HOUSTON, TX, USA 5 8 NOVEMBER 2017 #PMOSym

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1 HOUSTON, TX, USA 5 8 NOVEMBER 2017 #PMOSym PMO17BR312 Agile Transformation Through Effective Leveraging of PMO Capabilities Dr. Edivandro Conforto, Researcher and Consultant Elaine Augusto, Head of PMO

2 Learning Objectives To understand how the PMO can tailor its capabilities and services to successfully support the agile transformation To recognize key characteristics, practices and factors in order to develop agility using a hybrid approach To identify key challenges and issues when adopting agile practices and culture in more traditional organizational contexts To identify what practices and competencies can lead to improved performance for their organizations based on the case results 2

3 Agenda Case overview & motivation PMO characteristics and practices adopted PMO support to agile practices Result analysis (participants perceptions) Key takeaways How to get started? Q&A 3

4 The PMO is not static! It must be an evolving, organic structure that supports the organization in delivering its strategic objectives. Dr. Edivandro Conforto 4

5 The Case Global company 75,000 employees 170+ manufacturing sites around the globe Revenue 11.5 billion (2015) The Business Unit Technology Centers (1,900+ employees worldwide) Technology Center Brazil, São Paulo State, 280 employees Developed products and new technologies produced in 60 countries 5

6 The Motivation Excellence in planning, controlling and managing new product and technology development projects Balanced Score Card (BSC) Goal 6

7 The Context PMO Characteristics Team = two persons (full time) Support and preparation of management and technical project meetings Project documents monitoring and control Process and tools support and training Progress and senior management reports Register and disseminate lessons learned 7

8 The Context Product Development Process The organization adopts a phase-gate approach, highly mature and standardized; global and regional meetings to assess project progress, risks, etc Deliverable Deliverable Deliverable Deliverable Gate Gate Gate Deliverable Deliverable *Figure to illustrate the process in use. 8

9 Understanding the Challenges We conducted an informal survey with 12 project managers Top three issues Communication Autonomy Unproductive meetings 9

10 What Practices Were Adopted (1/2) Project room (right beside the portfolio director s room) Use of visual boards and sticky notes to support discussion and register key information charts, graphics, etc. Spreadsheet to register key issues and risks that are urgent and need immediate action List containing all projects for that portfolio (fixed on the wall) Project leaders prepare one page status for each project 10

11 What Practices Were Adopted (2/2) Two-level planning and controlling approach (phase x iteration) Use of a web-based collaboration software and instant messaging share information quickly Fast talks (daily informal meetings 30 minutes); everyone is invited. It happens at the same time and same place (project room) Active involvement of the key stakeholder (responsible for the portfolio of projects and business unit director) PMO facilitates the meeting; prepare the room and data about the projects 11

12 How Did the PMO Support These Practices? 1 Prepare and maintain the project room graphics, whiteboards, etc. Maintain information about projects Facilitate the discussion or meeting. Make sure every project is discussed and all participants have a chance to speak Register all relevant information about the projects, using sticky notes or the documents fixed on the wall Coordinate next steps and organize the agenda for actions across projects. Risk mitigation, re-planning, etc. 5 Coach participants about key concepts and how to use agile practices more effectively 12

13 Measurement of Results and Benefits 13

14 How Did We Do It? We followed a three-step approach to implement practices and measure their benefits: Define Practices Based on the agility-critical factors Key motivations for improvement Preliminary interviews Select Pilots 1 first project (3 months) Selected projects that were initiated 7 pilot projects Different projects Measure Results Defined metrics to evaluate team and leadership perceptions Created an assessment tool (online) using the agility assessment tool Collected data 14

15 Demographics (Total of 21 People) Have you ever used agile practices before? Analysis performed considering two groups: 5, 24% 9, 43% 16, 76% 12, 57% Yes No Project Team (Project Leaders and Team Members) Leadership (Directors, Portfolio Manager, Functional Managers, PMO Leader, Functional Area representatives) 15

