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The Agile PMO
Value-driven
Agile Project Management
Office
PMI Chicago,
9th March 2016
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
m.nir@sapir-cs.com
The Agile PMO – great results NOW
Are we on the same page?
The Agile PMO – great results NOW
THIS HAPPENED 14 YEARS AGO
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;
The Agile PMO – great results NOW
PMOs – perceptions
• 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?
• Yes we have a PMO in the organization and…
TRICKY QUESTIONS 
The Agile PMO – great results NOW
Truly – PMOs don’t Deliver
RESEARCH
Gartner 2012
ESI 2013
The Agile PMO – great results NOW
Truly – PMOs don’t Deliver -2
STATE OF PMOs 2015
The Agile PMO – great results NOW
>> 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
The Agile PMO – great results NOW
PMBOK – usual suspect
The Agile PMO – great results NOW
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
The Agile PMO – great results NOW
The PMO Evolution
Build me a
PMO worthy
of Maine-
tech!
Yes
Master
THE STORY OF PETE
The Agile PMO – great results NOW
The First Steps…
What to do?
Maybe some
research?
Analysis of Current
state?
Interviews?
I know…
THE STORY OF PETE
The Agile PMO – great results NOW
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 Agile PMO – great results NOW
The Gap Analysis – Executives
Worthy PMO
Strategic
Alignment
I need Reports!
Better Control!
A methodology
NOW
LEAD EXPECTATIONS
The Agile PMO – great results NOW
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
The Agile PMO – great results NOW
Discuss with the person next
What
Would
You Do?
The Agile PMO – great results NOW
We’re not thinking End-
to-End Agility
The Agile PMO – great results NOW
PMOs are not functioning as
value driven, change agents
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.)The Agile PMO – great results NOW
Focusing on Tools not on Value
TOOLS TOOLS TOOLS
Starting with
tools -
Eternalizes
the wrong
WOW
The Agile PMO – great results NOW
We can do
Better!
The Agile PMO – great results NOW
The Agile PMO – embrace value
The Agile PMO – great results NOW
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
HOW?
Agile PMO Value Enablement
The Agile PMO – great results NOW
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 – great results NOW
The Agile
PMO
 Selection and prioritization
Chose the valuable projects
 Resource allocation
Control/limit the mix
 Effective, streamlined
delivery
reduce waste
 Agile Leadership
Agile PMO Value Enablement
Toyota Defined 7 Wastes
The Agile PMO – great results NOW
They occur in projects as well
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
Team exercise – option 1
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
The Agile PMO - De
PMO is best
positioned to remove
project and process
waste
The Agile PMO – great results NOW
How Much???
The Agile PMO – great results NOW
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
• Limit projects in queue and process
• Prioritize projects
• Cancel projects
The Agile PMO – great results NOW
Write yourself a note
The Agile PMO – great results NOW
The Agile PMO – great results NOW
The Agile
PMO
 Selection and prioritization
Chose the valuable projects
 Resource allocation
Control/limit the mix
 effective, streamlined
delivery
reduce waste
 Agile Leadership
Agile PMO Value Enablement
PMO and Scaled Agile Framework
The Agile PMO – great results NOW
PMO leads the SAFe selection
Kanban
The Agile PMO – great results NOW
PMO is best
positioned to
Kanban the Selection
and Prioritization
The Agile PMO – great results NOW
Create Kanban
Buckets for
opportunities
The Agile PMO – great results NOW
If I stopped now…
The Agile PMO – great results NOW
The Agile PMO – great results NOW
The Agile
PMO
 Selection and prioritization
