstrate a willingness to drive change, and make strategic business decisions as well as program decisions. The future of program management looks quite promising, but it will be challenging.
Dr. Harold Kerzner
Senior Executive Director for Project Management
International Institute for Learning, Inc. (IIL), USASeptember 2023
IntroductionThe Why of Program Management
BACKGROUND
The world has been changing and will continue to change and fast. If we have learnt anything from that last decade’s experiences, it is that change will accelerate in its scope and speed and that we best be ready to adapt and to continually build the necessary future skills so as not only to sustain our progress but also to grow and lead. Projects have and will continue to be the vehicle for change. In its simplest form, a project is an endeavor that has a beginning and an end and consumes resources toward achieving a specific and meaningful change purpose.
Programs become the connecting grouping of projects to make the best coordinated use of precious resources across the projects and toward achieve benefits (something of value to the key program stakeholders) that would otherwise be missed if we manage these projects individually. Program stakeholders are the ones with interest in the program’s outcomes and in many instances have the power to influence the program’s direction toward achieving its benefits. The key word here is benefit, which ultimately becomes the key to achieving value. This is what makes programs exciting. They become the closest strategic vehicle leaders have to plan and execute large and sometimes complex change efforts. Programs are in essence the natural cascade from strategic vision into the reality of achieving what matters.
Another key aspect to the background of the importance of programs is that they represent the big nuggets in each portfolio that an organization would typically have in place to execute its strategy. A portfolio is in essence the holistic bucket of programs, components thereof, projects, and other parts of the business operations. Organizing the portfolio in a way that links directly to achieving the mission and vision of the organization becomes critical. Two building blocks exist in a given portfolio. One is focused on running the business. The other is focused on changing the business.
The main focus of this textbook is on strategic business opportunities in the form of programs and other strategic projects, changing the business. The “Why” of program management is in essence the criticality of ensuring that we step beyond just achieving deliverables, which seems to be the biggest focus of projects, to what most counts, which is getting to the change results that are envisioned in the programs’ choices that are designed to achieve these benefits.
The book opens the door to what I could refer to as the Program Way. It is a mindset and a way of working that is centered around finding the most fitting and simplest ways of working to handle the possible complexity with these likely major strategic business opportunities. While building on the classical project and program management tools and principles, this Program Way opens the door to multiple creative ideas for how we deliver project and program management efforts in the future. Scaling strategy execution services, for example by considering Program or Project Management Office, (PMO)‐as‐a‐Service, will continue to be a strategic priority for organizations as they strive to achieve the most impactful mission that affect how we live, work, consume, and change societies.
DIFFERENCES BETWEEN PROGRAMS AND PROJECTS
Introduction
I worked with Dr. Harold Kerzner on this introductory portion of this book as we wanted to jointly address a few of the key differences between programs and projects. From the beginning of modern project management, there has been considerable confusion concerning the relationship between projects and programs, and how they are managed. The terms have often been used interchangeably. There have been articles written on the differences (Weaver 2010). But now, partially due to the learning from the COVID‐19 pandemic, organizations are looking much more closely at the differences and whether with their limited funding, accompanied by a loss of critical resources, they should focus more on program rather than project management efforts.
The PMBOK® Guide provides the following definitions (Project Management Institute 2021)
Project
: A temporary endeavor undertaken to create a unique product, service, or result.
Program
: Related projects, subsidiary programs, and program activities that are managed in a coordinated manner to obtain benefits not available from managing them individually.
From a cursory position, projects focus on the creation of unique deliverables usually for a single customer or stakeholder. Programs focus on the synergistic opportunities that can be obtained from managing multiple projects to create business benefits and business value for both the organization and its customers.
There are textbooks that simply define program management as the management of multiple projects. However, there are other factors that create significant differences between projects and programs. Managing a project as if it was a program can lead to significant cost overruns and cancellation. Managing a program as if it was a project can lead to significantly less than optimal results and failure.
