ENTERPRISE PROGRAMME MANAGEMENT
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Enterprise Programme Management Delivering Value David Williams and Tim Parr
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 1988. First published 2004 by PALGRAVE MACMILLAN Houndmills, Basingstoke, Hampshire RG21 6XS and 175 Fifth Avenue, New York, N.Y. 10010 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 978-0-230-00234-0 ISBN 978-0-230-51470-6 (ebook) DOI 10.1057/9780230514706 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 10 9 8 7 6 5 4 3 2 1 13 12 11 10 09 08 07 06 05 04
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 97 10 Programme management systems 100 11 Managing programme risk 133 v
Contents 12 Benefits management 155 13 Managing suppliers 174 14 Building a communications capability 190 15 The enterprise programme management office 220 Part III Getting started 241 16 Introduction 243 17 Enterprise programme management capability check 244 18 Making sense of your current situation: knowing where to start 258 19 Practical steps for success 263 Glossary 273 References and further reading 282 Index 283 vi
List of figures 2.1 External and internal forces 8 2.2 The project landscape is changing 9 2.3 The balance between core business capabilities and change capabilities 10 2.4 The enterprise programme management framework 12 3.1 Strategic portfolio management and the enterprise programme management framework 20 3.2 The four phases of strategic portfolio management 21 3.3 The portfolio planning phase 24 3.4 A sample executive dashboard 30 4.1 The enterprise programme management framework 31 4.2 The programme delivery management framework 34 5.1 The enterprise programme management framework 43 5.2 The five process groups and nine knowledge areas of project management 45 6.1 The interaction of symptoms of poor programme architecture 49 6.2 The programme architecture framework 51 6.3 Typical organisation leadership structure 56 6.4 Organisation leadership structure incorporating project/ programme management 57 6.5 A matrix environment 57 6.6 Organisation leadership structure incorporating strategic programme management 59 6.7 Organisation leadership structure incorporating a directive programme management office 60 6.8 Organisation leadership structure incorporating a supportive programme management office 60 vii
List of figures 7.1 The change acceptance process 66 7.2 The enterprise programme management framework 67 7.3 The phases of change architecture 68 7.4 Phase 1 of change architecture 71 7.5 Phase 2 of change architecture 75 7.6 Example of a high-level change plan 77 7.7 Phase 3 of change architecture 83 8.1 The three elements of T-Mobile UK s approach to enterprise programme management 89 8.2 T-Mobile UK: the corporate project process 91 10.1 Logical architecture for programme management systems 102 10.2 Selection considerations for programme management systems 112 10.3 Typical phased roll-out approach 113 10.4 Logical architecture application mapping: stand-alone programme 117 10.5 Logical architecture application mapping: enterprise programme 118 10.6 Worldwide Programme Management Office (PMO) organisational relationship to Compaq Computer Corporation 121 10.7 Functionality timeline 123 11.1 The scope of risk management 134 11.2 Enterprise-wide risk management 135 11.3 Five key questions for effective portfolio risk management 136 11.4 Three planes of risk management 139 11.5 The risk management process 141 11.6 Risk appetite and risk tolerance 142 11.7 Risk action plan example 144 11.8 Governance structure for risk management 146 11.9 Dimensions for decision-making 147 11.10 Creating a risk management mindset 150 11.11 Outcome decision tree analysis for contingency planning 153 12.1 Benefits management with the enterprise programme management framework 156 12.2 Linking project benefits with business objectives 157 viii
List of figures 12.3 Integration of the benefits management strategy 158 12.4 Types of benefits 159 12.5 Keys steps of benefits management 162 12.6 Linking benefits to vision and business drivers 163 12.7 Review and evaluation of benefits achieved 169 12.8 The value of benefits management 171 14.1 The enterprise programme management framework 191 14.2 The resistance pyramid 194 14.3 Stages of reaction to change 196 14.4 Building a programme communications capability 197 14.5 Developing a communications strategy 197 14.6 Possible key messages 205 14.7 Creating a programme communications plan 208 14.8 Building the communications infrastructure 210 14.9 Delivering the communications strategy and plan 211 14.10 Reviewing and improving the strategy and plan 212 14.11 The Project Enterprise communications strategy 216 14.12 Project Enterprise s involvement and communication plan 217 15.1 The enterprise programme management framework 220 15.2 Difficulties with multiple PMOs in an organisation 225 15.3 Organisation structure for a consumer products manufacturing company 227 15.4 Revised organisation structure for a consumer products manufacturing company 229 15.5 The EPMO and the corporate programme infrastructure 230 15.6 The structure of ABN-AMRO 234 15.7 Revised ABN-AMRO structure with programme support structures 237 15.8 ABN-AMRO s initiative selection and portfolio management process 238 18.1 Categorisation of projects and programmes 259 18.2 Integrated programme 259 18.3 An exploratory programme 260 18.4 An expeditionary programme 261 18.5 Programme transition 262 19.1 Sample RACI chart 269 ix
List of tables 4.1 The change control approach 36 4.2 The contingency management approach 36 4.3 The financial management approach 37 4.4 Risk and issue management approach 38 4.5 Performance management approach 38 4.6 Quality management approach 39 4.7 Release management approach 40 4.8 Vendor management approach 40 4.9 Knowledge management approach 41 6.1 Environmental factors in organisations 50 6.2 Programme leadership and governance 52 6.3 Team building and development 52 6.4 Communication infrastructure 54 6.5 Programme infrastructure 54 6.6 Programme resourcing 55 7.1 The contribution of change architecture 69 7.2 Change interventions 73 7.3 Analysis of change interventions 75 10.1 Explanation of the logical components 103 10.2 Business case drivers for each logical component 108 10.3 Compaq s ranking in the hi-tech industry according to InformationWeek, 2001 131 12.1 Categories of benefit 165 14.1 Sample communication priorities 199 14.2 Sample audience/stakeholder matrix 202 14.3 Advantages and disadvantages of communication needs assessment methods 202 x
List of tables 14.4 Sample communication channel matrix 204 14.5 Project Enterprise: Steering Committee and Stakeholder Board 219 15.1 Reasons to justify creating an EPMO 232 xi
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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