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New Developments
in Program Management
Michel Thiry
PhD, PMP, FAPM, PMI Fellow
presents:
2 © Michel Thiry, 2017
The Cultural Evolution of PgM
1. Rise of agility and effect on PgM
2. Alignment of main PgM standards
3. Integration of PgM in the organisation
4. Distinction between projects and programs
5. Management of change as key aspect of PgM
3 © Michel Thiry, 2017
The rise of agility and its effect on PgM
4 © Michel Thiry, 2017
Agile concepts push boundaries
Programs
Likely Unlikely Unknowable
Predictability of Outcome
(Degree of Uncertainty/Turbulence)
AgreedNegotiatedEmergent
ConvergenceofObjectives
(DegreeofAmbiguity/Complexity)
Projects
Current range
of organisational
culture
5 © Michel Thiry, 2017
Agile and Programs share…
 Simple governance systems: minimal bureaucracy; regular
decision meetings with all key stakeholders present.
 Iterative evolution: constantly realigned, based on measured
results to ensure they deliver stakeholder value.
 Representation: stakeholder engagement and team
empowerment
 Emergent strategy: series of mutually reinforcing decisions
forming a coherent whole
6 © Michel Thiry, 2017
Better alignment of the main PgM standards
7 © Michel Thiry, 2017
Main PgM standards
First time since the mid-nineties that
all the standards agree that programs are:
 more complex than projects
 require a cyclic life cycle
 a means to execute strategic objectives
8 © Michel Thiry, 2017
Program Management Standards
Set of methods to
manage the delivery of
business benefits
through capabilities
Guide to manage the
delivery of agreed
benefits through sets of
activities and functions
Integration management
to implement business
strategy and create value
in dynamic complexity
9 © Michel Thiry, 2017
Increased integration of PgM
in the organisation
10 © Michel Thiry, 2017
Program Management Life Cycle
Nth Cycle3rd Cycle2nd Cycle
Strategy
Program
Projects
Operations
Transition
& Integration
Benefits
1st Cycle
Definition (Formulation)
Definition (Preparation)
Deployment (Delivery & Transition)
Deployment (Integration & Appraisal)
Closure
LearningLearningPerformance
11 © Michel Thiry, 2017
Projects OperationsStrategy
Deployment Closure
BusinessStrategy
Integration of PgM in the organisation
Results Delivery
Corporate Strategy
Value Creation Value Realization
Definition
Portfolio Management
Vertical integration
Program Management
Horizontal integration
12 © Michel Thiry, 2017
Integration of PgM process
Core Business
Program
Program Board
Vision
Executive Sponsor
Business IntegratorProgram Manager
Transition
Process
Benefits
Realisation
OperationsProject
OperationsProject
OperationsProject
OperationsProject
Capability
Delivery
Capability
Integration
Needsand
Expectations
Formulation &
Preparation
Other Key Stakeholders
13 © Michel Thiry, 2017
Clarification of the distinction
between projects and programs
14 © Michel Thiry, 2017
Program or Project?
Factor 1 2 3
Score
A B C
1. Convergence of objectives Agreed Negotiated Emergent
2. Predictability of outcome Likely Unlikely Unknowable
3. Focus Operational Strategic Contextual
4. Outcomes Technical Structural Cultural
5. Level of change Handover Transfer Transition
Individual scores
Average Score
If the initiative’s average score is between: 5 and 9 it is considered a project;
if the score is between 10 and 15, it is considered a program
The decision to run an initiative as a program or as a project uses three assessors in order to ensure
full buy-in and active support. They will typically be:
A. a member of Strategic Management or Business Development
B. a member of the PMO
C. the initiative’s sponsor.
15 © Michel Thiry, 2017
The management of change
as a key aspect of PgM
16 © Michel Thiry, 2017
Engagement Plan
Use stakeholder analysis to identify
communication & marketing needs
1. Develop marketing plan with focus on
pacing of program benefits
2. Develop communication plan with focus on contribution requirements
& decision-making
3. Plan for sensemaking activities where all stakeholders can participate
& be represented
4. Negotiate and clearly define roles and responsibilities for key
stakeholders
Integrate in overall resource requirements & identify in project charters
17 © Michel Thiry, 2017
Pacing the Program: Low Readiness
End of
Cycles
Intermediate Benefits Measurement
End of
Program
End Benefits Measurement
Adapted from: Managing Change in Organizations
A Practice Guide. PMI (2013, p. 85 – Figure 5-8)
Small Scope - Short Cycles – Long Transitions
18 © Michel Thiry, 2017
Pacing the Program: High Readiness
End of
Cycles
End of
Program
End Benefits Measurement
Adapted from: Managing Change in Organizations
A Practice Guide. PMI (2013, p. 85 – Figure 5-8)
Larger Scope - Longer Cycles – Shorter Transitions
Intermediate Benefits Measurement
19 © Michel Thiry, 2017
Engagement and Transition Issues
 Business integrator (BCM)
 Understand culture of their business area
 Consider receptivity of people affected
by change
 Program manager
 Understand the need for sensemaking
 Improve acceptance of change
 Program manager and business integrator
 Organize workshops, information sessions, or meetings with the
people most likely to support the change and people resistant to
change
20 © Michel Thiry, 2017
The Cultural Evolution of PgM: Conclusions
1. Rise of agility helps foster PgM culture
2. Main PgM standards are aligning
3. PgM is better recognised for strategy implementation
4. Projects and programs need to be distinguished
5. Management of change is a key aspect of PgM
Michel Thiry, PhD, PMP, FAPM, PMI Fellow
michel.thiry@valense.com
http://uk.linkedin.com/in/michelthiry
www.amazon.com/author/michelthiry
http://www.youtube.com/user/valensepartners?
