The Agile PMO Value-driven Agile Project Management Office PMI NH, 15 th July 2015
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1 The Agile PMO Value-driven Agile Project Management Office PMI NH, 15 th July 2015 Michael Nir President Sapir Consulting US
2 Michael Nir Sapir Consulting US LLC M.Sc. Engineering, PMP, SAFe accredited Author of 11 bestseller business books Global clients - telecoms, hi-tech, software development, R&D environments and petrochemical & infrastructure Integrating the hard and soft parts of Business, Development and more m.nir@sapir-cs.com
3 Starting with the end in mind It is all about value and no, documents don t provide it; A Lean method for selection and prioritization; PMO focus on strategic resources, Agile provides the local empirical leadership; PMO perception leading the change;
4 It just doesn t Work
5 Do you Realize Value from your PMO? TRICKY QUESTIONS How many of you manage a PMO or have a PMO in the organization Have you seen failures? What are the challenges? Yes we have a PMO in the organization and
6 Truly PMOs don t Deliver RESEARCH Gartner 2012 ESI 2013
7 Truly PMOs don t Deliver -2 STATE OF PMOs 2015 >> The PMO Challenge: 72 percent of respondents claimed the PMO had been challenged by senior management. The top two were lack of perceived value (44%); lack of project/program maturity in the organization (41%)
8 50% Failures
9 How did we get here? THE STORY OF PETE
10 The PMO Evolution THE STORY OF PETE Build me a PMO worthy of Seatech! Yes Master
11 The First Steps THE STORY OF PETE What to do? Maybe some research? Analysis of Current state? Interviews? I know
12 The Gap Analysis Stakeholders LEAD EXPECTATIONS No Tools No Tools No Process Training I need a Home Training Worthy PMO Strategic Alignment No Tools
13 The Gap Analysis Executives LEAD EXPECTATIONS I need Reports! Better Control! A methodology NOW Worthy PMO Strategic Alignment
14 PMOs Lose Focus Waste Money Pay me a Lot! I can help PMBOK? PLC I need a Staff Training Need Assessment? New Reports and Templates Support the PMs Maybe Select Tools
15 Discuss with the person next What Would You Do?
16 The Typical next steps PMO FAILURES The tactical PMO The process PMO 50% The chocking PMO The tools PMO
17 Escaping from Process Alcatraz PROCESS PMO The bureaucracy is expanding to meet the needs of the expanding bureaucracy (O. Wilde.)
18 Focusing on Tools not on Value TOOLS TOOLS TOOLS Starting with tools - Eternalizes the wrong WOW
19 We can do Better!
20 The Agile PMO A centralized portfolio management entity that enables faster delivery of products. It has various roles and responsibilities based on the organization structure, the Agile maturity and the specific industry.
21 Agile PMO Value Enablement Resource allocation Control/limit the mix Selection and prioritization Chose the valuable projects The Agile PMO Effective, streamlined delivery reduce waste Agile Leadership
22 Agile PMO Value Enablement Resource allocation Control/limit the mix Selection and prioritization Chose the valuable projects The Agile PMO Effective, streamlined delivery reduce waste Agile Leadership
23 Toyota Defined 7 Wastes
24 Waste in Project Management Manufacturing Transport Inventory Motion Waiting Over Production Over Processing Defects Project Management Redundant or unnecessary interfaces Missing features or gold-plated features Task switching Waiting time Sloppy requirements Project bureaucracy 2nd or more iterations and revisions
25 Reduce Waste Process and Project
26 PMO is best positioned to remove waste of project and process
27 Remove Document Waste
28 Remove Project Scope Waste
29 How Much??? Adding Value by Doing Less The 25/25 Rule: Achieving More by Doing Less Boaz Ronen Tel Aviv University Faculty of Management Thomas G. Lechler Stevens Institute of Technology Edward A. Stohr Stevens Institute of Technology Agile PMO
30 Application: Kanban the Waterfall Cancel projects Prioritize projects Limit projects in queue Limit projects in process BEST PRACTICE EXPERIENCE
31 Remember: when Everything is Important Nothing is
32 Write yourself a note
33 Agile PMO Value Enablement Resource allocation Control/limit the mix Selection and prioritization Chose the valuable projects The Agile PMO effective, streamlined delivery reduce waste Agile Leadership
34 SAFe - Scaled Agile
35 SAFe Selection and Prioritization Kanban Approach Agile PMO
36 PMO is best positioned to Kanban the Selection and Prioritization
37 Create Kanban Buckets for selection
38 Write yourself a note
39 Agile PMO Value Enablement Resource allocation Control/limit the mix Selection and prioritization Chose the valuable projects The Agile PMO effective, streamlined delivery reduce waste Agile Leadership
40 Two Prime Approaches: Global and Local to semi-optimize Traditional PMO - Top down MRP, computer aided, global solution Scope constrained Local Heuristics, Lean process JIT, Kanban. Time and budget constrained
41 Kanban, Conwip and Critical chain
42 Project profits (x1,000,000 $) Project/ Yellow Orange Mint Green Lilac Purple Crimson Red #Resource 0 (7) (14) (9) (11) (5) (43) (5) (19) 1-3 (4) (8) (3) (5) 0 (25) (1) (14) 4 (1) (4) 0 (1) 0 (10) 0 (12) 5 2 (1) (7) 1 (10) (5) 1 (9) (3) 1 (8) (2) 2 (8) (4) (3) 0 0 (3) (3) (5) (4) Agile PMO
43 PMO is best Positioned to link Governance to Agility
44 Use resource Allocation that actually WORKS
45 Write yourself a note
46 Agile PMO Value Enablement Resource allocation Control/limit the mix Selection and prioritization Chose the valuable projects The Agile PMO effective, streamlined delivery reduce waste Agile Leadership
47 Is primarily about: Collaboration Empowerment Self management Servant leadership Agile Leadership
48 Agile Leadership
49 We re not the Bad Guys HUG AGILE PMO - A PARADIGM SHIFT Perhaps the MOST difficult transformation required by the PMO! From emphasis on management to leadership
50 We must CHANGE! PMO Command and Control is obsolete
51 50%
52 This just in: Problem we want to solve by this training: we have noticed that senior stakeholders in our organization are sometimes hard to convince in a need and value of proper project/program governance and overall role of PMO in delivering business value.
53 The Agile PMO A centralized portfolio management entity that enables faster delivery of products. It has various roles and responsibilities based on the organization structure, the Agile maturity and the specific industry.
54 Write yourself a note
55 How to Inspire the Change? KPI document reduction KPI project cancel KPI faster delivery KPI selection Kanban KPI project satisfaction KPI impediment removal
56 Increase your Return from Projects! Coming Next : Agile2015 Is APM an Oxymoron? PMI Atlanta August The Agile PMO Thank You
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