4

GOVERNANCE AT THE PROGRAM LEVEL

4.1 Overview

This section describes a program and program management; program governance; roles and responsibilities; domains, functions, and processes; and a proposed approach to implement a governance framework within a program life cycle. This section also covers program governance relationships and key considerations. It is recommended that the reader begin by reading Section 1 (Introduction) and then any other sections of interest.

In order to meet organizational strategic and operational goals, program governance is established to provide guidance and oversight of program management activities. Program governance functions and processes are distinct from functional management and managing the work of program components (subprograms, individual projects, and non-project work activities). Program governance focuses on decision making and guidance for program management activities in order to deliver business value to meet organizational strategic and operational goals.

4.2 Program and Program Management

The Standard for Program Management – Third Edition [6] defines a program as “a group of related projects, subprograms, and program activities that are managed in a coordinated way to obtain benefits not available from managing them individually.” Programs comprise various components, primarily subprograms and individual projects within the program. Non-project components or program activities are needed to manage the program itself such as training, operations, and maintenance.

The Standard for Program Management – Third Edition defines program management as “the application of knowledge, skills, tools, and techniques to a program to meet the program requirements and to obtain benefits and control not available by managing projects individually.” Project management is a function formed to manage, coordinate, and direct the implementation of a set of related projects and activities in order to deliver outcomes and benefits related to the organization's strategic and operational objectives. Program management directs and manages program-related activities and tasks across multiple lines of business, single lines of business, or functional areas within an organization. The program manager manages the interdependencies between program components and the integration of activities to improve strategic alignment and optimize the delivery of benefits. Program management enables appropriate planning, control, delivery, transition, and benefit sustainment across the components in order to achieve the program's intended strategic benefits.

4.3 Program Governance

Program governance is established to provide guidance and oversight of the program management function in order to meet organizational strategic and operational goals. The key difference between program governance and portfolio or project governance is that program governance focuses on guidance to deliver program benefits.

4.3.1 What is Program Governance?

This practice guide defines program governance as the framework, functions, and processes that guide program management activities in order to deliver benefits to meet organizational strategic and operational goals. The term “governance framework” refers to the four governance domains with functions, processes, and activities for portfolios, programs, and projects. Governance functions are a grouping of processes related to each other and across governance domains that are performed in order to support governance for portfolios, programs, and projects. Functions are categorized as oversight, control, integration, and decision making. Examples of governance processes are: establish decision-making process, establish risk escalation process, etc. The highest-level governing body may direct or require that governance processes be established. Refer to Section 4.5 for a summary of domains, functions, and processes.

Program performance and progress information is evaluated through program governance to ensure the program achieves its intended benefits and outcomes. Program governance determines whether benefits achievement is occurring within the stated parameters so component changes can be proposed and executed, when necessary. Program governance coordinates the flow of status reports and performance information to portfolio management, governing bodies, program management offices, program sponsors, and other key program stakeholders. Governance guidance, decision making, and processes may cross organizational and functional management areas as well. Program governance guidance and oversight may be provided by portfolio management, governing bodies, or a program management office based on the organizational structure model, roles, responsibilities, and authorities.

Program governance should involve the least amount of authority structure possible because time and costs are associated with governance decision making and oversight activities. The governance required should be considered in the context of the program and organizational environment. Refer to Figure 4-1 for an example of a program governance organizational structure that includes a program governing body consisting of organizational leaders, program sponsor(s), other key stakeholders, the program management team, and program management offices. This governing body provides oversight and decision-making support to the overall program and program manager. The governing body ensures that program goals and planned benefits align with organizational strategic and operational goals. The other governing bodies (e.g., benefits realization) provide oversight and monitoring so that the program benefits are planned, measured, and achieved. Additional, separate governing bodies may exist to provide guidance for specific subprograms, projects, and operations. The component teams include program and project managers, functional managers, and stakeholders. Programs often authorize and govern subprograms, projects, and operations.

4.3.2 Program and Governance Relationships

Programs and governance are interdependent; however, they each have a different purpose. Program components and program activities are managed in a coordinated way to obtain benefits not available by managing them individually. Portfolio governance ensures that the right programs are selected and provides oversight so programs are managed effectively. Ideally, portfolio management and/or governing bodies provide governance guidance for programs and projects. In the absence of or in concert with portfolio governance, program governance should provide guidance and oversight to a program and the program manager.

