Programme and Project Strategy Jayne Redfern Programme and Project Strategy Success or failure? Windfarms Programme and Project Strategy.
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Programme and Project Strategy Jayne Redfern Programme and Project Strategy Success or failure? Windfarms Programme and Project Strategy Success or failure? Scottish Parliament Programme and Project Strategy The module To augment the PPMC and MMPE modules Based on project strategy and governance Some of the subjects to be covered: Translating Programme strategy into Project strategy Getting the requirements right Perceptions of success (much more than mere T/C/Q) Gaining and retaining stakeholder support Reporting Programme and project Rs & Rs (juxtaposing PM/Sponsor/PgM roles) The rise of the PSO and its utility Programme and Project Strategy The module specification: This module augments the existing Programme and Project Management, and Managing the Multi-Project Environment modules. It will be positioned to extend, and enhance student’s knowledge in the derivation, from corporate strategy, of business change programmes and their comprising projects, and then the chartering, structuring, and governance of those collections of projects. This will include exploration of stakeholders’ perceptions of benefits, their decision-making processes, their criteria for measuring success of these enterprises, and connection of all of these to the strategies for the management of the interlinked projects. By the end of the module students should:: • Know, comprehensively understand, and operate within the context in which programmes and projects are initiated, • Know, understand, and apply the principles and philosophies that underlie successful multi-project and programme management strategies • Have theoretical and practical knowledge and understanding of the multiple human, systemic, and operational factors that influence the initiation and governance of projects and programmes, • Have knowledge, understanding, and the ability to systematically apply the methodologies and tools used in multi-project and programme management strategising. Programme and Project Strategy Recommended further reading ‘Enterprise Programme Management’ – Williams and Parr ‘Program Management’ – Michel Thiry ‘Translating Corporate Strategy into Project Strategy’ – Morris & Jamieson ‘Competitive Advantage’ – Porter, M. ‘Exploring Corporate Strategy’ – Johnson and Scholes ‘Using the Balanced Scorecard as a strategic management system’ – Kaplan and Norton Programme and Project Strategy Programme and Project Strategy Section 1: What is Strategy? Programme and Project Strategy Playing to win! Programme and Project Strategy Corporate ambitions To be the market leader To provide world-class service To have the widest product range To have the best products To be the most profitable To be the best-known To have the major market share To be the innovators Programme and Project Strategy How that translates: Creation of a world-class manufacturing capability Attract and retain the best product developers Exploit the newest/best technology Master our supply-chain Be exemplary communicators ?. . . . . . . . . All these are the basis for programmes and projects! Programme and Project Strategy Strategy Strategic project planning is the synergy between a best practice culture of project management and the effective implementation of corporate strategy. Project planning converts an organisation’s strategy into specific deliverables. Programme and Project Strategy Programmes and projects deliver change! Programme and Project Strategy The programme management environment Strategies and initiatives Programmes (and portfolios) Blueprint achieved (the vision) Projects Business operations Source:Project Managing SuccessfulStrategy Programmes, 1999. Pub; Office of Government Commerce Programme and Deriving programmes and then Projects Strategic vision Mobilisation Strategic Objectives Strategic Options Strategic Portfolio Programmes Pre-programme set-up Programme set-up Establish programme management & technical infrastructure Deliver incremental benefits Close the programme Projects Source: Project Management Institute, 2006 Programme and Project Strategy Transition Ongoing operations Project Strategy vs. Project Management Project Strategy – determining the right thing to do Project Management – doing that thing right Programme and Project Strategy Project Strategy vs. tactics Emphasis Strategy Tactics Initiate Plan Do-it Close Project lifecycle Programme and Project Strategy Programme and Project Strategy Section 2: Converting Corporate Strategy into Programmes and Projects Programme and Project Strategy Strategic analysis Generate strategic options Organisational view Project management plan Project selection Translate into action through planning Programme and Project Strategy Evaluate strategic options Select strategy Factors Analysis of: Internal External Competitive Management skills and capabilities Required and available resources Budgets and forecasts Policies and procedures Political Economic Social Technical Environmental Legal Industry characteristics Corporate goals and objectives Market share and product mix Resources Programme and Project Strategy Development of corporate strategy 1 The environment Culture & stakeholder expectations Source: Johnson & Scholes, ‘Exploring Corporate Strategy’ Resources & strategic capability Strategic analysis Strategic choice Strategic implementation Programme and Project Strategy Development of corporate strategy 2 Source: Johnson & Scholes, ‘Exploring Corporate Strategy’ Strategic analysis Identifying strategic options Strategic choice Strategic implementation Evaluating options Selecting strategy Programme and Project Strategy Development of corporate strategy 3 Source: Johnson & Scholes, ‘Exploring Corporate Strategy’ Strategic analysis Manning & allocating resources Strategic choice Strategic implementation Managing strategic changes Organisational structure & design Programme and Project Strategy Development of corporate strategy 1 Logical incrementalism Source: Johnson & Scholes, ‘Exploring Corporate Strategy’ Planning Political Cultural Natural selection Visionary Programme and Project Strategy Development of corporate strategy 2 Logical incrementalism Source: Johnson & Scholes, ‘Exploring Corporate Strategy’ Planning Political Cultural Natural selection Visionary Programme and Project Strategy Development of corporate strategy 3 Logical incrementalism Source: Johnson & Scholes, ‘Exploring Corporate Strategy’ Planning Political Cultural Natural selection Visionary Programme and Project Strategy Programme and Project Strategy Section 3: Creation of the programme/project environment Programme and Project Strategy Relative focus of effort Context matters Change capabilities Core business capabilities Pace and scale of change Source: Williams and Parr, ‘Enterprise Programme Management’ Programme and Project Strategy The Puttick Grid High Product Complexity Low Market Uncertainty High Low Programme and Project Strategy The ‘Functional’ organisation MD Sales Production Support PM Programme and Project Strategy HR & finance The ‘Project’ organisation Board Project A Project B Project C Core services Programme and Project Strategy The ‘Matrix’ organisation Senior manager Head of project management Functional manager Functional manager Functional manager Functional team Functional team Functional team Project manager Programme and Project Strategy The Enterprise Programme Management framework Programme Architecture: “The establishment of Strategic Management Strategic portfolio management Programme delivery management leadership, structures, team dynamics, and support mechanisms that enable the delivery of programmes and projects” Change Architecture: “is concerned with the human considerations of those in the organisation who will be impacted by programmes and projects – beyond the delivery teams” Project management Source: Williams and Parr, ‘Enterprise Programme Management’ Programme and Project Strategy Programme architecture Is the establishment of support structures and mechanisms that allow effective programme leadership, and provide the programme team with the environment, skills, tools, and support they need to operate effectively Leadership and governance Team building and development Communication infrastructure Programme resourcing Programme and Project Strategy Programme infrastructure Communication infrastructure How can the initiative be positioned within the organisation in a compelling way? What are the key messages we need to get across? Who needs to be communicated with and how Programme and Project Strategy Emphasis Change architecture Developing the change strategy Planning the change journey Embedding and reviewing Time …… is the process of crafting an overall change strategy and planning the interventions needed to drive the change Programme and Project Strategy The personal and corporate change journey Internalisation Adoption Try-out Positive perception Decision not to support Change bereft of support at initial utilisation Negative perception Understanding Confusion Unawareness Programme and Project Strategy Change aborted after extensive utilisation Programme and Project Strategy Section 4: Concepts of corporate benefit Programme and Project Strategy Concepts of ‘value’ Programmes and their projects are undertaken to pursue some vision of ‘advantage’ That ‘advantage’ or ‘Benefit’ may not be solely, or even partially financial However, the bill must be paid, and the payer mostly wants some measure of ‘gain’, which usually comes down to financial metrics Non-financial Benefits commonly support the ‘hard’ Benefits and may include significant ‘incidental’ Benefits Programme and Project Strategy Planning for success? Objective Programme and Project Strategy Accumulating benefits from multiple projects Gap Analysis – Business Case Evaluation Benefits Target Gap to be f illed Business Case ev aluation to target the right one/s Benef it from newly approv ed project Future benef its f rom projects already approv ed Benef its f rom on going operations (prev ious completed projects) Source: Buttrick, 2006 Time Programme and Project Strategy The ‘Business Case’ maturity decline growth 0 investment Balancing cost/risk/benefits Comparing alternatives using a common measure Cost Benefit Choice under uncertainty Risk Programme and Project Strategy The ideal product lifecycle? PLUS $/£ TIME MINUS Programme and Project Strategy Business case contents - Description: project outline plan constraints Project success: success criteria deliverables benefits Justification: financial appraisal risk and opportunities stakeholders and sponsorship Programme and Project Strategy Benefits - impacts - deliverables achieve Vision trigger Benefits cause Impacts produce Deliverables Programmes Projects Programme and Project Strategy Financial appraisal techniques Payback Net present value Internal rate of return Many techniques are used in many combinations – we will explore some of them later And also: Cash flow Profitability Rate of return Programme and Project Strategy Non-financial appraisal criteria Stakeholder expectations Strategic imperative Competitive parity Programme and Project Strategy And some balancing factors Where are the traps and pitfalls? What, of relevance, is happening elsewhere in the world? Programme and Project Strategy And some balancing factors What are your stakeholder’s wishes? Where are you in the competitive race? Programme and Project Strategy Success? Stakeholders – all of the people who are involved or affected by the project. The project must satisfy their needs Products – intermediate (non-persistent), and final (persistent) deliverables Project – time and cost constraints. The project must be completed on schedule and within budget. Business – contribution to an overall improvement in business performance. The business must benefit, directly or indirectly, from the execution an/or implementation of the project Source: Mussett, 1997 Programme and Project Strategy Seeing the benefits Immediate impact T Internal measures Q Direct contribution C Future opportunity Programme and Project Strategy Success category: Immediate impact Meeting functional performance Meeting technical specifications and standards Favourable impact upon customer Fulfils customers’ requirements Solves the customer problem Customer is using product Customer expresses satisfaction Programme and Project Strategy Success category: Direct contribution Business and/or commercial success Revenue and profits enhanced Larger