Program Management 6

Published in PM World Today - June 2007 (Vol. IX, Issue VI)

FEATURED PAPER

Managing Programs to Success: Key Program Management Tools (Part 6 of a Series)

By: Russ Martinelli and Jim Waddell Parts 1 - 5 in this series available at: http://www.pmworldtoday.net/featured_papers/2007/june.htm#2

Introduction Once an organization becomes more proficient and consistent in achieving its business objectives through effective use of program management processes, program management tools should be employed to help the program teams work more efficiently (better, faster, cheaper). It should be remembered, however, that tools follow the establishment of good methods and processes, and are support mechanisms for becoming more efficient in performing program management practices - but, they are not a panacea. As one of our colleagues recently stated, “A fool with a tool is still a fool”. In this paper, we describe the difference between strategic and operational program management tools, provide examples of each type of tool that are used by practicing program managers, and describe their use in managing programs to success. A more extensive set of tools can be found in our book titled Program Management for Improved Business Results.

Strategic Program Management Tools As we discussed in the first paper in this series, program management is about business success1. Program managers work closely with, and serve as the business manager’s proxy for the programs that they are responsible for. Strategic program management tools support the strategic aspects of a firm, and are not normally owned or developed by the program manager, but rather by senior managers. Why then do we include these in the program manager’s toolbox? First of all, some program managers are asked by their senior managers to directly participate in the use of these tools given their direct knowledge and experience with a specific product line. Additionally, program managers need to comprehend the information obtained from the tools to communicate with senior managers about their program from a strategic perspective2. This information can also help program managers understand how senior managers utilize the tools to execute the organization’s business strategy. The strategic tools we discuss below include the portfolio map, program road map, and complexity assessment. The Portfolio Map Portfolio maps are information displays that visually show key parameters associated with balancing and managing a portfolio of programs. They provide senior managers with the information needed to decide how to distribute their investment in the programs as they pertain to the parameters represented on the program map axes, as shown in Figure 1. These discretionary business investments are based upon their unique standing in the overall portfolio. Each new opportunity is evaluated as to its potential net present value and its associated probability of success.

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Published in PM World Today - June 2007 (Vol. IX, Issue VI)

Source: Program Management for Improved Business Results

Figure 1: Example portfolio map showing program value versus risk

Program managers can gain insight into where and how their program fits within the overall portfolio of programs by referencing an organization’s portfolio map. Senior management decisions concerning the programs (such as resource allocation decisions) will vary depending upon where a program sits within the portfolio in accordance with its projected return versus risk. The portfolio map helps put these decisions in context of the overall business strategy for program managers. Portfolio maps also provide program managers power to influence senior manager’s decisions if their program sits in a positive position within the portfolio, such as in the “Pearls” quadrant in Figure 1, where programs are providing high financial value at relatively low risk of failure. Program Road Map The program road map is an information display that visually shows the time phasing of the programs within the portfolio. Most company’s development appetites exceed their available human and non-human resources to concurrently develop all products, services or infrastructure solutions. The purpose of the program road map is to balance the anticipated market timing of programs under consideration with the available resources of the firm. The road map appropriately reflects what is possible and practical over time. Figure 2 shows an example of program road map for a software development organization. The program road map is a dynamic tool in that it should be updated regularly to reflect the current market and customer environmental conditions, along with the current availability of resources within the firm. It provides information for program managers on the high-level timing expectations by senior managers for their program. Program managers must work within the time constraints as specified by senior management in order to plan and utilize the company’s resources most efficiently. The road map also becomes a primary communication device between program managers and the functional department managers to whom the company’s resources normally directly report. In this context, the program road map is a primary planning tool during the early stages of the program life cycle.

