Introduction:
When adopting new technology or managing complex organizational changes, multiple projects are often required. These projects may share resources, have interdependencies, and need to operate under a single budget. In such cases, managing these projects as part of a program is often the most effective approach. But how should you structure the program, and which activities should be managed at the program level versus the project level?
In this article, we’ll explore the basics of program management, including what constitutes a program and different types of program structures.
Definition of a Program
A program typically consists of multiple projects that contribute to a shared strategic goal, all under the same business sponsor. Sometimes, large and complex projects are referred to as programs as well.
Key Benefits of Program Management:
- Single Delivery Structure: A single senior sponsor oversees the program’s goal.
- Easier Management of Interdependencies: Conflicts of interest and resource sharing between projects are easier to handle.
- Centralized Resources: Program-level resources (such as IT support) can work on all projects to increase efficiency.
When running projects within a program, the role of the program manager, the program management office, and resource allocation between program and project levels must be clearly defined.
Typical Program Management Structure
Below is a typical program management structure and responsibilities at both the program and project levels.
Table 1 – Phases of Program Management
Phase | Program Level Responsibilities | Project Level Responsibilities |
---|---|---|
Program Strategy & Business Case | Develop an overall strategy and business case for the program, including program-level costs and benefits. Develop project mandates. | Contribute to the program strategy and business case. |
Preparation | Appoint project managers and key team members. Set up governance and develop the program charter. | Appoint remaining team members and establish project-specific governance. Develop Project Charter or Project Initiation Document. |
Design, Development, Testing | Establish principles and constraints for projects. Set the approach to be used in each phase. | Deliver the project within the program framework. |
Support & Benefits Realization | Ensure all projects contribute to the strategic goals and operate within established principles. | Implement the project’s deliverables and contribute to benefits realization. |
Table 2 – Program Management Processes
Process | Program Level Responsibilities | Project Level Responsibilities |
---|---|---|
Phase Management | Determine project phases, start/end dates, and sign-off criteria. | Manage the project within each phase. |
Planning | Establish planning methodology and conventions. Oversee the overall program plan, monitor progress against key milestones, and track the critical path. | Deliver according to the program’s high-level plan. Conduct detailed project planning and progress monitoring. |
Control | Agree on scope, manage risks and governance, allocate budgets, and oversee reporting. | Manage detailed scope, risks, and costs. Report project progress to the program manager. |
Team Management | Manage shared resources, program-level team members, and project managers. | Manage project staff. |
Communications & Change Management | Develop and manage program-wide communication and change strategies. | Conduct communication and adoption activities with stakeholders aligned with the program’s strategy. |
Procurement | Varies depending on program needs. | Oversee procurement activities at the project level as needed. |
Integration | Manage integration points between projects within the program. | Manage integration between the project and “business as usual” functions. |
Examples of Program Structures
Example 1: “Thin” Program Structure
In a “thin” program structure, the program manager provides high-level leadership and direction without delving deeply into the individual project details. This structure is appropriate when projects are relatively independent but require alignment for key interdependencies.
Key Roles in a Thin Structure:
- Program Sponsor oversees the overall strategic direction.
- Program Manager focuses on leading the change strategy.
- Support Person helps with reporting, communications, and logistics.
Example 2: “Thick” Program Structure
In a “thick” program structure, the program manager is more hands-on and deeply involved in managing the details of each project. This structure is ideal for highly interdependent projects, such as rolling out a new system across multiple business units.
Key Roles in a Thick Structure:
- Program Manager manages the design, build, and implementation.
- Program Office provides specialized resources and support to all projects, ensuring consistent application of the strategy across the company.
Four Steps to Decide Your Program Structure
To determine which structure is right for your program, follow these steps:
- Identify Projects: Determine which projects should be managed as part of the program.
- Establish Control Needs: Identify what must be controlled at the program level to meet goals.
- Define Services: Decide which services the program should provide to improve efficiency.
- Manage Cross-Linkages: Identify and manage interdependencies between projects for robust delivery.
Further Program Management Tips
- Customize roles based on the needs of your program to avoid confusion and duplication between program and project offices.
- Ensure that program-level activities support both the program and individual projects.
- Consider stakeholders’ perspectives when defining roles to avoid overloading them with too many points of contact.
Key Points
A typical program structure is a good starting point, but it may need adjustments to fit your specific needs. Review your structure from multiple perspectives to ensure it works for everyone involved, including project team members, program managers, sponsors, and stakeholders.