outcomes. Programme management is essentially the control system you
use to achieve the desired results or outcomes. The phases and the
dynamic life cycle comprise the dynamic process you are going to employ.
So programme management may be defined as:
the utilization of project management and its inherent processes to manage
effectively a collection of closely interdependent projects in a controlled
and structured manner to achieve some clearly defined objectives identi-
fied as strategic needs.
The processes employed for programmes and projects are similar.
Programme management is primarily concerned to satisfy strategic needs
identified from business planning. Since it involves maintaining an
overview of several interdependent projects, all active with differing time
lines, programme management is closely linked to business management.
Programmes generally use more resources simply because of their size and
are often spread between several locations. The impact of progress or lack
of it must be under constant review in terms of the business benefits
expected, especially as benefits accumulate as projects complete and new
ones start.
The programmes and projects that are approved as active at any time
make up the programme and project portfolio. This portfolio is like an invest-
ment portfolio: some programmes and projects are low risk and a few are
very high risk, and if all succeed, the business will benefit significantly. All
are perceived as essential to success, but priorities do change as new
opportunities arise, and the organization must ensure that adequate
resources and funding are available. So, the definition of programme
management can be extended further. It can now be defined as:
creating the environment where the portfolio of all active programmes and
stand-alone projects is managed to yield defined benefits in pursuit of busi-
ness strategic needs.
As with investments, we need to understand our portfolio – what is in it
and why and how we will benefit. Programme management must create a

• are change oriented – aimed at creating something the organization
needs but does not have;
• are multi-disciplined – needing a wide range of skills to achieve
success;
• benefit from opportunism – requiring short cuts to be taken and old
norms to be bypassed;
• are performance oriented – requiring the setting of appropriate stan-
dards and quality of outputs;
• are control oriented – needing carefully designed controls to maintain
the schedule;
• question tradition – demand that managers avoid getting trapped by
the old ways of doing things.
The primary objective of programme management is to ensure that all the
constituent projects together provide the benefit required, regardless of
the performance of any individual project or sub-project. Other differ-
ences are listed in Table 2.2.
Too often the selection of team members for a project team is controlled
less by the skill-set needed and more by ‘who is available’. Always ensure
18
l
The programme and project environment
you have some part in the selection process. You probably will not have a
free hand to select who you want, but at least exert a strong influence.
Many programmes and projects have run into difficulties because the
wrong team members were selected at the outset. If programme and
project management is accepted as an essential skill in your organization,
you will find it possible to influence senior managers to support your
efforts from the outset.
WHAT IS DIFFERENT ABOUT PROGRAMME AND
PROJECT MANAGEMENT?

• lead the team;
• have team members reporting direct to you alone;
• have a stable team membership in the medium to long term;
• create the conditions for good teamworking;
• set the team norms and behaviours with the team;
• decide responsibilities and coach team members in new skills;
• control the work of the team – input and output;
• build trust and respect in the team;
• encourage the personal growth and development of the team
members;
• encourage sharing of information, opinions and feelings for the team’s
benefit;
• utilize the team’s creative skills to improve team performance;
• appraise the team members’ performance;
• set individual targets to improve performance;
• create a team identity.
The team you bring together for a programme or stand-alone project will
almost certainly have come from different departments in the organiza-
tion, maybe even different sites. Although you must attempt to do all the
things just listed, you will have difficulty with some of them:
• Team members report to you only for their work on the programme or
project and to their line manager for other work – unless they are fully
dedicated to your new team.
• Your team membership is less likely to have stability, owing to chang-
ing priorities of the team members’ line managers.
• With a changing team membership, conditions for good teamwork are
more difficult to create.
• Often team members do not know each other, and setting team norms
takes a considerable time.
• You are in a time-limited situation and can find little time for coaching;