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Published in PM World Today - June 2007 (Vol. IX, Issue VI)

Q1’05

Q2’07

Q3’07

Automation Version 1

Security

Q4’07

Q1’08

Automation Version 2

Q4’08

Tools

Capacity Expansion Automation

DW16 Deployment

Data Warehouse

Business Repository

Q3’08

Automation Version 3

Tools

Data Archiving

Q2’08

Capacity Expansion

Financial Reporting Query Tool Pilot

Query Tool Deployment

Update Query Tool Upgrade

Source: Program Management for Improved Business Results

Figure 2: A software development program road map example

Complexity Assessment Tool The program complexity assessment tool helps determine how a new program stands on multiple dimensions of complexity, as illustrated in Figure 3. One of the elegant features of the complexity assessment tool is that it produces a complexity profile which helps to visually depict the overall program complexity. The level of program complexity may have a significant bearing on the level of funding, resource allocation, and approved timing and schedule targets of the development effort. Additionally, it contributes to sharpening the focus of attention on the elements of highest complexity in order to reduce risk and ensure that they are appropriately managed.

Source: Program Management for Improved Business Results

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Published in PM World Today - June 2007 (Vol. IX, Issue VI)

Figure 3: Example program complexity assessment tool The value of the complexity assessment tool is multifold. Senior managers can use the tool to help balance a portfolio of programs with an appropriate mix of low- to high-complexity programs. It also helps senior managers determine the level of skill and experience needed for the program manager and other key technical positions on the team to successfully define and execute the program. Program managers can utilize the tool to identify key risk areas for a program – high complexity usually means higher risk. In the example above, any program element shown as a complexity level of 3 or 4 should be evaluated in terms of risk to the program. The complexity information contained in the tool can also be utilized by program managers to develop and justify the amount of schedule and budget contingency needed for the program in order to increase the probability of success.

Operational Program Management Tools We characterize operational program management tools as those that program managers need on an ongoing basis for managing a single program in collaboration with the project managers on their core team. Program managers typically spearhead the effort of developing and using the operational tools, with the project managers on the program supplying much of the information contained within the tools. Use of the operational tools is a crucial element in managing the cross-project collaboration that is a key characteristic of a typical program2. The operational program management tools we discuss below include the program map, program strike zone, and project status indicator. The Program Map The purpose of the program map is to show the big-picture view of the critical cross-project dependencies over time and throughout the program life cycle. In particular, the map shows the critical deliverables between project teams, and in effect defines the primary interfaces on the program – see Figure 4.

Source: Program Management for Improved Business Results

Figure 4: Example program map

As we stated in article two of this series of papers, the work of the program manager cuts across the project teams, therefore he or she predominantly manages in the horizontal dimension of the program3. In order to create

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an integrated product, service, or infrastructure solution, program managers are responsible for three primary things: 1) ensuring the deliverables from the project teams form an integrated whole product solution; 2) ensuring the highly complex network of project interdependencies is synchronized and coordinated throughout the program life cycle; and 3) ensuring the program business case remains viable. The program map is one of the most valuable tools to help program managers accomplish the first two responsibilities – it forms a picture of the integration of the deliverables, and it helps to synchronize the cross-project work over the life of the program. The Program Strike Zone Program managers have two primary roles – managing the business associated with the program, and leading the program team to success4. The program strike zone is a key tool for managing the business aspects of a program5. It is utilized to identify the critical business success factors of a program, to help the organization track progress toward achievement of the key business results, and to set the boundaries within which a program team can successfully operate without direct management involvement. As shown in Figure 5, elements of the program strike zone include the critical business success factors for the program, target and control (threshold) limits, and a high-level status indicator. The thresholds serve as the dividing lines between program team empowerment and executive management intervention. A green indication signifies progress is as planned, yellow indicates a heads up to management of a potential problem, and red requires senior management intervention to proceed. Bill Shaley, a senior program manager for a leading telecom company described the program culture within his company this way: “Managing a program is like having a rocket strapped to your back with roller skates on your feet; there’s no mechanism for stopping when you’re in trouble.” The program strike zone is such a mechanism that is designed to stop a program, either temporarily or permanently, if the business success criteria for a program are compromised.

