Page 160 - Global Project Management Handbook

7-10 STATE OF THE ART OF GLOBAL PROJECT MANAGEMENT

a “home base” for the program. Program management experts are available in the program
office for the individual projects and for representatives of the relevant environments.
The program team is made up of the program manager, representatives of the program
office, and possibly, program process experts. The active projects of a program or those
that are due to start soon are represented in the program team by the respective project
managers. The composition of the program team changes over time because different
projects are active at different times. The tasks of the program team are to ensure synergies
in the program and to set priorities among the projects of the program.

Program Work-Breakdown Structure

The objectives to be realized in a program require the performance of projects. The pro-
jects of the program therefore are to be depicted in a program work-breakdown structure.
Programs also have tasks to be fulfilled, such as training tasks or program management
tasks that do not require a project organization but can be performed as work packages of
the program.
It is recommended that the objects of consideration of the program be used as a basis for
development of the program work-breakdown structure. Objects of consideration can be,
for example, services and products, regions and markets, objects (e.g., buildings, IT infra-
structure), organizations, and personnel groups. When structuring a program into projects,
a rough process orientation must be ensured. Given the high complexity of programs, there
is a stronger object orientation (such as structuring by location) than in projects.
The projects of a program are performed in parallel as well as sequentially. The
sequential performance of projects in a program leads to chains of projects.
Organizational learning in programs can be ensured through definition of pilot pro-
jects within the program. Pilot projects should have available to them time and room for
reflection and documentation of the experiences gained. The experiences gained in pilot
projects are to be made available to follow-on projects.
During program control, it may become apparent that the dynamics of programs
require the splitting or merging of projects. Splitting projects into several projects and
merging two or more projects into one pose discontinuities for the affected projects. Their
structures must be redesigned.

Program Risk Management

Given that the size, complexity, and novelty of a program, risks are high. There is a danger
of failure or of stopping before completion. The object of consideration in program risk man-
agement is the program, in addition to the risks of the individual projects of the program.
In programs, too, risk analysis, measures to avoid or promote risk, and provisions for
risks and risk control are management tasks to be performed. In programs, a global as
well as a detailed risk management can be performed.
In global risk management, the risks for the program are analyzed without taking into
account the risks for the individual projects and their relationships to one another. The
program is viewed as an individual project.
Detailed risk management for programs accounts for the risks of the individual pro-
jects and the relationships between the risks of the projects of the program. Because of
the relationships between the projects, the program risk is not equal to the sum of the
project risks. The risks of several projects together can have positive or negative correla-
tions, or they can have a neutral effect on each other.