Types of Programs in Program Management
Martin went on to define programs by their business contribution and lists
four main types: Strategic; Key Operational; High Potential; and Support.
"Strategic" programs are about delivering assets unique to
that organization and directly linked to that area where the organization plans
to compete. The nature of its classification begins to define the kind of benefits
we are anticipating from the program, and the balance of priorities in the shape
of its delivery. The "Key Operational" program, on the other
hand, will deliver assets on which an organization is critically dependent for
the performance of its day-to-day operations. All organizations engaged in a
similar industry will have the same or similar programs. Programs can easily
move from strategic to key operational as the market and competition catch up.
Key operational projects are therefore usually driven by the benefits of improved
business effectiveness, whilst strategic ones are driven by business innovation
and change, and are likely to involve the restructuring of key business processes.
"High Potential" programs are concerned with the delivery
of assets of an uncertain value such as R&D projects. This is where we may
test out ideas of future strategic use. These programs are usually driven by
the creation of future opportunities for business change. "Support"
programs provide assets that are valuable, but not essential to the organization.
The definition of a support program is unique to each organization; one organization's
support asset might well be another's key operational asset. Support programs
are usually driven by business efficiency gains.
This is summarized in Figures 3 and 4.
|
Strategic
|
High Potential
|
|
Projects delivering assets
critical to achieving the
organizational strategy
|
Projects delivering assets
which may be crucial to the
future organizational strategy
|
|
Projects delivering assets
on which the organization
will be critically dependent
|
Projects delivering assets which
are valuable but not crucial to organizational success
|
|
Key Operational Support
|
Support
|
Figure 3. The Program Portfolio, taken from Martin Davies' paper
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Strategic
|
High Potential
|
|
Business Innovation and Change
Business Process Structuring
|
Creating Opportunities for
Business Change
(Proving the potential benefits)
|
|
Business Effectiveness Process Rationalization and Integration
|
Business Efficiency Process
Elimination and Cost Reduction
|
|
Key Operational
|
Support
|
Figure 4. Project benefit Drivers, taken from Martin Davies' paper
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What
is a "Program of Projects" and what Types are There?
