WEBINAR Scaling Agile Changes The Face Of Today’s PMO Margo Visitacion, Vice President, Principal Analyst March 29, 2016. Call in at 12:55 p.m. Eastern time

Agenda Customer obsession is disrupting the traditional CIO role. Digital disruption calls for an Agile mindset. The Agile PMO: What good looks like The path ahead: Portfolio ecosystem

78% of global executives cite improving customer experience as the No 78% of global executives cite improving customer experience as the No. 1 priority for differentiation. Image source: The Sacramento Bee (http://blogs.sacbee.com/photos/2013/07/now-things-get-serious-at-tour.html)

71% 70% “Our strategic planning process places a high priority on enhancing customer acquisition, retention, and loyalty.” of marketing leaders agree. of tech management leaders agree. “Agree that the CIO is actively engaged in the strategic planning process” 61% 76% Image source: KHS Bicycles (http://khsbicycles.com/team/professional-mountain-bike-racing/factory-pits/) Source: Forrester/Forbes Q3 2014 US Marketing And Tech Management Survey

CIO spending is not in alignment. Source: “The CIO Mandate: Engaging Customers With Business Technology” Forrester report

Agenda Customer obsession is disrupting the traditional CIO role. Digital disruption calls for an Agile mindset. The Agile PMO: What good looks like The path ahead: Portfolio ecosystem

Image source: Scaled Agile (www.scaledagileframework.com)

Agility and experimentation are key skills in a disruptive marketplace. Torchbearer CEOs put more emphasis on agility and experimentation. Significant gaps exist between torchbearers and followers. Image sources: IBM (http://www-935.ibm.com/services/c-suite/study/studies/ceo-study and http://www-935.ibm.com/services/c-suite/study/studies/cio-study) Source: IBM 2015 Global C-suite Study

Customer focus changes how businesses organize. 66% 73% Source: “Three Best Practices To Improve Strategic Planning And Portfolio Management” Forrester report

Agile puts tech teams closer to the customer. “More than just adopting an Agile methodology, companies are adopting an Agile mindset.” Source: “The 2015 State Of Agile Development: Learn From Agile Expert Firms” Forrester report

An Agile mindset puts PMOs into the crosshairs. Too centralized — 38% of PMO and project managers are in the same group. Suffer the worst relationships with development teams 48% have a positive relationship (compared to 65% with business users). Business/IT trust and support 60% cite at least a moderate challenge.

Agenda Customer obsession is disrupting the traditional CIO role. Digital disruption calls for an Agile mindset. The Agile PMO: What good looks like The path ahead: Portfolio ecosystem

How? Stop thinking inside-out. PMO Command /enforce Reporting Training Tools Project templates What methodology should I push out? How can I make them listen to me? How do I make them use the tools I selected? Can I get support for certification training?

How? Start thinking outside-in. What are our strategic themes? PMO Capacity planning Value stream prioritization Agile leadership/ coaching Analysis portfolio ecosystem Portfolio facilitation How do we select for value? How do we help our teams? What are the right programs? Did we achieve our objectives? What do our customers need?

Facilitation through: New responsibilities Provide transparency. Facilitation through: Lean analytics Data visualization Coaching Managing Lean coaches

Strategic communication and facilitation New skill sets Performance Analysis/coaching Strategic communication and facilitation PMO director Portfolio manager Data scientist Agile leader Coaches Technology

PMO role in strategic planning office Develops framework and cadence Provides guidance Facilitates process Chief strategist Virtual planning teams Product owners Architecture Business owners Release train engineers Value stream engineers Finance Agile PMO Scrum master CoEs Scrum teams Delivery teams Activity decision-maker Brings expertise Supports decision-makers Executes release trains Accountable for decision/execution outcome

A latticed approach provides support, not bureaucracy. Strategic planning office (SPO) Agile PMO IT project delivery Operations project delivery Business unit PMO (product) (marketing) Sales

Three characteristics of Agile planning processes Agile PMO as a facilitator Agile PMO as an analyst Agile PMO as a facilitator Source: “Customer-Obsessed Companies Integrate Strategic Planning And Delivery” Forrester report

Facilitate: Use value streams to help prioritize. Sales and marketing Human resources Finance Logistics Call center Time-to-delivery Value Stream Budgeting Can Value Stream give me a clearer understanding of costs? Can this help align with strategic objectives? Will this help with faster, better decision-making and problem resolution?

Facilitate: continuous planning and delivery The living road map: continuous planning on a cadence Yearly plans for initiatives (budget) Release planning by quarter Q1 Q2 Q3 Q4 DevOps DevOps DevOps DevOps FY planning Road map review Road map review Road map review FY planning Portfolio update Portfolio update Portfolio update Portfolio update Source: ADP/Forrester

Support teams by limiting WIP/managing dependencies. Planning teams Senior product/program owner PPMO supports Development leader t t t t Scrum squads Architect/UX leader t t t t t t t t Scrum master Shared services DevOps ePMO CoEs Arch Test DevOps Arch/Dev PCOE

Agenda Customer obsession is disrupting the traditional CIO role. Digital disruption calls for an Agile mindset. The Agile PMO: What good looks like The path ahead: Portfolio ecosystem

The portfolio ecosystem: Transparency Portfolio management tools Value Capacity Data Time to realize Finance EAMS ALM CRM ERP CMDB

The Agile PMO Agile PMO shortlist Understand pains to prioritize quick wins. Over-allocated key resources Lack of visibility at dependencies at the portfolio level Inconsistent issue and change management Insufficient change management to prepare organization Inconsistent messaging Take a pragmatic approach. Kanban prioritization Time box and commitment over schedules (really!) Focus on health, capacity, and limiting work in progress. Identify waste, and get rid of obstacles. Start capturing data — determine patterns for performance measurement.

Agile KPIs and metrics Immediately actionable Negotiable Valuable Estimable Sized to fit Testable Specific Measurable Achievable Relevant Timely Actionable Understandable Accessible Productivity Value Quality Velocity Business value delivered/ranked items committed and delivered Cost of delay Features delivered Success criteria of epic met Customer satisfaction Features accepted Successful delivery of strategic themes Code quality

Recommendations Clarify the vision for the PMO with execs, and come to agreement about objectives, goals, and outcomes. Put yourselves in your customers’ shoes. Use value streams to identify priorities and reduce waste. Measure your PMO on engagement and enablement.

Margo Visitacion mvisitacion@forrester.com