Programme Management
for Owner Teams
a practical guide to what you need to know
van Heerden, Steyn & van der Walt
Copyright © Owner Team Consultation, 2015
Programme Management for Owner Teams
1. An introduction to programme management
1.
About the book
2.
What is a programme?
3.
What is an owner team?
4.
Introducing the programme management model
5.
Typical challenges on programmes
6.
Governance on programmes
2. Unpacking the sequential steps of a programme
1.
Shape
2.
Plan
3.
Organise
4.
Control
5.
Launch
6.
Review
3. Unpacking the programme life-cycle essentials
1.
Lead
2.
Nurture
3.
Engage stakeholders
4.
Align
5.
Closure
Jurie Steyn
Freek van Heerden
1
An Introduction to
Programme Management
Copyright © Owner Team Consultation, 2015
Yet another book on project management?
• No. We assume that the reader already has a working knowledge of
project management;
• Projects and programmes are very different things and require a
different approach;
• There are very few books on programme management on the market;
• There are no programme management books written from the
perspective of the owner organisation;
• The 3 authors all spent most of their careers in owner organisations
and involved in projects and programmes, and;
Copyright © Owner Team Consultation, 2015
Unique aspects of the book
• The book is in the format of a practical guide for the owner team
• Comprises 3 sections:
• Programme management in context
• Six sequential steps for managing a programme
• Programme life-cycle essentials
• The structure closely follows our programme management model
• A single case study is used throughout the book to illustrate the
concepts
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What is a programme?
•
A programme is a “group of related projects, managed in a
coordinated way to obtain benefits and control not available
from managing them individually” (PMI, 2013)
•
Programme management is the coordinated organisation,
direction and implementation of a group of related projects
and activities that together achieve a specific outcome and
realise benefits that are of strategic importance
Failure of any one of the sub-projects will
undermine the success of the programme
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What is an owner team?
The owner organisation is the organisation or entity that will own,
operate and benefit from the result of successful project or
programme execution. The owner organisation executes projects
and programmes to meet specific business objectives.
The owner team is part of the owner organisation and is the team
accountable for executing a project or programme and ensuring
that business objectives are met.
Programme owner teams rarely retain the power to control the
outcome of their projects and programmes, and readily give that
Copyright © Owner Team Consultation, 2015
Programme Management Model
Lead
Align
Nurture
Lead
Nurture
Nurture
SHAPE
CONTROL
LAUNCH
ORGANISE
PLAN
REVIEW
Life-cycle essentials
(Concentric circles)
Six sequential steps
(6-bladed propeller)
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Typical challenges on programmes
Managing the shaping process to
fix the programme scope
Structuring an effective owner
programme management team
Ensuring focus on the business
objectives
Keeping internal stakeholders
aligned and informed
Keeping the programme team
motivated and engaged
Ensuring effective programme
governance
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Why Governance?
Corporate governance
practices are built on the
premise that the leaders of
companies have an
obligation to be fair,
transparent, accountable
and responsible in their
conduct toward
shareholders and civil
society.
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Governance framework
Programme governance refers to a framework that
sets out the structure, resources, communication,
reporting and monitoring systems to manage a
project consistent with an organisation’s corporate
or strategic vision. It defines the framework within
which programmes will be conducted.
