Program Management : Program Management Foundations

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 Program Management Foundations ::

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Delivering capability with programs ::

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- I've been asked on many occasions if a program can be run using project management processes and principles. After all, a program does include a number of projects. Well the answer is no. A program involves so much more than just delivering multiple projects and therefore applying project management processes is not sufficient. You see a program needs to coordinate and manage many more activities outside the scope of a project, like transition and benefits realization. And that's what this course is all about. Best practice guidance on a program management approach that will help you deliver successful, transformative change to your business. I'm Claudine Peet and I've been working, training, and consulting in Program, Project, and Change Management for over 20 years, delivering change programs, projects, and running my own training business. So join me on this LinkedIN Learning course and let's see how to effectively manage a program and deliver transformational change and increase capability for you organization.

DEFINE PROGRAM ::

1. Overview of Program Activities
2. Purpose of a Program
3. Program Vision development
4. Target Operating Model Development
5. Program Communications'
6. Developing a Program Business Case
7. Identifying Program Benefits
8. Developing Program Governance 
9. Developing the program plan

1. Overview of program activities ::

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- You may wonder why follow a different approach for program management? Surely the project management principles and processes are sufficient. Well, they aren't. Programs include multiple related projects, transition activities, and realization of benefits activities. So a different approach is required. Let's take a look at the activities that will need to be addressed. All programs have a business need, which provides the justification for the program, often as part of a concept or feasibility phase. This phase is carried out by a sponsoring group and a Senior Responsible Owner and focuses on understanding the business drivers for the change. Once the drivers have been determined, the team creates an outline vision statement and outline business case for a view on whether to invest in the program. If the sponsoring group agree to proceed, the program moves into the definition phase to define what we can about the program. Remember, it's very difficult at this point to be too specific. The Senior Responsible Owner and the Business Change Managers will refine the vision statement and the business case, create a target operating model, and define the benefits. The program manager will set up the program governance and produce a program plan. This phase ends with a formal gateway review before beginning work on the delivery phases. During delivery, the program manager collaborates with the Business Change Managers to oversee the projects, ensuring they started, monitored, and closed effectively. There are many activities the program manager oversees including managing issues and risks, resources, procurement, progress, and planning, and these need to be continually addressed during this phase. The Business Change Managers will prepare their business units for the change carrying out training and communicating, then transitioning the solution into use while maintaining stable operations, and finally, measuring the benefits achieved. As the phases are delivered formal reviews are carried out to assess the progress and the justification of the program. When it becomes evident the vision and the target operating model have been delivered, the program will complete the closing phase. This is when the program manager takes stock of the outcomes and the benefits that have been achieved and assesses if the target operating model and program vision have been delivered. In addition, assessing lessons of how effective the program governance was should be carried out. And then the program needs to disband resources formally. Underpinning these phases are some continuous activities running along the whole program lifecycle. These cover the stakeholder engagement and communication and change management activities which are vital to gain the buy-in and the commitment to the change. Including these activities in your program plan will greatly increase the chances of success to deliver the program's objectives and subsequently achieve the corporate objectives.

2. Purpose of a program ::

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- Before diving into a program and starting off projects, assigning roles, and defining what needs to be done, we need to first understand why the program is needed. I found that one of the best tools for this is a PESTLE analysis, which looks at both the internal and external pressures on the business to make the change. Here's how it works. Let's say your organization has purchased a smaller one and they now need to begin working together. The political driver could be that the new CEO wants to shake things up and make their mark. Environmental drivers could be to better utilize resources to reduce industrial waste and create more eco-friendly production methods. Social drivers for the merger may be the perception that the company needs to be more environmentally aware. When merging two organizations, a technology driver will be to integrate and update the hardware and software systems. There may even be some legislative drivers for the merger where one of the organizations may have to comply with specific legislation and the program needs to address this as part of the change. Economic drivers will focus on the cost efficiency and savings. These could include internal pressures to do more with less, or maybe to streamline procurement and to achieve economies of scale. Besides providing information on internal and external pressures for the change, a PESTLE analysis also provides insight of three important areas of information. The first is an indication of the expected benefits. If we know what is driving the change, we know where we will be seeking measurable improvements. Next, it provides us with an initial insight into who our major stakeholders will most likely be, so we can begin early engagement with them. And finally, it highlights major risks for the program, giving us an opportunity to mitigate them. So PESTLE analysis is so much more than just understanding the pressures on the business. It not only helps us understand why a program has been initiated, but also, the benefits, stakeholders, and risks. This knowledge then allows us to move forward with an intelligent, well-planned approach for the program, based on a thorough analysis of internal and external pressures.

