Ričardas Kunevičius: Strategy Implementation Sprint by Sprint

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This document discusses implementing a strategy using Scrum methodology at an IT company called E-Bros. It proposes a new project portfolio concept organized around areas, targets, and backlogs to provide clearer strategic direction compared to just tracking individual user stories. Key aspects include defining strategic areas and targets, compiling quarterly backlogs of user stories to achieve targets, allocating team resources, and holding regular strategy and planning meetings to review progress and set new targets. The goal is to take a more holistic strategic view while still implementing incrementally using Scrum sprints.

Business Technology

Content Situation Scrumming for one year already Current issues Strategy and direction New portfolio concept and structure Link to planning 2 Conclusions

Company and me E-Bros IT innovation company Common business with partners Investing into product development Always looking for new opportunities and ideas Me 20+ years in IT field 10 years in big corporate business 3 years at E-Bros

SCRUM @ E-Bros October 2010 - August 2011 417 user stories 1689 story points

Main benefits Happy customers Predictable short term delivery Great involvement into the process Increasing of SW quality Doing exactly what’s needed Prompt feedback Fast cycle

New challenges People On the edge of chaos but not beyond Teams Anarchy, federation, collaboration Products and platforms Chicken or egg How to manage it all Clear view, right direction

Strategy From businessdictionary.com: “A method or plan chosen to bring about a desired future, such as achievement of a goal or solution to a problem”. www.thefreedictionary.com Synonym for planning! All about a wayhow to be where we want to be

Project portfolio as a strategy reflection

Why it doesn’t work with SCRUM Wrong approach Project isn‘ta list of stories Project requires change tracking Project has different acceptance criterion And so on Well managed portfolio became useless Broken down just in a month Sprint by sprint rally Targets and directions somewhere between the lines

New portfolio concept: backlog For each target User story for each step Incremental value per user story

New portfolio concept: user story User stories with size, priorities and status Level of details on the backlog depends on time Keep just a short description for future stories More details just before development One story could be attach to a few targets

Keep it rolling!!! Areas Quarter plan Resource (team) allocation User Stories Area2 Target1 Target2 Area1 Target1 Target2 Balance Area3 Target1 Target2 All together now!!! Area1/Target 1 Value!!! Definition Acceptance Criteria Deadline Status User story 1 Status Size User story 2 Status Size User story 3 Status Size User story 4 Status Size Target backlog Execute!!!

Quarter plan Stories to select A list of user stories for targets to be completed during the quarter is compiled + Future targets (from next 2 quarters) To avoid just one quarter horizon People to mobilize Team involvement is needed Review story points per area Evaluate the workload Go back for the targets if unreachable Allocate teams for the quarter

Control of the process Strategy meetings 2-3 times a year To review areas and directions Check the target achievement Set up the new targets/cancel some of them Quarter planning Once per quarter Review performance and share experience Review backlogs per area for the quarter Check if all the items still valid Check if we could do this

Along the strategy Areas Strategy planning Targets Quarter planning Backlog

Conclusions Scrum implementation direction Doesn't matter It’s most effective when all tears are covered Transparency &Commitment Information flow Common goals (targets) Commitment at all levels End right before the end “All wrong but some useful”

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Project Management Methodologies PPMP20009 Week 10 Lecture Dr Bernard Wong [email protected] 1 Assignment 4 Continuous Improvement Plan Week 12 Friday Open the course profile to review criteria. 2 Reminder PPMP20009 Presentation weeks 11 or 12 4 Create your own Deming PDCA cycle relating to the last assignment that you handed in. Change Management 6 Formulate change Plan change Implement change Manage transition Sustain change Take the ‘Act’ segment of the PDCA cycle you created earlier and define the five CM stages. Formulate change Plan change Implement change Manage transition Sustain change Continuous Improvement? Why are we wanting to improve? Where are we now? What are we working with? If you don’t know where you are going, any road will get you there. Cheshire Cat (Alice in Wonderland) There are a number of things to consider when deciding what level of maturity to aim for. Why are you wanting to increase your level of maturity in this space? -Some might be wanting to do it simply as a continuous improvement strategy. Some may be having issues with the performance of their program and project delivery or portfolio investment returns Others may need it to be competitive in a market that looks at the P3M3 levels of organisations in the tendering process Others may be required to undergo a mandatory audit – as did the Qld Govt in 2012. One organisation that I have spoken with has noted that their environment has become increasingly fiscally constrained and as such funding is much more competitive. They want to increase certain sections of their maturity, specifically relating to benefits management, business case and blueprint development – so that they can be more competitive in seeking funding for initiatives. So in this case they are not necessarily trying to improve their maturity as a whole, but an aspect of it. In doing this however, it is likely that they will have an increase in maturity in other areas as well. We need to know where you are now to assist in deciding where you want to go. This is where going through an assessment is essential and I do believe in this being independent. You can self assess but this will always be impacted with bias. You need to baseline. What are you working with? What is your organisational context? What resources do you have both budget and people? Do you have authentic sponsorship or are your leaders just ticking a mandate off? What’s your organisational culture like, are they open to P3 management or are they likely to see effort to increase maturity as unnecessary overhead? So when we went through this process we were fortunate to have an authentic sponsor, we had a culture of project and program delivery so the staff understood the value of the practice (and I do say practice rather than methodology – as if you have experienced practitioners, they will argue methodology with you – this is a good thing!). We.

