1. PROGRAM GOVERNANCE STRUCTURESETUP & MANAGEMENTBy Saurabh Sardesaiwww.starvaluemodel.comJune 2014

2. Objectives Establish a Program/Project governance structure within theorganization and ensure stakeholder participation Define the program roles, decision making hierarchy,program execution strategies and best practices Describe the protocol for proper flow of relevant informationto all stakeholders Establish a project/program review, issue management &change mgmt mechanism Mechanism to identify program compliance andcommunications to all stakeholders Evaluate various models of program governance andinvestigate their suitability for adaption Translate business strategy into actual program execution viaa proper governance framework 3. Governance defined Governance, for a program or a project, is acombination of individuals filling executive andmanagement roles, program oversight functionsorganized into structures, and policies that definemanagement principles and decision making. This combination is focused upon providing directionand oversight, which guide the achievement of theneeded business outcome from the execution of theprogram effort, and providing data and feedback,which measure the ongoing contribution by theprogram to needed results within the overallbusiness strategy and direction. 4. Need/Background The organization was facing a huge problem ofmanaging diverse projects across geographies withouthaving a formal program structure in place Senior management was finding it increasingly difficultto have an oversight on project execution in absence ofproper governance structure and formal feedbackchannels There was a clear disconnect between project executionand business mission or strategy There was no overarching body like a Steeringcommittee to provide oversight to projects A need was felt to aggregate all multiple projects data ina central place and use the information to bettermanage the defined outcomes 5. Stakeholders Board of Directors and C level executives Project sponsors and funding partners Internal and external clients of the organization Business units within the organization Vendor partners of the organization Project managers and delivery managers/heads Development teams, architects and testers Support staff, line managers and consultants Product control and management teams Other relevant project stakeholders 6. Plan of action Initiate consultations with relevant stakeholders to gettheir opinion & feedback Establish a Program Steering Committee as theoverarching body for program/project execution Establish a Program Management Office (PMO) Establish a Program Organization model and ProjectOrganization model Define and set up roles for Program Director, ProgramManagers, PMO managers and PMO support staff Implement mechanisms to provide guidance and directionregarding policies, governance principles, and decision orauthority specifications. Establish a communications network and protocol foreffective program and project communication to internaland external stakeholders of the organization 7. Steering committee models Consensus Model: Executive-level sponsors who must reachconsensus on issues, changes, and adjustments in order to proceed Consultative Model: Executives and senior managers who arestakeholders for some aspect of the defined outcomes. Their role isto understand issues and needed changes, provide advice andassessment of potential impact, and make needed adjustmentswithin their own responsibility area Advisory Model: Representatives for the major business segmentswho are responsible for outcomes, or portions of outcomes, withinthe business strategy and direction. Their role is to monitor programprogress, understand issues raised and adjustments made, assesspotential impact within their own business segments, and carry backinformation about committee decisions to their respective businesssegments For our initiative we recommend the Advisory model as theorganization is large and has many interdependent businesses thatroutinely interact with each other 8. Recommended model ProgramManagement Office (PMO) The Program Management Office (PMO)provides support along administrative, financial,process, and staff dimensions associated withsuccessful program execution. The PMO also provides review and tracking offinancial expenditures, generation of requiredreports and financial documents, and ensurescompliance with policies and practices. The PMO provides & administers policies,procedures, & practices that provide anoperational framework for program members 9. Sample Program model 10. Sample PMO structure 11. Sample Project structurewithin a PMO 12. Benefits of recommended model Increases the long term potential of the programand individual projects Continuous linkage to enterprise businessstrategy and direction Clear and well-understood decision-makingauthority Effective oversight of & insight into programprogress and direction Executive control over program evolution andoutcomes Central storage and management of all projectdata 13. Measuring Program success Delivering the program to the client on time andwithin the dates specified in the agreement, takinginto account any amendments or approved changerequests Achieving the financial objectives set forth in thebusiness case, taking into account any amendmentsor change controls Meeting all expectations related to quality andfulfilment of program requirements Adhering to an established program methodologymeasured by a joint governance board Achieving overall client satisfaction and repeatbusiness 14. PMO Tools of engagement Overview and statement of purpose Communication plan Integrated program schedule Program quality plan Program risk management plan Program issue management plan Program change management Program monitoring and controlmanagement 15. Elements of good programgovernance A compelling business case, stating the objects of theproject and specifying the in-scope and out-of-scopeaspects A mechanism to assess the compliance of the completedproject to its original objectives Identifying all stakeholders with an interest in the project A defined method of communication to each stakeholder A set of business-level requirements as agreed by allstakeholders An agreed specification for the project deliverables The appointment of a project manager Clear assignment of project roles and responsibilities 16. Elements of good programgovernance.contd. A current, published project plan that spans all projectstages from project initiation through development to thetransition to operations. A system of accurate upward status- and progress-reportingincluding time records. A central document repository for the project A centrally-held glossary of project terms A process for the management and resolution of issues thatarise during the project A process for the recording and communicationof risks identified during the project A standard for quality review of the key governancedocuments and of the project deliverables 17. Program Communications Plan Sets up approved methods of