PMO stands for “Programme Management Office”. A Programme Management Office is an organisational unit that typically manages the governance and execution for a programme, or a portfolio of programmes.
Managing Stakeholders in Agile Projects can be tough in large or old organisations. Have you heard this: “YES. We are agile. But you must tell me what I will get and when!” It’s painful.
The natural tension between Agile and Senior Stakeholder Structures
Upper management in large organisations and Programme Management structures (e.g. PMO) have a natural conflict of interests (or ‘tension’) with agile principles – i.e.
Management and PMO want details on what is going to be delivered and when – i.e. Definition Up Front! – and
The Agile product delivery team want to adapt and change dates and features as & when the customer/audience change – i.e. Definition When it’s NEEDED!
Addressing the tension – how to run Agile in large Stakeholder structures
So – how should we approach the comms around an Agile Project / Programme, and stakeholder management?
Clear “Release” / “Goal” Planning
Describe your Releases (i.e. the significant product drops / deliveries) clearly
Provide a clear 1-sider about each release, outlining what the business goals are
Manage expectations with “The Cone of Uncertainty”
For each aspect of the release, clearly define the expected variance of estimates, according to degree of certainty
So, if you have allowed e.g. 2 sprints / iterations for a feature, but do not plan to unpack the user stories until later on, assign an appropriate +/- 40% caveat to the estimation
There are many ways to measure and communicate risk – this is just one that we have found useful, and easy to communicate.
The 25 cell “Impact vs Likelihood” Risk Matrix is a popular format used to communicate Risk Scores. It helps you summarise your risks for project reporting.
The Risk Score Heatmap Matrix
This 5 x 5 (25 cell) matrix gives an easy way to associate a “Severity Score” with a Risk. NB you will see a lot of variations on this – so this is just one approach of many that Project Managers can take.
Each cell in the matrix is a combination of impact and likelihood.
This allows you to group your risks, based on a score, into some Risk Severity groups:
An approach to assigning Impact and Likelihood scores
Project Managers use a list of score definitions, to help one another assign and understand the scores for each risk.
Here is an example approach:
ASSIGNING RISK LIKLEHOOD VALUES
Score
Title
Likelihood
% Chance
1
Rare
Rare. A very unlikely event. It could happen, but probably never will.
Below 5%
2
Unlikely
Not expected. Slight possibility.
An improbable sequence of events.
5% – 25%
3
Possible
Moderate likelihood. Foreseeable. May have occurred in projects like this before.
25% – 50%
4
Likely
Strong possibility. High likelihood.
An easily foreseeable event.
50% – 75%
5
Almost Certain
Very likely.
Almost certain without any intervention.
Above 75%
ASSIGNING RISK IMPACT VALUES
Score
Title
Outcome / Impact / Consequence
Cost / Time / Scope
Implications
1
Insignificant
The project will have to make some minor changes to scope. Resolvable by management team.
Can be managed. Acceptible.
2
Minor
Some changes to deliverables.
Outside of Project Tollerances or Contingency.
Adjustment to scope with some impact.
3
Moderate
One or more areas likely not to deliver as planned. Descoping required.
Significant impact.
4
High
Significant descoping required.
Major Impact.
5
Extreme
Serious failure of project objectives.
Disastrous Impact.
Example Guidance for Project Managers according to Risk Severity
GENERAL GUIDANCE ON RISK MANAGEMENT
Extreme
Escalate immediately to project authorities.
Include recommendations.
Actively control.
High
Manage immediately.
Inform project authorities.
Act on mitigation and ensure you have response plans ready.
Moderate
Manage risk and escalate in normal reporting.
Watch carefully for change in exposure.
Low
Manage risk.
Problems with Scoring Risks with a Matrix
There are many ways to allocate weighting to risks, and to group severity, with no right or wrong answer. The allocation of severity groupings helps you give summaries to your colleagues, but the groupings you choose will need to vary depending on the project type, size and environment.
Project Managers manage their Risks in a “RAID Log”.
RAID Logs are used by project managers and programme managers to track and manage project risks.
Many projects have 10s and sometimes 100s of Risks to manage, and so it is essential to keep track of severity, status, next steps, and who owns each risk.