3. Program vision development ::

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- Having a clear vision statement is essential to help everyone understand the desired end goal of the program. It's a powerful communication tool that can generate engagement and commitment by all stakeholders. One of the best descriptions I've ever heard of a vision statement is that it's a postcard from the future. It describes a future so compelling that stakeholders feel they want to take the journey to get there. It should engage both the heart and the mind. So let's take a look at how a vision statement is created and who should be involved. It's important to define the vision and start engaging with stakeholders as soon as possible. Most of the time this is done in a visioning workshop hosted by the Senior Responsible Owner and Business Change Managers. As an exercise in imagination the group will first look around the organization as it is today to understand the current state without the change program. Then next, they will step into the future and describe what they see and how the business works after the program has been delivered. A great tip when doing this exercise is to ask the following questions about the future state. What services will be changed, added, or stopped in the future state? What processes will be different? What shape will our new organization be? Why are we changing? What will be the impact on our tools and technology? And what values will need to change? This information is then used to create the vision statement. When crafting your vision statement, be sure to write in the future tense as if we've already delivered the program. It's much more powerful to hear a statement that says, we are delivering first-class customer service, rather than, we would like to deliver first-class customer service. The vision should be short and memorable, typically a paragraph or two, but not a mission statement, the catchy one liner. It should appeal to a wide variety of stakeholders so should be written using a language that's understood by all levels. It should avoid target dates unless the program is truly time-dependent. It should describe a future that is verifiable, but without prescribing too many performance targets that it limits flexibility to remain relevant throughout the program. Once the vision statement is created it will become a key communication message used for the basis of most of the program communications. Sometimes a vision needs a little refining during the definition phase. But watch out for doing too much. A message that's constantly changing suggests the organization doesn't really know what it's delivering and the message may lose credibility and impact. The vision statement should be a motivator. But a really well-crafted vision statement will become a rallying cry. It will be a constant and repeated message used throughout the program to gain commitment and engagement.

4. Target Operating Model development ::

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- A target operating model, or TOM, is an essential analysis for any program. It provides the information to developer business case and a program plan, and to map and plan benefits. Sometimes a TOM is used in an outline format to assist with the development of the vision statement. But note, that the vision statement describes the destination or the future state, but the target operating model describes the journey we'll take to get there. There are many tools and techniques to identify the TOM. One of the best is the McKinsey 7S model. I provided a template for you in the exercise files. The first S is for structure of the organization, the hierarchy, and who reports to whom. Strategy is the corporate strategy which gives the organization an advantage over its competitors. Skills are the individual skills of employees and their levels of competency. Then comes the wider group of staff and their general capabilities. The fifth S is the style of leadership being used. Next is the systems used to carry out day-to-day activities and procedures. And the final S is shared values which addresses the core ethics or culture of the organization. So now that we've identified a target operating model, let's take a look at the steps to develop and achieve your goal. First of all, the business change managers will use each of the 7S categories to identify the current or as-is state, which describes the organization as it is today. They will then visualize the future and describe the to-be, or future state, using the 7S categories. The next step is to clarify the difference between the current and the future state, called GAP analysis. This is vital to help identify which projects and activities will need to be undertaken to deliver the new future state effectively mapping the journey. Then next, a program plan will be developed to identify the project outputs to meet the gap. And finally, the projects will be delivered and measured. So when does all this happen? Initial work on the target operating model begins during the feasibility phase. But it's further refined during the definition. As the program moves into the delivery phases, the target operating model is updated and even adjustments may be made as projects deliver outputs. The target operating model will eventually be finalized when the program closes and the final future state is achieved. With a well-defined target operating model, it will be clear which projects and activities should be undertaken to successfully deliver the outcomes and the benefits of the program.

