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Program and PMO: Managing Successful Programs (MSP®) - Book Summary
Posted on Friday, December 19 @ 13:12:01 CST by webadmin

PMConnection Articles

These are summary notes from the 2011 Edition.



1.       Introduction

1.1.    Purpose of this guide – Represent proven best practices in Program Management

1.1.1.  MSP is based upon 3 core concepts

1.1.1.1.              Principles

1.1.1.2.              Governance Themes

1.1.1.3.              Transformational Flow

1.2.    What is a Program? – A temporary, flexible organization created to coordinate, direct and oversee the implementation of related projects and activities in order to deliver outcomes and benefits related to the organization’s strategic objective.

1.3.    What is Program Management? – The action of carrying out the coordinated organization, direction and implementation of a dossier of projects and transformation activities to achieve outcomes and realize benefits of strategic importance to the business.

1.3.1.  Program Management aligns e key organization elements:

1.3.1.1.              Corporate Strategy

1.3.1.2.              Delivery mechanism for change

1.3.1.3.              Business-as-usual environment

1.4.    Why use Program Management? – To help organization successfully manage complex change

1.5.    The Program Management Environment

1.6.    Types of Programs

1.6.1.  Vision-led

1.6.2.  Emergent

1.6.3.  Compliance

1.7.    Program Impact – Program Impact Matrix:

1.7.1.  Y Axis

1.7.1.1.               Specification-led

1.7.1.2.               Business Transformation

1.7.1.3.               Political

1.7.2.  X Axis

1.7.2.1.               High

1.7.2.2.              Medium

1.7.2.3.              Low

1.8.    When to use MSP?

1.8.1. See Y axis above, or any time there is high level of complexity or ambiguity

1.8.2.  A program is always planned and managed with an end in mind

1.9.    Best Management Practice Guidance – Lists other publications

1.10.Some MSP Terminology

1.10.1.    Corporate Strategy

1.10.2.    Corporate Policy

1.10.3.    Program Governance Strategies

1.10.4.    Program Plans

1.11.How to use this guide

2.       Program Management Principles

2.1.    Introduction – MSP provides a framework for understanding all programs

2.2.    7 Principles

1.       Remain Aligned to Corporate Strategy

2.       Leading Change

3.       Envisioning and communicating a better future

4.       Focusing on the benefits and threats to them

5.       Adding value

6.       Designing and delivering a coherent capability

7.       Learning from Experience

2.2.1.  Remain Aligned to Corporate Strategy

2.2.1.1.              Program and Business Case must be both robust and flexible

2.2.1.2.              Program Management is agile and adaptive

2.2.2.  Leading Change

2.2.2.1.              Leadership must:

2.2.2.1.1.                     Provide clear direction

2.2.2.1.2.                     Gain trust

2.2.2.1.3.                     Engage stakeholders

2.2.2.1.4.                     Appoint the right people

2.2.2.1.5.                     Live in uncertainty

2.2.2.1.6.                     Solve problem and create novel solutions

2.2.2.1.7.                     Support the transition until new methods are established

2.2.2.2.              The capability that the program will deliver is defined in the Blueprint

2.2.2.3.              Blueprint meets organizations needs

2.2.2.4.              A program is a learning organization

2.2.2.5.              Programs perform better when management assumes an attitude of being learners

3.       Governance Themes

3.1.    Program Organization

3.2.    Vision

3.3.    Leadership and Stakeholder Engagement

3.4.    Benefits Management

3.5.    Blueprint Design and Delivery

3.6.    Planning and Control

3.7.    The Business Case

3.8.    Risk and Issue Management

3.9.    Quality and Assurance Management

3.10.Program Mandate is the first stage of the Business Case

3.11.SRO – Senior Responsible Owner

3.12.BCM – Business Change Manager