Source: Program Management for Improved Business Results

Figure 5: Example program strike zone

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The program strike zone is also a powerful tool for senior managers. They can set the boundary conditions for a specific program tighter for an inexperienced team or a program characterized by a considerable degree of risk. On the other hand, if senior managers have confidence in an experienced program manager and team that possesses a consistent track record of success, they may set the boundary conditions with a wider margin in order to provide the team a greater degree of flexibility to move more rapidly to improve time to market. Project Status Indicators Program managers spend much of their time reporting the status of the program to various stakeholders. This reporting takes the form of both informal and formal communications, from hallway conversations to formal program reviews and decision checkpoint meetings. Regardless of whether the status report is formal or informal in nature, the message should remain consistent. So how do program mangers ensure they are reporting a consistent, comprehensive and accurate message about a program? The key is in consistent, comprehensive and accurate collection of status from the project teams and other program core team members. The program core team should review the detailed status for each of the projects on a regular basis. For most programs, the primary agenda for each weekly program core team meeting is project status which facilitates the flow of information within the program. Program managers need to be very specific on what elements of the projects they want reported, what metrics to use, and what level of detail to include in order to gain consistency in reporting across the project teams. This information will normally be based on information specified by senior management. An effective tool for establishing cross-project reporting consistency and concise communication of project status is the project indicator (Figure 6). A project indicator is a brief, one to two page presentation slide set that shows pertinent project status. The information contained within a project indicator will depend upon the particular elements of each program and the set of projects within that program.

Source: Program Management for Improved Business Results

Figure 6: Example project indicator PM World Today is a free monthly eJournal. Free subscriptions available at: http://www.pmworldtoday.net

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Project indicators are a key operational control tool for program managers. Periodic monitoring of the data within the indicator provides the capability for program managers and their core team to adjust elements of the program as necessary to ensure that the program remains on track toward achievement of the business and operational objectives.

By working with the project teams in developing a consistent format for the indicators, and a consistent set of metrics to report, program managers receive a comprehensive and concise report of project status that they can use to monitor and control progress on the program, and to develop a formal or informal program report to be utilized for communications with senior management and other program stakeholders. Conclusion Fundamentally, everything accomplished on a program has a business purpose. Hence, the crux of employing both strategic and operational program management tools is to improve the business results for which a program was initiated. These tools assist the program manager in implementing fundamentally sound practices and processes needed to manage a program to success. In the next and final paper in this series entitled, “Managing Programs to Success: Key Program Management Metrics”, we will discuss the key foundational metrics and measures needed to consistently and effectively manage programs toward their intended business results. References 1. Martinelli, Russ and Jim Waddell, “Program Management for Improved Business Results”. Project Management World Today, January 2007, Volume IV, Issue I. 2. Milosevic, Dragan Z., R.J. Martinelli, J.M. Waddell, Program Management for Improved Business Results, Hoboken, NJ: John Wiley & Sons, 2007. 3. Martinelli, Russ and Jim Waddell, “Conquering Complexity with Program Management”. Project Management World Today, February 2007, Volume IV, Issue II.

4. Martinelli and Waddell, “The Program Management Competency Model”, Project Management World Today, July-August 2004. 5. Martinelli and Waddell, “The Program Strike Zone: Beyond the Bounding Box”, Project Management World Today, March-April 2004. ©

Copyright 2007 by the Program Management Academy (www.programmanagement-academy.com)

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Published in PM World Today - June 2007 (Vol. IX, Issue VI)

Russ Martinelli Author

Russ Martinelli is the Manager of Program Management Methods within the Corporate Platform Office at Intel Corporation, where he focuses on the definition and implementation of program management practices across Intel. Additionally, Russ is the chairman of Intel’s global Program Management Community of Practice, an adjunct professor at the University of Phoenix, and co-founder of the Program Management Academy. Russ has held a variety of positions at Intel and Lockheed Martin in the areas of systems engineering, general management, operations management, and project and program management. Contact Russ at: mailto:[email protected]

Jim Waddell Author

Jim Waddell is an independent consultant specializing in program management and mergers and acquisitions. He is the former Director of Program Management for Tektronix Inc. where he established and led the Tektronix’s first worldwide Program Management Office (PMO). Additionally, Jim is an adjunct professor at the Oregon Graduate Institute, a founding member of the Program Management Forum in Portland, and the cofounder of the Program Management Academy. Jim has held a wide range of managerial and operational roles ranging across engineering, marketing, systems and manufacturing in the high tech and energy industries. Contact Jim at: [email protected]

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