Keynote UQAM 26 november 2013 Program Management
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Keynote delivered by Michel Thiry, PhD, PMI Fellow, Adjunct Professor University of Technology Sydney, to a group of senior managers and post graduate students at the Université du Québec à Montréal on 26 November 2013.
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Keynote UQAM 26 november 2013 Program Management
- 1. Michel Thiry PhD, FAPM, PMI Fellow presents: Program Management
- 2. 2 © Valense Ltd. 2013
- 3. Emergent Undefined Programs Projects Well-defined (Degree of Ambiguity/Complexity) Type of Change From projects to programs… Likely Unlikely Unknowable Likelihood of Outcome 3 © Valense Ltd. 2013 (Degree of Uncertainty/Turbulence)
- 4. “Project governance practices today tend to focus on making commitments, not keeping them.” Yes Will, I promise you will get all the resources you need “That is, executives are often involved in selecting and approving projects, but rarely involved in delivering them.” Program Manager Weather was supposed to be clear and sunny Where do I start? Project Manager 4 © Valense Ltd. 2013 (KPMG Global IT Project Management Survey 2005, p.ii)
- 5. Maximizing overall performance Integrate Formulate Value Planning Run the Business Value Creation Transform the Business Deliver Operate “Track benefits realization past the end of a project through operations to verify return on investment.”* 5 © Valense Ltd. 2013 * PMI Pulse of the ProfessionTM 2013
- 6. Organizational Context Strategic Objectives Governance /Portfolio Management Analysis Response Agreement-Decision Execution-Control Continuity Maintenance /Operations Management 6 © Valense Ltd. 2013 Results Delivered Outputs Decision to implement Pressure Measure to Value change Strategy BA/Value Management Program Management Innovation /Project Management
- 7. Delivering Organizational Value Business Needs Corporate Objectives Strategy Formation Pressure to Change Realized Benefits Operational Improvement Realized Outcomes Enhanced Capabilities 7 © Valense Ltd. 2013 Strategic Objectives Expected Benefits Value Management Project Management Expected Outcomes Proposed Actions Proposed Deliverables Delivered Outputs
- 8. 8 © Valense Ltd. 2013
- 9. PMI Standard 3rd Edition Strategy Alignment Program Governance Life Cycle Management Benefits Management Stakeholder Management 9 © Valense Ltd. 2013 PMI PgM Standard, Figure 2-1, p. 17
- 10. What is a Benefit? “Benefits refer to a customer-derived definition of the basic needs and wants that are being satisfied. Benefits are what link the core strategy to the needs of the customer.” Gary Hamel, 2000, Leading the Revolution, Harvard Business Press, p.87 10 © Valense Ltd. 2013
- 11. Stakeholders’ Management: More than a simple Analysis… Identify Stakeholders Monitor & Realign Review Status & Iterate Classify/Map Stakeholders Record Needs Uncover Expectations Implement Actions Agree Goals & Value Criteria Negotiate Trade-offs 11 © Valense Ltd. 2013 Identify & Analyze Assess Achievability Influence & Engage
- 12. Strategic Alignment and Program Governance Process Operations Business Case Process (Realize Benefits) Execution (Deliver Capabilities) Development (Design Deliverable) Definitive (Measure Benefits & Achievability) Outline (Assess Benefits & Achievability) Initial (Assess Initial Value) © Valense Ltd. 2013 Decision Making at Key Gates 12 Deployment & Appraisal Formulation & Organization
- 13. Strategic alignment of benefits Strategic Objective Vision Benefit Outcome Output Capability Program Strategy Grouping into Projects Operations WHY? (END) Business Value 13 © Valense Ltd. 2013 Operational Improvement HOW? (MEANS)
- 14. Program Decision Mgmt Cycle Learning Cycle Value Mgmt Expected Benefits Ideation Strategic Sensemaking Objectives Expected Outcomes Elaboration Choice Project Mgmt Program Mgmt (Capture Expectations) Delivered Outputs Control Planning Execution Proposed Actions Proposed Deliverables Performance Cycle (Deliver Results) 14 © Valense Ltd. 2013 Thiry, 2002-2010
- 15. 15 © Valense Ltd. 2013
- 16. The New Project Context Sustain Competitive Advantage Vision – Mission - Strategy Strategic Objective Portfolio – Align with Strategy/Vision Program – Deliver Strategic Objectives Analysis Demand Decision Business Case Pressure 16 Implementation © Valense Ltd. 2013 Benefits Performance Transfer Project – Deliver Results Operations Transition New Demands New Pressure
- 17. Program Management Life Cycle Learning 1st Cycle 2nd Cycle Benefits Strategy Formulation Learning Performance Organization Program Deployment Projects Appraisal Operations Stability 17 Nth Cycle © Valense Ltd. 2013 Dissolution
- 18. Pacing of Learning Loops & Benefits Realization Performance Periods of relative stability (Benefits input & Learning Loop) Target Situation Original Situation Plan with PgM Minimum acceptable level Crisis High Risk Zone Plan without PgM Time 18 © Valense Ltd. 2013
- 19. Key Elements of Program Roadmap Benefits input & Learning Loop Review Milestone End of Cycle Benefits Milestone Transition Activities Interfacing Activities Project Activities 19 © Valense Ltd. 2013