market share generated Programme and Project Strategy Success category: Future opportunity New opportunities Competitive advantage New markets New technologies Additional capabilities and competencies Programme and Project Strategy and another way of seeing it . . . Strategic Speculative Benefits which primarily support future business opportunities – business development, growth. Benefits with a high achievement risk, but often high reward – e.g. arising from experimenting with the way we do things. Benefits which will deliver critical improvements to today’s operations – e.g. increased efficiency and effectiveness. “Nice to have” benefits, in the sense that the organisation’s growth or survival will not depend on them. Usually related to improvements to non-critical activities. Often quick wins. Key operational Support Source: Bradley 2010 Programme and Project Strategy Defining benefits – tangible and intangible Cost avoidance New income Additional income Strategic alignment Competitive advantage Competitive response Asset preservation Programme and Project Strategy Project success criteria End date October I want minimum disruption to BaU during implementation st Co Tim e I don’t want anything to go wrong Performance Budget £500,000 I want our employees to be happy with the new processes Specs as agreed Programme and Project Strategy I want it to involve as few of my people as possible Project success criteria Those decisive factors which if satisfied will make the undertaking acceptable to the client/user Qualitative or quantitative measures - predefined hurdle level Everyone focuses on different visions of success Provided by the users and stakeholders (from elicitation) KPIs - measures of success used throughout the project to ensure it is progressing towards a successful conclusion Programme and Project Strategy Programme and Project Strategy Section 5: Financial appraisal techniques Programme and Project Strategy Financial appraisal techniques Payback Net present value Internal rate of return And also: Cash flow Profitability Rate of return Programme and Project Strategy Payback Z Ltd have a cost of capital of 12%. A new press costs £120,000. Income netted from costs from the new press are expected from year 1. At the end of year 4 the press will be scrapped with no significant residual value. Year 0 1 2 3 4 Annual cash flow £ -120,000 +40,000 +50,000 +60,000 +70,000 Cumulative income £ -120,000 -80,000 -30,000 30,000 100,000 Payback in year 3 Programme and Project Strategy Payback Jan Year 3 Jul Dec £30,000 Payback 1st July 0 - £30,000 Programme and Project Strategy Net present value Z Ltd have a cost of capital of 12%. A new press costs £120,000. Income netted from costs from the new press are expected from year 1. At the end of year 4 the press will be scrapped with no significant residual value. Year 0 1 2 3 4 Annual cash flow £ -120,000 +40,000 +50,000 +60,000 +70,000 NPV says DO IT DFs at 12% 1 0.893 0.797 0.712 0.636 Undiscounted Net present value £ £ -120,000 -120,000 +40,000 +35,720 +50,000 +39,850 +60,000 +42,720 +70,000 +44,520 +£42,810 Programme and Project Strategy +£100,000 Internal rate of return Select discount factor higher than 12% to drive NPV negative – use 40% Year 0 1 2 3 4 Annual cash flow £ -120,000 +40,000 +50,000 +60,000 +70,000 DFs at 40% 1 0.714 0.510 0.364 0.260 Net present value £ -120,000 +28,560 +25,500 +21,840 +18,200 -£25,900 Programme and Project Strategy IRR – by graphical means NPV £60,000 £42,810 Total NPV £40,000 IRR £20,000 IRR £0 12% 20% 30% 40% -£20,000 -£25,900 -£40,000 Rate Programme and Project Strategy Individual exercise (5 minutes) Compare these 2 projects Which gives a greater return? Which gives a faster return? Which gives a better return? Project A Project B Year Cumulative cash flow £ Cumulative cash flow £ 0 -180,000 -180,000 1 -130,000 -120,000 2 -80,000 -60,000 3 -30,000 0 4 +20,000 +60,000 5 +70,000 +60,000 6 +120,000 +60,000 Programme and Project Strategy Cash flow used for Project tracking – tracking actual expenditure and income allows the period and cumulative cash flows to be calculated and compared to the planned cash flow Funding level – planned cash flow will give an indication of the largest negative expenditure on the project and when this will occur Overall profit and loss – final cumulative cash flow on a project can be viewed as the profit (loss) Establishing terms of payment – the aim is to have the customer paying as much as possible as early as possible Company cash flow – by totalling cash flow across all projects within a company, the total company cash flow can be calculated Programme and Project Strategy Programme and Project Strategy Section 6: Deriving the B-I-P routes V2 Programme and Project Strategy Programmes ‘Programme management provides the framework for implementing business strategies and initiatives and for managing multiple projects… It is the efficient execution of the set of projects within a controlled environment such that they realise maximum benefit for the resulting business operations.’ [CCTA ‘Guide to Programme Management’] Programme and Project Strategy Programme types Goal-focused Programmes: Focusing on a Key Business-driven Requirement; Usually very dissimilar Projects & Technologies; A Core Aspect (with Benefit Mgt.) of the PPS Module. Return-maximising Programmes: Focusing on Key Business Capability Utilisation; (Capital, Facility & Management Capacity, Resources, & Supply Chain) Usually very similar Projects & Technologies; (May include mutual Lead Technology & Post-delivery Support Projects) A Core Aspect of the MMPE Module. Programme and Project Strategy The nature of programmes P P L P P P 1st phase P L 2nd phase P P L 3rd phase Programme and Project Strategy ‘To-be’ P Island of benefit L Island of benefit Current business ‘As-is’ P L P L Future business ‘blueprint’ P Deriving projects from programmes Impacts Benefits Products Heightened awareness New passengers New income Advertising campaign Awareness project Faster trains New trains project More More frequent frequent trains trains new services Better signalling Additional income (Source: CITI Group) More frequent passengers More money from existing passengers Projects Increased Increased speed speed limit limit Better rails More ticket inspectors Programme and Project Strategy Infrastructure Upgrade project Recruitment & training project Projects deliver outputs, Programmes deliver outcomes, outcomes realise benefits Programme lifecycle phases Formulation phase – identify pressures to change (internal or external) and determine the best way to address them. Evaluate options. Organisation phase – plan the programme organisational structure. Planning must focus on early benefits (to fund the rest of the programme), positive cash flow and maintenance of the motivation of the stakeholders. Deployment phase –the programme manager acts as sponsor of projects, management of the environment and stakeholder expectations. Appraisal phase – evaluate the programme during periods of stability and reassess the validity of the original business needs. Assess delivery of benefits at organisational and project level. Programme and Project Strategy Inputs to Programme planning Vision statement Blueprint Clear understanding of target? Ability to achieve? Transition Benefits Cultural aspects? Linked to projects? Progress monitoring Identifying milestones? Programme plan Projects Contribution towards Benefits Timetable Resources Dependencies and interfaces? Capacity and skills Risks and Assumptions Stakeholder needs Responsibility for action? Appropriate information? Source: ‘Managing Successful Programmes’ Programme and Project Strategy Differences Project Fixed duration Predefined objective Programme Undetermined duration Negotiated objectives Focused on tasks Project manager as an overseer Single deliverable Focused on goals Programme manager as a creative thinker Multiple interrelated deliverables Programme and Project Strategy B-I-P mapping techniques Step 1: What organisational capabilities/changes are needed to achieve the benefits sought? Step 2: What projects do we need to deliver those? Step 3: Review the proposed projects with the question “if we deliver all those but only those, is it likely that the benefits will be realised?” – what omissions are revealed! Step 4: What programme risk management projects are required? (safety-nets and insurance!) Programme and Project Strategy WHAT projects do we need? Programme and Project Strategy WHAT projects do we need? Programme and Project Strategy Example B-I-P map An Example Benefits Map Research newspaper demographics Design new system for issue of press releases Implement new press release system More coverage in newspapers Specify themes and messages for marketing campaign Design marketing campaign Launch Marketing Campaign Greater brand recognition Specify changes to website Research customers perception of organisation Enabling changes Raised profile for the organisation Develop and test redesigned website Implement new website More ‘hits’ on website Design rewards scheme for referrals Implement rewards scheme More personal recommendations Business changes Benefits to Source: Paul et al, 2010 Business objective Programme and Project Strategy Programme and Project Strategy Section 7: Getting the project Objective right Programme and Project Strategy Structuring the Project Strategy “If you don’t know where you are going any road will do” – old Chinese proverb Programme and Project Strategy Structuring the Project Strategy “Plan the flight and fly the plan” Programme and Project Strategy Project types Clarity of process Source: Eddie Obeng Clarity of objective E.Obeng Programme and Project Strategy Strategic Intent • An expression of the VALUE of the project’s OUTCOME to the client/sponsor; what it will allow them to do in the way of creating Benefit • Should be translatable into an Objective statement Programme and Project Strategy Strategic Intent The project Objective • The project’s Mission statement – how the world will look after it completes • A completion statement – how we will know that we have completed Programme and Project Strategy Strategic Intent CSFs The project Objective • An expression of HOW the SHs want the project to be performed, and how it will ‘feel’ in order for them to be satisfied • Should be tangible and therefore translatable into KPIs for utilisation in measurement towards their successful completion. • If not met, some or all of the SHs/clients will deem the project to partially or wholly unsatisfactory Programme and Project Strategy Strategic Intent The project Objective Constraints CSFs • Restrictions on availability of resources of any kind – time, money, people (quantity, quality, types, level of skills, etc), that may well necessitate renegotiation of the Objective. • Will be strongly influenced by CSFs and those may actually look like Cs. Programme and Project Strategy Up to this point we are involved in ‘strategic’ planning work Strategic Intent The project Objective Constraints CSFs • The project’s set of Persistent Products (true Deliverables) will meet the Objective, and make the Strategic Intent realisable • As firstly or ideally visualised, they may Products (Deliverables) not be possible due to Cs or CSFs CSFs may necessitate some ‘nonpersistent Products, such as SH Management Products or heavy-duty risk management products Programme and Project Strategy Strategic Intent The project Objective Constraints CSFs Once the PBS is stable, the WBS can be finalised, final estimates prepared, and a first schedule created i.e. the ‘tactical’ project planning work Products (Deliverables) Programme and Project Strategy The project charter PRINCE2 – ‘Mandate’ APM – ‘Charter’ Others – ‘Terms-of-reference’, ‘Project Initiation Document’ ‘Project Registry Document’ Programme and Project Strategy The key project document Ties together: The Objective statement The reason The CSFs The Product set The Benefits The Constraints The strategic project risks Programme and Project Strategy Let’s look at one! Programme and Project Strategy Programme Initiation – Scoping Document Programme Title aqua regia total sulphate Responsibilities. Sponsor: Jason Rogers (lab Manager) Project manager: Darren Lewis Problem / Purpose- a high number of insufficient samples are being reported for total sulphate. Turnaround time needs to be improved. Objective- perform routine total sulphate analysis by ICP OES using an aqua regia extraction in January 2008. Reporting results will be through the workflow manager and LABS data management systems and must meet the MCERTs accreditation. Critical Success Factor 1. MCERTs accreditation obtained 2. smooth transition with regards to reporting results to customers 3. quality of results maintained if not improved. 