WIREDGOV

Blog posted by: David Smallwood – Director, e-careers.

Terminology aside, projects and programs are both very different things. Companies should therefore follow a standard in their approach to managing them. For many organizations, however, this is not the case. Some will run programs and call them projects, while others will label everything a program.

According to the International Organization for Standardization (ISO), a program is defined as “a group of related projects and other activities aligned with strategic goals”. Knowing where a project sits is important to understanding where it fits as part of the bigger picture. While a standalone project will often enable other processes and actions, as part of a program, it will have an impact on other projects, and influence the program’s overall strategic outcomes and benefits. Appreciating this difference can change the emphasis an organization places on its projects and programs. Fortunately, there are standards in place around the approach to projects and programs which, if followed, will provide better outcomes for both.

Full understanding

We have standards, frameworks, and methods for a good reason. They are, after all, tried and tested. One such framework, Managing Successful Programs (MSP), teaches us that to run a better program, we need to consider key aspects such as what the program looks like, as well as which roles, behaviors, and principles should be involved. Essentially, it provides program managers with a full understanding of how to run a successful program, and how to blend the different projects under that program’s umbrella to deliver the strategic outcomes and benefits their organization desires.

In addition to this, a method like PRINCE2 allows project managers to run a more successful project. The benefits are significant. By putting PRINCE2 and MSP together, practitioners enjoy both better projects and programs, meaning more successful outcomes for their businesses.

Realizing the benefits

Some companies have recently applied approaches like these to overhaul their project, program, and portfolio environment – separating their organization into projects, programs, and business as usual. While this will often require a significant level of investment – employing consultants to manage the process, for example – it has typically resulted in savings. In fact, these companies have reduced the cost of running their projects and programs by up to a third, on average. Put simply, they are able to do more while saving money.

Conversely, costs can be high for those companies that do not apply best practice approaches. Furthermore, they can experience a failure rate of up to 80% in outcomes.

Measuring maturity

The more mature an organization’s projects and programs become, the more benefits they will deliver, the less they will cost, and the greater impact they will have on the organization overall. For that reason, when applying these standards, companies will often perform a P3M3 (Portfolio, Programme, and Project Management Maturity Model) assessment: a framework for assessing and understanding the capabilities of their portfolio, program, and project teams. By taking such an honest, internal look at their performance, companies can consider what they can do better.

The business benefits of applying well-known, established practices like MSP and PRINCE2 are clear. Despite this, it is important to understand that any improvements should be seen as a step change, rather than attempting to jump from low- to high-level maturity instantaneously.

The addition of Agile

The growing popularity of Agile has complicated matters for those who believe that a method is the be-all and end-all. Many people (wrongly) see MSP and PRINCE2 as strictly waterfall approaches and, therefore, incompatible with Agile. But this is not the case and there is no reason a practitioner cannot use Agile alongside MSP and PRINCE2. It perfectly illustrates the beauty of well-established guidance like MSP and PRINCE2: they can be tailored to suit any environment.

The secret is to see MSP or PRINCE2 as approaches an organization can implement to better control the way its programs and projects are managed – even in an Agile environment. Because, as we have seen, using tried and tested best practice frameworks can deliver huge benefits.