MANAGING SUCCESSFUL PROGRAMMES (MSP)®

PROGRAMME BOARD SURVIVAL GUIDE

2

Introduction

Having been appointed as a sponsor, the questions you’re probably asking may include:

• do I believe the business cases are realistic – in both promised benefits and cost of change?

• do we have the skills and capacity to implement the changes?

• how do we implement the changes without jeopardising front line services?

• how can we make sure that promised savings are actually achieved?

The purpose of this guide is to help you to answer some of these questions – to enable you to undertake the role of an SRO, Sponsoring Group member or Programme Board member - specifically to understand the lifecycle of a typical programme, the roles involved, decisions you need to make, documentation you need to approve, reviews you should undertake and questions you should be asking.

This guide is based on Managing Successful Programmes (MSP)®, which was designed to provide a practical approach to managing programmes by focusing on those aspects of programme management that help avoid common causes of failure and those that provide confidence that the programme will deliver its expected benefits within a reasonable timescale, cost and within tolerable levels of risk.

This guide is primarily aimed at those people who have been appointed as the Senior Responsible Owner (SRO) (or Sponsor) for a programme. It is also of use to other senior managers who are appointed as members of the Sponsoring Group or Programme Board.

Managing Successful Programmes (MSP)® Programme Board Survival Guide

Common causes of programme failure Common causes of programme confidence

Research conducted by Office of Government Commerce (OCG) and the National Audit Office show the following as consistent contributors to programme failure:

• there is a poorly defined or poorly communicated vision;

• there is insufficient board level support;

• leadership is weak;

• there are unrealistic expectations of the organisational capacity and capability;

• there is insufficient focus on benefits;

• the organisation fails to change its culture;

• there is insufficient engagement of stakeholders;

• there is no real picture (blueprint) of the future capability; and

• an incorrect toolset is used (eg project management to manage a programme or vice versa.)

Data gathered from Office of Government Commerce (OGC) Gateway Reviews revealed a correlation between the following elements and a high Delivery Confidence:

• strong programme leadership;

• clearly defined scope, aims, benefits;

• strategic alignment;

• skills and expertise of the programme management team;

• the Sponsoring Group and Programme Board living the values of the required business change;

• going beyond time, cost and quality assurance to focus on Risk and Benefits assurance;

• stakeholder commitment;

• robust governance and controls; and

• clear roles and responsibilities.

Material in this document has been sourced from Managing Successful Programmes. Copyright © RSM UK Consulting LLP and AXELOS Limited 2017. All rights reserved. Material is reproduced under licence from AXELOS. No part of this document may be reproduced in any form without the written permission of both the RSM UK Consulting LLP and AXELOS Limited. Permission can be requested at andy.murray@rsmuk.com and from AXELOS at licensing@AXELOS.com.

The following research provides a handy test of capability you need (causes of confidence) and the pitfalls to avoid (causes of failure):

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Programme BoardFocus on driving the programme forward

Project BoardsFocus on delivering the capabilities

Responsibilities

The Sponsoring Group is the driving force behind the programme and appoints the Senior Responsible Owner (SRO). It is the group of senior managers responsible for the investment decision, for interpreting the strategic direction of the business, and for ensuring the ongoing alignment of the programme to that strategic direction.

The SRO is the single individual with overall responsibility for ensuring that a programme meets its objectives and delivers the projected benefits. It is likely that the SRO will appoint the Programme manager and Project Executives for the projects within the programme.

The Programme Board’s prime purpose is to drive the programme forward and deliver the outcomes and benefits. Members will provide resource and specific commitment to support the Senior Responsible Owner who is accountable for the successful delivery of the programme. The Programme Board is appointed by and reports to the Senior Responsible Owner.

The Programme Manager is responsible for the set-up and day-to-day management and delivery of the programme on behalf of the SRO.

Sponsoring GroupFocus on investment and strategic alignment

Senior Business Management

Senior Responsible Owner

Business Change Manager

Projects

The following shows a typical programme organisation structure:

Programme Manager

Managing Successful Programmes (MSP)® Programme Board Survival Guide

Hints and tips for streamlining programme and project organisation structures. • MSP advises that the Project Executives for the major projects in the programme might also be included as members of the Programme Board, to ensure strategic alignment and promote integration.

