The Standard for Program Management - Fifth Edition

THE STANDARD FOR PROGRAM MANAGEMENT

Fifth Edition

Library of Congress Cataloging-in-Publication Data

Names: Project Management Institute.

Title: The standard for program management / Project Management Insitute.

Description: Fifth edition. | Newtown Square, Pennsylvania : Project Management Institute, Inc., 2024. | Includes index. | Summary: The Standard for Program Management - Fifth Edition identifies program management principles and performance domains and provides guidance on the principles of program management that guide the behaviors and actions of organizations, professionals, and stakeholders who work on or are engaged with programs. The standard provides generally accepted definitions of programs and program management as well as concepts important to their success: program management principles, performance domains, the program life cycle, practices, and supporting activities and tools. This fifth edition of The Standard for Program Management expands and clarifies concepts presented in previous editions. It complements and aligns with the Project Management Institute's (PMI) core foundational standards and guidance documents-- Provided by publisher.

Identifiers: LCCN 2023054477 (print) | LCCN 2023054478 (ebook) | ISBN 9781628258141 (paperback) | ISBN 9781628258158 (epub)

Subjects: LCSH: Project management--Standards.

Classification: LCC HD69.P75 S737 2024 (print) | LCC HD69.P75 (ebook) | DDC 658.4/04--dc23/eng/20231222

