This presentation provides an overview of the role and value of program management.

1. Program Management & Leadership
A Point of View
By Tom Tiede

2. Program Management & Leadership
Key points highlighted in this presentation:
•
•
•
•
•
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 high
o 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 crossfunctional 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
2

3. Program Management & Leadership
A program can consist of multiple phases, multiple projects, multiple work streams,
or a combination of all of them.
Illustrative
Multiple Phases
Program
New DC
Phase
Strategy
Multiple Projects
Phase
Design
Phase
Program
Implementation
DC Network Rollout
Project
DC1
Project
Project
DC2
DC3
Multiple Work Streams
Program
DC Implementation
Work
Stream
Operations
Work
Stream
Building
Work
Stream
Work
Stream
MHS
Systems
Work
Stream
People
3

4. Program Management & Leadership
The primary differences between a Program Manager and a Project Manager is the
depth of detail and scope of responsibility.
Broad
Aggregate
Program
Manager (examples)
• Multiple phases
• Multiple projects
• Multiple work streams
Project
Manager (examples)
Scope
Detail
Narrow
Schedule
Budget
Deliverables
Coordination
Issues & Risks
Granular
• Single phase
• Single project
• Single work stream
4

5. Program Management & Leadership
The value of Program Management is to provide leadership, simplify complexity,
reduce risk, and achieve results (which is the ultimate goal).
Provide
Leadership
Ultimate
Goal
Achieve
Results
Bring Structure
& Toolkit
Facilitate
Change
Mitigate
Risks
Resolve
Issues
Focus on
Objectives
Integrate
Schedules
Value of
Program
Management
Manage
Quality
Align
Teams
Establish
Accountabilities
Maintain
Visibility
Provide
Coaching
Streamline
Communication
5

6. Program Management & Leadership
Complexity and risk of a program is difficult to avoid when seeking significant
change.
Competing
Initiatives
As Project
Complexity and
Risk Increase…
# of
Stakeholders
Inexperience
of Team
Magnitude
of Change
Size in
Scale
Breadth in
Scope
… so Does the Need
for Increased
Management,
Visibility, & Control
Complex projects often fail when you fail to manage complexity.
6

7. Program Management & Leadership
What are the costs and risks of failed expectations?
Performance
Implementation “J-Curve”
Desired
Start Up
Desired
Steady State
“Go-Live”
Unexpected
Steady State
Current
State
Performance
Gap
Poor
Start Up
What are the costs?
• Higher implementation costs?
• Delayed or lower business results?
What are the risks?
• Lost customers?
• Tarnished reputations?
Time
Clearly, the stakes are high.
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8. Program Management & Leadership
This example scenario depicts the $ impact of labor inefficiency and lost gross profit
when performance lags during a start up.
Current State
Steady State
“Go Live”
Example J Curve
Labor Inefficiency %
Loss Sales Opportunity
Labor Inefficiency
GP on Lost Sales
Cumulative Loss
Month -2
0%
0%
$0
$0
$0
Month -1
0%
0%
$0
$0
$0
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
Month 1
40%
20%
($0.24)
($1.25)
($1.49)
Month 2
30%
15%
($0.18)
($0.94)
($2.61)
Month 3
20%
10%
($0.12)
($0.63)
($3.35)
Example Scenario: DC Labor
FTEs
250
$/Hour
15
Hours/Month
160
Monthly Labor $
$600,000
Month 4
10%
5%
($0.06)
($0.31)
($3.73)
Month 5
0%
0%
$0.00
$0.00
($3.73)
Month 6
0%
0%
$0.00
$0.00
($3.73)
Total Loss ($MM)
($0.60)
($3.73)
($3.73)
How do you
minimize this loss?
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9. Program Management & Leadership
Common reasons programs fail or under-perform:
Categories
Scope & Objectives
Approach & Methodology
Deliverables & Quality
Roles & Responsibilities
Planning & Scheduling
Budgeting & Cost Control
Knowledge & Experience
Issues & Resolution
Communication & Visibility
Priority & Sponsorship
Common Pitfalls
Unclear, misunderstood, differing points of view, moving target, creeping, lack of
change control, not measured (or measurable), results not tracked
Unclear, siloed, misaligned across teams (e.g. gaps or redundancies), not
followed, too rigid, too linear, lack of continuity across phases, ignoring risk
Unclear, misaligned (e.g. gaps or redundancies), too detailed, too high-level, lack
of ownership, incorrect, inconsistent quality, late
Unclear, too narrow or too broad in scope, not communicated, not assigned, not
filled, misaligned, insufficient skills, lack of accountability
Unclear, incomplete, too aggressive, not integrated, too high level, too detailed,
progress not tracked, assumes perfection, no contingency
Unclear, under-estimated, not tied to business case, lack of visibility, lack of
financial control, no contingency
Limited, not shared, not developed during project, not confirmed, lack of
empowerment, lack of continuity across phases, incomplete transition
Unclear, unknown, lack of owner, lack of progress, linger too long
Unclear, siloed, not targeted or tailored to audience, too much equals noise,
inaccurate, incomplete, hiding or delaying unpleasant news
Unclear, competing initiatives, insufficient stakeholder & organizational
awareness, change in business priorities, change in executive sponsors
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10. Program Management & Leadership
As an example, a common pitfall is the failure to align project roles with specific
names, specific responsibilities, time commitments, and results.
Roles
(Organization Chart)
How much time is being
allocated to each team member?
• Resource Name
• Hours on Project by Time Period
Time
(Resource Plan)
Are they getting the work done
on time and with good quality?
• Status reporting
• Quality reviews
A name should
appear in all 3
corners of this
triangle
Individuals need to
be accountable for
results
Who is on the project?
• Diagram of Roles and Names
• Project Reporting Structure
Responsibilities
(RACI Chart)
Have they been assigned
specific responsibilities and are
they qualified to do the work?
• Specific Responsibility by Name
• Deliverables expected by Name
Results
10

