| Life Impact | The University of Adelaide Presented by Lachlan Mollison Trimester 1 – 2020 Day 3 and 4 Based on PMI Standards for Portfolios and Programs |
| Portfolios and Programs |
Profile and Contact Details
Profile
§ MAPM University of Adelaide
§ Professional Project Manager
§ International experience in Oil & Gas
industry
§ Local experience in state government &
finance
§ Lecturer and trainer in PM
§ Member of PMI
§ Business owner and manager
Contact
§ Email: Lachlan.Mollison@adelaide.edu.au
§ Phone: 0431058816
§ Prefer email, unless urgent
Principles
§ Attendance is compulsory.
§ Timeliness respects other students.
§ Late or leave early, please let me know in advance.
§ Contribute to the discussion, be curious!
Course Outline
Session 2 (Day 3 and 4) – Program Management
8. Introduction to Program Management
9. Program Setup
10. Program Execution
11. Benefits Management
12. Managing Change
13. Program Closure
14. PwC Transformation Insights
Work on Assignment 2
Slide 3
University of Adelaide – Portfolio and Program Management (7040)
Alignment to Industry
This course has been created from three different sources:
§ PMI ‘The Standard for Portfolio Management – 4th Edition’
§ PMI ‘The Standard for Program Management – 4th Edition’
§ John Woodward’s experience in Portfolio and Program
Management.
§ Other course material is provided via the MyUni Course site (e.g. case
studies).
Slide 5
Assessment 2: Program Charter, Plan and Control
§ Task: Define the required Program office processes to manage the successful delivery of the
above recommended portfolio/Program:
– Develop the Program Charter
– Develop the Program Management Plan
– Develop the Program Control and Closure Plan
§ Length and Presentation:
– 5000 words – Arial 11 point
– 5-10 slide presentation
– Tools and Templates used and included in the submission
§ Criteria by which your assignment will be marked: The quality of the definition of the required
Program office processes to manage the successful delivery of the recommended
portfolio/Program
– Quality of the Program Charter
– Quality of the Program Management Plan
– Quality of the Program Control and Closure Plan
– Demonstrated ability to transfer or apply concepts covered in the course to this topic
– Demonstrated awareness of and insight with regard to this topic
– Application of theory and principles into practice
– Demonstrated quality and depth of analysis
– Demonstrated quality of writing
Slide 6
University of Adelaide – Portfolio and Program Management (7040)
8. Introduction to Program Management
Introduction to Program Management
In this session:
§ How do Programs interact with Portfolios and Projects?
§ What is Program Management?
§ Key Steps of Program Management
§ Key Roles and Responsibilities
Slide 8
University of Adelaide – Portfolio and Program Management (7040)
Program Initiation
Program Business Case
1. Program Mission Statement
• Program Statement
• Program Background
• Future Desired State
2. Program Business Case Summary
• Program Outcomes and Benefits
• Investment and Resourcing Request
3. Program Measures and Targets
• Program Objectives
• Program Measures and Targets
4. Program Risks
5. Initial Program Governance
6. Program Planning Phase Investment
• Deliverables
• Schedule
• Resources
• Cost
7. Approval and Signoff
What is in a Program Business Case?
Slide 9
University of Adelaide – Portfolio and Program Management (7040)
Business Case versus Charter
Program Business Case Program Charter
Slide 10
Source: PMI ‘The Standard for Program Management – 3rd edition’, p153
Why Do the Program Approve the Program
University of Adelaide – Portfolio and Program Management (7040)
From a practical perspective, many
organisations combine both concepts
into a Program Business Case
University of Adelaide – Portfolio and Program Management (7040)
§ In order to select the right work an organisation must:
– Have a system that measures organisational performance and
identifies the ‘gaps’ between forecasted performance, and
targeted performance.
– Have processes that align new initiatives with the strategy and
have processes to monitor and measure its contribution to ‘filling
the gaps’.
§ In order for an organisation to execute work correctly, it must have:
– A robust framework of delivering benefits from initiatives in a
controlled manner.
– The right capabilities and supporting tools, templates, processes,
and systems.
Portfolio
Management
Project / Program
Management
How do Programs interact with Portfolios and Projects?
How does an organisation select the right work, then execute the work correctly?
Slide 11
University of Adelaide – Portfolio and Program Management (7040)
How do Programs interact with Portfolios and Projects?
Source: PMI ‘The Standard for Program Management – 4th Edition’, p8
Slide 12
What is Program Management?
§ Program Management is… The application of knowledge skills, tools, and
techniques to a Program to meet the Program requirements and to obtain
benefits and control not available by managing project individually. Source:
PMI ‘The Standard for Program Management – 3rd Edition’
§ Common activities include:
– Coordinating the execution of components, work, or phases
– Resolving resource constraints and conflicts that affect multiple projects within the
Program
– Managing risk activities that run across multiple components, such as contingency
planning
– Aligning projects and a Program to support a strategic goal/objective
– Resolving issues and variations to scope/budget/schedule/quality within a shared
governance structure
– Tailoring Program processes, tools, systems, and allocating people with the right skill sets
to a Program.
Slide 13
University of Adelaide – Portfolio and Program Management (7040)
• Strategic Alignment – Program outcomes
that provide benefits aligned to the
organisational strategy.
• Benefits Management – identifies, validates,
maximises and delivers the Program benefits.
• Stakeholder Engagement – identifies and
analyses stakeholder needs and manages
their expectations, including via
communications.
• Governance – enables and preforms
decision making, Program support and
oversight (including reporting).
• Life Cycle Management – facilitates
effective Program definition, delivery and
closure.
Slide 14
What is Program Management?
University of Adelaide – Portfolio and Program Management (7040)
Source: adapted from PMI ‘The Standard for Program Management – 4th edition’, p24, 25
The Program for your Assignment
Group Exercise
§ Review your Portfolio organisation from Assessment 1 and collaborate
within your team to select an individual Program to use for Assessment 2.
§ Each person should have a different Program.
§ Identify the name of the Program and why you have chosen it.
§ For your chosen Program identify the scope (both in and out of scope) and
the headline risks.
§ Your Portfolio Framework should provide you with guidance as to why the
Program should be undertaken.
§ By end of Day 4, please email me and confirm your Program name and
three reasons why you chose it.
Slide 15
45
mins
University of Adelaide – Portfolio and Program Management (7040)
Video: BBC – Driving Towards A Digital Future (PMI)
Program Setup
Program Execution (Knowledge Areas)
Program Governance
Define Scope & Manage
Variation
Planning & Control
Quality Assurance
Change Management &
Communications
Benefits Management and
Realisation
Program Closure Realisation Benefits
Project
Development
(Funding, Delivery
Options, Business
Case)
Procurement
Planning &
Approvals
Engineering /
Design
Construction /
Implementation
Commissioning
Ongoing
Operations
Project Lifecycle
Projects within the
Program
Program Management Lifecycle
Slide 16
University of Adelaide – Portfolio and Program Management (7040)
Program Delivery
Change Management &
Communications:
Program Governance:
Benefits Management:
Define Scope &
Manage Variation:
Planning & Control:
Program Performance
Management:
A. Governance (Project Structure, Steering Committee, Roles and Responsibilities,
Sponsor, Project and SC Reporting)
B. Scope Definition (WBS, Work streams, Activities, Tasks & Key Deliverables)
C. Variation Control Procedures
D. Planning, Milestones & Scheduling, E. Resource Management, F. Dependency
Management, G. Program Cost Control, H. Risk and Issue Management, I.
Procurement, Supplier and Contract Management
J. Cross Program Performance Monitoring & Reporting
K. Quality Assurance (Stage Gate & Periodic Reviews, Testing, Quality Review Groups)
L. People Change Management, M. Stakeholder Management
N. Benefits realisation and planning (Define Benefits, Establish KPIs, Define
Accountabilities, Tracking & Benefits Realisation)
Slide 17
discuss: what do you see that is
different from Project Management?
University of Adelaide – Portfolio and Program Management (7040)
University of Adelaide – Portfolio and Program Management (7040)
Key Roles and Responsibilities
§ Program Sponsor – The individual accountable for delivering the Program benefits to the
organisation for the resources committed. The sponsor also represents the members of senior
management who define and set the strategic direction of the firm including investment
decisions.
§ Program Steering Committee – A group of key stakeholders who are empowered to make
decisions about the Program including scope, budget, schedule, and escalated decisions,
risks and issues.
§ Program Manager – responsible for planning and managing the execution of the Program.
Ensures that the Program executes according to plan and achieves all goals and benefits
which support organisational strategy.
§ Project Manager – responsible for the planning, execution, tracking and delivery of their
projects that support Program objectives.
§ Program Management Office (PgMO) – provides support to the execution of the Program by
providing central administrative support, and/or advice and direction, and/or Program ‘expert’
human resources. The PgMO is also generally responsible for governance and performance
monitoring.
§ Project Teams – Responsible for performing planned activities at the project level.
Adapted from: PMI ‘The Standard for Program Management – 4th Edition’, p80-85
Slide 18
9. Program Setup
In this session:
§ Overview
§ Establishing a Program Management Office (PgMO)
§ Developing the Program Management Plan
Slide 20
Develop Program Plan & Procedures
University of Adelaide – Portfolio and Program Management (7040)
§ Overview: the purpose of this phase is to set-up and agree the initial scope,
high-level timescales, proposed governance and objectives for the
performance to support the Program Business Case.
§ This phase will also define and implement controls for executing the
Program along with a Program Management Office (PgMO).
§ The outcomes from this phase should be:
– All parties will have a shared understanding of the work to be completed and formal
agreement can be reached on timescales and deliverables for the Program.
– The organisation and the team members have a common vision and goals, clear roles,
accountability and responsibility and the energy and enthusiasm to deliver a successful
Program.
– The project initiation starts the process of identification of benefits for the wider
transformation and should be used to help confirm the expected benefits that the
organisation will be seeking from the Program.
– Roles and responsibilities within the Program will be clearly defined with the procedures
and reporting processes agreed.
§ Similar in nature to a Project Management Plan, although more strategic
and less specific (due to longer term nature of Programs).
Slide 21
Develop Program Management Plan
University of Adelaide – Portfolio and Program Management (7040)
University of Adelaide – Portfolio and Program Management (7040)
§ Program Management Plan
§ Roadmap
§ Reporting Templates (Steering
Committee and Project Level)
§ Benefits Realisation Plan
§ Implement a Program Management
Office
Develop Program Management Plan
Slide 22
Source: PMI ‘The Standard for Program Management
– 4thd edition’, p37 & p91
University of Adelaide – Portfolio and Program Management (7040)
§ The Program planning activities are iterative and dependent on the
information generated at the Project level.
§ Whilst most of the planning is done during this phase, planning will need to
be iterative due to the extended length a multi-project nature of a Program.
§ Milestones where planning will need to be revisited include:
– New component initiation. E.g. A new project starts.
– Component closure. E.g. a system go-live.
– Organisational financial year or reporting cycles.
– Major Internal or external changes (e.g. mergers, acquisitions, strategy changes).
– If a risk or issue has such a major impact, that re-planning is deemed necessary.
Iterative Nature of Planning in Programs
Slide 23
§ Purpose: A PgMO supports Program Decision making by providing
analysis, reporting and Program administration services.
§ Experience shows that when delivering complex Programs where many
work-streams involved, a PgMO plays a vital part in the delivery and
ultimate success of the Program.
§ A PgMO structure can be extremely effective in providing an
implementation and measurement structure that enhances the capacity
and capability of the organisation to achieve sustainable transformation.
§ Effectively, the Program Manager ‘owns’ the PgMO.
§ Success will depend on achieving the right mix of processes, tools and
people, but it must be focussed on outcomes, not just the process.
§ The design and implementation of a PgMO will have an number of inputs
(see next slide).