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subject.....project management. Tools and Processes Based on the progressive case study (PCS) project, you will need to develop a list of tools and processes that you would use as the contractor of record for opening the new division office. •Will you use subcontractors for different parts of the project? •How will you maintain contact communication? •How will you track progress, milestones, and setbacks? •How will you monitor resources and budget? •What reporting systems will you use? You are not expected to address all of these areas, though this is not an exhaustive list. Choose one or two components and describe the tools and processes you will use, then explain the rationale for using these tools. You may choose to use a certain tool as that is where your experience is, or it is more cost effective for example. not less than 150 words A project team requires individuals from the cross-functional area who can come and work together on different aspects of the project. In this regard, a project based organizational structure will be developed that will be flat in nature. The first parameter of the selection of the team member is the ability to work in the respective areas of the project and or the past experience of working on similar projects. The second parameter is the ability to manage a dual line of command (line and project) while working on the project. The third parameter is the propensity to work in a team and complement each other so that project work runs smoothly. The fourth parameter is the ability to take decisions with the given authority so that project work is not delayed due to the decision-making process. Besides, there should be guidelines related to the scope, objectives, time-based milestones as well as closure of the project. It should be based on the ethical principles. Regarding the challenges, the first challenge is the procurement of resources to build capacity as no any department or function wants to release the best employees. The second challenge is the building of the clarity in command so that any ambiguity is eliminated. The third challenge is the timely availability of resources and funds other than HR to start the project. The next challenge is to build the cooperation based team culture in the project team Solution TRACKING PROGRESS, MILESTONES, AND SETBACKS: A contractor needs to keep a close check on the progress of the project on which he is working. Project management is a difficult and very important task and requires skills and expertise of the contractor so as to make sure that the project is working as planned for. Keeping a track on the progress of the project is must from time to time and making sure that the milestones are achieved properly and if in case of any setbacks, recording why it happened. Following are the list of the tools that can be used to track the progress, milestones and setback of the project: MONITORING RESOURCES AND BUDGET: For successful completion of every project it is .

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Financial Statement Analysis Ratio Analysis Example Prufrock Corporation Balance Sheet as of December 31,2008 ($ in millions) Assets Liabilities and Owners' Equity Current assets Current liabilities Cash $98 Accounts payable $344 Accounts receivable $188 Notes payable $196 Inventory $422 Total $540 Total $708 Long-term debt $457 Fixed assets Owners' equity Net plant and equipment $2,880 Common stock and paid-in surplus $550 Total assets $3,588 Retained earnings $2,041 Total $2,591 Total liabilities and owners' equity $3,588 Prufrock Corporation 2008 Income Statement ($ in millions) Sales 2311 Cost of goods sold 1344 Depreciation 276 Earnings before interest and taxes 691 Interest paid 141 Taxable income 550 Taxes (34%) 187 Net income 363 Dividends 121 Addition to retained earnings 242 *Create common size balance sheet and common size income statement. *Calculate ratios for Prufrock Corporation Short-term solvency or liquidity ratios Liquidity ratio measures the firm’s ability to pay its bills over the short run without undue stress. Current ratio= *Do we have enough short-term liquid assets to cover our short-term debts? Quick ratio (acid test ratio) = *Do we have enough really liquid short-term assets to cover our short-term debts? Long-term solvency, or financial leverage, ratios Leverage ratio measures the form’s long-run ability to meet its obligations. Total debt ratio= What percentage of total assets is financed with either short- or long-term debt? Debt-equity ratio= Times interest earned= * It measures how well a company has its interest obligations covered. Are we generating enough income to make out interest payments? Asset management or turnover ratios Turnover ratios measure asset use efficiency. Inventory turnover= *On average, how many times per year do we go through our inventory? (Excess inventory is expensive!) Day’s sales Outstanding= Fixed Assets Turnover Ratio= Total Assets Turnover Ratio= Profitability ratios Operating margin= Profit margin= Return on assets (ROA) = *What is profit per dollar of asset? Return on equity (ROE) = *What is the rate of return for stockholders? Return on equity (ROE) = Profit margin * Total asset turnover * Equity multiplier Market value ratios (We assume that Prufrock has 33 million shares outstanding and stock sold for $88 per share at the end of the year.) EPS= Price-earnings ratio= Market-to-book ratio= 4-1 Running head: FULL TITLE OF YOUR PAPER IN CAPS ON ONE LINE1 ABBREVIATED TITLE OF YOUR PAPER 2 Team Paper: Sources of and solutions to conflict in a virtual environment PJM6210 Communication Skills for Project Managers Month, day, year Sources of Conflict in a Virtual Environment Interpersonal Conflict 🡪 Jones In the second paragraph, begin addressing your first topic or question. This should directly align to what you stated you were going to talk about in the first se ..

