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PM World Journal                                                                     The Program Tetrahedron
Vol. I, Issue IV – November 2012                                                                   Bob Prieto
www.pmworldjournal.net                                                                         Featured Paper



              The “Program Tetrahedron”:
 A Changed Baseline Control Basis under Strategic Program
                      Management

                                                  By Bob Prieto


In a traditional project management approach, control of project dynamics is often
described by the project management triangle (Figure 1) that shows the need to
balance the competing forces of cost, quality and time. Control bases include estimate,
schedules and various definitions of fit for purpose or quality.
                                             s
                                     ti m s




                                                                          Sc
                                         ate




                                                                          Tim dule
                                   Es ost




                                                                            he
                                      C




                                                                              e




                                                     Project




                                                           Quality
                                                      Fit for Purpose


                             Figure 1 – The Project Management Triangle

Time frames are traditionally those associated with initial delivery of the facility and
generally do not consider activities during the operating and maintenance period.

Under a strategic program management approach the control of program dynamics is
more robust, corresponding to the increased challenges such programs often face
because of factors such as scale, complexity and increased duration. This last factor
drives significant changes in program control bases when time durations encompassing
the entire lifecycle are considered.


© 2012 Bob Prieto                                www.pmworldlibrary.net                            Page 1 of 4
PM World Journal                                                  The Program Tetrahedron
Vol. I, Issue IV – November 2012                                                Bob Prieto
www.pmworldjournal.net                                                      Featured Paper


In such programs the traditional project triangle can be replaced with a “Program
Tetrahedron” where the traditional, three control bases are defined in a more
expansive manner and three new control bases are introduced. This can be seen in
Figure 2.




Here, programs may be defined to encompass initial delivery only, or increasingly, life
cycle delivery of an “outcome”. Costs will encompass all lifecycle costs but also other
“costs” such as environmental and social impacts associated with the other two axis of
the triple bottom line. Time frames will now extend throughout the lifecycle and tradeoffs
between initial schedule and lifecycle performance will come into play. Similarly, quality
will take on new meaning, no longer focused on the initial set of program outputs, but

© 2012 Bob Prieto                  www.pmworldlibrary.net                        Page 2 of 4
PM World Journal                                                  The Program Tetrahedron
Vol. I, Issue IV – November 2012                                                Bob Prieto
www.pmworldjournal.net                                                      Featured Paper


more focused on the quality of lifecycle performance and the quality of outcomes
realized.

While significantly changed, these three control bases will be recognizable to project
management professionals.

Under strategic program management three new control bases are added that may be
more or less recognizable. These include controls around strategic business objectives,
business framework, and system performance.

In more conventional project settings it can be argued that scope and basis of design
serve as surrogates for strategic business objectives. To some degree this is true, but in
large, complex, long duration programs, major failings have been associated with
weaknesses in clarity, articulation and alignment around strategic business objectives.
As a control basis it may represent the most significant challenge in large complex
programs.

Similarly, business frameworks are considered in the form of terms and conditions in
more conventional projects but in large programs these frameworks will evolve, driven
by externalities such as regulatory or tax changes; technology obsolescence; and
changed competitive environments.

The final new control basis to be addressed goes very much to an outcomes focus by
assessing, measuring and controlling factors such as resiliency, asset flexibility (future
proofing) and risk. Risk should represent a control basis even in the more traditional
project management “triangle” but in a lifecycle program context it takes on more
importance and an expanded set of possibilities to consider.

Conclusion

While the project management triangle has served the industry well, today’s project
challenges and the use of outcomes driven lifecycle program management, considering
each of the triple bottom lines, suggests that a new descriptor may be in order. The
“Program Tetrahedron” reflects the broader set of control bases that today’s programs
require.




© 2012 Bob Prieto                  www.pmworldlibrary.net                        Page 3 of 4
PM World Journal                                                 The Program Tetrahedron
Vol. I, Issue IV – November 2012                                               Bob Prieto
www.pmworldjournal.net                                                     Featured Paper



About the Author


                        Bob Prieto

                        Author




                      Bob Prieto is a senior vice president of Fluor, one of the largest,
                      publicly traded engineering and construction companies in the
                      world. He is responsible for strategy for the firm’s Industrial &
Infrastructure group which focuses on the development and delivery of large, complex
projects worldwide. The group encompasses three major business lines including
Infrastructure, with an emphasis on Public Private Partnerships; Mining; and
Manufacturing and Life Sciences. Bob consults with owner’s of large engineering &
construction capital construction programs across all market sectors in the development
of programmatic delivery strategies encompassing planning, engineering, procurement,
construction and financing. He is author of “Strategic Program Management” and “The
Giga Factor: Program Management in the Engineering and Construction Industry”
published by the Construction Management Association of America (CMAA) and
“Topics in Strategic Program Management” as well as over 400 other papers and
presentations.

Bob’s industry involvement includes recent and ongoing roles on the National
Infrastructure Advisory Council’s Critical Infrastructure Resiliency Workgroup and the
National Academy Committee “Toward Sustainable Critical Infrastructure Systems:
Framing the Challenges”. He is a member of the ASCE Industry Leaders Council,
National Academy of Construction and a Fellow of the Construction Management
Association of America. Bob served until 2006 as one of three U.S. presidential
appointees to the Asia Pacific Economic Cooperation (APEC) Business Advisory
Council (ABAC), working with U.S. and Asia-Pacific business leaders to shape the
framework for trade and economic growth and had previously served as both as
Chairman of the Engineering and Construction Governors of the World Economic
Forum and co-chair of the infrastructure task force formed after September 11th by the
New York City Chamber of Commerce.

