Why Program Management is Essential for IT Projects
1. 1
Why Program Management is
Essential
for IT Projects
Brad Bigelow
Supreme Headquarters Allied Powers Europe (NATO)
2. 2
The Mandatory Bloom’s Taxonomy Slide
After this session, you will be able to:
• Remember the "IT" stands for "Inevitable Trouble"
• Understand that failure is a popular option
• Apply pressure to bleeding projects
• Analyze the sanity of IT project managers
• Evaluate the odds that users will reject a new IT system
• Create support for taking a program management approach to IT projects
9. 9
5 Leading Reasons to Cancel an IT
Project (according to ISACA)
The organizational needs changed.
The project did not deliver as expected.
The project was no longer an organizational
priority.
The project exceeded its budget.
The project did not support the organizational
strategy.
15. 15
Organizational Context
Information Technology Elements
Customized Business Applications
Enterprise-wide COTS Applications
Core Enterprise Service Applications
Operating Systems
Processing and Storage Systems
Network Services
InformationSecurity
ServiceManagement
16. 16
Organizational Context
Scope of IT Projects
Customized Business Applications
Enterprise-wide COTS Applications
Core Enterprise Service Applications
Operating Systems
Processing and Storage Systems
Network Services
InformationSecurity
ServiceManagement
Custom
Development
17. 17
Organizational Context
Scope of IT Projects
Customized Business Applications
Enterprise-wide COTS Applications
Core Enterprise Service Applications
Operating Systems
Processing and Storage Systems
Network Services
InformationSecurity
ServiceManagement
Custom
Development
ERP or Database
18. 18
Organizational Context
Scope of IT Projects
Customized Business Applications
Enterprise-wide COTS Applications
Core Enterprise Service Applications
Operating Systems
Processing and Storage Systems
Network Services
InformationSecurity
ServiceManagement
Custom
Development
Database Engine
Portal
Reports/Forms
19. 19
Organizational Context
Scope of IT Projects
Customized Business Applications
Enterprise-wide COTS Applications
Core Enterprise Service Applications
Operating Systems
Processing and Storage Systems
Network Services
InformationSecurity
ServiceManagement
Upgrading IT
Infrastructure
20. 20
Organizational Context
Scope of IT Projects
Customized Business Applications
Enterprise-wide COTS Applications
Core Enterprise Service Applications
Operating Systems
Processing and Storage Systems
Network Services
InformationSecurity
ServiceManagement
Establishing a Data Center
21. 21
Organizational Context
Scope of IT Projects
Customized Business Applications
Enterprise-wide COTS Applications
Core Enterprise Service Applications
Operating Systems
Processing and Storage Systems
Network Services
InformationSecurity
ServiceManagement
Equipping a New Facility
22. 22
Organizational Context
Scope of IT Projects
Customized Business Applications
Enterprise-wide COTS Applications
Core Enterprise Service Applications (e.g., Portals)
Operating Systems
Processing and Storage Systems
Network Services
InformationSecurity
ServiceManagement
Equipping a New Facility
Establishing a Data Centre
Upgrading IT
Infrastructure
Custom
Development
Database Engine
Portal
Reports/Forms
Custom
Development
ERP or Database
They All Involve Constant
Engagement with the
Organizational Context
23. 23
IT Projects have lots of interfaces
Project
ABC
Customized
Business
Applications
Enterprise-wide
COTS Applications
Core Enterprise
Service
Applications
Operating
Systems
Processing and
Storage
Systems
Network
Services
Information
Security
Service
Management
25. 25
A Project Manager should establish
a bi-lateral control mechanism
at every point where the project:
– Depends on an input from another project
– Provides an output to another project
Interdependency: the Theory
28. 28
But—How Many Projects Deliver Value If …
Project
ABC
Customized
Business
Applications
… they deliver products that are not
interoperable with other custom applications?
29. 29
But—How Many Projects Deliver Value If …
Project
ABC
Core Enterprise
Service
Applications
… they deliver products that are not
integrated with Core Enterprise Applications?
30. 30
But—How Many Projects Deliver Value If …
Project
ABC Operating
Systems
Processing and
Storage
Systems
Network
Services
… they require non-standard
operating systems,
hardware or connectivity?
31. 31
But—How Many Projects Deliver Value If …
Project
ABC
Enterprise-wide
COTS Applications
… they don’t
work with
standard
enterprise-wide
COTS products?
32. 32
But—How Many Projects Deliver Value If …
Project
ABC
Information
Security
… they create security
vulnerabilities?
33. 33
But—How Many Projects Deliver Value If …
Project
ABC
Service
Management
… they require specialized management tools
or skills the organization doesn’t have?
34. 34
The Things that Create Interdependencies
COST RISK
DELAY
RISK
DELAY
COST
35. 35
The Things that Create Interdependencies
… Are Often the Things that Add Value
52. 52
Many organizations are juggling dozens of
IT projects at the same time
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53. 53
Imagine this happening with multiple
projects underway at the same time …
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55. 55
Program Management: The Theory
“Program management
focuses on project
interdependencies and
helps to determine the
optimal approach for
managing and realizing
the desired benefits.”
