The Agile PMO

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The Agile PMO: From Process Police to Adaptive Governance: This webcast provides techniques for an Agile PMO and discusses how those concepts are being applied in the industry. Presented by LitheSpeed.

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The Agile PMO

  1. 1. 1 The
Agile
PMO
 Presented
by
Sanjiv
Augustine
 July

22,
2009
 From
Process
Police
to
Adaptive
Governance
 •  Why
an
Agile
PMO?
 •  Setting
up
the
Agile
PMO
 •  Scaling
Scrum
through
 Adaptive
Governance

 o  Project
Prioritization
&
Selection
 o  Portfolio
Tracking
 o  Resource
Management
 o  Sustainable
Agile
Adoption
 •  Q&A
 Agenda
 Adap0ve
Governance
 Adap&ve
governance
is
the
 collabora've,
flexible
and
 learning‐based
 management
of
programs
 and
por5olios.


  2. 2. 2 Why
an
Agile
PMO?
 Why
an
Agile
PMO?
 How
are
PMOs
Doing?
 “The
recent
research
literature
on
PMOs
 provides
an
ambiguous
picture
of
the
value
 case
for
PMOs
and
suggests
the
tenuous
 nature
of
their
current
posi0on
in
many
 organiza0ons.”
 ‐
Hurt
and
Thomas,
Building
Value
through
Sustainable
 PMOs,
Project
Management
Journal,
March
2009
 “53%
of
CIOs
say
their
IT
 project
priori0za0on
is
poli0cally
driven.”
 ‐
CIO
Insight,
2004
 “The
influence
of
a
conserva0ve,
process‐ oriented
personality
into
the
world
of
agile
 technologies
and
agile‐thinking

 technologists
is
nearly
as
ra0onal
as
using
a
 World
War
I
trench
warfare
general’s
 mindset
to
direct
the
efforts
in
Afghanistan.”

 ‐
Casca
quoted
by
Thornberry,
PMOs
keep
projects
on
 track
and
under
budget,
ZD
Net
Asia


 Some
of
the
challenges/problems
faced
by
 PMOs:
 •  Lack
of
authority
and
executive
support
 •  Lack
of
demand
management
 •  Focus
on
upwards
reporting
 •  Process
standardization
and
auditing
rigidity
 •  Over‐reliance
on
project
portfolio
 management
tools
 •  Staff
versus
line
organizational
structure:
 creates
overhead,
lack
of
accountability
and
 career
plateau
 •  Misalignment
of
tools,
techniques
and
 reporting
with
Agile
methods
 •  PMOs
perceived
as
“process
police”
who
 block
rather
than
enable

  3. 3. 3 Setting
up
the
Agile
PMO
 Two
Visions
for
the
PMO
 “An
organizational
unit
 to
centralize
and
 coordinate
the
 management
of
projects
 under
its
domain.
A
PMO
 oversees
the
management
 of
projects,
programs
or
a
 combination
of
both.”
 A
group
of
project
leaders
who
achieve
these
results:
 •  
We
increase
return
on
investment
by
making
con&nuous
 flow
of
value
our
focus.
 •  
We
deliver
reliable
results
by
engaging
customers
in
 frequent
interac&ons
and
shared
ownership.

 •  
We
expect
uncertainty
and
manage
for
it
through
 itera&ons,
an&cipa&on,
and
adapta&on.

 •  
We
unleash
crea0vity
and
innova0on
by
recognizing
that
 individuals
are
the
ul&mate
source
of
value,
and
crea&ng
an
 environment
where
they
can
make
a
difference.

 •  
We
boost
performance
through
group
accountability
for
 results
and
shared
responsibility
for
team
effec&veness.


 •  
We
improve
effec0veness
and
reliability
through
 situa&onally
specific
strategies,
processes
and
prac&ces.
 A
Guide
to
the
Project
Management
Body
of
 Knowledge
(PMBOK®
Guide),
Third
Edi&on
©
 2004
 Declara'on
of
Inter‐dependence,
h]p://pmdoi.org

[©2005
David
Anderson,
Sanjiv
Augus&ne,
 Christopher
Avery,
Alistair
Cockburn,
Mike
Cohn,
Doug
DeCarlo,
Donna
Fitzgerald,
Jim
Highsmith,
Ole
 Jepsen,
Lowell
Lindstrom,
Todd
Li]le,
Kent
McDonald,
Pollyanna
Pixton,
Preston
Smith
and
Robert
 Wysocki.]

