Value-based Scheduling

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A key management challenge today is juggling multiple projects in the face of shifting priorities and overcommitted teams. Studies show that multi-tasking and context switching lead to suboptimal performance and execution, but is single tasking enough? In order for single tasking to be effective, people must know which tasks bring the most value to the organization, a deceptively simple problem. Common strategies, such as assigning revenue to tasks or prioritizing by ROI, are difficult to use in practice and ignore a crucial factor: the value of time.

"Value-based scheduling" is a new approach that integrates product value information with engineering and project information to assign a "cost of delay" to every task in an organization. Using this technique, individuals' tasks can be automatically prioritized by value so that everyone knows which tasks have the biggest impact on the organization. This technique can also be extended to scheduling an entire project portfolio by value, integrating marketing and engineering updates automatically. The resulting schedules are load-leveled and have realistic completion dates that maximize the value of the project portfolio.

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Value-based Scheduling

  1. 1. Lakeway T E C H N O L O G I E S Value-based Scheduling: Getting your Group’s Priorities Straight Rino Jose, Ph.D. r.jose@lakeway-tech.com COPYRIGHT © 2010, LAKEWAY TECHNOLOGIES LLC Friday, January 8, 2010
  2. 2. TIME TARGET Lakeway COPYRIGHT © 2010, LAKEWAY TECHNOLOGIES LLC T E C H N O L O G I E S Friday, January 8, 2010
  3. 3. TIME TARGET Multitasking gives a false sense of security Lakeway COPYRIGHT © 2010, LAKEWAY TECHNOLOGIES LLC T E C H N O L O G I E S Friday, January 8, 2010
  4. 4. TIME TARGET Multitasking gives a false sense of security Lakeway COPYRIGHT © 2010, LAKEWAY TECHNOLOGIES LLC T E C H N O L O G I E S Friday, January 8, 2010
  5. 5. Multitasking = Bad TIME TARGET “No priorities” means missed targets Lakeway COPYRIGHT © 2010, LAKEWAY TECHNOLOGIES LLC T E C H N O L O G I E S Friday, January 8, 2010
  6. 6. Multitasking = Bad Lakeway COPYRIGHT © 2010, LAKEWAY TECHNOLOGIES LLC T E C H N O L O G I E S Friday, January 8, 2010
  7. 7. Multitasking = Bad Lakeway COPYRIGHT © 2010, LAKEWAY TECHNOLOGIES LLC T E C H N O L O G I E S Friday, January 8, 2010
  8. 8. Multitasking = Bad The answer isn’t single-tasking alone... Lakeway COPYRIGHT © 2010, LAKEWAY TECHNOLOGIES LLC T E C H N O L O G I E S Friday, January 8, 2010
  9. 9. Multitasking = Bad Lakeway COPYRIGHT © 2010, LAKEWAY TECHNOLOGIES LLC T E C H N O L O G I E S Friday, January 8, 2010
  10. 10. Multitasking = Bad “Identify the tasks that will create the most value and focus on those.” Lakeway COPYRIGHT © 2010, LAKEWAY TECHNOLOGIES LLC T E C H N O L O G I E S Friday, January 8, 2010
