Projects and programs for implementation

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Projects and programs for implementation

MODULE 6 | 6.4 | STUDENT COMPANION

A project is a temporary organisation created to produce specified business products, as set out in an

approved business case. By contrast, a program is a more flexible, temporary structure that steers related

projects and activities so that together they deliver outcomes and benefits tied to strategic objectives

(definitions associated with the PRINCE2 method).

Projects and programs compared

Project Program

Objective One discrete objective Several related objectives

Management One project manager A program manager over several project managers

Content Several streams of work Several related projects

Change strategy One strategy with one delivery plan One strategy delivered through several plans, each a

project

Duration Shorter Longer, often several years

Link to strategy Supports the business plan; not always tied

directly to strategy

Usually tied directly to strategic goals

Where a strategy has several themes, each theme often becomes a program

Larger organisations group related projects into programs, often one per strategic theme, rather than running

many unconnected projects. Initiatives run as formal projects succeed more often: they get dedicated

resources and are bounded, trackable pieces of work. Detailed scheduling and budgeting tools (network

diagrams, earned value) belong to the Strategic Management Accounting subject.

Corella Partners' advisory growth program (imagined)

A program manager oversees three project managers and manages the dependencies. Staff who work on the

projects tend to become advocates for the strategy.

Project Purpose Depends on

Advisory package Fixed-price advice for small businesses Trained advisers from the academy

Client dashboard Monthly financial performance for clients Data feeds from compliance systems

Training academy Turn compliance staff into advisers Trainers hired; budget released

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A program report card (imagined)

Program goal: advice reaches 40% of fees within three years; 200 advisory clients in year one

Project Owner Next milestone Status Comment

Advisory package for small

businesses

National advisory leader All six offices by July Brisbane pilot complete

On track

Client dashboard product Head of data services Trial with 20 clients by

May

Software build three

weeks lateAt risk

Advisory training academy Head of people First intake trained by

April

Trainers not yet hired

Off track

On track: progressing as approved At risk: could turn red Off track: act now

With a report card, the program manager sees at a glance which projects are on course; it gives each a clear

owner, shows the outlook for key dates, puts the goals at the top, and can be tailored to the organisation.

Governance and risk

Issue What good practice looks like

Benefits, not just outputs A project can be on time and on budget yet miss its benefit; the project owner (a

senior user, sometimes the CFO) is accountable for realising benefits

Governance throughout From the front end of the project to its close-out

Risk management varies Stronger in mature organisations used to complex, risky work; weaker in small or less

mature ones, in cultures that strongly avoid uncertainty, and where it isn't a technical

requirement

Leading virtual teams

Keep trust alive through technology; make every member visible

Make sure differences between people are understood and valued

Run productive meetings and track progress with shared tools

Prefer video for sensitive issues; keep messages meaningful but not overwhelming

Agree response norms (for example, a code meaning 'reply the same day') and match the tool to the task

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Accounting Ahead | Original study resource | accountingahead.com.au

Cloud collaboration tools

Agile teams deliver in short sprints, each producing a usable part of the result; the traditional waterfall approach

moves step by step to one final outcome. Corella builds its dashboard in two-week sprints, with developers in

Perth, accountants in Sydney and testers in Manila.

Benefits Problems to plan for

Lower communication and collaboration costs Training and new skills

Better integration of knowledge and systems Time to implement

More flexibility and reliability Ongoing service costs

Stronger competitiveness; a smaller carbon footprint Security and data-control risks

Six considerations

1. Governance and priority

Separate strategic initiatives from wish

lists; prioritise and resource them

2. Time-phased actions

Each task with its own resources and

deadline

3. Realistic scope

Manage weaknesses, threats and risks;

re-check as markets move

4. Clear definition

Each initiative stands alone, so its purpose

isn't diluted

5. A central program

Regular reports, approved measures,

formal control of changes

6. Staff input

Grounded in operational reality; builds

engagement

In a small organisation, the 'central program' may be one senior manager

Case note: Heathrow Terminal 5

Heathrow's Terminal 5 was a huge construction project, widely praised for finishing on time and on budget. But

when it opened on 27 March 2008, the baggage system failed and staff struggled with car parking and security

checks. British Airways cancelled 34 flights on the first day and about 300 by 4 April, more than 23,000 bags had

to be sorted by hand, and BA put the cost at GBP16 million or more. Two BA directors left in April, and a

parliamentary committee report (3 November 2008) criticised the lack of testing and staff training before opening.

The building was delivered; the benefit, a smooth new terminal, arrived months late.

Sources: Building and The Register, 3 November 2008, on the House of Commons Transport Committee report; TravelMole, 4 April

2008.

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Practice questions

MODULE 6 | 6.4 | TRY THESE BEFORE THE WORKED ANSWERS

Question 1 - Project or program?

Initiative at Seabreeze Hospital (imagined) Separate project, part of a program, or neither? Why?

(a) A new electronic patient record

(b) Training nurses to use the new record

(c) Redesigning ward workflows around the record

(d) Repainting the cafeteria

Question 2 - Read the report card

Harbourside Port Authority (imagined) runs a digital port program. Recommend action for the two projects that

need attention.

Project Status Comment

Online booking portal On track Testing complete

Truck appointment app At risk Vendor four weeks behind

Gate automation Off track 30% over budget; no project owner since the manager

resigned

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Question 3 - Norms for a virtual team

An imagined engineering firm's design team works across Perth, Singapore and London. Propose five norms

covering meeting times, response expectations, tools and documentation.

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Worked answers

MODULE 6 | 6.4 | WORKED ANSWERS - ATTEMPT THE QUESTIONS FIRST

Question 1 - Seabreeze Hospital

Initiative Answer

(a) Electronic record Project within a 'digital wards' program: it depends on (b) and (c)

(b) Training nurses Project in the same program; timing must match go-live

(c) Ward workflows Project in the same program; benefits come only when all three align

(d) Cafeteria Neither: routine maintenance, handled through normal operations

Question 2 - Harbourside Port Authority

Truck appointment app (at risk): meet the vendor to agree a recovery plan; check whether penalties apply;

adjust the launch date of dependent projects; report weekly until green.

Gate automation (off track): appoint a new project owner immediately; review scope and budget with the

program board; decide whether to re-plan, cut scope or pause; apply formal change control to any variation.

Question 3 - Virtual team norms (sample)

A weekly video meeting at 4 pm Perth and Singapore time (morning in London), rotated monthly so no one

always meets out of hours

Message codes: 'today' for same-day replies, 'week' for less urgent items

One shared online workspace for drawings and decisions; no design files sent by email

Decisions recorded in a shared log within 24 hours of each meeting

Video, not email, for disagreements or sensitive feedback

GLOBAL STRATEGY AND LEADERSHIP | M6 | 6.4 | WORKED ANSWERS

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