it methodology webinar agile practices...
TRANSCRIPT
IT Methodology Webinar
Initiate Project Intelligence®
Agile Practices Webinar
Agile Portfolio
Things to Know…
All participants will be on mute
Questions are welcome
Use the question box to ask questions
Training session is valid for 1 PDU
Must be in attendance for full session
PDU certificate sent by the end of today
Recording and slides will be sent by tomorrow
Schedule a customized demo today!
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Request info: www.projectinsight.net
Project Insight
©2016 KnolShare
Presenter
Dave Cornelius, DM, MBA, PMP, PMI-ACP, CSP, SPC
IT and Business Professional
Founder of 5 Saturdays Education Outreach Program
Author and Speaker
Agile Coach and Trainer
Learn More: www.dave-cornelius.com
LinkedIn: www.linkedin.com/in/daveauck/
Twitter: @DrCorneliusInfo “Believe we can make a difference.”
©2016 KnolShare
Topics
• Iterative Strategy
• Lean Thinking and Agility
• Strategic Discovery
• Prioritizing Strategic Value
• Weighted Shortest Job (Value) First (WSJF)
• Agile Portfolio - Right Value Done Right
• Measuring the Promise
• Culture Matters
©2016 KnolShare
At the conclusion of the presentation you will be able to:– Apply lean thinking and agility tenets
– Prioritize strategic and agile portfolio backlogs
– Use weight shortest job first (WSJF) as a economic indicator
– Make strategic decisions within a 2 to 4 week sprint
– Pursue a collaborative culture
Learning Objectives
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What Business Leaders Want?
1) Retain and increase margins
2) Protect and expand brand
loyalty
3) Attract and retain resilient
leaders
4) Practice agility 5) Manage risks
©2016 KnolShare
Aligning the Organization Strategies
• Forbes 2012 – Less than 10% successfully deliver strategy
• Strategies when specific, help to focus the organization
• Communicate the strategy to help alignment
• Innovate in response to market needs
©2016 KnolShare
One of the measures of an organization’s success is its agility—whether it manages to stay at least one step ahead of its market. – Thierry Nautin (McKinsey & Company)
©2016 KnolShare
Setting the Stage• Accept strategies as hypothesis to be exercised
• Make strategic decisions faster based on economic factors
– 2 to 4 week sprints
• Create MVPs - obtain frequent customer feedback
• Measure the strategic promise
• Relentlessly pursue objectives and be resilientr
Strategy Discovery
Orchestrate MVP
Product Execution
Customer Feedback
Measure the Promise
©2016 KnolShare
Iterative Strategy
• Focused by Lean Thinking and Agility
• Specific, Measurable, Achievable, Realistic, Timely, Tangible (SMARTT)
• Decide to pivot or stay the course with frequent evaluations
• Limit strategic work in progress (WIP) -2 or 3 annually
©2016 KnolShare
Lean Thinking & Agile TenetsLean Thinking Agile Synergies
Value Respect Value is the money ball, respect for customers, organization, and self helps to deliver the money ball.
Value Stream Transparency Value streams are visible to everyone interested in the steps to deliver value
Flow Inspect Frequent inspection -- right things built at the right time
Eliminate Waste Adapt Waste exists – adapt and remove unneeded steps for optimal results
Pull Commitment Commit to only requested customer jobs and market opportunities
ContinualImprovements
Empiricism Relentless measurement of progress, learnings, and value creation
Courage Courage to change, collaborate, and win
©2016 KnolShare
• Market Dynamics• Financial Environmental Factors• Industry Regulations• Sustaining and New Innovations• Emergent Architecture Patterns• Recurring Operations
Strategy Stimulus
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• Collaborative discovery with cross-functional teams
• A lean way to improve bi-directional feedback & ownership
• Understanding of the why, what, and potentially how
Source: Hoshin Kanri
Hoshin Catchball
©2016 KnolShare
Strategic Discovery• Strategies discovered through stimuluses
Scan Exercise Evaluate
DiscoverDecide
Strategic Stimuluses:
• Market dynamics
• Regulations
• Sustaining innovations
• Disruptive innovations
• Recurring Ops.
• Emergent Architecture
Strategic
ThemesFund
Stop
Clarify
Opportunities /
Threats
Market research
Customer workshopsMeasure Findings
Pivot /
Stay
Feasibility
Executives, Managers,
Team leaders, Team
members engaged
©2016 KnolShare
• Strategic Themes are differentiator drivers
• Example: “Predictive analytics drive customer behavior”
• Connects a portfolio to evolving enterprise business strategy
• Input into budgets and portfolios
Source: Scaled Agile Framework (SAFe)
Strategic Themes
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Identify the three decisions at the end of
the Decide Step?