56. 56
Program Management: The Theory
Program Management Aligns:
• Organizational Strategy
• Projects
• Business as Usual
58. 58
Program Management: The Theory
Program Management
Focuses on:
• Outcomes
• Strategic Concerns
While providing projects
with the freedom to focus
on delivery of outputs
59. 59
And the Theory Behind the Theory:
Adapted from Geoffrey Vickers’ and Peter Checkland’s Model of an Appreciative System
61. 61
Program Management and Integration
Capability (PMIC)
• Started in 2007 to address problems identified with
numerous NATO IT projects:
– Stove-piped implementations
– Duplicated solutions
– Incompatible interfaces
– No mechanism to ensure coherence across projects
– High percentage of projects with major delays and
cost increases
62. 62
PMIC Functions
• Program Governance
• Change Management
• Communications Management
• Risk Management
• Schedule Management
• Cost Management
• Configuration Management
• Quality Management
• Security Management
• Systems Integration
• Architecture Management
• Requirements Management
• Test Management
• Verification & Validation
• Transition Management
• Capability Improvement
An IT Program involves both management and technical functions
65. 65
Key Element: Change Management
Program
Project A Project B
New
Project
Program
Change Management
Issue
Assessment
Program Manager
Project
Issue
Change
Direction
Baseline
Change
Other
Programs
Interface
Change
Industry
Business
Units
Technology
Change
Project
Mandate
Project
Creation
O&M
Partners
Interoperability
Change
Support
Change
66. 66
Interface Management without a Program
Project B
Project C
Project D
Infrastructure
Security
Services
Core Enterprise
Services
Portals
Service
Mgmt
Business
Apps
67. 67
IT Program Scope
Interface Management with a Program
Project B
Service
Mgmt
Infrastructure
Directory
Services
Security Services
Core Enterprise
Services
Portals
Project DProject C
Interfaces, Specifications,
Standards, Development and
Test Support Requirements
68. 68
Key Element: Requirements
Management
Many requirements—
particularly non-
functional
requirements—are
common across all the
projects in an IT
program
Project
D
Project
B
Project
F
Project
E
Project
A
Project
C
Program-wide Requirements
69. 69
Key Element: Configuration Management
Production BaselineDevelopment BaselineFunctional Baseline
Plan Authorization Solicitation
Design
Review
System
Acceptance
Test
Proposed
High-Level
Target
Architecture
Approved
High-Level
Target
Architecture
Detailed
Target
Architecture
Updated
Detailed
Target
Architecture
Updated
Detailed
Target
Architecture
Architecture Management
Program Configuration Management System
Outline
Target
Architecture
Project
Brief
Final
Detailed
Target
Architecture
Project
Closure
Integration Testbed
Virtual Testing
Accessible by Developers
Program configuration management
Let’s take a short look at the history of IT projects
As far back as 40 years ago, the problems of IT and IT projects were already being noted.
And what was noted was the disconnect between IT and the people and organization it was intended to support
Fast-forward 35 years, and the problems are still being written about.
And the disconnect remains the same: between IT and the people and organization it’s intended to support.
It doesn’t take much to find a wealth of case studies and surveys that show that a high percentage of IT projects fail.
According to a survey conducted by ISACA in 2008, these are the five leading reasons that IT projects fail.
Let’s illustrate what this means in simple terms.
If we agree that a project is a mechanism for delivering change, then a successful project would be aligned with the organization’s strategy and take the organization to the level “business as usual” intended to implement that strategy.
A failed project, then, fails because, for whatever reason, it proves not to be aligned with the organization’s strategy, or …
Because it’s not aligned with business as usual and fails to initiate the desired transition, or …
Because it fails to produce the expected results.
If we accept this simple model of a project, let’s take a moment to review the basics of what a typical IT project involves.
This diagram illustrates the major elements of an IT system.
There are many different versions of this diagram, but you can find these same elements in almost every organization’s IT infrastructure.
An IT project, as shown here, might involve development of a new business application using custom-designed software.
It might involve a mix of custom development and implementation of a Commercial-off-the-Shelf (COTS) application such as an Enterprise Resource Program or Database.
It might also involve implementing specialized reports or interfaces to the organization’s web portal.
It might involve upgrade the IT infrastructure—the servers and storage systems—to a new generation of equipment or a new technology such as virtualization.
It could involve a major effort affecting network systems as well, such as establishment of a new data center
Or it could involve every aspect of IT, such as equipping a whole new facility and set of business functions.
Whatever the scope, all IT projects also involve constant engagement with the organizational context—the main source of the problems noted by Lucas as far back as 1975.
Another unique aspect of IT projects is the fact that they are typically rich in interfaces.
The number and complexity of IT project interfaces, when seen from the project manager’s perspective, are prime sources of interdependencies.
In theory, a good project manager will identify where there are interfaces with other projects and activities and establish appropriate control mechanisms to keep track of them.