16 Management Process Scale: (1) Completely Disagree (7) Completely Agree Management Process Improvement Characteristics (Group Average) Q4.8. Improved the frequency in which partial results are discussed/verified Q4.7. Improved process flexibility to absorb changes Q4.6. Reduced rework and resource waste Q4.5. Improved team alignment and understanding regarding project deliverables Q4.4. Reduced time spent to create management documents Q4.3. Increased the project progress visibility Q4.2. Reduced time spent with progress meetings Q4.1. Simplify monitoring and controlling process Project Team (n=9) Leadership (n=12) Leadership Project Team *Difference is statistically significant 16

17 Project Team These practices are helpful to ensure new information is shared with all involved. * These fast talk meetings contribute to align information and make it effectively flow between all involved to improve decision making. * These practices contributed to improving communication effectiveness... Leadership Contribute to team members, keep up to date reducing time and energy spent on gathering information. * The fast communication, anticipating events and the discipline to always talk about critical topics of the projects are the main changes brought by this approach. * *Comments from participants 17

18 Project Team The fast talks speed up the management aspect, but it is being used to share technical information but the duration of these meetings are not long enough. * However, for technological-driven products, we need to seek the right balance Leadership They contribute to aligning information help the team be focused on the main goals. However, technical discussions are not allowed during the fast talk, with overemphasis on management aspects of the project. Here, the main focus should be the technical aspects! * *Comments from participants 18

19 Goal Alignment Scale: (1) Completely Disagree (7) Completely Agree Improvements Related to the Project Goal Alignment Q5.3. Improved goal alignment (time, cost, quality) according to stakeholders expectations Q5.2. Improved Team understanding about projects contribution to business goals Q5.1. Improved team comprehension about project goals Leadership Project Team Project Team (n=9) Leadership (n=11) Scale: (1) Completely Disagree (7) Completely Agree *No statistically significant differences were found 19

20 Leadership I have no doubt this contributes to a better comprehension of the main goals, especially for new team members. Constant alignment helps to drive results, but it also has its downside it needs balance Project Team Daily discussion about critical points in the projects favored the rapid decision making. The excess of contact with senior management leaves projects exposed to personal desires and goals, which can negatively impact performance and overall stakeholder alignment. *Comments from participants 20

21 Communication Scale: (1) Completely Disagree (7) Completely Agree Improvements in Communication Q7.5. Increased speed to access relevant information from other areas involved Q7.4. Increased team and stakeholders communication speed Q7.3. Increased comprehension about the information shared Q7.2. Increased information flow between team members Q7.1. Increased project information sharing speed Project Team (n=9) Leadership (n=12) Leadership Project Team *Difference is statistically significant 21

22 Leadership We need to have a more collaborative environment where everyone is considered part of the project. * Communication has to be effective at a cross-functional level, not only at the local team level Project Team There is a better alignment between the stakeholders (senior management) and the project leaders. * These practices are very useful for the local teams (same business unit), but I don t see the same benefits for other groups. * *Comments from participants 22

23 Team s Agility Capabilities Scale: (1) Completely Disagree (7) Completely Agree Improvements in the Team s Agility Capabilities Q12.5. Increased speed in implementing approved changes Q12.4. Increased speed in communicating approved changes to other areas Q12.3. Increased speed in communicating approved changes to team members Q12.2. Increased speed to approve project changes Q12.1. Increased speed in collecting information to analyze a problem or risk Project Team (n=9) Leadership (n=12) Leadership Project Team *Difference is statistically significant 23

24 Agility starts at the team level, and it is sustained from the top. It needs to be scaled and supported by all executives The approach of fast talk seems to be working pretty well, but we still need more work to make it part of the process. * Other areas have to be convinced of this approach use less paper. * *Comments from participants 24

25 Project Performance Scale: (1) Completely Disagree (7) Completely Agree Improvements in Project Performance Q11.7. Increased strategic goals and project results alignment Q11.6. Increased the likelyhoood to meet cost objectives Q11.5. Increased stakeholder satisfaction with project results Q11.4. Increased customer satisfaction with project results Q11.3. Improved project quality requirements alignment Q11.2. Reduced riscs effects or impact on project performance Q11.1. Increased speed to deliver resuls compared to the original plan Project Team (n=8) Leadership (n=11) Leadership Project Team *Difference is statistically significant 25

