HOUSTON, TX, USA | 5 – 8 NOVEMBER 2017
#PMOSym
PMO17BR409
Agile Transformation: How a PMO Can Walk the Talk
Deborah Strutt | Darebin City Council, Melbourne, AustraliaMaster of Project Management (MPM); Grad Dip. Prof Writing; P3O; MoP; MSP; Change Management; PRINCE2 Practitioner
Presenter Background
• Currently lead Enterprise PMO (EPMO) at City of Darebin
• 15+ years managing projects in tertiary & local govt. sectors
• Previous long career in creative culture industries
• Master of Project Management (MPM); Grad. Dip. Prof Writing;
• Multiple industry certifications: P3O; MoP; MSP; Change Management;
PRINCE2 Practitioner
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Session Overview & Learning Outcomes
• One PMO’s evolutionary implementation using Agile concepts
• Useful if just starting or want to refresh PMO
• I’ll offer tangible tools, methodology and lessons learned
• Multi jurisdictional, multi sector application
• Key to successfully delivering your strategic initiatives:
understanding importance of on-going stakeholder engagement
regularly reconnecting your org & execs with the value of the PMO
• Opportunity to ask questions at end
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Change
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“The only thing that is constant is Change”
– Heraclitus c.535 – c.475 BC
Transformation
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“Anyone who isn’t embarrassed by who they were last year, probably
isn’t learning enough!”
– Alain de Botton 2013
PMO Survival Rate
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• Anecdotally, more than 50% of PMOs are closed down within
3-5 years
• Rate is higher in organizations with a lower maturity, or a
’status quo’ type culture
“culture eats strategy for breakfast”
– Mark Fields (2006) attributed quote to Peter Drucker
• So, we need to create a PMO that is right for our organisation
Agile Transformation
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• Evolving a PMO is best managed as transformational
change program
• Requires responsiveness, resilience and ability to
adapt to fast-changing environment
• Use hybrid of Waterfall, Lean and Agile concepts and techniques
• Regular consultation during each iteration
• Incorporate feedback to ensure 'fit for purpose' product
• This approach ensures a greater likelihood of acceptance and success
A Quick Comparison
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18hrs9,373 miles / 15,084 km• USA and Australia about the same size
(land mass)
• Australia’s pop. 7% of US pop.
• USA – lower 48 states and District of Columbia
• Australia – 7 states and territories in the same
approx. area mass
• State of Victoria approx. same size as
Michigan or Minnesota
City of Darebin
• Melbourne > 6 times size of Houston or Oklahoma City
• Darebin area is ≈ Charleston and > twice size of Boston
or Baltimore
• One of Melbourne’s fastest growing municipalities
(city/region)
• Population around 154,000 with 13 languages
• Provides 100+ services to diverse community
• Delivery of AU$50 million annual capital works program
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Local Government and PMOs
• Responsibility to spend rate payer’s money wisely, transparently
• Looking to establish stronger PPM practices
• PMOs in local government a relatively new initiative
• Keen interest in:
developing PMO maturity
driving outcomes rather than output
demonstrating value add to the org
• Darebin is on leading edge in Victoria
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Improving P3M Maturity
Darebin PMO Background
• Dec 2014 I was recruited to set up PMO
• Unique opportunity – started with blank slate
• Tasked with setting up a PMO in a complex environment:
Awareness or org culture and politics at play, pockets of resistance
Expect the unexpected – responses to change are varied
None-the-less challenging
Reinforced the need for emotional intelligence, responsiveness and
resilience
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Mission for the PMO – Clarity of Purpose
• Improve delivery of capital works projects
in low maturity environment
• Improve PPM capability
• Introduce project governance framework
& processes
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• Incorporate broader portfolio perspective to support strategic alignment
• Enhance process for project selection, monitoring and reporting
Community of Practice
• One person can’t build a PMO and change an organisation alone
• It takes a Community of Practice to enable and support one person to lead
transformational change
• Unique approach to evolving Darebin’s PMO
Utilize Agile concepts
Two Communities of Practice as partners in Darebin PMO’s evolving
implementation journey
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Innovation Partnerships
• The first, most significant was an external, multi-
jurisdictional group (21 member Councils)
Benchmark for PMO functions, services and roles
