Knowledge Solution Services

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1 Knowledge Solution Services How a PMO can Support Agile Success Presented by David Herron

2 Why PMOs Are Important It is clear that the demand for technological services in the coming years will outpace any organization s resources and ability to provide them. Efforts to build static organizational structures will not be effective, given the sheer rate of change in our institutions. The establishment of a Project Management Office (PMO) coupled with the use of project management tenets is one strategy to control the onslaught of demand for new initiatives. Paper: The Project Management Office as an Organizational Strategy, Authors Lauriano and Johnstone, University of California, Davis 1999 PMOs are evolving. Shifting from the tactical to the strategic, PMOs are performing a widening range of work. They re supporting business programs outside IS, such as product launches and post-merger integration. And they re helping ensure that the enterprise invests in the best set of projects and programs and achieves the most benefits. Their stakeholder set is broadening as well to include business partners and external resources. GARTNER 2006

3 PMOs Evolve Over Time Strategic S c o p e of W o r k Tactical Program management Comprehensive program planning Change and risk management Coordination of project delivery Measurement of results Business-IT collaboration. Project management Initiation Deliverables Budget Scope Schedule Risks Resources Metrics. Scope of Initiatives IT Business-IT Enterprise Source: Adapted from New York City Housing Authority (NYCHA)

4 Define the PMO in your Organization The majority of the companies have a project management office Portfolio Management Office Program Management Office Project Management Office 0% 10% 20% 30% 40% 50% 60% 70%

5 The PMO Customer PMO s service both IT and the Business Business Units IT Department Both 0% 10% 20% 30% 40% 50%

6 Responsibilities within the PMO Basic project management activities lead the way Project scheduling Project budgeting Coordination of project delivery Change and risk management Resource management Performance measurement Project estimating Business-IT collaboration Mentoring Active portfolio performance monitoring Overall investment, benefit, risk optimization Comprehensive program planning Business environment change adaption Portfolio scope definition Other 0% 10% 20% 30% 40% 50% 60% 70% 80%

7 Size of the Customer Base the PMO Services Most PMO s are servicing a fairly large organization Less than % More than % %

8 Number of Projects the PMO Services Including a reasonable number of projects More than 50 projects projects Less than 20 projects 0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

9 PMO Resource Levels According to the Center for Business Practices, the average PMO has 8 PMs. More than 10 5 to 10 Less than 5 10% 30% 50% 70% 90%

10 PMO Maturity Levels Majority of companies are Level 1 and 2 Level 4 - Business driven: provides data and Level 4 - Business driven: provides data and information to drive business decisions information to drive business decisions Level 3 - Responsive: Level 3 - ubiquitous Responsive: and ubiquitous measured and measured Level 2 Level - Efficient: 2 - Efficient: consistent consistent and disciplined and discriplined Level 1 - Level Active: 1 - Active: documented documented processes, processes, but not but formalized not formalized Level 0 Level - Chaotic: 0 - Chaotic: no evidence no evidence of documented of documented processes processes 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

11 Value Contribution of PMO Over the Past Two Years Those companies showing a decline in value typically had limited PMO resources and were supporting large organizations with many projects Increased the value provided to the Increased the value provided organization to the organization Provided about Provided the about same the level same of value level of to value to the organization the organization Have seen Seen a a decline in in the value it it provides to to the the organization organization 0% 10% 20% 30% 40% 50% 60% 70%

12 Software Development Methodologies Waterfall Agile Spiral RUP Other 0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

13 PMO Highlights Organizationally - PMO s are centralized 71% Customer - Service provided to business 68% Benefits - Increased value to organization 62% PM Certification - not required 70% Maturity - Level % Improvement - better definition of roles 75%

14 How the PMO Can Provide Greater Value to the Organization Better define the PMO role in an agile Better define the PMO role in an agile environment environment Better define the Better role of define the PMO the role and of properly the PMO and set expectations properly set expectations Change where the PMO reports in the Change where the PMO reports organization in the organization Hire more qualified Hire PMO more resources qualified PMO resources Expand the use of the PMO to include serving Other the business units Expand the use of the PMO to include Other serving the business units 0% 10% 20% 30% 40% 50%

