PMI India National Conference Technical Paper
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1 PMI India National Conference 2015 Technical Paper Program Management, a strategic management practice for delivering the organizational business benefits By Srinivas Reddy Edulakanti PgMP, PMP, MTech, MBA Senior Manager-Program and Project Management CSC India Pvt Ltd, Hyderabad Srinivas Reddy Edulakanti PgMP, PMP, MTech, MBA 1
2 Table of Contents: 1. Abstract Introduction: Program Management practice Context to the paper Business value of program management practice Program Management framework for business delivery excellence Conclusions: References: Author s Profile: Srinivas Reddy Edulakanti PgMP, PMP, MTech, MBA 2
3 1. Abstract Program Management practice is independent of project management that has been developed only in the past fifteen years whereas project management has evolved over last 60 years. The business community has developed the program management from a business view, focusing on the strategic linking of programs with organizational goals for delivery of outcomes. The project community attempted to regroup and coordinate projects to obtain benefits not available from managing them individually.whetherprofit organization, non-profit Organization or government organization, each one address the need for change by creating the strategic business initiatives to modify the organization or its products and services. Organizations use portfolios, programs, and projects to deliver these initiatives and they are aligned with or driven by organizational strategies. According to recent surveys, strategic thinking has been at the top of the executive leadership agenda, but implementing a strategy to realize organizational business value is not as obvious as it seems. The most important Portfolio and Program Managementtrends for 2014 shared by Gartner shows, 54% of business value is only realizedand remaining 46% of business value can be achieved through maximizing ROI from strategic and growth initiatives. These strategic initiatives can be successfully driven to desired business outcomes through the application of program management practice. This paper advocates the business value of program management practice for mastering the strategic business delivery excellence, and providesthe executives with the high level program management framework to execute the strategic initiatives. Srinivas Reddy Edulakanti PgMP, PMP, MTech, MBA 3
4 2. Introduction: Program Management practice Program Management has emerged as a distinct discipline in the late 20th Century. It s progressively developed for management of strategic objectives or the management of multiple interrelated endeavors to produce strategic benefits sincethe scope of project management application is extensively limited to complex projects. It is now largely recognized that programs are a significant undertaking consisting of multiple actions spanning multiple business areas and they are generally complex. Program management deals in both high ambiguity and uncertainty and requires a high degree of organizational maturity. The Project Management Institute (PMI) defines program as A group of related projects, subprograms, and program activities that are managed in a coordinated way to obtain benefits not available from managing them individually. Program management involves aligning multiple components to achieve the program goals and allows for optimized or integrated cost, schedule, and effort. Organizations initiate programs to deliver benefits and accomplish agreed-upon objectives that often affect the entire organization. The organization implementing the program considers and balances the degree of change, stakeholder expectations, requirements, resources, and timing conflicts across the component projects. Programs introduce change throughout their duration. This change may be reflected in the introduction of a new product, service, or organizational capability. Changes may be introduced to a variety of business processes through the actions, guidance, and leadership of the program manager working within the five Program Management Performance domains. Together, these performance domains comprise the program management framework and are critical to the success of program. The Program Management Performance domains are shown in Fig-1 below: Fig-1: Program Management performance domains Srinivas Reddy Edulakanti PgMP, PMP, MTech, MBA 4
5 3. Context to the paper This paper focused on the business value of program management practice for mastering the strategic business delivery excellence. Its privilege to share a high level of program management practice and its frame work with the business executives for its application and further development to drive the strategic initiatives for its highest business excellency and outcomes. The program management practice can also play a significant role in driving nation building initiatives like, ISRO s launching of MOM s satellite, DRDL s BrahMos missile engineering program, driving a nation building Make in India program etc. The benefit of using a framework for introducing or maturing program management within organization is that it provides a structure approach for setting direction, initiating actions, driving decisions and changing cultural and business components of the organizations to achieve the desired business outcomes. 4. Business value of program management practice Programs and projects deliver benefits to organizations by generating business value, enhancing current capabilities, facilitating business change, maintaining an asset base, offering new products and services to the market or developing new capabilities for the organization. Programs provide organizations with the ability to deliver benefits to stakeholders, including beneficiaries, or customers, while at the same time delivering benefits to the sponsoring organization. To name a few application areas, when a systems approach becomes necessary for managing a complex development effort, program management becomes a very effective management model to employ.the Program management methodology encompass the knowledge, skills, tools, techniques, processes and its application can meet the strategic objectives to realize the benefits in a structured cyclic process as shown in Fig-2 below: Srinivas Reddy Edulakanti PgMP, PMP, MTech, MBA 5
