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8/3/2019 Lean Agile PMO (1)
1/21
8/3/2019 Lean Agile PMO (1)
2/21
www.ccpace.com The Lean-Agile PMOPage 2
About Us
Sanjiv Augustine
Managing Director, Lean-Agile
Practice
Co-founder and Board Member,Agile Project Leadership
Network (APLN)
Author of Managing Agile
Projects, Prentice Hall 2005
Roland Cuellar (kway-are)
Director, Lean-Agile Practice
Formerly of IBM, Lockheed, and
DHL
Agile Coach and Certified Scrum
Master
CC Pace
Business and technology servicesconsulting firm for over 25 years
Lean-Agile Practice delivers fullrange of Lean and Agile offeringsto clients worldwide
Office located in Fairfax, VA withinWashington DC Metro Area
Some of our clients:
Capital One
Freddie Mac
Genworth Financial
HSBCNorthrop Grumman
The Carlyle Group
T. Rowe Price
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Agenda
PPM and PMO Challenges (10 Minutes)
Portfolio Management Reality
The Effects of Agile Projects
How Can PMOs Improve Portfolio Performance?
Lean Portfolio Management Principles (10 Minutes)
Optimize for Throughput
Reduce Project Inventory/WIP
Manage Constraints
Exercise: Lean Production Line (15 Minutes)
The Lean-Agile PMO (20 Minutes)
Track Flow and Bottlenecks
Lean Scheduling
Integrated Platform-Based Teams
PMO Organization
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Portfolio Management Reality
Create estimates at project kickoff, measure spottily or not
at all at project end
Track and monitor portfolio
performance
Deal with innovation as an afterthoughtCreate innovative solutions
Make sure people and resources are 100% utilizedAllocat e resources
effectively
Try and anticipate all potential changes at the beginning of
the yearly cycle
Meet changing business
objectives
Get as many projects from as many business centers startedMeet diverse business
partners needs
Kick off more and more projects to deliver concurrently on
strategic objectives
Del iver fast er t o market
Conventional PPM PracticePPM Goal
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Portfolio Management Reality (contd)
There is no accurate measurement of the true capacity of the organization
Reporting to executive management is poor
Track and monitor portfolio
performance
External customers are not clearly identified resulting in questionable solutions
There is no room or budget for innovation
Create innovative solutions
Project team members are working on 3 to 7 projects simultaneously.
Highly-skilled team members are stretched the most
Project team morale is especially low on ailing projects.
All ocate resources
effectively
Business customer satisfaction is low
Customer demand invariably changes mid-cycle
More projects mean more people and resourcesDifficulty predicting demand to appropriately allocate people and resources.
Meet changing business
objectives
Functional executives regularly push their pet projectsCompetition for resources and projects exists within and across business units
Projects are not prioritized in alignment with business strategy
Meet diverse businesspartners needs
Many incomplete projects in the project portfolio.
30% of small/mid-sized projects are late, nearly 100% of large projects are late
Deliver f ast er t o market
Resulting ChallengesPPM Goal
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The Effects of Agile Projects
Clearer Accountability
Higher Utilization on Non-Agile
Projects
Clear Value to the Organization
Participation in High-Performance
Teams
Culture Shift
Project Team
Satisfaction
Need for Regular Tradeoffs
Clearer Accountability for Business
Value Definition
Higher Visibility
Project Throughput
Flexibility and Control
Reliable Delivery
Business
CustomerSatisfaction
Increased Resource Contention
Misaligned Measurement, Reportingand Auditing
Schedule Performance
Budget Performance
Risk Management
Flexibility through Options
Early Financial Returns
Business Value
Delivery
Potential Negative EffectsPotential Positive EffectsCategory
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How Can PMOs Improve Portfolio Performance?
Lean-Agile PMOs can greatly impact project portfolio
performance
PMO manages project portfolio delivery
Run PMO as agile project team
Employ Agile project delivery
Integrated platform-based teamsDeliver small releases more frequently
Apply Lean Thinking to optimize the whole project portfolio
Optimize for throughput
Reduce project inventory/WIP
Manage constraints
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Lean-Agile Principles - Optimize for Throughput
Optimal utilization yields sub-optimal throughput
There is no free lunch
Delay has a cost
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Lean-Agile Principles - Reduce Project Inventory/WIP
You have an inventory of projects
Big inventories are bad:
They cost a lot
They hide a lot of problems
They are slow
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Lean-Agile Principles - Manage Constraints
If we want faster flow, where
should concentrate our
improvement efforts?