There are numerous factors that can be used to differentiate programs from projects. Some commonly used factors to identify the boundaries of projects and programs include:
Type of objectives
Type of products and services produced
Industry type and characteristics
Number and types of customers/stakeholders that will benefit
Impact on business success and definition of business success
Strategic risks
Methodology used for implementation
Size of the project or program
Impact of enterprise environment factors such as the VUCA environment
Complexity of the requirements
Technology required and availability
Strategic versus operational decision‐making
Perhaps the greatest difference however is in the organizational behavior factors, the leadership style selected, the interaction with the team and stakeholders, and the decisions that must be made. Several of these factors are discussed in this study.
Selecting the Leader
There is a mistaken belief among many companies that the most important criteria for becoming a project or program manager is simply becoming certified through an examination process. While certification is an important factor, there are other attributes that may be considerably more important.
A vice president in an aerospace company commented that the two most important skills for a PM in his organization were a command of technology and writing skills. The command of technology had to be specifically related to the technology required to produce the project’s deliverables. The assignment as a PM could be temporary, without any training, just for this project, and the PM could then return to his/her functional organization for other duties perhaps not project management related. Project management was seen as a part‐time rather than a full‐time career path position. Some companies hire contractors to perform work in their organizations and the contractors then take the responsibility for project management.
Program management must be owned by the organization and usually a full‐time assignment. Program managers generally have more of an understanding of technology rather than a command of technology but must have excellent business skills related to customer interfacing, supply chain management, strategic planning, and interpersonal skills for team building.
Defining Success
There can be several definitions of success. Project managers focus on certainty by beginning projects with well‐defined requirements and a clear understanding of exactly what deliverables must be provided for the customer. Success is then defined as providing these deliverables within the constraints of time, cost, and scope.
Program managers must often deal with high levels of uncertainty in the requirements, changing customer needs, possibly a continuous emergence of new business risks, and changes in technology. Therefore, it is difficult to measure program success in just time, cost, and scope. Program managers realize that their definition of success must be future oriented and view success in factors related to the long‐term benefits and value that the program brings to the organization.
Re‐engineering Efforts and Change Management
Organizational change is inevitable. Sooner or later, all companies undergo changes, some more often than others. The changes usually result from project successes and failures and can be small improvements to the organization’s project management processes, forms, guidelines, checklists, and templates, or they can be major re‐engineering efforts that impact the organization’s business model. The changes can also affect just one project or all the projects within a program.
There must exist a valid justification for the changes. Some companies expend countless dollars on changes and yet fail to achieve the desired results related to their strategic imperatives. Lack of employee buy‐in is often a major cause of concern.
Project managers seldom take the lead in implementing re‐engineering efforts other than for the rare situation where the impact affects just one project. If the change impacts several projects that are not connected to a specific program, the leader of the change effort may be a steering committee. Program managers, on the other hand, must function as the change manager especially when the changes may impact many or all the projects within their program. Re‐engineering efforts can impact just one program within a company based upon strategic program initiatives necessary.
Perhaps the most important responsibility of the person leading the change is communicating the business need for the change. Project managers may expect senior management or an executive steering committee to assume this role especially if the impact on their project is minimal. Program managers cannot and must not abdicate this responsibility to others especially if there could be a significant impact on the program’s deliverables, customer and stakeholder expectations, and long‐term financial considerations. Programs managers must assume the leadership role for program re‐engineering efforts.
Face‐to‐face communication is very valuable, especially to get workers buy‐in. Workers are always concerned as to how the changes will affect their job and whether new skills will be needed. People are fearful of being removed from their comfort zone especially if their vision of the future is uncertain. Project managers often have little regard for workers’ concerns resulting from change management activities because the project manager’s involvement with the workers may end when the project is completed, and the PM may never work with these individuals again.
Workers assigned to individual projects may have the option of requesting reassignment to other projects where they can remain within their comfort zone. Workers assigned to programs may be working on several projects within the program and reassignment may be impossible. Part of the program manager’s face‐to‐face communications must include discussions concerning (i) the business need for the change, (ii) how and when the change will take place, and (iii) his/her expectations of the workers after the change occurs. Workers are more likely to respond favorably to the changes if the information is provided by the program manager face‐to‐face, or directly, rather than from someone not directly affiliated with the program.
