Develop program and project management standards and structure (governance, tools, finance, and reporting) using industry best practices and organizational standards in order to drive efficiency and consistency among projects and deliver program objectives.

As part of the Program Management Professional (PgMP) exam, understanding the concept of developing program and project management standards and structure, is crucial. These aspects form the basis of project management and are necessary in providing the framework within which programs are designed, implemented, and monitored.

Developing Program and Project Management Standards

Program and project management standards provide an approach and methodology for managing programs and projects. These are guidelines that ensure that all projects are managed in a consistent and controlled manner, thereby increasing project success rates. They are used to establish a shared understanding of the principles, practices, and processes needed to manage projects effectively.

Industry best practices, such as those detailed in the Project Management Institute’s (PMI) Project Management Body of Knowledge (PMBOK), can provide a roadmap for setting standards. PMBOK sets out knowledge areas such as scope, time, cost, quality, human resource, communication, risk, procurement, and stakeholder management that program managers should grasp.

To develop such standards, first, an organization should review and understand relevant best practices from industry frameworks. Next, it should evaluate its current situation and needs and then customize the best practices for optimal fit. This could involve adjusting processes, terminology, or tools to match organizational culture, scale, and complexity.

Developing Governance Structures

Effective governance structures lay the foundational layers for the strategic direction of an organization’s portfolio of projects. It helps in decision making, enables alignment with business objectives, and ensures effective resource allocation.

In the arena of program management, governance refers to the framework, roles, responsibilities, and processes that control, direct and manage the programs. It provides a structured method to conduct project decision-making and ensures alignment between the program activities and organizational strategic goals.

Creating a successful governance structure requires a clear understanding of the organization’s strategic objectives, decision processes, and oversight mechanisms. A model from the Project Management Institute (PMI) could be very helpful in this respect, specifying governance roles such as sponsor, project manager, program manager, portfolio manager, along with advisory and review boards.

Tools and Reporting

The right program management tools can significantly enhance a program manager’s ability to manage effectively. These tools help in managing and controlling program activities, facilitate decision-making processes, and improve communication among stakeholders.

Some of the popular tools include Microsoft Project, Basecamp, and JIRA, which can aid in project scheduling, budgeting, resource allocation, and risk management. Similarly, reporting tools like Tableau or Power BI can transform raw project data into actionable insights and help to track program performance against defined metrics.

Reporting needs to be consistent, clear, and aligned with the defined program objectives. This will prevent information overload and ensure that stakeholders receive pertinent information in a timely manner.

Developing Financial Structures

A sound financial structure is necessary to ensure that programs are implemented within budget, allowing for optimal allocation and control of resources. This requires understanding of areas such as project budgeting and estimate techniques, cost control, and financial risk assessment.

Program managers must put in place strategies for managing the finances of their programs. This can include implementing financial tracking tools, constant budget monitoring, and establishing contingency reserves to deal with potential risks. In all these, aligning with industry best practices and organizational standards is advised.

Conclusion

While each of these areas is important in its own right, successful program managers understand that they are interrelated. The right balance will help drive efficiency and consistency among projects, which in turn will dramatically enhance the chances of achieving the program’s objectives.

Therefore, developing program and project management standards, governance structures, tools, financial structures, and reporting abilities is a critical skill that PgMP aspirants should focus on, ensuring they are equipped with the knowledge and ability to streamline processes, make effective decisions, and ultimately lead to program success.