Chapter 1 - Introduction

PgMP® Preparation Course

 Overview

1.0 Recap Project Management

1.1 Purpose of the Standard for Program Management

1.2 What is a Program?

1.3 What is Program Management?

1.4 Relationships

1.5 Program Management Office

1.6 Role of the Program Manager

1.7 Program-External Factors

 Recap Project Management

What is a Project?
Any temporary endeavour undertaken to produce a unique product, service
or result.

What is Project Management?

Project management is the application of knowledge, skills, tools and
techniques to ensure that projects meet requirement expectation.

Relationship between Projects and Operations

Projects (Temporary & Unique) & Operations (repetitive)
 Purpose of the Standard
The standard for program Problems solved by the standard
management is a compilation
• Uncoordinated projects
generally recognized of best
practices that can be applied on • Lack of alignment to strategy
most programs, most of the time. • Fire fighting

It provides a common framework • Low resource utilization

for running programs • Waste and rework
• Inconsistencies in project results

• Provides a common terminology (Role

– Program and Project Manager

 What is a Program?

A program is a group of related projects managed in a

coordinated way to obtain benefits and control not available
from managing them individually.
PM1 SPM 2nd Edition

Operati
Related ons
Projects

Effort in
managing

Program
 Why a Program?
• Resources, talent, and expert judgment are shared across the
program.
• Dependency between projects within the program
• All projects follow the same rules and policies of the program.
• Collective bargaining, shared procurement, and vendor
management are unified.
• Risk and issue management is centralized at the program level.
 Why a Program?
• Information can be more freely shared.
• Communication stems from the program manager for all
project managers.
• Stakeholder management follows a common approach.
• Costs and schedule control is managed from a centralized locale.
 Components that make a Program
Consider a shopping complex
program

Related projects mean discrete

efforts that are grouped
together by commonalities
between efforts.
 Control and Benefits

A benefit is an outcome of
actions and
behaviors that provides
utility to the organization
 Program Examples

Enclosure

Mot
herb
oard

PC Mem
ory

Soft
ware
Program Management
Program Manager is responsible for
the entire delivery of the product to Chipset
the market
 Program Examples

Merger Program
Outsourcing Program
Service Enhancement Program
IT Modernisation Program
Ghana@100 Celebration
Rural development Program
 Program Examples
M&T Consult is a technology and management consulting firm. M&T wants to double
its turnover by 2013 as part of its new strategy. The Managing Partner wants to
capitalize on the growing popularity of the project management field. The Managing
partner has put together the following list of project management courses:
• PM 101: Basics of project management
• PM 201: Certified Associate in Project Management (CAPM) training
• PM 202: Project Management Professional (PMP) training
• PM 301: Program Management Professional (PgMP) training
• PM 302: Managing project risks

Why would this initiative be better handled as a program than a Projects?

 Program Management
Program management is the centralized coordinated management of a program
to achieve the program’s benefits and objectives.

Source: PMI SPM 2nd Edition

It involves aligning multiple projects to achieve the program

goals and allows for optimized or integrated cost, schedule and effort.
 Relationships: Projects,
S
Programs & Portfolio
t
r
Business •Increase Market share a
Strategy •Improve Revenue
t
P e
o g
r y
t
f
o
Portfolio •Expand to New Markets
P l
•Extend Product Lines
r i
o o
g
r
a
P m
r s
Programs •Emerging Markets Program o
•New Product Introduction
j
e
Organization with a maturity in c
Project and program t
s
management use this
hierarchical approach to launch
programs and projects so as to
keep them aligned to strategy
 Relationships: Projects, Programs & Portfolio
S
What is the strategy of your t
organisation? r
a
Does your program or t
project align to the strategy P e
g
of your organisation?. o
y
r
How? t
f
Giant ABC is a o
P l
manufacturing concern in i
r
30 countries. The strategy o o
of Giant ABC is to double g
r
its profits by 2013 and this a
is to be achieved by the P m
use operational and r s
o
marketing excellence j
portfolios with an e
c
automation of its business t
process using an ERP s
system.
Relationships: Projects, Programs & Portfolio

Consist of group of related projects

 Interrelations - Projects, Programs & Portfolio

Portfoli o

Portfolio Program Projects Operations

Program
s
Projects Project Project

Portfolio Consist of portfolio, programs, projects and operations activity .

Programs Consist of group of related projects

Unique temporary endeavour to create product

Programs
 Interrelations - Projects, Programs & Portfolio

IT Portfolio

HW Upgrade ERP Program Database IT Consulting

Program Project Operation

P1 P2 P1 P2
Daily Daily
Work Work
P3 P3 P4
 Comparisons - Projects, Programs & Portfolio
Project Management Program Management
Provides Leadership to teams members Provides overall Leadership of program and
project managers
Concentrates on deliverables Concentrates on coordinating related
deliverables.
Initiated from a program Initiated from a portfolio
Focus on task and activities that Focus on the managing inter-dependence of
produce deliverables related projects
Focus on getting job done Focus on aligning all components to achieve a
strategic goal
Responsible for project resources Responsible for resource allocation between
projects
Executed within a smaller scope Wider scope of execution
controlled by project manager
Success is measured by the degree to Success is measured by the degree to which the
which it meets customer expectation. program meets the needs and benefits of the
program are met.
 Case Study 1 - Program Examples
Read the case studies on rural development. Why would you manage it as a
Program. Identify the components, benefits of each component to the
collective program benefit.
 Program Management Office

This is a full division within an organization mandated for project

Management activities. It centralizes and coordinates project work.
PMO will aid in:

 Making available critical project management related

knowledge to the projects within the organization
 Providing tools and templates for project management
 Supporting the tools and templates usage
 Making available critical resources to the projects on time .