6 Fig-2: Program Management cyclic process The program management practice is recognized by many industry sources as an important strategic capabilityand using program management to achieve business results is becoming increasingly recognized in more industries. To continue to add value to the organizations, the program management role needs to continue to evolve more towards an organizational strategic business, linking program delivery to business value. Additionally, PMI indicates in the Standard for Program Management that programs are a means to achieving organizational goals and objectives often in the context of a strategic plan. This explicit link between program management and business value explains why the value of program management has become so important. Specifically, standard program management accomplishes three critical business needs: (1) strategic alignment between organizational goals and the individual projects (2) return on investment to stakeholders through realization of benefits and (3) organizational business risk management: 1. In many organizations today, a misalignment exists between their strategic objectives and the corresponding ability to effectively identify and execute programs to achieve the objectives. But, the program management philosophy begins with the establishment of the organization s business goals and strategies and the program management binds strategic objectives to actionable program and project plans that when properly executed, will achieve the desired business outcomes. 2. While the role of the project management discipline is to ensure the operational success of each project within a program with respect to time, cost, and quality, but the important role of program management is to ensure the overall return on investment is achieved. In doing so, program management ensures that the financial estimates and return on investment targets contained within the program business case, justifying the program is properly characterized through a comprehensive financial analysis. Srinivas Reddy Edulakanti PgMP, PMP, MTech, MBA 6
7 3. At the program level, managing risk becomes a continual act of balancing risk versus reward for achieving the business goals intended. This is not simply a risk mitigation practice, but rather an approach to organization s risk management. Business risk encompasses all unknown and uncertain events that may prevent an organization from executing its strategies, meeting its performance goals, and achieving its business objectives. Failure to understand the business risks, and when necessary, properly mitigating the risks can negatively impact the well-being of not only the program and associated projects but importantly the organization itself. There is one other important aspect of gaining maximum business value from program management practice. It is essential that programs are led by strong leaders who have invested time in developing their business acumen and expertise. Srinivas Reddy Edulakanti PgMP, PMP, MTech, MBA 7
8 5. Program Management framework for business delivery excellence Program management framework allows organizations to run multiple, related projects concurrently to obtain significant benefits managing them as a group under program governance. The framework helps in implementing the business strategies and initiatives through the integrated management of a portfolio of related projects, realizing benefits that are of strategic importance. The high level program management framework is shown in Fig-3 below: Fig-3: A high level Program Management framework Program contract can start from the core understanding of organizational strategic business objectives with proper due diligence. A high level Program Management framework phases involves the below D4 phases (define, design, deliver, deploy) through business contract to managing operations: Define: The program strategy / approach are decided, and the program charter is approved. Design: The program management plan gets base lined and approved by Governance Board Deploy: The desired benefits are realized in agreement with the governance board and customer Deliver: The program closure with formal transition to manage support services and sustain benefits. The closure of program contract is marked with customer signoff through formal transition of program benefits to manage support services for benefits sustainment. The program management life cycle s three major phases, benefits lifecycle maps to the program supporting processes. Within the program supporting processes, there are activities that occur throughoutthe program life cycle. Each activity is mapped where most of the work takes place. Informal preplanning exercises may take place in earlier phases for each consideration. A high-level view of process mapping in below Fig-4 for the program Management Life Cycle Phases to Supporting Activities illustrates Srinivas Reddy Edulakanti PgMP, PMP, MTech, MBA 8
9 the orientation toward the performanceof programs in organizations and includes interactionsamong each of the performance domains and its processes Fig-4: Mapping of Program Management Life Cycle Phases to Supporting Activities 6. Conclusions: Program Management practiceapplies the thought leadership, link between the business strategy and the value it generates from organizational strategic endeavors. It is the process through which executives are able to express their needs and make sure they are fulfilled; sponsors are able to define the improvements they are expect and clearly link them to the strategy to make sure they are realized and aligned with the business objectives; program managers can understand how to support both executives and sponsors in a tangible way and how to deliver measurable outcomes to the business; project managers are able to understand how their role is essential to the program's success and finally, operational and technical teamscan make sure the expected improvements are well integrated and produce the expected results. Srinivas Reddy Edulakanti PgMP, PMP, MTech, MBA 9
10 Any organization conducts business-related activities with focus on attaining business value for their activities and are able to employ reliable, established processes to meet strategic objectives can obtain greater business value from their investments through the effective use of program management practice. At all levels, the program drivers must commit to generate benefits over and above those that projects generate on their own to move away from using a project management mindset and methodology and to articulate why program managementpractice to be implemented in their organization and understand how it can achieve thestrategic business delivery excellence. 7. References: 1. Program Management by Michel Thiry 2. PMI Standard for Program Management 3. The Business Value of Program Management by Program Management Academy 8. Author s Profile: Srinivas Reddy, currently working with CSC India Pvt Ltd is experienced Project & Program Management practitioner & consultant with global credentials of PMI PMP, PgMP, ASQ s CSSGB, Microsoft s MS Project, APMG s ITILv3-F and a Post Graduate in Engineering and Management. He has over a decade of experience in international project and program delivery in IT Infrastructure Management and Aerospace Engineering services. Srinivas Reddy Edulakanti PgMP, PMP, MTech, MBA 10
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