Global Program Management

Transcription

1 Global Program Management Paula Wagner, MBA, PMP Bruce T. Barkley Me Graw Hill New York Chicago San Francisco Lisbon London Madrid Mexico City Milan New Delhi San Juan Seoul Singapore Sydney Toronto

2 Introduction xv Chapter 1. The Global Setting for Program Management 1 Introduction 1 Global Forces 2 Strengthening the Business for Global Project Delivery 3 Global Mission 3 Global Vision 6 Global Strategic Management 8 Global Values 9 Global Goals 10 Developing a global strategic plan 10 Global strategy 11 Setting global objectives 11 Crafting a glpbal strategy 12 Implement and execute the global strategy through portfolios, programs, and projects 13 Evaluate and align performance 13 Industry and global competitive analysis 14 Organization's internal factors 16 SWOT 17 Strategic cost analysis 18 Benchmarking 19 Competitive advantage and strategy 19 Alliances and collaborative partnerships 20 Merger and acquisition strategies 21 Outsourcing 21 Global competitive strategies 21 Location, location, location 23 Profit sanctuaries 24 Critical markets 24 Other strategies 24 Diversification strategies 26 Summary 26 Chapter 2. The Standard for Program Management According to PMI 29 Introduction 29

3 vi Contents What is Program Management? 29 Project Management Institute 30 Relationships with Other Project Standards 33 The Role of the Program Manager 34 Benefits management 36 Program stakeholder management 38 Program governance 40 The skills of a program manager 41 External Program Elements 43 Program Life Cycle 44 Program formulation 45 Program delivery of benefits 45 Program closeout 45 Program management processes 46 Initiation process 53 Planning process 56 Develop program requirements 59 Develop program architecture 60 Develop program work breakdown structure (PWBS) 60 Develop program management plan 62 Develop program infrastructure 63 Develop program schedule 65 Plan communications 66 Plan program risk management 68 Plan program procurements 73 Financial plans 75 Estimate program costs 76 Budget program costs 78 Plan program stakeholder management 79 Identify program stakeholders 80 Program governance structure 83 Plan for audits 84 Plan for program quality 85 Executing process 86 Manage program architecture 89 Manage component interfaces 90 Engage program stakeholders 95 Approve component initiation 96 Monitoring and Controlling Process Group 97 Monitor and control program performance 97 Manage program issues 99 Monitor and control program scope 100 Monitor and control program schedule 101 Report program performance 102 Monitor and control program risks 104 Administer program procurements 105 Monitor and control program financials 106 Manage program stakeholder expectations 108 Provide governance oversight 110 Manage program benefits 111 Monitor and control program changes 113 Closing Process Group 114 Close program 114 Close program procurements 116 Approve component transition 117

4 vii The Importance of Program Management Support Systems 121 The program management office (PMO) 121 Human resources 122 Information technology 123 Facilities and supplies 123 Customers and new product design 123 Local regulation 123 Procurement 123 Communication/translation 124 Demographics/culture 125 Quality 126 Economics of scale 126 Other Considerations 127 More on outsourcing 127 Administrative support 127 More on human resources 127 Integration in global and international programs 127 Tools in building an integrated program management system 128 Building an organization-wide global program management system 128 Program/portfolio planning and development system 130 Resource management system 131 Program information technology system 131 Product/service development process 132 Interface management 132 Program monitoring and control system 133 Change management system 134 Program evaluation system 134 Limitations of integrated program management systems 134 Microsoft program support for program management 135 WBS and task outline 135 Integrating programs in Microsoft Project 139 Summing up the Microsoft Project integration function 141 Tools used to build an integrated program management system 141 Implementing a global PMO 141 Building a PMO 142 Organizational needs identification 143 Analyze and prioritize 144 Build a plan of action/pmo charter 144 Gain support 146 Implement the plan 146 Report status 147, Continuous improvement process 147 Value of a PMO 148 Structure of the PMO 149 Roles and responsibilities of the PMO team 149 Maturity model of a PMO 150 Summary 150 Chapter 3. Global Portfolio Management Strategies 153 Introduction 153 The Global Portfolio 153 Programs as Unifying and Organizational Themes 153 A World Without a Program and Project Portfolio and Program Management System 155 Portfolio Development 156