5. Program communications ::

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- No matter how important your program is, people don't automatically just dive in and get it done. It takes time, and sometimes persuasion to help them become excited and engaged. As the program manager, you will need to develop a process that ensures appropriate stakeholder engagement and communication at all times. Now remember, stakeholder engagement and communication is a continuous activity that starts when the program starts, and may well continue after the program has closed. Let's take a quick look at the stakeholder engagement cycle. First, during the Definition phase, create a stakeholder engagement strategy that sets out how the program will manage and communicate with its stakeholders. This strategy may reflect a corporate approach. But it needs to include the policies and procedures that should be followed for your particular program. Then, identify your stakeholders. Brainstorm a list, talk to other stakeholders. Create stakeholder mind maps, or hold a stakeholder identification workshop. Whichever method you choose, remember, forgetting a stakeholder could be detrimental to the program. The next step is to analyze and understand a little bit more about them. A commonly used tool is an influence and interest matrix, which helps prioritize the importance of the stakeholders. It's based on their level of interest in the program and how much influence they have. In this matrix, the more you move from the lower left-hand corner to the upper right-hand corner, the more face-to-face the communication needs to be. This enables closer engagement with those key stakeholders. Then, find out what they're interested in, and what they already know and don't know, and what they need to know and how they'd like to receive their information. From this information-gathering session, you can create stakeholder profiles, which will need updating during the program on a regular basis. The information you have gathered will now help inform the communications plan, which identifies the stakeholder communication activities to be carried out during the course of the program. Again, this communications plan will be regularly reviewed and updated during the program. The final step in the cycle is to ensure you regularly catch up with and review your stakeholders. Remember, all sorts of things can change, including their level of interest or support. In addition, new stakeholders may be identified, and others may no longer be interested. Using this generic cycle on an ongoing basis throughout the program ensures that the right people are getting the right information at the right time, and this in turn ensures commitment and helps with getting the changes to stick.

6. Developing a program business case ::

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- Every program should have a business case. It provides a justification for the program, validates that the investment will be worth the outcomes and benefits, and it's used to continually validate the viability of the program. So let's take a look at how the business case is developed. It begins with the vision statement, which describes the future state of the organization. This is used to help develop a target operating model, which sets out the current state and the future state and the gap that needs to be filled to achieve the vision. Alongside the target operating model, the benefits maps and profiles are created, which then leads to a benefits realization plan. The benefits maps and profile play a large part in driving the design of the target operating model, which in turn validates the benefits. Once the target operating model has identified the gap, this then identifies the projects that will fill the gap, which is captured in the program plan. It is only once all this information has been compiled and validated that the business case can be refined. Sometimes it's possible that a vision may be too challenging, and therefore the business case does not stack up. But this will not be known until these steps are undertaken. It may be necessary to revise the future state for different solutions to find the business case that can be justified. So now let's take a look at where it's developed and maintained in the program life cycle. The business case is first created in the concept phase by the senior responsible owner in an outline format. There will be just enough information gathered to assess the feasibility of the program. The business case is then reviewed by a sponsoring group to ensure justification exists before the program commits to the definition phase. Once in the definition phase, the business case will be further refined following more detailed planning by the senior responsible owner and used again at the formal gateway review at the end of definition. Delivery may occur in multiple sequential and parallel phases, and there should be some clearly defined reviews carried out. At each of these reviews, the business case will be updated, and the justification will again be checked by validating the progress of the program against the forecasts. During the closing phase, the business case will be reviewed yet again to check which benefits have already been achieved and which are outstanding. So as you can see, the business case continually evolves through the program life cycle. Finally, please remember that every project in the program will also have its own business case, and these should be aligned with and reflected in the program business case at all times.

7. Identifying program benefits ::

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- The focus of a program is to deliver outcomes and ultimately benefits for the business. But these benefits will not just happen on their own. It requires a concerted effort for them to be identified, managed, tracked, and realized. There are a number of important factors involved with benefits management. First, who will be accountable for benefits? Accountability and ownership lies firmly with the business change managers, or operational level senior managers. They come from the business units affected by the change that will be using the deliverables from the program. Their key responsibilities are to identify the benefits for the program in their business area. Then, ensure that when planning to realize benefits, they have input into when they expect the likely benefits to be realized. Then the most important bits, to monitor the outcomes in their business units and measure the improvements to validate the achievement of the expected benefits. The next important factor is to have a clear process to follow. There are four steps. The first is identifying benefits, which is an ongoing activity that starts in the concept phase when first providing a justification for the project. High-level benefits are identified using PESTLE analysis, and are used to validate the outlined business case. During the definition phase benefits will be expanded further and broken down and a benefit register with a profile for each benefit is created. During the delivery phases, new benefits may be identified or may emerge, so keep an eye open for these. The next step is to plan how to deliver the benefits. During the definition phase, the benefits realization plan will be created which will be updated during the delivery phases. Then we need to deliver the benefits. Just prior to output delivery, the business change managers will prepare the business unit. For example, carrying out training with staff so that when the new system is delivered they are trained to use it. And they should be monitoring the outcomes that will lead to the measurable benefits. And finally, review benefits realization. This takes place during the delivery phases where benefits will be measured and captured, and the process reviewed for compliance and effectiveness. In addition, during closing the program it's very important that a review is undertaken to assess the benefits realization against forecast benefits. The final factor is to have clear benefits management documentation. It's best practice for a program to have a benefits management strategy setting out how the program will manage benefits. It's also recommended that you have a profile for each benefit, forming a benefit register, which captures specific details of each individual benefit and disbenefit identified. And finally a benefits realization plan which sets up when the expected benefits will be realized, who will be involved in measuring it, and how they will be measured. Take a look at the examples of a benefits register, realization plan, and management strategy I've created for you in the exercise files. By ensuring that these three factors, accountability, process, and documentation, are addressed fully, you can ensure successful benefits management for the program.