The individual program components (subprograms, projects, and operations) report and interact through program governance processes on status, risks, changes, and other information affecting the program. The type and frequency of these reports and interactions are specified by portfolio management, governing bodies, and/or program management and are influenced by program reviews and update cycles. Figure 4-2 illustrates the governance relationships for programs within a portfolio structure and outside of a portfolio structure for stand-alone programs. Within a portfolio structure, portfolio governance supporting functions and processes are linked to programs and subprograms through portfolio governance. For stand-alone programs that are outside of a portfolio structure, a governing body provides governance supporting functions and processes to programs. The type and frequency of the governance activities are determined by portfolio governance and/or governing bodies. The portfolio and subportfolios provide governance policies, oversight, control, integration, and decision-making functions and processes to programs within the portfolio structure. A governing body should provide governance policies, oversight, control, integration, and decision-making functions and processes to programs that exist outside of a portfolio structure. Refer to Section 4.5 for a summary of domains, functions, and processes. Programs focus on achieving the specific benefits expected while projects are concerned with creating specific deliverables. Programs provide various program reports, change requests, escalated issues and risks, and benefits realization to the portfolio and subportfolio governance and to the governing bodies.

4.3.3 Program Governance Considerations

Strategic alignment, integration management, and benefits realization are three key considerations for program governance. The program manager or team reviews the actual versus planned benefits to ensure alignment with strategic and operational goals. As organizational strategic changes occur, the program manager and/or sponsor assesses the impact to the program and determines what adjustments are needed in program goals, plans, and components. Also, as changes are requested in the program goals, strategies, or plans, program governance provides the decision-making mechanism to respond to the proposed strategic changes. As changes are made to program goals, strategies, or plans, continuous strategic alignment may impact the benefits that were planned and delivered.

Another key consideration for program governance is the oversight of integration management. Integration activities should include strategic alignment of the program goals with organizational strategy and within the program's components, communicated integrated roadmap, integrated dependency management, and integrated performance reporting. Program governance should review the integrated outcomes of subprograms and projects to assess the continued alignment with the intended strategy and the expected delivery of benefits. Integration activities should include coordination and alignment of individual processes (subprograms, projects, and operations) to ensure alignment with the overall program governance processes and to ensure that oversight is provided for escalated issues or risks, effort is not duplicated, and that decision making is provided in a timely manner. Processes should include triggers and thresholds required for corrective or preventive actions.

The delivery of business value through benefits realization is a key area for program governance, which includes benefits delivery, transition, and sustainment. Program governance is critical to support the delivery of benefits expected by the organization. Benefits performance information is evaluated through program governance. Therefore, program governance should provide oversight, control, integration, and decision-making functions to guide benefits realization.

Some program outcomes may be unpredictable, changes in the program may be required, and programs may not have a well-defined ending due to the uncertain timing of the realization of intended benefits; therefore, governance functions are critical due to this ambiguity and due to the need for continual decision making. The extent and rigor of program governance practices may depend upon the nature of the program, its size and complexity, and, foremost, the level of program risk and value to the organization.

4.4 Roles and Responsibilities

The program governance management plan should identify and describe the individual roles and responsibilities including decision-making accountabilities and authorities. The key roles for program governance are outlined below; however, there may be additional roles depending upon the type and complexity of the program and the role of governance. There may be other responsibilities not included for these roles that relate to management activities. The typical governance-related roles and responsibilities include the following:

• Program governing body. The program governing body should be a collaborative group of participants representing various program-related interests with the purpose of supporting the program under its authority by providing guidance through the governance functions. The members of the governing body are typically executive-level individuals from the organizational groups that support the program's subprograms, projects, and operations. Typical responsibilities include:
  • Provide governance support for the program to include oversight, control, integration, and decision-making functions (refer to Section 4.5).
  • Provide capable governance resources to oversee and monitor program uncertainty and complexity related to achieving benefits delivery.
  • Ensure program goals and planned benefits align with organizational strategic and operational goals.
  • Establish governance-related policies and processes.
  • Conduct planning sessions to confirm, prioritize, and fund the program.
  • Endorse or approve program recommendations and changes.
  • Define and oversee program gate processes.
  • Resolve and remediate escalated program issues and risks.
  • Provide oversight and monitoring so program benefits are planned, measured, and achieved.
  • Provide leadership in making, enforcing, carrying out, and/or communicating decisions.
  • Define key messages to be communicated to stakeholders.
  • Review expected benefits and benefits delivery.
  • Approve program closure or termination.
• Program sponsor(s). The sponsor's role is to champion the program and be accountable for delivering the benefits. The sponsor(s) may be members of the governing body. Typical activities are:
  • Ensure program goals and objectives are aligned with the strategic vision.
  • Monitor and control the delivery of benefits to enable success of the program.
  • Remove barriers and obstacles to program success.
• Program manager(s). The program manager's role is to interface with the governing body and sponsor and to manage the program to ensure delivery of the intended benefits as follows:
  • Assess the governance framework including organizational structure, policies, and procedures and, if required, establish the program governance framework.
  • Ensure program conformance to governance policies and processes.
  • Manage program interactions with the governing body and sponsor.
  • Monitor and manage program risks, performance, and communications.
  • Monitor and report on overall program funding and health.
  • Assess program outcomes and request authorization from the governing body to change overall program strategies.
  • Assess, report, and escalate critical risks and issues to the governing body.
  • Create, monitor, and communicate program integrated roadmap and key internal and external dependencies.
  • Manage, monitor, and track overall program benefits realization.
• Project managers. The project manager's role is to interface with the program manager and/or project sponsor and manage the delivery of the project's product, service, or result. Responsibilities include:
  • Manage project interactions with the program manager, governing body, and sponsor.
  • Ensure project conformance to governance policies and processes.
  • Monitor and manage project risks, performance, and communications.
  • Assess, report, and escalate critical risks and issues to the program manager or governing body, as appropriate.
  • Manage internal and external dependencies for the project.
  • Ensure engagement of key stakeholders.
• Other key stakeholders. Other key stakeholders’ roles are to support program and organizational changes. Stakeholders perform as follows:
  • Support the program governance team and execution of program components to ensure that defined goals are being met.
  • Support program governance-related organizational changes.
  • Support the program governance team to determine the impact of changes.
  • Support any changes impacting the outcome of the program and components.
  • Represent the functional area on the governing body, when applicable.
• Program management office (PMO). The role of the program management office may vary. The program may have its own PMO, or a PMO may support several programs. Typically, the PMO supports the program by doing the following:
  • Support the program by standardizing governance processes and by providing progress information, knowledge sharing, and consolidated reporting.
  • Facilitate the sharing of resources, methodologies, tools, and techniques.

4.5 Program Governance Domains, Functions, and Processes

The generally recognized processes for program governance are categorized by the domains and functions summarized in Table 4-1. The related functions and processes are grouped into four governance domains: governance alignment, governance risk, governance performance, and governance communications. Governance-supporting processes, activities, and tasks are categorized by the functions of oversight, control, integration, and decision making. These processes are not role specific and pertain to all activities in the governance domains.

Generally recognized processes do not mean that the processes described should be applied uniformly to all programs. The organization's leadership is responsible for determining what is appropriate for any given program. In the absence of or immaturity of governance practices, the program manager and sponsor(s) should define governance for a given program as detailed in Section 4.6.

The following describes the processes by domain:

• Program governance alignment domain. The program governance charter recommends the governance organizational structure and describes a high-level program governance approach in order to meet organizational strategic and operational goals. The governance charter may be separate or part of the program charter. The program governance management plan may be a component of the program management plan or may be a separate plan. The plan describes how the governance framework, functions, and processes will be performed including governance roles and responsibilities. The plan should be referenced to ensure the program is conforming to established agreements and expectations.
  • A governing body (or board or committee) should be established to ensure continuous alignment with organizational strategy and the delivery of program benefits. Quarterly and/or annual planning should be performed to prioritize the program components in order to align with organizational strategy and to establish the related funding approach. The governing body should manage the program phase gates and other governance reviews such as program quality reviews. The governing body should establish a decision-making framework (rules and procedures) and determine the prioritization of resources (people and assets) based on strategic goals, risk categories, project types, and funding. Based on the decision-making framework and prioritization criteria, the governing body should determine which program components will be added, changed, or terminated or determine whether the program itself should be changed or terminated. The governing body should make go/no-go decisions and reallocate resources based on those decisions.
  • The program manager should integrate the program strategy among the components and ensure the program is aligned with organizational strategy. The program should have an integrated roadmap with strategy execution tracks that indicate alignment with organizational strategy, major events, and dependencies and identify which benefits are to be delivered and when. The governing body should approve the integrated roadmap.
• Program governance risk domain. The program governance risk management plan may be a component of the program management plan or may be a separate plan. Escalation processes for risks and issues should be included in the plan, established, and communicated. The risks and issues should be included in program reviews and also follow the risk/issue escalation processes. The program and components should be monitored and audited based on risk and complexity. Internal/external dependencies should be monitored closely due to the potential impact to benefits delivery. Program-level risks and escalated component risks should be assessed by the program manager and brought to the attention of the sponsor and governing body for decisions as there may be broader impacts across the organization. Dependency management should include identification of dependencies between program components or with external elements. Dependencies should be analyzed and tracked on an ongoing basis.
• Program governance performance domain. The program governance performance management information may be a component of the program management plan and/or the benefits management plan. The plan should include expected performance and benefits to ensure that the program delivers the planned benefits. Reporting and control processes should be established and described in the plan.
  • The full benefits life cycle (identification, planning, delivery, transition, and sustainment) should be monitored and managed as well as the overall health of the program and critical, high-priority components. Performance data should be evaluated to ensure results are within parameters. The governing body should monitor the delivery of benefits through performance reviews. The program's ability to deliver benefits should be continuously monitored and reported. Proposed changes to the program that may impact benefits realization should be evaluated and determined by the governing body.
  • Program components need to be integrated to deliver benefits. The performance and intended benefits of program components should be integrated by means of reporting to the governing body, sponsor(s), and key stakeholders.
• Program governance communications domain. The program governance communications management plan may be a component of the program management plan or may be a separate plan. The plan should describe how and when elements such as program-level risks, performance, and benefits should be reported to the governing body, sponsor, and key stakeholders. Effective governance determines and allocates clear decision rights; therefore, the governing body; program manager; and sponsor's roles, responsibilities, and authorities should be documented and communicated to all stakeholders. The plan should describe how and when various governance decisions are communicated, such as funding, resources, and changes in the program. Decision making by governance should be transparent, documented with justification, and reported to stakeholders.
  • The program integrated roadmap is a key communications vehicle used to indicate how the components are aligned, whether the order and timing are correct, what benefits are being delivered, and how these elements should be communicated to all stakeholders. Program information such as status, policies, procedures, and processes impacting other portfolios, programs, and projects should be communicated to stakeholders.

4.6 Program Governance Framework Implementation

Implementation of program governance should be based on the context of the organization and program. There is no one best program governance implementation approach that would be effective in all situations. The implementation of governance should be tailored to the culture of the organization, types of projects, and needs of the organization. This section describes a structured four-step implementation approach, which is summarized in Figure 4-3. The governance framework implementation approach is a method for the implementation and continuous improvement of governance processes within a given program life cycle. The four steps are assess, plan, implement, and improve, with activities for each step and deliverables. All the activities and deliverables may not apply to all programs, and there may be other activities and deliverables required based on the program scope and organizational context.

Figure 4-4 presents an example of program governance framework interactions by program life cycle phase. These interactions depict the effect that the governance framework implementation has within the program life cycle. A generic program life cycle as detailed in The Standard for Program Management – Third Edition has three phases: program definition, program benefits delivery, and program closure. The governance framework implementation steps are indicated within the program life cycle by program life cycle phase. Governance should be defined, planned, and established in the program life cycle definition phase, implemented during the program benefits delivery phase, and improved during the program closure phase. The framework interactions are iterative during the program benefits delivery phase due to the iterations of component authorization, transition, and closure.

To initiate the assess step, inputs may include a variety of elements as indicated in Figure 4-3. A structured approach to implement or enhance governance functions and processes should add business value to the business unit or the organization.

During the assessment, planning, implementation, and improvement of governance functions and processes, it is important to engage stakeholders in an ongoing manner to help them understand program governance, make the transition, and overcome challenges. This is especially critical when program governance is being implemented for the first time. Another essential element is ongoing communications to gain stakeholders’ support and buy-in for governance execution. The focus of program governance framework implementation has two key focus areas:

• Framework, functions, and processes that need to be identified, created, or enhanced; and
• Human resources and culture that need to support governance adoption or enhancement.

Annex A1 describes the inputs, step activities, and key deliverables for the program governance framework implementation.