Thomas Walenta, PgMP, PMP, PMI Fellow. Projects & Programs are two different animals, don't underestimate the gap

1. Projects & Programs are two different animals,
don't underestimate the gap
December 2014, Moscow
Thomas Walenta, PgMP, PMP, PMI Fellow
thwalenta@online.de

3. Not typical attributes of project managers:
Strategy alignment, positive towards change, strategy execution
Which profession has these attributes?

4. A Study reveals a disturbing reality: even among projects that are
delivered at least 90% on time & on budget, majority fails to
deliver 'business expectations'.
Business outcome
expectations include
 Delivery quality
 End-user adoption
 Business case
attainment
 Sponsor satisfaction
Challenged
53%
Succeeded
29%
Failed
18%
Corporate Executive Board (CEB), www.pmo.executiveboard.com, 2009 Study 'Project Managing Business Outcome'
The top-performing projects in terms of budget and schedule compliance attain on
average only 53% of their business outcome expectations.
What did the project managers miss?

5. Scope, budget, milestones = business benefits?
Successful project delivered
product in time & budget
Successful
benefits and created value
A benefit is the 'desired result of an initiative undertaken
to meet a need or solve a problem'

6. Are Project Managers educated to transform business
goals to requirements and benefits?
Project Manager‘s curriculums & certifications focus on
– Magic triangle scope/quality – cost – time
– Supporting processes like risk, quality, procuring
– Soft skills to lead a team
– Organizational skills
– Technology
costtime
scope/quality
How about strategic alignment, benefits realization and
C-Suite communication?

7. PM Standards and Methodologies provide no real help to Project
Managers in delivering benefits
• Benefits are specific to an industry / a company
• Benefits delivery is often seen as a primary task of middle management,
consulting companies or not addressed specifically
• Word 'Benefits' is found 24 times in PMBoK Guide 5th edition, but 129
times in PgM Standard 3rd edition, having benefits management as key
domain and related processes and artefacts
• Prince2 mentions benefits in the business case and benefits review plan
('Managing Successful Programs' MSP covers benefits management)
• IPMA ICB does not have a focus on benefits management, offers Success
Criteria for projects
• ISO 21500: projects contribute to benefits, which are created by
operations

8. ?
Stake-
holders
(sponsors)
Stake-
holders
(users)
Strategy
How to successfully to fulfill business expectations
= deliver benefits to stakeholders?
Environment (society, jurisdiction, regulators, market etc)Requirements
Benefits

9. Program
Stake-
holders
(sponsors)
Requirements
Stake-
holders
(users)
strategy
Project A
deliver
able
Scope
Cost
Time
Benefits
(consolidated)
Project B
deliver
able
Scope
Cost
Time
Discrete
benefit
Benefits
Identification
Benefits
Analysis &
Planning
Benefits
transition
Benefits
sustainment
Benefits
Delivery
Understand what has to be done in addition to project
management - and how it can be accomplished!
Component C Discrete
benefit
Environment

10. Stake-
holders
(sponsors)
Stake-
holders
(users)
Strategy
How to successfully to fulfill business expectations
= deliver benefits to stakeholders?
Environment (society, jurisdiction, regulators, market etc)Requirements
Benefits

11. Program Benefits Management transforms stakeholder
requirements into sustained benefits
Based on PMI Standard for Program Mgmt, 3rd Ed. & IBM's WWPgMM
Benefits
Identification
Benefits
Analysis &
Planning
Benefits
transition
Benefits
sustainment
Benefits
Delivery
Business
Case Program
Mission
Define
CSFs Measurement
Structure
Benefits
Realisation
Plan
Define
Program
Components
Define
KPIs Performance
Baseline
Start,
monitor &
transition
components
Evaluate
KPIs
Monitor
organizational
environment
Program definition
Program benefits
delivery Program closure
Transition
Plan Verify
Transition
Operational
tasks
Program Lifecycle

12. Stake-
holders
(sponsors)
Stake-
holders
(users)
strategy
Who and what influences requirements?
Who can control requirements?
Project or Program Manager?
Project
deliver
able
Scope
Cost
Time
Discrete
benefit
Environment
Benefits

13. Project Program Portfolio
Objective Create previously agreed
deliverables
Achieve previously agreed
and defined strategic
objectives, realize business
benefits
Permanently attempt to
reach the mission of the
organization
Duration Finite, short term Temporary, might be
flexible
Infinite
Focus of
Mgmt
Scope and deliverables Value and Benefits
Stakeholder Engagement
Interfaces and Integration
Prioritization of Projects &
Management of Resources
Decision-
making
In phases, based on
milestones/gates
In stages/projects, based
on benefits realization
In periods, based on
management cycle
Sponsor Program Manager or
Project Sponsor
Strategic Objective Owner
(Business Exec Sponsor)
Organization (CEO, COO)
Success In scope, quality, budget,
time & stakeholder
satisfaction
Achieve benefits & satisfy
stakeholder needs
Aggregate investment
performance
What is it
about
Efficiency Effectiveness Agility
Differences between projects, programs and portfolios

14. Program Project
Plan
Control
Deliver
Scope /
Quality
TimeCost
Understand
Create
Achieve
Strategy /
Benefits
GovernanceStakeholders
Program Management is outward focussed while Project
Management mainly deals with project internals

15. Capabilities of a successful program manager are different to those
of a good project manager
PMI Congress 2003 – Europe Paper
Pellegrinelli, Partington and Young

16. Example: How I became a Program Manager
2001/2: working as a multi project manager for an investment bank's IT
2002: was asked for a project assessment on a troubled EU SAP rollout
(my first encounter with SAP)
Issues identified:
parallel rollouts, productive systems and SAP operations unaligned
Insufficient communication with stakeholder groups
Proposed a program management system (PMS)
Key attributes: enable integration and specific communication interfaces
And … was asked to implement it (took 3 months and about 10 people)
Main issues identified:
- Unaligned parallel rollouts, productive systems and SAP operations
- Insufficient communication with stakeholder groups
Was then asked to run the remaining SAP rollouts as a program
(UK, eastern Europe, Russia, end: 2008)

17. SLF4
Relationship
Management
Specialist
Team
Program Management
SLF3
Organizational
Change
Management
SLF2
Architectual
Solution
Board
SLF7
Test &
Transition
Management
SLF5
Quality
Assurance
/ Risk
SLF6
Program
Mgmt
Office
SLF8
Resource
Management
Oper-
ations
Applic.
Mainten.
User
Help
DeskProject 4
.........Project 1
Operational Layer Functions
(Projects, Teams, Production)
Strategic Layer Functions
Project 3
Project 5
Project 6
Project 2 Enduser
Training
Team
SponsorsStakeholders,
e.g. Users
Business Steering
Committee
A Program Management System (PMS) ensures the linkage between
involved and affected stakeholder groups and the integration among
projects and with ongoing tasks
SLF1
Business
Strategy
Source: PMI Global Congress Toronto 2005
Paper Th. Walenta

18. Transition Steps from Project to Program Orientation
(by Liam Dillon, ldillon@turlon.com)
1. Delivery >>> Business
2. Schedules >>> Dependencies
3. Reporting >>> Escalation
4. Scope >>> Strategy
5. Crisis >>> Conflict
6. Team >>> Governance
7. Transfer >>> Transition
8.Salary >>> Challenge
9. Stress >>> Relaxation
10. Project Triangle >>>
Program triangle
Change the
thinking