5 viii Contents What Is Portfolio Management? 157 Why Are Portfolios Needed? 159 Developing a Portfolio Process 160 Portfolio Process 162 Phased-in process 162 Standards 162 Continuous improvement 163 Portfolio process management 163 Project portfolio benefits 170 How Portfolios, Programs, and Project Management Relate 172 Global project portfolios 173 Programs in a portfolio world 173 Goals of a project portfolio 173 Chapter 4. Global Program Management Strategies 181 Introduction 181 Western Technologies: A Typical Global Corporation and a Framework for Linking Program Management to Business Strategy 182 How does Western manage this process? 185 Western's approach to program management 186 The Eastern Case: Another Global Project Company 188 Background 189 Risk-based strategy and program development 190 Eight strategies and key measurements 193 Overview 194 Strengths, weaknesses, opportunities, and threats 195 Eastern's strategic plan 197 Underlying elements of the risk-based strategic plan 198 Measures of effectiveness 199 Communicating strategy and risk 207 Program development 209 The Alignment of Programs with Strategic Objectives 213 Programs Are Organizational Commitments 213 Postscript 215 Chapter 5. Global Program Risk Management 217 Introduction 217 Program Risk 217 Risk Management 219 Sample program risk matrix 221 Program Risk Management According to PMI 224 Issues involved with program risk 224 Risk Management Planning 228 Inputs to risk management planning 229 Issues not addressed in PMBOK 230 Tools and techniques for risk management planning 231 Outputs from risk management planning 231 Risk Identification 232 Inputs to risk identification 232 Project planning outputs 232 Risk categories 233 Tools and techniques for risk identification 234 Outputs from risk identification 235

6 ix Qualitative Risk Analysis 235 Inputs to qualitative risk analysis 235 Tools and techniques for qualitative risk analysis 236 Outputs from qualitative risk analysis 236 Quantitative Risk Analysis 237 Inputs to quantitative analysis 237 Tools and techniques for quantitative risk analysis 237 Outputs from quantitative risk analysis 237 Risk Response Planning 238 Inputs to risk response planning 238 Tools and techniques for risk response planning 238 Outputs from risk response planning 239 Risk Monitoring and Control 239 Inputs to risk monitoring and control 239 Tools and techniques for risk monitoring and control 240 Outputs from risk monitoring and control 240 Chapter 6. The Global Program Manager 241 Introduction 241 The Global Program Manager 241 The Global Program Manager "Job Description" 242 General responsibilities 242 Specific responsibilities 242 Skills and attributes 243 Global Program Management: What Does It Really Involve? 244 Implement business strategy: make the business case for the program and assure alignment 244 Create a program workforce, team, and support system for results 244 Acquire program resources and funding 244 Interface with program stakeholders and sponsors 244 Ensure effective planning, scheduling, budgeting, monitoring, and review 245 Build a supporting global program network 245 Balance program discipline with innovation and creativity 245 Program Managers versus Single Project Managers 245 The Transition to Program Manager 247 Global Reference of Program Management 248 Program Reference 248 Explanation of Concept 248 Program Manager Competencies 248 Training the Global Program Manager 250 Language, diversity, and codes and symbols of the global culture 250 Single and multiple project management systems 250 Global program portfolio planning, delivery systems, and issues 251 Technology developments relevant to the program 251 Business support functions and operations 251 Managing Virtual Teams and the Technology 251 Negotiating Skills 252 Contracts 252 Using International Culture Codes 253 Global Schedule Conflicts and Negotiations: A Global Website Design Case 254 Background 254 Project schedule 254

7 Program manager's decision 255 Assumptions 255 Earned value calculations 256 Negotiating from Interests 257 Scheduling: What Is the Program Manager Competency? 257 Cost estimating and earned value 258 Resourcing 258 Quality 260 Managing Conflict and Risk Globally 261 Global time management and the issue of time zones 261 Strategic leadership 263 Ethics and morals in a global context 263 Administrative issues; nuts and bolts of the global program manager position 264 Getting reports from project managers and rolling them up for executives 266 Communications 266 Assembling the right team in a virtual context 266 Reviewing/feedback to project managers/coaching 267 Motivating people in a global program 267 Business savvy 268 Office politics 268 Scheduling and resource planning for outsourcing 268 Scrubbing the schedule 270 Baselining the schedule 270 Managing schedules on the network 271 Resource planning for outsourced activity 272 Preparing staffing policy and plans 272 Resource planning: rules of thumb 274 Preparing program budgets 274 Roles in the Program Management Process 275 Departmental and Functional Manager Roles 277 Risk Management Plan 278 Program review and monitoring 278 Program team roles 278 Program review and monitoring and the senior management role 280 Senior Management Roles: Creating the Conditions for Project Success 281 What Are the Typical Project Management Windows for Program Review? 282 Introduction to phase Introduction to phase Introduction to phase Introduction to phase Sample tools 290 Summing Up: 10 Key Roles of the Program Manager 292 What Does the Program Manager Expect from Project Managers? 293 What about project team members? 294 Program Manager Review Agenda 294 Sample Program Review Questionnaire 295 Program Management Information System 296 Procedures for Schedule Tracking and Reporting 296 Program tracking information 297 Program Review Meetings and Reports 299 Reports, meetings, and documentation 300 Issues in program management improvement 300 Design and follow consistent planning procedures 300 Monitor baseline #1 300