organization may come up with ideas. Creativity and idea generation are
not the exclusive territory of the management. It is the people who do
the day-to-day operational work who often have the best ideas for
improving organizational performance, both in current operations and
in terms of creating new products. To identify how programmes and
projects are derived, it is appropriate to examine their sources in the
organization.
Business planning
Every organization today engages in business planning in some manner. It
is common to have a three- or five-year corporate plan and a shorter one-
year strategic plan. The corporate plan will set the future direction of the
organization and establish broad targets. The strategic plan is a more
detailed documentation of how the organization will meet the corporate
plan through the next financial year.
Incremental growth
Greater effort will be directed towards achieving the operational targets
for the year. Everyone whose job contributes to achieving the growth
of current operations set out in the strategy seeks to improve performance.
Continuous improvement is not to be undertaken via an initiative
or campaign; it should be part of everyday work and a way of life for
Change: programmes and projects
l
21
everyone. Everyone should seek always to find better ways to do the job
so as to make the organization more effective and more efficient.
Sometimes good ideas that come from continuous improvement activity
in one part of the organization may have benefits for other functions. A
considerable effort with a cross-functional team may then be needed to
make a significant change effectively. The organization can gain consider-
ably from treating this type of continuous improvement as a stand-alone

arouse enthusiasm but are still important for the organization and are
always part of strategy. After all, failure to comply may lead to legal and
commercial difficulties or financial penalties.
22
l
The programme and project environment
THE DYNAMIC LIFE CYCLE
Because the programme or project has such specific characteristics, all
limited by time, it naturally goes through a life cycle, just as a product
does. The difference here is that the life cycle is dynamic and subject to
reiteration at any time during the project.
The front end of any programme or project is marked by the initial deci-
sion to proceed. This start-up is often very ‘woolly’ and ill defined, and
will be discussed in more detail in Chapter 5.
All programmes and projects given an initial approval to start go
through a similar life cycle, comprising four fundamental phases:
• Opportunity identified. An opportunity is identified for a new
product, new system or process, new manufacturing facilities or
Change: programmes and projects
l
23
ACTIVE PROGRAMMES
& STAND-ALONE
PROJECTS
NEW IDEAS
OPPORTUNITIES
STEP CHANGE GROWTH
BUSINESS STRATEGIES
CORPORATE
STRATEGIC

• Phase Three: Execution. Phase Three involves launching the actual
work, ensuring everyone understands the plan; the controls you
impose on the process; and making sure the plan is always up to date
with any changes that occur. When all work is successfully complete
and no outstanding major issues are unresolved then entry to Phase
Four is approved.
• Phase Four: Closure. Formal closure is agreed with the customer. All
work is complete and the acceptance and handover signed off. Any
follow-on activities are identified and assigned and the evaluation
process is completed.
THE DYNAMIC ACTION CYCLE
In practice these phases are only a convenient way to help you to separate
the programme or project work into blocks with a defined sequence. The
reality is that no programme or project follows such a neat and simple
process flow without a significant amount of reiteration. At any stage of
the work you may have to:
• revise the definition and scope;
• replan part of the work;
• revise the schedule;
• solve problems;
• carry out recovery planning – to recover lost time;
• carry out contingency planning – in case a high-risk part of the work
goes wrong.
24
l
The programme and project environment
The action cycle gives the basic steps that a programme or project (or any
part of a project) must go through, with the phases identified earlier.
Figure 2.5 shows the cycle in a graphic form.
Completion of any phase in the process requires a decision-making

PLANNING AND SCHEDULING
EXECUTING THE WORK
HANDOVER AND CLOSURE
PHASE 0
OPPORTUNITY
SELECTION
OPPORTUNITIES IDENTIFIED
REVIEW &
EVALUATE
MONITOR
PROGRESS
DEFINE
MONITOR
PROGRESS
PLAN THE
WORK
Problem
PHASE 11
PHASE 0
Problem
Figure 2.5 The dynamic action cycle
technical feasibility of continuing must be reviewed at the same time. In
the past, many development projects (eg for a new product) have become
‘runaway trains’ consuming huge amounts of resources and still subse-
quently failing, with large debt write-offs. The risk of such situations
occurring can be minimized by using a regular review and decision
process.
At each of the steps in Figure 2.5 it may become necessary to recycle the
process and redo some of the work. Such reiteration throughout the
process maintains the dynamics. It provides a check that you are doing

The programme and project environment
Change: programmes and projects
l
27
0
1
5
3B
3C
3
4
3A
GATE ZERO
Decision made by
PST to investigate
further – apply
selection tests &
criteria
GATE ONE
Decision by PST to proceed
with a programme or project.
Gate opens to enter the Definition
Phase 1 of the process. Objectives
validated to customer &
strategic needs
GATE TWO
Decision by PST to continue
with a programme or project.
Gate opens to enter the
Planning Phase 2 of the