3.13.Sponsoring Group

3.14.Program Board

4.       Program Organization

4.1.    Need:

4.1.1.  Roles

4.1.2.  Accountability and Responsibility

4.1.3.  Management and Reporting Structure

4.2.    Program Management is most effective when issues are debated freely and risks are elevated openly

4.3.    Program Board = SRO, Program Manager, BCM

4.4.    Principles for effective leadership

4.4.1.  Create vision of future, communicate and inspire

4.4.2.  Empower decision making

4.4.3.  Commitment and authority to:

4.4.3.1.              Ensure correct resources are available

4.4.3.2.              Influence and engage with stakeholders

4.4.3.3.              Balance program priorities with business

4.4.3.4.              Focus on realization of business benefits

4.4.4.  Skills and experience to actively manage:

4.4.4.1.              Culture and people issues

4.4.4.2.              Finances and conflicting resource demands

4.4.4.3.              The coordination of the projects

4.4.4.4.              Risk identification, elevation and management

4.5.    Sponsoring Group

4.5.1.  Investment decision

4.5.2.  Define direction of the business

4.5.3.  Ensure alignment of program with strategic objectives

4.5.4.  Responsibilities of Sponsoring Group

4.5.4.1.              Provide organizational context of Program

4.5.4.2.              Authorizing program mandate

4.5.4.3.              Authorizing program definition

4.5.4.4.              Participate in end of tranch reviews

4.5.4.5.              Authorize funding

4.5.4.6.              Resolve issues between programs

4.5.4.7.              Authorize strategic direction

4.5.4.8.              Authorize the progress

4.5.4.9.              Lead by example to implement values

4.5.4.10.           Provide commitment and endorsement

4.5.4.11.           Appoint SRO

4.5.4.12.           Authorize Vision Statement

4.5.4.13.           Authorize delivery and sign off

4.6.    SRO

4.6.1.  Responsibilities of SRO

4.6.1.1.               Create and communicate vision

4.6.1.2.               Provide leadership and direction

4.6.1.3.              Secure investment

4.6.1.4.              Ensure program delivers capability, achieves outcome and realizes benefit

4.6.1.5.              Establish governance

4.6.1.6.              Ensure viable business case

4.6.1.7.              Interface with stakeholders

4.6.1.8.              Monitor strategic risks

4.6.1.9.              Maintain alignment with organizational strategy

4.6.1.10.           Assurance and Audit reviews

4.6.1.11.           Ensure program is organized properly

4.6.1.12.           Appoint, Chair and set priorities for program board

4.6.2.  Key attributes of a SRO

4.6.2.1.              Have seniority for the responsibilities and accountabilities of the role

4.6.2.2.              Be proactive and visible as the driving force behind the Program

4.6.2.3.              Possess strong leadership and decision making skills

4.7.    Program Board – Established by the SRO

4.7.1.  Responsibilities of the program board

4.7.1.1.              Define acceptable risk profile and threshold

4.7.1.2.              Ensure program delivers within boundaries

4.7.1.3.              Resolve conflicts between projects

4.7.1.4.              Assure integrity of benefits profile and realization plan

4.7.1.5.              Maintain focus on Blueprint

4.7.1.6.              Provide assurance for operational stability and effectiveness through delivery cycle

4.7.2.  Membership of program board

4.7.2.1.              SRO

4.7.2.2.              Program Manager

4.7.2.3.              BCM

4.7.2.4.              Optional:

4.7.2.4.1.                     Project Executives

4.7.2.4.2.                     Representatives from corporate function (like Finance)

4.7.2.4.3.                     Lead supplier

4.8.    Program Manager – Responsible for leading, managing, set up of the program, delivery of capability, realization of benefits, closure of program.  Business Change Manager – Responsible for benefits realization via their adoption.

