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Realizing the value of Agile in an
Offshore PMO Setup




Document type: Insights
Date:18th September, 2012
Disclaimer: All opinions expressed here are mine and does not reflect the Firm’s outlook in any
case

Gurpreet Singh
Contents

 ▪ PMO – A Few Insights

 ▪ What is a PMO?

 ▪ PMO & PMO Types

 ▪ PMO Types – Comparative View

 ▪ The Need of OffShore PMO

 ▪ Why OffShore PMO Model?

 ▪ What does the OffShore PMO do?

 ▪ Stumble blocks for OffShore PMO

 ▪ Agile & OffShore PMO



                                     Realizing the value of Offshore PMO |
PMO – A Few Insights

Most large-scale transformation programs do not succeed, mainly driven by inadequate
governance and poor planning


       Large Programs Success Rates                                                                  Why Projects / Programs Fail

                                                                                                     Others
                                          Successful                                                                                              Poor
                                                                           Technical Problems                                                  Organization
                                                                                                                  11%
                                 16%                                                                  4%                                       and Project
                                                                Problems with Suppliers                                                        Management
                                                                                                   4%
                                                                                                                                36%
                                                                                                                                                Practices
                                                               Insufficient Project
                                                                                                    10%
             53%                                              Personnel Resources

                                       31%
                                                                                                            15%

                                                                                                                          20%
                                                Cancelled
                                                                          Ineffective Project
Under Perform                                                                  Planning

                                                                                                                   Poorly Defined or
                                                                                                                    Missing Project
                                                                                                                      Objectives



   Source: Standish Group International, Survey from 2500 personnel attending project management training
                                                                                                                   Realizing the value of Offshore PMO |
What is a PMO?




    An organizational body …
    assigned various responsibilities related to the centralized and
    coordinated management of those projects under it’s domain.




      There in no such thing as a
      “universal solution”

      To be effective, a PMO must be tailored to your
      organisation‘s project types, management/staff
      capabilities, and organisation culture




                                                            Realizing the value of Offshore PMO |
PMO & PMO Types




Project Management Office- Project Management Offices are typically setup for large
projects where they help the project managers in collecting timesheets, collating status
reports and financial data, tracking deliverables, coordinating issues and risks etc.

Program Management Office - Program Management Offices are generally setup at
Program level where there are several projects running under a program. Program
Management Offices support program managers, project managers and project teams.

Portfolio Management Office - Portfolio Management Offices are generally setup at
Department/Business unit level to ensure the Department/Business unit projects are
aligned to overall enterprise business objectives.


                                                                     Realizing the value of Offshore PMO |
PMO Types – Comparative View


     *               PROJECTS                    PROGRAMS                        PORTFOLIOS


Scope      Projects have defined         Programs have a large       Portfolios have a
           objectives. Scope is          scope and provide more      business scope that
           progressively elaborated      significant benefits.       changes with the
           throughout the project life                               strategic goals of the
           cycle.                                                    organization.

Change     The PMO expects change        The PMO must expect         The PMO continually
           and implement processes       change from both inside     monitors changes in the
           to keep change managed        and outside the program     broad environment.
           and controlled.               and be prepared to
                                         manage it.

Planning   He progressively              He develops the overall     He creates and
           elaborates high-level         program plan and create     maintains necessary
           information into detailed     high-level plans to guide   processes and
           plans throughout the          detailed planning at the    communication relative
           project life cycle.           component level.            to the aggregate
                                                                     portfolio.




                                                                 Realizing the value of Offshore PMO |
The Need of OffShore PMO
1. Many PMOs operating at department level, program, and project level are started
with a bottom up approach to tackle issues at the program, and project level.
Therefore these types of PMOs often lack strategic alignment.

2. Traditional PMOs in large organizations or PMOs dispersed geographically in a
global organization often work in silos.

3. Traditional PMOs are many times not involved in overall Demand Management
at the organizational level. Therefore it’s often difficult to forecast the demand
pipeline for a multiyear horizon.

4. Traditional PMOs, because of their department level, program and project level
operations are many at times unable to present the big picture while reporting to
the enterprise leadership. Enterprise leadership wants to see consolidated
reports for the enterprise wide programs in a way that they do not get lost in
details and yet are able to take critical decisions based on the reports.
Under such conditions, the organization will require a centralized group/function to standardize
PMO operations across the organization.

