The Standard For Program Management: PMI Heartland Chapter

The Standard for
Program Management
Presented May 16, 2007

By
Garry Flemings, PMP
Lorraine Henry, PMP
Renée Wickes, PMP, MBA
For
PMI® Heartland Chapter
1
© Copyright 2007 by Garry Flemings, Lorraine Henry, and Renee Wickes
Overview
• Historical context
• The Structure of Program Management
• Introduction to Program Management
• The Program Management Life Cycle
• Program Management Processes
• Applying Program Management
2
Context
• 1969, Project Management Institute forms
– Today, PMI “with more than 200,000 members in over
150 countries, is the world’s foremost advocate for the
project management profession. A vital and forward-
thinking organization, PMI is comprised of 247
chartered chapters …” (www.PMI.org, Mar 4, 2007)
• 1987, A Guide to the Project Management Body
of Knowledge first published
– updated in 1996 and 2004
– now approved as an American National Standard
(ANS) by the American National Standards Institute
(ANSI)
3
Context (cont’d)
• 2003, Organizational Project Management
Maturity Model published: helps
organizations assess strengths and
weaknesses
• 2006, The Standard for Portfolio
Management published
• 2006, The Standard for Program
Management published
4
Standard
• Definition: “something considered by an authority
or by general consent as a basis of comparison;
an approved model” The Random House College Dictionary
• For the standards in this discussion, the authority
is PMI.
• These standards are approved models for your
company to use in designing your processes.
– Good: “We based our company’s processes on PMI
standards.”
– Less meaningful: “Our company uses PMI processes.”
5
Portfolios, Programs, and
Projects
• Program Management, p 9
6
Project Management
• Definition, project: “A project is a
temporary endeavor undertaken
to create a unique product,
service, or result.” PMBOK® Guide, p 5
• Definition, project management: “the

application of knowledge, skills, tools and
techniques to project activities to meet project
requirements.” PMBOK® Guide, p 8
• PMP, Project Management Professional: “the

profession’s most globally recognized and
respected credential” www.PMI.org, Mar 4, 2007
7
Program Management
• Program: “a group of related
projects managed in a
coordinated way to obtain
benefits and control not
available from managing them
individually.” Program Management, p 4
• Program management: “the centralized

management of a program to achieve the
program’s strategic benefits and objectives.”
Program Management, p 4
8
Portfolio Management
• Portfolio: “a collection of
components (i.e., projects,
programs, portfolios, and other
work such as maintenance and
ongoing operations) that are
grouped together” Program Management, p 5
• “A portfolio always exists within an organization
and it is comprised of a set of current initiatives.”
Program Management, p 6
You cannot not do portfolio management. You’re doing it!

9
Structure of Program Management
• Chapter 1: Introduction
– Defines “program” and “program
management”
– Relates program management to portfolio
management, to project management, and to
organizational planning
– Introduces themes of program management
• Benefits management
• Program stakeholder management
• Program governance
10
Structure (cont’d)
• Chapter 2: Program Life Cycle and
Organization
– Introduces a life cycle model of program
management
– Relates the themes from Chapter 1 to all parts
of the life cycle
– Discusses the phases of the life cycle in more
detail
11
Structure (cont’d)
• Chapter 3: Program Management
Processes
– Breaks the phases of the model into 36
processes.
• Similar: the PMBOK® Guide breaks project
management into 44 processes.
– Discusses each process in some detail.
• We won’t cover them in this 75 minute period. We
will cover the phases.
12
Part 2 - Program Life Cycle
Part 3 – Program Processes
• Program Life Cycle
– Program Governance
– Program Benefits
– Program Stakeholder Management
• Program Processes
– Initiating
– Planning
– Executing
– Controlling
– Closing
13
Program Life Cycle
G = Gating Review
Mandate
3. Establishing a
1. Pre- 4. Deliver 5. Closing
2. Program Program Mgmt &
Program G1 G2 G3 Incremental G4 the G5
Setup Technology
Set up Benefits Program
Infrastructure
Governance Benefits Stakeholder

Initiation Identification Identification
Identify & Quantify Identify Internal &

Establish program External
Business Benefits
Stakeholders
Develop Charter &
Business Case Identify Key
Initiating Processes
Interests
ID common benefits & dependencies
Follow Project ID benefits for each project/program
Selection Process ID resources
ID project/program schedule
Create program charter
Secure Program
Selection 15
Program Life Cycle
G = Gating Review
Mandate
3. Establishing a
Setup Technology
Infrastructure

