Agile2015 Strategy Mapping: Clear path to a successful Agile strategy
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Strategy mapping is a simple framework for visualizing a strategy and it works for Agile adoption as well. My session showed participants how to map cause-and-effect relationships between process, practices, and skills to customer and financial objectives using a strategy map.
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Agile2015 Strategy Mapping: Clear path to a successful Agile strategy
- 1. Dave Neuman Strategy Mapping: Clear path to a successful Agile strategy Twitter: @daveneuman LinkedIn: https://www.linkedin.com/in/daveneuman
- 2. Why are we implementing agility? My boss said The execs said My PMO said we could I want to We want to We need to Speed to market Let’s try it It’s faster It’s better Higher quality More trust More productive
- 3. BUT What’s in it for me? And them? And us? AND What’s it going to take?
- 4. We need a strategy!
- 5. A strategy describes how an organization intends to create value for shareholders, customers, and employees.
- 6. I still don’t get it! Why are we going Agile? Where are we starting?
- 7. We need a map! How about a strategy map?
- 8. A strategy map is a general representation of a strategy that visualizes cause-and-effect relationships of actions and desired outcomes. Robert Kaplan and David Norton (2004) Strategy Maps: Converting Intangible Assets to Tangible Outcomes
- 9. Kaplan & Norton Strategy Map Template Robert Kaplan and David Norton (2004) Strategy Maps: Converting Intangible Assets to Tangible Outcomes Financial Perspective Customer Perspective Internal Perspective (Processes) Learning & Growth Perspective (People) Objectives & Outcomes Actions Intangible Assets Tangible Outcomes
- 10. Kaplan & Norton Strategy Map Template Financial Perspective Long-term Shareholder Value Productivity Growth Customer Perspective Relationship Product / Service Attributes Image Internal Perspective Customer Management Operations Management Innovation Regulatory / Social Learning & Growth Perspective Information Capital Human Capital Organization Capital Skills Training Knowledge Systems Databases Networks Culture Leadership Alignment Teamwork
- 11. Kaplan & Norton Strategy Map Template Robert Kaplan and David Norton (2004) Strategy Maps: Converting Intangible Assets to Tangible Outcomes Skills Training Knowledge Systems Databases Networks
- 12. Strategy Map Example – IT Organization Level FutureOrientation Perspective OperationalExcellence Perspective Customer/EndUser Perspective ITValue Perspective MIC-MAIC IT 2012 Strategy Map “Our mission in Specialty IT is to enable Markel to grow and sustain its specialty insurance market leadership through effective development, delivery, and operation of technology platforms and services that meet the needs of customers and partners today and provide innovative opportunities for Markel in the future.” Sustained shareholder value Manage unit cost of information technology Maximize business unit value creation Provide innovative opportunities Attract and retain skilled people Focus on career development Acquire skills in enabling technologies & practices Build strong leaders Build process discipline Build a high performance culture Promote a culture of learning & innovation Manage IT as a business Realize economies of scale Manage service quality Standardize platforms & architectures Effectively support end users Optimize IT internal processes Improve business productivity Understand business unit strategies Understand emerging technologies Propose enabling solutions Manage risk w/ effective controls Drive innovation Deliver on time and as committed Partner with others Deliver quality solutions Demonstrate a competitive cost model Deliver quality service Achieve business unit strategies Do the right thing at the right time Competency Credibility Contribution Focus for this year
- 13. I see strategy mapping working at the organizational level, but how does it apply to agility?
- 14. Again, why are we implementing agility? What value are we generating for shareholders, customers, and employees? What knowledge and practices do we need to have?
