What is a VMO?

Introduction

What is a VMO?

The Importance of Value Management Office (VMO) and How to Implement It.

Today's organizations face challenges with traditional PMOs due to their focus on isolated projects, rigidity and lack of flexibility, control-based governance, functional silos, and limited success metrics.

These issues result in low visibility and transparency, difficulty managing rapid change, and most importantly, a lack of customer engagement. Transitioning to a Value Management Office (VMO) can help overcome these challenges by fostering a more agile and value-driven approach.

Characteristics and skills

The VMO typically consists of a small team of Lean-Agile professionals who are passionate about helping to optimize the strategic value stream across a set of value streams within a SAFe portfolio.

These individuals typically come from existing PMO roles and business operations backgrounds, as well as change agents. Together, they use their varied experiences to create a cross-functional team committed to improving business outcomes. They use skills in facilitation, conflict management, fact-based influencing, and change leadership to drive growth within the portfolio and support the adoption of Lean Portfolio Management (LPM) practices.

They have the technical and business context expertise to provide guidance and support related to the portfolio solutions. They also generate the communication and enthusiasm needed to get others in the organization to accelerate the achievement of this strategy. (© Scaled Agile, Inc.)

VMO Objectives

• Facilitate strategic portfolio review and portfolio synchronization events.

• Optimize the strategic value stream: Ensure that projects and initiatives deliver continuous value aligned with the business strategy.

• Facilitate Lean-Agile transformation: Promote the adoption of Lean-Agile practices throughout the organization.

• Improve governance and transparency: Establish lean governance practices that enable data-driven decisions and greater visibility into operations.

VMO supports Lean Portfolio Management through key collaborations

© Scaled Agile, Inc.

Comparison Chart: Traditional PMO vs. VMO

The VMO evolves the PMO by adopting a Lean-Agile approach, focusing on continuous value delivery and strategic alignment, with an adaptive and collaborative structure .

How to Deploy a VMO?

1. Initial Assessment : Conduct an assessment of the organization’s current state in relation to Lean-Agile practices.

2. Defining Objectives : Establish clear and measurable objectives for implementing the VMO.

3. Team Training and Development : Select and train the VMO team.

4. Process Development : Establish processes and practices for the operation of the VMO.

5. Implementation of LPM Practices : Apply Lean Portfolio Management practices to projects and initiatives.

6. Monitoring and Continuous Improvement : Monitor portfolio performance, adjust as needed, and promote a culture of continuous improvement.

Tangible and Intangible Benefits of Implementing a VMO with KPIs

Conclusion

Implementing a VMO is a crucial step towards the Lean-Agile transformation of an organization in an environment of intense transformations. By following this scope, the organization will be able to optimize the value stream, improve governance and promote a culture of continuous improvement, aligned with the principles and values of SAFe 6.0.