4. cost reductions. Primary Products 1. quality management system 2. MCERTs accreditation 3. instrument method 4. method documentation 5. I.T. specifications 6. final report. Start Date End Date Budget / Effort 1 September 2007 31 December 2007 Benefits / Impacts 1. Cost savings can be made 2. turnaround time will be improved. 3. less insufficient samples will be reported. Risks 1. Obtaining MCERTs accreditation is time consuming and expensive and is not guaranteed 2. Customers may object to the change in methodology. 3. New method may be more problematic than the old method Programme and Project Strategy Project management plan what? How? Where? agreement acceptance Programme and Project Strategy The project planning process Budget Obtain key resource Estimating process Products PBS Processes WBS Resources OBS Dependency network Risks Risk log Schedule Detailed schedule Board agreement Lodge with project office and baseline Monitor assessment Final review Programme and Project Strategy Source: Association for Project Management The project management plan Objective - SMART Success criteria - requirements agreed Requirements Estimates - time/cost/resources Budgets Quality policy Health and safety policy Environmental policy Risk management policy Assumptions and constraints Project organisation Benefit realisation plan Schedule Plus - Technical - Commercial - Organisational - Personnel - Control Programme and Project Strategy Both PBS and WBS are needed The Objective The ‘ideal’ planning route - ? What we are trying to ACHIEVE – the Outcome The PBS What we need to CREATE - the Outputs The WBS What we need to DO – the Activities RISKS ! WHO we need to do what – the resource demand prediction Programme and Project Strategy The OBS An alternative perspective The ‘resourceconstrained’ planning route - ? The Objective The OBS The PBS The WBS Programme and Project Strategy PRODUCT BREAKDOWN STRUCTURE P 1.1 Project output P0 P1 P2 P1.2 P1.3.1 P1.3 P1.3.2 P2.1 P3 P2.2 P3.1 P1.3.3 Programme and Project Strategy P3.2 P3.3 WORK BREAKDOWN STRUCTURE P 1.1 Project output P0 P1 P2 P1.2 P1.3.1 P1.3 P1.3.2 P2.1 P1.3.3 P3 P2.2 P3.1 P3.2 P3.3 W3.1.1 W3.2.1 W3.1.2 W3.2.2 W1.3.3.1 W1.3.3.2 W3.1.3 Programme and Project Strategy W3.2.2.1 W3.2.2.2 Project Strategy is as good as its outputs! Creation of a viable project management plan is the essential output of project strategising Programme and Project Strategy Programme and Project Strategy Section 8: Programme Risk Management Programme and Project Strategy WHY MANAGE RISKS ??? FIRE-FIGHTING’S ….. ………..FUN !!! Programme and Project Strategy . IT Scope Creep Is 'Scope-Creep' a risk for IT projects? No....... the best you can hope for is 1.5% per calendar month compound! So... do you just give up? No... Use Change Assessment, Timing & Control. (including added activities for risk impact recovery actions) Programme and Project Strategy The Scottish Parliament Building Budget £50m; Actual cost £400m; A lesson in a lack of Change-Control, & hence in ‘Scope-Creep’! Programme and Project Strategy Supplier:Chelton Telecom (SME) Chelton Telecom &Microwave CBP: key results Comparison between the last payload before the CBP implementation and the latest one % of redesign % late deliveries Before After 53.4 % 7.8 % 27 % 1% Reproduction interdite sans l’accord de Chelton Telecom & Microwave Programme and Project Strategy Client: EADS Astrium - Satellite Waveguides Effect of deploying CBP Workflow Management System Latest space craft model > 400 wave guides (W/G) +50% improvement to first delivery >80% complete at integration milestone 1 >+30% enhancement in non-recurring effort 4:1 ‘learning curve’ reduction Cycle time reduction of > 20% than ‘best’ previous design >20% price reduction (complexity = +20%) Programme and Project Strategy In delivering Programme output a business relies Strategy on the contribution of other businesses .... But each with their own business drivers: Benefit Delivery Strategy Strategy Benefit Delivery Benefit Delivery Programme and Project Strategy In delivering Programme output a business relies on the contribution of other businesses .... Benefit Delivery But each with their own business drivers: Strategy Strategy Benefit Delivery Strategy Benefit Delivery Programme and Project Strategy In delivering Programme output a business relies on the contribution of other businesses .... Benefit Delivery But each with their own business drivers: Strategy Strategy Benefit Delivery Strategy Benefit Delivery Programme and Project Strategy Benefit Delivery And the effect was: The CBP Workflow System put programme knowledge and the whole delivery process into the control of the Delivery Management ... Management Strategy Strategy Strategy … inherently cutting wasted effort, risk, & delay from the Benefit Delivery Programme and Project Strategy The Communication Dream Commercial Management The Business’s Strategic Management Ring Treasury & Financial Mgt. Operational & Production Mgt Human Resource Mgt The Programme Management Team Programme and Project Strategy Reality!!!......................... (Twin-Ring Management) ‘Partisan Interests’ Ring Commercial Management The Business’s Strategic Management Ring Treasury & Financial Mgt. Operational & Production Mgt ? Human Resource Mgt ‘Person-to-Person’ communications based on personal business interests! The Programme Management Team Programme and Project Strategy ‘Soft’ Demand Axis: A mixture of Uncertainty and Ambiguity (i.e. Knowledge & its communication) # The VUCA -Vector Diagram ( # VUCA was defined by US National Defense University, 1997) Intersection Point of Risk management Demands ‘Hard’ Demand Axis: A mixture of Volatility and Complexity (i.e. The Operating Environment) Programme and Project Strategy ‘Soft’ Demand Axis: A mixture of Uncertainty and Ambiguity (i.e. Knowledge & its communication) # The VUCA -Vector Diagram ( # VUCA was defined by US National Defense University, 1997) Intersection Point of Risk management Demands Response Vector: A mixture of Competencies* and Flexibility* (i.e. Capability) * Noting that Competencies includes ..... ......individual & group Integrity And that Flexibility includes ..... the freedom to use the Competencies ‘Hard’ Demand Axis: A mixture of Volatility and Complexity (i.e. The Operating Environment) Programme and Project Strategy Two major Impact Areas ..... 1. Cost (or Time) Risk: 2. Benefits Risk: • Affects the projects but can cause delays and increased costs to the programmes of which they are part; • Affects the business by impairing the programme’s outcomes; • Often the damage can be remedied, albeit at additional cost and incurred delays; • BUT can cause degradation of the performance and/or value of the project’s outputs, thereby causing business risk. MANAGED: • Often the damage cannot be remedied or, if it can, the additional cost is high and incurs substantial delays (thereby incurring further risk); • Managed by a holistic approach to Risk Management across the programme and the enterprise. MANAGED: MOSTLY WITHIN THE PROJECTS BY BUSISNESS VIA PROGRAMMES Programme and Project Strategy Remember what is Important Identified demands on the programme: TIME (statutory) Quality Control Skilled Resource Cost Control Scope Control But the projects' stacks may be different! Programme and Project Strategy Understanding the Risk The Risk Register A Truly Strategic Project 3 Volume IV Overview of Risk & NOW AVAILABLE WITH SCORED RISKS !!!!!!!!!!!!!?! Programme and Project Strategy ? The 'Risk Book' Approach Or use a computer to generate 'Confidence Curves' Programme and Project Strategy Confidence Curves 100 Ideal 'S' Curve % Confidence 80 Many Risks: High Impact Low Prob. 60 40 Look for Exceptional Risks Many Risks: High Prob. = Issues 20 Total Cost of Risk £ M 0 0 0.5 1.0 1.5 2.0 2.5 Programme and Project Strategy 3.0 3.5 ‘Out-Turn Cost – Probability’ Plot Projected Out-Turn Risk Cost £ M 3.5 ( # As used by the RiskAid & RiskAid Enterprise Software) 3.0 2.5 2.0 1.5 1.0 0.5 0 % Probability that Out-Turn Cost Exceeds Value 100 80 60 Project 40 Programme and Strategy 20 0 The 'Risk Book' Approach Programme and Project Strategy Plus Strategic Provisions Financial Funding: > Monies provided on an informed judgement; Corporate Services: > Insurance, Treasury, Legal, Procurement, R&D; Competitors & Complimenters: > Via Industry Associations & Joint Agreements. Programme and Project Strategy The Three Tests for 'Issue' > Over say 65/70% Probability; > Solution Determinable ... ... so no value to risk-taking; > Risk Unacceptable ... ... e.g. Health & Safety threat; ... e.g. Cumulative Cost/Delay. Programme and Project Strategy When do you Escalate a Risk? > Too big for the project/programme; > There are wider implications; > It needs a 'Systematised Solution'; ...You need a Risk Escalation Policy! Programme and Project Strategy Accepting ‘The World of VUCA’ How do we go forward? Make Assumptions! And is making an Assumption a Risk? You bet! but do not duplicate this data in a Risk Log (prioritise documents ... Assumptions, Issues, Threat Risks, & Opportunity Risks) Programme and Project Strategy Three Phases in Delivery Programme Negotiation The environment that enables its Project Risk Taking Risk Closing Enabling Projects Activity to Deliver to the Programme Increasing Vulnerability* to Risk * i,e, Capability/Benefit Exploitation Processes to extract the value from the Programme Reducing Risk Appetite Programme and Project Strategy Risk Minimised The Deployment Phase of Delivery 1 Different Programme Delivery Partners will probably be at different Phases at any one time Enabling Projects (of the Programme) Activity to Deliver to the Programme Project Negotiation Enabling Supplier Project Supplier's Increasing Vulnerability to Risk Capability/Benefit Delivery by Supplier Programme and Project Strategy The Deployment Phase of Delivery 2 Risk Definition of a Programme: An amalgam of dissimilar projects to enable a corporate benefit exploitation, organised as an entity such that each project delivers to the following process at a lower level of risk than it received from the proceeding process Enabling Projects (of the Programme) Reducing Level of Programme Risk Activity to Deliver to the Programme Input Project 1 Project 3 Project 5 Input Project 2 Project 4 Programme and Project Strategy Delivery The 'Circle of Risk' Stable Owned, Robust & Governable Management (via Processes) Return to Stability The 'Impact' Line Stabilise for Recovery Terminate or Prevent (Issues) (Irreversible Event) Mitigation Monitor & Control (Plus Recovery Planning & Preparations) Detect or Decide (Moving to 'M& C') Moving to ‘At Risk’ 'At Risk' (i.e. Unstable, The 'Incident' Line Bi-Pole (Reversible 'Loss of Control') Management)Programme and Project Strategy © Richard Watson, Technical Management Consultancy Limited 2012 Stable Owned, Robust & Governable Management (via Processes) ‘At Risk’ (i.e. Unstable, Bi-Pole Management)Programme and Project Strategy © Richard Watson, Technical Management Consultancy Limited 2012 Stable Owned, Robust & Governable Management (via Processes) e.g. Slippage AND ????? ‘At Risk’ (i.e. Unstable, The 'Incident' Line Bi-Pole (Reversible 'Loss of Control') Management)Programme and Project Strategy © Richard Watson, Technical Management Consultancy Limited 2012 ‘Disaster’ Response Management Stable Owned, Robust & Governable Management (via Processes) Static Management InstabilityReduction Management ‘At Risk’ (i.e. Unstable, The 'Incident' Line Bi-Pole (Reversible 'Loss of Control') Management)Programme and Project Strategy Dynamic Observation & Management © Richard Watson, Technical Management Consultancy Limited 2012 Stable Owned, Robust & Governable Management (via Processes) ‘Disaster’ Response Management Static Management The 'Impact' Line Detect or Decide (Irreversible Event) (Moving to 'M& C') InstabilityReduction Management e.g. Slippage AND ????? ‘At Risk’ (i.e. Unstable, The 'Incident' Line Bi-Pole (Reversible 'Loss of Control') Management)Programme and Project Strategy Dynamic Observation & Management © Richard Watson, Technical Management Consultancy Limited 2012 Stable Owned, Robust & Governable Management (via Processes) ‘Disaster’ Response Management Static Management The 'Impact' Line Detect or Decide (Irreversible Event) (Moving to 'M& C') InstabilityReduction Management e.g. Slippage AND ????? ‘At Risk’ (i.e. Unstable, The 'Incident' Line Bi-Pole (Reversible 'Loss of Control') Management)Programme