communication Establishes standard communication procedure Frequency and type of updates provided to theprogram/project stakeholders Provides consistency in information flow Removes misinterpretations and doubts What information to be sent to whom & when Ensures Executive program engagement Helps keep everyone on the same page 18. Communication Plan elements Documented communication paths for information sharing,including tools (VOIP, email, video/Web conferencing, etc.)will be used throughout the program & for projects Program and project contact lists based Roles and responsibilities matrix for all stakeholders A program organization chart to identify high-levelorganization, reporting, escalation and accountability for theprogram. Approval and escalation procedures for decision making Recurring Communication Matrix to ensure timely andeffective communication Program event management plan that ensures the rightevent occurrence reporting about issues, risks, milestones etc 19. Integrated Program Schedule Key program tasks Key program and/or project milestones Duration of the program and projects in it Dependencies related to the program Assigned responsibilities within the program Key deliverables of the program & schedule Program tracking and control mechanism Actual v/s Expected program metrics Measurement and analysis of any deviations 20. Program Quality Plan The quality plan defines the expectations ofquality that will be delivered by the program. The plan addresses the overall approach that willbe adopted by the program and associatedprojects to ensure that quality is deliveredaccording to stakeholder expectations. The quality plan also defines quantitativemeasures that are used to validate quality priorto moving through a quality gate and eventuallyprior to implementation. 21. Program Risk Management Plan The risk management plan is used to define the tolerancefor risk throughout the program life cycle as well as themethods for identifying, recording and addressing riskthroughout the program. The early and frequent identification of risk in a program isessential to meeting cost, schedule and qualityexpectations. Steering committee and program manager to meet on amonthly basis, or as defined in the communication plan, toreview the identified risks, examine each associated actionplan and define updates that need to be initiated. Additionally, the team communicates any newly identifiedrisks that may impact the program as they surface. 22. Sample program riskdistribution chart14%20%6%33%2%12%13%DependenciesRequirementsKnowledgeAvailabilityCommitmentProject sizeComplexity 23. Program Mgr v/s Project MgrProgram manager Project managerIntegrates efforts, continuously assesses and refines approachesand plans, ensures good communication.Plans, organizes, directs, andcontrols the project effort.Directs managers to achieve defined outcomes aligned withbusiness strategy.Manages for on-time delivery ofspecific products.Acts as the implementation arm of the program sponsor(s) and /or steering committee.Manages work within the projectplan framework.Manages managers. Manages technical staff.As Table above shows, the program manager and project manager rolesare quite different from one another. Whereas project managerstypically focus on delivering a specific component, program managerstypically focus on one or more outcomes that are business strategycomponents. 24. Links to Business Strategy Throughout program planning and execution,managers must ensure that the program sustains aconnection to the business strategy. This strategy is dynamic, not static. Both internaland external events affect the enterprise's initiatives, So programs need mechanisms that will maintain alink between the initiative and the business strategy,and provide for effective data exchange andnecessary adjustments. We can divide such mechanisms into two categories:those active during program mobilization andplanning, and those active during execution. 25. Program Mobilization Strategic Review IT goals and strategy Program capital and expenses budget Program benefits definition Program outline Candidate projects identification Program mobilization plan Consulting and staffing agreements A business strategy review Program planning strategy 26. Program execution reviews As the program proceeds, the program plan andschedule should provide for periodic strategyreviews by the program sponsor(s) and / orsteering committee. The schedule for these reviews can be alignedwith the program's phase structure, which cutsacross all of the constituent projects. As a phase-end approaches, reviewers cancompare the program's current state and resultsagainst the then-current business strategy, andpropose needed adjustments. 27. Decisions and Authority An important aspect of program governanceis assigning specific decision-makingauthority to each executive and managementrole. Program managers can hold special groupwork sessions for this purpose and thencreate and distribute a matrix for majordecision areas and roles. Decision hierarchy structure should be clearlycommunicated to all program stakeholders 28. Sample authority matrix 29. Program Issue ManagementPlan Throughout any program, risks are bound to becomeissues needing resolution in accordance with thestrategy defined in the risk management plan. In the likely scenario that an issue arises that has notyet been identified as a risk, the issue managementplan provides strategies and guiding principles forresolving the issue. Recognizing that this theoretical situation is not thetypical situation in the execution of programs andprojects, the same escalation principles identifiedthrough the program organization chart apply in theescalation of issues. 30. Program Change Management Whether due to missed requirements, projectissues or increased scope, a program is bound toencounter change during the life cycle. The program change management plan definesthe authority that the program has to approvechange from an associated project, how saidproject requests change the agreed-to plan How the program should receive approval onchange requests that are beyond its authority isalso defined in this plan 31. Program monitoring & control Event log (includes identified risks, issues,changes, decisions and action items) Project performance information such as keymetrics on realized rate, resource utilization,ROI, duration, deliverables etc Weekly status reports to stakeholders Recommendations for intervention andcorrective actions from senior management Lessons learnt activities from closed initiatives Managing change control requests Effectively manage deviations from baseline 32. Conclusion Establishing a governance framework is asignificant activity requiring participationfrom all the relevant stakeholders The key to a programs success is optimalutilization of the governance framework,policies and best practices Continuous feedback and communication arethe essential ingredients of a Program Program Management is a people thing andmust be projected that way 33. Thank you