Office Read 1 – Introduction and Program
Management Performance Domain
Objective of the office Read – This artifact is a short summary of
respective content that will be covered in class. The summary is a great tool
to review content however by no means replaces the SPM V4. Standard for Program
Management remains the authoritative source of preparation for the PMP Exam
1.
I N T R O D U C T I O N
The Standard for Program provides
generally accepted definitions of programs and program management and concepts
important to their success—program management performance domains, the program
life cycle, and important program management principles, practices, and
activities.
The Standard for Program Management provides
guidance on principles, practices, and activities of program management that are generally
recognized to support good program management practices and that are applicable
to most programs, most of the time.
·
Generally
recognized means
there is general consensus that the described principles, knowledge, and
practices are
valuable and useful.
·
Good
practice means
there is general agreement that application of the principles, knowledge, and
practices improves
the management of programs and enhances the chances of program success, as
measured by the extent and effectiveness of benefits delivery and realization.
Good practice does not mean it is a MUST.
1.2 WHAT IS A PROGRAM?
A
program is defined as related projects, subsidiary programs, and program
activities managed in a coordinated manner to obtain benefits not available
from managing them individually.
Programs
deliver their intended benefits primarily through component projects and
subsidiary programs that are pursued to produce outputs and outcomes. The
components of a program are related and each contribute to the delivery of
benefits.
·
Components are projects, subsidiary programs, or other
related activities conducted to support a program.
·
Projects are temporary endeavors undertaken to create a
unique product, service, or result, as described fully in - A
Guide to the Project Management Body of Knowledge (PMBOK® Guide)
·
Subsidiary
programs, sometimes referred to as subprograms, are programs sponsored and
conducted to pursue a subset
of goals important to the primary program.
·
Other
program-related activities are work
processes or activities that are being conducted to support a program, but that
are not directly tied to the subsidiary programs or projects sponsored or
conducted by a program.
1.3 What is Program Lifecycle?
The
program life cycle illustrates the nonsequential nature of a program’s delivery
phase. In a program, the iterative pursuit of components is expected to produce
a stream of outputs and outcomes that contribute to organizational benefits.
Program benefits may be realized in generally two ways:
1.
incrementally throughout the duration of the
program
2.
may be realized at or after the end of the
program.
Programs
are generally initiated or recognized in two ways:
·
Programs initiated to pursue new goals,
objectives, or strategies are begun before the start of work on their component
projects and programs. These programs are typically initiated to support new
strategic goals and objectives; they enable an organization to pursue its
vision and mission.
·
Programs may also be formed when an organization
recognizes that its ongoing projects, programs, and other work are related by
their pursuit of common outcomes, capabilities, objectives, or benefits
1.5 THE RELATIONSHIPS AMONG PORTFOLIOS, PROGRAMS, AND PROJECTS
The
relationship among portfolios, programs, and projects is as follows:
·
A portfolio is a collection of projects,
programs, subsidiary portfolios, and operations managed as a group to achieve strategic objectives.
·
Programs consist of related projects, subsidiary
programs, and program activities managed in a coordinated manner to obtain benefits not available from
managing them individually. Programs are common elements of portfolios,
conducted to deliver benefits important to an organization’s strategic
objectives.
·
Projects, whether they are managed independently
or as part of a program, are temporary endeavors that are undertaken to create unique products, services,
or results.
1.6 WHAT IS PROGRAM MANAGEMENT?
Program
management is defined as the application of knowledge, skills, and principles
to a program to achieve the program objectives and to obtain benefits and
control not available by managing program components individually.
For the PgMP Exam it is very important that we understand “THE INTERACTIONS AMONG PORTFOLIO, PROGRAM, AND PROJECT
MANAGEMENT”
Very Important - Business value may be
defined as the sum of all tangible and intangible elements of a business where,
for example, tangible elements include monetary assets, facilities, fixtures,
equity, tools, market share, and utility. Intangible elements may include
goodwill, brand recognition, public benefit, trademarks, compliance,
reputation, strategic alignment, and capabilities. Business value may also be
created through the effective management of ongoing well-established operations.
