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Managing the Tranches-Steps 8 to 13 Tutorial

1 Managing the Tranches Steps 8 to 13

This lesson focuses on the final six steps of the process, ‘managing the tranches’. Let us begin with the objectives of this lesson in the next screen.

2 Objectives

By the end of this lesson, you will be able to: ? Explain steps 8 to 13 of ‘managing the tranches’ ? Describe the responsibilities of various roles in ‘managing the tranches’ In the next screen, we will focus on the eighth step, which is ‘manage people and other resources’.

3 Step 8 Manage People and Other Resources

Resource management strategy defines rules for acquiring and using resources. Resources are often shared across programmes, projects and operational work. The Corporate Portfolio Office or the Programme Office provides a complete picture of resource utilisation and project completion to ensure there are no conflicts. There are some scenarios where it is very critical to manage resources. There is concern among the staff when a tranche nears completion, as they expect changes. In such scenarios, it is helpful to provide extra support to the staff in preparing for transition and new roles. In the next screen, we will focus on the ninth step, that is, ‘procurement and contracts’.

4 Step 9 Procurements and Contracts

The resource management strategy identifies requirements for procurement and contract management within the programme, which are then accordingly defined in the resource management plan. Specific management attention is required for managing suppliers and maintaining the alignment of their activities to prevent them from going off-track. Procurement and contract management activities must be aligned to corporate policies and standards. It may require tailoring to suit the particular needs of programmes. As a part of this step, regular reviews of suppliers and their performance against the expectations and contract must be scheduled. In the next screen, we will focus on the tenth step, which is ‘monitor, report and control’.

5 Step 10 Monitor, Report and Control

Arrangements defined in the monitor, report and control strategy are implemented and used to control progress. These arrangements need the attention of the Senior Responsible Owner or SRO and the Programme Board for frequent interventions and implementations. Regular progress reports from the projects help in monitoring the formal progress, which will keep the programme on track. Monitoring progress may also identify problem areas that require management intervention. It recognises the issues that are to be escalated and the issues on which immediate action should be taken to ensure the programme is on track. Benefits realisation, tracking business performance, benefits achievements and stakeholder issues need to be monitored. A key function of control is to ensure that blueprint and delivery of new capabilities remain internally consistent and coherent. All information provided to the Programme Board must be complete, timely, accurate and relevant. Any significant gap in information or providing outdated information means that the programme is out of control. As significant information comes from projects, reporting mechanisms from projects must be checked regularly. Major exceptions in projects may be approved and escalated to the Programme Manager for timely interventions. All these decisions along with their definitions and instructions need to be present in the monitoring and control strategy. Outcome and benefits achievements with acceptable deviations can be approved. But the tolerance for these deviations must be pre-defined. Benefits realisation exceptions can be dealt with, and appropriate actions must be taken to keep the process in control. Capability delivery escalations need to be managed and additional activities that are required as part of ‘delivering the capability’ need to be initiated. In the next screen, we will discuss the eleventh step, that is, ‘transitions and stable operations’

6 Step 11 Transition and Stable Operations

This step is focused on activities involved in ‘realising the benefits’. A key role of the Programme Board is to maintain focus on transition and organisational stability. Transition can be very disruptive and these plans may need to be detailed to minimise the impact on ongoing business operations. Start of transition is authorised by the SRO and is focused towards moving to a stable state while achieving benefits. Once the outputs have been delivered by projects, use the transition plan prepared earlier in the tranche to initiate transition. These outputs need to be combined and tested to ensure capability is ready for transition. Measurement of performance of the current state of operations must be completed before the transition starts. Transition ends when new outputs are implemented and capabilities are established. Performance measures during the process need to be tracked and the progress of operations to a stable state needs to be ensured. This step needs to continue even after the transition, to ensure that the process does not drift back to the older state. If transition is not performed after thorough preparation, it can lead to severe disruptions in operational capabilities, and improvements may not be pronounced. Fallback and contingency plans need to be identified if the transition takes business performance outside the forecasted acceptable deviation. In the next screen, we will focus on the twelfth step, that is, ‘prepare for next tranche’.