  11. 11. Need to Know Task Value raightforward for individuals St 1. Draft blog post 2. Buy milk 3. Send birthday card to brother 4. Replace guest room sink 5. Clean desk Lakeway COPYRIGHT © 2010, LAKEWAY TECHNOLOGIES LLC T E C H N O L O G I E S Friday, January 8, 2010
  12. 12. Need to Know Task Value ier for orga nizations Trick Lakeway COPYRIGHT © 2010, LAKEWAY TECHNOLOGIES LLC T E C H N O L O G I E S Friday, January 8, 2010
  13. 13. Checklist Task Need to Know Task Value Send process charts back to client Send message to Rob Log time Attend PM status meeting Reply to Vitaliy Add splash video to homepage Reply to Derrick Reply to Pete Send note to MIke at FEI Go through slides and take notes nizations Prepare for BSD PM training workshop orga Submit invoice ickier for Rewrite “5 Principle for Project Success” as a blog post Tr Finish up Frontier RC2 Add table of contents to workshop doc Revise workshop slides Transcribe notes from BSD training Take notes on Steve Johnson talk Read through marketing document Create templates for Lakeway material Send check to SAO Send report and slides to client Move Frontier sources to git Get nginx running Revise BSD report Create graphviz gem for Ubuntu Schedule meeting with Tom next week Read “SPIN selling” Send message to George about pricing Ranking a team’s Revise product positioning matrix Prepare for meeting with Tom Display only frontier tasks in urgency/value chart tasks can be tedious Revise license agreement for Frontier Prepare for case study questions Set up interview with Tyler Draft Frontier user manual Draft case study report Reply to Ed Send Rob podcast from HBR on selling Add Marcom material to git Send Ed the PM workshop slides Pay Regence bill Set up monit Set up new business cards Create Hyper-V version of Frontier Finish going through Flash training Set up demo version of Frontier Draft post on the value of a positioning matrix Add testimonials to homepage Get permission to use quotes Set up demo with Curt Set up Frontier server Revise Technical Consulting agreement Review entrants for Itanium awards Lakeway Check graphviz tests Create workflows for Curt Reply to Doug on lunch meeting COPYRIGHT © 2010, LAKEWAY TECHNOLOGIES LLC Look into Salesforce.com T E C H N O L O G I E S Set up WebEx Friday, January 8, 2010
  14. 14. Need to Know Task Value ier for orga nizations Trick Ranking a team’s tasks can be tedious Managers don’t have enough visibility Lakeway COPYRIGHT © 2010, LAKEWAY TECHNOLOGIES LLC T E C H N O L O G I E S Friday, January 8, 2010
  15. 15. Need to Know Task Value ier for orga nizations Trick Communicating top-level goals is difficult Ranking a team’s tasks can be tedious Managers don’t have enough visibility Lakeway COPYRIGHT © 2010, LAKEWAY TECHNOLOGIES LLC T E C H N O L O G I E S Friday, January 8, 2010
  16. 16. Need to Know Task Value ier for orga nizations Trick Communicating top-level goals is difficult “Identify the tasks that will create the most value and focus on those.” Ranking a team’s tasks can be tedious Managers don’t have enough visibility Lakeway COPYRIGHT © 2010, LAKEWAY TECHNOLOGIES LLC T E C H N O L O G I E S Friday, January 8, 2010