- 20. Example Roadmap 0 1 2 3 Foundation 4 5 Collaboration 6 7 Knowledge Pre-Implementation Transition Capture & Imaging (CI) Document Management (DM) Records Management (RM) Web Content Management (WCM) Email Management (EM) Search Integration Transition Social Collaboration Business Process Management (BPM) Digital Asset Management (DAM) Digital Rights Management (DRM) Transition Production Data Management (PDM) Learning Management System (LMS) 20 © Valense Ltd. 2013
- 21. 21 © Valense Ltd. 2013
- 22. Governance Frameworks Stable Framework Dynamic Framework Maintenance, predictable controlled outputs Internal competition = Knowledge withheld Strong team culture = Knowledge shared Vertical functional relationships Cross-functional horizontal relationships Efficiency & reliability as measures of value 22 Transformation, emergent unpredictable outcomes Responsiveness as measure of value © Valense Ltd. 2013
- 23. The Program as a Value Chain Enablers Requirements Expectations Value Chain Scope Definition Customers Customer/User Performance Team Relationship Relationship /Users Horizontal Integration through Programs Partnerships Procurement Supplier Relationship Delivery of capabilities Delivery of products Delivery of components Marketing & Sales/ Business Integrator Project Teams Learning Flow Suppliers Performance Flow Procurement Logistics Results Stakeholder Value Approach 23 © Valense Ltd. 2013
- 24. Develop Your Program Maturity Generate common view and understanding of project and program management Share program goals and objectives and focus around those goals and objectives Develop program processes and procedures adapted to program context and organization Elaborate project processes and documents meaningful to PMs and useful to organization Define contribution of each project to program and identify major elements of contribution 24 © Valense Ltd. 2013
- 25. So in practical terms, what is program maturity? It is your responsibility to understand your own organisation and how program management can deliver tangible results that help it stay competitive Executives express their business needs, define the strategy and commit resources to achieve objectives Sponsors define expected operational improvements in measurable terms and align with business strategy Project managers support the program by delivering tangible results within agreed parameters Users make sure they can integrate new capabilities to produce benefits 25 © Valense Ltd. 2013
- 26. New York London Geneva Bahrain Pune Sydney Michel Thiry, PhD, FAPM, PMI Fellow http://uk.linkedin.com/in/michelthiry www.amazon.com/author/michelthiry http://www.youtube.com/user/valensepartners? feature=results_main
Editor's Notes
- “PMI's second edition of its program management standard demonstrates an overall poor understanding of this complex discipline. It also provides practices that — at best — are disappointing and largely composed of reused project-centric contents and approaches.”Gartner Report on The PMI Standard for Program ManagementExample of iPhoneWhen it came out in January 2007: Knowable-Developing/EmergentiPhone 3G (Wifi & Internet): Knowable-DevelopingiPhone 4 (Video Call): Known-Developing
- Example from PMI e-Seminar:The business strategies are done by the senior management committee typically in preparation for the annual budget. It goes like this, "if we need to grow our revenue by 12% then we should launch these 7 projects". A few days later, the discussion continues, "if we need to reduce our expenses by 17%, then we should launch these 4 projects". Finally, the finance department compiles the number and funding is allocated for 2 projects! The 2 projects are then launched with all the right project management tools and processes. After the end of the Quarter - for those not familiar with the context, that is when the financial results are communicated to Wall Street - the organization realizes that we fell short of expectations so we immediately kill the 2 existing projects and launch 1 or many project to address the gap with the financial expectations
- Typically, organizations are divided into a series of management processes destined to run the business (Governance, portfolio, operations and maintenance) the role of which it is to provide continuity to the business. Another set of business process are destined to transform the business (Strategy, Program and Value Management, innovation and project management), the purpose of these actions is to maintain the competitive advantage of the organization in regard of a changing market context (competition, new technologies and others)The more turbulent the context, the shorter the cycles of transformation. But transformation only produces potential value, it is only when the changes are implemented through operations and integrated that they produce real business value.Central to the change management process in organisations is recognising when change is needed. Some steps include:deciding who needs to implement the changes (whole organization or one department)selecting a model or framework to guide the processdeciding who is responsible for implementing the changesknowing your desired outcome.In the next few slides, I will discuss and example.