7 Step 12 Prepare for Next Tranche

As the programme progresses, the future state of the programme becomes clearer. Preparation for the next tranche occurs at the end of each tranche. Changes must be made to the programme’s approach based on the lessons learnt during the current tranche. This means that the achievement of the current tranche must be shared. Other information that can be provided to the next tranche include governance rules and organisation structure. The skills and experiences, and specifications for physical environment and infrastructure that might be required for managing the next tranche, also need to be shared. Refining blueprints, benefits maps, benefits profiles and project dossiers are important inputs for the next tranche. All the information baselines are reviewed and refined at the end of each tranche. The business case is also refined if needed. The SRO authorises the beginning of the next tranche with the consent of the Sponsoring Group. Ideally, the business case must be improved after the end of each tranche. In the next screen we will focus on the last step in ‘managing the tranches’, that is, ‘end-of-tranche review and close’.

8 Step 13 End of Tranche Review and Close

‘End-of-tranche’ is reached when all the capabilities planned have been delivered and transitioned into operational use. The ‘end-of-tranche’ review needs to be planned to assess ongoing viability of the programme. This review provides a ‘go’ or ‘no-go’ decision point for the programme. This will indicate that the programme is allowed to proceed to the next tranche, only if it remains viable. Review business case, blueprint, benefits realisation plan and projects dossier and refine them for the next tranche. ‘End-of-tranche’ reviews must include a formal assessment of effectiveness of the programme management activities, including any programme lessons that have been documented during the tranche. Plan for external audit to ensure all possible benefit dependencies have been considered. It is ideal to have both internal and external perspectives for benefits. Internal perspective will involve measuring reduction in costs, while external perspective will assess whether or not benefits realisation is on track. Planned delay can be included between tranches, if the tranche end has been designed to prove that the hypothesis embedded in strategy can work satisfactorily. The delay is required to collect and analyse sufficient benefit measures. With that, we have completed the discussion on all the thirteen steps in ‘managing the tranches’. In the next screen, we will focus on the roles involved in ‘managing the tranches’ and their responsibilities.

9 Roles and Responsibilities

Let us focus on the responsibilities of the Senior Responsible Owner, Programme Manager, Business Change Manager or BCM, and the Programme Office in ‘managing the tranches’. The SRO is accountable for all the activities in the process, from establishing the tranche till the ‘end-of-tranche review and close’. The Programme Manager is solely responsible for establishing the tranche, directing work, maintaining the information, managing people and monitoring processes. However, for activities such as audits and assurance, and alignment between programme blueprint and strategic objectives, the responsibilities are shared with the BCM. The BCM, other than assisting the Programme Manager with all the activities, is also responsible for transition and stable operations. The Programme Office supports all the activities by providing the capability or the required information. In the next screen, we will focus on an example based on the concepts discussed.

10 Managing the Tranches Problem Statement

Chao Yin is the Programme Manager of the Nutri Snack programme at Nutri Worldwide Inc. This programme aims to develop a healthy evening snack. The programme has outlined multiple projects to ensure its success. Assuming that Chao Yin will start working on the first tranche of the programme, the following questions arise: ? What documents will Chao Yin need to start the task? ? How should he interact with the project teams? ? When the first tranche ends, what inputs are required to start the second tranche? We will discuss the answers to these questions in the next screen.

11 Managing the Tranches Solution

The most important input for the first tranche is the approval to proceed after the review of documents created in the ‘defining the programme’ process. The other inputs are the governance documents, management baselines and programme scope. When there are multiple projects outlined in a programme, the Programme Manager needs to ensure that the project teams for the first tranche are identified and are aware of the project needs. The Programme Manager also needs to ensure that the projects have defined tolerance limits and only the risks and issues beyond the defined tolerance limits are escalated. If the project is very critical, the Programme Manager can act as the Project Executive. Else, the Project Executives will regularly report to the Programme Manager with updates. When the first tranche ends and the second tranche begins, the Programme Manager must ensure that programme documents such as plans and strategies are the most recent ones. The Programme Manager must also use the inputs from ‘end-of-tranche review’ of the first tranche to understand the scope of improvement in the current tranche.

12 Summary

Let us summarise what we have learnt in this lesson: ? The final six steps of ‘managing the tranches’ are ‘manage people and other resources’, ‘procurements and contracts’, ‘monitor, report and control’, ‘transition and stable operations’, ‘prepare for next tranche’ and ‘end-of tranche review and close’. ? The SRO is accountable for all the activities in the process, ‘managing the tranches’. ? The Programme Manager is solely responsible for establishing the tranche, directing work, maintaining the information, managing people and monitoring processes. ? The BCM is solely responsible for transition and stable operations. Next, we will look at a few questions based on the lessons covered so far.

  • Disclaimer
  • PMP, PMI, PMBOK, CAPM, PgMP, PfMP, ACP, PBA, RMP, SP, and OPM3 are registered marks of the Project Management Institute, Inc.

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