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Governance framework
An owner organisation would
typically have a formal ethics
policy and governance
procedures in place. This should
also cover governance of the
project environment to ensure
that all dealings and interactions
are such that it would not
negatively impact on the
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Programme governance principles
Start with a number of governance principles:
•
General approach: meet legal requirements & company ethical code;
•
Management style: honesty, openness and transparency;
•
Environment: target is zero environmental incidents;
•
Safety: zero fatalities and a RCR of less than 0,2;
•
Health: follow an integrated wellness programme;
•
Land risk management: proper baseline assessment;
•
Construction manpower: sourced from the local communities;
•
Affected manpower: minimise the impact on individuals;
•
Commercial practices: will withstand any review, and;
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Programme governance structures
Programme sponsor
Company boards
Programme steering committees
Project steering committees
Steering committee membership
Enterprise Project Management Office (PMO)
Programme Technical Authority
Programme Team
“The time is always right to do right”
Nelson Mandela
“A successful programme starts with
strong ethical principles”
Anonymous
2
Unpacking the Six
Sequential Steps of
Programmes
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Programme Management Model
Lead
Nurture
Nurture
SHAPE
CONTROL
LAUNCH
ORGANISE
PLAN
REVIEW
1. Business objective and programme charter
2. Programme Construct
From a business idea
To a programme concept
Benefits
Cashflow
Timeline
An aligned programme charter
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The charter guides the development
A programme charter needs to be set at the
start of the shaping process
Business objectives should remain firm
Detail evolves in the first year or two
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A programme requires
1. A clear framework plan
2. Tracking of progress
3. Close co-operation between programme manager and
business development team
4. Programme manager – flexible, but must also ensure that
the individual projects already approved are not derailed
5. Key to a successful programme is the ability to protect the
projects during execution but still to be able to devise ways
in which changes in business needs and assumptions can
be accommodated
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Construct
Facility Breakdown Structure
Interdependencies
FBS expands as
programme develops
Scope of facilities
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Project:
Coal 3 - Environmental Compliance Project
Work package
Utilities
WBS Code
1.2.3.4
Key Milestones
Refer to master schedule included as Figure 5.10
Capital/Operating cost
Capital cost $65m
Operating cost assumed as 3% of capital
Revision number
1.0
Date
1 March 2010
Approved by
Business Owner
Signature
Approved by Project
Manager
Signature
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Organise
The role of the owner team is to bring all facets
of the owner organisation’s requirements to the
table, especially during the scope development
phase
Owner organisations have to:
• Have a long-term, strategic view
• Understand what generates unique
competitive advantage
• Understand the total organisational supply
chain
• Translate their business understanding into a
productive asset, not just a ‘good project’
•
Ensure focus on the business objective
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Identify Core competencies
No
Competency
Category
Comment
1
Setting project goals, objectives
and priorities
Core
Key functionality of the programme management
team
2
Project management oversight
Core
Key functionality of the programme management
team
3
Benchmarking & metrics
Supportive Enables team to set realistic targets and compare
results
4
Conceptual planning/ road
mapping
Core
Key functionality of the programme management
team
5
Project controls, cost, planning,
progressing & scheduling
Core
Required to understand and roll up detailed plans,
progress, costs and forecasts to programme level
6
Procurement
Core
A centralised procurement group at programme
7
Constructability & construction
management
Supportive Constructability and construction management
oversight will be at programme level but each
project will manage its own construction
8
Safety management
Core
Safety will be directed from programme level with
consistent approaches and directives
9
Risk management
Core
Standard risk management procedures of the
company will be used
10 Financial approvals
Core
As per company guidelines
11
Legal/contract administration
Core
All programme contracts will be managed at
programme level
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Copyright © Owner Team Consultation, 2015
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Up to date understandable reporting
Risk Element Month 1 Month 2 Month 3 Month 4 Month 5 Month 6
Meeting shutdown schedules Labour stability
Quality of engineering design Quality of construction Not yet Applica ble Not yet Applica ble Not yet Applica ble Not yet Applica ble Not yet Applica ble Not yet Applica ble Brownfield risk Safety
Cost
Schedule
Quality
Performance
Risks
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Baseline measures
Baseline performance can be measured for any of the
business parameters, including:
Production volumes of specific products
Product quality as determined from spot checks, customer
complaints or returns
Sales volumes of specific products
Stock holding and turnover
Financial measures such as production cost, profit margin and
labour cost
Unscheduled equipment down-time
Environmental footprint
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• Benefits management forces you to stay focused on why you
started a programme in the first place.
