ENTERPRISE PROGRAMME MANAGEMENT

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1 ENTERPRISE PROGRAMME MANAGEMENT

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3 Enterprise Programme Management Delivering Value David Williams and Tim Parr

4 David Williams and Tim Parr 2004 All rights reserved. No reproduction, copy or transmission of this publication may be made without written permission. No paragraph of this publication may be reproduced, copied or transmitted save with written permission or in accordance with the provisions of the Copyright, Designs and Patents Act 1988, or under the terms of any licence permitting limited copying issued by the Copyright Licensing Agency, 90 Tottenham Court Road, London W1T 4LP. Any person who does any unauthorised act in relation to this publication may be liable to criminal prosecution and civil claims for damages. The authors have asserted their rights to be identified as the authors of this work in accordance with the Copyright, Designs and Patents Act First published 2004 by PALGRAVE MACMILLAN Houndmills, Basingstoke, Hampshire RG21 6XS and 175 Fifth Avenue, New York, N.Y Companies and representatives throughout the world PALGRAVE MACMILLAN is the global academic imprint of the Palgrave Macmillan division of St. Martin s Press, LLC and of Palgrave Macmillan Ltd. Macmillan is a registered trademark in the United States, United Kingdom and other countries. Palgrave is a registered trademark in the European Union and other countries. ISBN ISBN (ebook) DOI / This book is printed on paper suitable for recycling and made from fully managed and sustained forest sources. A catalogue record for this book is available from the British Library. A catalog record for this book is available from the Library of Congress. Editing and origination by Curran Publishing Services, Norwich

5 Contents List of figures List of tables Acknowledgements Foreword vii x xiii xv 1 Introduction 1 Part I The enterprise programme management framework 5 2 Why an enterprise approach is required 7 3 Strategic portfolio management 18 4 Programme delivery management 31 5 Project management 43 6 Programme architecture 47 7 Change architecture: managing the human side of change 64 8 Developing an enterprise-wide approach to programme and project management 86 Part II Enterprise programme management essentials 95 9 Introduction Programme management systems Managing programme risk 133 v

6 Contents 12 Benefits management Managing suppliers Building a communications capability The enterprise programme management office 220 Part III Getting started Introduction Enterprise programme management capability check Making sense of your current situation: knowing where to start Practical steps for success 263 Glossary 273 References and further reading 282 Index 283 vi

7 List of figures 2.1 External and internal forces The project landscape is changing The balance between core business capabilities and change capabilities The enterprise programme management framework Strategic portfolio management and the enterprise programme management framework The four phases of strategic portfolio management The portfolio planning phase A sample executive dashboard The enterprise programme management framework The programme delivery management framework The enterprise programme management framework The five process groups and nine knowledge areas of project management The interaction of symptoms of poor programme architecture The programme architecture framework Typical organisation leadership structure Organisation leadership structure incorporating project/ programme management A matrix environment Organisation leadership structure incorporating strategic programme management Organisation leadership structure incorporating a directive programme management office Organisation leadership structure incorporating a supportive programme management office 60 vii

8 List of figures 7.1 The change acceptance process The enterprise programme management framework The phases of change architecture Phase 1 of change architecture Phase 2 of change architecture Example of a high-level change plan Phase 3 of change architecture The three elements of T-Mobile UK s approach to enterprise programme management T-Mobile UK: the corporate project process Logical architecture for programme management systems Selection considerations for programme management systems Typical phased roll-out approach Logical architecture application mapping: stand-alone programme Logical architecture application mapping: enterprise programme Worldwide Programme Management Office (PMO) organisational relationship to Compaq Computer Corporation Functionality timeline The scope of risk management Enterprise-wide risk management Five key questions for effective portfolio risk management Three planes of risk management The risk management process Risk appetite and risk tolerance Risk action plan example Governance structure for risk management Dimensions for decision-making Creating a risk management mindset Outcome decision tree analysis for contingency planning Benefits management with the enterprise programme management framework Linking project benefits with business objectives 157 viii

9 List of figures 12.3 Integration of the benefits management strategy Types of benefits Keys steps of benefits management Linking benefits to vision and business drivers Review and evaluation of benefits achieved The value of benefits management The enterprise programme management framework The resistance pyramid Stages of reaction to change Building a programme communications capability Developing a communications strategy Possible key messages Creating a programme communications plan Building the communications infrastructure Delivering the communications strategy and plan Reviewing and improving the strategy and plan The Project Enterprise communications strategy Project Enterprise s involvement and communication plan The enterprise programme management framework Difficulties with multiple PMOs in an organisation Organisation structure for a consumer products manufacturing company Revised organisation structure for a consumer products manufacturing company The EPMO and the corporate programme infrastructure The structure of ABN-AMRO Revised ABN-AMRO structure with programme support structures ABN-AMRO s initiative selection and portfolio management process Categorisation of projects and programmes Integrated programme An exploratory programme An expeditionary programme Programme transition Sample RACI chart 269 ix

10 List of tables 4.1 The change control approach The contingency management approach The financial management approach Risk and issue management approach Performance management approach Quality management approach Release management approach Vendor management approach Knowledge management approach Environmental factors in organisations Programme leadership and governance Team building and development Communication infrastructure Programme infrastructure Programme resourcing The contribution of change architecture Change interventions Analysis of change interventions Explanation of the logical components Business case drivers for each logical component Compaq s ranking in the hi-tech industry according to InformationWeek, Categories of benefit Sample communication priorities Sample audience/stakeholder matrix Advantages and disadvantages of communication needs assessment methods 202 x

11 List of tables 14.4 Sample communication channel matrix Project Enterprise: Steering Committee and Stakeholder Board Reasons to justify creating an EPMO 232 xi

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13 Acknowledgements In writing a book it is inevitable that a large number of people will be involved to a greater or lesser extent in the endeavour and in this case the authors have relied on the efforts, enthusiasm and contribution of others to a large extent. In particular we would like to thank the following for their contributions to Part II: Programme management systems Managing programme risk Benefits management Managing suppliers Building a communications capability The enterprise programme management office Malcolm Wilkinson Paul Mansell, Matt Litchfield Amisha Lakhani, Nick Culver Paramjit Uppal Lyndal Petre Philip Coleman We would also like to acknowledge the following whose contributions ranged from encouragement to proceed with the writing, to proofreading to sharing some of their experiences and thoughts with us. As ever it is impossible to single out individuals, or to try and make judgements over individual worth, so in simple alphabetical order we would like to thank Neil Ashman, Richard Barton, Steve Brandon, John Connolly, Nick Griffin, Melissa Insley, Alethea Leong, Chris Loughran, John Ormerod, David Owen, Nick Owen, Eric Northcote, Ed Parry, David Turver, Tim Pitts, Jamie Turner and Ashley Unwin. The ideas in the book are supported by a number of case studies, and we would like to thank the organisations that have allowed us to share their experiences with the readers through the case studies. T-Mobile UK Compaq Computer Corporation Primavera Systems Inc. Benchmarking Partners Transport for London MyTravel plc TUI UK ABN-AMRO xiii