Slide 24
Establishing a Program Management Office (PgMO)
University of Adelaide – Portfolio and Program Management (7040)
Slide 25
Establishing a Program Management Office (PgMO)
University of Adelaide – Portfolio and Program Management (7040)
PgMO
Program
Business
Case
Program
Plan
Portfolio Management
Office
Organisational Project Maturity
Benefits
Realisation
Plan
Organisational
Change
Management
Plan
1. Supportive
2. Controlling
3. Directive
Aligned to the ‘Nature’ of
Implementation
Organisational Resources
The design and implementation of a PgMO will have an number of inputs:
Discuss: why doesn’t the
Portfolio Management Office
run the Program?
Establishing a Program Management Office (PgMO)
Research indicates that the leading
causes of project success include:
§ Formal governance and change
approval guidelines;
§ Business owners accountable for
project results;
§ Measurement and feedback systems;
§ Formal priorities for requests and
changes;
§ Regular communication;
§ Clear tracking of people, skills and
time;
§ Inventory of skill-based competencies;
and
§ Automated project management tools.
And that the leading causes of project
failure include:
§ Inadequate planning and incomplete
requirements;
§ Insufficient involvement of
stakeholders;
§ Infrequent communication with the
business owners;
§ Poor containment of the scope;
§ Poor management of expectations,
roles and responsibilities;
§ Ineffective resource management;
§ Incomplete deliverables between
groups;
§ No authority to overcome impediments;
and
§ Poor estimations.
University of Adelaide – Portfolio and Program Management (7040) Slide 26
Discuss: what else could cause
Program / project failure?
University of Adelaide – Portfolio and Program Management (7040)
Implementation Considerations
§ A PgMO must not be separate to other Project Offices in the organisation. As such,
the Program may share resources and services from a Portfolio Management
Office.
§ The PgMO must also support the Projects that lie underneath it.
§ Various options for the ‘style and nature’ of a PgMO include:
– Supportive PgMO: Generally provides support in the form of: on-demand expertise; templates; leading
practices; access to learnings from other Programs/projects. Can work where projects are done
successfully in a loosely controlled manner and where further control is unnecessary.
– Controlling PgMO: Used where behaviour and compliance needs to be “reigned-in”. Organisation
provides support but is also mandated to be used, including: methods, templates, forms, governance
and compliance through regular reviews conducted by the PgMO.
– Directive PgMO: Goes beyond control and takes over the management of Programs by providing
professional Program managers. Guarantees a high level of consistency and compliance across all
Programs / projects.
§ Choosing which option to implement, along with processes, tools and
templates will be greatly dependant on the Project Management maturity of
the organisation.
Establishing a Program Management Office (PgMO)
Slide 27
Discuss: what other factors could
influence the type of PgMO?
University of Adelaide – Portfolio and Program Management (7040)
| Level 2 – Informal Processes We are here |
|
| Level 4 – Monitored Processes | |
| Level 3 – Standardised Processes | |
| Level 5 – Optimised Processes | |
| Level 1 – Unreliable Processes | |
| Manual process | Automated process |
The illustration below uses a five-level scale to consider the process maturity of a PgMO and to
highlight the key milestones on the implementation journey
Level of maturity*
Yr1 Yr2 Yr3 Yr4
Sporadic use of project management. Formal
documentation and the knowledge of project
management are lacking. No training. Little
organisational support.
| A formally approved PM methodology is lacking. Basic processes; not standard on all projects. Project participants are informed about PM standards, but do not apply appropriately. Lessons not gathered |
| A PM method is developed, approved and used. Project participants are informed about PM standards. Most projects use the standards. Management support use of standards. Focus on individual projects |
An integrated project lifecycle is used.
Application of the standards is monitored and
fixe for all projects. Projects support the
strategic plan and benefits are tracked.
Internal training is in place. PMO established
A regular analysis and renewal of the PM
method is conducted. Lessons learned files
created. Knowledge is transferred. Process in
place to improve project performance. Focus
is on continuous improvement
* Source – PwC Global PMO Maturity Survey, 2004 and 2007
Establishing a Program Management Office (PgMO)
Slide 28
University of Adelaide – Portfolio and Program Management (7040)
…..and in defining the characteristics of a PMO organisation as it continues on the
maturity curve
| Supportive PMO |
| Controlling PMO |
| Directive PMO |
* Source – Projectsmart.co.uk
| Level 2 – Informal Processes We are here |
| Level 4 – Monitored Processes |
| Level 3 – Standardised Processes |
| Level 5 – Optimised Processes |
| Level 1 – Unreliable Processes |
| Manual process Automated process |
Yr1 Yr2 Yr3 Yr4
PMO Characteristics*
Establishing a Program Management Office (PgMO)
Slide 29
University of Adelaide – Portfolio and Program Management (7040)
Activities
1. Define and Implement Projects:
§ Very similar in nature to Portfolio Management (Session 1). The exception is that the aim
should be to undertake this once or twice over the life of the Program.
§ Define the processes and procedures to be used in the cataloguing, categorisation,
evaluation and prioritisation of transformation opportunities.
§ Activities include:
• Identify the benefits-defined categories for the Program;
• Oversee the development of evaluation criteria and scoring mechanisms for use in
evaluating opportunities;
• Prioritise projects in terms of strategic value to the Program (i.e. transformation
benefits), based upon cross-portfolio evaluation and scoring;
• Balance prioritised opportunities against organisational and logistical constraints,
resource availability and risk tolerance to promote an optimal project portfolio;
2. Define and Implement Program Planning
§ Define the processes and procedures for managing traditional Program constraints
(budget, schedule and scope/quality) and related concerns, such as logistics, resource
allocation and project interdependencies.
3. Define and Implement Resource Management Procedures
Establishing a Program Management Office (PgMO)
Slide 30
University of Adelaide – Portfolio and Program Management (7040)
Activities
4. Define and Implement Monitoring and Reporting:
§ Define the processes and procedures to be used to monitor and report on the Program
§ Develop appropriate performance metrics and key performance indicators for individual
projects and for the overall Program
§ Determine which stakeholder groups will be consumers of performance information and
determine the reporting requirements for each group.
5. Define and Implement Quality Management:
§ Review existing quality management policies and standards and determine whether
additional standards are required.
§ Ensure that the quality management policies and standards relating to both Program
management and Program delivery are addressed.
6. Define and Implement Risk and Issue Management:
§ Define and agree the processes and associated roles and responsibilities for managing
risks that affect the Program.
7. Define and Implement Document Management:
8. Mobilise the PgMO Team
Establishing a Program Management Office (PgMO)
Slide 31
University of Adelaide – Portfolio and Program Management (7040)
PgMO Activities
1. Facilitate Execution
2. Enhance Capability and Support Cultural Change
3. Support
Firm-Wide Communications Training and Supporting
Material
Organisational Project
Maturity Knowledge Management Change Management
Establish a PMO Helpdesk and Interface
(e.g. Website or Telephone)
Planning & Scheduling
Resource Management
Dependency Management
Assumption Management
Project Finance
Management
Business Case Monitoring
& Benefits Realisation
Communication
Management
Stakeholder Management
Project Monitoring &
Reporting
Risk & Issue Management
Scope Management &
Change Control
Supplier Management
Quality Management
Knowledge & Office
Management
Project Close and Post
Implementation Reviews
Post Implementation
Benefits Monitoring
Financial Evaluation
Resource and Time
Management and Reporting
Governance Structure
Implement and Support a Project
Portfolio Management Layer Enterprise System
Program Layer
Project Layer
Implement / Support Policies Implement / Support Execution Frameworks Other Support
Planning Cost / Benefits Management Communications Project Control Quality & Standards Close
Establishing a Program Management Office (PgMO)
Activities of a PgMO
Slide 32
University of Adelaide – Portfolio and Program Management (7040)
Establishing a Program Management Office (PgMO)
Example PgMO reporting structure
Slide 33
Discuss: what are different types
of reporting structures that might
apply to other organisations?
University of Adelaide – Portfolio and Program Management (7040)
Establishing a Program Management Office (PgMO)
Program / Project Progress Report should capture financial and non-financial
performance against the delivery of the plans, for example:
| AUTHOR DATE |
SHA ORGANISATION |
IN | GS – Full year (£’000s) | ||||||||
| Workstream programme |
AUTHOR DATE |
SHA ORGANISATION |
|||||||||
| /work | Original | Original | Revised V | ||||||||
| title SUMMAR |
target Y UPDATE |
Actual | Variance s |
% Variance t |
target d |
target | ariance | % Variance | |||
| – – summary of the key ri |
0.0% 0.0% ks going forward, to |
– – |
0.0% 0.0% |
E.g. indica | tion as to whe | ther plan is on track, | al savings to | ate | |||
| – | 0.0% | – | 0.0% | ||||||||
| – | 0.0% | – | 0.0% AUTHO |
FINANCIA | L PERF | ORMA | NCE UPDATE OR |
R | GANISATION | ||
| TOTAL | – | 0.0% | – | 0.0% DAT |
FORTNIGHTLY R | EPORTING – from Turnaround Plan SHA |
E | ||||
| Total savings Actual |
Total savings Variance |
programme | title | target | % Variance | target | target | Variance | Variance | ||
| associated (£’m) | associated (%) | Comments relat | ing to progre | ss against m | ilestones | ||||||
| Overall position Check |
0 No |
0 RRECT I Total savings |
0. NCORR |
0% ECT Total savings – – |
CO of |
i 0.0% 0.0% |
s | m | – – |
0.0% 0.0% |
|
| GENERAL COM | MENTS – OPTIO RED workstream |
AL | |||||||||
| N | workstreams | associated (£’m) | associated (%) – |
Comments relat 0.0% |
ng to progre | s against | i | lestones – |
TOTAL | 0.0% | |
| SUMMARY UPDATE E.g. indication as to whether plan is on track, summary of the key risks going forward, total savings to date |
|||||||||||
| FINANCIAL PERFORMANCE UPDATE | |||||||||||
| FORTNIGHTLY REPORTING – from Turnaround Plan COST SAVINGS ACHIEVED – To date (£’000s) TOTAL COST SAV |
|||||||||||
| FORTNIGHTLY | REPORTING | o | |||||||||
| MILESTONES i. | e. Key events (se Workstream/ |
e guidanc work E.g. indic |
e note for allo Original ation as to wh |
cation to RAG workst ether plan is on track |
ream groups below) , summary of the key r |
Original tal savings to |
Revised date |
% | isks going forward, t | ||
| RED workstream | – – |
0.0% 0.0% |
– – |
0.0% 0.0% |
|||||||
| s | 0. – – HIEVED – To dat |
0% e (£’ |
0.0% 0.0% 000s) |
– – |
0.0% 0.0% |
COST SAVING | S AC | ||||
| AMBER workstr | TOTAL | – | 0.0 | % | – | 0.0% | % Variance | ||||
| eams | 0.0% V |
W | orkstream/work programme title |
Original target |
A | ctual | ariance | % Variance | Original target | Revised target | Variance |
| GREEN Workst | FORTNIGHTLY | REPOR | TING | ||||||||
| reams MILESTONES i.e |
0.0% eam gro |
. Key e | vents (see guidance | note for allocati | on to R | AG workstr | ups below) – – |
0.0% 0.0% |
– – |
0.0% 0.0% |
|
| SHA TRANSITI | NAL PATCH TU GREEN Workstr |
NAROUND DIRECTO eams |
COMMENTS N w |
0.0 l savings ciated (£’m) |
% T as |
of orkstreams |
Tota asso |
tal savings sociated (%) |
Comments relating to p | ro | gress against m |
| O | R AMBER workstre |
R ams |
0.0% o |
o | ilestones | ||||||
| Overall position Check |
0 RED workstreams |
% CT 0.0% |
COR | ||||||||
| COST SAVINGS ACHIEVED – To date (£’000s) SUMMARY UPDATE |
|||||||||||
| s FORTNIGHTLY REPO |
0.0% | RTING | |||||||||
| Overall position 0 0 0.0% Check CORRECT INCORRECT |
|||||||||||
| GENERAL COMMENTS – OPTIONAL | |||||||||||
| MILESTONES i.e. Key | events (see guidanc | e note for allocation to | RAG workstream gro | ups below) | |||||||
| AMBER workstreams | 0.0% | ||||||||||
| GREEN Workstreams | 0.0% | ||||||||||
| SHA TRANSITIONAL PATCH TURNAROUND DIRECTOR COMMENTS |
No of
workstreams
NON-FINANCIAL PERFORMANCE UPDATE
0 0.0RECT INCORREGENERAL COMMENTS – OPTIONAL
TOTAL COST SAVINGS – Full year (£’000s)
SHA TRANSITIONAL PATCH TURNAROUND DIRECTOR COMMENTS
NON-FINANCIAL PERFORMANCE UPDATE
FINANCIAL PERFORMANCE UPDATE
FORTNIGHTLY REPORTING – from Turnaround Plan
TOTAL COST SAVINGS – Full year (£’000s)
NON-FINANCIAL PERFORMANCE UPDATE
FINANCIAL PERFORMANCE
• Cost savings achieved – To date (Target vs Actual)
• Total cost savings – Full year (Original target vs
Revised target)
• Finance information from Departmental financial
information system
NON-FINANCIAL PERFORMANCE
• Milestone analysis (RAG)
• Key risks/issues (e.g. Resource, Stakeholders,
Other)
• Operational level indicators
Financial Performance
• Cost savings achieved – To date (Target vs Actual)
• Total cost savings – Full year (Original target vs Revised
target)
• Finance information from Departmental financial
information system
Non-Financial Performance
• Milestone analysis (RAG)
• Key risks/issues (e.g Resource, Stakeholders, other)
• Operational level indicators
Slide 34
University of Adelaide – Portfolio and Program Management (7040)
Establishing a Program Management Office (PgMO)
§ The development of realistic and appropriate project plans is key to the
delivery of a Program.
