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Rubber Meets the Road

Session will have different aspects of the Agile Portfolio Management.

Session is for Lean Agile Leaders which will help them manage portfolio Agile way. Lean Agile principles when applied to portfolio management, will help you keep pace with fast changing business by giving you a disciplined approach to implementing you strategic vision as realistic work plan.
Keeping up with the new pace of change requires light weight processes and an adaptive mindset. It will cover the following main pillars of Agile Portfolio Management:

Work Management
Capacity Management
Financial Management
Value Management
Continuous planning
Continuous Visibility
APM session will help you look at the portfolio in different way; and help you outpace changing business.

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Rubber Meets the Road

  1. 1. RUBBER MEETS THE ROAD Alhad Akole 1st – 3rd December, 2017 | Westin, Hyderabad, INDIA All opinions mentioned in the talk are my own and not representative of my organization
  2. 2. Standard Disclaimer • Royal Dutch Shell plc • Royal Dutch Shell plc is incorporated in England and Wales, has its headquarters in The Hague and is listed on the London, Amsterdam, and New York stock exchanges. Shell companies have operations in more than 100 countries and territories with businesses including oil and gas exploration and production; production and marketing of Liquefied Natural Gas and Gas to Liquids; manufacturing, marketing and shipping of oil products and chemicals and renewable energy projects. For further information, visit • Disclaimer statement • This announcement contains forward-looking statements concerning the financial condition, results of operations and businesses of Royal Dutch Shell. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements are statements of future expectations that are based on management’s current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements. Forward-looking statements include, among other things, statements concerning the potential exposure of Royal Dutch Shell to market risks and statements expressing management’s expectations, beliefs, estimates, forecasts, projections and assumptions. These forward-looking statements are identified by their use of terms and phrases such as ‘‘anticipate’’, ‘‘believe’’, ‘‘could’’, ‘‘estimate’’, ‘‘expect’’, ‘‘intend’’, ‘‘may’’, ‘‘plan’’, ‘‘objectives’’, ‘‘outlook’’, ‘‘probably’’, ‘‘project’’, ‘‘will’’, ‘‘seek’’, ‘‘target’’, ‘‘risks’’, ‘‘goals’’, ‘‘should’’ and similar terms and phrases. There are a number of factors that could affect the future operations of Royal Dutch Shell and could cause those results to differ materially from those expressed in the forward-looking statements included in this Report, including (without limitation): (a) price fluctuations in crude oil and natural gas; (b) changes in demand for the Group’s products; (c) currency fluctuations; (d) drilling and production results; (e) reserve estimates; (f) loss of market and industry competition; (g) environmental and physical risks; (h) risks associated with the identification of suitable potential acquisition properties and targets, and successful negotiation and completion of such transactions; (i) the risk of doing business in developing countries and countries subject to international sanctions; (j) legislative, fiscal and regulatory developments including potential litigation and regulatory effects arising from recategorisation of reserves; (k) economic and financial market conditions in various countries and regions; (l) political risks, project delay or advancement, approvals and cost estimates; and (m) changes in trading conditions. All forward-looking statements contained in this presentation are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. Readers should not place undue reliance on forward-looking statements. Each forward-looking statement speaks only as of the date of this document, (2-Dec-2017). Neither Royal Dutch Shell nor any of its subsidiaries undertake any obligation to publicly update or revise any forward-looking statement as a result of new information, future events or other information. In light of these risks, results could differ materially from those stated, implied or inferred from the forward-looking statements contained in this document. • The United States Securities and Exchange Commission (SEC) permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. We use certain terms in this presentation, such as “oil in place" that the SEC's guidelines strictly prohibit us from including in filings with the SEC. U.S. Investors are urged to consider closely the disclosure in our Form 20-F, File No 1-32575 and disclosure in our Forms 6-K file No, 1-32575, available on the SEC website You can also obtain these forms from the SEC by calling 1-800-SEC-0330.