  17. 17. HOW? Lakeway COPYRIGHT © 2010, LAKEWAY TECHNOLOGIES LLC T E C H N O L O G I E S Friday, January 8, 2010
  18. 18. Divide Revenue Across Tasks? 1 5 43 2 $0.5M $1M $1M $1.5M Lakeway T E C H N O L O G I E S Friday, January 8, 2010
  19. 19. Divide Revenue Across Tasks? Dependencies complicate priorities 1 5 43 2 $0.5M $1M $1M $1.5M Lakeway T E C H N O L O G I E S Friday, January 8, 2010
  20. 20. Divide Revenue Across Tasks? Dependencies complicate priorities 1 5 43 2 Dependencies complicate $0.5M $1M value ROI has the $1M same problems $1.5M Lakeway T E C H N O L O G I E S Friday, January 8, 2010
  21. 21. Rank by Product Value? #1 $75M Jupiter #2 $50M Neptune #3 $40M Saturn #4 $10M Mars Lakeway T E C H N O L O G I E S Friday, January 8, 2010
  22. 22. Rank by Product Value? #1 $75M Jupiter #2 $50M Neptune #3 $40M Saturn #4 $10M Mars Does a typo in Jupiter outrank a critical feature in Neptune? Lakeway T E C H N O L O G I E S Friday, January 8, 2010
  23. 23. Rank by Product Value? #1 $75M Jupiter #2 $50M Neptune #3 $40M Saturn #4 $10M Mars No priority guidance within a product Lakeway T E C H N O L O G I E S Friday, January 8, 2010
  24. 24. WHAT NOW? Lakeway COPYRIGHT © 2010, LAKEWAY TECHNOLOGIES LLC T E C H N O L O G I E S Friday, January 8, 2010
  25. 25. “Value-based Scheduling” Lakeway T E C H N O L O G I E S Friday, January 8, 2010
  26. 26. Key Insight #1: Value of Time #1 $75M Jupiter #2 $50M Neptune #3 $40M Saturn #4 $10M Mars Lakeway T E C H N O L O G I E S Friday, January 8, 2010
  27. 27. Key Insight #1: Value of Time 80 $75M Jupiter 60 $50M Neptune $40M Saturn 40 20 $10M Mars 0 Q1 Q2 Q3 Q4 Release Date Lakeway T E C H N O L O G I E S Friday, January 8, 2010
  28. 28. Key Insight #1: Value of Time 80 $30K/d Jupiter #3 60 $130K/d Neptune #2 $380K/d Saturn #1 40 20 $5K/d Mars #4 0 Q1 Q2 Q3 Q4 Release Date Lakeway T E C H N O L O G I E S Friday, January 8, 2010
  29. 29. Key Insight #2: Dependencies Need to account for dependencies Lakeway T E C H N O L O G I E S Friday, January 8, 2010
  30. 30. ASIDE: CRITICAL PATH Task B 1d Task C 1d Task F Task A 1d 1d Task D 1d Task E 2d Lakeway T E C H N O L O G I E S Friday, January 8, 2010
  31. 31. ASIDE: CRITICAL PATH ES: 2 EF: 3 Task B 1d ES: 2 EF: 3 Task C 1d ES: 4 EF: 5 ES: 1 EF: 2 Task F Task A 1d 1d ES: 2 EF: 3 Task D 1d ES: 2 EF: 4 Task E 2d Compute early data by sweeping forward through tasks Lakeway T E C H N O L O G I E S Friday, January 8, 2010
  32. 32. ASIDE: CRITICAL PATH ES: 2 EF: 3 Task B 1d LS: 3 LF: 4 ES: 2 EF: 3 Task C 1d ES: 4 EF: 5 ES: 1 EF: 2 LS: 3 LF: 4 Task F Task A 1d 1d LS: 4 LF: 5 LS: 1 LF: 2 ES: 2 EF: 3 Task D 1d LS: 3 LF: 4 ES: 2 EF: 4 Task E 2d LS: 2 LF: 4 Compute late data by sweeping backwards through tasks Lakeway T E C H N O L O G I E S Friday, January 8, 2010