 How
best
can
a
PMO
aid
in
delivering
business
value
across
 multiple
projects,
programs
and
portfolios?

  4. 4. 4 •  Encourage
face‐to‐face
dialogue
across
levels
 •  Create
overlapping
management
with
“linking
pins”
 •  Run
the
Lean‐Agile
PMO
as
an
Agile
project
team
 Source:
The
Lean­Agile
PMO,
Sanjiv
Augustine
and
Roland
Cuellar
(Cutter
Consortium
2006)
 Organiza0onal
Structure
 Oscilla0ng
Between
 Informa0on
Discovery
and
 Integra0on
 A
centralized
structure
works
 well
for
discovery,
because
the
 individual’s
role
is
to
Wind
 information
and
report
it
back.
 In
contrast,
a
richly
connected
 network
works
best
for
 integration
and
decision
 making,
because
it
allows
the
 individual
to
hear
everyone
 else’s
opinion
about
the
 expected
return
from
each
of
 the
alternatives.


 ‐
Alex
Pentland,
How
Social
Networks
 Network
Best,
Harvard
Business
Review,
 February
2009


 Image
from
www.crea'on'ps.com/bees.html
 •  Optimize
for
throughput,
 not
utilization
 •  Limit
Work
in
Process
 (WIP),
not
team
freedom
 •  Obsess
about
the
Flow
of
 value,
not
the
process
 Lean
Principles
for
the
Agile
PMO
 Throughput
 Throughput
in
project
 por5olio
management
is
the
 rate
at
which
projects
net
 money
for
the
business.

  5. 5. 5 Agile
PMOs
consider
Scrum
 teams
to
be
their
customers,
 and
support
them
in:
 •  Bringing
lean
discipline
to
project
 prioritization
&
selection
 •  Tracking
project
portfolios
using
 Agile
tracking
techniques
 •  Moving
towards
a
stable
teams
model
 of
resource
management
 •  Scaling
and
sustaining
agile
 adoption
by
supporting
and
 empowering
Scrum
teams
 An
Agile
Role
for
the
PMO
 Adap0ve
Governance
 Adap&ve
governance
is
the
 collabora've,
flexible
and
 learning‐based
 management
of
programs
 and
por5olios.

 Project
Prioritization
&
 Selection

  6. 6. 6 The
Typical
Project
PorXolio
 Source:
The
Lean­Agile
PMO,
Sanjiv
Augustine
and
Roland
Cuellar
(Cutter
Consortium
2006)
 •  Too
much
Work
in
Process
(too
many
in‐ Wlight
projects)

 •  No
project
prioritization
by
business
value
 •  Resource
over­utilization
 •  Dangerous
variation
(large
batch
sizes,
 unregulated
demand,
irregular
rate
of
service)
 •  Terminate
sick
projects
 •  Split
large
projects
in
smaller
ones
 •  Prioritize
projects
by
business
value,

 at
least
within
business
unit
 •  Limit
development
timeframe
to
months
 •  Re­prioritize
projects
regularly
 1 Development
 3 24 Lile’s
Law
 












WIP
 






Comple&on
 












Rate
 Por5olio
Realignment
 Business
Goals
 &
Strategy
 Produc0on
 Sunset
 Cycle
Time
=






 Backlog

  7. 7. 7 •  Should
we
do
this
project
at
all?
 •  Determine
ranking
criteria
 •  Rank
projects
and
create
ranked
project
backlog
 Project
Iden0fica0on
&
Selec0on
 Example
Project
Selec&on

  8. 8. 8 Portfolio
Tracking
 •  Features
laid
out
on
index
 cards
as
per
overall
release
 plan
 •  Card
colors
identify
agile
 teams
 •  Labels
identify
dependent
 teams
 •  Rows
track
feature
streams
 •  Columns
track
sprints/ timeline
 Por5olio
Alignment
Wall


  9. 9. 9 Manage
the
Flow
 •  Limit
request
backlog
to
a
few
items
 •  Prioritize
requests
by
Value
 •  Measure
time
to
deliver
small,
medium
 and
large
requests

 •  Track
and
manage
work­in­process
 (WIP)
to
optimize
throughput
 •  Optimize
delivery
speed
by
limiting
 work‐in‐process
to
observed
capacity,
 thus
ensuring
continuous
Wlow
of
value.