5. Projects running with traditional PMOs may not have visibility at the top executive
level and therefore lack leadership buy-in. A business function in the form of
Offshore PMO can not only provide this information to the leadership in real time but also
provides leadership buy-in for enterprise wide projects.

                                                                     Realizing the value of Offshore PMO |
Why OffShore PMO Model?


The organizations especially that have global presence or having multiple
business units are moving towards such structure that will allow them to overcome the
challenges listed in the last slide.

Therefore these organizations are creating a business function that is referred to as
OffShore PM.




                                                                      Realizing the value of Offshore PMO |
What does the OffShore PMO do?

- OffShore PM is a centralized business function which operates at strategic level with the
enterprise executives and provides enterprise wide support on governance, project portfolio
management best practices, mentoring, tools and standardized processes.

- He ensures strategic alignment between business objectives and projects executed. He does
not eliminate the need for Project, Program or Department level PMOs. Organizations having
an OffShore and traditional PMOs get the right things done the right way.

- Act as a unifying point for the offshore team for the single program, as otherwise these will
become fragmented entities with no synergy.

- Act as a central contact point for contract related issues, non-disclosure agreements for
employees, employee travel, data protection agreements, employee re-assignments across
projects, performance appraisals etc.,




      Also, the Offshore PMO carries a helicopter view of the activities of PMO, e.g.:



                                                                       Realizing the value of Offshore PMO |
What does the OffShore PMO do?


a) Resource Allocation




The helicopter view!

                                 Realizing the value of Offshore PMO |
What does the OffShore PMO do?

b) Creating Templates & documentation




The helicopter view!

                                        Realizing the value of Offshore PMO |
What does the OffShore PMO do?

c) Choice of Project Managers




The helicopter view!

                                 Realizing the value of Offshore PMO |
What does the OffShore PMO do?

d) Prioritization & streamlining processes

                  No PMO situation:
                  This leads to seizures, delays,
                  insufficient resources,
                  collisions, …
                  --------------------------------------------------------


          PMO lays down the roadmap, sets up the Preffered way,
          leads to better Turn around time, could prevent teams
          from overloading and reassures a smooth execution of
          the projects




The helicopter view!

                                                                             Realizing the value of Offshore PMO |
Stumble blocks for OffShore PMO

a) Cultural Differences




b) Time zone differences



c) Language Barriers




d) Standardization across the departments
within the organization




                                            Realizing the value of Offshore PMO |
Agile & OffShore PMO

So what should we do to minimize these stumble blocks?




Agile – the new methodology which has revolutionized the IT Industry is
very effective in solving “offshore” problems

>> Lets have a look at Agile manifesto:




                                                              Realizing the value of Offshore PMO |
Agile & OffShore PMO
Scrum – The vanilla flavor of Agile
The Scrum Team is comprised of three Scrum Roles




                                                   Realizing the value of Offshore PMO |
Agile & OffShore PMO
Scrum – The vanilla flavor of Agile
How Scrum works?




                                      Realizing the value of Offshore PMO |
Agile & OffShore PMO

So where does the OffShore PMO fit into Scrum?




                                                 Realizing the value of Offshore PMO |
Agile & OffShore PMO




                       Realizing the value of Offshore PMO |
Agile & OffShore PMO

• Features laid out on index
cards as per overall release
Plan

• Card colors identify agile
Teams

• Labels identify dependent
Teams

• Rows track feature streams

• Columns track sprints/
timeline




Project Alignment Wall ->> Agile Kanban – Visual interpretation of Lean

                                                                      Realizing the value of Offshore PMO |
Agile & OffShore PMO




Agile Kanban – Visual interpretation of Lean

                                               Realizing the value of Offshore PMO |
Web Based Tools / Techniques




a) Mingle / Scrummy/ Atlassian / Online Kanban walls

b) JIRA / SVN / Github for Subversion of files

c) Webex / Video conference calls

d) Onsite visits



 These tools /technique solves the problems caused due to geographic /timezone issues