  33. 33. ASIDE: CRITICAL PATH ES: 2 EF: 3 Task B 1d LS: 3 LF: 4 ES: 2 EF: 3 Task C 1d ES: 4 EF: 5 ES: 1 EF: 2 LS: 3 LF: 4 Task F Task A 1d 1d LS: 4 LF: 5 LS: 1 LF: 2 ES: 2 EF: 3 Task D 1d LS: 3 LF: 4 ES: 2 EF: 4 Task E 2d LS: 2 LF: 4 Critical path goes through tasks with no slack Lakeway T E C H N O L O G I E S Friday, January 8, 2010
  34. 34. ASIDE: CRITICAL PATH ES: 2 EF: 3 Task B 1d LS: 3 LF: 4 ES: 2 EF: 3 Task C 1d ES: 4 EF: 5 ES: 1 EF: 2 LS: 3 LF: 4 Task F Task A 1d 1d LS: 4 LF: 5 LS: 1 LF: 2 ES: 2 EF: 3 Task D 1d LS: 3 LF: 4 ES: 2 EF: 4 Task E 2d LS: 2 LF: 4 Critical path goes through tasks with no slack Lakeway T E C H N O L O G I E S Friday, January 8, 2010
  35. 35. ASIDE: CRITICAL PATH ES: 2 EF: 3 Task B 1d LS: 3 LF: 4 ES: 2 EF: 3 Task C 1d ES: 4 EF: 5 ES: 1 EF: 2 LS: 3 LF: 4 Task F Task A 1d 1d LS: 4 LF: 5 LS: 1 LF: 2 ES: 2 EF: 3 Task D 1d LS: 3 LF: 4 ES: 2 EF: 4 Task E 2d LS: 2 LF: 4 Critical path goes through tasks with no slack Lakeway T E C H N O L O G I E S Friday, January 8, 2010
  36. 36. ASIDE: CRITICAL PATH ES: 2 EF: 3 Task B 1d LS: 3 LF: 4 ES: 2 EF: 3 Task C 1d ES: 4 EF: 5 ES: 1 EF: 2 LS: 3 LF: 4 Task F Task A 1d 1d LS: 4 LF: 5 LS: 1 LF: 2 ES: 2 EF: 3 Task D 1d LS: 3 LF: 4 ES: 2 EF: 4 Task E 2d LS: 2 LF: 4 Lakeway T E C H N O L O G I E S Friday, January 8, 2010
  37. 37. ASIDE: CRITICAL PATH ES: 2 EF: 3 Task B 1d LS: 3 LF: 4 ES: 2 EF: 3 Task C 1d ES: 4 EF: 5 ES: 1 EF: 2 LS: 3 LF: 4 Task F Task A 1d 1d LS: 4 LF: 5 LS: 1 LF: 2 ES: 2 EF: 3 Task D 1d LS: 3 LF: 4 ES: 2 EF: 4 Task E 2d LS: 2 LF: 4 Lakeway T E C H N O L O G I E S Friday, January 8, 2010
  38. 38. ASIDE: CRITICAL PATH ES: 2 EF: 3 ES: 3 EF: 4 ES: 4 EF: 5 Task B Task C Task D 1d 1d 1d LS: 2 LF: 3 LS: 3 LF: 4 LS: 4 LF: 5 ES: 1 EF: 2 ES: 2 EF: 4 ES: 5 EF: 6 Task A Task E Task F 1d 2d 1d LS: 1 LF: 2 LS: 3 LF: 5 LS: 5 LF: 6 Lakeway T E C H N O L O G I E S Friday, January 8, 2010
  39. 39. Key Insight #2: Dependencies Need to account for dependencies Lakeway T E C H N O L O G I E S Friday, January 8, 2010
  40. 40. Key Insight #2: Dependencies $ Value ES: 2 EF: 3 ES: 3 ES: 2 EF: 4 EF: 3 ES: ES: 3 EF: EF: 4 4 5 ES: 4 EF: 5 Task B Task C Task B Task D C Task Task D 1d 1d 1d 1d 1d 1d LS: 2 LF: 3 LS: 3 LS: 2 LF: 4 LF: 3 LS: 4 3 LF: 5 4 LS: LF: LS: 4 LF: 5 ES: 1 EF: 2 ES: 2 EF: 4 ES: 2 EF: 4 ES: 5 EF: 6 ES: 5 EF: 6 Task A Task E Task E Task F Task F 1d 2d 2d 1d 1d LS: 1 LF: 2 LS: 3 LF: 5 LS: 3 LF: 5 LS: 5 LF: 6 LS: 5 LF: 6 Release Date Lakeway T E C H N O L O G I E S Friday, January 8, 2010
  41. 41. Key Insight #2: Dependencies $ Value ES: 2 EF: 3 ES: 3 ES: 2 EF: 4 EF: 3 ES: ES: 3 EF: EF: 4 4 5 ES: 4 EF: 5 Task B Task C Task B Task D C Task Task D 1d 1d 1d 1d 1d 1d LS: 2 LF: 3 LS: 3 LS: 2 LF: 4 LF: 3 LS: 4 3 LF: 5 4 LS: LF: LS: 4 LF: 5 ES: 1 EF: 2 ES: 2 EF: 4 ES: 2 EF: 4 ES: 5 EF: 6 ES: 5 EF: 6 Task A Task E Task E Task F Task F 1d 2d 2d 1d 1d LS: 1 LF: 2 LS: 3 LF: 5 LS: 3 LF: 5 LS: 5 LF: 6 LS: 5 LF: 6 Release Date Lakeway T E C H N O L O G I E S Friday, January 8, 2010