8 xi Monitor against baseline or current 301 Report consistently 301 Network Information Exchange 301 Program managers and workforce planning 301 Feedback 302 Training and professional development 303 Chapter 7. Partnerships, Contracts, and Procurement 305 Introduction 305 Innovation and Outsourcing 306 Developing partnerships and supplier relationships 306 Licensing and other program issues overseas 308 The global avionics program management case 308 Postscript 310 Doing good with program management: collaborative programs targeting international social development 310 What is a program in these cases? 310 Program strategy 311 Benefits management 311 Program governance 311 Strategic partnerships and stakeholder management 311 Program design 311 Lessons learned Classic program manager role in procurement 312 Procurement process and program manager roles 313 Organizational interrelationships and interfaces 313 Interface with procurement 315 Other program manager procurement issues in a global context 315 A case: airport designer dumped 316 Make-or-buy decisions 318 Types of contracts used in local markets 319 Doing business internationally 319 Finding drivers of competition worldwide 322 Program contract management and risk 323 Risk and Types of Contracts 323 Global e-procurement 324 Downside risks of global program e-procurement 325 Open-ended global collaboration on the Internet 325 Summary 326 Chapter 8. Federal Program Management 327 Introduction 327 What's Wrong with Federal Program Management? 327 What is wrong? 328 What kind of change? 330 What Is Real Program Transparency? 330 Coordinating Federal Program Management 331 A new Office of Federal Innovative Management in the Executive Office of the President 331 Global Reference 331 Program Reference 332 Explanation of concept 332

9 xii Contents Structural Change 333 Past approaches to management reform 334 Resurrecting a Reagan administration proposal 335 Functions of OFIM 337 Program planning and evaluation 338 Common program and project management methodology 338 Energy independence: a case example and an introduction to the concept 339 Global reference 339 What Happens in the Real World of Federal Program Managers? 339 Program reference 340 Energy independence/clean fuels program strategy and program objectives 341 OFIM Program Role in Energy Independence 341 OFIM Involvement in Heath Care Reform 342 Federal Agency Portfolio Management 342 Federal Agency Program Management Systems, Tools, and Techniques 342 Promoting innovation in federal programs 343 New organizational structure for new programs 343 Curbing new unaligned programs 344 New programs and outsourcing 344 Organizational learning 344 Six key strategies to create innovation in federal program management 345 Remove barriers to the generation of new ideas 345 Promote return on innovation and creativity 345 Paradigms as barriers to new programs and services 346 Provide a system of information and feedback on current programs and services 346 Create a positive place for new ideas to incubate 346 Generate a process of filtering, evaluating, and transitioning new ideas into a portfolio and program development process 346 Create real agency program management success stories 347 The Structure of a Federal Energy Independence Program 347 A Customer-Driven Public/Private Partnership 347 Performance Budgeting and Energy Independence 348 Coordinating Agency Program Setup 348 Integration as a Leadership Function 350 Integration as a Wide-Ranging Quality and Process Improvement Standard 350 Tools in building an integrated federal program management system 351 Summary 358 Chapter 9. New Global Program Development 359 Introduction 359 What Have We Learned about New Global Program Management? 359 Generating Creative Program Concepts 364 New organizational structure for new programs 364 New products and outsourcing 365 Restructuring for global program management 365 Examining competencies and outcomes 365 The Broadband Case: An Application 365 Strategic global objectives 366 Global program development 366 Global portfolio of projects 366 Global program manager 367 Global program benefits 367 Calculating rate of return 367

10 xiii Global partnering and strategic alliances 368 Global transparency 368 Government relations 368 Regulatory issues 368 Culture and language issues 368 Equipment production and delivery 368 Education content censorship 369 Summary 369 Appendix A. Program Risk Management Checklist 371 Appendix B. Microsoft Applications for Program Management 379 Project Consolidation to Create Programs 379 Project Server for Program Support 379 A Word of Caution 380 Appendix C. Global Project Management Strategies in a Program Management World 381 Project Management 381 Global Reference 382 The program world 382 Explanation of Concept 383 Definition of a project 383 The purpose of a project 384 Deeper Understanding Strategy of Use 385 Project management process 385 Work breakdown structure 388 Time management 388 Risk plan 389 Cost management 389 Project team offsite 390 Project life cycle 390 Project process groups 391 Throughout the phases 394 Project plan 394 How are projects selected? 395 Knowledge and maturity 396 Maturity model benefits 399 Triple play of constraints 399 Project manager 403 Sponsor 409 Customer 409 Project engineer 409 Functional manager 409 Contract administrator 410 Stakeholders 410 Index 413