Developing program governance ::

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- We've probably all experienced a situation where a lack of consistency in approach has caused confusion. I've experienced a situation where someone was describing a category nine risk, but I didn't understand, as I categorized my risks in red, amber, and green. Program governance prevents this situation. It provides clear instructions on appropriate standards, processes, and procedures, for all areas of the program. It provides consistency and clarity for everyone involved, so that we're all singing from the same song sheet. During the definition phase, you'll need to consider the nature of your program, and what governance it needs, then document these appropriately. Here are a few typical areas of governance. Human resources needs to have clear procedures to follow if a program is changing peoples' job roles, making people redundant, or recruiting new people. All programs will need to deal with risks and issues, so it's important everyone understands how they are managed, and what procedures need to be followed. In quality management, audits will provide assurance to the organization of compliance of program governance. The procedures required to conduct these audits will need to be defined. Many of the program's projects are likely to work with third-party suppliers, so it's important to consider the procurement approach, and define the procedures that should be followed to use them. A program generates a lot of information, which will need to be stored securely, versioned, and identified easily. These procedures will need to be defined in a strategy for the program. Finance and accounting should also have some clear procedures, defining how the project's managed and report on the finances, how expenses are dealt with, and who is responsible clearly defined. Stakeholder engagement and management is another area where it's important to define procedures. How will we identify, analyze, communicate with, and review our stakeholders? The benefits management procedures will define how to identify, plan, deliver, and review benefits for the program. And there are of course a number of other possible governance areas that may apply, such as operations and performance, information technology, corporate responsibility, health and safety, legislative compliance, and contract management, to name a few. You will sometimes find that your organization already has many of these areas covered by a corporate-level governance. If this is the case, you'll still need to separately document the program governance, but it should reflect the corporate governance to ensure consistency. By putting in place clear guidance for the governance areas of your program, you are ensuring that there are clear rules and procedures to be followed. So in the same way that your organization has procedures for you to follow, the program also needs to have its own procedures to provide a consistent approach for the program team to follow.

Developing the program plan ::

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- In a program, there will be multiple projects running concurrently, lots of communications, transition, assurance, resource management, and benefits management activities. As well as other activities, all happening over a long period of time. It's a pretty busy environment. So it'll be essential to have a way of planning, tracking and controlling all of these activities. And for that, you need a program plan. The program manager creates the program plan during the definition phase of the program life cycle, after the target operating model and benefits. During the delivery phases, the program plan is used to track and control progress, and will be updated regularly to show this. There will also be phase reviews carried out, and the updated plan will be an essential input for decision making at these reviews. There are two important contributors to the program plan. One is the target operating model. When the gap analysis has been completed, the projects will be identified to fill the gap, and will need to be included in the program plan. The other is the benefits realization plan, which will indicate when a project output is required to deliver the benefits. So now let's talk about what the program plan includes. First of all, it shows the projects. When each project will start and end, and how they will depend on each other. It's a high-level summary, and does not include the detailed activities for each project. All programs will need to manage risks. So the plan needs to include risk mitigation activities. There should be a lot of communication during the course of the program, and these activities should be reflected in the plan. In addition, the quality activities that address compliance with the program governance, and when reviews and audits will need to be undertaken, will be reflected in the program plan. Also included are the transition management activities showing what the business units are doing to prepare for the project deliverables. These can include training, and support activities in the business units, after project delivery. The program plan also sets out how the projects will be grouped, and deliver capability into the organization through delivery phases. These may not be run one after another, but could be running concurrently, or overlapping with each other. The program plan will also show which projects and activities are included in which phases, and when the gateway reviews will be held. Make sure you include all these activities in your program plan, and you will be able to monitor and control your program far more effectively.