  42. 42. Key Insight #2: Dependencies $ $ Value ES: 2 EF: 3 ES: 3 ES: 2 EF: 4 EF: 3 ES: ES: 3 EF: EF: 4 4 5 ES: 4 EF: 5 Task B Task C Task B Task D C Task Task D 1d 1d 1d 1d 1d 1d LS: 2 LF: 3 LS: 3 LS: 2 LF: 4 LF: 3 LS: 4 3 LF: 5 4 LS: LF: LS: 4 LF: 5 ES: 1 EF: 2 ES: 2 EF: 4 ES: 2 EF: 4 ES: 5 EF: 6 ES: 5 EF: 6 Task A Task E Task E Task F Task F 1d 2d 2d 1d 1d LS: 1 LF: 2 LS: 3 LF: 5 LS: 3 LF: 5 LS: 5 LF: 6 LS: 5 LF: 6 Release Date Lakeway T E C H N O L O G I E S Friday, January 8, 2010
  43. 43. Key Insight #2: Dependencies $ Value ES: 2 EF: 3 ES: 3 ES: 2 EF: 4 EF: 3 ES: ES: 3 EF: EF: 4 4 5 ES: 4 EF: 5 Task B Task C Task B Task D C Task Task D 1d 1d 1d 1d 1d 1d LS: 2 LF: 3 LS: 3 LS: 2 LF: 4 LF: 3 LS: 4 3 LF: 5 4 LS: LF: LS: 4 LF: 5 ES: 1 EF: 2 ES: 2 EF: 4 ES: 2 EF: 4 ES: 5 EF: 6 ES: 5 EF: 6 Task A Task E Task E Task F Task F 1d 2d 2d 1d 1d LS: 1 LF: 2 LS: 3 LF: 5 LS: 3 LF: 5 LS: 5 LF: 6 LS: 5 LF: 6 Release Date Lakeway T E C H N O L O G I E S Friday, January 8, 2010
  44. 44. Key Insight #2: Dependencies $ Value ES: 2 EF: 3 ES: 3 ES: 2 EF: 4 EF: 3 ES: ES: 3 EF: EF: 4 4 5 ES: 4 EF: 5 Task B Task C Task B Task D C Task Task D 1d 1d 1d 1d 1d 1d LS: 2 LF: 3 LS: 3 LS: 2 LF: 4 LF: 3 LS: 4 3 LF: 5 4 LS: LF: LS: 4 LF: 5 ES: 1 EF: 2 ES: 2 EF: 4 ES: 2 EF: 4 ES: 5 EF: 6 ES: 5 EF: 6 Task A Task E Task E Task F Task F 1d 2d 2d 1d 1d LS: 1 LF: 2 LS: 3 LF: 5 LS: 3 LF: 5 LS: 5 LF: 6 LS: 5 LF: 6 Release Date Lakeway T E C H N O L O G I E S Friday, January 8, 2010
  45. 45. Key Insight #2: Dependencies $ Value ES: 2 EF: 3 ES: 3 ES: 2 EF: 4 EF: 3 ES: ES: 3 EF: EF: 4 4 5 ES: 4 EF: 5 Task B Task C Task B Task D C Task Task D 1d 1d 1d 1d 1d 1d LS: 2 LF: 3 LS: 3 LS: 2 LF: 4 LF: 3 LS: 4 3 LF: 5 4 LS: LF: LS: 4 LF: 5 ES: 1 EF: 2 ES: 2 EF: 4 ES: 2 EF: 4 ES: 5 EF: 6 ES: 5 EF: 6 Task A Task E Task E Task F Task F 1d 2d 2d 1d 1d LS: 1 LF: 2 LS: 3 LF: 5 LS: 3 LF: 5 LS: 5 LF: 6 LS: 5 LF: 6 Release Date Lakeway T E C H N O L O G I E S Friday, January 8, 2010
  46. 46. Key Insight #2: Dependencies $ Can compute the “cost of delay” for each task Value ES: 2 EF: 3 ES: 3 ES: 2 EF: 4 EF: 3 ES: ES: 3 EF: EF: 4 4 5 ES: 4 EF: 5 Task B Task C Task B Task D C Task Task D 1d 1d 1d 1d 1d 1d LS: 2 LF: 3 LS: 3 LS: 2 LF: 4 LF: 3 LS: 4 3 LF: 5 4 LS: LF: LS: 4 LF: 5 ES: 1 EF: 2 ES: 2 EF: 4 ES: 2 EF: 4 ES: 5 EF: 6 ES: 5 EF: 6 Task A Task E Task E Task F Task F 1d 2d 2d 1d 1d LS: 1 LF: 2 LS: 3 LF: 5 LS: 3 LF: 5 LS: 5 LF: 6 LS: 5 LF: 6 Release Date Lakeway T E C H N O L O G I E S Friday, January 8, 2010
  47. 47. Task Send process charts back to client Prioritize by Marginal Value Send message to Rob Log time Attend PM status meeting Reply to Vitaliy Add splash video to homepage Reply to Derrick Reply to Pete Send note to MIke at FEI Go through slides and take notes Prepare for BSD PM training workshop Submit invoice Rewrite “5 Principle for Project Success” as a blog post Finish up Frontier RC2 Add table of contents to workshop doc Revise workshop slides Transcribe notes