• The SRO for a programme may additionally take on the Project Executive role for key projects within the programme. Some organisations appoint SROs to direct large free standing projects.

• There is a direct relationship between the programme level role of the Business Change Managers and the Project Board roles of Senior Users, so Business Change Managers may also act as Senior Users at project level.

• Depending on the nature of the project and the expertise of the person concerned, a Business Change Manager might also act as a Project Executive.

• Programme Managers may also act as Project Board members. However, this is not always appropriate. The Programme Manager may not have the required line authority to supervise the people acting as Senior Users and Senior Suppliers who normally do have senior line management positions. Also, a Programme Manager may not have the authority to commit key resources, which is a crucial requirement for the Senior User and Senior Supplier roles.

• Where there is common Project Board membership across all the project boards it may be useful to disband Project Board layer of management altogether and simply have those people on the Programme Board. This means that the Programme Board becomes responsible for the Project Board’s responsibilities.

The Business Change Manager (BCM) is responsible for benefits management, from identification through to realisation. The aim is to ensure that the new capabilities delivered by the projects in the programme are properly implemented and embedded in the sponsoring organisation(s), so Business Change Managers often have long-term line management responsibilities for realising benefits. Usually, there will be more than one Business Change Manager for a programme, to manage impacts in different parts of the organisation (or in different organisations). It is sometimes advisable to establish a Change Team to support the Business Change Managers and contribute specialist business change skills.

The Project Board is responsible for the overall direction and management of the project within the constraints set out by corporate or programme management. A Project Board typically comprises a Project Executive, one or more Senior Users and one or more Senior Suppliers.

The Project Manager is the single focus for day-to-day management of a project. This person has the authority to run the project on behalf of the Project Board within the constraints laid down by the Project Board.

The programme and project organisation structures need to be integrated such that:

• there are clear lines of responsibility from top to bottom (ie everyone is accountable to someone);

• duplication is avoided; and

• reports and reviews are efficient (eg four projects within a programme have common Project Board members and by aligning stage boundaries they meet collectively to conduct end stage assessments for all four projects as part of a programme review.)

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Programme Management Lifecycle

Managing Successful Programmes (MSP) provides a programme management framework that is based on:

• a set of seven underlying principles (see below);

• a set of governance themes to help define and control a programme; and

• a transformational flow describing the lifecycle that programmes will typically follow.

Qua

lity

Man

agem

ent

Organisation Vision Leadership and Stakeholder

Engagement

Risk and Issue Managem

ent Business Case Planning and Control B

lueprint Delivery and Desig

n B

enefi

t Re

alis

atio

n M

anag

emen

t

Identifying a Programme

Defining a Programme

Closing a Programme

Managing the Tranches Review and Prepare

Establish

Delivering the Capability

Realising the Benefits

The Transformational Flow can be interpreted as having four sequential phases of:

• Phase One - Programme Identification

• Phase Two - Programme Definition

• Phase Three - Programme Delivery

• Phase Four - Programme Closure

Guidance in terms of duties for the SRO and key questions they should ask is provided for each of these four phases.

Figure 1 - MSP Framework

Managing Successful Programmes (MSP)® Programme Board Survival Guide

Phase One - Programme Identification

PurposeAt the outset of the programme there is likely to be a lot of ambiguity about what is required. Programme Identification provides an opportunity to tackle this ambiguity by evaluating the potential programme at high level prior to committing energy and resources to define it fully. It considers the strategic fit, vision, costs, duration, risks, and provides a high level business case for the programme.

SRO’s duties

Responsibility What it meansAccept appointment as SRO You are now signing up to being accountable for the success of the programme so

you need to understand the scope of what you are being tasked to achieve and the authority you need.

Appoint the Programme Manager You are likely to have a day job as well so you need to delegate to someone you trust to manage the programme on your behalf. Set their terms of reference so they understand their authority.

