Depending on how you answer this question, you are likely to take a different approach to major programmes.
I know you’re asking yourself “How in the world did he connect major programmes to Netflix?” And it’s not just because Netflix is on my mind after bingeing Formula 1or Chef’s Table). But we’ll get to that.
Are Major Programmes all unique?
In recent years, my response to this question has changed. Today, I can say with confidence major programmes are not necessarily unique organisations, but they are different from other forms of organisations, such as enterprises.
Before we go on, let’s make sure we have a common understanding of how we define an organisation or an enterprise. Organisations or enterprises are entities where resources are organised in order to achieve a common goal. These resources can be classified as internal (human, systems, processes, intellectual, etc.) and external (supply chain, market share, etc.).
An enterprise manages internal and external resources very differently from major programme organisations. However, resource management remains relatively consistent amongst major programme organisations.
Enterprises are typically going concerns that (aside from startup) have evolved over time and established processes, systems and resources. The going concern aspect of an organisation is very important; it defines the goal and objectives of the organisation while also implying that the organisation can change and adapt to suit potential externalities.
For instance, consider Netflix—the organisation shifted from a DVD mail service to a streaming service and content developer. This was mostly possible because Netflix is a going concern that is constantly evolving and trying to maximise shareholder value.
It is important to understand that an enterprise exists in a competitive environment where other very similar organisations compete for market share. This competitive environment is an important characteristic of enterprises because it fosters commonality amongst enterprises, allowing them to share common market resources (such as personnel, supply chains, and systems).
The existence of these commonalities makes all enterprises very similar to each other; specific differences may create unique competitive advantages, but these differences are more subtleties than wholesale divergences.
Major programmes are typically created for a specific purpose and have a sunset horizon once the programme is completed, the organisation is dismantled or significantly scaled down and continued with a very different mandate.
For instance, a major programme created to deliver a new subway changes significantly once the system becomes operational; moving from construction to operation. Because of this, resources management strategies for major programmes must be different than those for enterprises.
From a Human Resources standpoint, the long-term horizon of an enterprise also allows the organisation to be more resilient in times of crisis. Resources can be reallocated and new market strategies can be implemented to deal with crises. It can be argued that an organisation that is a going concern has to manage its resources—specifically Human Resources—differently than a major programme.
The Human Resources strategies used for enterprises cannot be replicated in major programmes because their organisational architecture (and behaviour) is very different due to the sunset nature of major programme organisations.
Supply chain management strategies are another area of differentiation between major programme organisations and enterprises. Major programmes have specific phases, unlike enterprises, where there is a certain cyclicality when it comes to supply chain needs.
If we consider the previous subway example, the major programme organisation put in place to deliver such a programme has to go through specific phases such as: feasibility, design construction, test and commissioning, and finally, operations and maintenance. Enterprises repeat the cycles in place until there is a change in corporate strategy or market strategies, but even then, the changes required to the supply chain are more step changes than complete shifts.
Meanwhile, major programme organisations must overhaul the supply chain every time a new phase is reached, preventing the establishment of the long-lasting relationships so critical to an organisation’s success. Therefore, supply chain management strategies are very different between enterprise and major programme organisations. However, these strategies should not differ significantly amongst different major programme organisations, which are designed to deal with very similar sets of circumstances.
Unlike most major programmes, enterprises organise their strategies and practices to suit their ultimate objective. Having concluded that enterprises are different from major programmes, we can also deduce using the same logic that resource management is generally similar across all major programmes. What defines the organisation is the ultimate goal rather than the subject matter of the organisation, product, services offered or programme delivered.
So what do you think: are major programmes all unique? And if not, how can the similarities help our industry take a better approach to major programmes? And perhaps most importantly, what are you watching on Netflix right now? Leave your thoughts and suggestions below.