                                                                            Realizing the value of Offshore PMO |
Bibliography

               http://www.mountaingoatsoftware.com

                       http://www.cutter.com

                     http://www.slideshare.net

                   http://www.scrumshortcuts.com

                      http://www.wikipedia.org

                      http://jeffsutherland.com

                  http://www.readperiodicals.com

                   http://www.projectsmart.co.uk/

               http://www.leadinganswers.typepad.com



                                                    Realizing the value of Offshore PMO |
Thank you




            Realizing the value of Offshore PMO |

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Realizing the value of Agile in an Offshore PMO Setup

  • 1. Realizing the value of Agile in an Offshore PMO Setup Document type: Insights Date:18th September, 2012 Disclaimer: All opinions expressed here are mine and does not reflect the Firm’s outlook in any case Gurpreet Singh
  • 2. Contents ▪ PMO – A Few Insights ▪ What is a PMO? ▪ PMO & PMO Types ▪ PMO Types – Comparative View ▪ The Need of OffShore PMO ▪ Why OffShore PMO Model? ▪ What does the OffShore PMO do? ▪ Stumble blocks for OffShore PMO ▪ Agile & OffShore PMO Realizing the value of Offshore PMO |
  • 3. PMO – A Few Insights Most large-scale transformation programs do not succeed, mainly driven by inadequate governance and poor planning Large Programs Success Rates Why Projects / Programs Fail Others Successful Poor Technical Problems Organization 11% 16% 4% and Project Problems with Suppliers Management 4% 36% Practices Insufficient Project 10% 53% Personnel Resources 31% 15% 20% Cancelled Ineffective Project Under Perform Planning Poorly Defined or Missing Project Objectives Source: Standish Group International, Survey from 2500 personnel attending project management training Realizing the value of Offshore PMO |
  • 4. What is a PMO? An organizational body … assigned various responsibilities related to the centralized and coordinated management of those projects under it’s domain. There in no such thing as a “universal solution” To be effective, a PMO must be tailored to your organisation‘s project types, management/staff capabilities, and organisation culture Realizing the value of Offshore PMO |
  • 5. PMO & PMO Types Project Management Office- Project Management Offices are typically setup for large projects where they help the project managers in collecting timesheets, collating status reports and financial data, tracking deliverables, coordinating issues and risks etc. Program Management Office - Program Management Offices are generally setup at Program level where there are several projects running under a program. Program Management Offices support program managers, project managers and project teams. Portfolio Management Office - Portfolio Management Offices are generally setup at Department/Business unit level to ensure the Department/Business unit projects are aligned to overall enterprise business objectives. Realizing the value of Offshore PMO |
  • 6. PMO Types – Comparative View * PROJECTS PROGRAMS PORTFOLIOS Scope Projects have defined Programs have a large Portfolios have a objectives. Scope is scope and provide more business scope that progressively elaborated significant benefits. changes with the throughout the project life strategic goals of the cycle. organization. Change The PMO expects change The PMO must expect The PMO continually and implement processes change from both inside monitors changes in the to keep change managed and outside the program broad environment. and controlled. and be prepared to manage it. Planning He progressively He develops the overall He creates and elaborates high-level program plan and create maintains necessary information into detailed high-level plans to guide processes and plans throughout the detailed planning at the communication relative project life cycle. component level. to the aggregate portfolio. Realizing the value of Offshore PMO |
  • 7. The Need of OffShore PMO 1. Many PMOs operating at department level, program, and project level are started with a bottom up approach to tackle issues at the program, and project level. Therefore these types of PMOs often lack strategic alignment. 2. Traditional PMOs in large organizations or PMOs dispersed geographically in a global organization often work in silos. 3. Traditional PMOs are many times not involved in overall Demand Management at the organizational level. Therefore it’s often difficult to forecast the demand pipeline for a multiyear horizon. 4. Traditional PMOs, because of their department level, program and project level operations are many at times unable to present the big picture while reporting to the enterprise leadership. Enterprise leadership wants to see consolidated reports for the enterprise wide programs in a way that they do not get lost in details and yet are able to take critical decisions based on the reports. Under such conditions, the organization will require a centralized group/function to standardize PMO operations across the organization. 5. Projects running with traditional PMOs may not have visibility at the top executive level and therefore lack leadership buy-in. A business function in the form of Offshore PMO can not only provide this information to the leadership in real time but also provides leadership buy-in for enterprise wide projects. Realizing the value of Offshore PMO |
