1 Program governance structure setup & Management By Saurabh SardesaiJune 2014
2 ObjectivesEstablish a Program/Project governance structure within the organization and ensure stakeholder participationDefine the program roles, decision making hierarchy, program execution strategies and best practicesDescribe the protocol for proper flow of relevant information to all stakeholdersEstablish a project/program review, issue management & change mgmt mechanismMechanism to identify program compliance and communications to all stakeholdersEvaluate various models of program governance and investigate their suitability for adaptionTranslate business strategy into actual program execution via a proper governance framework
3 Governance definedGovernance, for a program or a project, is a combination of individuals filling executive and management roles, program oversight functions organized into structures, and policies that define management principles and decision making. This combination is focused upon providing direction and oversight, which guide the achievement of the needed business outcome from the execution of the program effort, and providing data and feedback, which measure the ongoing contribution by the program to needed results within the overall business strategy and direction.
4 Need/BackgroundThe organization was facing a huge problem of managing diverse projects across geographies without having a formal program structure in placeSenior management was finding it increasingly difficult to have an oversight on project execution in absence of proper governance structure and formal feedback channelsThere was a clear disconnect between project execution and business mission or strategyThere was no overarching body like a Steering committee to provide oversight to projectsA need was felt to aggregate all multiple projects data in a central place and use the information to better manage the defined outcomes
5 Stakeholders Board of Directors and C level executives Project sponsors and funding partnersInternal and external clients of the organizationBusiness units within the organizationVendor partners of the organizationProject managers and delivery managers/headsDevelopment teams, architects and testersSupport staff, line managers and consultantsProduct control and management teamsOther relevant project stakeholders
6 Plan of actionInitiate consultations with relevant stakeholders to get their opinion & feedbackEstablish a Program Steering Committee as the overarching body for program/project executionEstablish a Program Management Office (PMO)Establish a Program Organization model and Project Organization modelDefine and set up roles for Program Director, Program Managers, PMO managers and PMO support staffImplement mechanisms to provide guidance and direction regarding policies, governance principles, and decision or authority specifications.Establish a communications network and protocol for effective program and project communication to internal and external stakeholders of the organization
7 Steering committee models Consensus Model: Executive-level sponsors who must reach consensus on issues, changes, and adjustments in order to proceedConsultative Model: Executives and senior managers who are stakeholders for some aspect of the defined outcomes. Their role is to understand issues and needed changes, provide advice and assessment of potential impact, and make needed adjustments within their own responsibility areaAdvisory Model: Representatives for the major business segments who are responsible for outcomes, or portions of outcomes, within the business strategy and direction. Their role is to monitor program progress, understand issues raised and adjustments made, assess potential impact within their own business segments, and carry back information about committee decisions to their respective business segmentsFor our initiative we recommend the Advisory model as the organization is large and has many interdependent businesses that routinely interact with each other
8 Recommended model – Program Management Office (PMO) The Program Management Office (PMO) provides support along administrative, financial, process, and staff dimensions associated with successful program execution.The PMO also provides review and tracking of financial expenditures, generation of required reports and financial documents, and ensures compliance with policies and practices.The PMO provides & administers policies, procedures, & practices that provide an operational framework for program members
12 Benefits of recommended model Increases the long term potential of the program and individual projectsContinuous linkage to enterprise business strategy and directionClear and well-understood decision-making authorityEffective oversight of & insight into program progress and directionExecutive control over program evolution and outcomesCentral storage and management of all project data
13 Measuring Program success Delivering the program to the client on time and within the dates specified in the agreement, taking into account any amendments or approved change requestsAchieving the financial objectives set forth in the business case, taking into account any amendments or change controlsMeeting all expectations related to quality and fulfilment of program requirementsAdhering to an established program methodology measured by a joint governance boardAchieving overall client satisfaction and repeat businessr
14 PMO – Tools of engagement Overview and statement of purposeCommunication planIntegrated program scheduleProgram quality planProgram risk management planProgram issue management planProgram change managementProgram monitoring and control management
15 Elements of good program governance A compelling business case, stating the objects of the project and specifying the in-scope and out-of-scope aspectsA mechanism to assess the compliance of the completed project to its original objectivesIdentifying all stakeholders with an interest in the projectA defined method of communication to each stakeholderA set of business-level requirements as agreed by all stakeholdersAn agreed specification for the project deliverablesThe appointment of a project managerClear assignment of project roles and responsibilities
16 Elements of good program governance….contd. A current, published project plan that spans all project stages from project initiation through development to the transition to operations.A system of accurate upward status- and progress- reporting including time records.A central document repository for the projectA centrally-held glossary of project termsA process for the management and resolution of issues that arise during the projectA process for the recording and communication of risks identified during the projectA standard for quality review of the key governance documents and of the project deliverables