Chose the valuable projects
 Resource allocation
Control/limit the mix
 effective, streamlined
delivery
reduce waste
 Agile Leadership
Agile PMO Value Enablement
The Agile PMO – great results NOW
Project capacity planning is complex
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
Tools aiming to solve
the MPRCS problem
which is NP Hard fail,
managers resort to:
those who yell
loudest, allocation
rule
Traditional, portfolio driven, capacity
planning, fails
The Agile PMO – great results NOW
Operative
capacity
allocation should
be based on an
effective process
Emerging approaches implement
heuristics for capacity planning
The Agile PMO – great results NOW
PMO – top down
capacity planning
implementing best
practice tools that
deliver results
The Agile PMO – great results NOW
The Agile PMO – great results NOW
The Agile
PMO
 Selection and prioritization
Chose the valuable projects
 Resource allocation
Control/limit the mix
 effective, streamlined
delivery
reduce waste
 Agile Leadership
Agile PMO Value Enablement
It’s not the same language
Estimate:
• Team: we were wrong…it’s a learning
process…let’s retro
• Management: #$@!^%
The Agile PMO – great results NOW
It’s not the same language
Deadline:
• Management: our clients are looking for…
• Team: this is not part of the Agile Manifesto or
Scrum handbook, Software is difficult to predict
The Agile PMO – great results NOW
It’s not the same language
Commitment:
• Executive: You said it will be delivered in two
weeks
• Team: I’ve committed to commit I didn’t commit
to deliver
The Agile PMO – great results NOW
Agile leadership and the shoe
continuum
The Agile PMO – great results NOW
Extreme
Agile
Business
Portfolio
Let’s investigate further
Extreme Agile – the zealot
The Agile PMO – great results NOW
Extreme
Agile
Business
Portfolio
The Scrum Master
The Agile PMO – great results NOW
Extreme
Agile
Business
Portfolio
Product owner or coach
The Agile PMO – great results NOW
Extreme
Agile
Business
Portfolio
Agile in the cold
The Agile PMO – great results NOW
Extreme
Agile
Business
Portfolio
PMO comfortable
The Agile PMO – great results NOW
Extreme
Agile
Business
Portfolio
PMO portfolio level
The Agile PMO – great results NOW
Extreme
Agile
Business
Portfolio
Agile leadership and the shoe
continuum
The Agile PMO – great results NOW
Extreme
Agile
Business
Portfolio
No common ground
The Agile PMO – great results NOW
Extreme
Agile
Business
Portfolio
Talk and agree
The Agile PMO – great results NOW
Extreme
Agile
Business
Portfolio
Agile Leadership
Is primarily about:
• Creating understanding
• Getting them to talk
The Agile PMO – great results NOW
Leadership role
Review the Manifesto and 12 principles:
List leadership behaviors that an Agile PMO
should assume, in order to operate in an Agile
environment.
Identify the change required within the
organization to support the Agile PMO.
The Agile PMO - De
Agile Leadership
The Agile PMO – great results NOW
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
The Agile PMO – great results NOW
The Agile
PMO
 Selection and prioritization
Chose the valuable projects
 Resource allocation
Control/limit the mix
 effective, streamlined
delivery
reduce waste
 Agile Leadership
Agile PMO Value Enablement
50%
The Agile PMO – great results NOW
Maybe 50% is not all that bad?
Actually we must change…
• Organization innovation is delivered through
projects
• Our competitors are figuring out how to deliver
faster and faster and yet faster
The Agile PMO – great results NOW
The Agile PMO – great results NOW
Faster and faster and yet faster
We must CHANGE!
PMO and project
organization needs
to re-focus on Value
The Agile PMO – great results NOW
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.
The Agile PMO – great results NOW
Learn how to increase
your Return from Projects!