Non-
Profit organizations, benefits may be delivered in the form of social or
societal value (for example, improved health, safety, or security).
In
commercial organizations, it is common for organizational benefits to be
delivered in the form of business value. However, the effective use of
portfolio, program, and project management enables organizations to employ
reliable, established processes to generate new business value by enabling an
organization to effectively pursue new business strategies consistent with its
mission and vision for the future.
1.8 ROLE OF THE PROGRAM MANAGER
A
program manager is the person authorized by the performing organization to lead
the team or teams responsible for achieving program objectives. The program
manager maintains responsibility for the leadership, conduct, and performance
of a program, and for building a program team that is capable of achieving
program objectives and delivering anticipated benefits.
·
Work within the five Program Management
Performance Domains.
·
Interact with project and other program managers
to provide support and guidance on individual initiatives conducted to support a program.
·
Interact with portfolio managers to ensure that
programs are provided with the appropriate resources and priority.
·
Collaborate with governance bodies, sponsors
and, (where applicable) the program management office to ensure the program’s continued alignment with
organizational strategy and ongoing organizational support.
·
Interact with operational managers and
stakeholders to ensure that programs receive appropriate operational support and that benefits delivered by the
program can be effectively sustained.
·
Ensure that the importance of each of a
program’s components is recognized and well understood.
·
Ensure that the overall program structure and
the applied program management processes enable the program and its component teams to successfully complete
the work and deliver anticipated benefits.
·
Integrate the program components’ deliverables,
outcomes, and benefits into the program’s end product, services, or results, such that the program
delivers its intended benefits.
·
Provide effective and appropriate leadership to
the program teams.
1.9 PROGRAM MANAGER COMPETENCES
The
following skills and competences are commonly required by program managers:
·
Communication
skills. Communication
skills that enable effective exchange of information with a wide variety of program stakeholders, including
program team members, sponsors, customers, vendors, and senior management,
whether individually or in groups or in committees.
·
Stakeholder
engagement skills. Stakeholder
engagement skills to support the need to manage the complex issues that often arise as a consequence of
stakeholder interactions. The program manager should recognize the dynamic
aspects of managing individual and group expectations.
·
Change
management skills. Skills
that enable effective engagement with individual stakeholders and governance and review committees, to gain the
necessary agreements, alignment, and approvals when program strategies or plans
need to be adapted. The program manager should provide an integrated view of
the perspectives of stakeholders and committees whenever a program interacts
with multiple committees as part of an organization’s program review and
approval process.
·
Leadership
skills. Leadership skills to guide program teams through
the program life cycle. Program managers work with
component managers and often with functional managers to gain support, resolve
conflicts, and direct individual program team members by providing specific
work instructions.
·
Analytical
skills. Skills
that enable a program manager to assess whether the outputs and outcomes of
program components
will contribute as expected to the delivery of program benefits, or to assess
the potential impact of external events on the program’s strategy or plans.
·
Integration
skills. A program
manager should possess the ability to describe and present a program’s
strategic vision and
plan holistically. It is the program manager’s responsibility to ensure the
continuous alignment of the program component plans with the program’s goals
and pursuit of organizational benefits.
1.10 ROLE OF THE PROGRAM MANAGEMENT OFFICE
Very Imp and re-usable concept through
out the SPM Guide: A program management office is a management
structure that standardizes the program-related governance processes and
facilitates the sharing of resources, methodologies, tools, and techniques. A
program management office often also supports training and other organizational
change management activities. It may support the program manager with the
management of multiple projects and program activities, for example, by:
·
Defining standard program management processes
and procedures that will be followed;
·
Providing training to ensure that standards and
practices are well understood;
·
Supporting program communications;
·
Supporting program level change management
activities;
·
Conducting program performance analyses;
·
Supporting management of the program schedule
and budget;
·
Defining general quality standards for the
program and its components;
·
Supporting effective resource management;
·
Providing support for reporting to leadership
and program steering committees;
·
Supporting document and knowledge transfer; and
·
Providing centralized support for managing
changes and tracking risks, issues, and decisions.