• It doesn't stop after the programme ends, but continues until
all benefits are clearly achieved
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Regular simple reports
Risk Element Month 1 Month 2 Month 3 Month 4 Month 5 Month 6
Meeting shutdown schedules Labour stability
Quality of engineering design
Quality of construction ApplicaNot yet ble Not yet Applica ble Not yet Applica ble Not yet Applica ble Not yet Applica ble Not yet Applica ble Brownfield risk Safety
Cost
Schedule
Quality
Performance
Risks
1. Reduces need for extensive reviews
2. Information available for reviews
3
Unpacking the
Programme Life-cycle
Essentials
Copyright © Owner Team Consultation, 2015
Programme Management Model
Lead
Nurture
Nurture
SHAPE
CONTROL
LAUNCH
ORGANISE
PLAN
REVIEW
Copyright © Owner Team Consultation, 2015
Leadership skills for effective programme leaders
importance of ‘people’
Verma and Wideman (2002) define project leadership as the ability to get things done
well through others
Programme Director
Programme Sponsor
Effective
Programme
Leadership
Empowering
Listening &
Questioning
Communicating
Visioning
Influencing
Strategising
Team Building
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Leadership skills for effective programme leaders
How is programme leadership then
different from project leadership?
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A programme sponsor
Programme sponsors and
programme directors must be
able to:
•
put the interest of the whole
above the interest of one
project
•
see the bigger picture
•
keep an eye on the end goal
•
deal with significant
stakeholder complexity
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What can sponsors and programme directors do
to provide sound leadership?
Levers
Align
Engage
stakeholders
Communicate
Nurture
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Alignment
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Alignment
Lead
Nurture
Nurture
SHAPE
CONTROL
LAUNCH
ORGANISE
PLAN
REVIEW
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Alignment during Shaping
• Framing meeting / process
• The programme charter
• Broader alignment with stakeholders who did not
participate in the framing process
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Alignment during Shaping
1.
Common understanding of the current state of the business in
relation to the vision
2.
Business objectives
3.
Programme scope including boundary conditions, constraints,
assumptions and potential influences
4.
Risks and opportunities
5.
Exit indicators
6.
Impact on key business units/areas
7.
Key stakeholders, including CSI/Community relations
considerations
8.
Legislative requirements (incl SH&E)
9.
Principles to govern the programme
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Alignment challenges during Shaping
• A programme is generally prone to some change as
shaping develops
• Each business unit has its own drivers which has a major
impact on their priorities
• Availability of senior management or key stakeholders
• New team members joining the team
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Alignment during Planning and Organising
Kick off meetings has two objectives:
1. To ensure focused effort from all parties by ensuring that
the rationale behind the programme is understood
•
Programme charter - business objectives
•
Programme execution approach
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Roles and responsibilities
L =
Lead (only one person can lead)
A =
Approve
C =
Consult
T =
Task
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A few last words on alignment
•
The alignment process cannot be a singular event
•
Specific alignment interventions need to be planned carefully
to firm up the intent throughout all the programme phases
•
Alignment planning should integrate into the overall
programme roadmap
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What can sponsors and programme directors do
to provide sound leadership?
Levers
Align
Engage
stakeholders
Communicate
Nurture
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Copyright © Owner Team Consultation, 2015
Movement on stakeholders
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What can sponsors and programme directors do
to provide sound leadership?
Levers
Align
Engage
stakeholders
Communicate
Nurture
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Extract from a communication plan
Engagement
Platform
Frequency
Distribution/Include these stakeholders
Originator of Document/
Organiser of Meeting
Chairperson
Programme
Steering
Committee
meetings
Quarterly
Power Station Operations Manager
Power Station Maint. Manager
PowerCo Operations Manager
MiningCo Gas Operations Manager
Logistics Pro Operations Manager
Pipeline Pro Operations Manager
GridCo Operations Manager
UtilityCo Business Manager
MiningCo coal Mining Manager
Programme & project specialists
Programme Director
Sponsor
Steering
Committee
minutes
Monthly
All MDs, Business and Operations
Managers of the business units reflected
on the internal stakeholder map
Programme Director
Not applicable
Master
communication
packs
Quarterly update
All new recruits for the internal
programme team
Communication Manager
Not applicable
Programme portal
Monthly update
All internal stakeholders
Communication Manager
Not applicable
Organisation
charts and contact
lists
Monthly update
All internal stakeholders
Project Administrator
Not applicable
Monthly
one-on-one discussions
Monthly
Jane Perkins
John Jones
Power Station Operations Manager
Power Station Maint. Manager
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Administrator
Master Communication Pack
• Business objectives / charter with its
underlying assumptions
• Economic drivers
• High level programme schedule/
framework
• Programme objectives – scope, quality
objectives, time line (framework plan), cost
of the programme
• The safety, health & environmental (SHE)
objectives & philosophy
• Any philosophies relevant to the
programme phase at hand
• High level scope (WBS for the programme)
• High level schedule of the active phase
• Execution strategy
• Programme organisation structure for owner
team and contractors
• Key interfaces on the programme and
sub-projects that should be managed
• The approach/philosophy with regards to
Broad Based Black Economic Empowerment
(BBBEE), which is specific to South Africa
• The approach to risk management &
summary of key risks
• Recognition and reward system
• Site information e.g. accommodation, permits
Maps of the area around the site
• Photographs showing progress
• Any relevant information that the programme
team may need in the particular phase of the
project
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Engagement and communication mechanisms
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What can sponsors and programme directors do
to provide sound leadership?