and Project Strategy Dynamic Observation & Management © Richard Watson, Technical Management Consultancy Limited 2012 The 'Circle of Risk' Stable Owned, Robust & Governable Management (via Processes) Return to Stability The 'Impact' Line Stabilise for Recovery Terminate or Prevent (Issues) (Irreversible Event) Mitigation Monitor & Control (Plus Recovery Planning & Preparations) Detect or Decide (Moving to 'M& C') Moving to ‘At Risk’ 'At Risk' (i.e. Unstable, The 'Incident' Line Bi-Pole (Reversible 'Loss of Control') Management)Programme and Project Strategy © Richard Watson, Technical Management Consultancy Limited 2012 The 'Circle of Risk' Stable Owned, Robust & Governable Management (via Processes) The 'Impact' Line IRREVERSIBLE Detect or Decide IMPACT (Irreversible Event) (Moving to 'M& C') MAXIMISED TIME GAP ‘At Risk’ REVERSIBLE (i.e. Unstable, The 'Incident' INCIDENT Line Bi-Pole (Reversible 'Losswhere of Control') The point and Project is lost Strategy Management)ProgrammeControl © Richard Watson, Technical Management Consultancy Limited 2012 Programme Risk Mgt. - ‘Bow Ties’ Analyse your Programme/Projects using 'Bow Ties': Threat Project or Programme ‘Incident’ Event Risk (Event @ Prob.) Programme and Project Strategy Evaluated Consequence Programme Risk Mgt. - ‘Bow Ties’ Analyse your Programme/Projects using 'Bow Ties': Threat to Barrier Threat to Barrier Project or Programme Threat ‘Incident’ Event Threats to Barriers And Barriers to those Threats Risk (Event @ Prob.) Barriers to Risk Reducing: Probability Consequences? Barriers to 'Top Event' Sequence: Eradicate or Prevent Decide Monitor & Control Mitigations …. But …. Immediately prior to the ‘Top Event‘ : Identifiers for ‘Control’ is Failing ... Plus ‘Control’ Recovery Plans DANGERS in TRANSFER Barriers to Consequences And their Escalation Programme and Project Strategy Evaluated Consequence Note: The reduction in the Evaluation of Consequences & Probability (C x P) justifies the cost of the Barriers Programme Risk Mgt. - ‘Bow Ties’ Analyse your Programme/Projects using 'Bow Ties': Threat to Barrier Threat Threat Threat to Barrier Project or Programme ‘Incident’ Event Barrier description Risk (Event @ Prob.) Evaluated Consequence ( incl. Cost Delay & Rectifications) Risk (Event @ Prob.) Evaluated Consequence (incl. Cost Delay & Rectifications) Escalation of Threat? Threat to Barrier Evaluated Consequence(in cl. Cost Delay & Rectifications) Programme and Project Strategy ‘Rules of Risk Transfer’ ● Risk that is transferred transfers also the rights to manage that risk to the advantage of the new risk holder - and to be effective the transfer of both risk and the right to manage that risk must be fully understood by all the involved parties, and must be appropriately documented; ● Risks may only be transferred for real benefit - e.g. in the of saving costs and/or resource usage, and also essentially in the improving of the project’s ‘Ability to be Managed’’ - and the risk may not be transferred solely for a either a reduction of threat or an escalation of opportunity to the transferring party; ● Risk should be transferred to whichever party is most competent to manage that risk, and the transferring party has a responsibility to ensure that such transferred risks are within: ● the technical competence of the risk recipient; ● the managerial competence of the risk recipient; ● and the financial competence of the risk recipient. Programme and Project Strategy The Enablers of Risk Management PEOPLE (Thinking & Risk Aware) PROCESS TOOLS STRUCTURE INFORMATION (Communication) Programme and Project Strategy Programme Risk Mgt. Tools To be used to meet your management needs of: • Getting your Ideas in Good Order; • Processing so as to Consistently Evaluate; • Formatting so as to Communicate ……. ... Both the Problems and the Solutions! Programme and Project Strategy . Enterprise Risk Management Most organisations minimise their operational risks by designing their regular processes accordingly; This means that most enterprise risk stems from: An inadequate, misused, or faulty systems; Excess, inter-reacting &/or amalgamated variances; Unplanned/unexpected events (Human & System Complexity); The concept of ERM involves an holistic, complete, pan-organisational adoption of Risk Management: Programme and Project Strategy SomeRecommended Recommended Reading Some Reading 'Managing Risk for Projects and Programmes' by John Bartlett 'Picturing the Uncertain World' by Howard Wainer 'Harvard Business Review on Managing Uncertainty' in their 'Ideas with Impact' series 'Mastering Statistical Process Control' by Tim Stapenhurst Google 'bowtie risk' and 'bow tie risk' for further information on the use of 'Bow Ties' Programme and Project Strategy Extending the use of Risk Mgt. The end of the Risk Management Sessions..... ..... but not the end of your Risk Management: > Selection of contract format with suppliers; > As a tool in negotiation (+ look at their risk); > Included in analysis for decision support. Programme and Project Strategy Programme and Project Strategy Section 9: Product requirements elicitation and statementing Programme and Project Strategy Requirement or solution? I need to make the company a financial success Requirement I want to be able to sell train tickets on-line I want a point-of-sale system I want a database One person’s solution is another’s requirement! Programme and Project Strategy Solution Requirement Solution Requirement Solution Requirement? Specifying the problem isn’t easy Solution focused Ambiguity in language Natural optimism Programme and Project Strategy How big is the goal? ACs ACs Programme and Project Strategy Characteristics Requirements Constraints Acceptance criteria Define the problem Non-negotiable Changing a requirement changes the problem being solved! Typically owned by sponsor Not primary attributes of the solution May be able to change Set by the problem owner Are attributes of the solution Negotiable! Programme and Project Strategy Functional requirements 6000 lbs thrust Static breaking strain – 2T Functional criteria are ‘binary’ – the product will either perform to them or won’t Programme and Project Strategy Non-functional requirements I want a project management course to make engineering development staff effective Are measurable quality attributes of a functional requirement Help determine the users’ expectations Programme and Project Strategy Driving out ambiguity Effective Attribute Scale Test Reduction in number of Internally-originated Accurate % Independent Time Weeks to solo operation Count Number of successful Projects run each year Efficient changes Programme and Project Strategy An acceptance test Functional Non-functional Requirement Met Effective Scale Test Worst Plan Best 1.1.1 3 Accurate % Reduction in number of internally-originated changes 5% 10% 15% Independent Time Weeks to solo operation 26 20 15 40 Efficient Count Number of successful projects run in each year 7 10 15 5 1.1.2 1.2.1 3 + Programme and Project Strategy Now Exercise Imagine that you are the project team tasked with designing and developing a new ‘walkie-talkie’ radio What might be some of the non-functional (qualitative) requirements ? What metrics would you use to describe and define those NFs ? AND HOW WOULD YOU TEST FOR THEM ? Programme and Project Strategy Reports back from the syndicates Programme and Project Strategy Programme and Project Strategy Section 10: The buy/build decision and contracts Programme and Project Strategy Which? OR Programme and Project Strategy Lecture outline The factors affecting the buy in or buy out decision The formulation of the procurement strategy Commercial Management Aspects Behavioural dynamics, some influencing tools Cost considerations Law and the contract Preparing a Tender Selecting suppliers Final contract signature Programme and Project Strategy Procurement strategyPCH RISK Programme and Project Strategy Procurement strategy Build or buy decision Corporate procurement strategies Single or multiple suppliers Required supplier relationships Supplier selection Contractual aspects Terms of payment Reception strategy Ethical procurement Risk Management Programme and Project Strategy Procurement – a definition Requirements Buy or build Build Buy The process of acquiring new services or products A process that involves two or more parties with different objectives, who interact in a given market Supply chain: from your supplier’s supplier to your customer’s customer Association for Project Management 2002 Programme and Project Strategy Pros and cons of buying-in Utilising external (specialised) expertise Extended capacity R&D Liberating scarce internal resources Cost saving Sharing the risk Time saving Speed Intellectual Property Protection Skills required Added value cf Reduced control Time spent co-ordinating (communication and execution) De-motivation of internal resources Higher costs Increased risk Maintenance overhead Commitment to technology which could become obsolete e.g. Visual Basic, Fortran, C, Java. Programme and Project Strategy Prerequisites • • • • • Fully signed off Requirements Specification. Indicative timescale for project known Financial appraisal based upon indicative costings Risk analysis and Risk Plan. Modeling of the business process As IS and the To Be If you don’t know where you are how can you plan the journey to your preferred destination? - And, how will you know you have arrived!! Programme and Project Strategy Making Sense of the Problem * Data Gathering ** Tallysheets/ Incident logs * Problem modelling ** Pareto ** Cause and effect * Force Field Analysis * Modelling complexity and options ** Data/process flow modelling ** Influence Diagrams * Prototyping Programme and Project Strategy Why Brown Paper ? Portable - Renal moved 3 times, cheap and quick. Uses full size ‘live’ paper all documents, computer screens, phone calls, ledgers, etc... Identify weaknesses/conflicts in ‘As Is’ process Identify opportunities to improve or simplify Gets people thinking about change Builds teamwork to better identify with the change Visualisation of the high cost and risk areas Invite all stakeholders to view the current process Model ‘To Be’ processes - vehicle for refinement Use to secure Buy In Its great fun too!! Programme and Project Strategy Prerequisites • • • • • Fully signed off Output Based Specification Indicative timescale for project known Financial appraisal based upon indicative costings Risk analysis Modeling of the business process As IS and the To Be PLUS • Support from the Finance team • Support from the Purchasing team • Support from the Legal team - usually facilitated by Purchasing Programme and Project Strategy Commercial Management Suppliers - A relationship of mutual benefit The Procurement Process The pricing strategy Contracts – a legal obligation Intention Offer & acceptance Consideration Capacity Terms and Conditions (T’s & C’s) Scope Goods Services Service Level Agreements Programme and Project Strategy Relationship Approaches Positional Needs of both parties in conflict Win/lose outcome Compromise lose/lose outcome Principled Parties agree to share a common problem Search for a solution to achieve mutual benefits Win/win outcome Programme and Project Strategy Understanding Relationships Behaviour: Transactional Analysis – Eric Berne Roles of Parent, Adult and Child OK Corral – Thomas A Harris 4 life positions: I’m OK You’re NOT OK I’m OK You’re OK I’m NOT OK You’re OK I’m NOT OK You’re NOT OK Programme and Project Strategy Exercise 1: Those shoes! Source Jan Ferguson Programme and Project Strategy Assertive – Negotiating When you need to say negotiate.... Say what YOU want, and what FOR Clarify what THEY want and what FOR Establish the REASONS for the ‘NO’ Pause and ACCEPT valid points Recognise any CONFLICT of NEEDS Explore ALTERNATIVES for a WIN/WIN Agree what is ACCEPTABLE to BOTH TAG LINE: “ I can win and help others to win” Programme and Project Strategy Source Context Training Ltd Dealing with Aggression When people get aggressive .... Slow down and take YOUR time Use their NAME and LOOK at them Ask QUESTIONS and get at SPECIFICS LISTEN and show EMPATHY Say where YOU stand MOVE from problems to SOLUTIONS Get TOUGHER if the aggression GOES ON TAG LINE: “ I can stand firm, I can stay calm” Programme and Project Strategy Source Context Training Ltd Pricing strategy Capital items, Revenue items Labour cost estimation and recording Taxation, VAT and import duties. 