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The Agile PMO – value driven
Agile Project Management
Office
Agile – the next Frontier
London, 9th October 2014
Michael Nir
President Sapir Consulting
Starting with the end in mind
• It is all about value – and no, documents don’t
provide it;
• PMO focus on strategic resources, Agile provides
the local empirical leadership;
• PMO perception change – being the good guys;
Michael Nir
• President @ Sapir Consulting - Business and management
• Author of 11 bestseller business books
• Global clients - telecoms, hi-tech, software development,
R&D environments and petrochemical & infrastructure
• Integrates the hard and soft parts of Business &
Development
• Hooked on mountain biking and travelling
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?
• What makes a PMO – Agile?
• Yes we have a PMO in the organization and…
TRICKY QUESTIONS 
50%
5%
30%
The numbers tell the story
RESEARCH
Gartner 2012
ESI 2013
How did we get here?
THE STORY OF PETE
The PMO charter
Build me a
PMO worthy
of Londec!
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
How did we get here?
PAIR ACTIVITY
Provide a
Mission / Vision
statement for a
PMO
The Mission
The mission of the Project Management Office
(PMO) is to provide an enterprise-wide approach
to identify, prioritize, and successfully execute a
technology portfolio of initiatives and projects
that are aligned with the Helsink strategic goals
and educational vision…
THE STORY OF PETE
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
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
KOTTER 8 STEP OF CHANGE LEADERSHIP
Three months – invest in?
What
Would
You Do?
Focus on form not value/return!
PMO FAILURES
• The tactical PMO
• The process PMO
• The chocking PMO
• The tools PMO
50%
Drowning in administration
TACTICAL PMO
• Super secretaries:
– Collect data
– Write down project plans
– Manage project issues
– Summarize meetings
Glamor of
being where
‘things
happen’ - on
top
Escaping from Process Alcatraz
PROCESS PMO
• ‘The bureaucracy is
expanding to meet the
needs of the expanding
bureaucracy’ (O. Wilde.)
The Unavoidable Crash
BITING TOO MUCH
Losing
Focus
Focusing on tools not on value
TOOLS TOOLS TOOLS
Starting with
tools -
Eternalizes
the wrong
WOW
The Strategic Value Driven PMO
PETE CHOOSES DIFFERENTLY
30%+5%
Increase return on investment
VALUE DRIVEN
5%
Why do we perform projects?
IT IS THE SIZE OF THE HOLES - SMART
Proper Mix
– Present &
Future
Not too
Heavy
Only
Strategic
resources
matter!
Strategic resource identification
NON STRATEGIC IS STILL IMPORTANT
Strategic decision rule - CCPM
GLOBAL RESOURCE MANAGEMENT VERTICAL RULE
Increase return on investment
VALUE DRIVEN
30%
30% overhead Process & Scopes
NON VALUE ADDED
30%
Increased visibility reduce NVA
AGILE – AN APPROACH TO REDUCE OVERHEAD
30%+5% =
Combine global and local
THE AGILE PMO
30%
5%
30%+5% =
200%
The business as usual
PMO that does process &
reporting and waterfall
executed projects is
detrimental to
organization health
Kanban and Scrum
are partial bottom
up solutions
Value driven PMO
• Creating unified visibility and prioritization of
project and resource status – Kanban? 5%
• Analyze value added work 30%
• Interface with Agile teams, promote and let be.
OBJECTIVES
Interface with Agile teams
BIG GLOBAL CORPORATES
Interface with Agile teams
Generic IT departments
We’re not the bad guys  HUG
A PARADIGM SHIFT
http://www.pmhut.com/agile-pmo-a-new-hope
Project/
Resource
No guidelines Waterfall Agile Global + Local rule
Blue 11 15/11 19/11 15/11
White 7 7/3 16/7 3/3
Green 1 0/1 1/4 1/4
M/G 13 13/13 15/13 17/ 13
M/W 16 15/-5 7/16 16/16
Sum 48 50/23 58/51 52/47
50%
5%
30%
Take Away
• Are we performing the right
projects? With strategic resource?