Career Advancement Opportunities
Everybody seeks the opportunity for career advancement. In project management books and training courses, we stress that one of the roles of effective project management leadership is to help workers improve and advance their career opportunities. Unfortunately, this is easier said than done in traditional project management. Some reasons for this include:
PMs may have little or no authority over the workers and cannot hire or fire.
PMs may not have the authority to conduct official performance reviews and may not be asked to provide recommendations to the functional managers on how well or poorly a worker performed.
PMs may not possess the technical knowledge needed to evaluate worker performance.
Workers may be assigned to multiple projects under the guidance of several project managers and each of the PMs may not have sufficient time to evaluate worker performance.
Project budgets may not have funding for the training workers need to advance their careers unless the training is specifically related to the project they are currently working on.
In most organizations, PMs do not conduct formal performance reviews. Worker performance improves when the worker exhibits his/her performance under the eyes of the person performing his/her review. If the worker on a project receives conflicting instructions from the project manager and his/her functional manager, the worker usually goes with the person conducting his/her performance review, which is usually the functional manager.
Program managers usually do not have all the restrictions mentioned above. Workers may be assigned full‐time on several projects within the program, and the program manager may be authorized to make a significant contribution to the worker’s performance review process. Program managers generally get to know the workers on their programs better than the project managers responsible for a single traditional or operational project.
Another important factor is the relationship between strategy and management/career development. Business strategies are formulated and executed through projects. Project management books and articles are now being written that identify the importance of aligning projects to business strategies. Why work on a project that is not aligned to one or more strategic business objectives?
There must exist a line‐of‐sight between senior management and project teams whereby team members understand the linkage to and importance of the strategic business objectives. Generally speaking, the linkage is often more evident between business strategy and programs than between business strategy and individual projects.
If a program has a long‐term strategy and the workers recognize this strategy, then the program manager may be able to motivate the workers when they recognize the advancement opportunities through the business strategy for the projects within the program. Programs with growth strategies generally offer workers more management development opportunities than functional organizations that cater to single projects and focus on stability and possibly retrenchment strategies. Also, the re‐engineering efforts discussed previous, if explained carefully to the workers, may identify career advancement opportunities.
Data‐Driven Risk Management
An important lesson learned from the COVID‐19 pandemic was that traditional approaches to risk management may be ineffective during a crisis. The risk associated with a failed project may be inconsequential compared to the failure of a long‐term program.
Program managers require significantly more data than project managers for risk assessment since many of the projects within the program may be strategic rather than traditional or operational projects. Data‐driven risk management will require access to information warehouses and business intelligence systems. As stated by the authors (Kerzner and Zeitoun 2022):
The changes that have been taking place in business and in the way of working of programs/projects have led to an unprecedented level of uncertainty that make the topic of estimating and the associated risks central to the success of the strategic initiatives. It is in our view that digitally enabled estimating requires innovation in order to create a commercially successful product, which also means that the team members must understand the knowledge needed in the commercialization life cycle starting from the early projects’ stages.
Some project managers might simply walk away from a failing project and then move on to their next assignment. Program managers have significantly more at stake and focus on ways to salvage as much business value as possible.
Risk management is often looked at differently whether seen through the eyes of a project or program manager. Project managers tend to focus on negative risks, namely the likelihood of something bad happening and the resulting consequences. The intent is to reduce negative risk and the ways we have taught it according to the PMBOK Guide are with strategies to avoid it, transfer it, mitigate it, or accept it.
Program managers must deal with positive risks as well as negative risks. Positive risks are opportunities to increase the business benefits and business value of the activities within the program based upon what is in the best interest of both the parent company as well as its customers. Opportunistic strategies include accepting it, exploiting it, transferring it, and enhancing it. Effective risk management activities for programs must be holistic in nature and consider both negative and positive risk management strategies.
Stakeholder Relations Management
Stakeholder relations management affects key principles in the PMBOK Guide. For the project manager, stakeholder relations management focuses heavily upon providing project performance feedback to stakeholders and engaging them in decisions and execution of the project plan. For program managers, the relationship is more complex.
