Michael Nir The Agile PMO keynote

The Agile PMO Value-driven

Agile Project Management Office

PMI Maine, 17th September 2015

Michael Nir President Sapir Consulting US

The Agile PMO – great results NOW

Michael Nir

• President @ 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

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;

It just doesn’t

Do you Realize Value from your PMO?

• 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…

TRICKY QUESTIONS

Truly – PMOs don’t Deliver RESEARCH

Gartner 2012

ESI 2013

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%)

50% Failures

How did we get here? THE STORY OF PETE

The PMO Evolution

Build me a PMO worthy

of Maine-tech!

Yes Master

THE STORY OF PETE

The First Steps…

What to do? Maybe some

research? Analysis of Current

state? Interviews?

I know…

THE STORY OF PETE

I need a Home

The Gap Analysis – Stakeholders

Worthy PMO Strategic

Alignment

No Tools

Training Training

No Tools No Process

LEAD EXPECTATIONS

The Gap Analysis – Executives

Worthy PMO Strategic

Alignment

I need Reports! Better Control! A methodology

LEAD EXPECTATIONS

PMOs Lose Focus – Waste Money

I need a Staff

Pay me a Lot! I can help

Maybe Select Tools

Training Need

Assessment?

Support the PMs

New Reports

and Templates

PMBOK? PLC

Discuss with the person next

What Would

You Do?

The Typical next steps PMO FAILURES

• The tactical PMO

• The process PMO

• The chocking PMO

• The tools PMO

50% The Agile PMO – great results NOW

Escaping from Process Alcatraz PROCESS PMO

• ‘The bureaucracy is

expanding to meet the

needs of the expanding

bureaucracy’ (O. Wilde.)

Focusing on Tools not on Value TOOLS TOOLS TOOLS

Starting with tools -

Eternalizes the wrong

We can do

Better!

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.

Agile PMO Value Enablement

The Agile PMO

Selection and prioritization

Chose the valuable projects

Resource allocation

Control/limit the mix

Effective, streamlined

delivery

reduce waste

Agile Leadership

The Agile PMO

Resource allocation

Effective, streamlined

delivery

reduce waste

Agile Leadership

Toyota Defined 7 Wastes

Waste in Project Management

Manufacturing Project Management

Transport Redundant or unnecessary interfaces

Inventory Missing features or gold-plated features

Motion Task switching

Waiting Waiting time

Over Production Sloppy requirements

Over Processing Project bureaucracy

Defects 2nd or more iterations and revisions

Reduce Waste – Process and Project

PMO is best positioned to

remove waste of project and process

Remove

Document Waste

Remove

Project Scope Waste

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

Application: Kanban the Waterfall BEST PRACTICE EXPERIENCE

• Cancel projects

• Prioritize projects

• Limit projects in queue

• Limit projects in process

Remember:

when Everything

is Important

Nothing is

Write yourself a note

The Agile PMO

Resource allocation

effective, streamlined

delivery

reduce waste

Agile Leadership

SAFe™ - Scaled Agile

SAFe® Selection and Prioritization – Kanban Approach

Agile PMO

PMO is best positioned to

Kanban the Selection and Prioritization

Create Kanban

Buckets for selection

The Agile PMO

Resource allocation

delivery

reduce waste

Agile Leadership

Traditional PMO - Top down – MRP, computer aided, global solution

Scope constrained

Local – Heuristics, Lean process JIT, Kanban.

Time and budget constrained

Two Prime Approaches: Global and Local to semi-optimize

Kanban, Conwip and Critical chain

Project profits (x1,000,000 $)

Project/

#Resource

Yellow Orange Mint Green Lilac Purple Crimson Red

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) 0 0 5 (7) 1 (10)

6 7 4 0 2 0 (5) 1 (9)

7 4 5 3 3 0 (3) 1 (8)

8-9 9 6 6 4 0 (2) 2 (8)

10 6 11 7 7 0 0 3 (4)

11 4 7 8 9 3 1 4 0

12 2 5 13 10 6 1 3 0

13-14 0 2 8 11 7 5 5 4

15 0 0 4 14 14 7 6 6

16-17 0 0 2 4 7 9 16 4

18+ 0 (3) 0 0 (3) (3) (5) (4)

Agile PMO

PMO is best Positioned to link

Governance

Agility The Agile PMO – great results NOW

Use resource Allocation that

actually WORKS

The Agile PMO

Resource allocation

delivery

reduce waste

Agile Leadership

Is primarily about:

• Collaboration

• Empowerment

• Self management

• Servant leadership

Agile Leadership

We’re not the Bad Guys HUG AGILE PMO - A PARADIGM SHIFT

http://www.pmhut.com/agile-pmo-a-new-hope

• Perhaps the MOST difficult transformation required by the PMO!

• From emphasis on management to leadership

We must CHANGE! PMO Command and Control is

obsolete

50% The Agile PMO – great results NOW

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.

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.

How to Inspire the Change?

• KPI – document reduction

• KPI – project cancel

• KPI – faster delivery

• KPI – selection Kanban

• KPI – project satisfaction

• KPI – impediment removal

Thank You

Increase your Return from Projects!

Coming Next : http://sapir-cs.com/michael-nir/

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