17 Program Communications Plan Sets up approved methods of communicationEstablishes standard communication procedureFrequency and type of updates provided to the program/project stakeholdersProvides consistency in information flowRemoves misinterpretations and doubtsWhat information to be sent to whom & whenEnsures Executive program engagementHelps keep everyone on the same page
18 Communication Plan elements Documented communication paths for information sharing, including tools (VOIP, , video/Web conferencing, etc.) will be used throughout the program & for projectsProgram and project contact lists basedRoles and responsibilities matrix for all stakeholdersA program organization chart to identify high-level organization, reporting, escalation and accountability for the program.Approval and escalation procedures for decision makingRecurring Communication Matrix to ensure timely and effective communicationProgram event management plan that ensures the right event occurrence reporting about issues, risks, milestones etc
19 Integrated Program Schedule Key program tasksKey program and/or project milestonesDuration of the program and projects in itDependencies related to the programAssigned responsibilities within the programKey deliverables of the program & scheduleProgram tracking and control mechanismActual v/s Expected program metricsMeasurement and analysis of any deviations
20 Program Quality PlanThe quality plan defines the expectations of quality that will be delivered by the program.The plan addresses the overall approach that will be adopted by the program and associated projects to ensure that quality is delivered according to stakeholder expectations.The quality plan also defines quantitative measures that are used to validate quality prior to moving through a quality gate and eventually prior to implementation.
21 Program Risk Management Plan The risk management plan is used to define the tolerance for risk throughout the program life cycle as well as the methods for identifying, recording and addressing risk throughout the program.The early and frequent identification of risk in a program is essential to meeting cost, schedule and quality expectations.Steering committee and program manager to meet on a monthly basis, or as defined in the communication plan, to review the identified risks, examine each associated action plan and define updates that need to be initiated.Additionally, the team communicates any newly identified risks that may impact the program as they surface.
23 Program Mgr v/s Project Mgr As Table above shows, the program manager and project manager roles are quite different from one another. Whereas project managers typically focus on delivering a specific component, program managers typically focus on one or more outcomes that are business strategy components.
24 Links to Business Strategy Throughout program planning and execution, managers must ensure that the program sustains a connection to the business strategy.This strategy is dynamic, not static. Both internal and external events affect the enterprise's initiatives,So programs need mechanisms that will maintain a link between the initiative and the business strategy, and provide for effective data exchange and necessary adjustments.We can divide such mechanisms into two categories: those active during program mobilization and planning, and those active during execution.
25 Program Mobilization – Strategic Review IT goals and strategyProgram capital and expenses budgetProgram benefits definitionProgram outlineCandidate projects identificationProgram mobilization planConsulting and staffing agreementsA business strategy reviewProgram planning strategy
26 Program execution reviews As the program proceeds, the program plan and schedule should provide for periodic strategy reviews by the program sponsor(s) and / or steering committee.The schedule for these reviews can be aligned with the program's phase structure, which cuts across all of the constituent projects.As a phase-end approaches, reviewers can compare the program's current state and results against the then-current business strategy, and propose needed adjustments.
27 Decisions and Authority An important aspect of program governance is assigning specific decision-making authority to each executive and management role.Program managers can hold special group work sessions for this purpose and then create and distribute a matrix for major decision areas and roles.Decision hierarchy structure should be clearly communicated to all program stakeholders
29 Program Issue Management Plan Throughout any program, risks are bound to become issues needing resolution in accordance with the strategy defined in the risk management plan.In the likely scenario that an issue arises that has not yet been identified as a risk, the issue management plan provides strategies and guiding principles for resolving the issue.Recognizing that this theoretical situation is not the typical situation in the execution of programs and projects, the same escalation principles identified through the program organization chart apply in the escalation of issues.
30 Program Change Management Whether due to missed requirements, project issues or increased scope, a program is bound to encounter change during the life cycle.The program change management plan defines the authority that the program has to approve change from an associated project, how said project requests change the agreed-to planHow the program should receive approval on change requests that are beyond its authority is also defined in this plan
31 Program monitoring & control Event log (includes identified risks, issues, changes, decisions and action items)Project performance information such as key metrics on realized rate, resource utilization, ROI, duration, deliverables etcWeekly status reports to stakeholdersRecommendations for intervention and corrective actions from senior managementLessons learnt activities from closed initiativesManaging change control requestsEffectively manage deviations from baseline
32 ConclusionEstablishing a governance framework is a significant activity requiring participation from all the relevant stakeholdersThe key to a program’s success is optimal utilization of the governance framework, policies and best practicesContinuous feedback and communication are the essential ingredients of a ProgramProgram Management is a ‘people’ thing’ and must be projected that way