Agile, Waterfall and Hybrid: Managing the Multiple-Methodology Portfolio
Today, PMOs working with waterfall (predictive), agile and hybrid project methodologies have a difficult time identifying a single version of the truth, which causes serious obstacles to productivity. Siloed project information scattered across numerous systems and geographies blocks decision-makers from insights into cost and schedule problems and cripples performance-measurement processes.
Recent research from the Project Management Institute is clear: Almost fifty percent of projects managed in PMOs are agile or hybrid based. In our travels among industry peers and colleagues, we’re always hearing that – as a result of this mix – “visibility” remains the number one challenge and predictor of project success. Just what does this visibility look like?
Agile projects are structured for iterative planning, forecasting and reporting, and can look very different and come at a much quicker cadence than traditional project management (PM). Decisions are often made faster, and by comparison, change management may look like chaos from the outside but may be exactly the innovation that the project, and by extension, the company’s business strategy needs.
Project leaders comfortable working in agile PM systems like JIRA for product development programs and portfolios must be able to plug into the status and progress of other projects and shared resources —some in their infancy, and some almost complete. API and integration capabilities remain paramount in ensuring PMOs are pulling in their predictive and agile projects under one umbrella — especially when it comes to resource capacity planning. The financial, ERP and IT service management systems need to be pulled in, as well, to effectively manage resources or costs across disparate projects. Transparency remains crucial to controlling crises and managing constrained budgets.
Streamlining resource utilization can vastly improve company profit for companies with talent and materials scattered worldwide. Project methodologies like agile have quite different approaches to resource planning and utilization than the way one assigns tasks and time to predictive portfolios. When resource deployment data remains trapped in multiple systems, you can’t be as flexible when assigning what are essentially “super-experts” to common agile tasks. Between each multiple-week phase (sprint) of common agile projects, you may have 100% resource replacement needs, based on the scrum-master’s need for a completely different expertise mid-flight.
The days of double booking your predictive projects and assigning usage percentages that pad the calendar are gone. There was once a certain amount of over-run that could be absorbed. Now, the intensity of work during IT projects, product development and certain kinds of services contracts require leaner budgets and focused skills in any given sprint. If your PMO technology can’t allow you the freedom to forecast, scenario model and test-retest deployment across hybrid programs, today’s profit margins have no room for the errors that result.
Delayed financial reporting based on inaccurate and time-consuming manual processes can result in cost overruns, time lost to non-strategic projects and lost profits. These issues are especially apparent in product development and professional services portfolios – the ones that most often have a high mix of agile methodologies. Within agile, PPM solutions must provide data in real-time, or PMOs are at risk of losing status visibility. By the time you assign a cost variance to an activity, process, or product, your team has already moved on to the next phase of the project. If you’ve eaten up budget in phase one, you may not know about it until the mid-point of phase three, when your PMs are forced to level slipped schedules and manually pull up project cost data info into quarterly reports.
The good news: PMO leaders can integrate and streamline portfolio-level data from a variety of execution tools to plan, forecast and ensure that real-time visibility and executive reporting insights come to the executives in time to be actionable. This can avert budget flameouts, as well as category five resource crises.
The original post was published on project-management.com here.
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