11. Program Management & Leadership
Leaders need consistent and
correct information to
DIRECT and CORRECT
Program
Leadership
Company
Leadership
The Status Report provides
weekly information to
project leadership for
ACTION
Project/Program
Status Reports
Dashboard of
Projects &
Programs
The ADRA & the Integrated
Schedule are the
repositories of project
information
Actions/Issues, Decisions,
Risks, & Assumptions Log
(ADRA)
Integrated
Project/Program
Schedule
Meeting Notes & Daily
Discussions provide the
input to support the ADRA
& Schedule
Meeting
Notes
Alignment of Information
Another common pitfall is misunderstanding the need and the value in aligning the
flow information across the program.
Discussions
11

12. Program Management & Leadership
Typical DC Implementation Activities
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).
Illustrative
12

13. Program Management & Leadership
A more successful approach is to manage complex implementations as a program
with strong leadership, structured communication, and cross-functional
methodologies.
Illustrative
Initiate/Plan
Cross Functional Planning, Scheduling, & Alignment on Roles & Responsibilities
Design/Select
Integrated Detail Design of Building, Equipment, Systems, Operations, & Organization
Procure
Itemization, Purchasing, & Reconciliation of Sourcing Responsibilities
Build
Cross Functional Schedule Coordination, Issue Resolution, & Communication
Test
Integrated Testing & Issue Resolution
Train
Integrated Training & Skill Building
Deploy/Support
Deployment Planning & Operational Support
Realize
Full Transition & Achievement of Anticipated Business Results
13

14. Program Management & Leadership
A Program Management Office (PMO) requires both Program Leadership and
Program Coordination.
Illustrative
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.
14

15. Program Management & Leadership
Program Management Leadership and Coordination are like two sides of the brain
that naturally interact in order to be effective.
Left Brain
Right Brain
Logic
Facts
Figures
Sequence
Emotion
Intuition
Creativity
Holistic Thought
Program
Coordination
Program
Leadership
Tools & Structure
Plans & Schedules
Roles & Responsibilities
Deliverables & Progress
Activities & Issues
Meetings & Action Items
Notes & Reports
“Laptop” Focused
Clarity & Conviction
Knowledge & Experience
Presence & Context
Creative & Forward Thinking
Holistic & Longer Term View
Coaching & Team Building
Accountability & Results
“People” Focused
15

