Every company must adapt to market changes and transform its business. How? Through projects, programs, and complex transformation initiatives. For decades, we’ve been talking about portfolio, program, project, and, more recently, epic. But one thing has been missing until now: a common umbrella term that logically groups these levels and describes how organizations structure their work to deliver an outcome.

This is accurately where a new term comes in:

Outcome Delivery Structure (ODS): The totality of all structural levels that serve to realize an outcome.

ODS is a modern, framework-neutral approach that doesn’t replace the familiar levels but organizes them more clearly.

ODS thus covers:

  • classic project structures (PMI, PRINCE2)
  • agile structures (Scrum, SAFe)
  • hybrid models (SAP Activate)
  • service-oriented models (ITIL)

1. Classic hierarchical structures

Classic hierarchical structures include:

  • Portfolio, Level 1 – strategic collection of all initiatives
  • Program, Level 2 – coordinated group of related projects
  • Epic, Level 3 – large work unit broken down into projects
  • Project, Level 4 – clearly defined deliverable with a start and end date
  • Task, Level 5 – smallest operational unit

2. The Agile Hierarchy (SAFe & Scrum)

In a scaled agile environment (SAFe), the terms fit directly into the existing structure:

  • Epic (Portfolio/Solution/Program Level): sits at the very top. It describes a large, strategic initiative (e.g., “Develop a new customer portal”).
  • Feature (Program Level): An epic is broken down into features (e.g., “Login system” or “Invoice overview”).
  • User Story (Team Level): Features are broken down into user stories for implementation (e.g., “As a customer, I want to be able to log in with my email address”).
  • Sprint (Time Frame): A sprint is not a hierarchical work unit, but rather a time-based container (usually 2–4 weeks). Within this container, the team works through a selection of user stories.

Visualization of the SAFe hierarchy with time units:

  1. Portfolio / Solution (Strategy)
  2.      ↳ Epic (months to quarters)
  3.           ↳ Feature (Fits into a PI / Program Increment, approx. 8–12 weeks)
  4.                ↳ User Story (Fits into a Sprint, a few days)

3. Classification in SAP Activate

SAP Activate links agile concepts with traditional project phases:

  • Epic: Corresponds to a major deliverable within a workstream (e.g., in the Application Design & Configuration workstream).
  • User Story: In the SAP context, this is often recorded in the backlog during the Explore phase. It refines the requirements and, at the lowest level, corresponds to the tasks that are implemented in the sprint.
  • Sprint: Takes place primarily in the Realize phase. Here, the user stories prioritized in the backlog are configured and tested in iterative cycles (sprints).

4. Classification in PMI & ITIL

  • PMI (Classic & Hybrid): An Epic corresponds to a broad phase or a large work package in the project structure plan (PSP/WBS). The User Story is the specific, detailed activity. The Sprint replaces the classic, rigid schedule sequence with short, iterative segments.
  • ITIL (Value Streams): An epic and its user stories are the specific requirements that flow through a value stream. The implementation of user stories within a sprint is part of the Design & Transition or Obtain/Build activities, ultimately delivering value to the customer.

5. The Conceptual Gap in All Frameworks

We have perfect terms for structural levels (portfolio, program, epic, feature, project, user story, task), but not a single good term for the state of the deliverable as long as it is not yet in production within the ODS.

I have already clearly defined deliverables and outcome types in my book on SAP Cutover Management.

Definition: Deliverable

A deliverable is a tangible document or artifact (e.g., the complete cutover plan) that is ready for acceptance, versioned, and formally approved.

Definition: Outcome

An outcome type is a milestone or a partial result (e.g., stakeholder workshop, clarification of roles) that is generated, documented, and placed within the overall context as part of a deliverable.

Example: The definition of responsibilities is an “outcome type”—it is incorporated into the deliverable “Roles and Responsibilities Matrix.”

However, there are two types of deliverables in a project. Some relate to the Project Scope and others to the Product Scope, to use PMI terminology. Only the deliverables that relate to the Product Scope are generally transferable to production—that is, relevant to the cutover. One could be pedantic here and argue that some deliverables from the project scope might indeed be transferred, such as Lessons Learned.

Example: The System Integration Test (SIT) and User Acceptance Test (UAT) are deliverables within the Project Scope. Even though they are acceptance criteria for the cutover, they are not transferred. System configurations, new process flows, trained staff, and documents ready for production use are transferable deliverables.

And here is the missing term: Pre-Operational Deliverable (POD)

Definition: Pre-Operational Deliverable (POD) versus Operational Deliverable (OD)

A transferable deliverable is a Pre-Operational Deliverable (POD) as long as it is not yet in production. During the cutover, a POD is transferred to an OD, or Operational Deliverable.

6. Summary

The cutover transforms Pre-Operational Deliverables (PODs) into Operational Deliverables (ODs). This operational transformation always refers to the selected Outcome Delivery Structure (ODS). It therefore makes sense to speak of a project-specific, program-specific, or portfolio-specific cutover, depending on which ODS we are referring to.

Update

This article presents a simplified introduction to the concepts discussed. An extended version including formal definitions, the Outcome Delivery Structure (ODS), Transitional Deliverables (TD), Cutover Deliverable Flow, and the Change Illusion model is available in the Change Illusion Journal.

List of terms