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AAF'16 Hyderabad | Prioritizing Portfolio Backlogs

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Session by Stephen Mayner on “Scaled Agile”

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AAF'16 Hyderabad | Prioritizing Portfolio Backlogs

  1. 1. Prioritizing Portfolio Backlogs to Maximize Value Using Multi-Criteria Decision Analysis Stephen Mayner Senior SAFe® Program Consultant Scaled Agile, Inc.
  2. 2. SAFe® Senior Program Consultant Scaled Agile, Inc. steve.mayner@scaledagile.com @stevemayner stevemayner #aafhyd #SAFe #WhereIsART
  3. 3. OUR HIGHEST PRIORITY IS TO SATISFY THE CUSTOMER THROUGH EARLY AND CONTINUOUS DELIVERY OF VALUABLE SOFTWARE. Agile Manifesto, Twelve Principles AGILEMANIFESTO.ORG/PRINCIPLES “ ” (The Lodgeat Snowbird Ski Resort, where Agilewas born…)
  4. 4. what is Things only have the value that we give them. Molière 1622-1673
  5. 5. Stock price Market share Capitalization ROI EPS
  6. 6. shareholder
  7. 7. Ethics Fair Trade Environment Volunteerism Local Growth Human Rights
  8. 8. social
  9. 9. Filling unmet …jobs …pains …gains Cost effective Differentiated
  10. 10. customer
  11. 11. Safety Pay & Benefits Opportunity Learning Networking
  12. 12. employee
  13. 13. Collaboration Innovation Volume Integration Analytics
  14. 14. supplier/partner
  15. 15. Business ValueShareholder Value Social Value Customer Value Employee Value Supplier/ Partner Value Learning Org. Agility Innovation Internal Systems
  16. 16. How do leaders know which indicators of business value to follow in order to achieve the desired business outcomes? Schwartz, M. (2016). The art of business value. Portland, OR: IT Revolution
  17. 17. They don’t. Schwartz, M. (2016). The art of business value. Portland, OR: IT Revolution
  18. 18. They have a hypothesis. Schwartz, M. (2016). The art of business value. Portland, OR: IT Revolution
  19. 19. scaledagileframework.com
  20. 20. scaledagileframework.com
  21. 21. scaledagileframework.com
  22. 22. scaledagileframework.com
  23. 23. Billing Trigger: Customer order Shipping/ TrackingCRM Operational Value Stream (Example: Order processing) People who operate the systems Systems: Value: Order delivered
  24. 24. #1-Take an economic view #2-Apply systems thinking #3-Assume variability; preserve options #4-Build incrementally with fast, integrated learning cycles #5-Base milestones on objective evaluation of working systems #6-Visualize and limit WIP, reduce batch sizes, and manage queue lengths #7-Apply cadence, synchronize with cross-domain planning #8-Unlock the intrinsic motivation of knowledge workers #9-Decentralize decision-making
  25. 25. If you only quantify one thing, quantify the —Donald G. Reinertsen, Principles of Product Development Flow
  26. 26. weighted-shortest job (WSJF) Reinertsen, D. (2012). The principles of product development flow: Second generation lean product development. Redondo Beach, CA: Celeritas Publishing
  27. 27. +timecriticality+riskreduction- Jobsize Reinertsen, D. (2012). The principles of product development flow: Second generation lean product development. Redondo Beach, CA: Celeritas Publishing
  28. 28. Quantifying the businessvalue
  29. 29. Multi-Criteria Decision Analysis (MCDA) …a general framework for supporting complex decision- making situations with multiple and often conflicting objectives that stakeholders groups and/or decision-makers value differently Belton, V., & Stewart, T. (2002). Multiplecriteria decision analysis: An integrated approach. Springer. Multiple stakeholders Structured decision alternatives Facilitatedecision dialogue Quantify categorical criteria Unify plural value dimensions