  • 8. Why OffShore PMO Model? The organizations especially that have global presence or having multiple business units are moving towards such structure that will allow them to overcome the challenges listed in the last slide. Therefore these organizations are creating a business function that is referred to as OffShore PM. Realizing the value of Offshore PMO |
  • 9. What does the OffShore PMO do? - OffShore PM is a centralized business function which operates at strategic level with the enterprise executives and provides enterprise wide support on governance, project portfolio management best practices, mentoring, tools and standardized processes. - He ensures strategic alignment between business objectives and projects executed. He does not eliminate the need for Project, Program or Department level PMOs. Organizations having an OffShore and traditional PMOs get the right things done the right way. - Act as a unifying point for the offshore team for the single program, as otherwise these will become fragmented entities with no synergy. - Act as a central contact point for contract related issues, non-disclosure agreements for employees, employee travel, data protection agreements, employee re-assignments across projects, performance appraisals etc., Also, the Offshore PMO carries a helicopter view of the activities of PMO, e.g.: Realizing the value of Offshore PMO |
  • 10. What does the OffShore PMO do? a) Resource Allocation The helicopter view! Realizing the value of Offshore PMO |
  • 11. What does the OffShore PMO do? b) Creating Templates & documentation The helicopter view! Realizing the value of Offshore PMO |
  • 12. What does the OffShore PMO do? c) Choice of Project Managers The helicopter view! Realizing the value of Offshore PMO |
  • 13. What does the OffShore PMO do? d) Prioritization & streamlining processes No PMO situation: This leads to seizures, delays, insufficient resources, collisions, … -------------------------------------------------------- PMO lays down the roadmap, sets up the Preffered way, leads to better Turn around time, could prevent teams from overloading and reassures a smooth execution of the projects The helicopter view! Realizing the value of Offshore PMO |
  • 14. Stumble blocks for OffShore PMO a) Cultural Differences b) Time zone differences c) Language Barriers d) Standardization across the departments within the organization Realizing the value of Offshore PMO |
  • 15. Agile & OffShore PMO So what should we do to minimize these stumble blocks? Agile – the new methodology which has revolutionized the IT Industry is very effective in solving “offshore” problems >> Lets have a look at Agile manifesto: Realizing the value of Offshore PMO |
  • 16. Agile & OffShore PMO Scrum – The vanilla flavor of Agile The Scrum Team is comprised of three Scrum Roles Realizing the value of Offshore PMO |
  • 17. Agile & OffShore PMO Scrum – The vanilla flavor of Agile How Scrum works? Realizing the value of Offshore PMO |
  • 18. Agile & OffShore PMO So where does the OffShore PMO fit into Scrum? Realizing the value of Offshore PMO |
  • 19. Agile & OffShore PMO Realizing the value of Offshore PMO |
  • 20. Agile & OffShore PMO • Features laid out on index cards as per overall release Plan • Card colors identify agile Teams • Labels identify dependent Teams • Rows track feature streams • Columns track sprints/ timeline Project Alignment Wall ->> Agile Kanban – Visual interpretation of Lean Realizing the value of Offshore PMO |
  • 21. Agile & OffShore PMO Agile Kanban – Visual interpretation of Lean Realizing the value of Offshore PMO |
  • 22. Web Based Tools / Techniques a) Mingle / Scrummy/ Atlassian / Online Kanban walls b) JIRA / SVN / Github for Subversion of files c) Webex / Video conference calls d) Onsite visits These tools /technique solves the problems caused due to geographic /timezone issues Realizing the value of Offshore PMO |
  • 23. Bibliography http://www.mountaingoatsoftware.com http://www.cutter.com http://www.slideshare.net http://www.scrumshortcuts.com http://www.wikipedia.org http://jeffsutherland.com http://www.readperiodicals.com http://www.projectsmart.co.uk/ http://www.leadinganswers.typepad.com Realizing the value of Offshore PMO |
  • 24. Thank you Realizing the value of Offshore PMO |