Previously, as a senior industry executive, he established a 20-year record of building
and sustaining global revenue and earnings growth. As Chairman at Parsons
Brinckerhoff (PB), one of the world’s leading engineering companies, Bob shaped
business strategy and led its execution.          Bob Prieto can be contacted at
Bob.Prieto@fluor.com.


© 2012 Bob Prieto                  www.pmworldlibrary.net                       Page 4 of 4

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Program Tetrahedron

  • 1. PM World Journal The Program Tetrahedron Vol. I, Issue IV – November 2012 Bob Prieto www.pmworldjournal.net Featured Paper The “Program Tetrahedron”: A Changed Baseline Control Basis under Strategic Program Management By Bob Prieto In a traditional project management approach, control of project dynamics is often described by the project management triangle (Figure 1) that shows the need to balance the competing forces of cost, quality and time. Control bases include estimate, schedules and various definitions of fit for purpose or quality. s ti m s Sc ate Tim dule Es ost he C e Project Quality Fit for Purpose Figure 1 – The Project Management Triangle Time frames are traditionally those associated with initial delivery of the facility and generally do not consider activities during the operating and maintenance period. Under a strategic program management approach the control of program dynamics is more robust, corresponding to the increased challenges such programs often face because of factors such as scale, complexity and increased duration. This last factor drives significant changes in program control bases when time durations encompassing the entire lifecycle are considered. © 2012 Bob Prieto www.pmworldlibrary.net Page 1 of 4
  • 2. PM World Journal The Program Tetrahedron Vol. I, Issue IV – November 2012 Bob Prieto www.pmworldjournal.net Featured Paper In such programs the traditional project triangle can be replaced with a “Program Tetrahedron” where the traditional, three control bases are defined in a more expansive manner and three new control bases are introduced. This can be seen in Figure 2. Here, programs may be defined to encompass initial delivery only, or increasingly, life cycle delivery of an “outcome”. Costs will encompass all lifecycle costs but also other “costs” such as environmental and social impacts associated with the other two axis of the triple bottom line. Time frames will now extend throughout the lifecycle and tradeoffs between initial schedule and lifecycle performance will come into play. Similarly, quality will take on new meaning, no longer focused on the initial set of program outputs, but © 2012 Bob Prieto www.pmworldlibrary.net Page 2 of 4
  • 3. PM World Journal The Program Tetrahedron Vol. I, Issue IV – November 2012 Bob Prieto www.pmworldjournal.net Featured Paper more focused on the quality of lifecycle performance and the quality of outcomes realized. While significantly changed, these three control bases will be recognizable to project management professionals. Under strategic program management three new control bases are added that may be more or less recognizable. These include controls around strategic business objectives, business framework, and system performance. In more conventional project settings it can be argued that scope and basis of design serve as surrogates for strategic business objectives. To some degree this is true, but in large, complex, long duration programs, major failings have been associated with weaknesses in clarity, articulation and alignment around strategic business objectives. As a control basis it may represent the most significant challenge in large complex programs. Similarly, business frameworks are considered in the form of terms and conditions in more conventional projects but in large programs these frameworks will evolve, driven by externalities such as regulatory or tax changes; technology obsolescence; and changed competitive environments. The final new control basis to be addressed goes very much to an outcomes focus by assessing, measuring and controlling factors such as resiliency, asset flexibility (future proofing) and risk. Risk should represent a control basis even in the more traditional project management “triangle” but in a lifecycle program context it takes on more importance and an expanded set of possibilities to consider. Conclusion While the project management triangle has served the industry well, today’s project challenges and the use of outcomes driven lifecycle program management, considering each of the triple bottom lines, suggests that a new descriptor may be in order. The “Program Tetrahedron” reflects the broader set of control bases that today’s programs require. © 2012 Bob Prieto www.pmworldlibrary.net Page 3 of 4
  • 4. PM World Journal The Program Tetrahedron Vol. I, Issue IV – November 2012 Bob Prieto www.pmworldjournal.net Featured Paper About the Author Bob Prieto Author Bob Prieto is a senior vice president of Fluor, one of the largest, publicly traded engineering and construction companies in the world. He is responsible for strategy for the firm’s Industrial & Infrastructure group which focuses on the development and delivery of large, complex projects worldwide. The group encompasses three major business lines including Infrastructure, with an emphasis on Public Private Partnerships; Mining; and Manufacturing and Life Sciences. Bob consults with owner’s of large engineering & construction capital construction programs across all market sectors in the development of programmatic delivery strategies encompassing planning, engineering, procurement, construction and financing. He is author of “Strategic Program Management” and “The Giga Factor: Program Management in the Engineering and Construction Industry” published by the Construction Management Association of America (CMAA) and “Topics in Strategic Program Management” as well as over 400 other papers and presentations. Bob’s industry involvement includes recent and ongoing roles on the National Infrastructure Advisory Council’s Critical Infrastructure Resiliency Workgroup and the National Academy Committee “Toward Sustainable Critical Infrastructure Systems: Framing the Challenges”. He is a member of the ASCE Industry Leaders Council, National Academy of Construction and a Fellow of the Construction Management Association of America. Bob served until 2006 as one of three U.S. presidential appointees to the Asia Pacific Economic Cooperation (APEC) Business Advisory Council (ABAC), working with U.S. and Asia-Pacific business leaders to shape the framework for trade and economic growth and had previously served as both as Chairman of the Engineering and Construction Governors of the World Economic Forum and co-chair of the infrastructure task force formed after September 11th by the New York City Chamber of Commerce. Previously, as a senior industry executive, he established a 20-year record of building and sustaining global revenue and earnings growth. As Chairman at Parsons Brinckerhoff (PB), one of the world’s leading engineering companies, Bob shaped business strategy and led its execution. Bob Prieto can be contacted at Bob.Prieto@fluor.com. © 2012 Bob Prieto www.pmworldlibrary.net Page 4 of 4