Levers
Align
Engage
stakeholders
Communicate
Nurture
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Why is nurturing important?
•
The challenges on programmes include:
•
Stagnant careers
•
Working conditions – travel, site office etc
•
Continuous stress over extended periods
•
Neglected health – poor eating habits
•
Eustress, or positive stress
•
is optimal stress that motivates a person
•
short-term in nature
•
stress within your coping capability
•
helps you feel excited and heightens your levels of alertness
•
contributes to improved performance
•
Distress, or negative stress
•
causes anxiety or concern
•
can lead to mental and physical problems if greater than what we can cope with
•
ultimately decreases performance
•
more long-term in nature.
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Nurture
•
Nurturing starts with leadership! The sponsor and the programme director
•
Leadership refers to using influence to motivate team members to achieve a common
vision
•
Measures that could help:
•
Effective framing and alignment – a team heading in the same direction
•
Effective stakeholder engagement and communication
•
Sound HR processes
•
Fair recruitment and selection procedures
•
Succession planning
•
Recognition (formal and informal)
•
Reward - incentives, retention bonuses
•
Job rotation (cross function, outside and within the programme)
•
Coaching, training and development
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Nurturing in context
Personal
development
Recognition
Individual
wellness
Working Environment
Personal Environment
Team
wellness
Personality
Health and fitness
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Nurturing in context
Wellness
Assessment
Employee
Assistance
1. Conduct baseline assessment
2. Annual assessment
1. Telephonic counselling
2. In person counselling
3. Health assessments
4. Financial advice
5. Health & Wellness workshops
Programme
Management
Group reporting on issues
of concern
Group reporting on no of
people counselled, no of
health assessments &
group results, no of
workshop attendees
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Copyright © Owner Team Consultation, 2015
In summary
•
Programmes are complex
•
They are fraught with
challenges
•
Your biggest chance at
success is creating a solid
foundation through effective
shaping and mobilising a solid
owner team
•
Plan using the sequential
steps and concentric circles
•
And then with everything you
do, retain a bigger picture
and keep your eye on the
ball! (the business objective)
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Will all this guarantee a successful programme?
• Nobody can guarantee success on something as complex as a
programme
• Programmes are impacted by many variables, some outside our
control
But,
The probability of a successful programme increases significantly
when following the principles and procedures in the book
Copyright © Freek van Heerden, Jurie Steyn & Davida van der Walt, 2015
www.ownerteamconsult.com
Copyright © Owner Team Consultation, 2015
Sources
•
Griffith, A.F. & Gibson, G.E.(jr), 1997,
Team alignment during pre-project
planning of capital facilities
. Research report 113-12, Construction
Industries Institute.
•
Verma, V.K. & Wideman, R.M., 2002,
Project manager to project leader?
and the rocky road between.
, PDF file downloaded from
http://www.maxwideman.com/papers/
on 4 November 2014.
•
Van Heerden, F.J., Steyn, J.W. & van der Walt, D., 2015,
Programme
Management for Owner Teams – a practical guide to what you need to