2.0 PROGRAM MANAGEMENT PERFORMANCE DOMAINS
Program
Management Performance Domains are complementary groupings of related areas of
activity or function that uniquely characterize and differentiate the
activities found in one performance domain from the others within the full
scope of program management work.
This
section includes:
2.1
Program Management Performance Domain Definitions
2.2
Program Management Performance Domain Interactions
2.3
Organizational Strategy, Portfolio Management, and Program Management
Linkage
2.4
Portfolio and Program Distinctions
2.5
Program and Project Distinctions
2.1
PROGRAM
MANAGEMENT PERFORMANCE DOMAIN DEFINITIONS
There are 5 domains in Program Management and in the exam, we
are assessed on these domains as against PMP exam where we are evaluated in
Initiating, Planning, Execution, Monitoring and Controlling and finally
Closing.
Program
Strategy Alignment— Performance domain that identifies program
outputs and outcomes to provide benefits aligned with the organization’s goals
and objectives. Vison mission and goals are established here.
Program Benefits Management— Performance
domain that defines, creates, maximizes, and delivers the benefits provided by
the program. Benefits can be incremental during the program lifecycle or at the
end of the program.
Program Stakeholder Engagement— Performance
domain that identifies and analyzes stakeholder needs and manages expectations
and communications to foster stakeholder support.
Program Governance— Performance
domain that enables and performs program decision making, establishes practices
to support the program, and maintains program oversight.
Program Life Cycle Management— Performance
domain that manages program activities required to facilitate effective program
definition, program delivery, and program closure.
2.2 PROGRAM MANAGEMENT PERFORMANCE DOMAIN INTERACTIONS
All
five Program Management Performance Domains interact with each other throughout
the course of the program. How much interaction there will be and when it
should occur will depend upon the program and its components. All five domains
interact with each other with varying degrees of intensity. These domains are
the areas in which program managers will spend their time while implementing
the program.
2.4 PORTFOLIO AND PROGRAM DISTINCTIONS
While
portfolios and programs are both collections of projects, activities, and
non-project work, there are aspects that clearly differentiate them and help
clarify the differences between the two. A program is a group of related
projects, other programs, and program activities managed in a coordinated way
to obtain benefits not available from managing them individually. To clarify
the difference between these important organizational constructs, two aspects
stand out: relatedness and time.
Programs
differ from portfolios in two important ways. Programs include work (projects,
subsidiary programs, and program activities) that are related in some way and collectively
contribute to the achievement of the program’s outcomes and intended benefits.
Programs also include the concept of time and incorporate schedules through which
specific milestone achievements are measured.
Portfolios do not require the work
within the portfolio to be related and are managed in an ongoing fashion as
initiatives (programs and projects) are introduced to the portfolio and are
subsequently completed. Portfolios provide a means for organizations to
effectively manage a collection of investments and work that is important to
the achievement of the organization’s strategic objectives.
UNCERTAINTY
Uncertainty
is an inevitable challenge of managing programs. Uncertainty is especially high
in the beginning of a program as the outcomes are not clear. Programs and
projects both exist in organizational environments in which the output,
benefits, or outcome of the work may be somewhat unpredictable or uncertain.
Changes external to the organizational environment also create uncertainty,
which increases the uncertainty of managing programs.
1.
Within the context of the
organization, however, individual projects may be considered to be more certain
than programs.
2.
The expected outputs of projects are generally
more certain than those of programs at the time of their inception. This can be
attributed to the project’s fixed constraints. As a project proceeds, its
ability to deliver those outputs on time, on budget, and according to
specification becomes more certain as a result of the progressive elaboration
that removes uncertainty during the course of the project.
3.
By contrast, a program may not have its entire
scope, budget, or timeline determined upon preparation. This in turn can be
addressed by the program’s ability to deal with uncertainty because programs
can change the direction of projects, cancel projects, or start new projects to
adapt to changing circumstances. This ability creates uncertainty about the
program’s direction and outcome. During the program, scope and content are
continually elaborated, clarified, and adjusted to ensure the program’s
outcomes remain in alignment with the intended benefits. This results in an
initial program environment that is recognized to be uncertain, and implies the
need for a management style that embraces uncertainty in order to address it
more effectively.
