Lean Agile PMO (1)

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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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www.ccpace.com The Lean-Agil e PMOPage 10

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

[email protected]

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.

Documents

Lean Agile PMO (1)