§ Plans should be submitted to the PgMO to ensure consistency and
deliverability against overall Program objectives.
§ The PgMO should develop a ‘checklist criteria’ to review against the plans.
Examples of the criteria include:
– Evidence of a robust process behind the development of the plan;
– Engagement and buy-in from any ‘stakeholders’ affected;
– Commercial and financial viability;
– Clarity and definition of plans;
– Process and structure for the delivery of plans;
– Risk assessment and management strategy; and
– Detailed project and/or implementation plans.
Slide 35
University of Adelaide – Portfolio and Program Management (7040)
Developing a Program Management Plan
Program Plan
1. Introduction
1. Business Need / Background
2. Program Description
3. Goals and Objectives
2. Program Execution
1. Program WBS and Schedule
2. Program Scope and Variation Management
3. Program Resource Analysis
4. Program Constraints
5. Program Infrastructure
6. Procurement Management
7. Procedures, Standards, Methods and/or Tools to be used
3. Program Cost Management
1. Program Budget and Funds
4. Program Communications
1. Program Stakeholders
2. Reporting
3. Documentation Management
4. Knowledge Management
5. Program Risk and Quality
1. Program Quality Management
2. Risk Management Plan
6. Program Governance
1. Resources for Managing the Program
2. Program Organisational Structure
3. Schedule of Meetings
What is in a Program Management Plan?
Slide 36
A typical template for a
Program Management Plan
University of Adelaide – Portfolio and Program Management (7040)
Developing a Program Management Plan
Purpose
§ Define the scope of the Program i.e., inclusions and exclusions, constraints and
risks
§ Refine and document fundamental assumptions underlying the preliminary Program
Business Case, as well any dependencies or requirements of the organisation (e.g.,
level of sponsorship, access to information, resource commitments, availability of
key personnel)
§ Ensure that all stakeholders (e.g., executive, functional area leaders, project
managers for the projects under/associated with the Program) have a common and
agreed understanding of the purpose of the project, the objectives, what will be
delivered and the responsibilities in achieving the stated goals.
§ Provide a baseline against which any need for alterations to the Program can be
measured. Once the Program Plan is approved, any requested amendments are
subject to Scope and Variation Control procedures that must be sanctioned by
the Program Sponsor and Steering Committee before being incorporated
§ Approve the scope, at a minimum, for the next Stage and an allocation of initial
funding and resources for the Program.
Slide 37
Developing a Program Management Plan
Considerations
§ Acceptance of the Program Management Plan is taken to mean the
requirements, assumptions and risks are understood and that commitment
is given to providing the resources and effort identified as necessary for
successful completion of the Program. In this way, the plan acts as a
formal agreement between the Program Sponsor, the business and the
Program teams.
§ The Program Management Plan may undergo several revisions throughout
the course of the Program. In some cases, the Program Management Plan
may be developed during Program initiation. In other circumstances, it may
be withheld or maintained as a “draft” until certain assessment activities
have been completed.
Slide 38
University of Adelaide – Portfolio and Program Management (7040)
§ Program WBS: the WBS is set at a Program Level to demonstrate how
deliverables, products, services, or results of work will be delivered
§ Program Scope: this will contain a detailed list of what is in and out of scope for the
Program. This may cover what Departments, Technology, Processes, People,
Products, Suppliers are included. This section should also include how Scope
Variation will be covered
§ Program Resources: for the execution of projects within the Program. This will
generally be very high level and is dependant on project level information. The
purpose is to have an understanding on the overall resourcing impact on the
organisation, how much the resources will cost, and whether this is available within
the Portfolio Constraints
§ Goals and Objectives: are essentially what the Program is going to achieve and
deliver. While these are covered in the Program Business Case, more detail will be
required in this phase to adequately support Benefits Realisation.
§ Program Stakeholders and Communications: the stakeholders should at this
stage be identified and recorded in a register along with their needs and desires.
The register should also record what reports they should receive along with
frequency
Slide 39
Developing a Program Management Plan
University of Adelaide – Portfolio and Program Management (7040)
University of Adelaide – Portfolio and Program Management (7040)
Developing a Program Management Plan
§ Program Schedule: identifies the components (mostly projects) and the key start
and end dates. It shows the key milestones and dependencies.
§ Program Budget and Funds:
– Program Financial Plan: Will describe how the Program Budget will be managed and distributed.
– Program Cost Estimates: are an aggregate of all project costs and Program management activities.
– Program Budget or Available Funds: Will identify the total budget for achieving the transformational
goals and objectives. This may be dependant on Business Fiscal Planning.
§ Program Infrastructure: will define the organisational and technical infrastructure
in which work will be executed. E.g. building, facilities, equipment, technology etc.
§ Program Quality Management: will define the quality processes in place to
support the Program deliverables.
§ Program Risk Management: will cover the approach, processes, escalation
procedures, mitigation strategies, and roles and responsibilities for risks identified
affecting the Program.
§ Program Procurement: More focused on the procedures and approvals required.
It may contain the schedule and estimations of major procurements to achieve the
transformational objectives. Smaller Procurements should be left to be managed by
Project Managers.
Slide 40
Estimating and Contingencies
Slide 41
Developing a Program Management Plan
University of Adelaide – Portfolio and Program Management (7040)
Program
Initiation
Program
Planning
Program
Delivery
Concept
Unknown Benefits,
Targets, KPIs
+/- 70% Contingency
+/- 15% Contingency
| Build a Program Business Case that defines Goals, Targets and Benefits to within +/- 70% accuracy |
| Build a Program Management Plan that refines Goals, Targets and Benefits to within +/- 15% accuracy |
| Deliver and manage the Program within +/- 15% constraints. If a risk or issue impacts the Program outside of the constraints, than the Program may need to be halted until treated |
– Delivery of Benefits +
Contingencies will
depend on the Risk
Appetite of the
organisation
Group Exercise
§ Your chance to ask questions.
§ Review pages 37-42.
§ Check your assignment requirements.
§ Each table asks me two questions.
§ Is there anything missing?
Slide 42
Program Management Plan
30
mins
University of Adelaide – Portfolio and Program Management (7040)
10. Program Delivery
In this session
§ Overview
§ Program Governance
§ Define Scope and Manage Variation
§ Planning & Control
§ Program Performance Management
§ Change Management & Communications
§ Benefits Management
Slide 44
Program Delivery
University of Adelaide – Portfolio and Program Management (7040)
Slide 45
Program Delivery
University of Adelaide – Portfolio and Program Management (7040)
Program Delivery
Change Management &
Communications:
Program Governance:
Benefits Management:
Define Scope &
Manage Variation:
Planning & Control:
Program Performance
Management:
A. Governance (Project Structure, Steering Committee, Roles and Responsibilities,
Sponsor, Project and SC Reporting)
B. Scope Definition (WBS, Work streams, Activities, Tasks & Key Deliverables)
C. Variation Control Procedures
D. Planning, Milestones & Scheduling, E. Resource Management, F. Dependency
Management, G. Program Cost Control, H. Risk and Issue Management, I.
Procurement, Supplier and Contract Management
J. Cross Program Performance Monitoring & Reporting
K. Quality Assurance (Stage Gate & Periodic Reviews, Testing, Quality Review Groups)
L. People Change Management, M. Stakeholder Management
N. Benefits realisation and planning (Define Benefits, Establish KPIs, Define
Accountabilities, Tracking & Benefits Realisation)
§ Overview: the purpose of this control area is to agree the leadership and team
structure for the governance of the Program, along with roles, responsibilities and
processes for governing the execution and closure of a Program.
§ The objectives of developing the governance model are to:
– Establish clear roles and responsibilities regarding senior level guidance
– Establish a decision making and authority policy
– Ensure accountability for results across the Program
– Promote transparency into key Program decisions across key stakeholder groups
§ Note: Program Governance has a interdependency with the Change Management
and Communications and Program Performance Management control areas due to
the following:
– Influential stakeholder groups (e.g. business units and functional leaders) that will be impacted by the
Program will typically have a voice in the decisions made during the life of the Program.
– Transparency and inclusiveness are typically critical to the organisation’s embrace and adoption of
transformed structures, policies, processes and systems.
– Governance reporting and meetings will rely on how performance is going to be measured and tracked,
and what quality controls (e.g. Stage Gates) will be implemented.
§ This section is based on common practice, however, no two organisations are the
same. The level of participation of organisation leadership and its comfort in
delegating authority will differ for every organisation.
Slide 46
Program Governance
University of Adelaide – Portfolio and Program Management (7040)
Why have this control?
§ Formal governance is essential to ensure the Program stays on track and
delivers benefits to the organisation. In fact, effective governance is one of
the most crucial controls influencing the likelihood of Program success!
§ Creating and documenting the structures, roles and responsibilities
removes ambiguity about how the Program will be run, helping to ensure
that any issues and risks arising during later stages have the procedures
and structures in place to be able to resolve them quickly.
§ Roles and responsibilities within the Program will be clearly defined with
the procedures and reporting processes agreed. This typically leads to a
more successfully run Program. A RACI Matrix is a good tool for this.
Slide 47
Program Governance
University of Adelaide – Portfolio and Program Management (7040)
Slide 48
Program Governance
University of Adelaide – Portfolio and Program Management (7040)
| Inputs | |
| Preliminary Program Governance Structure | From Program Business Case and refined in Program Plan |
| Outputs | |
| Assessed Stakeholders | RACI matrix that outlines that is responsible, accountable, consulted and informed. |
| Executive Leadership Roles and Responsibilities |
Executive Leadership roles and responsibilities documented, presented and agreed |
| Steering Committee structure, roles and responsibilities |
Steering Committee roles and responsibilities documented, presented and agreed |
| Program Sponsor and Program Manager roles and responsibilities |
Program Sponsor and Program Manager roles and responsibilities documented, presented and agreed |
| Governance Meeting Schedule | Should include regular meetings for various groups managing the Program as well as stage gate reviews and presentations to executive management. |
| Governance Decision Processes | How decisions should be escalated, conducted and communicated. This should provide clarity of what a Project Manager can act on as opposed to the Program Manager. |
| Supporting Reports and Tools | E.g. Steering Committee Packs, Progress Reports, Stakeholder Maps, Executive Leadership Presentations |
Setting-up and implementing the governance structure for the Program
§ Assess Stakeholders
– Determining key Program stakeholders from the outset is a critical input into the design of
an effective governance structure.
