A simple perspective on projects, programmes & initiatives

I was recently also asked what’s the difference between projects, programmes & initiatives. I therefore wrote this blog and included portfolios too.

Initiatives:

Initiatives deliver change; however, are often on a much smaller scale than projects. They don’t generally need a temporary management structure (such as a project team).

Initiatives usually require minimal governance, however, using a similar approach to projects to define and manage them can be helpful. I am often asked to provide governance for initiatives, as some structure can enable better progress to be made.

I usually develop a 2-page outline project initiation document (PID) to capture all the key areas (including goal, objectives, scope, risks and dependencies). I capture the top-level milestones on a basic project plan and periodically review this with the initiative leader. At the end of the initiative, I then review the PID / plan and discuss lessons learned with the leader.

Projects:

Project deliver both strategic and tactical changes. They have defined start and end-points and deliver tangible products (or outputs) that enable benefits to be realised.

Projects focus on the delivery of outputs to predefined time-scales, costs and quality standards. They require a temporary management structure (including a project team and steering group).

Projects must always have a clearly defined scope to enable the agreed outputs to be delivered within budget, to the agreed time-scales and to the required quality standards.

Projects require robust governance. They must always have a PID, project plan and RAID log to capture and manage key areas such as risks, assumptions, issues and dependencies.

A business case will also be required where project funding is required. Changes are managed via a change request form and updates are generally given on a periodical highlight report. Projects also require other documents to be populated depending on the specific challenge (E.g. Change impact assessment, stakeholder engagement matrix, training and communication plans).

Projects are best managed using stages and gates. At the most basic level, a project will have a minimum of 4 stages: start-up, initiation, execution and closure with a gate review in between each stage.

Following completion, a project is formally reviewed. A post-project report is then generated to capture performance against the areas on the PID and plan, plus the lessons learned, operational handover and details of any outstanding actions, issues and risks.

Programmes:

Programmes also deliver change but on a much greater scale than projects. A programme is defined as a group of related projects that are managed in a coordinated way to deliver outcomes (often intangible) and to realise benefits linked to company strategic objectives. These outcomes and benefits may not have been made available by managing the projects in isolation and will often include cultural and behavioural changes.

Programmes also require a temporary management structure comprising multiples of the above project structure, plus an additional layer for the programme management team which will include the Programme Manager and other key roles such as the PMO (Programme Management Office) and Business Change Managers. Programmes also tend to be much longer in duration than projects and do not have such a tight scope.

Programmes also require robust governance and key documents will need to be developed and managed throughout including a programme plan and RAID log.

Programmes require a vision to be defined (for the future state) and a blueprint to show how the current state links to the vision. Blueprints typically show the organisational structure, skill types and levels, business processes, systems, infrastructure and supporting processes. The blueprint needs to be reviewed regularly throughout the programme to ensure that it is going in the right direction.

Portfolios:

For completeness, I’ve also included portfolios. The term portfolio is used to describe the total number of programmes and projects in an organisation. Portfolio management balances priorities and resources for changes that are being made, ensuring that strategic objectives are met.

Outputs, outcomes & benefits:

I’ve mentioned outputs, outcomes and benefits in the above paragraphs. To demonstrate the relationship between these terms, I’ve developed the following example based upon an airport development programme:

Programme:

• Develop the airport infrastructure, people and processes to gain increased passenger numbers, higher revenue and reduced operating costs

Projects:

• Implement a new customer check-in and baggage drop hardware and systems

• Review and improve the airport security search area and supporting processes

• Implement a new hangar facility and third-party maintenance operator

• Launch a marketing campaign to promote airport improvements and gain increased passenger numbers

Outputs:

• New hardware, new systems, revised processes and staff fully trained in new ways of working at customer check-in and baggage drop.

• New infrastructure and improved processes in the security search area and staff retrained on revised ways of working.

• New aircraft maintenance hangar, tooling & equipment, third-party maintenance provider and approval to operate from aviation authority.

• Billboards, TV, newspaper, journal and online articles promoting the improvements to the airport.

Outcomes:

• Requirement for less people to run the check-in and baggage drop areas

• Improved overall customer satisfaction, hence increased passenger numbers from:

• New ways to check-in and drop bags off (reduced queuing time)

• Improvements made to security area (reduced queuing time and more user-friendly layout)

• Having less disruption to flights (from having a dedicated maintenance hangar facility on the airport (minimal aircraft down-time)).

• Higher passenger numbers resulting from the media campaign

• Improved staff morale and retention from retraining and simplification of roles

• Increased number of flights made available from airlines choosing to fly from this airport rather than from other locations.

Benefits:

• X% reduction in people costs from automating the check-in and baggage drop

• X% increased airport add-on sales from more time for customers in the terminal after getting through security

• X% reduction in maintenance costs (incl. cost of fuel for flights to other bases for maintenance)

• X% increased flight ticket sales from improved overall satisfaction and higher awareness of the improvements made to the airport

• X% increased profits from increased revenue and reduced costs

• X% improvement on staff engagement survey

Summary:

Initiatives are generally smaller in size, shorter in duration and require much less control than projects, programmes and portfolios. Some governance can be helpful to help move things along.

Projects tend to be short to medium-term and are focused on delivering outputs to a predetermined business case, time-scales and quality standards. They require a temporary management structure (including a project team and steering group).

Programmes tend to be much longer in duration and bigger in size than projects. They require a temporary management structure (programme team) to coordinate related projects and deliver outcomes and benefits resulting from the project outputs.

Portfolios comprise the total projects and programmes in an organisation. They exist to focus on the balance of priorities and ensuring that strategic objectives are met.

For simple straightforward changes, initiatives generally suffice. For more complex changes, projects may be required. To enable several related projects to realise the required outcomes and benefits, a programme may be required.

Determining which of the above is appropriate, depends on the level of complexity and size of the challenge. After-all, you wouldn’t use a sledgehammer to crack a nut!

I hope that this has been an interesting and useful read. Please feel free to contact me to see how I can help your business.