4.8.1.  Responsibilities of the Program Manager

4.8.1.1.              Day to day management

4.8.1.2.              Agent on behalf of SRO

4.8.1.3.              Plan, design, and monitor progress

4.8.1.4.              Develop and implement governance framework

4.8.1.5.              Coordinate projects and interdependencies

4.8.1.6.              Manage Risks and Issues

4.8.1.7.              Maintain integrity of Program

4.8.1.8.              Manage budget

4.8.1.9.              Facilitate appointment of individuals to teams

4.8.1.10.           Ensure output of project meets program requirements

4.8.1.11.           Facilitate development of Blueprint

4.8.1.12.           Manage Blueprint – Ensure capabilities delivered align

4.8.1.13.           Manage performance of program team

4.8.1.14.           Maximize allocation of resources and skills

4.8.1.15.           Manage suppliers

4.8.1.16.           Manage communication with Stakeholders

4.8.1.17.           Initiate intervention when gaps found

4.8.1.18.           Report progress to SRO

4.8.2.  Key attributes of a Program Manager

4.8.2.1.              Ability to work positively with individuals and groups

4.8.2.1.1.                     Program Management Team

4.8.2.1.2.                     Senior Managers

4.8.2.1.3.                     Project Team Members

4.8.2.1.4.                     Third Party Service Providers

4.8.2.2.              Seniority to take on responsibilities required by the role

4.8.2.3.              Strong leadership and management skills

4.8.2.4.              Understanding of wider objectives of Program

4.8.2.5.              Credibility within program and ability to influence

4.8.2.6.              Good knowledge of techniques for planning, monitoring and controlling programs, including risk management

4.8.2.7.              Good knowledge of project management approaches

4.8.2.8.              Good knowledge of budgeting and resource allocation procedures

4.8.2.9.              Ability to find innovative ways to solve or pre-empt problems

4.9.    Business Change Manager (BCM) – Responsible for realizing the benefit by embedding capability into business operations.  Requires intimate knowledge of and credibility in operational business

4.9.1.  Responsibilities of BCM

4.9.1.1.              Primarily benefits focused

4.9.1.2.              Represents business and SRO for:

4.9.1.2.1.                     Defining the benefits

4.9.1.2.2.                     Defining the future state of business area

4.9.1.2.3.                     Assess progress towards realizing benefits

4.9.1.2.4.                     Achieve measured improvement

4.9.1.2.5.                     Monitor performance

4.9.2.  Key attributes of the BCM

4.9.2.1.              Drawn from relevant business area

4.9.2.2.              Ongoing operational responsibilities within the business area

4.9.2.3.              Have the confidence of senior management

4.10.Business Change Team – Group that could be formed to help the BCM by guiding stakeholders through the change cycle.

4.11.Program Office

4.11.1.    Plays two roles:

4.11.1.1.           Provide support and guidance to the projects and initiatives

4.11.1.2.           Be the home for governance and control. Includes:

4.11.1.2.1.                 Standards

4.11.1.2.2.                 Approvals

4.11.1.2.3.                 Financial monitoring

4.11.1.2.4.                 Assurance

4.11.1.2.5.                 Health Checks

4.12.Program Assurance – Assess certain aspect of program to generate confidence that program is on track

4.13.Additional Governance Roles

4.13.1.    Risk Manager

4.13.2.    Program Accountant

4.13.3.    Design Authority – Some specific SME area

4.13.4.    Benefits Realization Manager

4.13.5.    Procurement Expertise

4.13.6.    Communication Manager

4.13.7.    Resource Manager

4.14.Implementing and Managing the program organization

4.14.1.    There is no one exact organizational model that will fit all programs

4.15.Program Organization within Transformational Flow – Leadership style could vary over the life of a program:

4.15.1.    Identifying a Program

4.15.1.1.           Best led by facilitating, guiding and offering suggestions

4.15.2.    Defining a Program

4.15.2.1.           Style must drive the coordination and ensure best elements emerge from design

4.15.2.2.           Organizational structure document is the output

4.15.3.    Managing the Tranches

4.15.3.1.           Focus is on outcome and delivery

4.15.3.2.           Instructive leadership style is best

4.15.4.    Delivering the Capability

4.15.4.1.           Project Management Skills applied here

4.15.4.2.           The SRO shouldn’t get too involved

4.15.4.3.           BCM satisfied that completed work will deliver benefits

4.15.5.    Realizing the Benefits

4.15.5.1.           Focus is on:

4.15.5.1.1.                 Communications

4.15.5.1.2.                 Preparing organization for change

4.15.5.2.           Skills needed – Business Analyst, Planning, Training

4.15.6.    Closing a Program

4.15.6.1.           Close the program and ensure benefits

4.15.6.2.           Management Style:

4.15.6.2.1.                 Get the job done

4.15.6.2.2.                 Analyze results

4.15.6.2.3.                 Deal with people issues

5.       Vision

5.1.    Introduction – A picture of a better future

5.2.    Characteristics of a Good Vision Statement

5.2.1.  Written as a future statement

5.2.2.  Understood by stakeholders – easy to communicate

5.2.3.  Written with broadest grouping of stakeholders as the audience

5.2.4.  Engages the heart as well as the head

5.2.5.  Sets out current reality as part of justification for change

5.2.6.  Matches degree of transformation change with boldness of vision conveyed

5.2.7.  Avoids target dates

5.2.8.  Described as desired future

5.2.9.  Verifiable, but without too many performance targets

5.2.10.    Flexible to remain relevant

5.2.11.    Provides context and direction for Blueprint

5.2.12.    Short and memorable, but relevant

5.3.    Developing and Maintaining the Vision Statement

5.3.1.  Developed by SRO and a select few

5.3.2.  Included in Program Brief

5.4.    Vision within the Transformational Flow

5.4.1.  Identifying a Program – Vision Statement drafted

5.4.2.  Defining a Program – Vision Statement refined

5.4.3.  Managing the Tranches – Act as a beacon.  Used to guide decision making.

5.4.4.  Delivering the Capability – Clear connection for each project initiated

5.4.5.  Realizing the Benefits – Contents of vision statement underpin communication and help motivate change

5.4.6.  Closing a Program – Test is to see if it has been achieved.  Some benefits may remain to be realized.

6.       Leadership and Stakeholder Engagement

6.1.    Introduction – The better the leader, the better the chances of success

6.2.    Nature of Stakeholder engagement and role of leadership - .  Must involve stakeholders

6.3.    Leadership

6.4.    Business Change Management

6.5.    Communications with the projects and other programs

6.6.    Steps involved in Stakeholder Engagement

6.6.1.  Identify Stakeholders – Who

6.6.2.  Create Stakeholder Profiles – Why and what

6.6.3.  Define stakeholder engagement strategy - How

6.6.4.  Planning the engagement – When.  Engagement is more active and embracing than communications. 

6.6.4.1.              Objectives of communications process

6.6.4.1.1.                     Keep awareness and commitment high

6.6.4.1.2.                     Ensure expectations do not drift out of line

6.6.4.1.3.                     Explain what changes will be made and when

6.6.4.1.4.                     Describe desired future

6.6.4.2.              Core elements of successful communications

6.6.4.2.1.                     Stakeholder identification and analysis

6.6.4.2.2.                     Message clarity and consistency

6.6.4.2.3.                     Effective system of message delivery

6.6.4.2.4.                     Feedback collection system

6.6.4.3.              Stakeholder profiles feed communication plan

6.6.4.4.              Communication Plan should be designed to:

6.6.4.4.1.                     Raise awareness

6.6.4.4.2.                     Gain commitment

6.6.4.4.3.                     Keep informed

6.6.4.4.4.                     Promote key messages

6.6.4.4.5.                     Make communications two way

6.6.4.4.6.                     Understanding of outcome

6.6.4.4.7.                     Promote outcomes

6.6.4.5.              Communication Plan should answer:

6.6.4.5.1.                     What are objectives of each communication

6.6.4.5.2.                     What are the key messages

6.6.4.5.3.                     Who are stakeholders

6.6.4.5.4.                     What information will be communicated

6.6.4.5.5.                     What reaction might stakeholders have

6.6.4.5.6.                     What do we need to be sensitive of

6.6.4.5.7.                     When will each communication be delivered

6.6.4.5.8.                     How much and what detail

6.6.4.5.9.                     What mechanism

6.6.4.5.10.                 How will feedback be encouraged

6.6.4.5.11.                 How will feedback be recorded and reviewed

6.6.5.  Engaging Stakeholders – To Do’s

6.6.5.1.              Engage – Ask….then influence

6.6.6.  Measuring Effectiveness – Results

7.       Benefits Management

7.1.    Introduction – The heart of Program Management.

7.1.1.  Benefit – Measurable Improvement

7.1.2.  Dis-benefit – Measurable decline

7.2.    Alignment of Benefits with Corporate Objectives

7.2.1.  Path to Benefits Realization

7.2.1.1.               Projects create Output

7.2.1.2.               Output builds Capability

7.2.1.3.               Capabilities enable Outcomes

7.2.1.4.               Outcomes realize Benefits

7.2.2.  Programs deliver transformational change as opposed to incremental change

7.2.3.  Benefits management may continue beyond end of Program

7.3.    Benefits Categorization – Benefits should be categorized to ensure a balanced portfolio

o    Why Categorize?

§  Ensure the proper level of risk

§  Reporting and tracking

§  Identify overlaps

§  Track relationship between objectives and benefits

§  Help manage change to priorities

§  Create common set of terminology

§  Enable portfolio level view of benefits

o    Possible categories

§  Value

§  Financial Impact

§  Timeline

§  Level of Risk

7.3.1.  Value – The three E’s is a good starting point for defining benefits:

7.3.1.1.              Economic Benefit

7.3.1.2.              Effectiveness Benefit

7.3.1.3.              Efficiency Benefit

7.3.2.  Financial Impact

7.3.3.  Corporate Objective

7.3.4.  Stakeholder Impact

7.3.5.  Timeline

7.3.6.  Level of Risk

7.4.    Benefits Management Cycle

7.4.1.  Identify Benefits

7.4.1.1.              Use a benefits profile

7.4.1.2.              Possibly consolidate into Benefits Register

7.4.1.3.              Each benefit is assigned to someone

7.4.2.  Plan Benefits Realization

7.4.2.1.              Benefits Attribution

7.4.2.2.              Benefits Validation – should pass 4 critical validation tests

7.4.2.2.1.                     Description – What is the benefit

7.4.2.2.2.                     Observable outcomes – What will be the noticeable difference between pre and post program

7.4.2.2.3.                     Attribution

7.4.2.2.3.1.   Where will benefit arise?

7.4.2.2.3.2.   Can this program claim benefit?

7.4.2.2.3.3.   Is accountability and responsibility clear?

7.4.2.2.4.                     Measurement – How and when will achievement be measured

7.4.2.3.              Benefits Realization Plan – Should be developed along side Program Plan

7.4.3.  Deliver Benefits Realization – 3 Stages

7.4.3.1.              Pre Transition – Establish KPI and Metrics

7.4.3.2.              Transition – BCM – Monitors performance

7.4.3.3.              Post Transition – Benefits reviews at the end of each tranch

7.4.4.  Benefits Reviews – Benefits should be quantifiable and measurable

8.       Blueprint Design and Delivery

8.1.    Introduction

8.1.1.  Vision statement gets expanded into Blueprint

8.1.2.  Blueprint is not concerned with how to get to the future state.  The how is dealt with when designing project dossier.  Project dossier – Different solutions and routes to get to future state

8.2.    Blueprint Design - Blueprint is model of future organization, its practices and processes and the information it requires and the technology that supports its operation. Blueprint provides Target Operating Model.

o    POTI model outlines what should be in Blueprint

§  Processes - business models, operational costs, performance levels

§  Organizational structure - roles, skills

§  Technology - buildings, systems, equipment

§  Information

8.2.1.  Future State – Blueprint shows intermediate future state.  Blueprint describes the elements of the future organization.  It is the combination of these elements that enable outcome.