MANAGING PHASES ::

1. Program Phases
2. Initiating the programs projects's 
3. Program resourcing
4. Monitoring and control for the program
5. Next Phase planning

Program phases ::

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- Program delivery doesn't happen all at once. Thank goodness. It happens in phases. Now, a phase normally consists of a number of projects and activities, and each phase of the program needs to deliver a step change in capability. In other words, it needs to deliver project outputs that will improve operations and work towards outcome and benefits achievement. So the question is how does the program define what will constitute each phase? Let's take a look at what to consider when planning the program phases. Working with business change managers, you will need to identify when the capability needs to be delivered, so you will need to understand the business priorities. This is when you will identify which projects in the program are needed more urgently than others. These can then be planned for delivery in an early phase. Sometimes the priority is to deliver early benefits, either as proof of concept or to gain confidence from the key stakeholders. If so, this will need to be planned in an early phase. Prioritizing will also give us an indication of when to start projects and how they should depend on one another. Remember, projects don't just start whenever they feel like it. Resourcing can cause issues. And some projects deliver things other projects need to start or complete. This then raises a question. How should the work be grouped? It's pretty common to work stream the projects, sometimes by discipline, skills, culture, or location. So for a merger program, multiple process integration projects may form one phase. The way the work is grouped then helps us to determine the capability each phase will deliver and then subsequently the benefits that are achieved as a result. In addition, consider whether the program runs one phase at a time or several phases concurrently. For example, a program delivering a merger could run one phase to integrate processes while another phase runs concurrently to restructure the organization. Just be aware that running too many parallel phases does introduce a significant amount of risk to the program and the use of resources. When each phase ends, a review should be held to evaluate the direction and the justification of the program. The work of the phases is to balance the change being delivered with the rate of change the operational areas can cope with. Get this right and you have effective capability being delivered and achievement of expected benefits and corporate objectives.

Initiating the program's projects ::

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- Without projects, the program will not be able to deliver outputs, achieve outcomes and ultimately, deliver benefits. So the first step to delivering a program's objectives is to deliver projects. As the program manager, you'll need to make sure each project has an appointed sponsor or project board and project manager. This is essential for the project as we need someone to undertake the work and someone to make decisions. Next, pull all relevant information about the project and provide this as a project brief to the project team. This might include the reasons for the project, some high level cost and time estimates and high level expected benefits and risks which provide the justification for the project. At this point, take time to meet with the project team and discuss the objectives and how it contributes to the bigger picture. Make sure everyone understands the dependencies of other projects and program activities. For example, your project is about delivering a newly design corporate identity. The marketing project team will need to know when the new design is available so they can build it into their project plan. Next, you'll need to clarify the monitoring, control and progress activities required to assess the project's progress. Clarify how the project will authorize it's stages, what happens if the project exceeds tolerance and the escalation procedures. You'll need to meet with the project board and the business change managers to discuss the communications requirements to ensure there's no overlap between the project and the business unit. There's no point in the project communicating to users about the timing of project output delivery if the business managers are also going to do it. They'll also need to consider the timing of the project delivery and how the business unit will prepare for the delivery of a project output. If the business change managers know when the output is being delivered, they can create their transition plans for communication and training. So as you can see, there's a lot of interaction that needs to take place to ensure your projects start at the appropriate time and deliver on time. By following these activities, the programs projects are more likely to deliver fit for purpose outputs capable of achieving successful outcomes and eventually the program benefits.

Program resourcing ::

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- Running a program is a balancing act between the delivery of the corporate strategy by delivering change whilst maintaining stability with business as usual. It's about balancing resources and as you can imagine, this can be pretty tricky, especially when there are multiple programs being delivered within the organization. So let's take a look at some of the challenges you'll face as a program manager when resourcing a program. First of all, finding the resources. Where will they come from and what level of skill is required? Rarely does a business have spare skilled resources available to work on the program, so they need to be acquired. To overcome this, in the definition phase, you'll need to plan in advance the type and the quantity of resources needed for at least the first phase of the program. Thereafter, as each phase approaches its close, you'll need to plan for the next phase. The business can then assess if they'll bring in outside contractors or backfill staff positions while they work on the program. Or, if they'll use third-party suppliers but specific expertise. The next challenge is how to keep business as usual as stable as possible while introducing change. Change in an organization causes uncertainty and resistance which negatively affects productivity. The best way to address this is with business continuity plans. These plans address productivity and performance targets during the change along with resourcing and people issues, such as motivation and anxiety. Another challenge is how the resourcing costs will be calculated. Many of the resources working on the program or the projects within the program are likely to be doing so in a part-time basis. So the challenge comes with how to full cost the time and cost. The business will want to know how much the program costs, so unless you can estimate and then track spending, this won't be possible. The answer to this is to first have a resource management strategy, which sets out how this will be achieved along with the guidance on procurement, HR, and dispute resolution, to name a few. Then, if possible, also point to resource manager who can monitor and track results usage for the program. The final resource challenge is how can the business transfer skills and knowledge gained during the program? If you used contractors or third-party suppliers, there's a chance skills and knowledge will be lost when the program is complete. This information is vital for informing future programs on lessons learned from this program. Consider regular meetings, or setting up an action learning group to capture lessons all the way through the program. This will eliminate the risk of losing this intelligence once the program closes. Taking these challenges into account allows you to better understand the resourcing needs of the program and to successfully acquire the resources and manage them more effectively.

