1. Projects & Programs are two different
animals, don't underestimate the gap
December 2014, Moscow
Thomas Walenta, PgMP, PMP, PMI Fellow
thwalenta@online.de
2.
3. Not typical attributes of project managers:
Strategy alignment, positive towards change, strategy execution
Which profession has these attributes?
4. 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?
5. 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'
6. 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
costtime
scope/quality
How about strategic alignment, benefits realization and
C-Suite communication?
7. • 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
PM Standards and Methodologies provide no real help to
Project Managers in delivering benefits
11. 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
13. 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
15. Capabilities of a successful program manager are different
to those of a good project manager
PMI Congress 2003 – Europe Paper
Pellegrinelli, Partington and Young
16. 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)