7 year horizon Establishing budgets Phased project payments Depreciation, Inflation and the Retail Prices Index Cost Reporting Milestone v Earned Value Analysis Due Diligence supplier assessment Owens and Webster Programme and Project Strategy Supplier reimbursement T&M Low Cost reimbursement Unit rate Supplier financial risk Staged, payment on milestones Target price Clauses: Retention Liquidated charges Variations Firm price/lump sum High Low Procurer financial risk High Programme and Project Strategy Procurement Process Market Research Preparation Starting Up a Procurement Issue the Request for Proposal/ Invitation to Tender Refine Requirements Specification and obtain approval Assess Submissions & short list Choose Supplier Final short list Assessment Controlled Start Controlled Progress Programme and Project Strategy Controlled Close One Type of Approach Stage 1 Requirements Definition OBC Stage 2 Procurement – Long Listing Stage 3 Procurement – Short Listing Stage 4 BAFO & Award of Contract Implementation Programme & Project Management & Communications OBC – complete. Stage 1 Major Tasks: Stage 2 Major Tasks: Stage 3 Major Tasks: Stage 4 Major Tasks: Structured handover. Conduct OBS QA Review. Develop PID. Develop Communications Plan. Develop Procurement Strategy. Develop OJEU Notice. Develop Legal Advisors ToR and Contract and appoint legal advisors. Develop PQQ and Evaluation Model. Obtain PMS Programme Board Approval. Issue PQQ and answer queries. Evaluate responses. Develop Supplier Long List Report. Develop ITT and Evaluation Model. Conduct OBC Review. Obtain PMS Programme Board Approval. Issue ITT. Evaluate responses. Develop Supplier Short List Report. Conduct Competitive Dialogue process. Demonstrations & reference site visits. Conduct contractual and functional gap analysis. Develop Benefits Management document. Develop High Level Solution Architecture document. Obtain PMS Programme Board Approval. Prepare invitation to BAFO and Evaluation model. Evaluate BAFOs & select preferred bidder. Debrief unsuccessful bidders. Develop FBC. Finalise and award PMS Framework Contract. Develop High Level Implementation Plan. Develop Lessons Learned Report. Develop Follow on Actions Report. Obtain PMS Programme Board Approval. Implementation Out of scope. Source – NHS Scotland Programme and Project Strategy Commercial Management Suppliers - A relationship of mutual benefit The Procurement Process The pricing strategy Contracts – a legal obligation Intention Offer & acceptance Consideration Capacity Terms and Conditions (T’s & C’s) Scope Goods Services Service Level Agreements Programme and Project Strategy Contractual relationships Partner Shares objectives Alliance Trusted Collaborative Shares risks and rewards Consultative Transactional Programme and Project Strategy Types of contracts Turnkey Comprehensive or prime contract Sequence of contracts (e.g. one does design one does construction) Parallel contract (e.g. for goods and services) Sub-contract Programme and Project Strategy LAW – The Contract Consumer rights exercise Sale of Goods Act 1979 When buying goods they must:- * fit the description * be of satisfactory quality * be fit for their purpose Programme and Project Strategy Exercise 2 – know your rights! Which of these statements are true? a) A ‘No refunds given’ notice is legal. b) It’s a manufacturing problem try them – shop not liable for manufacturing defects c) You must report problems within 30 days to obtain redress. d) You are outside the 12 month guarantee e) You cannot complain without a receipt f) You must return faulty goods to the place you bought them g) Price marked is the price I can pay to secure the goods. h) Your rights to redress last for 6 years. i) when you buy on the internet you have less protection than buying from a store. j) You are not entitled to keep goods you have not paid for. k) If a Trader goes bust you are left in limbo. Programme and Project Strategy LAW – The Contract (1) Key elements of a contract:- * The date on which the contract was entered into * The names and addresses of those entering into the contract * A short description of what the contract is about. * Definitions of terms used in the contract. * Description of what the supplier is going to do for you * Description of what you must do for the supplier * What you must pay the supplier * The duration of the agreement Programme and Project Strategy LAW – The Contract (2) PLUS: Boilerplate terms * Force Majeure – circumstances beyond control * Entire Agreement – ignore previous versions * Governing law and jurisdiction – English law enforced in English courts PLUS: Disputes procedure, Separate contract for goods & Services In NHS POISE model SSCON deals with services, and SYSCON deals with goods such as maintenance & help desk support. Programme and Project Strategy LAW – Intellectual Property Basic rights: * * * * * * * Copyright Duration No Registration Moral rights Database right Patents Trademarks Programme and Project Strategy LAW – CCN notes Changes to the Contract Process defined in T’s & C’s Subject to project change control procedure Applies usually to changes to the Requirements Does not usually require legal interpretation/input Can involve cost, risk, quality, performance, related to products Programme and Project Strategy LAW – Service Level Agreement (SLA) (1) Where services are required the contract is supported by a Service Level Agreement. This documents the working arrangements between supplier and client during the productive life of the project deliverable. It is used to monitor performance to contract and sits as an appendix to the contract, why is this?? Programme and Project Strategy LAW – Service Level Agreement (SLA) (2) Parts of an SLA include…. * * * * * * * * * The service required – detailed in Requirements Spec. Quality Standards Deliverables Consequences of failure to deliver (Remedies) Procedures for performance monitoring Procedures for Change Control Access security to client site and data Disaster recovery process Frequency of on site meetings Programme and Project Strategy Procurement Process Market Research Preparation Starting Up a Procurement Issue the Request for Proposal/ Invitation to Tender Refine Requirements Specification and obtain approval Assess Submissions & short list Choose Supplier Final short list Assessment Controlled Start Controlled Progress Programme and Project Strategy Controlled Close Market Research Seminars/Conferences/Papers/Network Professional bodies/Associations/SIG’s Ensure you have full ownership indicative costings Supplier selection likely candidates Target likely interested parties - prepositioning Benchmarking ‘Smash and grab’ similar procurements Learn the lessons Tease out Contractual aspects Risk from their perspective Programme and Project Strategy Setting up a RFP Requirement Specification Business interface requirements JohnsTown Statement ofBank Requirements Branch automation Procedure Terms and project for the Executive Evaluation Procurement process including evaluation criteria for all stages & Confidentiality agreements Conditions process, timetable summary criteria (Draft contract) & ground rules Project timescale including leadtimes and standstill periods Invitation to tender Risk Management Approach Standard T’s & C’s Programme and Project Strategy Procurement Process Preparation Starting Up a Procurement Market research Issue the Request for Proposal/ Invitation to Tender Refine Requirements Specification and obtain approval Assess Submissions & short list Choose Supplier Final short list Assessment Controlled Start Controlled Progress Programme and Project Strategy Controlled Close Solicitation – Outline Process Procurement day briefing to suppliers - optional. Clarify the requirement Allow questions open to all potential interested parties Relationship builder OJEU for public sector contracts >ϵ125,000 TendersDirect.co.uk useful source of UK, ROI and EU tenders Step 1 – Request for Information(ROI) or Financial, Economic, Technical (FET) questionnaire Step 2 – Based upon response target chosen suppliers with Request for Proposal (RFP) or Invitation to Tender (ITT) Step 3 – Short listing, more detailed analysis including visits to reference sites. Step 4 – Award contract. Programme and Project Strategy OJEU Process Chart OJEU NOTICE PIN (Electronic) 36 (29) Days OJEU NOTICE Electronic 30 Days OJEU NOTICE Urgent (Electronic) 15 (10) Days Can be used when an Open or Restricted procedure has been discontinued because of irregular or unacceptable tenders. All original bidders (that were not excluded) must be invited to participate. Receive tenders and negotiate (in successive stages if necessary) to identify best tender by applying the Award Criteria 37(30) Days Issue ITT to shortlist OJEU NOTICE Normal (Electronic) Programme and Project Strategy Submit OJEU Award Notice within 48 days 37 Days 10 Days Award contract allowing for 10 day Standstill Period OJEU NOTICE Normal 22 Days Receipt of Tenders OJEU NOTICE 15 (10) Days Urgent (Electronic) 40 Days Conclude dialogue and invite sufficient tenders to ensure competition Conduct dialogue (in successive stages if necessary) Invite shortlist to participate in dialogue Negotiated Without OJEU advert 37 (30) Days Submitted Expressions of Interest Shortlist against qualification criteria (minimum of 3 bidders) Negotiated with OJEU advert OJEU NOTICE PIN (Electronic) Issue PQQs Competitive Dialogue Prepare Specification Restricted Submitted Expressions of Interest Shortlist against qualification criteria (minimum of 5 bidders) OJEU NOTICE 37 (30) Days Normal (Electronic) Evaluate Tenders against Award Criteria 52 (45) Days Issue Invitation to Tender Open OJEU NOTICE Normal (Electronic) The procurement process Prepare RFI Respond to RFI Evaluate responses Prepare RFP/ITT Consultation and clarification Short List Select Respond to RFP/ITT Demonstration and discussion BAFO Issue Invitation to Request Final Contract negotiation award Programme and Project Strategy Consultation and clarification Rules Supplier Tactics 1. All communication to be in writing 1. Word questions to confuse the opposition 2. All questions and answers to be copied to all bidders 2. Leave questions where possible to the last possible minute 3. Cut off date for last questions 3. Leverage personal contacts 4. No personal contacts allowed ( at any level) 4. Use other meetings as excuses to clarify queries 5. Use independent “Head Hunters” to selectively interview key staff for possible positions Programme and Project Strategy Responding to an RFP Do we want the business? Have we the skills? Have we the resources? What are the risks? Time Interdependencies Contractual What are the upsides for us? What are the downsides? What are the clients like? Probability of winning? Programme and Project Strategy Evaluation principles Criteria agreed when RFP issued Weighting & scoring agreed Panel members agreed Response received in time NDA signed Correct response format Agreement to objectives and ground rules Criteria scoring Organisation and pedegree Capability and skills References Due Diligence - Financials Degree of fit with requirement Degree of risk. Fair and open procedure Target number of suppliers Beware of risks in judging on price alone Programme and Project Strategy Evaluation of tenders Supplier A Criterion Weighting Score Total Capability – Degree of fit 8 7.5 60 Track record maturity 5 6 30 Costs 8 3 24 Due Diligence 9 9 81 Confidence level 9 5 45 Programme and Project Strategy Supplier Short List process Inform successful suppliers Inform unsuccessful suppliers, post process interview if requested Perform Due Diligence checks, credit agencies etc.. Degree of fit with requirement Price in Capital & Revenue terms over 7 years Take up references Site visits On site scripted scenario demos Review RFP responses with each supplier Refine indicative costs with each supplier Issue Invitation to Offer to finalise and formalise costs Programme and Project Strategy Exercise 3: small groups Closed Book Based upon this more detailed assessment what criteria would you use in addition to the initial evaluation of tenders. What other measures would you recommend? 