Project Management

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Program Management Costs

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Joe Mooney Senior Technology Project Manager| Independent Consultant Oviedo, Fl, United States
Does anyone have any reliable statistics that describe the cost of program management as a percentage of the program? Is 5% a good bellweather? Does it differ from public to private sector? Does program management technology offer significant cost savings?

Thanks for steering me if there is a source out there.
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Hans Robbers Senior Director| Salesforce Vlissingen, Netherlands
The rules of thumb I use over the years are

1. minimal effort
A pm must spent between 1 and 1.5 day minimal to a project to allow for sufficient reporting, steering the team and managing the stakeholder environment. In my experience if a pm spents less time he either delegates tasks or skips tasks

2. average is between 10 to 20%
10 % for small projects less than 7 FTE in the team
15% average for teams of 7 FTE or a number of teams with dedicated team leads (these team leads follow the same rule thus 1 day minimal with a maximum of 15% of the effort of their team)
20% for complex projects which require a lot management attention towards the stakeholder group.

3 +5% in case of
- high administration needs ( a pmo needs to be installed)
- when meetings like team meetings must be a part of the project management effort

Hopes this helps

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