16. Program Management & Leadership
Who is a Program Leader?
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

17. Program Management & Leadership
Great coaches are effective leaders because they master the hard disciplines and
soft skills needed to achieve results.
“Hardware” of Leadership
“Software” of Leadership
Instilling a disciplined & proven approach
Clarifying everyone’s assignments
Building skills through practice & repetition
Preparing for the unexpected
Constructing the playbook & game plan
Crafting a creative & long term vision
Leveraging talent & building a winning team
Demanding accountability of everyone
Calling the right plays at the right time
Focusing on the ultimate goal
17

18. Program Management & Leadership
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:
Each Project or Work Stream:
• Provides structure & discipline
• Focuses on individual
Business
• Establishes expectations
responsibilities &
Case Results
• Focuses on integration &
interdependencies
Change Management
communication
• Aligns with program
• Leverages skills
structure & objectives
Program Quality Assurance
• Mitigates risk
Risk & Issue Management
• Drives results
Financial Management
Program Schedule Management
Cross Functional Methodology Alignment
Communication & Knowledge Management
Program Organization Structure
Foundational Structure of Program Management Principles & Tools
18

19. Program Management & Leadership
Equipment
Systems
Operations
Schedule
Experience
Business Solution Complexity
The degree of Program Management needed is proportional to the complexity of
the business solution and business stakeholder group.
C
High Degree
of Program
Coordination
A
High Degree of
Coordination &
Leadership
High
Degree of
Program
Leadership
D
Low Degree of
Complexity
You cannot take a
“one size fits all”
approach…instead,
you tailor your
approach based on
need
B
Business Stakeholder Complexity
Magnitude of Change
# of Stakeholders
Alignment across Leaders
Availability of Resources
19

20. Program Management & Leadership
Simplify the Program Management process by breaking it into four basic phases.
Program Lifecycle
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
(Primary Effort)
•
•
•
•
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
Close
•
•
Complete and confirm transition to the operations and support team
Confirm expectations and measurable results are met or exceeded
Initiate
(Pre-Kickoff)
Plan
(Post-Kickoff)
Manage
20

21. Program Management & Leadership
The “secret sauce” to effectiveness is a rigorous communication process across
work streams and throughout the lifecycle of the program.
Program Management
Lifecycle
Initiate
Plan
Manage
Close
(Pre-Kickoff)
(Post-Kickoff)
(Primary Effort)
(Post Go-Live)
Initiate
Complete
Create Roadmap
Work Stream Leads
Communicate
Initial Contacts
Prepare
Prepare Template
Review
Assess
Prepare
Prepare Template
Validate
Plan
Validate/Complete
Integrate Detail
All
Communicate
Broaden List
Conduct
Populate
Confirm
Create
Populate
Populate
Update
Manage
Assess
Validate
Prepare
Update
Evaluate
Checkpoint Reviews
Program Management Deliverables
Program Start-up Checklist
Program Schedule
Program Organization, Roles, & Responsibilities
Program Orientation & Logistics
Contact List
Program Kick Off & Workshops
Actions, Decisions, Risks, Assumptions (ADRA)
Business Case
Communication Plan
Program Charter
Program & Work Stream Status Reports
Risk Assessment
Steering Committee Report
Quality Assurance Plan
Project Budget
Change Management Plan
Program Close Checklist
Close
Maintain/Communicate Confirm Completion
Maintain/Communicate Confirm Completion
Orient New Members
Roll off Team
Maintain/Communicate
Maintain/Communicate Confirm Completion
Monitor/Communicate
Assess Results
Maintain/Communicate Communicate Close
Maintain/Communicate
Communicate
Confirm Completion
Maintain/Communicate
Prepare/Communicate
Facilitate/Assess
Validate
Maintain/Report
Confirm/Close
Facilitate/Socialize
Complete Transition
Communicate
Validate/Complete
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.
21

22. Program Management & Leadership
A summary of key takeaways for you from this presentation:
•
•
•
•
•
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 high
o 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 crossfunctional 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
22

23. Thank You!
23