Unfortunately, in reality, project manager hate interdependencies and try to minimize them wherever possible.
Why? Because of all the undesirable effects that can be introduced through these interdependencies.
Here we come to another problem with IT projects.
Here are a few examples of the dangers of not being prepared to manage a complex set of interfaces and interdependencies.
While a project manager may dislike interfaces as sources of interdependencies and try to minimize them, these are often essential to the ultimate benefits to be achieved from the project.
Which is why conventional project management is not well-suited to deal with the challenges and unique nature of IT projects.
Project management in general is a disruptive activity.
No matter what the scope of the project or the nature of the change it will deliver, there will be numerous sources of resistance that the project manager will have to overcome.
In the case of IT projects, these perennial problems are further complicated by unique factors such as the frequent pace of change in technology, the significant increases in complexity with the proliferation of new capabilities such as mobile computing while legacy infrastructures are also being maintained.
In a nutshell, the unique challenge of IT projects is to deliver an effective set of outputs when many of the other elements of the organization and its IT infrastructure are undergoing numerous changes themselves.
Now, in crudest form, conventional project management involves developing a plan for delivering the required outputs, and then having the project manager oversee the execution of that plan.
And while change management is considered an essential part of conventional project management …
In reality, there is a presumption that changes to the plan are deviations, and hence undesirable. The mechanisms for change control implemented in a typical project become barriers to change, not enablers to change.
What is rarely stated, even in texts such as the PMBOK, is that the rationale for the change will often need to override any of the project’s own resistance to accommodate the change. Very often, the change is due to external factors that have strong justification and need to be embraced, rather than opposed.
There is often a simplistic view—particularly on the part of project stakeholders—that ignores the fact of continual adaptation and replanning and revision of expected outcomes.
This is a big reason why the Agile, adaptive approach to planning and execution has been adopted by so many IT projects.
Now, I want to caveat the rest of this presentation by saying that if you only have one IT project underway, you don’t need program management, because the interdependencies are only at a first order of complexity.
However, having agile, adaptive IT projects is not inherently a good thing …
The fact is that most mid-to-large size organizations will have dozens of IT projects underway at the same time.
Now imagine if all of these projects are agile, adaptive—and rich with interdependencies.
You can quickly see how unmanageable this level of complexity can become.
This is where program management becomes an essential enabler.
Let’s take a moment to review the basic theory and principles of program management.
Even though it’s a guide to project management practices, the PMBOK recognizes the role of program management in dealing with the planning, execution and control of multiple projects.
A leading guide to program management, Managing Successful Programmes, emphasizes that program management focuses on aligning organizational strategy, projects, and business as usual.
Remember the simple illustration from the beginning of this talk?
Here we see how, applying this principle, program management is a mechanism to align the work of multiple projects with organizational strategy and business as usual.
Finally, if we look to the PMI’s own Standard for Program Management, we see the complementary nature of program and project management.
So much for the theory.
How does this work in practice? To answer that, I want to look at how we have applied program management to deal with the challenges of IT project management in NATO.
The PMIC is a program management capability that was established in 2007 to address numerous problems with NATO IT projects that are similar to those found with other IT projects through many case studies and surveys.
A key aspect of PMIC was the fact that it combined both management and technical functions. This is because many of the issues faced by IT projects involve synergies between technical and management concerns. Looking at only one dimension cannot provide an effective mechanism for coordination, planning and control across multiple projects.
Based on a study of best practices, we established a framework of processes that linked each PMIC function to a set of project-level activities across the full lifecycle of a project.
As noted earlier, when dealing with multiple projects, change management quickly becomes uncontrollable if it has to be addressed solely at the project level.
Program-level change management was at the heart of the PMIC framework. We established a program change management function that took on the main responsibility for monitoring external and internal sources of change, of assessing those changes, and of managing how they were dealt with at the project level.
This took a major burden of monitoring and change management off the individual PMs.
One of the simplest ways in which program management can be an enabler to effective IT projects is through its support to interface management.
As already shown, the number and complexity of interfaces is one of the special challenges faced by many IT projects.
With the support of the PMIC, however, we hugely simplified the task of project interface management, consolidating the documentation and control of all interface specifications so that PMs simply had to deal with one process of coordination.
Another key element was program-level requirements management. We quickly realized that there were many requirements that were common across multiple projects and, therefore, better managed centrally by the program to ensure consistency and effective requirements change management.
A final key element that also combined management and technical aspects was configuration management. The program-managed configuration management processes and capabilities ensured that integration could be enabled through a common repository of baselines, including elements running live in a testbed to support local and distributed development and testing.
We’ve now looked at the unique challenges of IT project, seen how conventional project management is ill-suited to deal with them, and looked at the advantages of coordination through the use of program management—in both management and technical dimensions.
So, to sum up my message in one slide, IT program management is an essential enabler to effective IT project management: allowing the projects to focus on their specific deliverables while ensuring they remain aligned with organizational strategy, a changing set of IT infrastructure and business processes, and the ongoing business as usual.
And if it’s done right, the results can be amazing.