OPPORTUNITY
IDENTIFIED
00
11
55
3B3B3B
3C3C3C
33
444
3A3A
GATE ZERO
Decision made by
PST to investigate
further – apply
selection tests &
criteria.
GATE ONE
Decision by PST to proceed
with a programme or project.
Gate opens to enter the Definition
Phase 1 of the process. Objectives
validated to customer &
strategic needs.
GATE TWO
Decision by PST to continue
with a programme or project.
Gate opens to enter the
Planning Phase 2 of the
process, committing resources.
GATE THREE

with strategic needs;
• a ‘GO/NO GO’ decision either to continue or to cancel the programme
or project.
The review outcome is dependent on information you present to the PST.
Occasionally it may even be necessary for you to make specific recommen-
dations concerning revisions to the objectives, scope or current plans, or
even to cancel the work. This ensures that decisions are confronted at the
appropriate time in the dynamic action cycle.
IS THE PHASE GATE A CONSTRAINT?
You may consider that the concept of phase gates is imposing more
bureaucracy on you as the programme or project manager. The only
apparent constraint is preventing some work in the next phase from start-
ing early because resources are available and you keep the work rolling
along.
The real purpose of the phase gate is to focus the mind of everyone with
an interest in your programme or project, encouraging them to take a deep
breath and ask ‘where are we now?’ After a detailed review the PST is
primarily concerned to seek answers to three questions:
• Is the programme or project still viable? The PST must be satisfied that the
planned benefits meet their original expectations and the costs have
not exceeded the planned budget.
• Is the priority the same relative to other programmes or projects? The PST
decides the relative priority of all active programmes and projects,
taking into account the costs, benefits and resource availability.
• Is funding still available? The PST must decide to continue funding the
work when reviewing all other commitments. In some circumstances
the work may be slowed to make money available for other activities.
After a successful review, and if the answers to the above questions are
satisfactory, the next phase gate is opened and a ‘GO’ decision recorded.
However, the PST may instead decide on one of three primary options:

Terminate
Suspend
work
Reiterate
YES
YES
YES
NO
NO
NO
Figure 2.7 The phase gate decisions
ensuring that expenditure is incurred on realistic business needs, and this
approach provides a valuable process. This does not mean creativity is
killed but it does direct all innovation into areas that benefit the business.
It ensures that wild ideas are reviewed in the context of business strategy
even if this is subsequently revised and involves the senior management
team together in making such decisions.
Programme management is an enabling process that focuses on account-
ability for initiating and conducting programmes and projects to grow the
business.
SUMMARY
• Programmes and projects are an essential part of a change process.
• Programme management:
– enables informed decisions;
– ensures focus on the business’s strategic needs;
– helps maintain control of business growth.
• Programmes and projects are a means to:
– implement business strategies;
– achieve step changes;
– continuously improve business performance;

change and particularly developing new products, operating systems or
following specific new business activities.
How many programmes and projects are currently active in your orga-
nization? Are resources stretched beyond the limit of effectiveness? Do
people hop from one project to another according to who shouts loudest
demanding results and progress? Inevitably confusion occurs and people
start to question why they are doing the work. Many of these projects
have been doomed to failure from the day they started because they were
initiated in isolation from the corporate business strategy. Success gives
your manager the kudos for starting the project but with the perception of
failure the outcome is quickly forgotten.
You will frequently come across the complaint that ‘We have too many
projects’, and this is a signal that something is seriously at fault with the
organizational culture. The operations of the business are usually
managed and controlled with a traditional rigid structure of senior
managers (or directors) responsible for specific parts of the business. Each
senior manager manages an element of this structure, with middle-level
and junior managers responsible for departments and sections, all staffed
by the people who carry out the day-to-day work.
In this type of environment strategic planning is conducted at the senior
manager level and may involve other managers. A decision to start a
programme or project that will use resources of the business, possibly at the
expense of other activities, is normally made by the senior management
32
l
The programme and project environment
team. A programme or project manager is then appointed and a team allo-
cated. The first problem occurs at this point. Who decides who is to join
the team? Drawing the resources from different departments across the
organization in a matrix (Figure 3.1) solves the problem, provided you can