• “Through 2004, IT organizations that establish enterprise standards for project management, including a
project office with suitable governance, will experience half the major project cost overruns, delays, and
cancellations of those that fail to do so.”

Gartner Research - The Project Office: Teams, Processes, and Tools - August 2000
 Program Management Office
Ensuring that PMO works:

 The role of the project office must be clearly defined with a mission and charter
 The Charter mandates that PMO and defines clear boundaries
 The commitment of senior management is required
 Ensure that the project office uses the right processes, tools and techniques

• The following should be noted before developing a PMO Charter:

– PMO Mission (as voiced by management)
– Customers & Stakeholders
– Service Offerings
– PMO Structure
– PMO Success Profile
 Role of the Program Manager

The role of the program manager is separate and distinct from that of the project
manager.

The program manager is responsible for ensuring that the overall program
structure and program management processes enable the component teams to
deliver their components successfully.

The program manager has overall responsibility of the program to ensure the
delivery of benefits and alignment of to organizational strategy.

The program manager does not manage nor interfere in individual components of the
program but coordinates the respective components to achieve a common goal
.
 Program Manager Knowledge and Skills

Communication
Time
Management
Leaders
Special hip
Program
Management Blend of
Knowledg
e Skills
and
People
Environmental Competen
Awareness
ce
Political
Strategic
Visioning Technic
al Skills
 Program Manager Knowledge and Skills
In Summary, the program managers must be able to do the following:

• Motivate, align, and direct the program stakeholders.

• Provide leadership to the program participants.
• Communicate as needed to the appropriate program stakeholders.
• Influence factors that may affect the project for better or worse.
• Negotiate to reach the best solutions for the program.
• Work with program stakeholders to resolve issues and conflicts.
 Program-External Factors
These are influences outside the program that can have a significant impact on
the program’s management and ultimate success.

Some of these enterprise environmental factors (EEFs) come from outside the
program but are internal to the larger organization, and some of these
influence scome from completely external sources.

The program manager is responsible for identifying these influences as much

as possible, and taking them into account when managing the program.
 Program-External Factors
Organizational Process Assets (0PA).
OPAs include any or all processes related to the assets, from any or all of the
organizations involved in the program that can influence the program’s
success.

These process assets include formal and informal plans, policies, procedures
and guidelines. It also includes organizational knowledge such as lessons
learned, historical information such as schedule, risk and earned value data.

Update of OPA is usually the responsibilty of the program team

 Program-External Factors
Enterprise Environmental Factors (EEF).

Outside of the program there are organizational factors that influence the selection,
design, funding, and management of the program.

External to both the program and its parent organization are environmental
influences that can impact both. Examples include:

 Changes in governmental regulations could affect a program

 Changes in market conditions may cause a program to be cancelled, slowed
down, or sped up
 Changes in the funding organization can cause a redesign of the product to save
money
 Changes in interest rates can cause funds to be made less available;
 Changes in political climate may cause program to halt
 New stakeholders may appear and change the direction of the program
 Questions
1). Kwame Owusu is the program manager in an organization. He has six projects
within his program. Who is responsible for the deliverables of each of the projects?

a. Kwame Owusu
b. project manager of each project
c. project sponsor
d. project team of each project

2). Oasis industries is planning to outsource their non core processes to cut costs. This
is inline with Oasis industry's current year strategy to improve operating margins.
Which of the following denotes Oasis's strategic intent:

a. Programs
b. Potfolios
c. Projects
d. Work packages
 Questions
3). The differences between projects, programs and portfolios can be explained
BEST by which statement below:-

a). Projects are planned in detail to deliver a product/service or result, programs

monitor projects and ongoing work and portfolios identify the current state of
program/project investments.

b). Projects are planned in detail to deliver a product/service or result, programs

are complete when the deliverables are delivered and portfolios are never
complete

c). Projects are planned at high level, programs deliver a product/service or result
and portfolios identify the current state of program/project investments

d). Projects are focused on task delivery, programs are completed when the
deliverables are delivered and portfolios are never complete
 Questions
4). Which of the following does not make a case for a program?
Choose one answer.

a. Group of projects that require a centralized procurement of resources

b. Group of projects that are related to each other only because of a common client
c. Group of projects that have interdependencies that need to be managed
d. Group of projects, each with a unique product, service or result, and each of the
projects are related to one other

5). Which of the following are the elements of a strategic plan? (Choose
one.)
a. Vision, mission, and program benefits
b. Vision, mission, and business objectives
c. Mission, vision, and project portfolio
d. Vision, goal, and ROI