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This presentation provides an overview of the role and value of program management.
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Program Management & Leadership
A Point of View
By Tom Tiede
Program Management & Leadership
Key points highlighted in this presentation:
2
• A program can consist of multiple phases, projects, and work streams
• The primary differences between Program Management and Project Management is the depth of detail and scope of responsibility
• The value of Program Management is to provide leadership, simplify complexity, reduce risk, and achieve results
• Complexity and risk of a program are difficult to avoid when seeking significant change
• And, complex projects often fail when you fail to manage complexity…and, the cost of failed expectations is higho A common pitfall is the failure to align project roles
with specific names, specific deliverables, clear time commitments, and, ultimately, results
o Another common pitfall is misunderstanding the need and value of aligned information
• Success of a complex DC implementation is difficult unless managed as a program with strong leadership, structured communication, and cross-functional methodologies and deliverables
• A Program Management Office (PMO) requires both the “right brain” soft skills of Program Leadership and the “left brain” hard disciplines of Program Coordination
• A Program Leader acts more like a coach than a cop
• And, we apply soft skills, hard disciplines, and proven tools to avoid common pitfalls and achieve business results
• The degree of Program Management needed is proportional to the complexity of the business solution and business stakeholder group
• So, you cannot take a “one size fits all” approach… instead, you tailor our approach based on need
• The overall approach is simple: Initiate, Plan, Manage, Close
• And, the “secret sauce” is a rigorous communication process to avoid common pitfalls
A program can consist of multiple phases, multiple projects, multiple work streams, or a combination of all of them.
Program Management & Leadership
ProgramNew DC
PhaseStrategy
PhaseDesign
PhaseImplementation
ProgramDC Network Rollout
ProjectDC1
ProjectDC2
ProjectDC3
Program
DC Implementation
Work Stream
Operations
Work Stream
Building
Work Stream
MHS
Work Stream
Systems
Work Stream
People
Multiple Projects
Multiple Phases
Multiple Work Streams
Illustrative
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The primary differences between a Program Manager and a Project Manager is the depth of detail and scope of responsibility.
Program Management & Leadership
Scope Detail
Broad
GranularNarrow
Aggregate
ProgramManager (examples)• Multiple phases• Multiple projects• Multiple work streams
ProjectManager (examples)• Single phase• Single project• Single work stream
ScheduleBudget
DeliverablesCoordinationIssues & Risks
4
UltimateGoal
The value of Program Management is to provide leadership, simplify complexity, reduce risk, and achieve results (which is the ultimate goal).
Program Management & Leadership
ProvideLeadership
Bring Structure& Toolkit
Focus onObjectives
IntegrateSchedules
AlignTeams
Establish Accountabilities
ProvideCoaching
Streamline Communication
MaintainVisibility
ManageQuality
ResolveIssues
MitigateRisks
FacilitateChange
AchieveResults
Value of Program
Management
5
Complexity and risk of a program is difficult to avoid when seeking significant change.
Program Management & Leadership
As Project Complexity and Risk Increase…
Breadth inScope
Size inScale
Inexperience of Team
Magnitude of Change
# of Stakeholders
Competing Initiatives
… so Does the Need for Increased Management,
Visibility, & Control
Complex projects often fail when you fail to manage complexity.6
What are the costs and risks of failed expectations?
Program Management & LeadershipPerform
ance
Time
PoorStart Up
DesiredSteady State
CurrentState
Implementation “J-Curve”
“Go-Live”
UnexpectedSteady State
PerformanceGap What are the costs?
• Higher implementation costs?• Delayed or lower business results?What are the risks?• Lost customers?• Tarnished reputations?
DesiredStart Up
Clearly, the stakes are high.7
This example scenario depicts the $ impact of labor inefficiency and lost gross profit when performance lags during a start up.
