[2025] Program Management Fundamentals

 Imagine you have to install a new accounting system in a number of countries.
This can be very complex.
Each country will have different requirements, and, as always, resources are limited.
 

So what does a program manager do and what skills does she need to have? First off, the program manager needs to manage all of the project managers that are working on the program.
If you're thinking by now that the project manager must be reporting to the program manager, you're right.
The program manager is responsible for delivering the benefits to the organization, and this is the work that the project managers are completing.
 

What is the common driver of portfolios, programs, and projects? Let's describe how these three areas connect to each other and how they are different.
For starters, organizational strategy drives portfolios, programs, and projects.
The portfolio manager has a close link to the executives within a corporation.
 

 If what you own and what you get are valuable, how does this look for businesses? Organizations are always looking to increase value, and this is the driver of their investments.
What value does an organization own? We group these assets into two categories, tangible and intangible.
A tangible asset would be the money they have, the property they own, and what they produce.
 

 Within any assignment, it's good to have a checklist to make sure that you have everything covered.
The program life cycle is just that for a program manager.
Here we'll take a peek at the program life cycle management in all its phases.
 

 Do you thrive under uncertainty? Then program management is just for you.
Within a project, you may or may not know much about how you're going to reach the end but one thing's for sure, the further you move along in your project, things become clearer and the chances of you predicting the project outcome gets better and better.
The project manager doesn't have to worry too much about strategy, she just has to concentrate in getting something out the door.
 

Did you know that in Toyota's vision statement they don't mention cars once? They talk about mobility and getting people around.
Let's look at an organization's vision, mission, strategy, and objectives, and how all these parts fit together.
A company's vision describes why they exist and the statement should be the real driver for an organization.
 
 

 What do you do to make sure your program stays in line with the organizational strategy? We'll look at the four components that help the program manager to make sure she stays in alignment with those ever-changing company wishes.
Let's get started.
Our first up is the program business case.
 

 If you cannot identify the benefits the organization is looking for, how do you actually deliver them? Let's look at what benefits identification is, how we do it, and some tools we use to help us along the way.
Simply, benefits identification is pinpointing what value the organization is looking for from our program.
Our first stop is the project charter where the organization justifies the program to begin with.
 
 

The planning work for a program is never finished, but if a program manager doesn't define done, how does she know that she's got there? The program manager starts by defining what needs to be in the benefits realization plan, or when we plan to deliver the benefits.
Here's an example of a program from my past.
I worked for a company who's serviced global clients and our competitive advantage was our multinational footprint.
 
 

This is the moment the organization has been waiting for, so how do you deliver the benefits they expect? Let's look at the activities the program manager will be performing during this phase and some things that you will need to watch out for.
Benefits delivery concentrates on getting the benefits out to the organization.
Some examples would be establishing standard processes, new products for certain customer segments, higher market share, just to name a few.
 

How would you feel if you were to go to the market to, say, buy a carton of milk, you looked at the expiration date and everything looked fine, you get home and open the carton, and you find out that the milk is spoiled? I suspect you wouldn't be too happy.
Now, imagine organizations that spend a fair amount of money in financing programs.
They have great hope and are not happy if the organization cannot use what a program has produced.
 
 

If you don't know what your stakeholders' needs are, how do you know that you've delivered something of value? Let's look at how we identify our stakeholders, how we manage them, and how we keep them involved in our program.
First, let's define who a stakeholder is.
It is anyone who will be positively or negatively affected by your program.
 
 

Can you ever be done if you haven't defined it? Let's look at how program rules are defined, who defines them, and how they are being followed.
Before all that, what is program governance? It's a way of working.
We define what a program is supposed to accomplish, how we keep the program on track, and how the organization can provide support to your program.
 

 It's one thing to know what a program governance board is, but who's actually involved? The first position we will look at is that of a program sponsor who is, in fact, the main person who is accountable for the program.
Why? The program sponsor has mostly likely put together the justification for the program, the form of a program business case, and has the final word on the program.
For example, let's assume a change to the program's scope needs to be made, so the program manager puts together the change request and presents the request to the program governance board.
 

 Who do you call when you need help as a program manager? The primary source of support will be found within the program management office, or PMO.
This department might be part of where the portfolio is managed and will have established a standard of how a program should be run.
What else do we find within a program management office? Any templates used by the programs or project components will be produced and managed there.
 

 Just like a project, a program has a beginning, a middle, and an end.
Let's look at all three phases, what they are called, and the group of activities that are taking place in each phase.
Our journey starts with the program definition phase.
 

If communication with all your project stakeholders is a struggle, imagine the complexity within a program.
A program has many more stakeholders than a project, but this is not the sole reason why communication within a program is so difficult.
Think of your program manager as a PR director.
 

 In its basic form, value is financial.
I'm sure this statement won't surprise you too much, but how does this translate to the world of program management? What do you think your program budget will be primarily based on? Yes, the projects spend the money in producing those deliverables that create the benefits for the program.
This means the program cost estimate will be based on the project component budgets but not exclusively.
 

 If there is one video that describes what a program manager does, it's this one.
Just as the vast majority of the project manager's work is to be found within integration, the same applies to the program manager.
Before we move further, let's define the term "integration.
 

 What do you do if you don't have the necessary resources to run your program? Let's dive into program procurement, when it applies, and what steps you need to follow as a program manager to get this right.
Let's start with a description of what procurement means.
Here we are looking to go outside of our own organization to get the help we need to run our program right.
 
 

 What does quality cost us? If it's cheaper than what we paid for, then we see the value.
What if it costs us more? Let's look at how we manage quality within a program, how we define quality and how it is measured.
You can say that quality's the value your stakeholders are willing to pay for.
 

What makes resource planning so difficult for a program manager? Program uncertainty.
In comparison to a project that becomes clearer through time, the program manager's constantly having to deal with the organizational strategy wildcard.
And your resource planning is in a constant state of flux, so you learn to live with it.
 

Within the program management world, risks are just unplanned events.
A program has the word risk written all over it, because they are found everywhere.
The program manager needs to look for risks at the organizational strategy level, the program level, and the project component level, including between the projects.
 

 If the program components define the tempo of the program, where do a program manager's activities fall in? The program manager is primarily responsible for delivering benefits, so she will have to manage the project components thoroughly.
And these activities make up the brunt of the program schedule management.
When I've been managing programs, the first thing I did every morning was to review the current project component schedules to see that they are on time.
 

 If there is one golden rule within program management, it is the triple constraint.
For a program to stay in time and in budget, the scope should not change.
What happens if your program is no longer in budget? Something has to give.