AGILE PMO &

PUBLIC

PROCUREMENT

@

Mikas Jovaišas

22

MARKET

TENDENCIES

33

MULTIPLE

INNOVATIONS

Last mile innovations Process automation

Partnerships

Hybrid mail e.channels Financial services

Mobility for employees

Mobility for customers

44

MOBILE POSTMAN

2017 – 2018

55

AUTOMATED

SORTING 2017 – 2020

66

1 2COMMERCIAL, BUT STILL PUBLIC

SECTOR

X PROJECTS: Y SYSTEMS: Z TEAMS

• Regulations

• Public procurement

• Large organization

• Solutions diversity

• Internal/ external delivery

• Slow approval cycles

PROJECT MANAGEMENT

CHALLENGES

77

DAIKTŲ INTERNETO

ĮGALINIMAS

Agile PMO in

Public Sector

88

AGILE PMO1

PMO – organizational change project managers team

Internal stage gating process

Agile Product Owners in IT

Agile Delivery Plans

Mapping to PMO Project Portfolio

1

2

3

4

5

99

Systems backlogs

N projects

Small CRs

Support

Strategy

Business cases

Stage gatingBusiness planning

selectionConcept Phase

Selection Filter

Planning & Execution of

Approved Projects

Ideas, needs,

opportunities

TIMELINEProjects portfolio

Projects plans

Release 1

Release 2

Release 1

Release 2

Release 1

Release 2

PM

OA

gile I

T

AGILE PMO2

High-priority items

Low-priority items

Stage gate 1 Stage gate 2

1010

AGILE IT

ORGANIZATION1

Hidden IT supply chain

Standardized plans for

all systems

System teams

Integration with

organization PMO

1

2

3

4

1111

AGILE IT

ORGANIZATION2

Standardized Agile backlogs

Standardized Release plans

Backlog transparency

2w - 1m iterations

Intermediate releases

Business users involvement

Regular Sync with PMO plans

1

2

3

4

56

7

Project / Change Requests approval - Workflow System

IT Incidents - Internal IT Service Desk

PMO Portfolio - Microsoft Project Server

PMO Projects - Microsoft Project Server

System level Agile Backlogs - Microsoft Team Foundation Server

123

4

5

AGILE PMO

TOOLS

BENEFITS

1 2 3LIMITED WORK IN

PROGRESS

BETTER CAPACITY

PLANNING

BETTER RELIABILITY ON

ESTIMATES

• Filtered inquires due to Stage

gating

• Clear trade offs for urgent

changes

• Visualized and prioritized

backlogs

• Quarterly release plans

• Agile team commitments

• Regular re-planning of time

remaining

• Transparency of release plans

IMPLICATIONS

1 2 3BREAKING THE

COMFORT ZONES

INEVITABLE

ORGANIZATION &

PROCESSES CHANGE

MULTIPLE TOOLS

• More discipline for the

Business Units

• Learning to say and accept

NO as an answer

• Learning to be transparent

• IT department structure

change – roles, subordination,

flatten structure

• New processes for Business

Units, PMO and IT

department

• Temporary performance

downgrades,

misunderstanding, mistakes

• No single tool for all PMO

stack yet

Agile Public

Procurement

Agile is recommended for Government IT Projectshttp://valstybe.agile.lt/valstybes-informaciniu-sistemu-gyvavimo-ciklo-metodika/

Waterfall can be Agile-Under-Coverhttps://www.slideshare.net/akovaliov/a-kovaliovproduktodarbusarasoplanavimasvalstybiniamprojektui120603015110phpapp01

Agile templates based on LT Post experiencehttp://valstybe.agile.lt/pirkimo-sutarties-pavyzdys/

1

2

3

PUBLIC PROCUREMENT OF

THE AGILE IT PROJECTS1

Procurement Object Pricing Payment terms

Solution implementation and

deployment.

Solution defined in business

processes and usage scenarios

Fixed price for main scope Payments after each release

Development and consulting hours

buffer

Total price of X hours Payments on demand, based on work

orders.

Buffer may be consumed both after the final

release or in parallel

Support Total price for X months Monthly payments

Starts after 1st release to production

Proper Procurement Object Definition

PUBLIC PROCUREMENT OF

THE AGILE IT PROJECTS2

Proper Staged Delivery Plan

Stage Duration Payments Working software

Kick off 1-2 weeks % of fixed price -

Exploration / Detailed analysis Up to 1 month - -

Release 1 2 - 3 months % of fixed price Trial usage with business users

Release 2 2 - 3 months % of fixed price

[+ work orders]

Trial usage with business users

GO LIVE

Release 3 2 - 3 months % of fixed price

[+ work orders]

[+ monthly support]

Trial usage with business users

Production usage

... ... ... ...

Release X 1 - 2 months % of fixed price

[+ work orders]

[+ monthly support]

Production usage

Closure 1 – 2 weeks % of fixed price

[+ monthly support]

Production usage

PUBLIC PROCUREMENT OF

THE AGILE IT PROJECTS3

1

SUCCESS STORY – MOBILE

POSTMAN

106 USERS3 RELEASES 4th RELEASE IN 20182 3

1 2 3BETTER RISK

MANAGEMENT

READY FOR INEVITABLE

CHANGE

BETTER USABILITY &

EARLY ROI

• Early releases disclose the

technology and supplier

related risks

• Early alert of delays in case of

possible intermediate delays

• Flexibility of Fixed Scope

definition – Processes,

Scenarios, KPIs

• Work orders buffer

• Wrong features can be

reworked during following

stages

• User group involvement along

the project

• Faster GO LIVE with limited

functionality

BENEFITS

1 2 3LEGISLATION &

REGULATION

SUPPLIERS ORGANIZATION

• Public Procurement

Authorities are poorly aware

about Agile Project

Management

• Initial delays with approvals

and legal phrasing

• Lack of Agile Delivery

readiness at suppliers’ side

• Full transparency and often

delivery may not be

appreciated

• High involvement of Business

units – interim acceptances,

priority management

• Business user group

dedication for the project

IMPLICATIONS

MY ADVICE

Practice makes it WORK!

2323

MIKAS JOVAIŠAS

Head of Strategy and Business Development

JSC Baltic Post, Chairman of the Board

JSC Lietuvos pašto finansinės paslaugos, Member of the Board

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