The Agile PMO – great results NOW
April 1st South Station Boston
PMICMASS code for discount
Hurry – places are limited
https://sapir-cs.com on Eventbrite
Agile PMO one-day Workshop
The Agile PMO – great results NOW
Executive Sail Agile Adventures
Starting this
summer in
Boston

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PMI Chicago Agile PMO Michael Nir

  • 1. The Agile PMO Value-driven Agile Project Management Office PMI Chicago, 9th March 2016 Michael Nir President Sapir Consulting US The Agile PMO – great results NOW
  • 2. 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 m.nir@sapir-cs.com The Agile PMO – great results NOW
  • 3. Are we on the same page? The Agile PMO – great results NOW THIS HAPPENED 14 YEARS AGO
  • 4. 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; The Agile PMO – great results NOW
  • 5. PMOs – perceptions • 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? • Yes we have a PMO in the organization and… TRICKY QUESTIONS  The Agile PMO – great results NOW
  • 6. Truly – PMOs don’t Deliver RESEARCH Gartner 2012 ESI 2013 The Agile PMO – great results NOW
  • 7. Truly – PMOs don’t Deliver -2 STATE OF PMOs 2015 The Agile PMO – great results NOW >> 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%)
  • 8. 50% Failures The Agile PMO – great results NOW
  • 9. PMBOK – usual suspect The Agile PMO – great results NOW An organizational structure that standardizes the project-related governance processes and facilitates the sharing of resources, methodologies, tools and techniques PMBOK 5th edition
  • 10. How did we get here? THE STORY OF PETE The Agile PMO – great results NOW
  • 11. The PMO Evolution Build me a PMO worthy of Maine- tech! Yes Master THE STORY OF PETE The Agile PMO – great results NOW
  • 12. The First Steps… What to do? Maybe some research? Analysis of Current state? Interviews? I know… THE STORY OF PETE The Agile PMO – great results NOW
  • 13. 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 Agile PMO – great results NOW
  • 14. The Gap Analysis – Executives Worthy PMO Strategic Alignment I need Reports! Better Control! A methodology NOW LEAD EXPECTATIONS The Agile PMO – great results NOW
  • 15. 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 The Agile PMO – great results NOW
  • 16. Discuss with the person next What Would You Do? The Agile PMO – great results NOW
  • 17. We’re not thinking End- to-End Agility The Agile PMO – great results NOW PMOs are not functioning as value driven, change agents
  • 18. 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
  • 19. Escaping from Process Alcatraz PROCESS PMO • ‘The bureaucracy is expanding to meet the needs of the expanding bureaucracy’ (O. Wilde.)The Agile PMO – great results NOW
  • 20. Focusing on Tools not on Value TOOLS TOOLS TOOLS Starting with tools - Eternalizes the wrong WOW The Agile PMO – great results NOW
  • 21. We can do Better! The Agile PMO – great results NOW
  • 22. The Agile PMO – embrace value The Agile PMO – great results NOW 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
  • 23. HOW? Agile PMO Value Enablement The Agile PMO – great results NOW The Agile PMO  Selection and prioritization Chose the valuable projects  Resource allocation Control/limit the mix  Effective, streamlined delivery reduce waste  Agile Leadership
  • 24. The Agile PMO – great results NOW The Agile PMO  Selection and prioritization Chose the valuable projects  Resource allocation Control/limit the mix  Effective, streamlined delivery reduce waste  Agile Leadership Agile PMO Value Enablement
  • 25. Toyota Defined 7 Wastes The Agile PMO – great results NOW
  • 26. They occur in projects as well 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
  • 27. Team exercise – option 1 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 The Agile PMO - De
  • 28. PMO is best positioned to remove project and process waste The Agile PMO – great results NOW
  • 29. How Much??? The Agile PMO – great results NOW 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
  • 30. Application: Kanban the Waterfall BEST PRACTICE EXPERIENCE • Limit projects in queue and process • Prioritize projects • Cancel projects The Agile PMO – great results NOW
  • 31. Write yourself a note The Agile PMO – great results NOW
  • 32. The Agile PMO – great results NOW The Agile PMO  Selection and prioritization Chose the valuable projects  Resource allocation Control/limit the mix  effective, streamlined delivery reduce waste  Agile Leadership Agile PMO Value Enablement
  • 33. PMO and Scaled Agile Framework The Agile PMO – great results NOW
  • 34. PMO leads the SAFe selection Kanban The Agile PMO – great results NOW