Set-Up Analysis Analysis
Align Program Derive & Analyze Key
with Org Strategic Prioritize Expectations &
Direction Components Motivations
Detailed Program Derive Benefit Program Change
Plan Metrics Impact Analysis
Initial Risk
Planning Processes Identification
Define timeline and dependency flow chart
Define Steering Committee and roles & responsibilities Establish
Define program management processes Communication
Define risk management Preferences
Define communication plan 16
Program Life Cycle
G = Gating Review
Mandate 3. Establishing
1. Pre- a Program 4. Deliver 5. Closing
2. Program
Program G1
Setup
G2 Mgmt & G3 Incremental G4 the G5
Set up Technology Benefits Program
Infrastructure
Governance Planning Benefits Planning Stakeholder Planning
Establish PMO Establish Benefits Assess Stakeholder

Realization Plan Influence &
Monitor & Control
Importance
Framework Establish Benefits
Completed Monitoring Stakeholder Risk
Infrastructure Map Benefits into Analysis & Risk
Completed Program Plan Profiling
Systems & Stakeholder Roles &
Communications Responsibilities
Completed
Monitor & Control

Resource Mgmt
Communication Mgmt 17
Program Life Cycle
G = Gating Review
Mandate
3. Establishing a 4. Deliver
1. Pre- 5. Closing
Program G1
Setup
G2
Technology
G3 Incremental G4 the G5
Infrastructure
Governance Monitor Benefits Stakeholder Monitor

& Control Realization & Control
Initiate Projects Monitor Assess Program
Components Changes and
Assess Risk and
Maintain Impact to
Initiate Change
Benefits Stakeholder
Ensure Adherence
Register Maintain
to Policy
Stakeholder
Report Benefits
Communication
Monitor Stakeholder
Influence &
Executing Process Importance
Controlling & Monitoring
18
Program Life Cycle
G = Gating Review
Mandate
3. Establishing a
Setup Technology
Infrastructure

Transition Transition Transition
Execute Closure Consolidate Transfer the
Coordinated On-going
Lessons Learned Benefits Responsibility
Complete & Transfer the
Archive On-going
Documentation Responsibility
Closing Process
Document Lessons Learned
Ensure each project completes all tasks
Establish on-going benefits monitoring
Communicate closure to Steering Committee
19
Applying Program Management
• Initiating
– Sales Program
• Company A wants to:
– Refocus remote offices processes to be more sales and
marketing driven
– Transfer administrative process to main office
– Reassign remote office staff to focus on sales and marketing
responsibilities
– Resources
• Production
• Business
• Technical
20
Program Life Cycle
• Program Management, p 9
21
• Scope of Project A
– To administer
• The payment of resources
– In a way that:
• Centralizes administration in the Main Office
• Allow for Remote Office input
• Provides electronic reports and payments
• Utilizes a secure, reliable technology platform
• Leverages opportunities to realize increased administrative efficiency
• Avoids adverse impact on expenses
• Supports audit processing
– So that
• Payment of resources timely and accurately and service levels are maintained.
– As measured by
• Reduction in staff and expenses by $xxx,xxx
22
• Scope of Project B – Eliminate XYZ System
– To
• Eliminate Application System XYZ
– In a way that
• Reduces system redundancies
• Supports processing of data in new technology compliant system
• Aligns with objectives of Projects C and D
– So that
• Maintenance system costs are reduced
– As measured by
• Elimination of system costs

23
• Scope of Project D – Service and Support
– To:
• Maintain viable production systems
– In a way that:
• Supports production online and batch systems
• Resolves outstanding service and maintenance issues
– So that:
• The application system provides on time availability of on-
lines and reporting
– As measured by
• Reduction in number of production support items
• Increased Data Quality
24
Program Organization
Program Board
Initiating Sponsor
Sustaining Sponsor
IT Vice President
Business Adminstration
Production Vice President
Remote Office Liason
Subject Matter Experts (SME’s)

Program Directors
Production Sales
Stakeholders Business Production Sales
IT IT
Sales Consulting
Product
Financial
Internal Audit Program Manager(s)
Business
IT
Weekly Program Control

