I recently saw a question on a LinkedIn discussion group asking: What is an Agile PMO? There are many people in the Agile community who might say that there is no role for a PMO in an Agile/Lean environment and that the whole concept of a PMO is inconsistent with Agile. That opinion is based on a stereotype that the role of the PMO is heavily associated with controlling and enforcing rigid waterfall-style policies for selecting and managing the execution of projects and programs. In that kind of environment, a PMO might require:
- Very thorough and detailed upfront planning to justify the ROI on projects to support rigorous project/product portfolio management decisions
- Rigid control of project execution to ensure that projects meet their cost and schedule goals and deliver the expected ROI
There is no doubt that some PMO’s have played that kind of role to some extent in the past; however, it is a stereotype to believe that is the only possible role for a PMO to play.
Understanding the Truth About “Agile versus Waterfall”
The key to understanding this issue is to first understand that there isn’t a binary and mutually exclusive choice between an “Agile approach and what people sometimes refer to as “Waterfall”. For more on that, check out my recent post on “Learning the Truth About Agile versus Waterfall”. It is better to think of this as a range of alternatives between heavily plan-driven at one extreme and heavily adaptive at the other extreme that looks something like this:
And, the right approach is to fit the methodology to your projects and business environment rather than going in the other direction and attempting to force-fit your projects and business to some kind of canned approach whatever it might be (Agile or not).
What’s the General Role of a PMO in Any Organization?
I believe the general role of any PMO is to align the selection and execution of projects and programs with the organization’s business goals which includes Project/Product Portfolio Management, providing oversight of project execution and the overall interface for management and reporting of projects and programs to senior management and the business, and finally to provide coordination, guidance, and training to project teams as needed in the organization’s methodologies and standards for project management.
Those general functions probably don’t change in an Agile/Lean project environment, but how a PMO performs those functions may change significantly depending on the organization’s overall strategy for implementing an Agile transformation.
- Some organizations may choose to implement a relatively complete top-to-bottom Agile transformation for their business – Dean Leffingwell’s Scaled Agile Framework (SAFe) is an example of such a model. However, that can be a very ambitious and gut-wrenching change for many organizations and it may also may not be the best solution
- I think it is a mistake to believe that you have to force a company to do an extensive, top-to-bottom Agile transformation in order to adopt an Agile process at the development level and there are many ways to adapt an agile development process to a company who’s overall business may not be totally compatible with an agile approach at the enterprise level.
If you accept the notion that you need to tailor the approach to fit your business, it should be evident that the design of a PMO should be consistent with that approach and there isn’t a single “canned” solution for what an “Agile PMO” is. However, I think that there are some general guidelines that should be useful.
What Does a Traditional PMO Look Like?
A traditional PMO organization that is oriented around a heavily plan-driven approach might look something like this:
The emphasis in this kind of organization is typically on planning and control of projects and this kind of organization would be consistent with a heavily plan-driven approach. But how does that role change as an organization moves towards more of an adaptive approach?
What Does a More Adaptive PMO Model Look Like
I think a more adaptive version of a PMO organization might look something like this:
The source of the above material is from my book “Making Sense of Agile Project Management” published in 2011 by Wiley.
Here’s what I think some of the key differences are as an organization moves towards more of an adaptive approach:
- The role of the PMO becomes more of an advisory role and a consultative role rather than a controlling role. The function of the PMO should be to put in place well-trained people coupled with the right process and tools to make the process most effective and efficient and to keep it well-aligned with the company’s business
- The primary responsibility for providing direction to projects shifts more to the business side represented by the Product Owner in the projects and there is a much more of a closer coupling with the business side to put more emphasis on providing business value rather than simply managing project costs and schedules
- The role of the functional organizations also changes to providing more of an advisory function as the resources are more committed to project teams and the project teams become more self-organizing
This model can be a very big change for many businesses because it puts a lot more responsibility on the business side of the organization to provide direction to projects and the business organization may not be well-prepared to take on that responsibility. It also relies much more heavily on self-organizing teams.
For those reasons and others, a totally adaptive approach may not be the right approach for all businesses and even if it is, it may take time to migrate an existing organization to that kind of approach. Fortunately, there are many ways to develop a hybrid approach to blend a traditional plan-driven approach with a more adaptive approach to fit a given business and project environment.
The role of the PMO should be aligned with supporting whatever that overall strategy is. For example,
- The PMO may still be the focal point for Project/Product Portfolio Management, but a more agile approach might be used to perform that function. Instead of very rigorous upfront planning that might be required to analyze project ROI to support a more traditional, plan-driven project/product portfolio management approach, a more dynamic decision-making process might be used at that level with a much more limited amount of upfront planning and less detailed ROI analysis.
- In the other functions related to managing the execution of projects, the PMO probably would probably delegate more responsibility to project teams and play more of a facilitative and consultative role to support the project teams rather than playing a controlling role.
- Agile certainly forces some rethinking of the role of a PMO but it doesn’t necessarily make the whole concept of a PMO obsolete and irrelevant, and
- There are a wide range of strategies an organization can choose for implementing an Agile transformation at an enterprise level and it isn’t necessarily a binary choice between a pure “Waterfall approach from top-to-bottom or a totally “Agile” approach from top-to-bottom. You have to choose the right approach to fit the business rather than attempting to force-fit the business to some kind of “textbook” approach.
The important thing to recognize is that this is not a “one size fits all” decision. What is the right approach for one company may not be the best approach for another.
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