- This slide has to be seen as a build-up (Slide Show view); it aims to explain the relationship between the different management areas of an organization as a continuous ongoing process (This view is based on the work I did for my PhD). The management of change programs starts with strategic objectives that are determined at the corporate portfolio level, the strategy is defined through value management and/or business analysis (this is where the business case is developed for the change). Once the decision is made to implement the change, innovation practices and project management enable the execution of the processes that will deliver outputs and new capabilities to the organization. These capabilities are then implemented at operational level and benefits/value can only then be measured.The blue arrow represents the rational and planning areas of the process, whereas the yellow arrow represents the responsive and more intuitive side of the process: e.g. Overall portfolio of actions is based on rational decision-making practices, but strategy is developed, based on stakeholder input, which is typically people-based (validated), and an evolving context (responsive). Once decisions are made to implement projects, these can be planned rationally using PMBOK methodology and results are defined (scope). Finally when the results are delivered into the business the actual measures of success need to take into account the integration of the capabilities and the people’s acceptance of them to produce continuity and value.
- Mintzberg’s (1978) concept of strategy “formation,” in which strategy formulation is entwined with implementation in an ongoing, mutually constructive process, positions top managers as active participants in the strategy process (Mintzberg & Waters, 1985)Mintzberg, H. 1978. Patterns in strategy formation. Management Science, 24: 934–949.Mintzberg, H., & Waters, J. 1985. Of strategy, deliberate and emergent. Strategic Management Journal, 6: 257–272.
- MSP 2007, p.64: Part 2: The Governance ThemesTable 7.1 Differences between outputs, outcomes and benefits
- One of the key elements of any change program is the pacing of the change. There is a fine balance between pacing benefits too far from each other and risk losing stakeholder’s motivation to support the program because they have to wait too long to see its benefits and pacing them too closely together and risk them having difficulty coping with too much change too quickly.Resistance and/or acceptance of change is a key factor to be taken in consideration when pacing a change program. Individuals and groups need time to make sense of the change in order to increase acceptance of change. The greater the change, the more sensemaking time is required. The PMI Standard for Program Management recommends that benefits be delivered in an incremental, iterative way so that the ultimate benefits are achieved in a “cumulative manner”.Our own experience is that the successful delivery of benefits, at business and operational level, is highly dependent on the pacing of the benefits delivery in a series of cycles in accordance with the organization’s receptiveness or resistance to change. Sensemaking time and preparedness of the organization are important aspects of the benefits realisation and should be taken into consideration in the pacing of the program. The slide is a graphical representation of the concept described above; it shows that without the controlled release of benefits into the business resistance to change is likely to trigger an unacceptable drop in performance that can jeopardise the whole program or cycle. If the introduction of change is controlled, the drop of performance will stay at an acceptable level. Given time, the people affected by the change will understand the positive aspects of the change and their performance will rise to the expected level and benefits will be realised. Financial issues such as cash-flow and funding, resource availability (either in numbers or expertise), and human resource issues like the organization’s culture (e.g. risk seeking or risk averse) also affect the pacing.
- The program monitoring and appraisal process is also build around the program’s pacing ‘cycles’. The program roadmap identifies those cycles and further defines a number of key activities and milestones. In this slide, the yellow line represents the level of performance of the organization during the change (see slide 12). In the face-to-face course this is part of a buid up.Once the pace of change has been determined, transition cycles and periods of stability are set. Transition activities are planned and inputted into the roadmap. This defines the end of the different projects that will deliver change. From a program point of view the project elements that need to monitored are: review milestones, that correspond to the deliverables that directly contribute to benefits; interdependency activities that affect the interface between the project within the program and high level tasks that are grouping of project tasks that correspond to the delivery of a key deliverable.
- Michel Options as build up