feature=results_main
New York
London
Bahrain Pune
Sydney
Geneva

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New developments in program management

  • 1. New Developments in Program Management Michel Thiry PhD, PMP, FAPM, PMI Fellow presents:
  • 2. 2 © Michel Thiry, 2017 The Cultural Evolution of PgM 1. Rise of agility and effect on PgM 2. Alignment of main PgM standards 3. Integration of PgM in the organisation 4. Distinction between projects and programs 5. Management of change as key aspect of PgM
  • 3. 3 © Michel Thiry, 2017 The rise of agility and its effect on PgM
  • 4. 4 © Michel Thiry, 2017 Agile concepts push boundaries Programs Likely Unlikely Unknowable Predictability of Outcome (Degree of Uncertainty/Turbulence) AgreedNegotiatedEmergent ConvergenceofObjectives (DegreeofAmbiguity/Complexity) Projects Current range of organisational culture
  • 5. 5 © Michel Thiry, 2017 Agile and Programs share…  Simple governance systems: minimal bureaucracy; regular decision meetings with all key stakeholders present.  Iterative evolution: constantly realigned, based on measured results to ensure they deliver stakeholder value.  Representation: stakeholder engagement and team empowerment  Emergent strategy: series of mutually reinforcing decisions forming a coherent whole
  • 6. 6 © Michel Thiry, 2017 Better alignment of the main PgM standards
  • 7. 7 © Michel Thiry, 2017 Main PgM standards First time since the mid-nineties that all the standards agree that programs are:  more complex than projects  require a cyclic life cycle  a means to execute strategic objectives
  • 8. 8 © Michel Thiry, 2017 Program Management Standards Set of methods to manage the delivery of business benefits through capabilities Guide to manage the delivery of agreed benefits through sets of activities and functions Integration management to implement business strategy and create value in dynamic complexity
  • 9. 9 © Michel Thiry, 2017 Increased integration of PgM in the organisation
  • 10. 10 © Michel Thiry, 2017 Program Management Life Cycle Nth Cycle3rd Cycle2nd Cycle Strategy Program Projects Operations Transition & Integration Benefits 1st Cycle Definition (Formulation) Definition (Preparation) Deployment (Delivery & Transition) Deployment (Integration & Appraisal) Closure LearningLearningPerformance
  • 11. 11 © Michel Thiry, 2017 Projects OperationsStrategy Deployment Closure BusinessStrategy Integration of PgM in the organisation Results Delivery Corporate Strategy Value Creation Value Realization Definition Portfolio Management Vertical integration Program Management Horizontal integration
  • 12. 12 © Michel Thiry, 2017 Integration of PgM process Core Business Program Program Board Vision Executive Sponsor Business IntegratorProgram Manager Transition Process Benefits Realisation OperationsProject OperationsProject OperationsProject OperationsProject Capability Delivery Capability Integration Needsand Expectations Formulation & Preparation Other Key Stakeholders
  • 13. 13 © Michel Thiry, 2017 Clarification of the distinction between projects and programs
  • 14. 14 © Michel Thiry, 2017 Program or Project? Factor 1 2 3 Score A B C 1. Convergence of objectives Agreed Negotiated Emergent 2. Predictability of outcome Likely Unlikely Unknowable 3. Focus Operational Strategic Contextual 4. Outcomes Technical Structural Cultural 5. Level of change Handover Transfer Transition Individual scores Average Score If the initiative’s average score is between: 5 and 9 it is considered a project; if the score is between 10 and 15, it is considered a program The decision to run an initiative as a program or as a project uses three assessors in order to ensure full buy-in and active support. They will typically be: A. a member of Strategic Management or Business Development B. a member of the PMO C. the initiative’s sponsor.