PROJECT
MANAGER
CORE
TEAM
EXTENDED
TEAM
Figure 3.1 Programmes and projects in a matrix structure
ORGANIZING FOR OWNERSHIP
To overcome these problems created by the confusion of having many
programmes and projects supposedly ‘active’ requires a clearly defined
organizational structure that is overlaid on the functional hierarchy. To
ensure that all the potentially ‘active’ programmes and projects in the
organization are adequately resourced would usually require a significant
increase in staff numbers!
As we saw earlier, all the organization’s activity is directed towards
supporting the overall purpose of meeting corporate strategic objectives,
either within normal operations or in an attempt to achieve the step
changes desired by the organization (see Figure 2.3). This can be achieved
successfully only through a clear statement of ownership at each level in the
organization, with clearly defined roles and responsibilities.
It is essential that programmes and projects are not initiated as manage-
ment whims at any level but are allowed only when it is demonstrated
that they will make a clear contribution to corporate strategy. To ensure
that this is the case, senior managers must be involved in the process and
have defined responsibilities for the ‘sponsorship’ of all programme and
project activity.
The individual sponsors come from this senior management team, where
authority should be clearly defined. In Chapter 2 the concept of the
programme steering team (PST) was introduced. The PST (Figure 3.2) is
normally drawn from some or all of the senior management team. These

However, do not confuse the PST described here with another approach
you may come across in other project methodologies. In some circum-
stances a programme or project board or review board is established for a
specific programme or project, meeting once a month to review progress.
This board is usually chaired by the sponsor and includes selected individ-
uals chosen for their knowledge, past experience or specialized skills to
advise the sponsor on the conduct of the work. Such a board is totally
internally focused on the programme or project and does not consider any
34
l
The programme and project environment
Programme
Manager
PROGRAMME P1
Project
Manager
Project
Manager
PROJECT S4
PROGRAMME STEERING TEAM
SPONSOR
Executive
Manager
SPONSOR
Executive
Manager
SPONSOR
Executive
Manager
SPONSOR

Manager
PROJECT S3
Sponsor
accountable for
Programme P1
Sponsor
accountable for
Programme P2 &
stand-alone
Projects S1 & S2
Sponsor
accountable for
stand-alone
Project S3
Sponsor
accountable for
Programme P3 &
stand-alone
Project
S4
Figure 3.2 The programme steering team of sponsors
Organizing for programme management
l
35
other unrelated programme activities going on in the organization.
Attempts have been made to establish programme or project boards for
every programme and project initiated in the organization.
This increases the bureaucracy, slows decision taking and adds little
value. The PST has a controlled membership of sponsors only and each has
a focused interest in the business strategy. The PST must meet regularly

PROGRAMME
STEERING TEAM
Concerned with all active programmes
and projects that are of interest to the
Division Management Team.
These are always programmes and
projects that are strictly carried out
within the division, NOT requiring
support and resources from other
divisions.
Figure 3.3 The PST hierarchies in a large organization
• Are considered major activities to achieve strategic objectives of the
whole business.
• Are elevated from a division programme steering team. Although a
programme or project may be totally confined within a division and
its own departments, in certain circumstances the executive PST can
choose to elevate the programme or project because of its strategic
significance. A new sponsor from within the executive PST is then
assigned.
Each PST creates and maintains a programme register that lists:
• all ideas and opportunities currently under or awaiting investigation;
• all active programmes and projects;
• all recent programmes and projects that have been suspended,
cancelled or completed.
If there is only one programme register in the organization then this is the
active programme and project portfolio referred to in Chapter 2. However, if
there is both an executive programme register and several division
programme registers then the programme and project portfolio comprises
all the programme registers in the organization.
The programme register is the key document for all PST meetings as it