Share and improve on others’ work (templates & tools)
Innovate and give back
• The second, an internal group of ‘champions’
collaborate with in developing, endorsing and modelling
iterative, incremental change
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Mixed Methodology
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• Avoided Big Bang approach in a low maturity org
• Combination of Evolution and Ad Hoc approaches
• Agile concepts – develop change initiatives iteratively
• Ensure the change is always small, done collaboratively
it’s more likely to succeed
• Capital works delivery improvement was planned
• Getting buy-in was planned & opportunistic
• Find ‘low hanging fruit’ and quick wins – be open to opportunities
Methodical approach to setting up EPMO
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• Clarity of purpose around why an EPMO
• Ongoing key stakeholder engagement was critical
• Developed 5 key tools to enable this
Blueprint (POTI Model) – as a workshop
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POTI AS IS TO BE HOW TO ACHIEVE
PROCESSES • Construction project delivery • Cease delivering construction projects
• Add delivery of complex, strategic non-construction projects & programs
• Centre of Excellence (CoE):
standard setting, coaching,
training with project focus
• Maintain current CoE: standard setting, coaching and training.
• Portfolio management with more focus on designing portfolio
management practices (standards) & exploiting EPMS capability
• Project, program & benefits management coaching & training
• Benefits management framework – focus on benefits & outcomes
mapping and realisation
ORGANISATION • Current PMO org structure • Add additional resources – Communications & Admin officer
• Change PM role to Program Specialist
TECHNOLOGY
INFORMATION
EPMO Roadmap endorsed EMT September 13 2016
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Darebin EPMO Functions and Service Offerings
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Enterprise Portfolio
Management Office
(EPMO)
Strategic Support + Portfolio Planning
Project Planning +
Delivery Support
Project Governance
Framework + Processes
Enterprise Portfolio
Management System
(EPMS)
Portfolio Monitoring +
Status Reporting
Centre of Excellence + Capability
Development
Implementing the EPMO Roadmap
• Incremental change not Radical
• Bring people along on the journey
• Key to a greater likelihood of acceptance:
Regular consultation at each iteration
Ability to adapt to and incorporate feedback
Be resilient and responsive
Continuous improvement techniques to ensure 'fit for purpose’
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EPMO Implementation Model
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Two continuous improvement techniques
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• Lean – more a philosophy: the elimination of waste in the pursuit of customer value
• Womack and Jones (2003) interpretation of Toyota Production System (TPS)
• Lean process improvement technique:
• Analyse and solve an issue by using ‘5 Whys’ Technique (Sakichi Toyoda circa
1930)
• Drill down by asking ‘why’ 5 times
• Arrive at root cause and develop solution or counter-measure
• PDCA (Demming, 1986) based on Shewhart’s (1930) PDSA
Reconnecting value (engage, engage, engage)
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• Incremental change delivered over number of years
• Impossible without ongoing top down support
• Organisation can easily lose sight of original intent
• Vital to engage EMT as owners of and partners in the ongoing
EPMO implementation
To enable EMT to continually reconnect with and reconfirm
the value proposition of the EPMO
Especially with changes in leadership team
Engage Implement
Review Improve
Reconfirm Revised
Roadmap
Reconnect with Value of EPMO
Endorsement, Consultation & Feedback Model
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Change Initiative
Developed Iteratively
Engage, Consult & Feedback
Loop
EPMO Champions
Group Endorse
Brief Directors
Individually
EMT Endorse
Present to Leadership
Group
Present to Work Units
Change has Begun
• Cycle of consultation, feedback,
endorsement & implementation
• Developed ‘bottom up’
• Endorsed and driven ‘top down’
Reconnection timing
• Revise and seek endorsement of the EPMO Roadmap annually
• Endorsement of key change initiatives as developed
• Ensures the change is endorsed, supported and communicated
appropriately through hierarchical structure
• Great opportunity for reconnecting value and reconfirming commitment
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• Reconnection needs to be done strategically
Too often and it may appear that you don't know what
you are doing
Not often enough and you may lose their interest
Who does the reconnection
• EPMO Sponsor facilitates at highest level
• Head of the EPMO take a leading & active role
• EPMO Champions Group re-engaged regularly to maintain ‘buy-in’
• How to ensure appropriate ongoing support?