26 Agility alone will not be enough to substantially improve project performance and results We need to apply these practices in projects from the beginning, and I see a lot of potential. The experience registered in this evaluation is related to the ongoing projects and the complementary support to what we were using. * We still need to improve the discussion to cover more strategic issues between teams. * *Comments from participants 26

27 Organizational Agility Scale: (1) Completely Disagree (7) Completely Agree Improvements in Organizational Agility Q13.6. Speed to develop new technologies and innovation Q13.5. Speed to adapt ongoing projects Q13.4. Speed to resolve problems that require multiple areas Q13.3. Speed to adapt internal process to meet new demands and challenges Q13.2. Speed to adapt business portfolio of projects Q13.1. Speed to adapt strategy and business goals Project Team (n=9) Leadership (n=11) Leadership Project Team *Difference is statistically significant 27

28 Organizational agility is multi-level, cross-functional and cross-business Project Team we don t have the involvement of other areas of the organization. The team aligns the activities and changes with the stakeholders and has the responsibility to engage other areas so they can execute specific activities. * Leadership I saw many activities for the project level (group of projects), but I did not see anything specific to the portfolio level. * These practices need to be implemented in the whole organization. * *Comments from participants 28

29 Overall Satisfaction With the Implemented Practices Do you intend to use these practices in future projects? Would you recommend these practices to other teams in the organization? Would you stop using these practices and go back to the old approach? No 0% 11% No 0% 11% No 56% 83% Yes 67% 100% Yes 78% 100% Yes 8% 11% I don't know 0% 22% I don't know 0% 11% I don't know 8% 33% Leadership Project Teams Leadership Project Teams Leadership Project Teams 29

30 Key Takeaways PMOs should continuously adapt to deliver value to the organization. They are not supposed to be static! The PMO can be transformed into an agility center of excellence and provide support to leverage the combination of multiple management approaches and to scale agility capabilities. For complex, technology-driven projects, the best approach is going to be hybrid. It will be hard to shift to a pure agile approach Always consider additional factors (beyond agile practices) related to the organizational structure, culture and team to improve agility capabilities Be ready to navigate the implementation curve. It takes time! We will always find early adopters and enthusiasts, and people that don t want to challenge the status quo 30

31 How Can You Get Started? Next week: Identify some of the main challenges and opportunities to improve in the PPPM dimensions Next 90 days: Identify opportunities to leverage some of the agile practices discussed in this presentation Next 12 months: Promote training and learning opportunities; adopt a systematic approach to implement and test some practices; use the tips from this presentation to measure results 31

32 Thank you! Questions? 32

33 Contact Information Dr. Edivandro Conforto Dr. Eddi Conforto is a global research award winner and consultant, specially focused on organizational agility, hybrid approaches and agile management transformations. He was recognized by institutions such as the PMIEF, IPMA and POMS for his research in agile management. From 2013 to 2015, he lived in Boston, MA USA, and worked as a research associate (post-doctoral) at the Massachusetts Institute of Technology (MIT-CEPE) on global programs around agility, program management and system engineering topics. Dr. Conforto also serves as the Strategy Research Advisor at Brightline Initiative, a not-for-profit global coalition dedicated to help organizations bridge the gap between strategy design and implementation. Dr. Conforto has advised executives and teams from different industry sectors on how to successfully navigate the agile transformation in different perspectives, including project, program and portfolio project management offices and strategy implementation. He has co-authored three books, the most recent being Integrating Program Management and Systems Engineering (2017), and has published more than 30 articles, some of them in leading journals such as the Project Management Journal (PMJ), MIT Sloan Management Review (SMR), International Journal of Project Management (IJPM), and Journal of Engineering and Technology Management (JET-M). He teaches Agile Management at the MBA program at PECE-POLI, USP, Brazil. He holds a PhD and a master`s degree in agile innovation from the University of São Paulo, São Carlos School of Engineering (EESC-EI2). econforto@gmail.com LinkedIn: 33