Developing a POM requires several connected changes across the existing delivery environment. To make the transition while ensuring that performance is optimized quickly and with minimal disruption, the following 5 step roadmap should be pursued:
1. Understand the Product Operating Model and Value Streams
Before organizations can shift to a product-centric approach, they must understand how value flows through their business, or the value streams for internal and external value. All stakeholders must understand the POM and how is changes planning, approval, delivery and measurement.
2. Establish an Agile VMO to Align Strategy and Execution
Modern work methods require modern work structures. Traditional PMOs don’t align with optimized value delivery and must evolve into, or be replaced by, Agile VMOs. These optimize the flow of value, empower teams, and ensure that portfolio return on investment is maximized.
3. Shift from Output-Driven to Outcome-Oriented Governance
Success doesn’t come from the restrictive practices and processes. Governance remains essential, but it must be performance-driven and guided by the principles of maximizing value, while appropriately managing risk. It must provide guardrails and then be as lean as possible to minimize overhead.
4. Embrace Agile Funding and Adaptive Planning Models
In today’s world, funding can’t be annual if we want to avoid the colossal waste that sinks money into “too big to fail” and obsolete initiatives. Funding must adapt in response to changing realities and be allocated based on evolving needs. It must align with adaptive planning that shifts priorities, goals, and investments based on emerging trends to ensure value is always optimized.
5. Apply your Capabilities in Risk, Dependency, and Stakeholder Management
In the POM, risks and dependencies must still be managed, and stakeholders must be appropriately engaged. Combining the Agile VMO with clarity around value drivers helps ensure that all variables are understood and that everyone is engaged to deliver a common goal.