You can only deliver as fast as
the slowest part of your process.
How many grains of sand can go
through the constraint at once?
Do you know where the
constraints are in your
organization?
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Exercise Lean Production Line
Four volunteers, please!
Performer 1
Fold paper in half.
Performer 1
Fold paper in half.
Performer 2
Fold nose cone.
Performer 2
Fold nose cone.
Performer 3
Fold wings, tail
and ailerons.
Performer 3
Fold wings, tail
and ailerons.
Performer 4
Test plane (throw
it into the trash).
Performer 4
Test plane (throw
it into the trash).
Performer 1
Create airplane.
Performer 1
Create airplane.
Performer 2
Create airplane.
Performer 2
Create airplane.
Performer 3
Create airplane.
Performer 3
Create airplane.
Performer 4
Test plane (throw
it into the trash).
Performer 4
Test plane (throw
it into the trash).
Round 1 Push System
Performer 1
Fold paper in half.
Performer 1
Fold paper in half.
Performer 2
Fold nose cone.
Performer 2
Fold nose cone.
Performer 3
Fold wings, tail
and ailerons.
Performer 3
Fold wings, tail
and ailerons.
Performer 4
Test plane (throw
it into the trash).
Performer 4
Test plane (throw
it into the trash).
Round 2 Pull System
Round 3 Pull System with Versatilist Performers
Begin work as soon as your inbox is occupied.
Begin work only when your outbox is empty.
Pass plane to Performer 4 when youre done.
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PART ONE: Lean-Agile Fundamentals
The Lean-Agile PMO
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Track Flow & Bottlenecks
Track project flow
Manage the On-ramp
Terminate sick projects
Break large projects into small ones
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Lean Scheduling
Avoid too many
simultaneous projects
Exercise leadership:prioritize your projects
and focus your teams
Delay commitment;delay expenditure
Deliver continuously in
small batches versusdelivering infrequently
in huge batches
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Integrated Platform Based Teams
Multiple teams each focused on single projects
Dedicated to platforms or lines of business
Platform owner prioritizes next project
Result:
Support multiple lines of business simultaneously
Focused effort results in quick delivery for individual projectsClear accountability
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Integrated Platform Based Teams (contd)
BA
PM
TesterProduct
Owner
Developer
Designer
Developer DBA
Release
Manager
Capacity
Planner
Production
Architect
Tech
Ops
Business
Sponsor
Risk
Assessor
Security
Peripheral
Project Team
Core
Project Team
Product
Owner BA BSADesigner Developer Tester
Traditional Silos:
Integrated Platform-Based Team:
Innovation via Integrated Teams
Each time BMW begins developing a car,
the project team's members -- some 200 to300 staffers from engineering, design,
production, marketing, purchasing, and
finance -- are relocated from their
scattered locations to the auto maker's
Research and Innovation Center, called
FIZ, for up to three years. Such proximity
helps speed up communications (and
therefore car development) and
encourages face-to-face meetings thatprevent late-stage conflicts between, say,
marketing and engineering.
-- The World's Most Innovative Companies,
Business Week, April 24, 2006
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PMO Organization
Encourage face-to-face dialogue across levels
Overlapping management with linking pins
PMO run as an Agile project team
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In Summary
Employ Agile project delivery
Integrated platform-based teams
Deliver small releases more frequently
Apply Lean Thinking to optimize the whole project portfolio
Optimize for throughput
Reduce project inventory/WIPManage constraints
Lean-Agile PMOs can greatly impact project portfolio
performancePMO manages project portfolio delivery
PMO is run as agile project team
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More Information
Sanjiv Augustine
Managing Director, Lean-AgileConsulting
Roland Cuellar
Director, Lean-Agile [email protected]
PHONE: 703 / 631.6600
WEB: http://www.ccpace.com
MAIL: 4100 Monument Corner Dr.,
Suite 400
Fairfax, VA 22030
TheLean-Agile PMO: Using Lean Thinking to Accelerate Agile Project
Delivery, Cutter Consortium Executive Report, Vol. 7, No. 10
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Agile at a Glance
Agile practices include:
Release Planning(creates Product backlog)
Iteration Planning(creates Iteration backlog)
Daily Standup
Fixed-length iterations
Feature Review
Identify the top-priority
items and deliver them
early and often.