optimizing strategic portfolio planning

Optimizing Strategic Portfolio

PlanningThe Agile PMO: What Good Looks Like

Margo Visitacion, Vice President/Principal Analyst

November 9, 2016

Agenda

›Digital business drives Agile adoption and impacts how we

plan

› The Agile PMO: What good looks like

›Recommendations

4© 2016 Forrester Research, Inc. Reproduction Prohibited

“It is not the strongest of the

species that survives, not the

most intelligent, but the one

most responsive to change.”

- Charles Darwin

http://go.planview.com/strategic-portfolio-planning-it-wc.html

© 2016 Forrester Research, Inc. Reproduction Prohibited 5

5© 2016 Forrester Research, Inc. Reproduction Prohibited

Digital Empowers Customers And Creates Chaos

For Business

View the On-Demand Webcast: Planview.info/StrategicPortfolioPlanning


Digital Business Has Industries Expecting Massive Disruption

Industry Next 12

months

Already

happening

Healthcare 24% 19%

Retail 28% 19%

Insurance 28% 10%

Business & Professional Services 28% 12%

Telecommunications 26% 20%

Pharmaceutical/Medical Systems 15% 23%

Technology Products 27% 18%

Travel & Transportation 26% 13%

Financial Services & Banking 13% 11%Source: Q# 2015 Forrester/Odgers Bernsten Online Digital Business Survey




*Forrester forecast

Digital Requires Increased Investment In New Technology

$885 $915 $954 $998 $1,032 $1,083

$343 $350 $368 $393 $420 $452

2012 2013 2014 2015 2016* 2017*

Total new projectspending

Total MOOSEspending

Total new project spending9.8% 2.0% 5.3% 6.9% 6.6% 7.7%

Total MOOSE spending 6.7% 3.4% 4.3% 4.6% 3.5% 5.0%

Total tech spending 7.6% 3.0% 4.5% 5.2% 4.4% 5.7%




Yet, CIO Spending Is Not In Alignment




New Tech Budget Categories Needed To Drive Better Portfolio Planning

1. Business-led tech initiatives outpace new project budgets.

2. Business innovation requires technology experimentation.

3. Business applications need updates and enhancements to

meet new demands.

4. Modern application development require more open-ended

funding.

Four forces are pushing the limits of current

tech budget categories:



Agenda

›Digital business drives Agile adoption and impacts how we

plan

› The Agile PMO: What good looks like

›Recommendations




Traditional Portfolio Management: Too Linear For Today’s Business World

Funnel AssessTrade off

AnalysisBacklog Monitor

Demand Management

“Feed the funnel”

Portfolio Management

“Selecting for value”

Resource Management

“Capacity to deliver value”

“What” You Do; Pick the right initiatives (Strategic)

Portfolio Review

“Maintaining velocity for the best value”

Execute

“Executional Excellence”

“How” You Do It: Deliver the right work –

right (Tactical)

Retro-

spective




Portfolio Management Needs An Agile Infusion

Customer focused

Product/value focused

Emphasis on throughput

Direct relationship to strategy

Operationally focused

Project focused

Emphasis on utilization

Tangential relationship to strategy

Agile

Tra

ditio

nal




Applying Agility In Portfolio Management

Product

Teams

Product

Teams

Product

Teams

Product

Teams

PMO + Product +

Dependent LOB

Product Teams

+ Stakeholders

Source: ADP/Forrester Research




How? Stop Thinking Inside Out

PMO

Command/Enforce

Reporting

TrainingTools

ProjectTemplates

What

methodology

should I push out?

How can I make

them listen to me?

How do I make

them use the tools

I selected?

Can I get support

for certification

training?




How? Start Thinking Outside In

PMO

Capacity Planning

Value Stream

Prioritization

Agile Leadership/Coaching

Analysis Portfolio

Ecosystem

Portfolio Facilitation

How do we select for

value?

What are our

Strategic themes?

What are the right

programs?

How do we help our

teams?

What do our customers

need?

Did we achieve our

objectives?




Three Characteristics Of Agile Planning Processes

Agile PMO as a facilitator

Agile PMO as a

facilitator

Agile PMO as an

analyst




How The PMO Can Help

Chief strategist

Scrum

Master

COEs

Scrum

Teams

Virtual planning teams

Product OwnersArchitecture

Business

OwnersRelease Train Engineers

Value Stream Engineers

Finance Agile PMO

Develops framework and

cadence

Provides guidance

Facilitates process

Brings expertise Supports decision makers

Executes release trains

Delivery teams

Activity

decision maker

Accountable for

decision/execution outcome




Continuous Planning And Delivery At Large

Release Planning By Quarter

The Living Roadmap: Continuous Planning On A Cadence

Q1 Q2 Q3 Q4

Yearly Plans For Initiatives (Budget)

DevOps DevOps DevOps DevOps

Roadmap ReviewRoadmap Review Roadmap ReviewFY Planning FY Planning

Portfolio Update

Portfolio Update Portfolio UpdatePortfolio Update

Source: ADP/Forrester




Recommendations

1. Clarify the vision for the PMO with execs and come to agreement about

objectives, goals and outcomes

2. Put yourselves in your customer’s shoes

3. Use value streams to identify priorities and reduce waste

4. Measure your PMO on engagement and enablement



Thank you

forrester.com

Margo Visitacion

[email protected]

Carina Hatfield

[email protected]