Most project managers do not have the responsibility for marketing and selling of the deliverables of their projects. Project managers move on to their next assignment after project closure regardless of the business value of the deliverables and might never work with the same customers or stakeholders again. Program managers view themselves as managing a portfolio of projects with the strategic intent of creating a long and profitable life expectancy for the deliverables created within the program. Therefore, program managers may need much more sales and communication skills than project managers. This requires more frequent communications with customers and stakeholders.
Both project and program managers have a vested interest in quality management, but often for different reasons. For the project manager, quality is most often aligned with the organization’s Customer Relations Management (CRM) program which looks for ways to sell more of the existing deliverables to the customers in the short‐term. The focus is on short‐term thinking and quick profits.
Program managers have more of a long‐term and strategic perspective by focusing on Customer Value Management (CVM) rather than CRM efforts. The intent of CVM is to get close to your customers to understand their perception and definition of value and what value characteristics will be important to them in the future. This allows the program managers to create meaningful strategic objectives aligned to their customer base. It provides a much closer and stronger relationship with important customers. This can lead to lifetime bonding with critical customers and create a sustainable competitive advantage.
Multiproject Management and Innovation
Traditional project management focuses on managing a single project within the constraints of time, cost, scope, and quality. Innovation requirements are usually not included in most traditional or operational projects. The emphasis is usually on the application of existing knowledge and technology in the creation of deliverables. Program managers are required to perform in a multiproject environment using many of the concepts required for effective portfolio management practices. Multiproject management and effective customer relations management practices give program managers more innovation opportunities than project managers working on a single traditional or operational project.
Some of the issues that program managers must address come from answers to the following questions:
How well are the projects within the program aligned to strategic objectives?
Must any of the projects be cancelled, consolidated, or replaced?
Must any of the projects be accelerated or decelerated?
Does the portfolio of projects need to be rebalanced?
Can we verify that organizational value is being created?
How well are the risks being mitigated?
Answering these questions requires the program manager to utilize business and strategic metrics for informed decision‐making regarding strategic opportunities, new technologies that may be needed, and new products/services customers expect. Strategic opportunities have a strong linkage to innovation activities that address the customers’ definition of value.
Previously we stated that program managers have a greater interest in CVM than CRM and therefore must address innovation opportunities in the multiproject environment. Program managers must recognize that innovation‐based strategies can become the key drivers to maintain or create a sustainable competitive advantage. By managing all the projects within the program in a coordinated manner whereby each project may be related to other projects, program managers are able to create significantly more business benefits and business value than traditional projects managers. Obtaining this synergy requires significantly more metrics and some expertise in innovation practices necessary to support CVM activities.
WHY THIS BOOK
As I was doing my undergraduate degree in civil engineering, a dear professor of mine introduced us to the mechanics of construction management. It was a fascinating experience that opened my eyes to a new and a different world of management at the time. Between breaking down the project into an organized set of elements and learning the steps of figuring out the critical path that determines a given project duration, I was mesmerized and thought this is such a great field of practice. Although I started my career as a practicing engineer, designing city and county utilities for example, I always had fond memories and great learning from this encounter with Prof. Hosny.
It was natural to get my Project Management Professional (PMP), and I was very proud to be the first certified professional in the city of Wichita, Kansas, USA, where I lived at the time. The biggest aha moment that I experienced then, was when I shifted from engineering to manufacturing to run a PMO for the first time. The realization that the project management practices apply almost equally well across most industries was a beautiful discovery. One thing I found then and continued throughout all my career changes and milestones was “projects could be thought of as successful, yet the impact envisioned or initially perceived by the customer or user of the service/product of the project might not have been realized.”
This was the reason why I started to investigate and understand program management principles and got ever more excited about that field and its importance to creating the most meaningful changes. Programs are strategy execution vehicles and this means that the intense focus on benefits management comes as a key ingredient to the inception of a program and the managing of its lifecycle. This would get us over this challenge of winning the battle and losing the war that could happen in project work that might be focused on just getting deliverables done, all the while missing the achievement of critical stakeholders’ outcomes.