5 mins, 2 min presentation. Programme and Project Strategy Evaluation of short list Supplier A versus Supplier B Criterion Weighting Score Total Capability – Degree of fit 8 7.5 60 Track record maturity 5 6 30 Costs 8 3 24 Due Diligence 9 9 81 Confidence level 9 5 45 Site visits References & reliability On site scenario performance Revised costs Programme and Project Strategy Confidence to award level Procurement Process Market Research Preparation Starting Up a Procurement Issue the Request for Proposal/ Invitation to Tender Refine Requirements Specification and obtain approval Assess Submissions & short list Choose Supplier Final short list Assessment Controlled Start Controlled Progress Programme and Project Strategy Controlled Close Award Contract Notify successful supplier Notify unsuccessful Supplier Standstill period -10 days in case of appeal. Contract signature. Issue Award notice. Prepare Implementation plan – based upon indicative plan in RFP Complete follow on actions and lessons learned report and publish. Archive all process paperwork – why?. Programme and Project Strategy Programme and Project Strategy Section 11: Programme roles and responsibilities V2 Programme and Project Strategy Organising for programmes Programme board Senior Responsible Owner (SRO) Programme management office Programme Manager Business Change Manager Programme management Project Project Programme and Project Strategy Project The Programme/Project Board Responsibilities: • Appointment of key roles – Programme Manager and Change Manager • Providing direction to these incumbents • Initiating and being involved in Programme reviews • Establishing and maintaining the programme governance arrangements • Ensuring risk management is undertaken Necessary competencies: • Having positional power in the organisation and using it appropriately • Comprehension of Corporate Strategy and how the programmes fulfil it • Political awareness and stakeholder management ability • Recognising and managing key strategic risks facing the programmes Programme and Project Strategy Governance The system by which organisations are directed and controlled • • • • • Facilitates timely decision-making Provides direction and leadership Exercises control Ensures consistency Supports and facilitates issue resolution Programme and Project Strategy The role of S.R.O. • Owning the vision for the Programme and being its ‘Champion’ – providing clear leadership and direction • Securing the investment required • Personally accountable for the Programme’s outcome • Accountable for the Programme’s governance arrangements • Responsible for the Programme’s key information • Manages the interfaces with key stakeholders • Manages the key strategic risks facing the programme • Maintains the alignment of the programme to the organisation’s strategy • Commissioning and chairing reviews • Managing and supporting the Programme Manager Programme and Project Strategy The role of the Programme Mngr • Planning/designing the programme, monitoring its progress, resolving issues and initiating corrective actions • Defining the Programme’s governance framework • Ensuring the integrity of the Programme • Managing the Programme’s budget on behalf of S.R.O. • Facilitating appointments to the project teams • Ensuring that the delivery of new products from the projects meet requirements and are of appropriate quality • Managing the interfaces and dependencies between the projects in the programme • Ensuring management of the programme risks • Reporting the programme’s progress Programme and Project Strategy Types of project management office Support Admin Partner Emphasis Control Control Manage Source: CITI Group Ltd Guidance Capability Improve Programme and Project Strategy Project management office: Admin Data collector Keeps the ‘scores’ and ‘history’ Reports aggregator Supports individual projects Passive Staffed by administrators Conduit for information on current projects Reviews Secretariat Facilitator Programme and Project Strategy A Project management office: Control Information management Interpreter Focus on project delivery Interventionist Staffed by functional specialists Some authority Perform audits Conduit for current projects and reports on the ‘portfolio’ Reviews C Cost Cost Technical Time Quality Business Benefits Risk Programme and Project Strategy Project management office: Guidance Centre of excellence - agency of change Pro-active and interventionist Staffed by process specialists Supports portfolio and projects Provides training and support May ‘own’ PMs and resource management Monitors portfolios and projects, - influences project organisational performance Reviews Status Programme and Project Strategy G Project management office: Partner Source of best practices Reactive and demand-driven Staffed by people capable/competent in PM Supports business-led initiatives to improve Monitors the portfolio and maintains information on the capacity and capability Involved in establishing strategic direction Represents project management at board level Reviews Coach/trainer Portfolio Programme and Project Strategy reporting P Programme Manager competencies Programme management uses a mix of ambiguity and uncertainty reduction techniques. Competencies: lateral thinking facilitating approach negotiation motivation strategic thinking Programme and Project Strategy Project cf. Programme Management Project Metrics Programme Progress Style Issue resolution Control & efficiency Manages Accept ambiguity/collaborate Regular resources Attributes Other managers Team player Outputs Single objective Delivers Focus Politician Change Business strategy Linked to deliverables Benefits Determine deliverables Narrow, avoid change Scope Wide, change inevitable Bounded Plan Architectural Directive leader Powerful facilitator Role Programme management is NOT just ‘big project management’ Programme and Project Strategy Managing multiple communication routes Number of communication routes Programme and Project Strategy = n x (n- 1) 2 Programme communications complexities The Programme Project 1 Product 1.1 Product 1.2 Project 3 Project 2 Product 2.1 Product 2.2 Product 3.1 W O R K Project 4 Product 4.1 Product 4.2 Project 5 Product 5.1 G R O U P S Programme and Project Strategy Project 6 Product 6.1 Product 6.2 Some of the obstacles: • Possessiveness • Self-interest • Ignorance • Failure to see the ‘Big Picture’ • Lack of communications system • ‘Hoping for the best’ Programme and Project Strategy The communication plan “Success or failure of a project tends to depend on how well various members of the project team communicate with each other”. BS 6079-1:2002 Project Management Programme and Project Strategy Project Team Communication Patterns of communication lead to important consequences for project team efficiency and member satisfaction. Determined by: Number of potential channels available Equality of the communication possible Degree of centralisation/decentralisation Leavitt (1951) Programme and Project Strategy Project Team Communication Different patterns are effective for different tasks. The greater the amount of interconnectedness, the higher the general level of satisfaction of members of the group. More complex work, as found in most project teams within product or process development, is performed more efficiently in decentralised networks. Programme and Project Strategy Multiple stakeholder relationships Senior management Users Customers Suppliers Departments Subcontractors Project manager Other projects Team members Sponsor Programme and Project Strategy Programme and Project Strategy Section12: Project roles and responsibilties V2 Programme and Project Strategy Roles and responsibilities Programme and Project Strategy Who ‘owns’ the project? Project team ? The Sponsor ? The Project Manager ? Financial Stakeholders ? YES The Customers? Programme and Project Strategy ! PMP ownership Produce parts of the PMP How much? Project team Why? Where? How much? How much The Project Management Plan (PMP) What? Stakeholders Who? How much? Agrees the PMP When? Owns the PMP Consulted on the PMP Why Project Manager Sponsor Programme and Project Strategy Sponsor role Ensures benefit Owns business case Accountable for the project Mobilises management capability Generates confidence Supports the project manager Programme and Project Strategy Sponsor cf. Project Manager Sponsor: directs the project appoints the project manager ensures delivery of benefits chairs the board Project manager: creates conditions and the environment for the project to be successful employs processes, tools and techniques develops and leads the project team manages the stakeholders Programme and Project Strategy The way the Sponsor likes it! COSTS BENEFITS Programme and Project Strategy Key project roles Key Player Project Sponsor Programme Manager Project Manager Work Package Manager Team Function Initiates project, ensures that the project benefits are realised Manages interactions between projects, ensures programme benefits are delivered Ensures project meets its objective Ensures completion of work package deliverables Produces deliverables Programme and Project Strategy Project Manager competencies Decision-making Critical Thinking Skills Communication Teambuilding Project Management Technical Skills Programme and Project Strategy What it takes to be a good project manager Project Practitioners need all the skills of a regular manager, plus a lot more! Ability to perform or even excel within their own specialist area is no guarantee that they will do so in the heat of a project team Their ‘soft’ skills may even be more important than excelling in their own ‘specialist’ abilities Programme and Project Strategy Stakeholder management loop Which stakeholders shall we concentrate on managing? What stakeholder management actions do we need to plan into our strategy? Review status and iterate Implement actions Identify stakeholders Classify/Map Stakeholders project manager Agree goals and Value Criteria Source : Association for Project Management Record needs. Uncover Expectations. Assess achievability Negotiate trade-offs Programme and Project Strategy Reports back from the syndicates Programme and Project Strategy Programme and Project Strategy Section 13: Stakeholder’s interests, their WIIFMs, heuristics, CSFs, and risk appetites – and how these affect programme and project strategy V2 Programme and Project Strategy Stakeholder expectations stakeholder extended environment functional managers e.g finance clients Your project ‘business as usual’ community top management project team other projects Programme and Project Strategy Stakeholder management loop Review status and iterate Implement actions Identify stakeholders Classify/Map Stakeholders project manager Agree goals and Value Criteria Source : ‘Program management’, Michel Thiry Record needs. Uncover Expectations. Assess achievability Negotiate trade-offs Programme and Project Strategy Stakeholder map Primary Secondary High influence Joe Positive relations Tom Negative relations Ali Level of power Pam Bob Sue High Low Level of interest Programme and Project Strategy Stakeholder impacts Schismatics Gives unqualified support Allies Zealots Gives up if not supported Synergy Source: d’Herbemont & Cesar, 2001 Follows initiatives proposed Opponents Passives Unwilling to follow any initiative Mutineers Moaners Antagonism Has no personal point of view Uses power to get a deal Surrenders when not the strongest Does not care about the price which may need to be paid Programme and Project Strategy Generic CSFs Communication Project mission Senior management support Project plans Client consultation Personnel recruit select train Technical tasks Client acceptance Monitoring and feedback Source: Pinto and Slevin Trouble shooting Programme and Project Strategy Formation of success criteria Objective Business case Success criteria Requirements Stakeholder needs Context Stakeholder expectations Programme and Project Strategy Creating trust and openness Understanding their interests Being relationship focused Demonstrating integrity Programme and Project Strategy Plan stakeholder expectations Name Formal Job Title Functional responsibility goals Interview Assistant Manager Reviews all orders, responsible for daily tasks and personnel supervisors Organisation ABC Company Degree of change John Smith Status Degree of involvement Programme and Project Strategy Exercise It is a key project manager’s responsibility to create a stakeholder management plan The casework briefing material provides sufficient material for your syndicate to produce a draft stakeholder management plan Programme and Project Strategy Stakeholder management loop Review status and iterate Implement actions Identify stakeholders Classify/Map Stakeholders project manager Agree goals and Value Criteria Source : Association for Project Management What are their ‘WIIFMs?’ What is their attitude to the Record needs. programme? How will they exploit their Uncover involvement? Expectations. Assess achievability Negotiate trade-offs Programme and Project Strategy Stakeholder management loop Review status and iterate Implement actions Identify stakeholders Classify/Map Stakeholders project manager Agree goals and Value Criteria Source : Association for Project Management Record needs. Uncover Expectations. Assess achievability Negotiate trade-offs How might they contribute? How might they cause risks? How can we exploit their strengths and manage their weaknesses? Programme and Project Strategy Programme and Project Strategy Section 14: The decisionmaking process V2 Programme and Project Strategy If projects address problems ….. What IS a ‘problem’? “A deviation, or anticipated deviation, from a path to a desired outcome.” Ackoff (1981): “… a decision-making individual or group has alternative courses of action available, [….] the decisionmaker has some doubt as to which alternative should be selected.” Programme and Project Strategy Which approach? Fast? Carefully? Frugally? ???? Programme and Project Strategy Six-stage decision-making wheel Identify and select problem Evaluate preferred option 6 Implement preferred option 1 2 5 4 Select and plan preferred option Analyse problem 3 Generate potential options Programme and Project Strategy Source: Tom Docker, CITI Group Project strategy decision-making The programme/project practitioner’s role is: To produce insight and promote creativity to help stakeholders make decisions that will lead to project success Programme and Project Strategy Advantages of structured decision-making Reduces conflict Increases the likelihood of perceived success Creates and maintains support Is auditable and defensible Aids difficult judgements – such as high stakes, limited resources, or overlapping jurisdictions and other similar complexities Helps improve consistency of results Source: www.structureddecisionmaking.org Programme and Project Strategy Some decision-making influences W.I.I.F.M. Values orientation (or decision making style) Bounded rationality Heuristics Organisational culture Level of interest ‘Regret’ level Programme and Project Strategy WIIFMs Altruism Intellectual challenge Personal gain Other psychological needs Programme and Project Strategy WIIFMs Altruism Intellectual challenge Personal gain Other psychological needs Programme and Project Strategy WIIFMs Altruism Intellectual challenge Personal gain Other psychological needs Programme and Project Strategy Values orientation Cognitive complexity Logical Tolerance for ambiguity Analytical Conceptual Enjoys problem-solving Wants best answer Wants control Uses considerable data Enjoys variety Is innovative Uses careful analysis Is achievement-oriented (Needs challenges) Directive Need for structure Relational Has a broad outlook Is creative Is humanistic/artistic Initiates new ideas Is future-orientated Thinking (ideas) (Is independent and wants recognition) Behavioural Expects results Is aggressive Acts rapidly Uses rules Uses intuition Is verbal Is supportive Uses persuasion Is empathetic Communicates easily Prefers meetings Uses limited data (Needs power) (Needs affiliation) Task/technical People/social Values orientation Programme and Project Strategy Doing (action) Bounded rationality Many decisions in projects involve significant complexity and the human brain is incapable of making a rational decision where such complexity is involved. The essential aspects can be compromised as the decision-makers oversimplify the process, operating within the confines of their bounded rationality. From: Simon, 1955 Programme and Project Strategy Human heuristics “The recollection of experiences that we reference when making assessments in situations of uncertainty with little supporting hard data.” Source: Redfern, 2006 Programme and Project Strategy The five key heuristics Availability Representativeness Anchoring Adjustment Affect Source: Redfern, 2006 Programme and Project Strategy Availability Do we have an available recollection? How does it influence our judgement and actions? Have we seen such a situation before? Programme and Project Strategy Representativeness Does this remind you of another product? Programme and Project Strategy Representativeness But is it comparable? Programme and Project Strategy Anchoring (and adjustment) How far can you drag yourself (or be dragged) from your ‘natural’ risk appetite position? Programme and Project Strategy Anchoring (and adjustment) Programme and Project Strategy Affect Human emotions occurring rapidly and involuntarily in response to a stimulus can cause sufficient bias to overcome cognitive judgement Programme and Project Strategy The influence of heuristics in human decision-making Comfort-zone bias: Doing what is comfortable Motivation bias: Motivations and incentives can bias judgements adversely Errors in reasoning: Flawed reasoning results in incorrect conclusions Groupthink: Group dynamics cause distortions to the reasoning processes Perception bias: Beliefs are distorted by faulty perceptions Programme and Project Strategy Some known decision-making traps The ‘Anchoring’ or ‘Satisficing’ trap – where the mind gives disproportionate weight to the first information it receives The ‘Status quo’ trap – a bias towards decisions that maintain the status quo The ‘Confirming evidence’ trap – where supporting evidence is gathered and contradictory information is avoided Programme and Project Strategy The influence of organisational culture The banking business – then and now The pharmaceutical industry – Schizophrenic? The military hardware industries Programme and Project Strategy Decision-maker’s level of interest If the ‘action’ is distant, the stakeholders will be less attentive! Programme and Project Strategy Decision-maker’s level of interest If the outcome of the action could obviously threaten them, then the stakeholders are much more attentive! Programme and Project Strategy Degree of change Decision-maker’s level of interest Degree of involvement Programme and Project Strategy ‘Regret’ significance Doing well and trying to do better? Can afford to lose – with alacrity! Programme and Project Strategy ‘Regret’ significance Gambling on success? Affordability of losing? Programme and Project Strategy ‘Regret’ significance Disastrous ! Programme and Project Strategy ‘Regret’ significance Destitution? Programme and Project Strategy Decision trees Problem Install new server or extend existing one? 20% Stay with existing server ?? £0 30% £40K 50% £80k Impacts 10% Which option carries least risk? Swap to new server Options ?? 20% 70% £20k £50k £30k Programme and Project Strategy Stakeholder management loop Review status and iterate Implement actions Identify stakeholders Classify/Map Stakeholders project manager Agree goals and Value Criteria Source : ‘Program management’, Michel Thiry Record needs. Uncover Expectations. Assess achievability Negotiate trade-offs Programme and Project Strategy Programme and Project Strategy Making it real: Converting strategy to action in an actual organisational environment Programme and Project Strategy The starting point An agreed strategy, and a vision for the future direction of the organisation - how to turn it into reality? Programme and Project Strategy Plan for the session Preparing the ground A real world example Conclusions: lessons and application Programme and Project Strategy Preparing the ground Programme and Project Strategy Agreement and backing Do we have real agreement? What’s the motivation? Is anyone against it? Do senior management realise how much time & effort it will actually take? Programme and Project Strategy Organisational capability Has the organisation ever done anything like this before? What project and programme skills – and resources – are there? Will they be made available? Programme and Project Strategy Authority and responsibility Are there clear roles – and clear accountabilities? Is there a clear sponsor/director in the senior management team? Programme and Project Strategy Is it a project? Programme and Project Strategy Project management lifecycle Initiate Plan Do Close Clear end objective Fixed endpoint Linear (Start Finish) Tasked with delivering specific products or results Programme and Project Strategy Programme management D E D R E D R E D R D E D D To be As is D E Transition state D Transition state R R D E D Less clarity and/or greater rate of change Repetitive/cyclical A journey… with ‘waypoints’ where the direction and destination is reviewed, and may be varied Programme and Project Strategy Stakeholder engagement A critical issue Programme and Project Strategy A case example Programme and Project Strategy Remploy: the history Set up following the Second World War, to employ disabled ex-servicemen Subsidised by government Considered a ‘national institution’ by people throughout the country Programme and Project Strategy A highly diverse business Programme and Project Strategy ... throughout the UK Programme and Project Strategy The background (1) Loss per disabled employee £20k per annum Cost of finding a disabled person a job in mainstream £5k Aspiration to help many more people into work Disability opinion formers passionately advocating mainstream employment Programme and Project Strategy The background (2) National Audit Office says: “Remploy needs to re-engineer to withdraw from loss making businesses” Remploy trade unions determined to oppose any closures and redundancies (even if voluntary) Bob Warner, former CEO - presentation to APM Programme and Project Strategy A new direction ... etc Programme and Project Strategy The strategy No compulsory redundancy and promise of employment in the mainstream, on current terms and conditions Propose quadrupling of number of disabled people supported into the mainstream to 20k per annum in 5 years Propose to reduce number of factories by 43 (50%) Programme and Project Strategy ... Modernisation Changing economic environment ‘National institution’ 60 years of stable history No change capability Transformed organisation ‘Fit for future challenges’ Modernisation New Strategic thinking Reduced costs Commercial management Programme and Project Strategy Controversy Programme and Project Strategy How would you do it? Challenges? Risks and issues? How might you structure a solution? Programme and Project Strategy Programme and Project Strategy Key elements of the solution Programme and Project Strategy Clarify the benefits Financial Strategic Programme and Project Strategy Engaging stakeholders Vital to success! What are the key stakeholder groups? How should we engage with them? Programme and Project Strategy Questions Project, programme or portfolio? How to organise/structure? Programme and Project Strategy Setting up the projects Take key products from Stage 1 Merged and closed factories Transferred and outplaced people How should we set up projects to do this? Programme and Project Strategy Developing the capability We don’t have the capability or experience to do this highlighted by report to Parliament by PwC How can this be addressed? Programme and Project Strategy Governance How can we give authority and accountability to a change programme of this kind? What governance structures and processes are needed? Programme and Project Strategy Programme/project structure Steering Group (Programme Board) Programme Director Delivery Manager PSO Functional Functional Functional Heads Heads Finance Heads Finance, IS, Property... Project Support Mgr Project Project Project Project Project Managers Project Managers Managers Managers Managers Managers Project Support Mgr Project Project Project Project Project Managers Project Managers Managers Managers Managers Managers Programme and Project Strategy Consultancy staff Steering Group (Programme Board) Programme Director Engagement Director Planning Consultants Delivery Manager PSO Functional Functional Functional Heads Heads Finance Heads Finance, IS, Property... Project Support Mgr Project Project Project Project Project Managers Project Managers Managers Managers Managers Managers Project Support Mgr Project Project Project Project Project Managers Project Managers Managers Managers Managers Managers Programme and Project Strategy A PMO/PSO ‘One truth’ reporting & forecasting Guidance & discipline Standard processes Standard tools & templates ... ‘instant’ process & discipline Programme and Project Strategy Product based planning Why is it important? Programme and Project Strategy What else? Programme and Project Strategy A standard approach to project management Monitor & control Initiate Mission (Mandate) Plan Do Plan Baseline Products Close Acceptance & Review Programme and Project Strategy Professional project management oversight Assessing & developing capability Categorising projects Providing assurance Defining project management approaches Assigning project managers Educating senior managers ... exercising professional judgement Programme and Project Strategy Senior management support Respect for project management judgement Allocation of resources Support for professionalism Clear policy decisions ... an effective working relationship based on mutual respect Programme and Project Strategy Adequate corporate systems HR Finance IT Commercial & contracting ... etc Programme and Project Strategy Logistics The result All objectives achieved on time and within budget, including: - cost savings of £148m + £30m - enabled a strategic change of direction Minimal stakeholder/media controversy Won APM Programme of the Year Award 2009 Programme and Project Strategy What can be learnt? Programme and Project Strategy Section 15: Benefits realisation planning Programme and Project Strategy Benefits management Choosing the ‘right’ things to do Doing those things right Achieving the benefits Programme and Project Strategy The Benefits Management Process Vision statement Establish and maintain a Benefits Management Strategy Identify and map benefits Plan benefits realisation Execute benefits realisation Review and evaluate the realisation Optimise and look for other benefits Source: O.G.C. ‘Managing Successful Programmes’ Programme and Project Strategy Benefits realisation is: …. a structured, repeatable process applied to corporate initiatives to maximise the likelihood of achieving the expected business benefits. Attracting the best employees 1 million new passengers next year? 99.997% reliability Programme and Project Strategy Perspectives on Benefits realisation Traditional project success measures Project outPUTS on time, and to cost Programme management success measures are business outCOMES: Organisational Benefits Strategic and financial gains Performance improvements Programme and Project Strategy BRM process with review points R6 Identify vision and Objectives R1 Manage performance Identify Benefits and changes Engage R5 R2 Stakeholders Manage Initiatives Define Initiatves R4 Optimise Initiatives R3 Source: Bradley 2010 Programme and Project Strategy The benefits management process Process Benefits Management Process Benefits concept Benefits management Benefits realisation Linking the project to the business Linking the benefits required to the scope defined Tracking benefits delivery following project delivery Knowing ‘what’ has to be delivered and ‘how’ it will be delivered Knowing ‘what’ has been delivered and that it matches the ‘why’ ‘Why’ Checklist ‘How’ Checklist Benefits Hierarchy Roadmap Decision Matrix Benefits Realised Checklist Knowing ‘why’ the project is needed Tools Benefits Mapping Tool Benefits Matrix Benefits Scoring Tool Benefits Specification Table Business Case Tool Scope Definition Tool Business Environment Checklist Benefits Influence Matrix Business Case Template Benefits Tracking Tool Sustainability Checklist Benefits Realisation Planning Tool Benefits Realisation Risk Tool Customer Satisfaction An alysis Tool In Place – In Use An alysis Tool Programme and Project Strategy Source: Melton, 2009 Who is responsible for B.R.M. ? . . . . . The project manager(s) ensure that the appropriate products (outputs) from their projects are delivered to specification and on time The programme management team ensure that those products are integrated into operations The S.R.O. (and senior management governance team) ensure that those innovations achieve fulfilment of corporate strategy And who else ??? Programme and Project Strategy Programme and Project Strategy Section 16: Summary Programme and Project Strategy The Enterprise Programme Management framework Programme Architecture: “The establishment of Strategic Management Strategic portfolio management Programme delivery management leadership, structures, team dynamics, and support mechanisms that enable the delivery of programmes and projects” Change Architecture: “is concerned with the human considerations of those in the organisation who will be impacted by programmes and projects – beyond the delivery teams” Project management Source: Williams and Parr, ‘Enterprise Programme Management’ Programme and Project Strategy Benefits - impacts - deliverables achieve Vision trigger Benefits cause Impacts produce Deliverables Programmes Projects Programme and Project Strategy Programme Initiation – Scoping Document Programme Title aqua regia total sulphate Responsibilities. Sponsor: Jason Rogers (lab Manager) Project manager: Darren Lewis Problem / Purpose- a high number of insufficient samples are being reported for total sulphate. Turnaround time needs to be improved. Objective- perform routine total sulphate analysis by ICP OES using an aqua regia extraction in January 2008. Reporting results will be through the workflow manager and LABS data management systems and must meet the MCERTs accreditation. Critical Success Factor 1. MCERTs accreditation obtained 2. smooth transition with regards to reporting results to customers 3. quality of results maintained if not improved. 4. cost reductions. Primary Products 1. quality management system 2. MCERTs accreditation 3. instrument method 4. method documentation 5. I.T. specifications 6. final report. Start Date End Date Budget / Effort 1 September 2007 31 December 2007 Benefits / Impacts 1. Cost savings can be made 2. turnaround time will be improved. 3. less insufficient samples will be reported. Risks 1. Obtaining MCERTs accreditation is time consuming and expensive and is not guaranteed 2. Customers may object to the change in methodology. 3. New method may be more problematic than the old method Programme and Project Strategy An acceptance test Functional Non-functional Requirement Met Effective Scale Test Worst Plan Best 1.1.1 3 Accurate % Reduction in number of internally-originated changes 5% 10% 15% Independent Time Weeks to solo operation 26 20 15 40 Efficient Count Number of successful projects run in each year 7 10 15 5 1.1.2 1.2.1 3 + Programme and Project Strategy Now The underpinning model Strategic Intent The project Objective Constraints CSFs Products (Deliverables) Programme and Project Strategy Deriving projects from programmes Impacts Benefits Products Heightened awareness New passengers New income Advertising campaign Awareness project Faster trains New trains project More More frequent frequent trains trains new services Better signalling Additional income (Source: CITI Group) More frequent passengers More money from existing passengers Projects Increased Increased speed speed limit limit Better rails More ticket inspectors Programme and Project Strategy Infrastructure Upgrade project Recruitment & training project Projects deliver outputs, Programmes deliver outcomes, outcomes realise benefits Benefits management Choosing the ‘right’ things to do Doing those things right Achieving the benefits Programme and Project Strategy Benefits management Identify benefits The identification of the benefits at an organisational level and the monitoring and realisation of those benefits Structure Plan benefit realisation Executing BRP Programme and Project Strategy The PMA Programme and Project Strategy Tackling the Assignment Understand and identify key tasks in the question Ask the tutor for clarification Draft a structure Identify information requirements (e.g., interviews) Plan your time Research the literature Use references to give authority and credibility Ensure you are using the module material Data collection /investigation Structure ideas Ensure a logical progression of the argument Trail of evidence leading to sensible conclusions Critical analysis eg How does reality relate to the theory Discussion of options and final selection Write Improve Programme and Project Strategy Justify Analyse Review Understand the question Assess ? Discuss Comment Compare Analyse – identifying what factors are important & how they interact Discuss – A reasoned examination of the subject, with consideration of all aspects & arguments “for” and “against” • Assess/evaluate – to “weigh-up” strengths & weaknesses & draw your own conclusions • Review – to survey information/data on the subject. Will often be a preliminary step, to be followed by analyse for example • Comment – state your views on a subject, supported by evidence • Compare and Contrast – set items side by side & examine the similarities & differences • Justify – to prove a statement, decision, idea or theory is valid with evidence to support it Programme and Project Strategy Using evidence to build an argument Evidence? Wrong The productivity of UK companies is very poor. Obviously more investment in plant and machinery is required. Right Conclusion, but where has it come from The long term decline of the UK economy is demonstrated by the relative productivity gap found in UK companies in comparison to those in the USA, Japan, Germany and France. Maddison (1987) calculated this productivity gap (as measured by output per employee) to range between 10% to 30% advantage for these other countries in comparison to the UK. He also established that these countries tended to invest more in fixed assets compared to the UK and from the study by De Long and Summers (1992) a positive relationship was shown to exist between productivity performance and fixed asset investment. Thus one way in which this productivity gap could be closed is by encouraging more investment by firms in the UK. Of course this begs the question as to how to get UK firms to increase their investment intentions…. Credible evidence based on looking at many companies. Argument logical and referenced Programme and Project Strategy Sources of Information Module notes Library i.e., books and journals Internet (NB credibility of source) Meetings Discussions with individuals Ensure non-original work is referenced Avoid plagiarism Programme and Project Strategy Avoiding Plagiarism DO Read and understand the document Write about it in your own words Reference it correctly DO NOT Copy it word for word Quote large sections of it Fail to reference the source of the ideas Programme and Project Strategy References – Numerical System The most important pre-requisite for successful implementation is the commitment of senior management and shop floor operators [1]. This ensures the willingness to try to make the new procedures successful. Reference [1] Taylor, F. Implementing New Systems, International Journal of Production Technology, Vol. 4 No. 1 July 1995. References numerically in the order they appear in the text Programme and Project Strategy References – Harvard System The most important pre-requisite for successful implementation is the commitment of senior management and shop floor operators (Taylor, 1995). This ensures the willingness to try to make the new procedures successful. Reference Taylor, F. Implementing New Systems, International Journal of Production Technology, Vol. 4 No. 1 July 1995. List references alphabetically by author and date Programme and Project Strategy References – The Web Due to the increase of web based publishing a standard method of referencing web pages has emerged (Shields and Walton 1998) Reference Shields, G & Walton, G., Sep 1998, Cite the right! [Online]. University of Northumbria. http://www.unn.ac.uk/central/isd/cite [2 Sep 1999] Author, copyright date, title of article, page publisher, web address, last date accessed Programme and Project Strategy Structure Title page Include PMA question as given Executive summary List of contents, tables, figures & appendices (where applicable) Acknowledgements (if appropriate) Author’s Declaration Main body of the answer Introduction (You, Your company, Subject area) Structured as appropriate to the topic & the question Conclusions and Recommendations References/bibliography Appendices Only to be included where necessary Programme and Project Strategy Feedback Percentage mark Subject to review by the exam board Feedback Comprehension (70%) Interpretation, relevance, factual content, insight and originality, critical analysis Effort (15%) Use of specific examples and reference material, appropriate length Presentation (15%) Professional layout, logical structure, diagrams, grammar, spelling, legibility, contents, page numbers, references Specific Comments Feedback sheet Programme Annotated script and Project Strategy Tips for success Try and get started ASAP Plan it! – it’s a project in itself! Programme and Project Strategy Late Submission 3% penalty per working day Maximum of 14 days late, thereafter will only count for Module Attendance Credit Your responsibility to ensure PMA is submitted on time (before 9.00am on the due date). Programme and Project Strategy Thank you ! Programme and Project Strategy