Page 153 - Global Project Management Handbook

PROGRAM MANAGEMENT AND PROJECT PORTFOLIO MANAGEMENT 7-3

FIGURE 7.2 Hierarchical organizational structure of “large
projects” (project and subprojects).

● Ensuring clear terminology and discarding the unpopular name subproject manager
● Reduction of the complexity of “large projects” through the establishment of smaller,
easy-to-survey project organizations
● Development of several easy-to-read project documents and one lean integrated pro-
gram documentation instead of a “large project” documentation
The use of program management in the project-oriented company ensures better quality,
lower costs, shorter durations, and lower risks of the programs.

THE PROGRAM MANAGEMENT PROCESS

Program management is a business process of the project-oriented company that includes
the subprocesses program start, program coordination, program control, possibly resolu-
tion of a program discontinuity, and program close-down. The program management
process corresponds to the project management process. Programs also must be started,

Project 2 Project X
Project 1

Project Y
Program
office
Program Process
manager manager
Program team

Program
Program organization
owner team

FIGURE 7.3 Flat program organization (standard organization chart).