  • 15. 15 © Michel Thiry, 2017 The management of change as a key aspect of PgM
  • 16. 16 © Michel Thiry, 2017 Engagement Plan Use stakeholder analysis to identify communication & marketing needs 1. Develop marketing plan with focus on pacing of program benefits 2. Develop communication plan with focus on contribution requirements & decision-making 3. Plan for sensemaking activities where all stakeholders can participate & be represented 4. Negotiate and clearly define roles and responsibilities for key stakeholders Integrate in overall resource requirements & identify in project charters
  • 17. 17 © Michel Thiry, 2017 Pacing the Program: Low Readiness End of Cycles Intermediate Benefits Measurement End of Program End Benefits Measurement Adapted from: Managing Change in Organizations A Practice Guide. PMI (2013, p. 85 – Figure 5-8) Small Scope - Short Cycles – Long Transitions
  • 18. 18 © Michel Thiry, 2017 Pacing the Program: High Readiness End of Cycles End of Program End Benefits Measurement Adapted from: Managing Change in Organizations A Practice Guide. PMI (2013, p. 85 – Figure 5-8) Larger Scope - Longer Cycles – Shorter Transitions Intermediate Benefits Measurement
  • 19. 19 © Michel Thiry, 2017 Engagement and Transition Issues  Business integrator (BCM)  Understand culture of their business area  Consider receptivity of people affected by change  Program manager  Understand the need for sensemaking  Improve acceptance of change  Program manager and business integrator  Organize workshops, information sessions, or meetings with the people most likely to support the change and people resistant to change
  • 20. 20 © Michel Thiry, 2017 The Cultural Evolution of PgM: Conclusions 1. Rise of agility helps foster PgM culture 2. Main PgM standards are aligning 3. PgM is better recognised for strategy implementation 4. Projects and programs need to be distinguished 5. Management of change is a key aspect of PgM
  • 21. Michel Thiry, PhD, PMP, FAPM, PMI Fellow michel.thiry@valense.com http://uk.linkedin.com/in/michelthiry www.amazon.com/author/michelthiry http://www.youtube.com/user/valensepartners? feature=results_main New York London Bahrain Pune Sydney Geneva

Editor's Notes

  1. Emotional approach: Everybody talks to you about strategy, but what do you know about it? Does it matter? (Slides 1-5) Rational Approach: Strategy drives the organization-the environment drives the strategy Projects are influencing the strategy (Slides 6-8) Emotional Approach: We need to understand what drives our organization (Slide 9) Rational Approach Predictability = motivation = realization Projects are predictable = realized Explicit: Projects lead to Strategy Implicit: Sensemaking leads to Governance How does enactment structure itself in real-life strategy implementation The top-down and (disturbing?) bottom-up process Emotional and Rational A Laugh ! The hot Dog Serious ! Systems thinking and enactment principle Rational Approach: To conclude: Why “Projects enact Strategies” What do organisatons needs to do to be successful? Emotional Approach: Thank you for listening…
  2. “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 Management Example of iPhone When it came out in January 2007: Knowable-Developing/Emergent iPhone 3G (Wifi & Internet): Knowable-Developing iPhone 4 (Video Call): Known-Developing
  3. Convergence of objectives which measures the degree of ambiguity of the initiative, measured on a scale of three from: Agreed: Alignment of stakeholders; typically few stakeholders; predictable interactions Negotiated: Likelihood or alignment; multiple internal stakeholders; predictable interactions Emergent: Challenged objectives; multiple internal and external stakeholders; unpredictable interactions Predictability of outcomes which measures the degree of uncertainty of the initiative and is measured on a scale of three from: Likely: Data/knowledge available enables to establish direct cause-effect relationship Unlikely: Data/knowledge not readily available; indirect cause-effect relationship Unknowable: Unavailability of data does not enable cause-effect relationship Organisational span, which increases the number of stakeholders and interdependencies between components, two factors that help distinguish a program from a project. BU Level: Internal to a business unit and does not require resources outside the BU or sector 2 or more BUs: Requires resources coming from more than one business unit or sector Organisational: Spans the whole organisation involving multiple business units. Typically of strategic importance to the business. Note: In the case of external contracts, it is the client’s organisation that is assessed. ELM team could come from only one business unit, if it spans multiple BUs in the client organisation it will score 2; the whole organisation and it would score 3. Transition and change are crucial factors that distinguish programs form projects as they ensure that program outcomes will actually be delivering value for the business. Handover: Simple handover of product to user or client. Some training may be required. Transfer: Requires operational transfer activities such as piloting or testing of systems. Transition: Full transition process over a period of weeks or months until benefits are achieved. Delivery of business benefits is an essential characteristic of program management which distinguishes from projects that typically deliver products, services or results. Products, services, results: Technical or operational deliverables Capabilities: New operational state resulting from the application of products or services Benefits: Measurable business benefits resulting from the operationalization of capabilities
  4. Length of cycles Amount of change Impact of benefits Initial, intermediate & final benefits
  5. Length of cycles Amount of change Impact of benefits Initial, intermediate & final benefits