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Case Study Continued – Week Five You have been performing in the role of project manager in support of Ms. Jackson’s vision of creating a strong and talented project management professional team leading to stronger project execution. Ms. Jackson has just called you into her office with a few updates: • ACME has been revisiting their strategy and decided that product development will become a heavy focus for the organization over the next three years. Due to this product development focus, she wants to also implement an Agile training program which will specifically focus on Scrum techniques. Ms. Jackson has asked for you to add it to the scope of the current training program which was approved when you submitted the business case. She is not familiar with change management principles so you will have to create a change form and high level change process that the team will follow. Ms. Jackson is willing to give you an additional $15,000 in budget but would like this completed in the same timeframe as the initial project request. The $15,000 is her budget but may not be based upon what the actual costs may be. According to your research, adding Agile may cost an additional $20,000 and have to be done subsequent to the initial training program which has already been scheduled. • In addition, upon a recent review of your risk register with your team, a risk that was identified as high impact is seemingly turning into an issue. This risk was related to the potential turnover in training personnel. You have just learned that your top trainer may be leaving the project for a new opportunity. • The current forecast of the project indicates that your cost estimate may have been too low. Current projections indicate that beginning in month five of the project, you may be exceeding your budget by $10,000 per month. • Other key indicators: • Your actual month end scheduling data shows that you are currently performing according to plan and all tasks are being completed on time. • Your last staffing report shows very little project team attrition or turnover. • Early surveys from participants in the training show a high degree of satisfaction. Changes such as these are not uncommon in the project management profession. Determining whether the request constitutes a change in scope, schedule, and budget is an integral component of project management. Using your business case, project charter and stakeholder analysis, determine how this new information will impact your project. What type of change process will you be recommended be implemented? Assignment Overview: For this assignment, you will be assessing a proposed change to the scope of the project, proposing an overview of a change management process, drafting a change request form, and discussing how the change will be communicated to the stakeholders inclusive of the sponsor. Learning Connection: This assignment.

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Ričardas Kunevičius: Strategy Implementation Sprint by Sprint

1. Strategy implementationsprint by sprint

2. Content Situation Scrumming for one year already Current issues Strategy and direction New portfolio concept and structure Link to planning 2 Conclusions

3. Company and me E-Bros IT innovation company Common business with partners Investing into product development Always looking for new opportunities and ideas Me 20+ years in IT field 10 years in big corporate business 3 years at E-Bros

4. Scrum @E- Bros

5. SCRUM @ E-Bros October 2010 - August 2011 417 user stories 1689 story points

6. Performance to compare

7. Main benefits Happy customers Predictable short term delivery Great involvement into the process Increasing of SW quality Doing exactly what’s needed Prompt feedback Fast cycle

8. New challenges People On the edge of chaos but not beyond Teams Anarchy, federation, collaboration Products and platforms Chicken or egg How to manage it all Clear view, right direction

9. Strategy From businessdictionary.com: “A method or plan chosen to bring about a desired future, such as achievement of a goal or solution to a problem”. www.thefreedictionary.com Synonym for planning! All about a wayhow to be where we want to be

10. Project portfolio as a strategy reflection

11. Why it doesn’t work with SCRUM Wrong approach Project isn‘ta list of stories Project requires change tracking Project has different acceptance criterion And so on Well managed portfolio became useless Broken down just in a month Sprint by sprint rally Targets and directions somewhere between the lines

12. Project portfolio and SCRUM

13. New (old) portfolio concept: areas

14. New portfolio concept: targets

15. New portfolio concept: backlog For each target User story for each step Incremental value per user story

16. New portfolio concept: user story User stories with size, priorities and status Level of details on the backlog depends on time Keep just a short description for future stories More details just before development One story could be attach to a few targets

17. Keep it rolling!!! Areas Quarter plan Resource (team) allocation User Stories Area2 Target1 Target2 Area1 Target1 Target2 Balance Area3 Target1 Target2 All together now!!! Area1/Target 1 Value!!! Definition Acceptance Criteria Deadline Status User story 1 Status Size User story 2 Status Size User story 3 Status Size User story 4 Status Size Target backlog Execute!!!

