Webinar PMO In 2020 Lean Adaptive Agile And

Webinar PMO In 2020: Lean, Adaptive, Agile, And Business-Focused Margo Visitacion, Vice President November 27, 2011. Call in at 10: 55 a. m. Eastern time

Agenda The PMO today The PMO in 2020: Modernize or die. Adapting to change

The PMO in 2020: Modernize or die. . You must evolve to exist; you must excel to succeed.

Are you delivering today? “How is your PMO perceived in delivering value to overall business growth based on where the PMO reports? ” CEO CIO 38% 22% 15% VP of IT Base: 693 PMO professionals; Source: Forrester/PMI April 2011 Global Project Management Office Online Survey © 2012 Forrester Research, Inc. Reproduction Prohibited 4

Are you removing obstacles and building trust, or are you adding bureaucracy and building distrust? Obstructionist Dishonest Management by checklist “The evil empire” Controlling Adds no value Unrealistic Doesn’t understand value Priorities are too. PMO’s view of project managers narrow Project managers’ view of the PMO 5

Methodology: PMOs seem to be evolving with business needs “Which of the following methodologies does your PMO support? ” (Federated e. PMO lead LOB/IT PMOs) PMBOK 78% Scrum/Lean/Agile 65% Waterfall 51% Methodology Source: Forrester/PMI April 2011 Global Project Management Office Online Survey © 2012 Forrester Research, Inc. Reproduction Prohibited 6

When we ask about specifics, the story changes “What is the focus of your PMO? ” (Methodology development) Base: 482 PMO professionals who have a PMO with a focus on methodology development; Source: Forrester/PMI April 2011 Global Project Management Office Online Survey © 2012 Forrester Research, Inc. Reproduction Prohibited 7

PMO archetypes Support Perfectionist Facilitator Control Scorekeeper Coach Manage Improve Source: July 30, 2012, “Govern Your Lean And Agile Adoption” Forrester report © 2012 Forrester Research, Inc. Reproduction Prohibited 8

In greater detail. . . Scorekeeper • Monitors progress • Consolidated communication • Disseminator of information • Command control Perfectionist • COE approach • Likes a centralized approach • Consultancy • Higher accountability © 2012 Forrester Research, Inc. Reproduction Prohibited Coach Facilitator • Focuses on improvement practices • Uses methodology as basis for improvements • Leverages some COE practices, but more pragmatic • Applies business need to planning and execution practices • Provides internal consultancy to support execution • Provides insight into capabilities 9

The PMO in 2020 Modernize or die. © 2012 Forrester Research, Inc. Reproduction Prohibited

Sound familiar? “We need to change. I know — we’ll adopt Agile!” It’s more than just the “cool new stuff. ” Agile is only part of the picture. © 2012 Forrester Research, Inc. Reproduction Prohibited 11

Yesterday’s Agile challenges focused only on development team efficacy • “Below the line” •

Tomorrow’s PMO must be: Teamoriented. Strategically focused. Valuedriven. Facilitative. PMO The challenge: You MUST

PMO archetypes Support Perfectionist Facilitator Control Scorekeeper Coach Manage Improve © 2012 Forrester Research,

Tomorrow’s PMOs facilitate value delivery and motivate their peers Chaos Linear © 2012 Forrester

Applying Lean: The PMO should be the change agent, not the traffic cop ©

It’s time to change the way PMOs think “What is the focus of your PMO? ” (PMO located at corporate level) (multiple responses accepted) Base: 191 PMO professionals who have their PMO located at the corporate level; Source: Forrester/PMI April 2011 Global Project Management Office Online Survey © 2012 Forrester Research, Inc. Reproduction Prohibited 17

Value-driven approaches Portfolio Identify capabilities/ weight. Program Capacity Project Advocate. Pull. Recommend. Measure. Dependencies Recommend. Measure. Mentor/coach. Measure. Get out of the way. Learn from: • Lean. • Scrum. • Business-driven deployment options. • Agile coaching (with a dose of pragmatism). • Investment management. © 2012 Forrester Research, Inc. Reproduction Prohibited 18

The Lean PMO • Establishes value-based delivery vision for the organization PMO director • Executive liaison • Drives team-based values Advisor/coach • Education Portfolio Planner/scheduler (if needed) • Builds program plans • Training • Identifies opportunities in the value stream • Mentor • Prioritization • Identifies bottlenecks • Cross-functional teams • Analysis • Reporting • Communities of practice • Financial reporting • Multipronged approaches © 2012 Forrester Research, Inc. Reproduction Prohibited • Identifies dependencies • Forecasting • Benefits realization support 19

Where should it sit? CEO Finance Program Ops Program Product/LOB IT/BT PMO Program/ project/ AWG Portfolio Focus on values, not archetypes. 20

Adapting to change © 2012 Forrester Research, Inc. Reproduction Prohibited 21

Lean and Agile change governance needs — focusing on the future, not tactical mechanics Value Facilitating portfoliorealization reporting driven business relationships Advising and communicating valuedriven change management Managing portfolio alignment Managing constraints and conflicting priorities based on value stream Forecasting demand Communicating resource constraints © 2012 Forrester Research, Inc. Reproduction Prohibited Resource planning 22

Four-pronged approach Organizations Culture Hire or refocus Values motivation Change Autonomy Teams © 2012

Starting on the journey Feedback loops Metrics PPM governance PPM tools © 2012 Forrester

Prepare for change © 2012 Forrester Research, Inc. Reproduction Prohibited 25

Community is necessary to make it stick Co. P Active participants Influencers Benefactors ©

Next steps 1. Establish the vision of the next-generation PMO for your organization. 2. Value must drive decisions — stay out of the way. 3. Factor culture into each area of focus. 4. Let the experts do their job, but provide guidelines and goalposts. 5. Use communities of practice to make it stick. © 2012 Forrester Research, Inc. Reproduction Prohibited 27

Thank you Margo Visitacion mvisitacion@forrester. com Twitter: @msmvnj