Program Management & Leadership
Example J Curve Month -2 Month -1 Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Total Loss ($MM)
Labor Inefficiency % 0% 0% 40% 30% 20% 10% 0% 0%
Loss Sales Opportunity 0% 0% 20% 15% 10% 5% 0% 0%
Labor Inefficiency $0 $0 ($0.24) ($0.18) ($0.12) ($0.06) $0.00 $0.00 ($0.60)
GP on Lost Sales $0 $0 ($1.25) ($0.94) ($0.63) ($0.31) $0.00 $0.00 ($3.73)
Cumulative Loss $0 $0 ($1.49) ($2.61) ($3.35) ($3.73) ($3.73) ($3.73) ($3.73)
Example Scenario: DC Labor
FTEs 250
$/Hour 15
Hours/Month 160
Monthly Labor $ $600,000
Example Scenario: Gross Profit
Annual Company Revenue $1,200,000,000
Gross Profit @ 25% $300,000,000
Distribution Centers (DCs) 4
Gross Profit (GP)/DC $75,000,000
GP/DC/Month $6,250,000
How do you minimize this loss?
“Go Live”
Current State Steady State
8
Common reasons programs fail or under-perform:
Program Management & Leadership
Categories Common Pitfalls
Scope & ObjectivesUnclear, misunderstood, differing points of view, moving target, creeping, lack of change control, not measured (or measurable), results not tracked
Approach & MethodologyUnclear, siloed, misaligned across teams (e.g. gaps or redundancies), not followed, too rigid, too linear, lack of continuity across phases, ignoring risk
Deliverables & QualityUnclear, misaligned (e.g. gaps or redundancies), too detailed, too high-level, lack of ownership, incorrect, inconsistent quality, late
Roles & ResponsibilitiesUnclear, too narrow or too broad in scope, not communicated, not assigned, not filled, misaligned, insufficient skills, lack of accountability
Planning & SchedulingUnclear, incomplete, too aggressive, not integrated, too high level, too detailed, progress not tracked, assumes perfection, no contingency
Budgeting & Cost ControlUnclear, under-estimated, not tied to business case, lack of visibility, lack of financial control, no contingency
Knowledge & ExperienceLimited, not shared, not developed during project, not confirmed, lack of empowerment, lack of continuity across phases, incomplete transition
Issues & Resolution Unclear, unknown, lack of owner, lack of progress, linger too long
Communication & VisibilityUnclear, siloed, not targeted or tailored to audience, too much equals noise, inaccurate, incomplete, hiding or delaying unpleasant news
Priority & SponsorshipUnclear, competing initiatives, insufficient stakeholder & organizational awareness, change in business priorities, change in executive sponsors
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As an example, a common pitfall is the failure to align project roles with specific names, specific responsibilities, time commitments, and results.
Program Management & Leadership
Roles(Organization Chart)
Time(Resource Plan)
Responsibilities(RACI Chart)
How much time is being allocated to each team member?• Resource Name • Hours on Project by Time Period
Have they been assigned specific responsibilities and are they qualified to do the work?• Specific Responsibility by Name• Deliverables expected by Name
Who is on the project?• Diagram of Roles and Names• Project Reporting Structure
A name should appear in all 3 corners of this
triangle
Results
Are they getting the work done on time and with good quality?• Status reporting• Quality reviews
Individuals need to be accountable for
results
10
Another common pitfall is misunderstanding the need and the value in aligning the flow information across the program.
Program Management & Leadership
Alignment of Inform
ation
The Status Report provides weekly information to project leadership for ACTION
The ADRA & the Integrated Schedule are the repositories of project information
Leaders need consistent and correct information to DIRECT and CORRECT
Meeting Notes & Daily Discussions provide the input to support the ADRA & Schedule
ProgramLeadership
CompanyLeadership
Project/Program Status Reports
Dashboard of Projects & Programs
Actions/Issues, Decisions, Risks, & Assumptions Log
(ADRA)
Discussions
Integrated Project/Program
Schedule
Meeting Notes
11
Another common pitfall is the failure to organize as a fully integrated program. Success is difficult if managed as a series of independent activities and siloed work streams (as depicted below).