• In what way are we Agile?
• How do we change the
organizational perceptions of what
a PMO is?
Questions?
Thank You
Michael Nir
sapir@sapir-cs.com
www.sapir-cs.com
increase your return
from projects!

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The agile PMO - Agile Business Conference 10.2014 London Michael nir

  • 1. The Agile PMO – value driven Agile Project Management Office Agile – the next Frontier London, 9th October 2014 Michael Nir President Sapir Consulting
  • 2. Starting with the end in mind • It is all about value – and no, documents don’t provide it; • PMO focus on strategic resources, Agile provides the local empirical leadership; • PMO perception change – being the good guys;
  • 3. Michael Nir • President @ Sapir Consulting - Business and management • Author of 11 bestseller business books • Global clients - telecoms, hi-tech, software development, R&D environments and petrochemical & infrastructure • Integrates the hard and soft parts of Business & Development • Hooked on mountain biking and travelling
  • 4. 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? • What makes a PMO – Agile? • Yes we have a PMO in the organization and… TRICKY QUESTIONS 
  • 5. 50%
  • 6. 5%
  • 7. 30%
  • 8. The numbers tell the story RESEARCH Gartner 2012 ESI 2013
  • 9. How did we get here? THE STORY OF PETE
  • 10. The PMO charter Build me a PMO worthy of Londec! Yes Master THE STORY OF PETE
  • 11. The first steps… What to do? Maybe some research? Analysis of Current state? Interviews? I know… THE STORY OF PETE
  • 12. How did we get here? PAIR ACTIVITY Provide a Mission / Vision statement for a PMO
  • 13. The Mission The mission of the Project Management Office (PMO) is to provide an enterprise-wide approach to identify, prioritize, and successfully execute a technology portfolio of initiatives and projects that are aligned with the Helsink strategic goals and educational vision… THE STORY OF PETE
  • 14. I need a Home The Gap Analysis – Stakeholders Worthy PMO Strategic Alignment No Tools No Tools Training Training No Tools No Process LEAD EXPECTATIONS
  • 15. The Gap Analysis – Executives Worthy PMO Strategic Alignment I need Reports! Better Control! A methodology NOW LEAD EXPECTATIONS
  • 16. 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 KOTTER 8 STEP OF CHANGE LEADERSHIP
  • 17. Three months – invest in? What Would You Do?
  • 18. Focus on form not value/return! PMO FAILURES • The tactical PMO • The process PMO • The chocking PMO • The tools PMO 50%
  • 19. Drowning in administration TACTICAL PMO • Super secretaries: – Collect data – Write down project plans – Manage project issues – Summarize meetings Glamor of being where ‘things happen’ - on top
  • 20. Escaping from Process Alcatraz PROCESS PMO • ‘The bureaucracy is expanding to meet the needs of the expanding bureaucracy’ (O. Wilde.)
  • 21. The Unavoidable Crash BITING TOO MUCH Losing Focus
  • 22. Focusing on tools not on value TOOLS TOOLS TOOLS Starting with tools - Eternalizes the wrong WOW
  • 23. The Strategic Value Driven PMO PETE CHOOSES DIFFERENTLY 30%+5%
  • 24. Increase return on investment VALUE DRIVEN 5%
  • 25. Why do we perform projects? IT IS THE SIZE OF THE HOLES - SMART Proper Mix – Present & Future Not too Heavy Only Strategic resources matter!