– A RACI chart can be used to categorise the stakeholders based on whether they are
ultimately responsible for individual projects or overall Program success, are subject
matter experts or require information updates only (a RACI matrix indicates who is
Responsible, Accountable, Consulted and/or Informed).
§ Agreement and implementation of the governance structure
– Executive Leadership: typically is responsible for ensuring the business objectives are
met and delivered within agreed timescale and budget tolerances
– Steering Committee: primary role is to ensure that benefits have been clearly defined and
to hold the Program Manager, Program Sponsor and Project Managers accountable for
the realisation of project outputs and business benefits.
– Program Sponsor: ultimately responsible for the delivery of the Program
– Program Manager: manages the ‘day-to-day’ planning and execution of the Program and
supports the Program Sponsor.
Slide 49
Program Governance Activities
University of Adelaide – Portfolio and Program Management (7040)
University of Adelaide – Portfolio and Program Management (7040)
Program Governance
§ Agreement and implementation of the governance processes
– Decision Making
– Communication and Reporting
– Document Approvals
– Meeting (i.e. Preparation, Execution and Post-Meeting Activities)
– Benefits Monitoring
– Risk and Issue Management
§ Agreement and implementation of the schedule of meetings
– See next slide for example
§ Agreement and implementation of the reports and tools to be used
– Steering Committee and Executive Reporting Packs
– Stakeholder Map and Reports
Slide 50
Selecting the Project Sponsor and Steering Committee:
§ Is the person senior enough to remove obstacles, provide funding, present
and discuss the Program with senior management?
§ Does the person have a passion for the Program? Research has shown
that one of the most successful approaches is if the person has a real
passion for the Program and is self-appointed to either role.
§ Does the member have enough technical knowledge of the proposed
solution and impacted department to effectively aid decision making and
help the Program achieve the right outcomes?
Slide 51
Program Governance
University of Adelaide – Portfolio and Program Management (7040)
Ideal Characteristics of a Sponsor
§ Sets aside time to meet consistently with the Program Manager, Program Team,
Steering Committee, Stakeholders and Senior Management
§ Plays an active role in planning the Program and setting it up for success
§ Drives and enforces quality and risk management controls
§ Acts as an Advisor to the Program Manager
§ Removes Obstacles
§ Reviews and Approves any Statements of Work/Contracts and Planning
Documents
§ Gets involved in assigning Program roles and responsibilities
§ Takes accountability when things go wrong, works to resolve Program issues
§ Knows what the Program deliverables are going to be and is not surprised if they
deviated since planning.
§ Praises others for the success of the Program. Organises and approves funding for
a team celebration
Slide 52
Program Governance
University of Adelaide – Portfolio and Program Management (7040)
Question… what are some of the things a
Sponsor could do that would hinder the
Program?
University of Adelaide – Portfolio and Program Management (7040)
Program Governance
Executive
Board
| Portfolio Management Board |
| Portfolio Manager |
| Project Manager |
Program Manager |
| Project Manager |
Project Manager |
PMO (Provides support at all levels)
Program
Sponsor
Program
Steering
Committee
| Project Team |
| Project Team |
| Customer / Vendor |
Example Program Governance Structure
Notes:
1. The Sponsor may be from
the executive leadership
team. Hence it may be more
efficient to have the
Program Manager report to
the Portfolio Manager.
2. The Program Sponsor, with
support from the Manager
will report to the Steering
Committee.
3. Project Managers will report
into the Program Manager
4. In this example, there is an
organisation wider Portfolio
Management Office that
supports the portfolio, and
all Programs and projects
1
2
4
3
Slide 53
University of Adelaide – Portfolio and Program Management (7040)
Program Governance
Example Stage Gates
SG1: Prioritisation and approval of concept briefs completed.
Directing Sponsors and funding secured for selected
initiatives. Ready to proceed to Business Case.
SG2: Prioritisation and approval of selected initiatives
confirmed based on business case figures. Authorisation
to proceed to Execution.
Stage Gates
| Concept |
| Business Case |
Execution (Plan, Procure, Deliver and Control) |
Transition & Closure |
Operate and Realise Benefits |
| 2 | 3 | 4 | 5 |
1 End
SG1
Start
SG2 SG3 SG5
SG3: Initiative ready for handover to business.
SG4: Transition from Initiative to BAU completed and
demonstrated. Initiative closure confirmed by ELT.
SG5: Initiative benefits realised and verified through
regular Post Implementation Reviews.
SG4
Idea / Need
Notes: – A few exceptional initiatives will go through an “ideation” phase
– A few initiatives will realise benefits during the execution e.g. quick wins
Slide 54
University of Adelaide – Portfolio and Program Management (7040)
Program Governance
Program
Owner &
Manager
| Owner / Manager meeting (discuss Exec. Leadership outcomes) |
Owner / Manager meeting (prepare for Steering Committee) |
| Monthly Program Steering Committee |
Program Scorecard Distributed to Steering Committee |
| Monthly Exec. Leadership Meeting |
Program Summary or Program ‘Deep Dive’ Distributed to Exec. Leadership |
| Update PMS & document decisions for S.C Team |
Outcomes from decisions made on projects received from Steering Committee |
| Update ESM & document decisions for S.C |
Outcomes from decisions made on measures received from Steering Committee |
Exec
Meeting
Week
Week -1
(1 week
until the
Exec
Meeting)
Week -2
(2 weeks
until the
Exec
Meeting)
Week -3
(3 weeks
until the
Exec
Meeting)
Week -3
(3 weeks until
the Exec
Meeting)
DECISIONS and OUTCOMES
| Owner / Manager meeting (discuss Exec. Leadership outcomes) |
| Update PMS & document decisions for S.C Team |
| Update ESM & document decisions for S.C |
Measure
SME
Project
Manager
Steering
Committee
Executive
Leadership
Current Month Next Month
Example:
Governance
Calendar
Slide 55
Refining and Reviewing the Governance Structure
§ The high-level governance model presented in the Program Business Case
will typically be updated and refined during the course of the Planning
Phase (and potentially throughout the Program).
§ This structure may be modified (e.g. new members added and/or removed)
based on the stage and/or phase of the Program.
§ The Leadership Team should be reviewed for its effectiveness at every
major Gate Review of the Program.
§ Specific triggers that may indicate a need to revisit the governance model
include:
– Changes to the Enterprise’s existing Governance, Risk or Compliance framework;
– The identification of new Program stakeholders (e.g., when new opportunities, business
units and/or functions are added to the Program);
– When modifications to the Program scope are authorised; and
– When the organisation experiences changes in its leadership.
Slide 56
Program Governance
University of Adelaide – Portfolio and Program Management (7040)
University of Adelaide – Portfolio and Program Management (7040)
Define Scope & Manage Variation
§ Overview: this control area establishes the initial scope of the Program
and oversees the management of changes to scope and other variations
that will impact the Program.
§ Establishing the initial scope involves identifying supporting projects, key
milestones, phases, releases, work streams and preliminary schedule
estimates.
§ A Variation is defined as any alteration to the scope, requirements (both
business and technical) and deliverables that impacts the Program
baseline, timing, cost, and/or baseline.
§ Variations are assessed against the Program Business Case, Program
Plan, Program Benefits Realisation Plan and/or the Change Management
Plan.
§ Variation requests are tracked and Variation Request Reports are prepared
and distributed by the PgMO.
§ A variation is different from an issue. However, the approved resolution of
an issue may require the creation of a Variation Request.
Slide 57
Defining Scope – Activities
§ Allocation of projects to the Program structure and release points,
considering potential timescales for implementation of the project and
timescales for delivery of both one-off and ongoing benefits.
§ Creating a Program Work Breakdown Structure that captures which
projects are part of the Program and how projects are grouped into themes
or work streams. The WBS is also a good document to identify how
ongoing Program management and reporting of projects will occur during
execution of the Program.
§ Identification of Program Milestones with known inter-project dependencies
(within the Program and also external to the Program).
§ Agreement on benefits realisation/major release points of delivery from the
Program. This activity is iterative and is usually completed alongside the
development of a financial model that allows for identification of different
cost/benefit scenarios based upon the timing of releases and projects.
§ Preliminary estimates (work months) and schedules (or GANTT Charts)
Slide 58
Define Scope & Manage Variation
University of Adelaide – Portfolio and Program Management (7040)
Establishing a Program Work Breakdown Structure:
Slide 59
Define Scope & Manage Variation
University of Adelaide – Portfolio and Program Management (7040)
Program
2. Projects
2.2 Milestones / work stream
2.2.2 Phases / Activities
2.2.2.1. Steps
2.2.2.2. Steps
2.2.2.1.1 Task
2.2.2.1.2 Task
Program
Project 1 Project 2
Milestone 2.1
PgMO
Milestone 2.2 Milestone 2.3
| Activities 2.2.1 | Activities2.2.2 |
| Steps 2.2.2.1 |
Task 2.2.2.1.1
Supporting Tools and Systems
Group Exercise
§ Develop your Program WBS based on this model
§ A least to the level of 2.2 (previous page)
§ Discuss and share your Program WBS with your group.
Slide 60
45
mins
University of Adelaide – Portfolio and Program Management (7040)
Variation Management Manages the Impact of Program Change
§ Issues that now affect the Programs ability to deliver against one or more of:-
– Scope
– Timeframe
– Quality
– Cost
– Benefits
will require a variation to be raised. The decision delegation associated with the
variation will be determined by the magnitude of the change and the impact on the
forecast benefit delivery of the Program.
§ Changes in scope, delivery timeframes and quality are likely to have a direct impact
on the benefits to be delivered.
§ Changes in Program cost will impact the Return on Investment of the Program
§ A variation should outline the change being requested in terms of the impact to the
Program scope, delivery timeframe, quality and cost (both with and without the
change) and the flow-though impact assessment against the current forecast
benefits to be delivered if approved.
Slide 61
Define Scope & Manage Variation
University of Adelaide – Portfolio and Program Management (7040)
Variation Management Activities
§ Define the criteria to be used to raise a variation request.
§ Determine how variation requests are to be prioritised and categorised.
§ Define and Implement Variation Control Procedures:
– Define and agree the process for managing variations that impact the Program scope,
benefits, requirements, deliverables, schedule or costs and the associated roles and
responsibilities.
– Supporting guidance, forms and templates are created to help manage variations.
– A variation request is raised and authorised for any variation or deviation from the
Program baseline, timing or cost. The Program baseline, timing and cost are normally
initially defined or frozen when management signs off the completed Program Plan.
– The Program Plan should be updated to reflect variation control processes and
procedures and approved with the appropriate oversight body (e.g., executive leadership
and/or steering committee).
– Define how Variation Request are to be escalated!
Slide 62
Define Scope & Manage Variation
University of Adelaide – Portfolio and Program Management (7040)
Variation Requests
§ The PgMO administers variation requests from across the Program’s
stakeholders.
§ Manage the variations that impact the Program scope, benefits,
requirements, deliverables, schedule or costs. Use the agreed supporting
guidance, forms and templates.
§ Variation Approval may follow these steps:
– Refer to the defined change control processes;
– Review with appropriate stakeholders;
– Analyse for impact across project dependencies, preparing estimates of work effort and
timeline impacts;
– Formulate recommendation;
– Present to sponsor for approval, as appropriate; and
– Update Program Charter, as appropriate.
