Projects & Programs are two different animals, don't underestimate the gap

May 2015, London

Thomas Walenta, PgMP, PMP, PMI Fellow

thwalenta@online.de

Lions have not been used in warfare much, but served for public punishment

Lions live for 12-18 years Hunt in groups Hunting only takes a short time (3-4 hours a day) Hunting has to feed the group

Hindu God Narasimha: Great Protector

Short memory and lifeSupporting a familySuccessful hunting <50%Feared

Elephants have been used by armies to implement strategiesSurprise and shock - Impress by sheer sizeVery useful in logistics - transportAttack and kill

Elephants can be guided and led by humanshave a good longterm memory can live for 80+ years

Hindu God Ganesha: Lord of success and destroyer of obstacles

Long memory and lifeSupporting an ecosystemSuccessful in most casesRespected

A Study reveals a disturbing reality: even among projects that are delivered at least 90% on time & on budget, majority fails to

deliver on 'business expectations'

Business outcome expectations include

Delivery quality End-user adoption Business case

attainment Sponsor satisfaction

Challenged53%Succeeded

29%

Failed18%

Copyright The Corporate Executive Board (CEB), www.pmo.executiveboard.com, 2009 Study 'Project Managing Business Outcome'

The top-performing projects in terms of budget and schedule compliance attain on average only 53% of their business outcome expectations.

PMI's 'Pulse of the Profession' Reports reveal that benefits management is influencing success

Copyright PMI 2015 2015 Pulse of the Profession

Benefits management is the most relevant factor that distinguishes high vs. low performing organizations

Copyright PMI 2013 2013 Pulse of the Profession

#1 Gap: Success definition gapScope, budget, milestones = business benefits?

Successfull project delivered a product in time & budget

Successfull program achieved benefits and created value

A benefit is the 'desired result of an initiative undertaken to meet a need or solve a problem'

'Pre-project'

#2 Gap: Education gap Are Project Managers educated to transform business goals

to requirements and benefits?

• Project Manager‘s curriculums & certifications– Magic triangle scope/quality – cost – time– Soft skills to lead a team– Organizational skills – Technology

• Project life cycle covers part of total required life cycle– Business case, strategic alignment done before project– Requirements are part of business case development– Benefits often achieved after a project is delivered

costtime

scope

'Post-project'Project

• Benefits are specific to a business / a company• Benefits delivery is often seen as a primary task of middle management,

consulting companies or not addressed specifically

• 'Benefits' is found 24 times in PMBoK Guide 5th edition, but 129 times in PgM Standard 3rd edition, having benefits management and other processes and artefacts

• Prince2 mentions benefits in the business case and benefits review plan, but only MSP covers benefits management

• IPMA ICB does not have a focus on benefits management, instead offers success criteria for projects

• ISO 21500: projects contribute to benefits, which are created by operations (!)

#3 Gap: Methodology gapPM Standards and Methodology provide no real help to Project

Managers in delivering benefits

#4 Gap: Significant capabilities gapCapabilities of a successful program manager are different to

those of a good project manager

PMI Congress 2003 – Europe Paper Pellegrinelli, Partington and Young

Program Project

PlanControl Deliver

Scope / Quality

TimeCost

UnderstandCreate

Achieve

Strategy / Benefits

GovernanceStakeholders

#5 Gap: in/outward orientation gapProgram Management is outward focussed while Project

Management mainly deals with project internals

?Stake-holders

(sponsors)

Stake-holders(users)

Strategy

How to successfully to fulfill business expectations and deliver benefits to stakeholders?

Environment (society, jurisdiction, regulators, market etc)R

equi

rem

ents

Ben

efits

Program

Stake-holders

(sponsors)

Req

uire

men

ts

Stake-holders(users)

Strategy

Project Adeliverable

ScopeCostTime

Ben

efits

(sus

tain

ed)

Ben

efits

(con

solid

ate

d)

Project Bdeliverable

ScopeCostTime

Discrete benefit

BenefitsIdentfication

BenefitsAnalysis & Planning

Benefitstransition

Benefitssustainment

Benefits Delivery

Understand what has to be done in addition to project management - and how it can be accomplished!

Component C Discrete benefit

Environment

Based on PMI Standard for Program Mgmt, 3rd Ed.

Governance

Program Benefits Management transforms stakeholder requirements into sustained benefits

Based on PMI Standard for Program Mgmt, 3rd Ed.

BenefitsIdentfication

BenefitsAnalysis & Planning

Benefitstransition

Benefitssustainment

Benefits Delivery

Business Case Program

MissionDefine CSFs Measurement

Structure

Benefits Realisation

Plan

Define Program

ComponentsDefineKPIs Performance

Baseline

Start, monitor & transition

components

Evaluate KPIs

Monitor organizational environment

Program definition

Program benefits delivery Program closure

Transition Plan Verify

Transition

Operational tasks

Program Lifecycle

!Stake-holder

Engage-ment

Stake-holders(users)

Fill the key roles with the right people.

Environment (society, jurisdiction, regulators, market etc)

Ben

efits

Mgm

t

StrategyAlignment

Governance

Program Lifecycle

SLF4RelationshipManagement

SpecialistTeam

Program Management

SLF3Organizational

ChangeManagement

SLF2Architectual

Solution Board

SLF7Test &

TransitionManagement

SLF5Quality

Assurance / Risk

SLF6Program

MgmtOffice

SLF8Resource

Management

Oper-ations

Applic.Mainten.

User Help DeskProject 4

.........Project 1

Operational Layer Functions (Projects, Teams, Production)

Strategic Layer Functions

Project 3 Project 5

Project 6Project 2 Enduser

TrainingTeam

SponsorsStakeholders, e.g. Users

Business Steering Committee

Program Management System (PMS) ensures the linkage between involved and affected stakeholder groups and the integration among projects and with

ongoing tasks

SLF1BusinessStrategy

Source: PMI Global Congress Toronto 2005Paper Th. Walenta

#1 Success definition gap

#2 Education gap

#3 Methodology gap

#4 Significant capabilities gap

#5 In/outward orientation gap

How to understand that a lion is not an elephant

Strategy Alignment

Governance

Stakeholder Engagement

Benefits Realisation

Lifecycle Management

About 50% of successful projects deliver benefits

High benefits realization maturity impacts project

success