Ensure the Sponsoring Group understand and agree their accountabilities and responsibilities

The Sponsoring Group represents the most senior level of management in the organisation. It may be worth briefing them individually to ensure they support the programme prior to seeking funding approval.

Ensure the programme has a clear Programme Mandate, Programme Brief and Definition Plan

The Programme Mandate is provided by the Sponsoring Group and should include an outline vision.

The Programme Brief provides a high-level description of what business changes are required, the outline benefits they will provide and an initial Business Case.

The Definition Plan determines the timescale, resources and budget required to define the programme fully.

Get an independent view on readiness to proceed

Ensure that there is a robust and transparent review of the viability of the programme so you can be sure you are accepting an achievable brief. Now is the best time to find out as your destiny will be linked to the success of the programme.

Verify that the programme is worthy to proceed

The result may well be a decision to not to proceed with the programme. It is much better to stop it early before time and effort is expended on defining or delivering a programme that is unlikely to succeed. Don’t rush into the Programme Definition with a poorly scoped programme or a weak vision.

Secure funding and get Sponsoring Group approval to proceed to the Programme Definition

You will need to establish Sponsoring Group commitment to fund the Programme Definition and the overarching intent described in the Programme Brief and provide a Stop/Go decision.

Key questions SROs should ask • Is there a clear vision of the business changes and benefits expected of the programme?

• What is the level of support from the key stakeholders? Is the composition of the Sponsoring Group appropriate for the programme’s importance and risk?

• How high is the priority for this work in comparison to other work going on?

• How will the programme contribute to organisational targets?

• Are there any existing initiative or projects that could be included in the programme?

• Have I got the right Programme Manager?

• Have all the business case options been evaluated?

• Is it worthwhile to move to the Programme Definition and if so are we ready?

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Phase Two - Programme Definition

PurposeThe Programme Definition uses the information in the Programme Brief to develop the scenarios and options that the organisation should consider and then define and plan the chosen option in sufficient detail to prove the programme’s viability and to enable projects to be launched.

SRO’s duties

Responsibility What it meansAppoint the Programme Board Establish a senior team to provide you with active support to help deliver the

business changes required. Consult with the Sponsoring Group to ensure that there are credible business representatives to act as their Business Change Managers.

Appoint the Programme Manager You should lead the initial engagement. From this point onwards you need regular reports on levels of support the programme has and will need to make interventions with key players as needed.

Ensure the programme has Programme Definition Documentation that contains:

• the blueprint for the future state;

• benefit profiles for all promised benefits;

• a programme plan; and

• a detailed business case.

The Blueprint is a model of how the organisation works now and how it will look in the future.

Benefit Profiles quantify the benefits that have been identified and describe who owns the benefits and the measures that will be used to prove them. Beware of unrealistic expectations and optimistic bias. It is critical for your personal success that there is realism in the benefits profiles.

The Programme Plan contains the list of projects in each tranche that is required to deliver you the business changes defined in the Blueprint. Your programme manager should be checking to see if any existing projects will need re-shaping or culling.

The Business Case is used to identify the optimal Future State that maximises the benefits for the level of investment required and risks involved. You should lead this process and fully satisfy yourself that the recommendations are deliverable and meet the needs of the Sponsoring Group.

Get an independent view on readiness to proceed

It is useful to get an independent assessment of the capability of the organisation to deliver the change.

Verify that the programme is worthy to proceed

Satisfy yourself that there has been sufficient analysis and planning to move into programme delivery.

Secure funding and get Sponsoring Group approval to proceed to the Programme Delivery

You are now signing up to leading the programme into the first tranche, and launching some early projects. This would be a good point to re-validate your Terms of Reference from the Sponsoring Group and gain their endorsement of the way forward.

Key questions SROs should ask • Has the extent and nature of the change required to achieve the future state been identified?

• Do the programme benefits strongly align with the strategic objectives of the organisation? Have the programme benefits been described in sufficient detail with clearly identified benefit owners?

• Has a plan been created that displays the grouping and

sequencing of projects and activities, including costs, resources, milestone dates and dependencies? Is the plan realistic?