Slide 63
Define Scope & Manage Variation
University of Adelaide – Portfolio and Program Management (7040)
The Variation Request Form and Variation Request Log
§ Variation requests are recorded using a Variation Request Form. This form
is used to record and track information that:
– Describes the variation and the impact of not implementing the variation;
– Provides a detailed impact analysis of the proposed variation, highlighting the expected
changes to Program schedule, timing and cost;
– Identifies and approves the decision taken in relation to the implementation of the
variation e.g., rejected, approved, deferred; and
– Confirms that the variation has been successfully implemented.
§ A Variation Request Log is used to control and monitor the flow of the
Variation Request Forms. The maintenance of an overall Variation Request
Log also provides a basis on which to identify dependent and duplicate
variation requests.
Slide 64
Define Scope & Manage Variation
University of Adelaide – Portfolio and Program Management (7040)
Slide 65
Define Scope & Manage Variation
University of Adelaide – Portfolio and Program Management (7040)
Example of a Variation Request Log:
| Id No. | Date Raised | Owner | Description of Variation | Impact Summary | Type of Variation | Priority | Due Date | Status |
| ABC123 | 27/04/2019 | Thomas Edison | New equipment is required to maximise the light output |
Cost of new equipment, procurement and additional testing |
Cost and Time | High | 27/05/2019 | Open |
| ABC124 | 28/04/2019 | Thomas Edison | Change of design to light bulb to reduce size. |
Update design documentation. | Scope and Time | Low | 28/08/2019 | Open |
| Project / Program Name Discovery of Light Bulb Manager Thomas Edison Last Updated 27-April-2019 |
Variation Request Log
University of Adelaide – Portfolio and Program Management (7040)
Define Scope & Manage Variation
Example of how Variation Request may be reported:
Slide 66
Outstanding Change
Requests
8 6 4 2 0
10
12
14
16
18
20
Feb Mar Apr May
Number of Change Requests
Approved
Approval overdue
Awaiting Approval
Resolution overdue
Awaiting Resolution
Awaiting logging
Change Requests
Closed
Feb Mar Apr May
New Change
Requests Raised
Feb Mar Apr May
8 6 4 2 0
10
12
14
16
18
20
8 6 4 2 0
10
12
14
16
18
20
Fast-Track / Emergency Variation Process
§ The Fast-Track process is designed to cater for emergency situations where a quick response
is crucial.
§ This process does not mean that normal management controls are abandoned, only that the
variation procedure must be completed in a shorter time frame.
§ Approach – A Variation Request is raised and submitted to the Project Manager who then
escalates to the Program Manager at the earliest possible opportunity.
§ Assessment of Emergency Variations – The Project Steering Committee shall be convened at
short notice, possibly with a reduced number of members, subject to availability. Any
specialists involved or other interested parties may also be invited to attend.
§ The outcome of the review and impact assessment determines whether the Project Steering
Committee approves the emergency variation.
§ Emergency Variation Actions – The Project Manager records all actions in the Variation
Request Management system. It is important that the Project Manager has plans in place for
allocating resources in this kind of situation to minimise the impact on the overall project plan.
§ Implementing Emergency Variations – It is important to recognise that emergency variations
may not have been tested to the same standard as other variations and the Project Steering
Committee must ensure that technical expertise is available when implementing such a
variation.
§ Review of Emergency Variations – Once the emergency variation has been successfully
implemented, it should be reviewed in the same way as other variations. Slide 67
Define Scope & Manage Variation
University of Adelaide – Portfolio and Program Management (7040)
University of Adelaide – Portfolio and Program Management (7040)
Planning & Control
§ Overview: purpose is to define and implement the processes and
procedures for managing traditional Program constraints (budget, schedule
and scope/quality) and related concerns, such as logistics, risks, resource
allocation and project interdependencies.
§ Manage the Program and subordinate projects within agreed tolerances
and support all the phases by ensuring that the correct resources with the
right skills are available and the Program objectives are delivered.
§ This involves management and control of:
– Planning & Scheduling
– Resource Management
– Dependency Management
– Program Finance Management
– Risk and Issue Management
– Procurement, Supplier and Contract Management
§ The focus is on achieving proactive management as opposed to reactive
management that is quite common in many organisations.
Slide 68
Supporting Project Planning
§ The development of realistic and appropriate project plans is key to the
delivery of the Program.
§ As the central point of Program coordination, the plans should be submitted
to the PMO to ensure consistency and deliverability against overall
Program objectives.
§ The PMO should develop a ‘checklist criteria’ to review against the plans.
Examples of the criteria include:
– Evidence of a robust process behind the development of the plan.
– Engagement and buy-in from any ‘stakeholders’ affected.
– Commercial and financial viability.
– Clarity and definition of plans.
– Process and structure for the delivery of plans.
– Risk assessment and management strategy.
– Detailed project and/or implementation plans.
Slide 69
Planning & Control
University of Adelaide – Portfolio and Program Management (7040)
Program and Project Scheduling
§ Program scheduling is defined as the process of determining when project
scope will take place depending upon defined durations and precedent
activities.
§ Program scheduling is often conducted in tandem with Program planning
and resource planning.
§ During Program Initiation, the Program timeline is typically not developed
using Microsoft project or other project scheduling software. It is developed
as a rough “first cut” for communication to various Program stakeholders
and should be a summarised, uncomplicated visual representation of the
timeline.
§ Program scheduling is usually an iterative task due to the complexity of the
activities involved in assessing the whole Program organisation.
§ Other key dates may influence the timeline and must be considered in this
process e.g., regulatory dates, plant shutdown dates, code freeze
implementation dates.
§ Program phases should also be outlined on the timeline. Slide 70
Planning & Control
University of Adelaide – Portfolio and Program Management (7040)
Program and Project Scheduling
§ Activities may include:
– Identifying and prioritising activities or projects that will yield ‘quick-wins’
– Inputting Program, Project and Activity information into a suitable project management tool
– Identifying dependencies between tasks, work streams and projects so that they are scheduled in the
correct sequence.
– It may also include use of resource based scheduling – however, this is itself highly resource intensive
and should only be used if the overall Program and projects within it are relatively stable and the PMO
has access to reliable and robust resourcing information.
– Use of techniques such as critical path analysis to identify those tasks which are critical to the success
and timely completion of the Program.
§ A high-level Program schedule may include:
– Program Structure
– Program Releases
– Project Groupings
– Project Start and End Dates
– Benefits Realisation Milestones
Slide 71
Planning & Control
University of Adelaide – Portfolio and Program Management (7040)
Example Program Schedule
Slide 72
Planning & Control
University of Adelaide – Portfolio and Program Management (7040)
Resource Management
§ Using the high-level Program timeline and Program structure, identify the
level of required resources.
§ An understanding of the required capability and capacity of resources
across the Program is essential for the PMO to support the Program.
§ Activities may consist of:
– Categorising the types of resources by skill areas such as:
• Program / Project Management
• Business Process Reengineering
• Change Management / HR /Training
• Communications
• Technology / Finance / Legal / Asset Management.
– Using Project Plans to produce a bottom up resource analysis by the use of resource
based scheduling
§ Note: it is likely that the same resources (people) will be used across
multiple projects, so effective resource management is essential.
Slide 73
Planning & Control
University of Adelaide – Portfolio and Program Management (7040)
Resource Management
§ Developing a Sourcing Plan including numbers, roles and skills. This includes
identifying the most effective mix of sources to gain the resources required to
deliver the change. Resources may be sourced from:
– Internal Secondment, Internal (part of the day job) or Internal Recruitment
– Contractors and Consultants
– Interim Management
– Strategic Partnership Arrangements
– Service Integrators
§ Develop a structured approach to ‘on-boarding’ resources into the Program:
– An essential part of setting up a team is a structured approach to inducting or “On-Boarding” team
members into the Program.
– As the Program evolves, iterative on-boarding activities may be conducted to introduce new resources
to the Program.
§ Combining resourcing with the Program Schedule
– Assigning resources to project and Program tasks;
– Balancing completion dates against the availability of the appropriate resources to complete all tasks
within the available time;
– Identifying realistic start and end points (elapsed time) to accommodate the number of man-days work
for each given task
Slide 74
Planning & Control
University of Adelaide – Portfolio and Program Management (7040)
Dependency Management
§ Dependencies are defined as actions, deliverables or pre-conditions that are
outside the immediate scope of the Program or the Program manager’s span of
control and that impact the Program’s successful completion.
§ They are not to be confused with the normal activities and logical relationships that
exist between different Program activities in a Work Breakdown Structure.
Dependencies may be internal and external to the Program.
§ The management of dependencies ensures that:
– An effective process exists for managing existing dependencies
– New dependencies can be identified and an action plan agreed and implemented
– The impact of dependencies on the Program plan are understood
– There is effective communication between all of the dependency-related parties.
§ Activities may include:
– Define Dependency Management Process, Roles and Responsibilities
– Implement Dependency Management Process, Roles and Responsibilities
– Identify and Manage Dependencies and Prepare Dependency Management Reports
§ The outputs from this Phase are also captured in Planning and Scheduling. When
used in this way, the Program planners are able to identify the impact of the
dependencies on the critical path through the Program plan.
Slide 75
Planning & Control
University of Adelaide – Portfolio and Program Management (7040)
Program Finance Management
§ Program Finance Management relates to the derivation of the estimates for
Program/project cost and budgets, the accounting approaches to be used for
Program/project costs and the monitoring and reporting of Program/project costs
and budgets.
§ The individual projects within the Program should have their own budgets assigned.
Each project manager can be tasked with managing their own budget capturing
planned and actual costs for labour (resources) and expense lines. A process must
be designed to gather and combine these budgets to provide a summary/Program
level view.
§ There should be thought to contingency budgets, how to manage the contingency
(e.g. in a pool of funds or divided amongst the projects) and how to control it.
§ Activities may include:
– Clearly define all of the responsibilities for the different aspects of Program finances.
– Determine the accounting approach to be used before Program/project estimates, project budgets or
project accounting management is defined.
– Develop the Program/Project Finances Plan including all of the detailed policies, tasks and
responsibilities necessary to record, monitor and report upon the Program/project costs and budgets.
– Prepare a Cost Baseline to be used to measure cost performances for the duration of the Program.
Slide 76
Planning & Control
University of Adelaide – Portfolio and Program Management (7040)
Program Finance Management
§ Sample summary budget based on a small development project. Program
budgets are typically rolled up from project budgets to provide a headline
view.
