A short article on Programme Management Best Practice

1. Strategic deployment of Program Management best-practice model
in financial institutions.
Author Name: Kaushik Pramanik, PMP, MSP, PGDOL(Oxford), DOL(LSE), Mtech (IIT), B.M.E
Introduction:
Structuredand industrystandard best-practiceProgramManagementframeworkisverymuchessential
to smooth execution of company strategy and objectives, achieve the result and gain the increased
customer satisfaction globally.
Financial institutionslikeBanks,Insurance companies,Financialdataproviders, Stockexchangesexecute
many multi-million dollars cross-functional and cross-divisional transformation programs spanning
across different geographic regions and divisions.
This article is focused on industry-standard practices and briefly describes how to deploy such a
framework in the global financial institutions.
Programme Management may be defined as the co-ordinated organisation, direction and
implementation of a portfolio of projects and activities that together achieve outcomes and realise
benefits that are of strategic importance.
Effective and efficient Program Management is the key success factor to any financial institutions to
transformthe company’s visionandvariousinter-relatedstrategic objectives spanning across different
sectors like core business, IT, operation, HR, finance; etc.
There are number of Program Management framework exists within the industry; as example, PMI
(ProjectManagementInstitute) basedSPM(Standard for Program Management) framework, TSO (The
Stationary Office,UKGovernment) basedMSP(Managing SuccessfulPrograms) framework,Universityof
Oxford Program Management framework, George Washington University Program Management
framework, Big 4 consultancy firm’s Program Management framework etc.
However, veryfewcompaniesaroundthe world follow the best-practice framework provided by major
institutesand universities even though there is a high level of benefit for using the industry-standard
program management framework. This article will provide a very brief overview of PMI based SPM
approach and TSO (The Stationary Office,UKGovernment) based MSP approach and how to deploy any
of these models through-out a global company through strategic execution.

2. Brief Overview of PMI based Standard for Program Management (SPM) approach:
Program delivers benefits to organizations by developing new capabilities or enhancing current
capabilities.Programsare initiatedfor achievingorganizationalgoalsandstrategicobjectivesthat are so
large scale that theycannotbe achievedbysingle project. Diagrammaticview of Standard for Program
Management framework is given below.
Source: THE STANDARD FOR THE PROGRAM MANAGEMENT, Second Edition, PMI, Chapter 1, 2 & 3
PMI based Standard for Program Management framework mainly consists of following key areas.
 Program Governance and Stakeholder Management: This area spans all the program life cycle
phases. Program governance overseas the progress of the program and the delivery of the
coordinated benefits from its components.
Programs are often too complex to be managed by a single individual, which is why appropriate
implementation of program governance is the critical factor for a program to succeed. Program
governance helps in managing risks, stakeholders’ benefits, resources, and quality across the
program life cycle. Furthermore, program governance ensures decision-making and delivery

3. managementactivitiesare focused on achieving program goals in a consistent manner, addressing
appropriate risks, and fulfilling stakeholder requirements.
Program governance also provides an appropriate organizational structure, the policies and
procedures necessary to support program delivery through formal program reviews. This is
facilitatedbythe regularandphase-gate-basedmonitoringof deliverables, performance, risks, and
issues by the program board.
Program stakeholder management identifies how the program will affect stakeholders (e.g., the
organizations’ culture, the local population, country-specific culture, resistance or barriers to
change, bureaucracy, etc.) and then develops a communication strategy to engage the affected
stakeholders,manage theirexpectationsandmanage acceptance of the objectives of the program.
Program stakeholdermanagementis the very importantfactortoestablish the programgovernance
and program organizational structure, which is monitored and reviewed through-out the program
life cycle.
 Program Life Cycle: Typical program life cycle consists of five phases (Pre-Program Preparations,
Program Initiation, Program Set-up, Delivery of Program Benefits, and Program Closure) as
mentioned in the above picture. End of each phase works as an entry point to the next phase.
Duringthe variousstagesof programlife cycle,programmanagerunderstandsthe strategicbenefits
of the program, develop the plan to initiate the program, define the program objectives and their
alignment with the organizations’ goals and vision, develop the high-level business case
demonstratinganunderstandingof the needs,businessbenefits, feasibility and justification of the
program,establishthe program governance mechanism, risk management protocols, and program
schedule.The programlife cycle complieswiththe needsof corporate governance and also ensures
that the expected benefits are realized in a predictable and coordinated manner.
 ProgramBenefits Management: Programdeliversbenefitstothe organization.Benefitsrealization
planning is part of program management which consists of interdependencies between benefits,
alignmentwith the strategic goals of the organization, benefit of delivery scheduling, metrics and
measurement, responsibilityfordeliveryof the final andintermediate benefits within the program,
and benefit realization.
At the end of the program, the benefits delivered should always be compared against those
promisedinthe initial businesscase toensure that the program actually delivered the full benefits
for which it was created.
 Program Management Process Groups: Program management process groups are a set of
interrelated actions, and activities performed to achieve a pre-specified outcome. Program
management processes are primarily integrative in that they coordinate the outputs of various
projects to derive the desired program outcomes.