Monitoring and control for the program ::

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- Businesses don't like surprises. They don't want to wait till the end to see how things turn out. They want regular updates on the new capability that's being delivered and benefits realized. This information will come from planned monitoring and control activities, and will enable the sponsoring group to decide whether to continue with the program or to stop it. First, let's take a look at how to monitor what's going on during the program. During the Definition phase, you as the program manager, and the senior responsible owner should have agreed to a method to capture and report progress through the phases. This is quite commonly done as a report. The project managers will submit their reports and the program plan will be updated. You can then update the sponsoring group accordingly. In addition, you will keep an eye on the risks and issues of each project, as these can affect a program. For example, if one project is running late due to an issue, it may affect the start of another project that's dependent on it. Now, during the delivery phases, the business change managers also update the program manager on the transition activities. For the projects that have delivered, it's important to monitor their use of the project deliverables and ensure that outcomes are being achieved and reported. The business change managers will also include an update on the achievement of benefits. For example, if your goal is an overall improvement of 15% by the end of year one, then you may decide to measure productivity every three months to see that you're on track. So, in addition to monitoring the progress, it's also important to control aspects of the program, to ensure that we're still on target to achieve the vision and the target operating model. To do this, the program will have to set up a sponsoring group who will be responsible for all the major decision-making. They will get together formally for gateway reviews, which are typically carried out between concept and definition, and are repeated again between definition and the delivery phases. During delivery, they will carry out phase reviews, and finally, a program review at the end of the program. These reviews assess viability of the program and help the sponsoring groups see what has been achieved and what still remains to be done. Another important control aspect is to define appropriate tolerances for the projects, and then clarify escalation procedures that will apply if these tolerances are exceeded. For example, the rebranding project has three weeks tolerance on its delivery date. It now looks like it'll be six weeks late, affecting two dependent marketing projects. This is an issue that needs to be escalated for sponsoring group guidance. So as you can see, it's really important to be monitoring and control activities in place for your program to achieve successful delivery of the target operating model.

Next-phase planning ::

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- As a Program Manager, one of the most important things you do is plan. In fact, you never stop planning. Planning is an ongoing activity, because each phase of the program normally takes place over many months, and delivers multiple projects, so it's essential that you know how and when to plan. Once the program's underway, new phases should be planned near the end of the previous phase, and there are a number of factors that need to be taken into account to do this. Consider which projects are likely to be delivered during the next phase, consult with the business change managers about the business priorities, and expected capability for the next phase. Another very important inclusion in the plan are the transition activities. Transition is everything that happens from the time a project output is delivered until when the change is fully embedded and delivering benefits. So these activities many include learning and training of staff, and any support and maintenance required. You and the business change managers should also consider the benefit management activities that should be included in the plan. For example, let's say you've just delivered the project output, which is a new payroll system. Over some time, outcomes are achieved and improvements are noticed, maybe we can process payroll more accurately. Eventually, we'll want to know by how much we've improved, so we measure our benefits and note that we're processing payroll 50% faster, with an 80% improved accuracy on a monthly basis. Another very important factor for you to consider while planning is the change of stakeholders. Some stakeholders may no longer be relevant, and other, new stakeholders may be identified. In addition, existing stakeholders may have different areas of interest, now the program has moved along a little. It's really important to take note of these changes for the next phase, to ensure you're engaging and communicating with them appropriately. And finally, it's always worth considering the lessons learned from earlier phases that will inform the next phase of planning. For example, you've learned that going live with the payroll system in one location took longer than anticipated and needed more support than originally planned. This is adjusted for the rollout of the next location in the next phase. Make sure you've considered all these important factors as you plan the next phase, so that your program will continue to move effectively towards the future state.