- 15. Strategy Map Example – Agile Adoption Reduced&Time&to&Market& Increase&Wallet&Share&Financial& Customer& Internal& Processes& Learning&&& Growth& Backlog& Grooming& Market& research& Usability& TesCng& Cross&FuncConal& Teams& Lean&Thinking& Systems&Thinking& CollecCve& Ownership& Product& Planning& Product&Vision& UserHcentered& Design& Story&Mapping&Sprint&Planning& Engineering& Process& Sprint&Reviews& RetrospecCves& User&Stories& ConCnuous& Improvement& Engineering& PracCces& Team& FormaCon& IteraCve& Delivery& Early&Feedback& ConCnuous& Delivery& Release& Planning& Automated& TesCng&Methods& Product&Owner& Scrum&Master& Fast&Feedback&
- 16. Now its YOUR turn :) Let’s map an Agile Adoption Strategy
- 17. 1. Prepare map template & grab supplies 2. Identify financial objectives 3. Identify customer value propositions that drive financial objectives 4. Identify internal processes (practices) needed to deliver customer value propositions 5. Identify the knowledge, skills, and organizational elements needed to execute the internal processes Strategy Mapping Process
- 18. With a strategy map in hand… now what???
- 19. Strategy Map – A Communication Tool • Single-page view • Alignment • Education • Factors • Indicators • Cause-and-effect • Focus • Priorities
- 20. Strategy Map – Macro Level Assessment Robert Kaplan and David Norton (2004) Strategy Maps: Linking Intangible Assets to Tangible Outcomes Financial Perspective Customer Perspective Internal Perspective (Processes) Learning & Growth Perspective (People) Lagging Indicators Leading Indicators How are we doing?
- 21. Reduced&Time&to&Market& Increase&Wallet&Share&Financial& Customer& Internal& Processes& Learning&&& Growth& Backlog& Grooming& Market& research& Usability& TesCng& Cross&FuncConal& Teams& Lean&Thinking& Systems&Thinking& CollecCve& Ownership& Product& Planning& Product&Vision& UserHcentered& Design& Story&Mapping&Sprint&Planning& Engineering& Process& Sprint&Reviews& RetrospecCves& User&Stories& ConCnuous& Improvement& Engineering& PracCces& Team& FormaCon& IteraCve& Delivery& Early&Feedback& ConCnuous& Delivery& Release& Planning& Automated& TesCng&Methods& Product&Owner& Scrum&Master& Fast&Feedback& Strategy Map – Action Planning & Coaching Visual management of tactical coaching and improvement activities driving outcomes
- 22. Strategy Map – Strategic Action Planning FutureOrientation Perspective OperationalExcellence Perspective Customer/EndUser Perspective ITValue Perspective MIC-MAIC IT 2012 Strategy Map “Our mission in Specialty IT is to enable Markel to grow and sustain its specialty insurance market leadership through effective development, delivery, and operation of technology platforms and services that meet the needs of customers and partners today and provide innovative opportunities for Markel in the future.” Sustained shareholder value Manage unit cost of information technology Maximize business unit value creation Provide innovative opportunities Attract and retain skilled people Focus on career development Acquire skills in enabling technologies & practices Build strong leaders Build process discipline Build a high performance culture Promote a culture of learning & innovation Manage IT as a business Realize economies of scale Manage service quality Standardize platforms & architectures Effectively support end users Optimize IT internal processes Improve business productivity Understand business unit strategies Understand emerging technologies Propose enabling solutions Manage risk w/ effective controls Drive innovation Deliver on time and as committed Partner with others Deliver quality solutions Demonstrate a competitive cost model Deliver quality service Achieve business unit strategies Do the right thing at the right time Competency Credibility Contribution Focus for this year Incorporate actions into annual strategic plans (e.g. IT, biz, etc.)
- 23. Strategy Map – Micro Level Assessment Leading & Lagging indicators for all factors in the map
- 24. Strategy Map – Action Planning & Coaching Agile coaching gets exponentially complex at scale
- 25. Strategy Mapping Summary • Developed by Kaplan and Norton after the Balanced Scorecard to tie actions with outcomes being measured • Simple model incorporates four perspectives: financial, customer, internal processes, and learning & growth • Visualizes cause-and-effect relationships between actions and outcomes • Applies at organizational (macro) levels and with sub- strategies (micro) • Enhances communication, education, assessment, action planning and coaching