PMI Central Indiana Chapter - The Agile PMO - Michael Nir - Slide deck

23/10/2015

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The Agile PMO Value-driven

Agile Project Management Office

PMICIC PDD, Indianapolis, 23rd October

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

[email protected]


mailto:[email protected]



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Are we on the same page?


THIS HAPPENED 14 YEARS AGO

It has impacted our thinking


SCRUM IS ONE AGILE METHOD

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We’ll discuss Agile thinking and the PMO

• 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;


Because: It just

doesn’t Work


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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


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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


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How did we get here?


An organizational structure that standardizes the project-related governance processes and facilitates the sharing of resources, methodologies, tools and techniques PMBOK 5th edition

How did we get here? THE STORY OF PETE


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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


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I need a Home

The Gap Analysis – Stakeholders

Worthy PMO Strategic

Alignment

No Tools

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

NOW

LEAD EXPECTATIONS


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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?


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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.)


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Focusing on Tools not on Value TOOLS TOOLS TOOLS

Starting with tools -

Eternalizes the wrong

WOW


We can do

Better!


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Ditch the non-value version



The Agile PMO – embrace value


A centralized portfolio management

entity that enables faster delivery of

products.

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HOW? 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

Agile PMO Value Enablement

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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

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Reduce Waste – Process and Project


PMO is best positioned to

remove waste of project and process


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Remove

Document Waste


Remove

Project Scope Waste


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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


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Remember:

when Everything

is Important

Nothing is


Write yourself a note


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The Agile PMO



Resource allocation


effective, streamlined

delivery

reduce waste

Agile Leadership


SAFe™ - Scaled Agile


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SAFe® Selection and Prioritization – Kanban Approach


Agile PMO

PMO is best positioned to

Kanban the Selection and Prioritization


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Create Kanban

Buckets for selection


If I stopped now…


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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


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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

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PMO is best Positioned to link

Governance

to

Agility The Agile PMO – great results NOW

Use resource Allocation that

actually WORKS


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The Agile PMO



Resource allocation



delivery

reduce waste

Agile Leadership


It’s not the same language

Estimate:

• Team: we were wrong…it’s a learning

process…let’s retro

• Management: #$@!^%


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Deadline:

• Management: our clients are looking for…

• Team: this is not part of the Agile Manifesto or

Scrum handbook, Software is difficult to predict



Commitment:

• Executive: You said it will be delivered in two

weeks

• Team: I’ve committed to commit I didn’t commit

to deliver


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Agile leadership and the shoe continuum


Extreme Agile

Business Portfolio

Let’s investigate further

Extreme Agile – the zealot


Extreme Agile

Business Portfolio

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The Scrum Master


Extreme Agile

Business Portfolio

Product owner or coach


Extreme Agile

Business Portfolio

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Agile in the cold


Extreme Agile

Business Portfolio

PMO comfortable


Extreme Agile

Business Portfolio

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PMO portfolio level


Extreme Agile

Business Portfolio

Agile leadership and the shoe continuum


Extreme Agile

Business Portfolio

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No common ground


Extreme Agile

Business Portfolio

Talk and agree


Extreme Agile

Business Portfolio

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Can we really talk?

If management is like…..


Agile Leadership

Is primarily about:

• Creating understanding

• Getting them to talk


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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

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The Agile PMO



Resource allocation



delivery

reduce waste

Agile Leadership


Traditional PMO



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50% The Agile PMO – great results NOW

The Agile PMO


A centralized portfolio management entity that enables faster delivery of products.

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Can we change?

Actually we must…

• Organization innovation is delivered through projects

• Our competitors are figuring out how to deliver faster and faster and yet faster



Faster and faster and yet faster

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We must CHANGE! PMO need to re-focus on Value


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.


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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/

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






Leadership & Management

PMI Central Indiana Chapter - The Agile PMO - Michael Nir - Slide deck