TRANSITION MANAGEMENT ::

1. Prepare Pre-transition
2. Carrying out the transition
3. Post Transition activities
4. Prepare Pre-transition   
   
   

1. Prepare Pre-transition ::

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- Once the projects are underway, the main focus is on transition. And it's essential that you, as the program manager, work closely with the Business Change Manager to monitor the projects that will deliver into their business units. Because before project outputs are delivered, the business units will need to undertake a number of pre-transition activities. Let's take a look at what should be happening before the projects deliver. First, and very importantly, baseline measures must be established. The business unit will eventually want to measure the improvements, and they'll need to know what to measure from. This is your baseline. Next, taking the people management needs into account, communicate the change and provide people support needed. Without engagement and commitment, the users are unlikely to use the project deliverables. Collaborate with the Business Change Manager to coordinate the activities necessary to deliver outputs into the business unit. You can't just drop a project deliverable into operations with no warning. The Business Change Managers will assess the training needs of the staff and will need to coordinate the best time for this to be undertaken. You'll also need to work together to plan support for after the project is delivered. The Business Change Managers will also need to plan benefit reviews. It's quite common to measure every few months to assess if expected benefits are likely to be achieved. As the projects are nearing delivery, it's vital for the Business Change Mangers to assess readiness for change. This involves considering a number of factors. They would consider the recent track record and past experience of implementing change. Has it gone well, or badly? And how might this impact the change this time? Next, the availability of resources to support the change. Rarely do organizations have spare resources. So how many are available? And for how long? Then how does the change fit into the culture and the values of the organization? Remember, cultural behavioral changes are notoriously hard to make and embed. If the change is aligned with the existing culture and values, it's likely to be a little easier. Also consider the effectiveness of supporting systems to enable change like the communications channels, process maturity, and robustness. If the organization is unable to maintain temporary systems during change, it's unlikely to be successful in embedding change longterm. And finally, the current performance levels are likely to take a dip when the change is introduced by the program. How much is acceptable for the business? And for how long can it be sustained? So before a project can deliver an output into a business unit there is plenty of preparation to be done. And by taking account of these activities, the transition will happen more smoothly and successfully.

2. Carrying out the transition ::

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- Transition is that awkward period of time when the project has delivered its outputs and the business units are trying to come to grips with the new ways of working. It's an unsettling time for the business unit and it needs to be handled correctly to ensure that the change sticks and the desired outcomes and benefits are achieved. The business change managers play a vital role during this stage. After all, it's their business units that are receiving the changes. They will have already prepared them for the change and must now ensure transition happens smoothly with minimal disruption. That's far trickier than it sounds. So let's take a look at what's involved in introducing a change into the business unit. First, the senior responsible earner will need to approve the release of the product from the project into the operational environment. And then, just before the project is ready to deliver, the business change manager will confirm the delivery date and make sure support arrangements are in place. Consider delivering a new software system. After training has been completed, support can be provided through follow-up workshops or on a one-to-one basis. The business change managers will need to check that staff have all had the relevant training before go-live. They should also check with the project managers and program manager that there are no outstanding risks and issues with the project outputs. If there is still an outstanding issue regarding a bug in the software, it's useful for the business change manager to know about it, how it will be resolved, and when. It's probably no surprise that things can go wrong. So it's always recommended that business change managers have a back-out or contingency plan in place should the go-live not go as planned. For example, waiting for a one or two-week period to pass before removing a legacy system is always sensible, just in case. Now the products are in the operational environment, it's vital for the business change manager to review the transition to ensure that there are no problems arising. It's not uncommon to have teething problems, like little bugs appearing in a software or a process that doesn't quite work the way it was expected. The business change managers must capture this information and feed it back to the project team, who can resolve these issues before disbanding. Finally, as transition moves along, the business change managers will start recognizing improvements. These are the outcomes that we're looking for, as they will lead to the measurable benefits expected by the program. So as you can see, a smooth transition must be planned and managed by the business change managers if the change is truly going to stick and lead to benefits achievement.

Post-transition activities ::