APPROACH
Throughout this textbook, the focus will span both the program management processes and techniques as the vehicle to achieving change and the person whom we give that title and responsibility of being the program manager. You will learn how to design your programs for success, how to prioritize and focus on achieving value, and most importantly develop the right skillset and qualities needed to lead the future most important change creation efforts. The principles presented and analyzed throughout the text align with many of the global industry standards, with closer alignment to the Project Management Institute (PMI) standards and practice guides.
The orientation of the textbook is in the direction of the practitioner and thus you will see cases and examples targeting how to apply program management principles and how to overcome the gaps and resistance that might be faced when working across organizational boundaries and the multiple program stakeholders and their competing demands. Yet, a few of the readers might also be candidates for pursuing professional certifications in the field of project and program management. There will be useful references throughout to guide these readers to the resources most relevant to these certifications too. In addition, there is an instructor's manual for the book and faculty can obtain this manual by contacting John Wiley Publishers.
THE EXPECTED OUTCOMES
It is my hope as the author that the reader of this textbook will develop a strong appreciation of the value of program management in enabling change. Understanding and practicing how growing beyond project management to the land of strategic value of projects in the form of programs is a critical outcome of this work. As a future leader of programs, the qualities that you develop, and the related critical skills necessary to achieve strategic benefits, should empower you to consistently tackle the most challenging transformation initiatives.
In an increasingly digitally driven universe, it is the strong mix of human behaviors and stakeholders’ management practices addressed in this textbook that is the true difference makers for what success would look like in future organizations. The outcome of this textbook should be customized to the needs of the individual practitioner, the maturity of his/her project/program team, and the stage of the organization in its understanding journey of the value of projects and programs.
As the leader of future programs, learning to sharpen your adaptability in articulating and driving the story of your program and projects will dictate your success and your ability to make dreams a reality. Leading programs in the world from the angle of the prevailing VUCA (Volatility, Uncertainty, Complexity, and Ambiguity) is challenging enough. Yet as we mature this to the likely prevailing environmental versions for this coming decade, or the many others that might encounter our future path, managing programs will become even more challenging with an equally high potential for opportunity.
This could be a sandwiched VUCA between the two Ds of Diversity and Disruption (D‐VUCAD) or the more likely future business state of Dynamic, Ambiguous, Uncertain, Nonlinear, Complex, and Emergent (DANCE). The key is that the program manager will have to more frequently and effectively call the shots, operate as an entrepreneur, make tough decisions, continue to connect vast variety of diverse stakeholders, drive integration, take Artificial Intelligence’s impact into the mix, and ensure that every day in the life of a program is focused on achieving value. I would like to think of this as the Program Way in a future that is dominated by sensing, responding, and capitalizing on strategic business opportunities.
Wishing you a reflective read and the very best on your own journey of excelling in delivering consistent and sustainable value from your projects and programs.
REFERENCES
Kerzner, H. and Zeitoun, A. (2022). The digitally enabled estimating enhancements: the great project management accelerator series.
PM World Journal
XI (V).
Project Management Institute (2021).
A Guide to the Project Management Body of Knowledge (PMBOK® guide)
, 7e.
Weaver, P. (2010).
Understanding Programs and Projects—Oh, There's a Difference! Paper presented at PMI® Global Congress 2010—Asia Pacific, Melbourne, Victoria, Australia
. Newtown Square, PA: Project Management Institute.
SECTION IGOVERNING WITH EXCELLENCE AND ACHIEVING CHANGE
SECTION OVERVIEW
This section describes the fundamentals of program management. The value of program management in achieving organization change is detailed. A few initial tools to aid the program manager in achieving clarity and leadership of the change journey are explained. Governing with excellence is supported with a few case studies across global organizations.
SECTION LEARNINGS
The relationships among portfolio, programs, and projects to understand how they align to deliver value.
Why programs and strategy have to be connected to achieve meaningful success and gain a competitive advantage.
The linkage process between program management and change management and its use to drive and sustain innovative outcomes.
How the different program roles support its success, in addition to leveraging the role of the program sponsor in closely connecting to, and achievement of, business goals.
Using a program roadmap to create the connecting blueprint that integrates the focus and expertise of the program team.