LC record available at https://lccn.loc.gov/2023054477

LC ebook record available at https://lccn.loc.gov/2023054478

ISBN: 978-1-62825-814-1

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Table of Contents

THE STANDARD FOR PROGRAM MANAGEMENT

1 INTRODUCTION

1.1 Purpose of The Standard for Program Management

1.2 What Is a Program?

1.2.1 Initiation of Programs

1.2.2 The Relationships among Portfolios, Programs, Operations, and Projects

1.3 What Is Program Management?

1.4 The Relationships among Organizational Strategy, Program Management, Portfolio Management, and Operations Management

1.5 Organizational Business Value

1.6 Role of the Program Manager

1.6.1 Program Manager Competencies

1.7 Role of the Program Sponsor

1.8 Role of the Program Management Office

1.9 Program and Project Distinctions

1.9.1 Uncertainty

1.9.2 Managing Change

1.9.3 Complexity

1.10 Portfolio and Program Distinctions

2 PROGRAM MANAGEMENT PRINCIPLES

2.1 Stakeholders

2.2 Benefits Realization

2.3 Synergy

2.4 Team of Teams

2.5 Change

2.6 Leadership

2.7 Risk

2.8 Governance

3 PROGRAM MANAGEMENT PERFORMANCE DOMAINS

3.1 Program Management Performance Domain Definitions

3.2 Program Management Performance Domain Interactions

3.3 Strategic Alignment

3.3.1 Program Business Case

3.3.2 Program Charter

3.3.3 Program Management Plan

3.3.4 Environmental Assessments

3.3.5 Program Risk Management Strategy

3.3.6 Interactions with Program Management Principles and Other Program Management Performance Domains

3.4 Benefits Management

3.4.1 Benefits Identification

3.4.2 Benefits Analysis and Planning

3.4.3 Benefits Delivery

3.4.4 Benefits Transition

3.4.5 Benefits Sustainment

3.4.6 Interactions with Program Management Principles and Other Program Management Performance Domains

3.5 Stakeholder Engagement

3.5.1 Program Stakeholder Identification

3.5.2 Program Stakeholder Analysis

3.5.3 Program Stakeholder Engagement Planning

3.5.4 Program Stakeholder Engagement

3.5.5 Program Stakeholder Communications

3.5.6 Interactions with Program Management Principles and Other Program Management Performance Domains

3.6 Governance Framework

3.6.1 Governance Framework Practices

3.6.2 Governance Framework Roles

3.6.3 Governance Framework Design and Implementation

3.6.4 Interactions with Program Management Principles and Other Program Management Performance Domains

3.7 Collaboration

3.7.1 Collaboration Factors Impacting Program Success

3.7.2 Collaboration for Benefits and Value Delivery Planning

3.7.3 Program Components and Activities Collaboration

3.7.4 Interactions with Program Management Principles and Other Program Management Performance Domains

3.8 Life Cycle Management

3.8.1 Program Definition Phase

3.8.2 Program Delivery Phase

3.8.3 Program Closure Phase

3.8.4 Interactions with Program Management Principles and Other Program Management Performance Domains

4 PROGRAM ACTIVITIES

4.1 Program Integration Management

4.1.1 Program Integration Management Activities

4.1.2 Mapping of the Program Life Cycle to Program Activities

4.2 Program Definition Phase Activities

4.2.1 Program Formulation Activities

4.2.2 Program Planning Phase Activities

4.3 Program Delivery Phase Activities

4.3.1 Program Delivery Management

4.3.2 Program Performance Management

4.3.3 Benefits Sustainment and Program Transition

4.3.4 Program Change Management

4.3.5 Program Communications Management

4.3.6 Program Financial Management

4.3.7 Program Information Management

4.3.8 Program Procurement Management

4.3.9 Program Quality Assurance and Control

4.3.10 Program Resource Management

4.3.11 Program Risk Management

4.3.12 Program Schedule Management

4.3.13 Program Scope Management

4.4 Program Closure Phase Activities

4.4.1 Program Closeout

4.4.2 Program Financial Closure

4.4.3 Program Information Archiving and Transition

4.4.4 Program Procurement Closure

4.4.5 Program Resource Transition

4.4.6 Program Risk Management Transition

APPENDIX X1

PROGRAM ACTIVITIES, TOOLS, AND TECHNIQUES

X1.1 Program Infrastructure Development

X1.2 Program Change Assessment

X1.3 Program Communications Assessment

X1.4 Program Initial Cost Estimation

X1.5 Program Information Management Assessment

X1.6 Program Procurement Assessment

X1.7 Program Quality Assessment

X1.8 Program Resource Requirements Estimation

X1.9 Program Initial Risk Assessment

X1.10 Program Schedule Assessment

X1.11 Program Scope Assessment

X1.12 Program Change Management Planning

X1.13 Program Communications Management Planning

X1.14 Program Cost Estimation

X1.15 Program Financial Framework Establishment

X1.16 Program Financial Management Planning

X1.17 Program Procurement Management Planning

X1.18 Program Quality Management Planning

X1.19 Program Resource Management Planning

X1.20 Program Risk Management Planning

X1.21 Program Schedule Management Planning

X1.22 Program Scope Management Planning

X1.23 Program Reporting

X1.24 Program Cost Budgeting

X1.25 Component Cost Estimation

APPENDIX X2

FIFTH EDITION CHANGES

X2.1 About This Appendix

X2.2 Objectives

X2.3 Approach

X2.3.1 Format and Layout

X2.3.2 Program Management Content

X2.3.3 Building on the Previous Editions

X2.4 Overview of Sections

X2.4.1 Section 1: Introduction

X2.4.2 Section 2: Program Management Principles

X2.4.3 Section 3: Program Management Performance Domains

X2.4.4 Section 3.3: Strategic Alignment

X2.4.5 Section 3.4: Benefits Management

X2.4.6 Section 3.5: Stakeholder Engagement

X2.4.7 Section 3.6: Governance Framework

X2.4.8 Section 3.7: Collaboration

X2.4.9 Section 3.8: Life Cycle Management

X2.4.10 Section 4: Program Activities

X2.4.11 Appendix X1

APPENDIX X3

CONTRIBUTORS AND REVIEWERS OF THE STANDARD FOR PROGRAM MANAGEMENT

X3.1 Contributors

X3.2 Staff

REFERENCES

GLOSSARY

List of Figures and Tables

THE STANDARD FOR PROGRAM MANAGEMENT

1

Introduction

The Standard for Program Management—Fifth Edition identifies program management principles and performance domains and provides guidance on the principles of program management that guide the behaviors and actions of organizations, professionals, and stakeholders who work on or are engaged with programs. The standard provides generally accepted definitions of programs and program management as well as concepts important to their success: program management principles, performance domains, the program life cycle, practices, and supporting activities and tools. This fifth edition of The Standard for Program Management expands and clarifies concepts presented in previous editions. It complements and aligns with the Project Management Institute's (PMI) core foundational standards and guidance documents, including A Guide to the Project Management Body of Knowledge (PMBOK® Guide) and The Standard for Project Management [1];¹ Process Groups: A Practice Guide [2]; The Standard for Portfolio Management [3]; The Standard for Earned Value Management [4]; The Standard for Organizational Project Management [5]; The Standard for Risk Management in Portfolios, Programs, and Projects [6]; PMI Lexicon of Project Management Terms [7]; Governance of Portfolios, Programs, and Projects: A Practice Guide [8]; The Standard for Business Analysis [9]; and Benefits Realization Management: A Practice Guide [10].