18. Quarter plan Stories to select A list of user stories for targets to be completed during the quarter is compiled + Future targets (from next 2 quarters) To avoid just one quarter horizon People to mobilize Team involvement is needed Review story points per area Evaluate the workload Go back for the targets if unreachable Allocate teams for the quarter

19. Control of the process Strategy meetings 2-3 times a year To review areas and directions Check the target achievement Set up the new targets/cancel some of them Quarter planning Once per quarter Review performance and share experience Review backlogs per area for the quarter Check if all the items still valid Check if we could do this

20. Along the strategy Areas Strategy planning Targets Quarter planning Backlog

21. Conclusions Scrum implementation direction Doesn't matter It’s most effective when all tears are covered Transparency &Commitment Information flow Common goals (targets) Commitment at all levels End right before the end “All wrong but some useful”

22. That is all - thank you very much

Editor's Notes

2 countries4 teams LT + 1 KANBAN1 team FITeam sizes differs from team to team – I wish to have them biggerCommon info space –TFS – is used for the communication
Tricky task - doing less could gain moreStructure of waterfall and scrum development it’s rather different.Cannot compare project to a set of US, same could be applied to performance, deadlines and other criteria.I haven’t right metrics and knowledge to do thisOne thing is probably could show the differentUnfinished work = waistAt some point we had about half year of unfinished project work on our waterfall projects.Something could be recovered but something just lost moneyWith scrum we are delivering every 2 weeks so theoretical unfinished work is 0, practically there is still some but on a total different level.
Let’s start a bit from the distanceStrategySome definitions here and you could find much more if you wantIt’s all about a where we want to be and how to get here
Have seen this picture at Gartner portfolio conference @2003Clear levels and iterationsUsed it successfully before the scrumI am project portfolio manUsed to create and manage project portfolio for big international companyApplied it to E-Bros and we lived with it happy for a couple of years
Mainly we where working on small to medium projects (something up to one man year but less on average)After starting scrumming I have got some challengesFirst approach – translate projects into the collections of the storiesInitially it looked almost OKBut after a while – US sorting just broke project boundaries. - New US wasn’t updated to the project - Some features from the project was accepted and development moved somewhere else without closing the rest - So big part of our portfolio started to look rather fragmentedSprint by sprint running OKPortfolio outdated in the monthsNo efforts to keep it alive – people are doing what makes sense – cannot survive long or the artificial process
So we have got some stormy gap between the tearsTop part of the picture remained the same – and should beAs all we (and our companies) should have the higher goalsNext to the nice development process we need to think where to get money to support itWe weren’t totally isolated but all the strategy communication was somehow hanging in the air. It lead for some wrong interpretation.Also the developers wasn’t motivated because they lost a feeling of doing something important.Just adding feature after feature, sprint after sprint without a clear vision where we are moving
I am still the portfolio manBack to roots:IT development as investmentsDefining IT investment areasSplit a pie by areasWhat’s common with scrum??? Prioritization to maximize business value Effective delivery to minimize costsTraining on product owner class showed more similarities between project portfolio management and scrum product owner activities
Define targets for each areaTarget definitionDeadline (quarter)Split a pie by areasAcceptance criteriaDefining clear criteria in advanceAutomated or manual tracking of acceptance
I have read somewhere what target without the deadline is just a dreamThe same could be said about the knowledge how to achieve itSo there we are going back to scum – US are here.We define US as the steps to reach our targetDifferent level of detailsIt’s agile because we could make changes to stories, priorities at this level still targeting the same targetTargets itself could be more stable as a backlog of US related but it also could be change if needed.
Benefits of the systemEasy – small number of the artifacts to manageTransparent from bottom to top and vice versusTeams should actively participating in the building the backlogThis is a hot approach – we just started building this –it’s the way we are going to work in the nearest futureHigh acceptance on all levelSimple and transparent approach…Nearest targets are set up – working on the backlogs currently
If there not enough velocity the targets must be reset Moved away Canceled More developers hired etc.
As mentioned earlier – targets could be changeSome achieved, some removed from the portfolioThe board of the company is responsible for this processTools to useTFS

Ričardas Kunevičius: Strategy Implementation Sprint by Sprint

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Ričardas Kunevičius: Strategy Implementation Sprint by Sprint

Editor's Notes