KEY WORDS
Strategy
Change management
Complexity
Program sponsor
Excellence
Roadmap
INTRODUCTION
The world must continually change to sustain humanity and its needs and to address the strategic complexities we all encounter. The execution of strategies in this changing world of work has been going through an evolution from its normal way of working. This transition is only going to be faster and more complex. As a leader and a program manager, it is becoming highly critical to learn and develop governing strategic and integration capabilities and possess a crystal‐clear focus on value. This section highlights the challenging and rewarding journey towards program delivery excellence. It stretches the learners’ skills of creating, thinking, and reimagining futures that are becoming more likely scenarios. You will learn how to deliver faster and remove strategy execution friction.
This work will build on the principles of the Project Management Institute’s (PMI) program management standards. Of importance will be the focus on bringing the power of integration as the engine for programs success. This will help you drive and support meaningful change and realize a strong return on your programs’ investments by deep diving into a selection of practical capabilities.
Building the necessary integration capabilities requires time and energy in exploring what it takes to stretch your leadership style, while uncovering the processes and principles of program management as the vehicle for creating change. This learning journey is designed with a global perspective in mind and is intended to help accelerate a project practitioner’s growth as a future leader and a successful program manager.
Across the chapters of this section, there is an opportunity to learn and understand the delicate balance between program management and change management. A multitude of program management mechanisms provide the depth opportunity needed to drive achieving change. Programs by nature tend to also have a longtime frame, where multiple changes could occur. Leaders need to see programs as strategic business opportunities that are designed to create the organizational strategic objectives and/or solve critical customer needs.
There will be several global case studies to be addressed that propel us into the future of data and its role in program delivery, innovative decision‐making tools, and the appreciation of the human side of change. An excellence model will also be referenced as a good anchor for the many behaviors that are critical to learn and practice across the planning and execution of programs.
A program manager needs to fully immerse in a continual learning lifestyle. As the leader of a program, she/he has access to a wide variety of learning instruments and success will depend on how the leader takes the time to step back and think about the learned practices and then personalize that to your specific learning and program work needs.
There are potentially different future roles in the growing program management field. Examples highlighted in this section will cover the conductor, the change maker, the holistic leader, and the storyteller. This provides the program leaders an opportunity to experiment with the most fitting role and where a clear impact is best created. These, and many possible others, are all roles you could practice, practice, practice. What could be more exciting than being equipped to lead, or participate in, the world’s most meaningful programs?
This section is built on a global perspective to bring life to the principles and practices of program management. This should enable you and your organizations to experience the potential this program management discipline brings to the way you and your teams work now and into the future.
Before we get into the first chapter, let’s highlight some of the typical challenges faced by programs and that affect the successful management of these critical change efforts.
PROGRAM MANAGEMENT CHALLENGES
A program is generally defined as a grouping of projects that can be managed consecutively or concurrently or a combination of both. There are numerous challenges facing the program manager that quite often makes it difficult to achieve all or even part of the strategic goals and objectives established by senior management. The larger the program, the more difficult it will be to overcome the challenges.
Many of the challenges are common to both projects and programs. However, the risks due to the challenges may have a much greater impact on programs than projects. When projects are challenged, some companies simply let the project fail and the team moves on to their next project assignment. When programs are challenged, the cost of terminating a program can be quite large and have a serious impact on the organization’s competitiveness and future success.
Projects generally have a finite time duration. Most programs, because of their strategic nature and impact on the success of the organization, are much longer in duration and are susceptible to more challenges, risks, and negative impact on the business.
TYPES OF PROJECTS
When managing individual projects that are not associated with a program, we normally treat them as “traditional” or “operational” projects. Program management activities are composed of “traditional” as well as “strategic” projects. Traditional projects begin with well‐defined requirements, a detailed business case, a statement of work, and possibly a Work Breakdown Structure (WBS) that outlines all activities needed for the duration of the project. Strategic projects can begin based upon just an idea and the requirements are elaborated upon as the program progresses.
The mix of traditional and strategic projects varies with each program. The business environment seems to be changing and more programs are becoming strategically oriented. Reasons for the strategic orientation include:
Today’s business environment has much greater risks and uncertainties.
There is a growing need for more products, services, markets, and customers.