This section defines and explains terms related to the standard's scope and provides an introduction to the content that follows. It includes the following major sections:

1.1 Purpose of The Standard for Program Management

1.2 What Is a Program?

1.3 What Is Program Management?

1.4 The Relationships among Organizational Strategy, Program Management, Portfolio Management, and Operations Management

1.5 Organizational Business Value

1.6 Role of the Program Manager

1.7 Role of the Program Sponsor

1.8 Role of the Program Management Office

1.9 Program and Project Distinctions

1.10 Portfolio and Program Distinctions

1.1 PURPOSE OF THE STANDARD FOR PROGRAM MANAGEMENT

The Standard for Program Management provides guidance on principles, practices, roles, and activities of program management that are generally recognized to support good program management practices and are applicable to most programs, most of the time.

Principles of program management are fundamental norms, truths, or values. The principles for program management provide guidance for the behaviors and actions of people involved in programs as they influence and shape the performance domains to achieve intended benefits.

General consensus means there is general agreement among the experts who produced this standard that the described principles, knowledge, and practices are valuable and useful.

Good practice means there is general acceptance that the application of the principles, knowledge, and practices outlined in this standard will improve the management of programs and enhance the chances of program success, as measured by the extent and effectiveness of benefits delivery and realization. Good practice does not mean that all provisions of the standard are required to be applied to every program, as there is no one-sized fit for all. An organization's leaders, its program managers, its program teams, its value-and-benefits-realization management office, and its program management office (when one is employed) are responsible for determining what is most appropriate for any given program, based on the unique or specific requirements of the program and its sponsoring organization.

The Standard for Program Management is also intended to provide a common understanding of the role of a program manager in general, and especially when interacting with:

Portfolio managers whose portfolios include the program or its components;

Project managers whose projects or components are part of the program;

Program steering committee (which may consist of technical partners or cosponsors that may provide cash or in-kind contribution to a program) that provides specialized inputs to the program manager, program advisory committee, management oversight committee, or program governance board;

Portfolio, program, or project management office;

Portfolio, program, or project team members working on the program or on other subsidiary programs;

Program beneficiaries;

Functional managers/groups and other subject matter experts (SMEs);

Business analysis practitioners;

Managers who are responsible for day-to-day organizational management who may be part of a program;

C-level technical leadership, including chief product owners, chief product managers, head strategy and architecture, enterprise risk, organization change management, etc.;

Strategy staff;

Chief product owner and chief architecture owner;

Other program managers who are part of subsidiary programs within a single program; and

Other stakeholders or stakeholder groups (e.g., organizational executives, operations management, partners, product owners and managers, clients, suppliers, vendors, leaders, donors, end users, regulatory bodies, political groups, business owners, epic owners, enterprise architects, product managers, system architects) who may influence or be influenced by the program.

The Standard for Program Management is intended to be applied according to the PMI Code of Ethics and Professional Conduct [11], which specifies obligations of responsibility, accountability, respect, fairness, and honesty that program managers should abide by in the conduct of their work. The PMI Code of Ethics and Professional Conduct requires that practitioners demonstrate a commitment to ethical and professional conduct, and carries with it the obligation to comply with laws, regulations, and organizational and professional policies.

1.2 WHAT IS A PROGRAM?

A program comprises related projects, subsidiary programs, and program activities managed in a coordinated manner to obtain benefits not available from managing them individually. The components of a program are related through their pursuit of complementary goals that contribute to the delivery of benefits.

Managing program components enhances the delivery of benefits. It does so by ensuring that the strategies and work plans of program components are responsively and proactively adapted to component outcomes or to changes in the direction or strategies of the sponsoring organization. Programs are conducted primarily to deliver benefits to their target stakeholders, sponsor organizations, or constituents of the sponsoring organization. Programs deliver benefits, for example, by enhancing current capabilities, implementing change, creating or maintaining assets, offering new products and services, developing new opportunities to generate or preserve value, minimizing company loss or reputation damage, considering interrelated risk approaches, or implementing a minimal risk entry to a market or a minimal risk exit from a market. In the case of governments, programs can either provide services to beneficiaries or enforce obligations. Such benefits are delivered to the sponsoring organization as outcomes that provide value to the organization and the program's intended beneficiaries, target publics, or stakeholders.

Programs deliver their intended benefits primarily through components that are pursued to produce outputs and outcomes. Programs are typically executed over a longer period of time than projects—although not always—and their outcomes may span multiple phases, cycles, and organizations. Therefore, program management requires a holistic and systemic approach, governing activities as well as a long-term perspective.

Component projects, subsidiary programs, or programs that do not advance common or complementary goals; do not jointly contribute to the delivery of common benefits; and/or are related only by common sources of support, technology, or stakeholders are often better managed as portfolios rather than as programs (see The Standard for Portfolio Management [3]). It is important to clarify that the concept of the program is not always related to the