  • 26. Strategic resource identification NON STRATEGIC IS STILL IMPORTANT
  • 27. Strategic decision rule - CCPM GLOBAL RESOURCE MANAGEMENT VERTICAL RULE
  • 28. Increase return on investment VALUE DRIVEN 30%
  • 29. 30% overhead Process & Scopes NON VALUE ADDED 30%
  • 30. Increased visibility reduce NVA AGILE – AN APPROACH TO REDUCE OVERHEAD
  • 32. Combine global and local THE AGILE PMO 30% 5%
  • 33. 30%+5% = 200% The business as usual PMO that does process & reporting and waterfall executed projects is detrimental to organization health Kanban and Scrum are partial bottom up solutions
  • 34. Value driven PMO • Creating unified visibility and prioritization of project and resource status – Kanban? 5% • Analyze value added work 30% • Interface with Agile teams, promote and let be. OBJECTIVES
  • 35. Interface with Agile teams BIG GLOBAL CORPORATES
  • 36. Interface with Agile teams Generic IT departments
  • 37. We’re not the bad guys  HUG A PARADIGM SHIFT http://www.pmhut.com/agile-pmo-a-new-hope
  • 38. Project/ Resource No guidelines Waterfall Agile Global + Local rule Blue 11 15/11 19/11 15/11 White 7 7/3 16/7 3/3 Green 1 0/1 1/4 1/4 M/G 13 13/13 15/13 17/ 13 M/W 16 15/-5 7/16 16/16 Sum 48 50/23 58/51 52/47
  • 39.
  • 40.
  • 41. 50%
  • 42. 5%
  • 43. 30%
  • 44. Take Away • Are we performing the right projects? With strategic resource? • In what way are we Agile? • How do we change the organizational perceptions of what a PMO is?

Editor's Notes

  1. This is the big problem – the next steps after the gap analysis. Losing sight if the end goals with so many tactical short term things to do
  2. Outward acceptance not internalized Double reporting mechanism - formal plans and actual execution
  3. Any pmo that doesn’t understand that resource pool management is key to it’s existence is doomed to fail
  4. In conclusion, focusing on value is central to the implementation and management of a PMO. Value to the organization is created by completing projects and rolling out products. PMOs support value creation through decision-making from a portfolio management perspective. Projects that are beneficial to the portfolio and the organization are streamlined, while projects that are not beneficial to the portfolio and the organization are staggered or canceled. The portfolio resource pool provides the leading constraint to overall value creation, as project completion in most scenarios is impacted by resource availability. Therefore, the greatest value a PMO can provide is the analysis, update and management of the resource pool. Other PMO activities should be judged according to the benefit they produce in accordance with the proper management of the resource pool.
  5. In conclusion, focusing on value is central to the implementation and management of a PMO. Value to the organization is created by completing projects and rolling out products. PMOs support value creation through decision-making from a portfolio management perspective. Projects that are beneficial to the portfolio and the organization are streamlined, while projects that are not beneficial to the portfolio and the organization are staggered or canceled. The portfolio resource pool provides the leading constraint to overall value creation, as project completion in most scenarios is impacted by resource availability. Therefore, the greatest value a PMO can provide is the analysis, update and management of the resource pool. Other PMO activities should be judged according to the benefit they produce in accordance with the proper management of the resource pool.
  6. In conclusion, focusing on value is central to the implementation and management of a PMO. Value to the organization is created by completing projects and rolling out products. PMOs support value creation through decision-making from a portfolio management perspective. Projects that are beneficial to the portfolio and the organization are streamlined, while projects that are not beneficial to the portfolio and the organization are staggered or canceled. The portfolio resource pool provides the leading constraint to overall value creation, as project completion in most scenarios is impacted by resource availability. Therefore, the greatest value a PMO can provide is the analysis, update and management of the resource pool. Other PMO activities should be judged according to the benefit they produce in accordance with the proper management of the resource pool.
  7. Any pmo that doesn’t understand that resource pool management is key to it’s existence is doomed to fail
  8. Any pmo that doesn’t understand that resource pool management is key to it’s existence is doomed to fail
  9. Any pmo that doesn’t understand that resource pool management is key to it’s existence is doomed to fail
  10. Understand what drives value -