There is a much greater need for internal projects that promote better efficiency and effectiveness.
The challenge will be to accept more strategic projects as part of a program and recognize that most of these strategic projects cannot be managed using the traditional project management processes, tools, and techniques that have been taught for decades.
PROGRAM BUSINESS CASE
Many of the projects within the program will be strategically oriented and will be initiated without detailed requirements or even a business case. However, the overall program must be based upon a well‐understood business case because of the cost and time associated with a program.
The business case must articulate the expected benefits and business value expected. The business case also provides the boundaries for many of the decisions that will have to be made. The challenge will be in the preparation of the business case such that all program team members clearly understand what is expected of them.
SCOPE CREEP
The risks associated with scope creep can occur on almost all programs and projects. However, the magnitude of the risks is greater on programs. The magnitude of the risk on programs depends upon the relationships between projects within the program. Scope creep on one project could cause costly scope changes on other projects within the program as well.
Change Control Boards (CCBs) are often created to deal the with approval or denial of a scope change. For projects, the CCB may be composed of project team members, organizational management, and stakeholders impacted by the change. On programs, determining the numbers of stakeholders impacted may be difficult. Decisions made by CCBs on programs must consider the impact that the scope change will have on the entire program rather than just on one project.
Another important consideration on programs is the impact that change might have on suppliers and distributors. The cost associated with bringing on board new suppliers or distributors could create a financial headache on programs.
ORGANIZATIONAL CHARTS
People can be assigned to projects or programs full time or part time based upon the size and/or duration of the activity. Projects tend to be shorter in duration than programs and usually do not have an organizational chart unless required by the contract. Projects use Responsibility Assignment Matrices (RAMs) and the only people that might appear on an organizational chart would be the project manager and assistant project managers, if applicable. Other workers, such as from sales, engineering, procurement, legal, and manufacturing, appear as dotted lines to the project manager and solid lines to the functional area.
Programs can have detailed organizational charts with full‐time assignments from people in sales, engineering, and manufacturing. Because of the number of projects within a program, full‐time sales personnel may be assigned for projects involving competitive bidding where proposals must be prepared continuously. The same may hold true for engineering and manufacturing personnel that will appear full time on the organizational chart and reporting directly to the program manager. But in reality, they may still be dotted line reporting to the program manager and solid line reporting to their functional managers regardless how it appears on the program organizational chart. The intent of showing reporting relationships, either solid or dotted, is to help identify the right accountability and eliminate the risks of mismatched skills.
Large programs may have special requirements that justify the need for full‐time personnel. Examples might include:
Program office manager
: This can include handling administrative paperwork, meeting scheduling, and making sure that program activities are aligned to company standards and expectations.
Reports manager
:
This person is responsible for the preparation and distribution of all reports and handouts. The person is usually not involved in the actual writing of the reports.
Risk manager
:
This person monitors the VUCA environment, and the enterprise environment factors. Additional responsibilities include risk identification, analysis, and response to all risks that can impact program success.
Business analyst
:
This person works closely with the risk manager and activities may include identification of business opportunities and threats. The analyst may monitor compliance to customer requirements and verification of the program’s deliverables.
Change manager
:
Some large programs may clearly indicate that changes in the firm’s business model will be necessary. The change manager prepares the organization for the expected change. The change may just be in some of the processes or the way that the firm conducts its business rather than a significant change to the business model.
Removing critical resources from their functional area and assigning them full time to the program manager may seem like a good idea. However, there are risks if the program comes to an end and the workers do not have a “home” to return to.
Some people look at a program’s organizational chart and believe that there are too many people, and the program is overmanaged. But we must remember that there are a multitude of points of contact on programs, all requiring possible continuous interfacing. The alternative would be poor communications where certain stakeholders might be left in the dark.
MANAGING STAKEHOLDER EXPECTATIONS
Stakeholders are the people that ultimately decide whether a program is successful. There can be significantly more stakeholders on programs than projects. Failing to meet program stakeholder expectations can result in a significant loss of business. Given the long‐time frame of many programs, managing the changes in stakeholders over the lifecycle of the program and addressing their changing expectations are important muscles to develop in this Program Way.
