Some time ago, I was called to work for a large electrical company to develop my expertise in program management for a business unit. I wasn’t surprised at first, because large companies also do large, complex projects for which normal project management is not sufficient. I had already experienced this in other engagements, actually even as a cause of project imbalances. The group had already cultivated extensive (multi-)project management, but the methodology for program management was still largely immature.
From Theory into Practice
We started with some workshops on the theory and how program management differs from project management. In essence, in addition to the sheer dimension of the initiatives, this is about all the strategic orientation of programs, often only based on a vision or mission, in the context of which the necessary “tactical” projects as well as operational components are then developed.
By assigning the division’s business activities to this point of view, the structures became recognizable as programs. We then developed suitable governance structures from the working level to the management level and subsequently implemented them in the business unit. Because we can already speak of the implementation of strategy into operational management at the divisional level, I would like to refer to this as “operational” program management in this context.
Program Management taken to the next level
Because in the further development we came across an objective that should go far beyond that. What if the internal objectives of the programs were extended “far beyond the borders” to include complete business relationships with key customers?! In other words, we broadened our strategic view on our customers. Growing our customers’ businesses became our mission – and we would grow with them as a supplier of important components “in tow”…
To illustrate: a plant manufacturer works closely with a petrochemical customer, developing oil and gas fields with them and supplying the equipment required for oil and gas extraction as an equipment partner, possibly even as a general contractor for several or even all of the customer’s sites.
Complete rethinking. This meant that we would think deeply into the business model of our customers, support their activities towards their goals and by the way cover their needs for equipment, systems, etc. for implementation from our production as a “preferred supplier”. At the same time, our expertise (not least in program management!) and closely intertwined support (and dependence of customers) would also grow into a strategic partnership that would be designed for the long term.
Strategic Program Management – The Result
An interesting thought, isn’t it? We have implemented it with two of our “top tiers” and thus multiplied sales and profits with them – compared to other customers for whom we have “only” remained a supplier. I’m not allowed to disclose more here 😉.
Of course, such a strategic partnership requires very deep, mutual trust. The client needs to understand the benefit that comes from our program management expertise and get involved in letting us do a lot of the governance. Not everyone is ready for such cross-company collaboration.