A) Clarity, Go, Fund
B) Clarify, Stop, Fund
C) Clearly, You, Must
D) Clarify, Stay, Fund
E) None of the above
Group Engagement #1
©2016 KnolShare
• The affect of time on outcomes (Urgency to Value)• Cost of Delay (COD) or Opportunity Cost of Value (OCV)• Business Value (BV) - sustaining business outcomes • Time Criticality (TC) - Time sensitive or urgency• Risk Reduction (RR) - Opportunity Enablement (OE) -
Reduced impediments or new opportunities• COD = BV + TC + RR-OE
Source: Scaled Agile Framework (SAFe)
Prioritizing Strategic Value
©2016 KnolShare
• Weighted Shortest Job First (WSJF) is Urgency to Value opportunity
• Strategy Duration is represented by Job Size
• WSJF = BV + TC + EE-OE / Job Size
• BV, TC, EE-OE Scale values (Fibonacci sequence): 1,2,3,5,8,13,20
• Prioritize by the highest WSJF
Source: WSJF - Donald Reinertsen, Lean Product Development Flow
Strategic Themes Priority BV TC EE-
OE
Job
Size
Cost of
Delay
(BV+TC+
EE-OE)
WSJF
Predictive analytics drive customer behavior 8 5 5 5 18 3.60
Net Promoter Score increase market
penetration
8 5 3 8 16 2.00
Social media, Mobile, Analytics, and Cloud
platform
5 5 3 8 13 1.63
Internet of Things (IoT) offering to home
owners
3 3 2 13 8 0.62
Calculating Prioritized Value
©2016 KnolShare
• Each strategy requires an OKR• OKRs define an objective with three key metrics• The metrics are specific and measurable• Each OKR has a confidence factor between 0 & 1
OKR Example
Strategic Theme: Predictive analytics drive customer behavior
Objective: Increase customer sales payments through e-commerce
Key results:
1) 20% e-commerce sales processed by Q3
2) Cross sell customers to one adjacent product by Q3
3) Increase Net Promoter Score 5% by Q3
Confidence: 0.6
Objectives and Key Results (OKR)
©2016 KnolShare
-2
0
2
4
6
8
10
12
-2 0 2 4 6 8 10 12
Portfolio Balance
• 20%: High risk & profit (Disruptive innovations)
• 50%: Low risk & profit (Sustaining innovations)
• 20%: low risk & medium profit (Emerging markets)
• 10%: High risk & medium profit (Vertical markets)R
isk
s
Profits
Strategic Backlog Portfolio Balance
©2016 KnolShare
The weighted shortest job first (WSJF)
allows you to:
A) Prioritize value based on cost of delay
B) Select the shortest job first
C) Weigh value by size
D) Value the shortest job first
E) None of the above
Group Engagement #2
©2016 KnolShare
• Satisfy customers and maintain healthy systems
Agile Portfolio Backlog
Costomer Value Innovation Stability
Agile Portfolio Backlog Balance
Business and Architecture Epics Features
User Stories
©2016 KnolShare
• The portfolio represents the organization’s strategic goals• Customer value focused• Prioritize based on highest WSJF value• Constrained by available resource capacity• Short release cycles• Emphasize continual improvement• 2-Days of big room planning
Executives, Managers, Team
leaders, Team members engaged
Agile Portfolio - Right Value Done Right
©2016 KnolShare
• Metrics help to evaluate portfolio backlog outcomes
• Commitment rate (Delivered features / Committed features)
• Epic and Feature progress
• Epic and Feature velocity (pace of delivery)
• Quality trends
• Team velocity vs capacity
Measuring the Promise
©2016 KnolShare
• Evaluates value delivery, efficiency, quality, and agility
Value Delivery
Number of releases
Release date percentage
Efficiency
Team velocity vs capacity
Quality
Defects
Support calls
Support satisfaction
Agility
Testing and Dev practices
Release planning and tracking
Balanced Card
Source: Scaled Agile Framework (SAFe)
Enterprise Balanced Scorecard
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Agile Portfolio Charts
Financial Progress
Work Distribution
Velocity TrendBusiness & Architecture Progress
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• Alerts to indicate we are going off course• Metrics provide guides for corrective actions • Be relentless and pivot to meet objectives• Be fearless and stay the course in adversity
Rumbling Strips
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Select the suggested agile portfolio balance.
A) 50% Customer value, 20% Innovation, 20% Stability
B) 60% Customer value, 30% Innovation, 20% Stability
C) 60% Customer value, 20% Innovation, 20% Stability
D) 60% Customer value, 20% Innovation, 30% Stability
E) None of the above
Group Engagement #3
©2016 KnolShare
• Use Lean Think and Agility to cultivate trust• Share visions that matter to teams, customers, organization• Be diligent and measure what adds value• Develop the mindset that we can all learn from each other
Culture Matters
©2016 KnolShare
Strategies Backlog
• Goals
• Metrics
• Outcomes
Portfolio Backlog
• Business Epics
• Architecture Epics
• Features
Team Backlog
• Stories
• Spikes
Market Launch• Feedback
Strategy and Portfolio Cycle
©2016 KnolShare
Use Iterative strategies to achieve organization goals
Hire a Portfolio Project Management (PPM) Tool
Decide, stop, or clarify strategic discoveries: 2 to 4 weeks
Prioritize strategic and agile portfolio with WSJF
Measure relentlessly – pivot or stay the course
Summary
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Is there anything that was presented that I can clarify?
Q&A
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