MANAGING
CHANGE
Program
managers need to consider two different categories of change. These will be
referred to as internal change and external change. Internal change refers to
changes within the program. External change refers to the need to adapt the
organization in order for it to be able to exploit the benefits created by the
program. In programs, change management is a key activity, enabling
stakeholders to carefully analyze the need for proposed change, the impact of
change, and the approach or process for implementing and communicating change.
The change management plan, which is part of the program management plan and
developed during program preparation, establishes the change management
authorities.
Programs
use change management in a forward-looking, proactive manner to adapt to the
evolving environment. This is an iterative process repeated frequently during
the performance of a program to ensure the program delivers the benefits
planned at the start of the program.
To
summarize, projects employ change and change management to constrain or control
the impact of variability on their baselines, while programs proactively use
change management to keep the program components and intended benefits aligned
with changes in organizational strategy and changes in the environment in which
they are performed.
COMPLEXITY
Both
programs and projects are associated with complexity. The sources of complexity
within programs and projects can be grouped into human behavior, system
behavior, and ambiguity. The factors that result in program and project
complexity originate from these three groupings.
Program complexity- The
complexity of a program may be the result from a combination of factors.
·
Governance
complexity: Governance
complexity results from the sponsor support for the program as well as the support of the related components’ sponsors,
management structures, number of organizations involved and the decision-making
processes within the program.
·
Stakeholder
complexity: Stakeholder
complexity arises from the differences in the needs and influence of stakeholders, which may be a burden to the
program or in conflict with the benefits of the program. Stakeholder complexity
also focuses on the program team itself and the diversity within the program
team. Stakeholder complexity is also associated with the number of stakeholders
interested in the program.
·
Definition
complexity: Programs
bring about change, and definition complexity focuses on the agreement of the future state by stakeholders. Other aspects
that the program manager should be cognizant of include benefits management and
the potential competing interests of stakeholders.
·
Benefits
delivery complexity: Benefits
delivery complexity focuses on benefits management, as discussed in Section 4.
·
Interdependency
complexity:. Program
managers need to deal with interdependency complexity. A program focuses on the interdependencies among
components and not necessarily on issues within individual projects. Programs
strengthen and enforce interdependencies among components to ensure that the
overall outcome of the program delivers the intended benefits. Interdependencies
among components and other business entities should be clearly defined.
·
Resource
complexity: The
availability of resources at the required level of capability and capacity,
adequate funding,
and suitable supplies and materials add to the complexity of the program, and
these resource concerns need to be addressed within the program.
·
Scope
complexity: Scope
complexity arises from the difficulty to clearly define the deliverables and
benefits of a
program and its components. Managing the delivery of the associated benefits
beyond the lifespan of the program’s components contributes to scope
complexity.
·
Change
complexity: Change
complexity arises from the different levels of impact the change potentially
can cause in an organization. Change complexity is
low when a program changes the basic operational processes model in one or two
departments, but can be can be extremely complex when a program transforms an
organization from a functional to a projectized organization.
·
Risk
complexity: Risk complexity
arises from the high level of uncertainty due to the extended program life cycle and the uncertainty of the components’
outcome and their interdependencies.
Project
complexity: A project
can be complex because of the uniqueness it presents as well as the kind of thinking,
action, and knowledge needed in order to solve a problem or complete a task.
This uniqueness creates uncertainty with regard to time and costing estimates,
as well as the specifications needed to deliver the desired project output and
outcomes. Project complexity can be characterized as organizational or dynamic
complexity.
Organizational
complexity: Organizational
complexity focuses on the depth of the organizational structure as well as the number of organizational units.
It also addresses the number and types of elements and their relationships in
the organization.
Dynamic complexity: Dynamic complexity focuses on the project’s
behavior and how it changes over time.
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