Planning & Control
| Project | Description | Budget | Actual | 39814 39846 39878 39910 39942 39974 40006 40038 40070 40102 40134 40166 Variance | Days to Complete 214.0 $ 74.0 $ 16.0 $ 74.0 $ 40.0 $ 10.0 $ 92.0 $ 10.0 $ 0.0 $ 82.0 $ |
Actual | Budget | |||||||||||
| Code | Days | Days | Days | Value | Value | |||||||||||||
| PMO1 | Project management office John Smith Nick Gold Sarah Jones Melanie Brown David White Development of statisical techniques model Will Black Mike Green Mary Johnson |
575.0 226.0 40.0 226.0 73.0 20.0 261.0 20.0 50.0 191.0 |
593.0 226.0 48.0 226.0 73.0 20.0 262.0 20.0 51.0 191.0 |
32.0 14.0 4.0 14.0 0.0 0.0 14.0 0.0 14.0 0.0 |
38.0 17.0 4.0 17.0 0.0 0.0 17.0 0.0 17.0 0.0 |
49.0 20.0 4.0 20.0 0.0 5.0 35.0 5.0 20.0 10.0 |
36.0 16.0 4.0 16.0 |
47.0 20.0 4.0 20.0 3.0 0.0 16.0 0.0 0.0 16.0 |
63.0 22.0 4.0 22.0 10.0 5.0 25.0 5.0 0.0 20.0 |
56.0 21.0 4.0 21.0 10.0 0.0 22.0 0.0 0.0 22.0 |
58.0 22.0 4.0 22.0 10.0 0.0 21.0 0.0 0.0 21.0 |
61.0 21.0 4.0 21.0 10.0 5.0 27.0 5.0 0.0 22.0 |
52.0 19.0 4.0 19.0 10.0 0.0 21.0 0.0 0.0 21.0 |
54.0 20.0 4.0 20.0 10.0 0.0 19.0 0.0 0.0 19.0 |
47.0 14.0 4.0 14.0 10.0 5.0 25.0 5.0 0.0 20.0 |
8.0 0.0 8.0 0.0 0.0 0.0 1.0 0.0 1.0 0.0 |
385,450 $ 146,900 $ 31,200 $ 146,900 $ 47,450 $ 13,000 $ 209,600 $ 16,000 $ 40,800 $ 152,800 $ |
373,750 9,100 2,600 9,100 – – 208,800 – 11,200 – |
| 0.0 20.0 0.0 0.0 20.0 |
||||||||||||||||||
| STMD |
| Project | Description | Budget | Actual | Variance Days |
Actual | Budget | |
| Code | Days | Days | Days | to Complete |
Value | Value | |
| PMO1 STMD BILL ORDM |
Project management office Development of statisical techniques model IT Billing Changes Provisioning team Changes |
575.0 261.0 550.0 510.0 |
593.0 262.0 528.0 514.0 |
8.0 1.0 -22.0 4.0 |
214.0 $ 92.0 $ 184.0 $ 150.0 $ |
385,450 $ 209,600 $ 422,400 $ 411,200 $ |
373,750 208,800 440,000 408,000 |
TOTALS 2,742.0 2,752.0 0.0 946.0 $ 1,428,650 $ 1,430,550
Program budget + 5% 1,502,077.50
University of Adelaide – Portfolio and Program Management (7040)
Risk and Issue Management
§ Define and agree the processes and associated roles and responsibilities for managing risks
and issues that affect the Program
§ Information used in developing the risk and issue management plan may include the Program
charter, Program roles, responsibilities and authority for decision-making and any risk
management policies which the organisation may currently have in place.
§ Program Risk Management involves not only identifying risks at the project level, but also
identifying risks that may impact on the success of the Program as a whole (e.g. a change in
market conditions may not have a major impact on a system implementation, but how might it
affect an IT Transformation Program?).
§ Having the right methodology, procedures and tools for risk and issue management is key
(i.e. AS/NZS 310000:2009- Risk Management), but having a good escalation process is
critical to Program risk management. Project Managers need to be able to clearly distinguish
what they can treat and what needs to be escalated.
§ The design of an escalation process will be determined by:
– Possible breadth of risk impact
– Project visibility
– Size, duration and complexity of the projects for which risk management is being provided
– Program organisation structure
Slide 78
Planning & Control
University of Adelaide – Portfolio and Program Management (7040)
University of Adelaide – Portfolio and Program Management (7040)
Planning & Control
Extract from risk register based on their current Program management approach
| ID | D at e R Widgets Inc WBS Reference |
Risk Category | Risk | Likelihood | Consequence | Score | Residual Risk Rating |
Risk Controls |
| 12 | 2. Deliver | Stakeholder management |
Widgets Inc internal culture and current program engagement model has reduced stakeholder engagement and support for the final outcomes. |
Almost Certain |
Catastrophic | 25.0 | Critical | CEO re-structuring Widgets Inc to make it more transparent and customer centric to the industry members |
| 20 | 2. Deliver | Effectiveness and efficiency |
Widgets Inc unable to benchmark performance of service providers and projects; potentially increasing the project costs over time and reducing the number of projects that can be undertaken by HAL. |
Almost Certain | Major | 20.0 | Critical | Recommendation: Financial reconciliation to be performed for each project |
| 2 | 3. Project Outcomes |
Project Outcomes |
Forecast outcomes not realised from published research; final report is either not fit for purpose and/ or does not include learnings discovered through the life of the research project. |
Almost Certain |
Major | 20.0 | Critical | Recommendation: Increase frequency of project status reporting and include, financial report and progress findings/ learnings within the status reporting. |
| 24 | 2. Deliver | Effectiveness and efficiency |
PS manager manage portfolios of projects that range from 35 to over 100. Reducing the available attention and oversight for each project and increasing the likelihood of project risks going undetected until after issues have eventuated. (spread too thinly) |
Likely | Major | 16.0 | Very High | Every project has a PS manager assigned, with the smallest portfolio of projects being 35 separate projects. Recommendation: A review of the nature and size of the projects undertaken by Widgets Inc to determine the optimal attention to be given to different classes of projects. The outputs from this review then be used to determine the appropriate size of mix of the Widgets Inc portfolios assigned to the PS managers. |
| 15 | 2. Deliver | Governance | Lack of visibility of what service providers are working on/ delivering; results in either delivery delays or poor research outcomes. |
Likely | Major | 16.0 | Very High | Widgets Inc management committee commission a small number of independent audits over projects within the Widgets Inc Investment Plan to confirm management processes used by service provider and use of monies. |
A risk register outlines the current controls, an assessment of their effectiveness and then assigns a residual risk rating. Actions to
address the risks include avoidance, transfer, mitigation (reducing either the likelihood or consequence) and acceptance
Slide 79
Procurement, Supplier and Contract Management
§ Not all Programs/projects will require the purchasing of goods or services
§ The organisation’s Purchasing Department (or its equivalent) will be responsible for
most of the purchasing-related roles and responsibilities including:
– Supplier selection, management and performance monitoring.
– Purchasing requirements specification
– Purchase Order placement and tracking
– Contract administration
§ However, a PgMO may have the following responsibilities:
– Providing information to the Purchasing Department to place Program or PgMO related purchase
orders
– Receiving order tracking information (such as delivery dates) from the Purchasing Department for input
into schedules, plans, risk management and Business Case Monitoring and Benefits Realisation.
– Receiving planned and actual cost information from the Purchasing Department for input to Project
Finances.
– Receiving information directly from suppliers where the suppliers form a significant overall component
of a project (e.g. Consultancy Services).
– Assisting with Supplier Management administration such as providing support for Requests for
Proposals (RFPs) for purchases of goods and services
Slide 80
Planning & Control
University of Adelaide – Portfolio and Program Management (7040)
University of Adelaide – Portfolio and Program Management (7040)
Planning & Control
Procurement, Supplier and Contract Management
Business
Requirements
Specification
Request
For Information
Request for
Tender
Negotiation/
Due Diligence Award Contract
§ The business requirements specification will be detailed from the business requirements scope used to
get to business case,
§ The request for tender step can be interchanged with a request for proposal. This will be organisation
dependent and is usually related to the value of the contract to be awarded and the number of vendors
that offer services within the space.
Slide 81
§ Procurement, Supplier and Contract Management
§ Additional specialist skill areas, work tasks, roles and responsibilities to be
added may include:
– Computer software package selection and acquisition;
– Computer hardware selection and acquisition;
– Services and Outsourcing selection and acquisition;
– Service Level Agreement creation and review;
– Supplier performance monitoring/assessment;
– Specialist procurement skills; or
– Legal advise and contract management
Slide 82
Planning & Control
University of Adelaide – Portfolio and Program Management (7040)
Group Exercise
§ Review Slides 68 to 82.
§ Identify the potential tools and templates required for Planning and Control.
§ Each group to ask to post at least one question in the discussion forum.
Slide 83
45
mins
University of Adelaide – Portfolio and Program Management (7040)
Video: Oregon State Bridge Delivery Program (PMI)
University of Adelaide – Portfolio and Program Management (7040)
Program Performance Management
§ Overview: this control focuses on implementing performance measuring tools and
reports in addition to the implementation of quality controls.
§ Common Quality Controls include Stage Gates, Testing and Acceptance Criteria,
Contracts, Service Level Agreements (SLAs), and Pre-implementation
Assessments.
§ Project and Program performance monitoring typically involves tracking six
variables:
– Schedule – the estimated effort and duration versus the actual effort and duration.
– Costs – the estimated cost versus the actual costs.
– Deliverables – what products or components have been delivered and plan to be delivered.
– Quality – how well are the deliverables being completed.
– Risk – what events might hind Program success and realisation of benefits.
– Benefits – are processes in place to achieve and to measure benefits realisation.
§ The focus being on executing the project within agreed tolerances, and delivering
benefits as documented in the Program Business Case.
§ It is important to keep the team focused on delivering benefits to the organisation,
as opposed to just deliverables of the Program. This can be a challenging shift in
thinking for some!
Slide 84
Why have this control?
§ Certainty of delivery – if the organisation is working to aggressive fixed delivery
dates, stakeholders need to be assured that the Program will be delivered on time.
§ Benefits delivery – there is an increased focus on benefits delivery.
§ Speed of delivery – better and faster decision making, on boarding and time to
realisation of benefits of complex, challenging change agenda items.
§ Less time managing reactively – more forward planning across will be necessary
to minimise the reactive nature that can be evident in organisations.
§ Greater capacity and capability – optimising the capability and capacity available
will become more important as complexity increases.
§ Cost effective projects – reducing the timescales and costs, and managing
resources more effectively.
§ Reduced risk – management and containment of risk through disciplined process
and performance controls will be increased.
§ Stakeholder engagement – Program reporting is delivered to key stakeholders.
Slide 85
Program Performance Management
University of Adelaide – Portfolio and Program Management (7040)
University of Adelaide – Portfolio and Program Management (7040)
Program Performance Management
Activities
§ Activities will vary depending on the phase of the Program.
§ Controls when transitioning from the Program Plan to Execution:
– Completing a structured walk-through of the Program Plan.
– Reviewing and approving the Program Plan.
– Implementing the data collection, project tracking and management processes for each of
the Program plan components, to be managed by the PMO.
– Maintaining the Program Plan (PMO responsibility), project managers will manage their
own plans and provide updates to the PMO at the milestone or summarised task level.
– Preparing and distributing Program Plan and schedule reports following approval.
§ Controls for delivering the Program:
– Monitoring of progress against plans and associated reporting.
– Plan maintenance to manage variations in timescales and resources.
– Change control.
– Configuration management.
– Risk, Issue, Dependency and Assumption management.
– Rebalancing portfolio and updating the Program plan.
Slide 86
Slide 87
Program Performance Management
University of Adelaide – Portfolio and Program Management (7040)
Program Summary
| Theme Scorecard Area | Previous Status (R/A/G) |
Current Status (R/A/G) |
Comments |
| Project status (indication of efficiency) |
Controlled | Caution | <comments> |
| Critical issues & risks (impact on Theme) |
Critical | Controlled | <comments> |
| Theme objectives | Caution | Caution | <comments> |
| Benefits realisation | Controlled | Controlled | <comments> |
| Overall | Caution | Controlled | <comments> |
Example Performance Reporting
University of Adelaide – Portfolio and Program Management (7040)
Program Performance Management
| Objective | Context | Issue | Implication | Actions | Accountability | Objective Status |
| <Strategy Development or Project Execution> |
A | |||||
| <Strategy Development or Project Execution> |
||||||
| <Strategy Development or Project Execution> |
G | |||||
| <Strategy Development or Project Execution> |
||||||
| <Strategy Development or Project Execution> |
R | |||||
| <Strategy Development or Project Execution> |
Status of Theme Objectives
Example Performance Reporting
Slide 88
University of Adelaide – Portfolio and Program Management (7040)
Program Performance Management
Example Performance Reporting
| Project Code |
Project Name |
Previous Lifecycle & Project Status |
Current Lifecycle & Project Status |
Last Update in IPR |
Schedule | Milestones | 3rd Party Cost | Resource Effort | |||||
| Baseline Finish |
Forecast Finish |
Number Achieved to date1 |
Total Planned to date |
Baseline Total 3rd Party Cost |
Forecast Total 3rd Party Cost |
Spend to date |
Baseline Total Days |
Forecast Total Days |
|||||
| Example: PM01003 |
Implement SAP |
Execute and Control |
Execute and Control |
15/08/08 | 21/11/08 | 21/11/08 | 4 | 4 | 60,000 | 48,500 | 40,000 | 180 | 180 |
Program Scorecard
Slide 89
University of Adelaide – Portfolio and Program Management (7040)
Program Performance Management
Example Performance Reporting
Slide 90
University of Adelaide – Portfolio and Program Management (7040)
Program Performance Management
§ Large-scale Programs will have a significant higher chance of success if
performance and quality management controls address the following
Program enablers:
Data Integrity
Communciations
and Stakeholder
Management
Benefits Identification
Tracking and
Realisation
Knowledge and
Skills Transfer
Key Performance
Indicator Dashboard
Effective
Governance
Portfolio /
Workstream
Management
Top Team Vision
and Strength
Programme
Management
Slide 91
11. Benefits Management
University of Adelaide – Portfolio and Program Management (7040)
Benefits Management
§ Overview: Benefits Realisation control tracks the Program benefits against
the Program Business Case and confirm whether staged implementation
and transition to business-as-usual has been successful.