• Is the programme affordable?

• Are your fellow-members of the Sponsoring Group bought in to the blueprint, benefit profiles and programme plan?

Managing Successful Programmes (MSP)® Programme Board Survival Guide

Phase Three - Programme Delivery

PurposeThe primary focus during Programme Delivery is to launch projects and review progress against the programme plan. Robust management and delivery activities are required to ensure that the projects’ deliverables enable the business changes required and those in turn deliver the benefits sought. Continual stakeholder engagement, risk and issue management, benefits management, blueprint management, business case management is required during delivery.

SRO’s duties

Responsibility What it meansManage the expectations of the Sponsoring Group

You are the interface between the programme board and the Sponsoring Group, who are likely to be your colleagues, so it is important that you brief them regularly on the progress being made and any support needed from them eg resolving issues with any Business Change Managers who are resisting change.

Direct the Programme Manager Delegate to the Programme Manager by providing direction as to what should be achieved within each tranche. Being available to offer support is key.

Resolve escalated issues and risks It is important that you don’t get dragged down into the detail as problems arise. The Programme Manager should resolve day-to-day delivery issues/risks and only escalate those that would result in a significant impact on funding, the integrity of the blueprint or the benefits to be realised. When issues/risks are raised it means the Programme Manager needs you to make a decision on the direction to take. “Work harder” or “wait and see” are rarely appropriate responses.

Intervene where necessary:

• replacing Programme Managers, Project Executives, Business Change Managers etc; and

• re-setting priorities.

A weekly briefing from the Programme Manager and the BCMs is good practice and will help you keep your finger on the pulse of the programme. If you spot any issues or risks that you are uncomfortable with then you should intervene. Sometimes your interaction with the Sponsoring Group will reveal a change in corporate objectives or a change in priorities. The programme may need to be re-shaped to align to such changes.

Get an independent view on programme health

This will mostly involve ensuring project assurance reviews and gates are taking place. Gate reviews should not be conducted as if the gate is open already. Assure yourself that each project is still required, is well managed and delivering value to your programme.

Verify that the programme is worthy to proceed to the next tranche

Satisfy yourself that the current tranche is complete and there has been sufficient analysis and planning to move to the next tranche.

Secure funding and get Sponsoring Group approval to proceed to the next tranche

You are now signing up to leading the programme into the next tranche. This would be a good point to re-validate your Terms of Reference from the Sponsoring Group and gain their endorsement.

Key questions SROs should ask • Is the programme still aligned with the organisation’s strategic objectives?

• Have you checked that the composition of the Sponsoring Group and Programme Board remains appropriate for this tranche?

• Does the organisation have the resource capacity to deliver the projects and to make the step-changes

identified for the current tranche?

• When was your last one-to-one with the programme manager and BCMs?

• Have your polled your colleagues from the Sponsoring Group for their issues?

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Phase Four - Programme Closure

PurposeAs programmes can last for many years, it is important that programmes do not drift on as if part of normal business. The purpose of Programme Closure is to ensure that any business changes can be sustained when the programme team is disbanded, performance of the programme is reviewed, lessons have been learned and that any post programme benefits management activities are planned/owned.

SRO’s duties

Responsibility What it meansIdentifying when to close the programme

Programmes often close early, which is not a sign of failure. Scan for opportunities to prematurely close the programme such as: • costs of remaining projects outweigh the benefits they enable;

• remaining projects are capable of being managed without the support of the programme management team, or could be transferred to other emerging programmes; and

• the programme is no longer aligned to the organisation’s strategic objectives or priorities.

Ensuring that the changes will stick once the programme closes

Check that programme management team is not providing hidden support for the Future State. If so, such support needs to be transferred to the operational organisation. Ensure facilities that enable old ways of working have been removed.

Hold the BCMs to account for the benefits promised in their areas

The BCMs should have signed up to the Benefit Profiles relating to their area of the organisation. It is time to ask them to prove the benefits they have realised from the investment they gained.