15 Core Characteristics Of Agile Vision and customer value driven User requirements change over time User requirements follow the cone of uncertainty Responding to change is critical Iterative, Feature driven development Delivery every cycle (2 4 weeks) Cycle tends to be full lifecycle Cycle ends with a user review (demo) A release plan outlines product development Collaborative Team intimacy (product owner and development staff) Short, shorter, shortest feedback loops Self organizing and self managed

16 Agile Project Governance Voices Voice of the team (SCRUM Master / Coach) Facilitates team activities, Coaches Clears internal blockages Leads and does Voice of the customer (Customer or Customer Proxy) Provides business direction Makes business decisions Prioritizes work on functionality Voice of the organization (PMO) Analyzes and reports overall data Facilitates BIG picture coordination Clears external blockers Stays out the way of the team

17 PMOs Supporting Agile Periodic status reporting can be scheduled to coincide with the sprint schedule. The PMO can report on what specifics (customer functionality) were delivered. Additionally, a burn-down chart can be used to show the tracking of tasks to planned time (days). The PMO may take on the role of ensuring that all the stakeholders are available and present at the sprint review and sprint planning meetings. The PMO may also take responsibility as the Scrum Master. The Scrum Master facilities the daily stand-up meetings and as such is responsible for resolving any roadblocks that are outside the control of the sprint team.

18 PMO As An Active Management Participant When the overall project outcomes are not expected to meet management and customer expectations the PMO needs to facilitate getting things back on track The PMO s job is to analyze and interpret overall measurement data for the purpose of forecasting the overall project outcome The sprint team develop, collect and consume measurement data within the team boundary Or Self managing teams require the necessary data, the PMO should be positioned to ensure that agile teams have the right data to be self-managed. If they do not have the data, they can not be self-managed

19 Agile Metrics Focus Areas Productivity Value Performance Quality Predictability

20 Velocity Burndown Chart The Burndown Chart reflecting team velocity is one of the standard artifacts mandated in the Scrum Framework. This chart reflects the rate at which the team can turn Product Backlog items into potentially shippable product increments. It is important for management to understand that the Burndown Chart is a predictability metric and its purpose is not to drive output (productivity). Its primary purpose is to inform management using empirical evidence how many features are likely to be delivered within a given time period. This aids management to do better release planning.

21 Effort Sprint Burndown Chart Example Burndown Chart Remaining Effot Ideal Line Days

22 Defect Counts Two metrics to track quality improvement: Post-Sprint Defect Arrival (leading indicator) Post-Release Defect Arrival (lagging indicator) Plotted against time (Sprints). The trending of these curves independently and relative to one another can tell us a great deal about the effect of the team s attempts to improve quality and about it s ability to drive down the open defect count.

23 Technical Debt Technical debt is undone work. In other words work that will have to be done in the future in order to bring the code base or other required deliverables to the required quality level. Technical debt is always added to the Product Backlog and is prioritized by the Product Owner and team in relation to all the other work. The units are story or function points (as for other Backlog items) and these are tracked against time (Sprints).

24 Work In Process Work In Process is a lean metric that helps a team track whether they are working collaboratively or not. The idea in an Agile team is for the whole team, as far as is reasonably possible, to collaborate on a single work item until it is done. This increases the rate of output, quality and cross-learning. It decreases the risk of unfinished items at the end of the Sprint, which results in waste.

25 Indexed Customer Satisfaction A customer satisfaction survey contains a number of questions aimed at assessing the customers view of the team and the work the team is delivering. While the questions are mostly qualitative and individual answers subjective, surveys taken regularly and across a variety of participants will yield useful trends. Recommended frequency is with or after each release of the product. If releases are infrequent then perhaps each sprint, but too often will become annoying for the participants. Around every 6 weeks to 3 months feels about right.

26 Agile Metrics Reinforce desired AGILE behavior Focus on results Measure trends Easy to collect Create real conversation ONLY WHAT IS ABSOLUTELY NEEDED 26

27 Thank You CONTACT INFORMATION David Consulting Group web site: David Herron 27