from BSD training Take notes on Steve Johnson talk $/d Read through marketing document Create templates for Lakeway material Send check to SAO Send report and slides to client Move Frontier sources to git + Get nginx running ES: 2 EF: 4 Revise BSD report Create graphviz gem for Ubuntu Task E 2d Schedule meeting with Tom next week Read “SPIN selling” LS: 3 LF: 5 Send message to George about pricing Revise product positioning matrix Prepare for meeting with Tom Display only frontier tasks in urgency/value chart Revise license agreement for Frontier Prepare for case study questions Set up interview with Tyler Draft Frontier user manual Draft case study report Reply to Ed Send Rob podcast from HBR on selling Add Marcom material to git Send Ed the PM workshop slides Pay Regence bill Set up monit Set up new business cards Create Hyper-V version of Frontier Finish going through Flash training Set up demo version of Frontier Draft post on the value of a positioning matrix Lakeway Add testimonials to homepage Get permission to use quotes Set up demo with Curt Set up Frontier server T E C H N O L O G I E S Revise Technical Consulting agreement Review entrants for Itanium awards Friday, January 8, 2010 Check graphviz tests
  48. 48. Property #1: This can be automated Scenario: Product priorities change due to market event Market change! Product Manager Mtg Marketing/Engineering Mtg New assignment! Project Meeting Program Manager Mtg Lakeway T E C H N O L O G I E S Friday, January 8, 2010
  49. 49. Property #1: This can be automated Scenario: Product priorities change due to market event Market change! Product Manager Mtg New assignment! Lakeway T E C H N O L O G I E S Friday, January 8, 2010
  50. 50. Property #2: Integrates info in all directions Scenario: A task will take longer than expected Hmmm...release date changed Product Manager Mtg Marketing/Engineering Mtg Task got bigger... Project Meeting Program Manager Mtg Lakeway T E C H N O L O G I E S Friday, January 8, 2010
  51. 51. Property #2: Integrates info in all directions Scenario: A task will take longer than expected Hmmm...release date changed Task got bigger... Lakeway T E C H N O L O G I E S Friday, January 8, 2010
  52. 52. Summary Multi-tasking is bad Single-tasking requires task value KEY INSIGHTS 1. Value of time is crucial 2. Dependencies matter Value-based scheduling automatically prioritizes tasks by value Lakeway T E C H N O L O G I E S Friday, January 8, 2010
  53. 53. Hot o the pre ! Lakeway T E C H N O L O G I E S Friday, January 8, 2010
  54. 54. Hot o the pre ! Work overload has become the norm Prioritize ruthlessly Stop working on projects with the least return What needs to get done now? What can wait until later? Lakeway T E C H N O L O G I E S Friday, January 8, 2010
  55. 55. Lakeway T E C H N O L O G I E S Rino Jose r.jose@lakeway-tech.com 408-518-0489 www.lakeway-tech.com Friday, January 8, 2010

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