Benefits review plan
Regular reviews of initiatives delivered
Surveys, feedback meetings & live polling
Demonstrated responsiveness
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2 Key Initiatives Delivering Maximum Impact
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• Technology has been a great tool
for engagement & consultation
• Collaborative system provided
‘best of breed’ PPM solution
• Extensive engagement as we built
our EPM System
• Extremely successful
EPM System – a ‘one-stop-hub’ for projects
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Pre EPMS Activities
• Done in multiple different places
• Migrated to EPMS
EPMSPID
Gantt Chart
% Complete in Power Budget
Comms Plan
Risk Register
Resource Management
Portfolio Dashboard
Report Status Update
Finance Integration
Governance Framework
GIS integration
Lessons / Issues
Collaborative Teamwork
New Activities
• New activities done in EPMS
• Collaboration – tool sits on SharePoint
EPMS
• One place for all activities, more efficiently
• ‘Single source of truth’ for portfolio information
Portfolio Dashboard Report
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• All projects reported in a single accountable, transparent dashboard
Portfolio & Project Management Framework
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• Portfolio Management
Framework
• Project Management
Framework
Project Management Framework (PMF)
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PM Governance Framework
Guidelines
Processes
Flowcharts
Tools and templates
PMF Phase with Process Flow
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• Each phase is colour
coded
• Entire phase on
single page
EPMO outcomes – the bottom line
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• Getting our Portfolio, Program and Project Management (PPM) right
• Leads to best value outcomes for stakeholders and the community
PORTFOLIO
Doing the Right Project
PROGRAM
•Doing it at the Right Time
PROJECT
•Doing it in the Right Way
EPMO
•Doing it with the Right Team
Observations
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• Watch out for competing demands
• Day-to-day business often takes priority over long-term
strategies (building PPM capability)
All the more reason why re-engagement upward is essential
Keep the vision strong with top down support
Be aware of the speed with which org can cope with change
• PM practice has a greater chance of success when capability
improvement is included in performance development plans
Take home message
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• Reconnect regularly to maintain the vision and support
• Need an approach and tools to facilitate reconnection:
Manage PMO implementation as transformational change
Continuous engagement, up and down (engage, engage, engage)
Articulated and measurable benefits to illustrate the value
Endorsed Roadmap reconfirmed at regular intervals by EMT
Don’t be afraid to change the Roadmap!
Be resilient, responsive and adapt to fast-changing environment!
Action Plan for Leaders
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• Appoint / confirm Project Manager to lead PMO ‘refresh’ or implementation project
• Engage Executive Leadership as key stakeholders
• Identify and engage key BAU stakeholders who will need to drive the change
• Commence organisation-wide engagement & communication to ensure clarity of purpose
Next Week
• Create / refresh PMO Vision / Mission Statement
• Develop PMO Blueprint using POTI Technique
• Develop EPMO Terms of Reference
• Develop EPMO Implementation Roadmap (outputs & timeline)
• Develop Benefits and Value Statement (Business Case)
Next 90 Days
• Implementation Roadmap endorsed by key stakeholders
• Continue organisation-wide communication to ensure clarity of purpose
• Commence implementation of Roadmap change initiatives
• Use Agile concepts and Lean PDCA Cycle
• Consult and engage – be resilient, responsive and agile
Next 12 Months
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