What are the best practices for Program Managers to deliver projects on time and within budget?

Scope creep is the biggest risk to delivering on time and within budget. To avoid that, you must clearly define the scope, and create a program management plan that manages to that scope.

Defining Program scope is critical and to be aligned with the overall portfolio goal & strategy. Again, the projects under the Program needs to be explicitly defined to avoid any team mis-management, resource mis-management etc. Explicit definition of KPIs to be clarified among stakeholders. However, the synergy could be developed in bringing efficiency with shared resources, shared understanding and knowledge, etc. to reduce loss and unutilized time.

I agree, program governance is a key pillar in a properly managed program. Without proper governance structure it will be challenging to get the right status on time or manage the risks effectively. One item which is missing from the list is the right tools. You need to have a defined set of tools used across the program to streamline the reporting and status. Personally, I tend to encourage automation as much as possible in my programs. Automation helps highlight issues on time and solves for possible inadequate communication.

Apart from the regular cost & schedule controls, focus must be there on asset creation and re-use across similar projects and programs which results in cost savings and reduced delivery timelines. Such simple but profound practice is sometimes ignored and not implemented in practice. This easily helps me improve my project/program margins along with reduced time to market on top of implementation of other regular measures and controls.

Program Managers should establish a robust program governance structure that supports timely and on-budget project delivery. A successful program governance structure is not static but adapts to the evolving needs of the program and its stakeholders.

In my experience, it is often necessary to have a hybrid approach. For example, in today's hardware industry, it is not only about hardware anymore. Many of the parts now require adequate software to allow them to perform properly. While agile approach is the standard now for software industry, it is very challenging to implement it in hardware world where the incremental delivery could be very expensive. In such case the program manager would fins it better to adopt a hybrid approach to connect both worlds together. But this needs to be addressed carefully with a strong governance approach and key milestones respected by hardware and software teams.

Start by identifying program needs. Analyze factors such as program size, complexity, risk profile, and stakeholder requirements. Consider existing frameworks, including popular methodologies like Agile, Waterfall, PRINCE2, or hybrid approaches, to find the best fit Before full implementation, pilot the selected methodology on a smaller project to assess its effectiveness. Be open to adaptation and refinement based on the lessons learned from the pilot, ensuring a tailored and successful integration of the chosen methodology into your program.

My perspective may differ, but I believe that each project phase entails its unique set of best practices. In the initiation phase, formulating a comprehensive budget is undeniably pivotal. Relying on historical data and expert judgment, adding a robust contingency plan to the budget makes it safer against any unpredicted change in pricing, etc. Successful project managers grasp the importance of developing a finely detailed budget and embedding a smart contingency plan in collaboration with the finance department. This serves as a robust defense against risks and minimizes their impact, ensuring resources for strategic adjustments, like expediting the project or covering unforeseen budget line costs.

In program management, proactively identify and assess risks by understanding their potential impact on the program. Develop mitigation strategies and contingency plans to address these risks effectively. Monitor progress and performance by tracking key performance indicators (KPIs) for both the program and individual projects. Regularly analyze data to identify deviations from the plan and take corrective action when necessary. Maintain transparent communication with stakeholders by keeping them informed about potential risks and emerging issues, ensuring timely updates and transparent decision-making throughout the program.

Definitely program resources and risks need to be constantly managed during the program life cycle. In my experience i have seen is that conducting Risk workshop with all the stakeholders helps you to be able to identify the potential risks at every stage of the Program, qualify it, quantify it, have mitigation plan in place. Actually during sales cycle also conducting risk workshop is very useful, while on one side you are working on best deal for the customer with most optimized cost to win over competition to get the deal, if you have conducted risk workshop at this stage you get to know the risks, and put in mitigation strategy and what it will cost to mitigate,so you can add risk cost to your costing and keep it aside as a contingency.

Ensure stakeholder alignment and buy-in by involving key stakeholders in the monitoring and control process. Utilize technology to automate data collection, analysis, and reporting, allowing more time for strategic activities. While monitoring progress, maintain focus on the program's ultimate goals and outcomes, ensuring that monitoring efforts are closely aligned with achieving the desired results.

It is essential to set realistic expectations by clearly defining program goals, timelines, and potential challenges from the outset, thereby preventing disappointment and maintaining trust. Transparency about limitations is crucial; avoiding overpromising and honestly acknowledging potential constraints and risks helps build credibility. Finally, when changes become necessary, communicate them effectively by providing a clear rationale and proactively managing stakeholder expectations to ensure transparency and understanding throughout the process.