Program Management & Leadership
Typical DC Implementation Activities
Illustrative
12
A more successful approach is to manage complex implementations as a program with strong leadership, structured communication, and cross-functional methodologies.
Program Management & Leadership
Cross Functional Planning, Scheduling, & Alignment on Roles & Responsibilities
Integrated Detail Design of Building, Equipment, Systems, Operations, & Organization
Itemization, Purchasing, & Reconciliation of Sourcing Responsibilities
Integrated Testing & Issue Resolution
Integrated Training & Skill Building
Deployment Planning & Operational Support
Full Transition & Achievement of Anticipated Business Results
Cross Functional Schedule Coordination, Issue Resolution, & Communication
Initiate/Plan
Design/Select
Procure
Test
Train
Deploy/Support
Realize
Build
Illustrative
13
A Program Management Office (PMO) requires both Program Leadership and Program Coordination.
Program Management & Leadership
Program Leadership:Responsible for leading the overall program and the team of individual work stream leaders
Program Coordination:• Communication – program level status reporting, issue
resolution, risk planning, & knowledge management• Program Schedule - integrated schedule maintenance &
coordination across work streams• Financial Management – program budget maintenance,
monitoring, & financial reporting
Program management is a structure often consisting of more than one individual.
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Illustrative
Program Management Leadership and Coordination are like two sides of the brain that naturally interact in order to be effective.
Program Management & Leadership
Left BrainLogicFactsFiguresSequence
Right BrainEmotionIntuitionCreativity
Holistic Thought
ProgramCoordinationTools & StructurePlans & Schedules
Roles & ResponsibilitiesDeliverables & Progress
Activities & IssuesMeetings & Action Items
Notes & Reports“Laptop” Focused
ProgramLeadership
Clarity & ConvictionKnowledge & ExperiencePresence & Context
Creative & Forward ThinkingHolistic & Longer Term ViewCoaching & Team BuildingAccountability & Results“People” Focused
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Who is a Program Leader?
Program Management & Leadership
Cop or Coach?
Carrying a Law Book or a Playbook?
A Program Leader is more like a coach responsible for developing a solid game plan and leveraging the skills of the team toward the accomplishment of a
challenging but worthy goal.16
Great coaches are effective leaders because they master the hard disciplines and soft skills needed to achieve results.
Program Management & Leadership
“Hardware” of Leadership “Software” of Leadership
Instilling a disciplined & proven approachClarifying everyone’s assignments
Building skills through practice & repetitionPreparing for the unexpected
Constructing the playbook & game plan
Crafting a creative & long term visionLeveraging talent & building a winning team
Demanding accountability of everyoneCalling the right plays at the right time
Focusing on the ultimate goal17
The approach to Program Management is to provide the leadership, discipline, and foundational principles and tools needed to avoid common pitfalls and achieve results.
Program Management & Leadership
Change Management
Program Quality Assurance
Risk & Issue Management
Financial Management
Program Schedule Management
Cross Functional Methodology Alignment
Communication & Knowledge Management
Program Organization Structure
Foundational Structure of Program Management Principles & Tools
Program Management:• Provides structure & discipline• Establishes expectations• Focuses on integration & communication
• Leverages skills• Mitigates risk• Drives results
Business Case Results
Each Project or Work Stream:• Focuses on individual responsibilities & interdependencies
• Aligns with program structure & objectives
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Business Solution Complexity
Business Stakeholder Complexity
A
B
C
DLow Degree of Complexity
High Degree of Program Leadership
High Degree of ProgramCoordination
High Degree of Coordination & Leadership
The degree of Program Management needed is proportional to the complexity of the business solution and business stakeholder group.
Program Management & Leadership
EquipmentSystemsOperationsScheduleExperience
Magnitude of Change# of Stakeholders
Alignment across LeadersAvailability of Resources
You cannot take a “one size fits all” approach…instead, you tailor your
approach based on need
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Simplify the Program Management process by breaking it into four basic phases.