Initiative-based Project Resources
Initiating Sponsor Initiative-based Project
Project Directors Resources
Business
Project Manager IT
Remote Office Liason TBD
25
Project Dependencies and Timeline
26
Risk Management
RISK RESPONSE PLAN AND REGISTER
Project Name/Number: Prepared by: Date:
Project A/ABCDEFG PM 1/PM 2 12/15/2006
Customer/End User Group: Contact Name: Project Type (S/M/L):
Sales Project Directors LARGE
Business Unit: Project Manager: Project Sponsor:
Sales Project Managers Project Sponsor
Overall
Number Risk Event Probability Impact Risk Response Risk Owner
Risk
1 PM/Planning risk – missing tasks, High Medium Medium Risk Buffer PM’s
assumptions, estimates
Knowledgeable resources – Medium Medium Medium Detailed task estimates have PM’s
2 resource constraints could cause increased Executing Phase dates,
a delay in anticipated project we can look for additional skilled
delivery date resources or implement in phases.
At a minimum, we could use small
amount of the SME’s time as a
consultant.
Analysts performing program/ Medium Medium Medium Recruit SME’s to walkthru “vision” PM’s / SME’s
3 project tasks may not be the same with assigned analysts and
analysts that estimated the effort participate in walkthru’s. Draw from
for these tasks. This could result risk buffer, if necessary.
is discrepancies between
estimates and the actual effort.
4 Management and Sponsor Low Low Low Adherence to governance processes PM’s
acceptance of gating processes
27
Overall Risk Assessment Matrix
Risk Management
Impact
High Moderate Low
High 6 1 0
Probability Moderate 1 3 0
2 1 3
Low
RISK ANALYSIS MATRIX
Risk Response Strategies
Analysis Avoidance Mitigation Transfer Acceptance
1. PM may have missed tasks or

Build in appropriate risk buffer
underestimated
2. Knowledgeable resources Build in appropriate risk buffer
3. Estimator & Analyst Different Recruit assistance from

Build in appropriate risk buffer
SME’s
4. Acceptance of gating process Governance process sign off

to be required by Sponsor or
IFS PMO
Constant communication with other
5. Dependency on Other Projects PCR Date
PM’s
28
Project Reporting & Communication
29
Project Reporting & Communication
30
Program Change Control
ATTENDEES (name of individual in parenthesis if not in attendance):
Project Directors Sustaining Sponsor Resource Managers Project Managers Change Manager Production Support
Project Project Impl Mar Mar Mar Feb Feb Feb Feb Jan Jan
Stage 16 09 02 23 16 09 02 26 19
Project A Phase 1 CAT Apr 07 Green Green Green Green Green Green Green Green Yellow
Logical/
Project A Phase 2A Aug 07 Yellow Yellow Yellow Yellow Green Green Yellow Yellow Yellow
Physical Dsn
Project A Phase 2B Logical Dsn Oct 07 Red Yellow Purple Purple Purple Purple Purple Purple Purple
Project A Pay Phase 2C Not Started TBD Purple Green
Purple Green
Purple Purple Purple Purple Purple Purple Purple
Project A Phase 3 Not Started TBD Purple Purple Purple Purple Purple Purple Purple Purple Purple
Phys May 07
Project B Phase 1 Dsn/CUT/CAT Red Yellow Yellow Yellow Yellow Yellow Yellow Yellow Yellow
Project B Phase 2 Not Started Aug 07 Purple Purple Purple Purple Purple Purple Purple Purple Purple
Project D – Feb07 Completed Feb 07 Green Green Green Green Green Green
Project D – Apr 07 CAT Apr 07 Green Green Green Green Green Green Green Green Green
Scanning Warranty Jan 07 Green Green Green Green Green Green Green Green Green
Project F CAT Apr 07 Yellow Yellow Yellow Yellow Yellow Yellow Yellow Yellow Yellow
Project C CAT Aug 07 Green Green Green Green Green Green Green Green Green
Accounting On Hold On Hold Blue Blue Blue Blue Blue Blue Blue Blue Blue
Manual Process Execution Jun 07 Green Green Purple Purple Purple Purple Purple Purple Purple
Change Management Execution Ongoing Green Green Green Green Green Green Purple Purple Purple
Project L Completed Feb 07 Green Green Purple Purple Purple
31
*Legend on Next Slide
Program Change Control
Project/Proj Mgr Status Stage/Cost to Date Project Control Updates
Project A – Phase 1 Green CAT Status
PM 1/PM 2
Issues and Follow-ups: None
Project A – Phase Yellow Logical Design/ Physical Status

