Page 157 - Global Project Management Handbook

PROGRAM MANAGEMENT AND PROJECT PORTFOLIO MANAGEMENT 7-7

Project:
conception of Program
a program realization

FIGURE 7.6 Chain of a conception project and a
program.

these structures are detailed and concretized. To ensure continuity in this chain, members
of the project organization of the conception project also can take on roles in the program
organization.

Definition of Program Objectives
Because of the large scope and long duration of programs, the objectives of programs are
more dynamic than those of projects. During program assignment, the global program
strategy and program objectives are defined, and these will become adapted and more
detailed during performance of the program start process.
Conception projects in programs are a central instrument for planning the objectives
of follow-up projects and also for adapting the program objectives. The medium- to long-
term durations and the dynamics of programs can make it necessary to plan alternative
program objectives with different end events and schedules. The boundaries of the pro-
gram should, however, always be defined. Programs should not have an open end.

Program Organization Chart and Program Roles

The main difference between projects and programs lies in their organizational design.
This differentiation requires that projects and programs are perceived as temporary orga-
nizations.

Elements of the organizational structures of programs are the projects of the program
and the program-specific roles, that is, program owner team, program manager, possibly
program process experts, program team, and a program office. The program roles and their
relationships to each other can be visualized in a program organization chart (see Fig. 7.3).
The program owner team assigns the program manager and the program office with per-
formance of the program. Strategic decisions of program management, such as selection of
projects to be started, changing of program priorities, and definition of program strategies
toward relevant program environments, are made by the program owner team. The program
owner team also decides about project-related issues that are beyond the decision-making
authority of the program team or the relevant project owner and project manager.
The program owner team should consist of managers of those areas of the company
that will be affected most by the program. There should not be more than four persons in
the program owner team. A speaker for the program owner team is to be nominated who
will act as the first contact person for the program manager. An expanded program owner
team also can include as members representatives of partners and important suppliers.
The role of the program owner team is described in Fig. 7.7.
The program manager is responsible for realization of the program objectives, together
with program process experts and the program office. The program manager ensures the