PMO In 2020: Lean, Adaptive, Agile, And Business-Focused 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 Next steps

The PMO in 2020: Modernize or die 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 4

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

Methodology: PMOs seem to be evolving with business needs “Which of the following methodologies does your PMO support?” (Federated ePMO lead LOB/IT PMOs) Methodology Waterfall 51% Scrum/Lean/Agile 65% PMBOK 78% Source: Forrester/PMI April 2011 Global Project Management Office Online Survey 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 7

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

In greater detail . . . Scorekeeper Monitors progress Consolidated communication Disseminator of information Command and control Perfectionist COE approach Likes a centralized approach Consultancy Higher accountability Coach Focuses on improvement practices Uses methodology as basis for improvements Leverages some COE practices, but more pragmatic Facilitator 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.

Sound familiar? “We need to change. I know — we’ll adopt Agile!” No behavioral change? New mask on an old problem It’s more than just the “cool new stuff.” Agile is only part of the picture.

Yesterday’s Agile challenges focused only on development team efficacy “Below the line” Narrow focus Good rate of success 12

Tomorrow’s PMO must be: Facilitative. Team- oriented. Strategically focused. Value- driven. The challenge: You MUST start today. 13

PMO archetypes Support Control Manage Improve Perfectionist Facilitator Control Scorekeeper Coach Manage Improve 14

Tomorrow’s PMOs facilitate value delivery and motivate their peers Chaos Linear Program Concurrent 15

Applying Lean: The PMO should be the change agent, not the traffic cop 16

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 17

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

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

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

Adapting to change

Lean and Agile change governance needs — focusing on the future, not tactical mechanics Managing portfolio alignment Forecasting demand Resource planning Communicating resource constraints Managing constraints and conflicting priorities based on value stream Value realization reporting Facilitating portfolio- driven business relationships Advising and communicating value- driven change management

Four-pronged approach Organizations Hire or refocus Values motivation Culture Change Autonomy Education and training a Teams Learning

Starting on the journey PPM governance Feedback loops Metrics PPM tools 24

Prepare for change

Community is necessary to make it stick CoP Active participants Influencers Benefactors Prior to this slide – add brain slide (from BQ/QA) – use that to drive the thought process change

Next steps Establish the vision of the next-generation PMO for your organization. Value must drive decisions — stay out of the way. Factor culture into each area of focus. Let the experts do their job, but provide guidelines and goalposts. Use communities of practice to make it stick.

Margo Visitacion mvisitacion@forrester.com Twitter: @msmvnj