The Modern PMO Defined
The charter of a traditional PMO is to make sure delivery of value, and yet the actions and ceremonies of the traditional PMO are somewhat stayed, yielding more overhead than value. The Modern PMO must find and deliver value in business terms. Sponsors do not care so much about the day-to-day status of Red Amber Green as much as they care about the result. Delivery.
The highest value initiatives are those generally small in nature, that must be delivered quickly and show immediate ROI. Taking this approach can offer our greatest value in educating our Sponsors in the value of thinking SMALL – Features – and incremental delivery of these features to produce BIG value. Let’s take a look at our prioritization model within a portfolio. Consider that the Portfolio represents a sum of features identified by a total of both cost and benefit.
Let’s consider the math between the business cycle and Portfolio Optimization. The typical business cycle is 10 months of the year and it may take in upwards of 3 months for PMO Portfolio Managers to get through Portfolio Optimization. 10/3 = not going to work. Taking a Modern feature-driven approach at Portfolio Optimization a/k/a Portfolio SAFe, we can rank the delivery of feature increments that will deliver consistent Value within the business cycle! It’s a shift in the way we look at Project and Portfolio Management – and the starting point for the Modern PMO.
Our Modern PMO is best served with direct representation from our business Stakeholders who are most aligned with the value being desired by our Sponsors. We as the leaders of the Modern PMO can coach these participants in both theory-lite and practical actions to forge a tightly aligned Business Partnership. These participants must be focused on maintaining, enriching, and building business relationship all while delivering Value.
The purpose of the PMO is to make sure that high-value work begins and concludes timely. Taking the road to a PM-Lite approach of delivery:
- Eliminating all but necessary stage gates.
- Focus on 4 Stages
- Consider the Minimum Viable Data Points required for reporting.
- Develop the practice of refining Portfolio Investments to find smaller increments (Features) and focus on rapid delivery and immediate value.
- Establish Lean practices that will have your Sponsors take notice.
- Focus on 4 Stages
Delivery of Value and leaving our Sponsors enthusiastically satisfied.