PPM conference Netherlands Agile PMO Keynote

25/05/2016

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The Value Driven-Agile PMO PPM Conference, Holland

25th May, 2016

Michael Nir President Sapir Consulting US

The Agile PMO – great results NOW

Michael Nir

President @ Sapir Consulting US

• M.Sc. Engineering, PMP®, SAFe™

accredited

• Author of 10 bestseller business books

• Global clients

• Integrating the hard and soft parts of

Business, Development and more


Management consultant, Agile coach, speaker and author

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Agile Thinking and the PMO


The Agile PMO is expanding on the

manifesto to address end-to-end Agility

• 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;

• How many of you manage a PMO or

have a PMO in the organization

• Is your PMO driving Agile thinking?

• Is your PMO a change agent?

• Complete the sentence: “Yes we

have a PMO in the organization

and… “


Reflect

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Gartner 2012

ESI 2013


PMOs Don’t Deliver Value


>> 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%)

State of PMOs - 2015

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50% Failures



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

PMBOK Definition – Where’s the Value?

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How did we get to 50% failures in PMOs?

Pete Recruited to head the PMO of Boston-Tech

• 2.5 Billion in sales

• 12 Global locations

• 17,500 employees

• Integrated product

• Responsible for portfolio delivery of business

software solutions

Build me a PMO worthy of Maine-tech!

Yes Master


The Story of Pete the PMO Manager

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I need a Staff

Maybe Select Tools

Training Need

Assessment?

Support the PMs

New Reports

and Templates

PMBOK? PLC


Common First Steps of a PMO

I need a Home

No Tools

No Tools

Training

Training

No Tools No Process


What the Gap Analysis Identifies

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I need Reports! Better Control! A methodology

NOW


What the Gap Analysis Identifies – Executives

I need a Staff

Maybe Select Tools

Training Need

Assessment?

Support the PMs

New Reports

and Templates

PMBOK? PLC


Back in the Office

Pay me a Lot! I can help

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What Would

You Do?


Discuss with the Person Next to You

We’re not thinking End-to-End Agility


PMOs are not Functioning as Value Driven, Change Agents

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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

‘The bureaucracy is

expanding to meet the

needs of the

expanding

bureaucracy’

(O. Wilde.)


The Process PMO

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Starting with tools -

Eternalizes the wrong

WOW


Focusing on Tools not on Value

We can do

Better!


The Agile PMO

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The Agile PMO

A centralized portfolio management entity

that enables faster delivery of products

• Promotes Lean thinking – remove obstacles

• Pull across product delivery organization

• Effective resource allocation, capacity

planning

• Change agent

The Agile PMO – Embrace Value


The Agile PMO





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Toyota Defined 7 Wastes

• Waste reduction is an effective

way to increase profitability

• From a customer's point of view,

value-added work is a process that

adds value that a customer is

willing to pay for

• Waste occurs in product

development as well

Manufacturing Product Development

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

Effective, Streamlined Delivery - Reduce Waste


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Project Management Example from my organization

Redundant or unnecessary interfaces

Missing features or gold-plated features

Task switching

Waiting time

Sloppy requirements

Project bureaucracy

2nd or more iterations and revisions

Examples from My Organization


PMO is Positioned to Lead Waste Removal


How long are tasks waiting in Queue?

Is it ‘easy’ adding a

template? How about

removing one?

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Streamline delivery– KANBAN the Waterfall


• Visualize work

• Prioritize work

• Limit work

PMO is Best Positioned to Remove

Project and Process waste


Effective, Streamlined Delivery - Reduce Waste

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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

How Much ???


The Agile PMO





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Traditional Opportunity Management is ‘Push’ Managed

Push; when Opportunities/Projects arrive

• Receive a business case

• Accepted into the project/product organization regardless of work-in-

progress

• Increases utilization – reduces throughput

• Over allocation of resources

and ‘bad’ multi-tasking


Pull Framework with Kanban is Best for Managing Incoming Opportunities

Pull; when Opportunities/Projects

arrive:

• Staggered in a Kanban

• Pulled into the project/product

organization based on system load

• Throughput is managed

• Projects and products are completed

faster

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Pull Framework with Kanban is Best for Managing Incoming Opportunities

PMO is best positioned to

manage incoming opportunities Kanban


Pull Across Product Delivery Organization

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If I stopped now…



The Agile PMO




planning


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Traditional, Portfolio Driven, Capacity Planning, Fails

Planning resource allocations:

• Multi project resource constrained scheduling is complex (NP problem);

• The tactical and operative schedule is mostly wishful thinking;

• Often when resource conflicts occur

– managers resort to the one ‘rule of

thumb’ that never fails – those who

yell loudest, win


Alternative Capacity and Resourcing Methods Provide Better Results

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Operative capacity planning should be

based on an effective ‘Pull’ method



The Agile PMO



• Change agent


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Deadline

• PMO - our clients are looking

for…delivery on October 2016

• Scrum team - this is not part of

the Agile Manifesto or Scrum

handbook, Software is difficult

to predict


PMO and Agile Scrum Teams – Speak Different Languages

Commitment

• PMO - You said it will be

delivered in two weeks

• Scrum team - We’ve

committed to commit we

didn’t commit to deliver


PMO and Agile Scrum Teams – Speak Different Languages

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Agile leadership and the shoe continuum


Extreme Agile

Business Portfolio

Let’s investigate further


Extreme Agile

Business Portfolio

Agile Leadership and the Shoe Continuum

The Developer

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Extreme Agile

Business Portfolio


The Scrum Master


Extreme Agile

Business Portfolio


The Coach

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Extreme Agile

Business Portfolio


Winter in Boston Agile


Extreme Agile

Business Portfolio


PMO Comfort

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Extreme Agile

Business Portfolio


PMO Portfolio Manager


Extreme Agile

Business Portfolio


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Extreme Agile

Business Portfolio

Agile Leadership – Establish Collaboration


Extreme Agile

Business Portfolio

Use the Manifesto as a Starting Point

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The Agile PMO






planning

• Change agent


A centralized portfolio management entity that enables faster delivery of products: • Organization innovation is delivered

through projects

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


We Must Change – Refocus PMO on Value

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What is One Thing You Can

Change?


[email protected]

Increase your Return from Projects!

mailto:[email protected]



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John Deere

PPM conference Netherlands Agile PMO Keynote

Technology

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