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- At this point, a number of projects have delivered outputs and the business change managers have managed transition of the change into the business units. Now the post-transition activities can begin. Let's take a look at what's involved. First of all, the business change managers need to monitor the outcomes, which are the noticeable improvements resulting from using project outputs. For example, a new payroll system has increased the efficiency to run the monthly payroll, and the business change manager has noticed it's now only taking a few hours to complete. Previously, it took two days. This is an outcome. And outcomes need to be measured. Baseline measures will have already been identified before transition started. So we can now compare the baseline against the current performance and provide a measure of improvement. For example, we can now confirm that running the monthly payroll using the new system has reduced from two days to three hours, and the accuracy of the payroll is now improved by 80%. In addition to measuring benefits, it's always advisable to see if there are any opportunities to optimize them. Which means looking at ways to improve the existing benefits and possible identify more. For example, by reducing the number of people doing the payroll, we've discovered we can free up an extra resource for the program management office to assist with financial management. It's pretty common to find that some changing requirements emerge after a period of use. These need to be managed, and the benefits of these changes being made must be assessed to see if they can optimize the benefit's achievement. For example, the finance manager has suggested that after using the payroll system for two months, that a new report would be beneficial. This would require a small project to be started. The benefits have been assessed and the project has been approved. Now comes the tricky bit. Removing legacy working practices. Sounds much easier than it really is. This is about making sure that the change really sticks, and everyone has adopted the new behaviors to support the change. The business change manager wanted to keep the old payroll system running alongside the new system, until they were sure everything was working. And now that it is, the old payroll system has been removed. Finally, the benefits will continue to need monitoring and reporting. Remember, the realization of some benefits can carry on for many months or years. For example, continuing to measure the improvement in efficiency of the new payroll system for two years to ensure consistency. The completion of the post-transition activities helps the program determine the achievement towards the target operating model and the vision statement, and is a vital part in assessing the program's success.

CLOSING THE PROGRAM ::

1. When to close the program
2. Program closure activity

When to close a program ::

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- Knowing when to close a program can be tricky because it doesn't always have a time-dependent end date like a project. In fact, not all programs will end naturally. So how do we know when to close a program? Let's take a look at some of the signs that indicate the program is ready to close. There are two ways in which this can happen, planned or prematurely. First, let's look at the signs of a planned closure. A couple of obvious signs are that the vision and target operating model have been achieved. The organization recognizes that the future state is a reality and that the work on the gap has been completed. It's also noticed that the outcomes and many of the expected benefits have also been realized as part of the program. The important question to ask now would be, how much more work needs to be carried out on benefits realization before we're satisfied that we no longer need a program team to actively track these. If the answer is very little, and the benefits are now self-sustaining, this is an indication that the program can close. Another indication is that the last phase of the program is completing. In some programs, this is enough to close. But in others, there may still be a period of time for transition and benefits measurement to take place before closing. And finally, there are no significant outstanding risks and issues for the program, and therefore, there is no need to keep the program team in place. Now the signs of a premature closure are different. The most obvious one is that the program has no justification or the business case does not stack up. Another sign could be the inability to secure funding to complete the work. Some programs take years to complete. So the external circumstances may have changed and the program is no longer relevant. This is common when there's a change in government or legislation. It's also possible that corporate strategy may change, meaning the program is no longer needed. And then we have the 80/20 rule, which shows that 80% of the work is required to achieve 20% of the benefits, which doesn't make any financial sense. And finally, sometimes we find that the outcomes are being achieved through another program or change. In each of these cases, the program should be stopped. After evaluation, they may start up again or be amalgamated with another program, but the key thing is not to just carry on with them without this evaluation. So make sure you're keeping watch at the signs that indicate when it's time to close the program and take stock of what has been achieved.

Program closure activities ::

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- We have now delivered multiple projects into operational use, trained staff to use the outputs, measured the improvements, and reported these to the business. The program has completed its final phase and it's time to close the program. So how do we close a program down? What should we be doing? First of all, you as the program manager will need to ensure that adequate support remains in place where needed. Remember that for the final phase, there may still be fairly new project outputs in use so support cannot be withdrawn just yet. Check and agree with the business change managers what support is still needed and confirm how this will remain in place and at what point it will be withdrawn. Then communicate the imminent closure to the stakeholders. Remember, the program is likely to have many stakeholders, some of whom have given resources to the program, which are now returning back to their operational roles. They will need integration plans to ensure that this is carried out effectively. In addition, you'll need to carry out performance reviews for the resources that have worked on the program and feed this back to the operational managers for their annual performance reviews. Now, it's time to carry out a program review. This provides an opportunity to not only take stock of achievements, but to also consider the management of the program and the lessons that have been learned along the way. During this review, assess the achievement of the vision and the target operating model and determine the program's contribution to the corporate objectives. In addition, consider providing feedback to corporate governance on the use of the program governance. This way, improvements can be made to governance for future programs. Now the program can disband resources and supporting functions like the program office and any equipment or office space used during the program. In addition, remember that there's a lot of information and documentation that will have been generated by the program, so do the filing and the archiving of the information for future use. And finally, let's not forget to celebrate success. Even a program closing prematurely will have delivered something that will lead to success so celebrate the achievements and give recognition where it's due. By carrying out these last few program activities, your organization can take stock of achievements, recognize efficiencies, measure achievement of performance targets, and realize long term strategic benefits from a well-planned program.