§ This control area is unique in that it has activities to monitor the delivery of
Program Benefits, whilst executing the Program, but also has activities
post-implementation.
§ Objectives (Program Execution):
– Monitoring of actual project progress as compared to the planned progress and the
collection of key progress metrics such as risks, issues, changes and dependencies; and
– Reporting of benefits realisation status, at a summary level, to the Project Sponsor,
Project Steering Committee and other project stakeholders.
§ Objectives (Post-Implementation):
– Confirm whether the Program has delivered the business outcomes as detailed in the
Program Business Case.
– Confirm whether the implementation and handover to business-as-usual were successful
and identify any opportunities to optimise the benefits from the implementation.
– Conduct regular benefits realisation reviews (for most Programs, bi-annually will be
appropriate).
Slide 93
Benefits Realisation continues in the Close Phase…
§ Post-Program Benefits Realisation: best practice Program management
indicates that the likelihood of Programs achieving their forecasted benefits
is increased when regular benefits monitoring occurs after each project has
closed. This is illustrated in the diagram below
Slide 94
Benefits Management
University of Adelaide – Portfolio and Program Management (7040)
Source: PMI ‘The Standard for Program Management – 4th Edition’, Page 46, 49
Variation Management through the Program Lifecycle determines changes to
the identified Program benefits:
§ Changes in scope, delivery timeframes and quality have a direct impact on the
benefits to be delivered.
§ Changes in Program cost will impact the ROI or investment profile of the Program.
§ Variation management must include impact assessments against the original
forecast benefits that were included in the business case.
Identifying benefits:
§ Financial.
§ Economic.
§ Other impact against the organisation’s KPIs e.g. customer service rating.
§ Direct or Indirect.
§ Tangible or Intangible.
Slide 95
Benefits Management
University of Adelaide – Portfolio and Program Management (7040)
The benefits measures should be part of a balanced set which…
§ Consists of both result measures and process measures:
– Result measures (usually financial in nature) reflect the results of actions already taken.
– Process measures relate to the underlying business processes. If these processes are
improving, results can be expected to follow.
– Example of Result Measures vs. Process Measures:
§ Includes both leading and lagging measures:
– Leading measures show immediate results of a completed operation such as defects,
cycle time, throughput and break-even time;
– Lagging measures show results of completed operations over time such as stockholder
value creation (e.g., earnings, cash flow, revenue), customer satisfaction and retention,
market share gain, new product successes and inventory.
Slide 96
Benefits Management
University of Adelaide – Portfolio and Program Management (7040)
| Result Measures | Process Measures |
| Warranty claims | Machine capability |
| Inventory turnover | Set-up time reduction |
| Market share | Product development lead time |
| Earnings per share | Quality rejects |
§ Supports an organisation’s multidimensional environment:
– Internal measures such as backlog, revenue, profit, cash flow and asset management
measures are important performance measures for an organisation.
– However, the benefits measures should also include measures that provide management
with an external perspective of the business environment and reflect the organisation’s
performance in relation to its customers, competitors or suppliers and the marketplace.
Slide 97
Benefits Management
University of Adelaide – Portfolio and Program Management (7040)
Tangible
Financial
Tangible
NonFinancial
Intangible Disbenefit
Key Activities (during Program Planning & Execution)
§ Determine the organisation’s current benefits realisation monitoring processes, roles and
responsibilities and systems.
§ Determine approaches to monitor and track benefits:
– Define the approach to be used to monitor benefits against the Program Business Case. Should
include monitoring the value drivers and key performance indicators for the benefit line items in the
business case.
– Classic Program / Project Measures should also be considered for their impact on Benefits:
• Program Costs
• Schedule
• Deliverables
• Scope and Variance
§ Prepare a Benefits Realisation Monitoring and Reporting Task/Responsibility Matrix
§ Define Benefits Realisation Reporting Process
– Need to determine how Benefits will be reported at both detailed Program reports and executive level
dashboards.
Slide 98
Benefits Management
University of Adelaide – Portfolio and Program Management (7040)
Monitor Progress and Prepare Reports
§ Objectives are to identify:
– That intended benefits are on track to be achieved.
– If there are any new benefits that can be achieved, that were not expected.
– Any negative impacts that have arisen and decide on a course of action to address them.
– If the original Program Business Case needs to be revisited, the reasons why, and impact
on overall viability of the Program.
Slide 99
Benefits Management
University of Adelaide – Portfolio and Program Management (7040)
Key Activities (starts with Program Closure)
§ Initiation: Establish the benefits team and confirm the following:
– The targeted Benefits set out in the Program Business Case are still relevant and realistic.
– Roles and Responsibilities of Team Members (e.g. Measure SMEs, Goal Owners and role of a PMO)
§ Regular Meetings (3-6 months): Meet on a periodic basis to discuss the following:
– Implementation: discuss what is working and how it can be improved. Assign actions going forward or
adjustments to the rollout approach, with due dates, and revisit at the next meeting.
– Benefits Tracking: in accordance with the Project Business Case and the Benefits Realisation Plan,
track and discuss the realisation of benefits. This, for instance, may include the impact on the Profit &
Loss since closure, the delivery of a specific capability, or the impact on systems, processes and
people. If necessary, discuss whether anything different needs to be done to improve the realisation of
benefits.
§ Benefit Reviews (6 months+): On a regular basis (for most projects, bi-annually
would be appropriate), engage the PMO to facilitate a Benefits Realisation Review.
§ An objective of this session is to also decide whether or not further benefits
realisation tracking is required. The Benefit Owner should be present at these
meetings and their approval is required to cease Benefits Realisation activities.
Slide 100
Benefits Management
University of Adelaide – Portfolio and Program Management (7040)
University of Adelaide – Portfolio and Program Management (7040)
Benefits Management
| Benefits | Checkpoint 1 |
Checkpoint 2 |
Checkpoint 3 |
Checkpoint 4 |
Checkpoint 5 |
Actual Benefits to Date |
Expected Additional Benefits |
Total Benefits at Completion |
| Benefit Number |
Benefit Title and Owner | |||||||
| Forecast/Target | ||||||||
| Actual | ||||||||
| Variance | ||||||||
| Comments / Action Required |
||||||||
| Benefit Number |
Benefit Title and Owner | |||||||
| Forecast | ||||||||
| Actual | ||||||||
| Variance | ||||||||
| Comments / Action Required |
||||||||
| Benefit Number |
Benefit Title and Owner | |||||||
| Forecast | ||||||||
| Actual | ||||||||
| Variance | ||||||||
| Comments / Action Required |
Slide 101
Sample Monitoring and Reporting:
University of Adelaide – Portfolio and Program Management (7040)
Benefits Management
Slide 102
Sample Monitoring and Reporting:
University of Adelaide – Portfolio and Program Management (7040)
Benefits Management
BUSINESS CASE OVERVIEW
| Project Costs Over Five years | $25,500,000 |
| Savings/Benefits: | |
| Revenue Uplift Cycle Time Reduction, Information Access and Process |
$38,446,572 $6,800,000 $10,100,000 |
| Hardware and Software Savings Total over 5 years Difference (benefits/costs) Present Value (COC=15%) Return on Investment |
$13,900,000 $69,246,572 $43,746,572 $21,213,135 66% |
Contribution to Shareholder Value $31,103,235
| PAYBACK ANALYSIS $(10,000,000) $10,000,000 $20,000,000 $30,000,000 $40,000,000 $50,000,000 Year 3 Year 4 ROI = 66% Payback in 2.7 yrs Implementation Period Year 1 Payback Year 0 Year 1 Year 2 $(14,400,000) $(12,164,775) Year 3 Year 4 $5,405,674 $24,576,123 |
Slide 103
55%
10%
15%
20%
BENEFITS BY CATEGORY
Revenue Uplift
Cycle Time Reduction
Information Access and
Process
Hardware
and Software Savings
COST BREAKDOWN
Hardware
Software
Project Salaries
/Consultants
Training
24%
52
%
12
%
12
%
Sample Monitoring and Reporting:
University of Adelaide – Portfolio and Program Management (7040)
Benefits Management
Slide 104
Sample Monitoring and Reporting:
Group Exercise
§ Review Slides 82 to 109.
§ Identify the 5 challenges of Benefits Management.
§ Each group to post on questions in the discussion forum.
Slide 105
45
mins
University of Adelaide – Portfolio and Program Management (7040)
12. Managing Change
University of Adelaide – Portfolio and Program Management (7040)
Change Management & Communications
§ Overview: the purpose of this control area is to ensure that the changes
that are being implemented as a result of the Program are both supported
and maintained post implementation.
§ This is achieved through developing a Change Management Strategy that
will include measures for tracking how change is being accepted, and a
mechanism for adapting, learning and transferring the change to business
operations.
§ A communications plan is a crucial component of the Change Management
Strategy and must be developed and executed in close alignment.
§ A Change Strategy should:
– Focus on achieving project benefits and sets up measures to track them.
– Encourage the involvement of the people who will deliver the change in practice;
ensuring purposeful communication and balancing those activities that should be driven
from the top, and those built on the ideas and successes of the teams on the front line.
– Build sustainability by embedding new ways of working into performance management
and training processes.
Slide 107
Research tells us that….
§ 75% of change management Programs fail, and 9 of the top 10
reasons for these failures are related to people issues.
§ One of the common causes of Project/Program failure is the lack of clear
linkage between the Project and the organisation’s key strategic priorities,
including agreed measures of success.
§ Indifference of staff is the cause of 68% of customer defections –
only 14% defect because of product quality.
§ 80% of people leave their managers, not their job.
Slide 108
Change Management & Communications
University of Adelaide – Portfolio and Program Management (7040)
University of Adelaide – Portfolio and Program Management (7040)
Change Management Critical Success Factors
Benefits
• Keep business benefits at the heart of change.
• Challenge the data and its interpretation.
• Agree the measures of success and how to monitor them.
• Focus on the actions that make a difference fast.
Involvement
• Through involvement build a vision and hunger for success.
• Engage the front-line before, during and after.
• Communicate with a purpose.
Sustainability
• Give leaders the skills – and the heart – to lead.
• Make sure systems, processes and culture reinforce the change.
Design the best fit change approach
Slide 109
10 Critical Success Factors (CSFs) for successful Change Management
1. Design the best-fit change approach
– Have you developed, written down, and shared your approach to change with all the right people?
– Does your approach address benefits, involvement and sustainability?
– Is it tailored specifically to your project and do you review and refine it regularly?
2. Keep business benefits at the heart of change
– Are all the benefits documented, and do they link to your project milestones?
– Can you link these benefits to business imperatives and performance?
– Are you tracking and monitoring benefits throughout your project?
3. Challenge the data and its interpretation
– Are you satisfied with the quality and validity of the data?
– Are you really sure you’ve identified the root cause of the current situation?
– Have you refined your understanding of the data and its implications for the work that needs to be done?
4. Agree the measures of success and how to monitor them
– How are you involving everyone in defining and communicating the measures of success?
– What are you doing to monitor progress and ensure benefits aren’t slipping?