 0 25 50 75 100 125 150 175 9-Oct 23-Oct 6-Nov 20-Nov 4-Dec 18-Dec 1-Jan 15-Jan 29-Jan 12-Feb 26-Feb 11-Mar Time Features Inventory Started Designed Coded Complete Bad:
Ragged
flow,
long
cycle
 &me
(Started
to
Completed)
 Beer:
Smooth
flow,
fast
 delivery
 Identify
and
address
bottlenecks
in
 workWlow
stages
to
smooth
Flow
of
value.
 Resource
Management

  10. 10. 10 Tradi0onal
Resource
Management
 •  Run
many
projects
 concurrently,
with
similar
 priorities
 •  Split
resources
between
 multiple
projects
 •  Stress
maximum
resource
 utilization
 •  ROI
only
after
projects
are
 done

 Time
 Projects
&
Resources
 ROI
 Costs
of
Task‐Switching
 Source:

Managing
New
Product
and
Process
Development,
Clark
and
Wheelwright,
p.
242,
1992

  11. 11. 11 •  Multiple,
stable
teams
each
focused
 on
a
single
project
at
a
time
 •  Dedicated
to
platforms
or
lines
of
 business
 •  Platform
owner
prioritizes
next
 project
 •  Result:
 o  Support
multiple
lines
of
business
 simultaneously
 o  Focused
effort
results
in
quick
 delivery
for
individual
projects
 o  Clear
accountability

 o  Stability
and
predictability
 Source:
The
Lean­Agile
PMO,
Sanjiv
Augustine
and
Roland
Cuellar
(Cutter
Consortium
2006)
 Stable
Teams
 Lean
organizations:
 •  Dedicate
core
resources
to
 each
project
team
 •  Ensure
that
each
team
has
 all
resources
needed
to
 complete
projects
 •  Stress
maximum
project
 throughput
 •  ROI
delivered
incrementally
 with
each
project
release
 Lean
Resource
Management
 ROI
 Time
 Projects
&
Resources

  12. 12. 12 “…for
a
large
organization
to
work
it
 must
behave
like
a
related
group
of
 small
organizations.”
 ­
E.
F.
Schumacher,
Small
is
Beautiful
 Conquer
and
divide
by
building
a
 federation
of
agile
teams:
 •  Build
the
“whole”
into
the
“parts”
 •  Set
a
size
limit
(
e.g.
7
+/‐
2
people)
 •  To
grow,
break
off
new
integrated
 Agile
teams
when
team
size
limit
is
 reached
 •  Coordinate
at
higher
level
via
Agile
 PMO
 Scaling
Agile
Teams
 Sustainable
Agile
 Adoption

  13. 13. 13 •  Conduct
one­on­one
sessions
with
 managers
and
executives
 •  Establish
a
training
curriculum
 •  Create
an
Agile
career
path
 •  Locate
Agile
coaches
in
the
Agile
 PMO
 •  Provide
project
team
coaching
 and
mentoring
 •  Provide
training
and
coaching
on
 Agile
Engineering
techniques
 Educa0on
and
Coaching
 Create
a
defined
and
reliable
process:
 •  Standardize
high­level
process
steps,
deliverables,
 tools
and
artifacts
 •  Agree
on
process
audit
procedures
 •  Develop
standard
process
metrics
 Process
Standardiza0on

  14. 14. 14 Contact
Us
for
Further
Informa0on
 Sanjiv
Augustine
 President
 Sanjiv.Augustine@lithespeed.com
 On
the
Web:
 http://www.lithespeed.com
 http://www.sanjivaugustine.com
 "I
only
wish
I
had
read
this
book
when
I
started
my
career
in
 sokware
product
management,
or
even
be]er
yet,
when
I
was
 given
my
first
project
to
manage.
In
addi&on
to
providing
an
 excellent
handbook
for
managing
with
agile
sokware
development
 methodologies,
Managing
Agile
Projects
offers
a
guide
to
more
 effec&ve
project
management
in
many
business
selngs."

 John
P.
Barnes,
former
Vice
President
of
Product
Management
at
 Emergis,
Inc.


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