2A Design Issues:
PM 1/PM 2
 Issue 1
Follow ups:
 PM 2 - Develop Project Change Request
Project A – Phase Red Logical Design Status
2B
Issues:
PM 1/PM 2
 Issue 3
Follow-ups: None
Project B – Phase 1 Red Test Plans, Physical Status
Design, Code and
PM 3 Issues:
Unit Test
 Issue 4
 Issue 1
Follow-ups: None
Project D – Apr - April - in CAT Resources have been assigned for the May and August PRs.
April 2007 Green
May - Physical No Issues and Follow ups:
May 2007 May -
Design
Yellow
PM 4/PM 5
 Note – A project is considered on schedule if all major milestones are within 5 days of their baseline end date.
Status Indicators
Green No project control problems
Yellow Minor unresolved project control problems, in some cases a PCR may be required
Red
Blue
Multiple unresolved project control problems; in most cases a PCR is required
Project on hold, not started, or currently inactive
32
Purple Project in initial planning stages with work plan not yet available or project is in a re -plan status
Program/Project Change Control
33
Lessons Learned
Lessons Learned
•Project Experience
•Recommended Process Improvements
•Other Recommendations
•Areas of Focus
•Technical Experience
•Schedule Performance
•Cost Performance

•Risk Management
•Team Management
•Tool Performance
•Release Performance 36
Closing
• Differences between Portfolio vs Program
vs Project Management
• Overview of The Standard for Program
Management
• Defined how a Program is structured
• Suggested ways to apply Program
Management
37
Q&A
Please complete your evaluations!

Your speakers are:
Garry Flemings, Lorraine Henry, and Renée Wickes.
38
Reference Slides
39
Additional Sources for Information
A Comprehensive Technology Portfolio Management Process (Borland)
http://www.borland.com/resources/en/pdf/white_papers/technology_portfolio_
management.pdf
A Concise Guide to Program Management: Fundamental Concepts and
Issues
by Mitchell Springer
Program Management for Corporate Information Technology Leaders
by John W., Ph.D. Rittinghouse and Bill Hancock
Programme
Management Demystified: Managing multiple projects successfully by
Geoff Reiss
The Program Management Office: Establishing, Managing And Growing
the Value of a PMO by Craig J. Letavec
Enterprise Programme Management: Delivering Value by David Williams
and Tim Parr
Program Management for Improved Business Results by Dragan Z.
Milosevic, Russ Martinelli, and James M. Waddell
U.S. Military Program Management: Lessons Learned and Best
Practices by Gregory A. Garrett and Rene G. Rendon
Middle Managers in Program and Portfolio Management by Tomas
40
Blomquist and Ralf Muller
Additional Sources (cont’d)
• Internet
– Project Management Institute: www.pmi.org
– Heartland Chapter: www.pmiheartland.org
• All PMI standards are available at many
sources, including: www.pmibookstore.org
41
Presenter
• Garry Flemings, PMP
– Technical Consultant,
ASC Information Technology
– IT project management since 1992, in both
government and industry
– PMP, 1998
– President, PMI Heartland Chapter, 2005
– email: garry.pmi@cox.net
42
Presenter
• Lorraine Henry, PMP
– Information Services Project Manager,
Mutual of Omaha
– PMP in 1999
– email: lorraine.henry@mutualofomaha.com
43
Presenter
• Renee Wickes, PMP
– Program Manager,
Hewlett-Packard Company
– MBA, 1996
– PMP, 2002
– email: renee.wickes@hp.com
44
This Session
• You’ll know the relationship of The Standard for
Program Management to the better known A
Guide to the Project Management Body of
Knowledge (PMBOK® Guide).
• You’ll know the structure of The Standard for
Program Management.
• You’ll have considered some ways to apply The
Standard for Program Management to Heartland
companies.
45
Sources of Information
The Standard for Program
Management © 2006 Project
Management Institute, Inc.
– Chapter 2 – Program Life Cycle and
Organization page 17 – 28
– Appendix E – Benefits Assurance and
Sustainment pages 87 – 89
46

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The Standard for

Presented May 16, 2007

• Definition, project management: “the

• PMP, Project Management Professional: “the

• Program management: “the centralized

You cannot not do portfolio management. You’re doing it!

Governance Benefits Stakeholder

Identify & Quantify Identify Internal &

Governance Benefits Stakeholder

Governance Planning Benefits Planning Stakeholder Planning

Establish PMO Establish Benefits Assess Stakeholder

Monitor & Control

Governance Monitor Benefits Stakeholder Monitor

Governance Benefits Stakeholder

Subject Matter Experts (SME’s)

Weekly Program Control

High Moderate Low

RISK ANALYSIS MATRIX

Risk Response Strategies

Analysis Avoidance Mitigation Transfer Acceptance

1. PM may have missed tasks or

2. Knowledgeable resources Build in appropriate risk buffer

3. Estimator & Analyst Different Recruit assistance from

4. Acceptance of gating process Governance process sign off

Project A – Phase Yellow Logical Design/ Physical Status

Please complete your evaluations!

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