8.2.2.  Current State and Gap Analysis

8.3.    Designing the Blueprint Delivery

8.3.1. Options analysis

8.3.2. Optimizing the approach

8.3.3. Step changes through tranches

8.3.3.1.              A Tranch:

8.3.3.1.1.                     Made up of one or more projects or activities

8.3.3.1.2.                     Delivers a step change in capability for the organization

8.3.3.1.3.                     Provides a control point at which program can be redirected or stopped

8.3.3.1.4.                     Has it’s own Business Case

8.3.3.1.5.                     The benefit of sequential tranches is the organization can learn from what it has achieved thus far

8.3.3.1.6.                     More difficult when over-lapping

8.4.    Blueprint design and delivery within the transformational flow

8.4.1.  Identify a Program – Document “as is” state (Blueprint)

8.4.2.  Define a Program

8.4.2.1.              After vision statement

8.4.2.2.              Define “To Be” state (Blueprint)

8.4.2.3.              Done in parallel with developing benefits and the projects

8.4.3.  Managing the Tranches – The Blueprint maintains direction and control

8.4.4.  Delivering the Capability

8.4.4.1.               Provides bases for requirements for the projects

8.4.4.2.              Basis for more details in the project briefs

8.4.5.  Realizing the Benefits – The blueprint provides the “as is” state.  This is the baseline to compare against.

8.4.6.  Closing a Program – Success will be measured on whether capability was delivered as defined in Blueprint.

9.       Planning and Control

9.1.    Introduction – Key to success of any transformation Program

9.2.    Program Plan – Key document.  Provides complete picture

9.2.1.  Resources

9.2.2.  Resource Management Strategy and plan

9.2.3.  Risk Management

9.2.4.  Project Dossier

9.2.4.1.              Project Register includes

9.2.4.1.1.                     Description

9.2.4.1.2.                     Requirements and relationship to Blueprint

9.2.4.1.3.                     Specific outputs required

9.2.4.1.4.                     Time Constraints

9.2.4.1.5.                     Dependencies

9.2.4.1.6.                     Anticipated budget

9.2.4.1.7.                     The contribution to program benefit

9.2.4.2.              Project Briefs get built from Project Register entries

9.2.5.  Deadlines and Constraints

9.2.6.  Scheduling – The program treats each project as a black box.  Use Dependency Network.

9.2.7.  Priorities

9.2.7.1.              Procurements

9.2.7.2.              Resource Requirements

9.2.7.3.              Early Benefits Realization

9.3.    Program Control

·              End of tranch review are control points

·               Program delivers benefit through outcome

·               Projects deliver output and capability

9.3.1.  Monitoring and Control Strategy

9.3.1.1.              How will maintain governance

9.3.1.2.              Project starts and stages controlled

9.3.1.3.              Interdependencies managed

9.3.2.  Dependency Management

9.3.2.1.              3 Types of dependencies

9.3.2.1.1.                     Internal – How projects relate to each other

9.3.2.1.2.                     Intra – Tied to another program or corporate portfolio

9.3.2.1.3.                     External – Outside all programs.  Like: Legislation or strategic direction

9.3.3.  Starting Projects

9.3.3.1.              Use Project Brief

9.3.3.1.1.                     Includes

9.3.3.1.1.1.1.          Objective

9.3.3.1.1.1.2.          Scope

9.3.3.1.1.1.3.          Outputs

9.3.3.1.1.1.4.   



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