  30. 30. Step #1 Programportfoliomanagementteamdetermines describingbusiness value
  31. 31. Launch NextGen Product Reduce operating costs Ensure compliance Decrease employee turnover Increase customer satisfaction Reduce carbon footprint
  32. 32. Step #2 Programportfoliomanagementteamdetermines Quantifyingbusiness value
  33. 33. 5 – directly enables product to go to market 4 – direct precursor to releasing product to market 3 – strongly improves ability to launch 2 – moderately improves ability to launch 1 – nominally improves ability to launch 0 – no relationship to launching the nextgen product Scoringdefinition example
  34. 34. 5 – required to comply with regulations, laws, directives 0 – not required for compliance Scoringdefinition example For this decision analysis technique, an ordinal scale (Likert) is more appropriate than interval scale (Fibonacci)
  35. 35. Step #3 Programportfoliomanagementteamdetermines Quantifyingbusiness value
  36. 36. launch nextgen product reduce operating costs ensure compliance decrease employee turnover increase customer satisfaction reduce carbon footprint weighting example
  37. 37. Step #4 Programportfoliomanagementteambuilds Putting it alltogether
  38. 38. Criteria Weight Scoring Definitions Raw Score Weighted Score Launch NextGen Product 30% 5 – directly enables product to go to market 4 – direct precursor to releasing product to market 3 – strongly improves ability to launch 2 – moderately improves ability to launch 1 – nominally improves ability to launch 0 – no relationship to launching the nextgen product 3 9 Cost Savings 20% 5 – Immediate AND >=$100M 4 – Within 1 year AND >=$25M 3 – Within 2 years AND >=$10M 2 – Within 3 years AND >=$1M 1 – Within 5 years OR >= $100K 0 – No cost savings 4 8 Compliance 20% 5 – Required to comply with regulations, statutes, directives 0 – Not required for compliance 5 10 Decrease employee turnover 10% 5 – Directly reduces turnover >=25% 4 – Directly reduces turnover between 18% to 24% 3 – Directly reduces turnover between 10% to 17% 2 – Directly reduces turnover between 1% to 10% 1 – Indirectly reduces turnover 0 – No connection to employee turnover 2 2 Increase customer satisfaction 10% 5 – Provides a top 5 most requested product capability 4 – Provides a top 50 most requested product capability 3 – Directly resolves a top 5 most commonly reported issue 2 – Directly resolves a top 50 most commonly reported issue 1 – Provides unrequested product/service enhancement 0 – No connection to customer satisfaction 4 4 Total Value Points 33Apply to epics, enablers, capabilities, features
  39. 39. Use modified planning poker with numbered cards 0 – 5 to achieve consensus
  40. 40. +timecriticality+risk Jobsize
  41. 41. +timecriticality+riskreduction Jobsize
  42. 42. Storypoints
  43. 43. NextGen Product Cost savingsComplianceEmployee turnover Customer satisfaction Carbon footprint Total Value Points Story Points WSJF Weighting 3 4 5 2 1 4 Epic 6 5 5 4 4 2 4 81 1800 0.045 Epic 5 2 1 2 2 1 1 29 750 0.039 Epic 1 3 3 1 2 2 2 40 1500 0.027 Epic 2 2 3 5 4 3 3 66 3000 0.022 Epic 4 0 1 3 1 1 4 38 2000 0.019 Epic 3 0 1 5 2 2 4 51 4500 0.011
  44. 44. 0 10 20 30 40 50 60 70 80 90 100 1 2 3 4 5 6 7 8 9 10 11 12 Program Increments Value Burnup Chart Value Points
  45. 45. Consistent Fair Defensible Understandable Measurable
  46. 46. 46 Gain the Knowledge Explore the SAFe® knowledge base and find free resources at: ScaledAgileFramework.com Leading SAFe® 4.0 with SA Certification Implementing SAFe® 4.0 with SPC4 Certification Find SAFe® training worldwide at: ScaledAgile.com
  47. 47. Questions?

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