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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