C H A P T E R 1. GETTING STARTED

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Whether you are preplanning your project or your project is up and running

and you want to conduct an in-process evaluation or whether you’ve experienced

a failure in some part of your project, you are in the right place.

To begin, let’s set the baseline by establishing some definitions. You may or

may not agree with all the definitions, and that’s okay as long as you understand

how these terms are to be used in the book.

We’ll start with the difference between a project and a program. Everybody

has his own definition, so here’s mine. A project is conducted for a customer

who is internal to an enterprise. A program is conducted for a customer who is

external to the enterprise; a program has legal ramifications between the enterprise

and the customer. (See Figure 1-1.) The discriminator is the legal document

or contract. Stated in another way, a program manager has Profit and

Loss (P&L) and legal responsibility in addition to cost, schedule, and technical

responsibilities. The project manager, on the other hand, has cost, schedule, and

technical assignments. Thus, a program manager needs a slightly different skill

Enterprise

Customer Project

Enterprise

Customer Program

Requirement

Contract

set than a project manager. Some people like to define a program as bigger than

a project or as a collection of projects. While this can sometimes be true when

a large program is subdivided into segments, or Sub Program Offices (SPOs),

this makes projects appear to be less important than programs. They’re not!

Consider the enormity of the Manhattan Project, and I think you will understand

why I have a lot of trouble with that definition.

For simplicity, I intend to use the term ‘‘project’’ throughout this book except

in those cases where the term ‘‘program’’ is called for under this definition.

The second definition is the project and program environment. This consists

of three elements: The customer (the one who creates the requirement), the

enterprise (the company, corporation, or other legal entity), and the project or

program itself. I visualize the program and project environments as shown in

Figure 1-1.

The real difference is that the project is fully contained within the company,

which is the creator of both the requirements and the home of the project. In

the case of the program, however, the customer is outside the company. In this

case, carefully note that the ensuing contract is between the customer and the

company and not the customer and the program. The program is not a legal

entity.