Ensuring that sufficient benefits have been (or will be realised) prior to closure and ensuring that remaining benefits will be measured and reported

Satisfy yourself that the programme has delivered the target benefits that were agreed at the end of the Programme Definition. If not, what remedial action is needed to realise them? For benefits that will continue to accrue after closure, do these need any ongoing monitoring from, say, the corporate performance group?

Get an independent view on benefits realised / expected

You may need to report the success of the programme to shareholders, trustees, governors etc. In which case it is always good to provide independent evidence of the benefits realised and the costs incurred.

Releasing resources and un-used funds Do not hoard resources and funds unnecessarily as other emerging programmes or operations could use them.

Chair the Closure Review and verify that the programme is ready to close

It is good practice to hold a Closure Review involving the Programme Board to check that everyone agrees the programme is ready to close.

Get Sponsoring Group approval to close the programme

You have been directing this programme on behalf of the Sponsoring Group, who funded it. Now is the time to seek their permission to formally close the programme and to release you from the role of SRO.

Key questions SROs should ask • Does the cost of programme management continue to add value over and above the value of the individual projects that remain?

• How do the measured benefits compare to the original benefits promised? What are the reasons for any variances? Have arrangements been made for post-

programme benefits realisation and measurement?

• Does the programme management team provide any hidden support for the new capabilities? If so are arrangements in place to transfer them to operations before the programme management team can be disbanded?

Managing Successful Programmes (MSP)® Programme Board Survival Guide

Effective Programme Boards

Key characteristicsA good Programme Board should display four key characteristics:

AuthorityThe members of the Programme Board should be senior enough within the corporate organisation to make strategic decisions about the programme. As the Programme Board is accountable for the programme, the individuals chosen must have sufficient authority to make these decisions and to provide resources to the programme, such as personnel, cash, facilities and equipment. The managerial level required to fill the roles will depend on factors such as the budget, scope and importance of the programme.

Credibility The credibility of the Programme Board members within the corporate organisation will affect their ability to direct the programme.

Ability to Delegate A key part of the Programme Board’s role is to ensure that the Programme Manager and Business Change Managers are given enough ‘space’ to manage the programme by keeping Programme Board activity at the right level. Programme Board members should not be involved in the detail of how the programme is managed, nor in the specialist content of the programme.

Availability Programme Board members who meet all the above characteristics are of little value to the programme if they are not available to make decisions and provide direction to the Programme Manager or Business Change Managers.

Meetings and reportsIt is important to consider how frequently the Programme Board needs to be updated with progress via reporting and how frequently they need to meet for Programme Board reviews.

Generally speaking meetings should be reserved only for those occasions when the Programme Board needs to make decisions - such as the Sponsoring Group authorising the programme to proceed to the Programme Definition or Programme Delivery and the Programme Board authorising the programme to move from one tranche to the next.

However, it is often the case that the Sponsoring Group is a sub-set (or perhaps even the full membership) of the Senior Leadership Team. In such cases it can be more efficient for the Sponsoring Group to review progress reports as part of its standing meeting. Care should be taken as not to go off-piste and start discussing non-programme details during the time set aside for such reviews. Additionally, members of the Sponsoring Group should remind themselves of their responsibilities as a member of the Sponsoring Group which may differ from that of their Senior Leadership Team responsibilities.

Ultimately, you will need to make a compromise between efficiency of reviewing reports individually and the effectiveness of holding face-to-face meetings. Likewise, you will need to make a compromise decision between reports being highly frequent (always up to date, but swamping the team in paperwork) and very infrequent (always out of date, but releasing the team to focus on delivering the business changes and realising the benefits). You should discuss this with your programme manager during the Programme Definition and agree on what is both sensible and practical.

A key challenge is getting the balance of membership between the Sponsoring Group and the Programme Board right.

The membership of these bodies depends largely on the type of programme eg internal or partnership. As well as setting out roles and membership, it is essential to create Terms of References and/or rules of engagement for the various groups.

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For more information please contactAndy MurrayPartner, Head of Projects and ProgrammesT +44 (0)7776 301 602 andy.murray@rsmuk.com