– What have you done to track benefits beyond the life of the project?
Slide 110
Change Management & Communications
University of Adelaide – Portfolio and Program Management (7040)
5. Focus on the actions that make a difference fast
– Have you agreed the actions that have maximum impact in the least time, with minimal risk?
– Do you need additional expertise to make quick wins even quicker?
– Are you communicating these quick wins to accelerate the feel good factor?
6. Through involvement build a vision and hunger for success
– Does everyone share the vision? How do you make it real for people?
– Have you included tasks focused on generating enthusiasm and engagement?
– How are you going to keep on track while maintaining engagement, and taking new ideas and differing views on board?
7. Engage the front-line before, during and after
– What are you doing to find out the views of the people who will make change happen?
– Are you continually revising your views on stakeholders as you talk to the front line?
– Have you challenged whether performance management and reward processes are aligned with your approach to
change?
8. Communicate with a purpose
– Is the whole team clear about what you want people to know, think, feel and do? How will you know when this has
happened?
– Have you allowed time to understand what your stakeholders really think?
– Are you communicating in a language they understand and via channels that they know and use? Are they
communicating back?
Slide 111
Change Management & Communications
University of Adelaide – Portfolio and Program Management (7040)
9. Give leaders the skills – and the heart – to lead
– Challenge yourself – are you leading by example?
– Are you coaching leaders to adapt their management styles to support the change?
– Are you satisfied that leaders are bringing their people with them?
10. Make sure systems, processes and culture reinforce the change
– Is your team equipped with the information and skills they need to work in a new way?
– Are systems and processes reinforcing the behaviours needed now, and in the longer-term?
– Will benefits still be achieved once the project team has been disbanded?
Slide 112
Change Management & Communications
University of Adelaide – Portfolio and Program Management (7040)
Video: Program Change Management (PMI)
University of Adelaide – Portfolio and Program Management (7040)
Change Management & Communications
Embed & Sus tain the Change
| Solution Effectivenes s MEASURE: Sales Excellence Program & Initiatives LEARN, ADJUST & TRANSFER: Corrective Action Plans TOOLS: Self Correcting Model Deploy Training Acceptance Surve y (measuring understanding & positive perception) 6 monthly Organis ation Wide Surve y (measuring adoption, embedding & internalisation) 4-6 weeks (pos t-training) Adoption Surve y (measuring positive perception & adoption) Balance Scorecard Meas ures Initiative Level Program Level Feedback & Communications (Heads Up & Detailed) & Training Deploy Solution Implementation Solution Effe ctivenes s |
||
| Program Level Activitie Sales Excellence Vis ion & Front Line Leader Vis ion Change Impact & Readines s As s es s ment |
s Change Strategies • Measurement Framework (hard & perception) • Change Roadmap: bundling • Industrial Relations • Knowledge Mgt & Transfer • Engagement/Stakeholder Management • Communications • Leading for Change • Embedding & Sustaining |
|
| Initiative/Bundle Leve Initiative Impact As s es s ments |
l Activities Change Res pons e Plans • Change Strategies • Initiative Solution Walkthrough • Training |
Change Readines s Surve y (meas uring contact, awareness , unders tanding & positive perception) Us er Acceptance Tes ting |
| Des ign & Build Change Build & Acquire Idea Develop Solution Definition |
Deploy |
“Go/No Go”
Deploy Decis ion
Es calation
Prepare Organis ation
Example: Change Management Approach:
Slide 113
§ Conner and Patterson (1982) and later Conner, Harrington & Horney
(2000) describe a model of commitment to change that demonstrates how
individuals commitment to change increases over time.
§ Individuals all experience this commitment at a different pace.
Nevertheless, it is possible to track the organisation’s change journey (i.e..
transformation towards end state of vision) as a sum of the individual
perceptions against the change
Slide 114
Change Management & Communications
| University of Adelaide – Portfolio and Program Management (7040) 04/05 |
05/06 Time |
06/07 |
Level of Commitment
(the % of favourable responses
gathered from perception surveys)
% 100
80
60
40
20
Vision
Contact
Individuals have heard
about the change
Awarenes s
Individuals are aware of
basic scope & concepts
of change
Unders tanding
Individuals understand the
change impacts to the
company & their functional
area
Pos itive Perception
Individuals understand change
impacts & benefits to them
Adoption
Individuals are willing
to work with &
implement the change
Embedded
The change is the way work is
done – the new status quo
Internalis ation
Individuals make the change
their own and create innovative
ways to use & improve
Vision
13. Program Closure
University of Adelaide – Portfolio and Program Management (7040)
Program Closure
§ Overview: purpose of this phase is to formally close the Program in a
structured and well-managed way.
§ Program Closure may occur:
– when the Program has delivered the new capabilities required to meet the desired
strategic objective and operational outcome.
– when the Program has become untenable for business, financial or resource reasons,
and needs to be closed prematurely.
§ Realisation of the expected business outcomes should have been
assessed using the previously identified benefit realisation measures
§ Given some of the benefits may not occur or be realised until after the
Program has ceased to exist, closing a Program may still require the need
for future assessment and ongoing benefits management.
§ Why undertake this phase?
– Controlled and structured closure of the Program.
– Specifically articulated residual business.
– Clear indication of business case and blueprint, thus strategic objectives being met.
Slide 116
University of Adelaide – Portfolio and Program Management (7040)
Program Closure
| Inputs | |
| Business Case | Before closure, the Business Case should have to satisfied to the point in time, where it has not then premature closure is probable |
| Program Plan | The Program plan will identify the necessary indicators under which Program closure will occur e.g., the last tranche should have been completed as per the Program plan |
| Benefits Management Reports | Reviewing the benefit results should obviously demonstrate that the business case and blueprint have been satisfied and/or confirm which benefits will be realised outside the formal Program |
| Risk Management Logs | Information regarding any outstanding risks must be captured and provided to the residual in-place business change management |
| Issue Management Logs | Information regarding any outstanding issues must be captured and provided to the residual in-place business change management |
| Outputs | |
| Formal Program Closure Documentation |
Documentation for formal closure |
| Benefits Assessment | Assessment of the Program benefits |
Slide 117
Activities
§ Complete general tasks necessary to formally close the Program
– Finalise Program documentation (e.g. Business Cases, Program Plan, Logs, Reports) and store on a Knowledge
Management Database.
– Finalise and close Program financial accounts
– Notify relevant stakeholders and impacted persons / departments external to the Program team of closure
– Has a Program Closure Meeting taken place and minutes / documentation recorded?
– Has a lessons learnt log been completed?
§ Projects
– Have all projects been completed or transferred outside of the Program?
– Has a post-implementation review been performed on all closed projects?
§ Deliverables and Contracts
– Contracts have been closed and acknowledgement on receipt of deliverables has been acquired / documented?
§ Risks & Issues
– Have all risks in the Risk Register been closed or transferred to business-as-usual?
– Have all issues been closed
– Has the Risk and Issue registers been submitted to a Knowledge Management Database.
§ Benefits
– Has a post-closure Benefits Monitoring process been establish (we talked about this in the previous session)?
Slide 118
Program Closure
University of Adelaide – Portfolio and Program Management (7040)
14. PwC Insights into Transformation
University of Adelaide – Portfolio and Program Management (7040)
PwC Insights into Transformation
§ Survey conducted by
PricewaterhouseCoopers – Advisory
Performance Improvement
§ Created in May 2008
§ Purpose was to study the trends and key
lessons learnt from Transformation
Programs conducted over a number of
companies and industries.
§ Our Advisory experts designed a
questionnaire that elicited both qualitative
commentary and quantitative data on
transformation Programs.
§ Face-to-face interviews were conducted
with 40 CEOs and other senior business
and government leaders by PwC Advisory
partners between October 2007 and March
2008.
Slide 120
Lesson 1: Successful transformation requires agility and a shared understanding of the current
and predicted drivers for change
§ The CEO and the board should invest more time upfront discovering and understanding the drivers
influencing the need for major change. Agreement on this will help improve communication with key
stakeholders.
§ It is important to react quickly to external change drivers.
§ CEOs should either lead or be actively involved in the strategic change discovery process.
§ The overriding objective for all transformations – in the private and public sectors – is to improve customer
experience. The change project has to stay focused on delivering improvements to customers.
Slide 121
PwC Insights into Transformation
University of Adelaide – Portfolio and Program Management (7040)
Lesson 2: Building an effective management team to lead change is important
but so is the flexibility of the CEO’s personal leadership style.
§ Leaders should be tougher with senior managers and executives who are an
impediment to the transformation. There is a tendency for leaders to wait too long
to remove “blockers” or “non-performers” from their executive teams.
§ Many CEOs stressed the importance of having an executive team that was up to
strength, loyal and experienced. One commented: “Have people on the leadership
team that have done it before and that you trust.”
Slide 122
PwC Insights into Transformation
University of Adelaide – Portfolio and Program Management (7040)
Lesson 3: The customer should remain central at all points in the
transformation process
§ Improving customer service should be an explicit goal of the transformation process
and built into the design.
§ Shield customers from any transformation challenges.
§ Build systems that provide customers with online functionalities and real-time
responses.
§ Empowering employees increases employee and customer engagement.
§ Design a business model that provides greater flexibility to meet ever-changing
customer needs.
§ Use customer focus groups during transformation strategy design to validate
customer needs.
§ Run industry briefings for customers during the transformation.
§ Convey a simple and consistent message to customers during the transformation.
Slide 123
PwC Insights into Transformation
University of Adelaide – Portfolio and Program Management (7040)
Lesson 4: Effective communication requires early and ongoing stakeholder
planning & management
§ Successful transformations require leaders to ensure that the key sponsors are on
board.
§ Leaders should articulate a strong, clear picture to all stakeholders, paying
particular attention to external stakeholders. When stakeholders change, leaders
should engage them early.
§ Clarity and timeliness are essential to effective communication. “Be succinct and
clear about what you are committing to and what success would look like,” said one
leader.
§ Under promise and over deliver. Ambitious deadlines are motivational, but leaders
should avoid committing to deadlines that they cannot meet. This applies
particularly to technology implementations.
Slide 124
PwC Insights into Transformation
University of Adelaide – Portfolio and Program Management (7040)
Lesson 5: Making culture change stick is a core ingredient of successful
transformations
§ Develop the capability to embed change into teams. This requires early attention to
the development of strong change management skills.
§ Try to develop cultural change so that there is a pull towards it, rather than an
agenda that has to be pushed.
§ Maintain a strong focus on employee values. Closely monitor the effects of culture
change on the workforce throughout the transformation process.
Slide 125
PwC Insights into Transformation
University of Adelaide – Portfolio and Program Management (7040)
Lesson 6: Successful execution is impossible without early baselining of “as
is” and development of clear metrics to achieve the transformation vision
§ Do not try to do it all in one big bang. Transformation leaders should try to break
down projects into bite sized chunks. This makes traction tangible and helps foster
ownership.
§ There is a need for speed. The first 100 days are critical for delivering
communications and some quick wins.
§ Leaders should get the right metrics in place and manage to them. They can be
simplified to help manage and drive the business.
Slide 126
PwC Insights into Transformation
University of Adelaide – Portfolio and Program Management (7040)
Lesson 7: Leaders must ensure business can continue as usual, which often
requires more resources than planned
§ Leaders need to budget for and plan for extra resources – both internal and
external – to ensure the business functions efficiently.
§ There should be a clear distinction between business-as-usual initiatives versus
transformational initiatives.
§ Leaders should find a way to reduce or eliminate some existing projects and
changes in the business. This helps provide a more stable environment upon which
a transformation team can be based.
§ In the initial stage of a transformation, leaders should create a separate group to
help develop strategy. This group should keep its distance from the existing core
business.
Slide 127
PwC Insights into Transformation
University of Adelaide – Portfolio and Program Management (7040)
Video: PWC CEO insights on Transformation (2016)
End of Day 3 and 4
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