  • 35. PMO is best positioned to Kanban the Selection and Prioritization The Agile PMO – great results NOW
  • 36. Create Kanban Buckets for opportunities The Agile PMO – great results NOW
  • 37. If I stopped now… The Agile PMO – great results NOW
  • 38. The Agile PMO – great results NOW The Agile PMO  Selection and prioritization Chose the valuable projects  Resource allocation Control/limit the mix  effective, streamlined delivery reduce waste  Agile Leadership Agile PMO Value Enablement
  • 39. The Agile PMO – great results NOW Project capacity planning is complex 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
  • 40. Tools aiming to solve the MPRCS problem which is NP Hard fail, managers resort to: those who yell loudest, allocation rule Traditional, portfolio driven, capacity planning, fails The Agile PMO – great results NOW
  • 41. Operative capacity allocation should be based on an effective process Emerging approaches implement heuristics for capacity planning The Agile PMO – great results NOW
  • 42. PMO – top down capacity planning implementing best practice tools that deliver results The Agile PMO – great results NOW
  • 43. The Agile PMO – great results NOW The Agile PMO  Selection and prioritization Chose the valuable projects  Resource allocation Control/limit the mix  effective, streamlined delivery reduce waste  Agile Leadership Agile PMO Value Enablement
  • 44. It’s not the same language Estimate: • Team: we were wrong…it’s a learning process…let’s retro • Management: #$@!^% The Agile PMO – great results NOW
  • 45. It’s not the same language Deadline: • Management: our clients are looking for… • Team: this is not part of the Agile Manifesto or Scrum handbook, Software is difficult to predict The Agile PMO – great results NOW
  • 46. It’s not the same language Commitment: • Executive: You said it will be delivered in two weeks • Team: I’ve committed to commit I didn’t commit to deliver The Agile PMO – great results NOW
  • 47. Agile leadership and the shoe continuum The Agile PMO – great results NOW Extreme Agile Business Portfolio Let’s investigate further
  • 48. Extreme Agile – the zealot The Agile PMO – great results NOW Extreme Agile Business Portfolio
  • 49. The Scrum Master The Agile PMO – great results NOW Extreme Agile Business Portfolio
  • 50. Product owner or coach The Agile PMO – great results NOW Extreme Agile Business Portfolio
  • 51. Agile in the cold The Agile PMO – great results NOW Extreme Agile Business Portfolio
  • 52. PMO comfortable The Agile PMO – great results NOW Extreme Agile Business Portfolio
  • 53. PMO portfolio level The Agile PMO – great results NOW Extreme Agile Business Portfolio
  • 54. Agile leadership and the shoe continuum The Agile PMO – great results NOW Extreme Agile Business Portfolio
  • 55. No common ground The Agile PMO – great results NOW Extreme Agile Business Portfolio
  • 56. Talk and agree The Agile PMO – great results NOW Extreme Agile Business Portfolio
  • 57. Agile Leadership Is primarily about: • Creating understanding • Getting them to talk The Agile PMO – great results NOW
  • 58. Leadership role Review the Manifesto and 12 principles: List leadership behaviors that an Agile PMO should assume, in order to operate in an Agile environment. Identify the change required within the organization to support the Agile PMO. The Agile PMO - De
  • 59. Agile Leadership The Agile PMO – great results NOW
  • 60. 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
  • 61. The Agile PMO – great results NOW The Agile PMO  Selection and prioritization Chose the valuable projects  Resource allocation Control/limit the mix  effective, streamlined delivery reduce waste  Agile Leadership Agile PMO Value Enablement
  • 62. 50% The Agile PMO – great results NOW
  • 63. Maybe 50% is not all that bad? Actually we must change… • Organization innovation is delivered through projects • Our competitors are figuring out how to deliver faster and faster and yet faster The Agile PMO – great results NOW
  • 64. The Agile PMO – great results NOW Faster and faster and yet faster
  • 65. We must CHANGE! PMO and project organization needs to re-focus on Value The Agile PMO – great results NOW
  • 66. 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. The Agile PMO – great results NOW
  • 67. Learn how to increase your Return from Projects! The Agile PMO – great results NOW April 1st South Station Boston PMICMASS code for discount Hurry – places are limited https://sapir-cs.com on Eventbrite Agile PMO one-day Workshop
  • 68. The Agile PMO – great results NOW Executive Sail Agile Adventures Starting this summer in Boston