order to track progress, particularly as the investigation is using valuable
resources. When such ideas or opportunities are subsequently approved
as a programme or project then the unique identifier number remains on
the list. The PST can decide to change the status at any time to ‘Suspended’
(S) or ‘Cancelled’ (T), when work will cease. It is suggested that the register
be maintained on a database to allow subsequent reference. Programmes
and projects that are completed or cancelled stay on the list for a fixed
period – say three or six months. Suspended programmes and projects
stay on the list until either reactivated or cancelled.
The example register lists some key information for each entry:
• description of the programme or project – the title;
• the name of the sponsor;
• the name of the programme/project manager;
• the date when the proposal or business case is submitted to the PST
for approval;
• the date when the project brief (see Chapter 6) is approved by the PST;
• the date when the baseline plan is approved by the PST;
• current end dates – baseline plan and current forecast;
• the current status – active, completed, suspended or cancelled.
Other data can be added as required, such as ‘location code’ for the loca-
tion by site or otherwise of the programme manager or project manager.
The programme register is intended as a working document, so the data
recorded must be regularly renewed to reflect the current situation for
each sponsor and the PST.
OPERATING A PROGRAMME REGISTER
You need to ensure everyone understands some basic process rules to
operate the programme register effectively. The executive register lists
only the active programmes and projects approved by the executive PST. If
required, ideas and opportunities can also be listed, provided:
Organizing for programme management

4
5
6
7
8
9
10
11
12
13
14
15
DIVISION: General Manager:
Page of pages
Insert:
M: Program
P: Project in program
S: standalone project
SP: sub-project
Insert:
Date proposal
submitted to PST
Insert:
Date Project Brief
approved by PST
Insert:
Date Plan
approved by PST
Insert current Status:
A: Active

Status
Current Planned
End End
B/L Fcast.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
DIVISION: General Manager:
Page of pages
Insert:
M: Programme
P: Project in programme
S: Standalone project
SP: Sub-project
Insert:
Date proposal
submitted to PST
Insert:

programmes and projects is owned by one of the divisions, usually because
this is where the initial idea was proposed, the resources are located and the
work instigated. Some of the work may involve people in one or more other
divisions, and these other divisions should list each of their activities on their
own register as either a project linked to a programme in another division or a
sub-project linked to a project in another division – this may be a stand-alone
project or a project within a programme.
The division owning the programme must show all the projects and
sub-projects on register using the location code to record where the work
is being conducted. The key to ensuring accurate linkage of all these activ-
ities is the programme or project number, which is unique for all the divi-
sions involved. An example is shown in Figure 3.5.
Other projects and sub-projects may be added as the programme
proceeds. These are listed on the Division 1 register and on the registers of
other divisions, as appropriate.
Why record the same information on different registers? Experience has
shown several sound reasons for this procedure:
• Each register is owned by a different management team.
• Visibility of a strategic programme across the organization maintains
focus on important activities.
• Each management team is responsible for the effective utilization of its
resources.
• Each management team must ensure that it does everything neces-
sary to ensure that projects and sub-projects of programmes owned in
other divisions are given the appropriate priority.
In the example shown in Figure 3.5 the members of the executive PST may
decide that Programme 001M is a major strategic programme and elevate
it to their register. If this happens:
• Programme 001M is listed on the executive PST programme register
along with the projects and sub-projects to identify the locations.

001M/P1/SP2
Division 3
Project
001M/P4
Division 2
Sub-project
001M/P4/SP2
Division 2
Sub-project
001M/P1/SP1
Division 1
Sub-project
001M/P1/SP2
Division 3
Sub-project
001M/P3/SP1
Division 1
Sub-project
001M/P3/SP2
Division 1
Sub-project
001M/P3/SP3
Division 2
LISTED ON DIVISION
3 REGISTER
LISTED ON DIVISION
2 REGISTER
• Divisio n 1 owns programme 001M
(M indicates it is a gramme)
• Divisio n 1 owns three project s in the same

Division 1
Sub-project
001M/P4/SP1
Division 2
Sub-project
001M/P1/SP2
Division 3
Project
001M/P4
Division 2
Sub-project
001M/P4/SP2
Division 2
Sub-project
001M/P1/SP1
Division 1
Sub-project
001M/P1/SP2
Division 3
Sub-project
001M/P3/SP1
Division 1
Sub-project
001M/P3/SP2
Division 1
Sub-project
001M/P3/SP3
Division 2
LISTED ON DIVISION
3 REGISTER