4. A showninthe above picture,there are five processes (Initiation,Planning,Executing, Monitoring &
Controlling and Closing) in program management. Processes receive inputs from processes that
logicallyprecedethemandsendoutputstosuccessorprocesses. A guidingrule forapplyingprogram
management processes is to ensure that the program manager effectively delegates authority,
autonomyandresponsibilityfor day-to-day management of the projects to the designated project
managers.
Brief Overview of TSO based Managing Successful Programs (MSP) approach:
TSO (The Stationary Office, UK Government) based MSP approach is basically based on a two-layer
framework.Asshownbelowinthe diagram, the outerlayerconcentrateson various program principals
like empowerment,leadingthe change,envisioning,addingvalue,focusingon benefits, alignment with
corporate strategy,capabilitydevelopmentandlearningexperience.These principalsare veryimportant
to execute aglobal transformationprograminthe organizationandmostlylinked with leadership skills
associated with Program Management.
TSO (The Stationary Office) - Frameworkand Process
Remainingalignedwith
corporate strategy
Organisation
Closing a
Programme
Defining a
Programme
Identifying a
Programme
Managing
theTranches
Delivering the
Capability
Realising
the Benefits

5. Sources:
1. MSP framework and concepts, published by The Stationary Office (TSO), UK Government
2. http://www.managing-successful-programmes.com/
3. Managing Successful Programmes Manual - 4th Edition
4. Swiss Program Management Conference, 2012
The second layer core consists of program management activities like program vision development,
organization, stakeholder management, business case development, blue print design, planning &
control, program risk management, quality management, program delivery, benefit realization
management, etc.
Present Scenario:
Many global financial institutes do not follow any industry-standard program management framework
rather thanfollowtheirowncustomizedframeworkandguidelinestoexecute the program. Sometimes
the in-house framework is not consistent enough.
The usage of inconsistent approach results various downside risks like increased financial risk (e.g.;
budget overrun), reduced customer satisfaction, low quality ends deliverables, slippage on schedule,
usage of differentprogramterminology,processesandtools, below the standard management and KPI
reporting, and lacking of controlled governance mechanism.
The main reasonbehindthisisthat Sr. Management of the organization doesn’t value best practice, or
theyare notaware of the latestindustrystandard.Many program managers are not properly trained to
execute acomplex cross-divisional andcross-functional program in the large organization and very few
people in the company are aware of strategic implications of program management and portfolio
management.
To overcome this problem, it is very much essential to form a central program management control
departmentwhich willbe responsible for rolling-out the best-practice framework across divisions and
regions through effective communication, collaboration and hands-on training to program managers.
Deployment Model:
Deployment of Program Management best practice framework in the global organization across
divisions and regions is a herculean task. To achieve the goal, several strategic measures have to be
taken into consideration.
As shown in the below figure, three work streams have to be formed. The Communication and
Communities Work stream is responsible for creating the awareness about program management,
communicatingguidelines & policies about the best-practice framework and establishing the program
management community across the organization.

6. Deployment model: Work Stream concept
“Program
Management – Best
Practice”: Deployment
Communication &
Communities Work Stream
Training, Tools & Techniques,
and Support Work Stream
Cross-functional
collaboration Work
Stream
GovernanceGovernance
Setthe strategicdirection
Establishdisciplinedexecution
Define variousactions
Prioritise & communicate
Establishthe accountability
Define rewards&recognition
Evaluate framework &roadmap
Investmentdecision
Source: Own idea
Training,Tools & Techniques,and Support workstreamisresponsible for developmentandexecution of
a frameworkrelatedtotraining,tools& techniques, and user support of “Program Management – Best
Practice” to increase the quality and efficiency of numerous program management environments in
the global organization.
Finally, Cross – functional collaboration work stream will be responsible for collaboration and
coordination between above two work streams across organizational divisions and regions, corporate
trainingdepartment,externalpartiestofacilitate smoothdeploymentof “Program Management – Best
Practice” framework in the company.
Furthermore, astronggovernance model must be in place to integrate three work streams mentioned
above. The main responsibilities of the governance model are setting-up the strategic direction,
disciplinedexecution, prioritize andcommunicate,establishmentof accountability,definition of reward
& recognitionand various investment decisions. A sample governance model for deployment is given
below.

7. COO/
DOO/
GIO
Governan
ce
Program Management– Best Practice Governance
Strongfocus from top.
Endto end governance.
Topto bottom transparency.
High-level of accountability.
Resultorientedstructure.
Clearstrategy & big picture.
Long-termsustainability.
Well drawnroad map.
Teamforce inaction.
Fosteringcollaboration.
Catalystto transformation.
Rewardand recognition.
COO/ DOO GIO
Governance triangle
Consistsof
Headof Program
ManagementPractice,
Workstream leaders(3)
Frequency(2permonth)
Consistsof
Workstream leaders,
Regional participants,
Frequency(2permonth)
Each work stream will have governance mechanism…
Workstream Governance
CoEEnterprise Transformation
Governance
Source: Own idea
Conclusion:
All major financial institutions are continuously lacking of standard program management practice. In
today’s volatile economic and global environment, it is very important to streamline program
management practice across the organization which will help to achieve company’s vision, goals and
strategicobjectives inasystematicmanner.The industrystandard best-practicemethodology providesa
sustainable framework that is clear, complete, relevant and generally recognized as good practices on
most programs, most of the time.
References:
1. The Standard For Program Management, Second Edition by PMI (Project Management
Institute)
2. http://www.managing-successful-programmes.com/
3. Managing Successful Programmes Manual - 4th Edition
4. Swiss Program Management Conference, 2012