Program Management & Leadership
Program Lifecycle
Initiate(Pre-Kickoff)
Plan(Post-Kickoff)
Manage(Primary Effort)
Close
Program Phase Objectives
• Launch the initiative• Confirm scope, objective, approach, deliverables, and business case• Prepare program materials and begin to organize the team for success• Set individual expectations across the initial team prior to kick-off
• Specify the schedule, deliverables, dependencies, roles, and responsibilities• Establish the structure for each work stream and cross-functional team• Orient new team members and establish the communication plan • Identify project risks and mitigation plans
• Establish a disciplined rhythm and maintain project momentum• Communicate on a consistent and effective manner• Maintain a high standard for quality deliverables and financial control• Mandate accountability across each project team member and leader
• Complete and confirm transition to the operations and support team• Confirm expectations and measurable results are met or exceeded
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The “secret sauce” to effectiveness is a rigorous communication process across work streams and throughout the lifecycle of the program.
Program Management & Leadership
Initiate
(Pre-Kickoff)
Plan
(Post-Kickoff)
Manage
(Primary Effort)
Close
(Post Go-Live)
Initiate
(Pre-Kickoff)
Plan
(Post-Kickoff)
Manage
(Primary Effort)
Close
(Post Go-Live)
Program ManagementLifecycle
The intent is to avoid common pitfalls by ensuring a high degree of communication, understanding, and accountability across teams and across phases of the program.
Program Management Deliverables Initiate Plan Manage Close
Program Start-up Checklist Complete Validate/Complete
Program Schedule Create Roadmap Integrate Detail Maintain/Communicate Confirm Completion
Program Organization, Roles, & Responsibilities Work Stream Leads All Maintain/Communicate Confirm Completion
Program Orientation & Logistics Communicate Communicate Orient New Members Roll off Team
Contact List Initial Contacts Broaden List Maintain/Communicate
Program Kick Off & Workshops Prepare Conduct
Actions, Decisions, Risks, Assumptions (ADRA) Prepare Template Populate Maintain/Communicate Confirm Completion
Business Case Review Confirm Monitor/Communicate Assess Results
Communication Plan Assess Create Maintain/Communicate Communicate Close
Program Charter Prepare Populate Maintain/Communicate
Program & Work Stream Status Reports Prepare Template Populate Communicate Confirm Completion
Risk Assessment Validate Update Maintain/Communicate
Steering Committee Report Prepare/Communicate
Quality Assurance Plan Assess Prepare Facilitate/Assess Validate
Project Budget Validate Update Maintain/Report Confirm/Close
Change Management Plan Evaluate Facilitate/Socialize Complete Transition
Program Close Checklist Communicate Validate/Complete
Checkpoint Reviews
21
Program Management & Leadership
A summary of key takeaways for you from this presentation:
22
• A program can consist of multiple phases, projects, and work streams
• The primary differences between Program Management and Project Management is the depth of detail and scope of responsibility
• The value of Program Management is to provide leadership, simplify complexity, reduce risk, and achieve results
• Complexity and risk of a program are difficult to avoid when seeking significant change
• And, complex projects often fail when you fail to manage complexity…and, the cost of failed expectations is higho A common pitfall is the failure to align project roles
with specific names, specific deliverables, clear time commitments, and, ultimately, results
o Another common pitfall is misunderstanding the need and value of aligned information
• Success of a complex DC implementation is difficult unless managed as a program with strong leadership, structured communication, and cross-functional methodologies and deliverables
• A Program Management Office (PMO) requires both the “right brain” soft skills of Program Leadership and the “left brain” hard disciplines of Program Coordination
• A Program Leader acts more like a coach than a cop
• And, we apply soft skills, hard disciplines, and proven tools to avoid common pitfalls and achieve business results
• The degree of Program Management needed is proportional to the complexity of the business solution and business stakeholder group
• So, you cannot take a “one size fits all” approach… instead, you tailor our approach based on need
• The overall approach is simple: Initiate, Plan, Manage, Close
• And, the “secret sauce” is a rigorous communication process to avoid common pitfalls
Thank You!
23