  3. 3. In Nutshell …
  4. 4. Solving Agile Puzzle
  5. 5. What is Agile? Agile Manifesto Individuals and interactions over processes and tools Working software over comprehensive documentation Customer collaboration over contract negotiation Responding to change over following a plan
  6. 6. Scrum In A Nutshell Marketable Features (MMF)Collaborative Feedback Multiple small iterations TEST EARLY & OFTEN Production ready systemContinuous Integration Increase in ROI Improve Productivity and Quality Faster Time to Market
  7. 7. How We Work? 18-01-20187
  8. 8. Agile Portfolio Management Why Agile Portfolio Management is important?
  9. 9. Why Portfolio Level Management? Are We Working On The Right Things? When Will These Features Or Projects Be Delivered? Lack Of Visibility? Poor Release Planning? Inconsistent Cost Tracking? Risk of Strategic Misalignment?
  10. 10. How To Survive Disruption? “We can’t solve problems by using the same kind of thinking we used when we created them” - Albert Einstein  Embrace a Lean-Agile mindset  Implement Lean-Agile practices  Lead the implementation  Get results
  11. 11. What Executives Do Differently? Learn Fast Pivot Early Driven By Vision Systems Thinking Embrace Lean Value Focused One Team, One Goal Relentless Improvement- Inspect & Adapt Decentralized Decision Making Lead The Change
  12. 12. Visibility Requirement Agile work Portfolio Program Team Agile Team SM/PO PMO Director Exec Mgmt. Stakeholders •Sense and respond to change Business •Optimize for Business ValuePortfolio •Deliver Value FasterDelivery Air sandwich
  13. 13. Focus Areas of Management Vs Agile Teams Category Executive Management Agile Teams Execution Style “What” To Do “How” To Do It Objective Strategic Alignment & Meeting Business Needs Responding Quickly to Market Planning Predictive & Prescriptive Iterative & Incremental Roadmap & Release Visibility 2 to 4 Quarters (~ 6 to 12 Months) 2 Sprints (~ 4 Weeks Out) Terminology Timelines • Roadmaps • Priorities Release Dates • Strategy • Alignment User Stories • Epics • Velocity Story Points • Tasks • Sprints Desires Quicker Time-To-Market • Reduced Costs • Higher Product Quality
  14. 14. Portfolio Management For Adaptive Mind-set
  15. 15. Lean And Agile At Rescue • Adaptive mindset and light-weight processes • Lean and Agile practices are increasingly helping on this front • Create Realistic, High level execution plans in support of strategy changes • Quickly reallocate teams to optimize business value as new opportunities arise • Apply funds at right place fast enough to be effective • Foster organization’s capability to deliver faster Portfolio Planning Portfolio Performance (Strategy meets Execution) Value Manageme nt Work Manageme nt Capacity Manageme nt Financial Manageme nt Feedback Feedback Demand Value Creation Supply Constraint
  16. 16. Portfolio Mindset Shift Scheduled Focused Value Focused Project Funding Incremental Funding Large Upfront Planning Continuous Planning Allocate FTEs To Projects Allocate Features To Teams Risks And Returns Time To Market Legacy Mindset Adaptive Minded Focus on planning and tracking work for Value Creation, judge infinite demand, limited capacity, financial constraints
  17. 17. What is required for Adaptive Mindset? Portfolio Management Value Management Portfolio Demand Capacity Management Where Value Creation Happens Financial Management Money Matters And Constrains Plans Work Management Matches Portfolio Supply With Portfolio Demand
  18. 18. Benefits Of Agility at Portfolio Level Create Realistic, High-level Execution Plans In Support Of Strategy Changes Quickly Reallocate Teams To Optimize Business Value As New Opportunities Arise Apply Funds To The Right Places Fast Enough To Be Effective Foster Your Organization’s Ability To Deliver Value Faster
  19. 19. As a Result: you’ll Increase Your Investment Returns Decrease Time To Market Deliver What Your Customer Wants Make Better Decisions Going Forward
  20. 20. Value Management
  21. 21. Value Management Value Over Requirements To mitigate disruption, Organizations need to be disciplined in determining the value they want to deliver and saying “no” to requirements that have no validated value attached to them. “If you only quantify one thing, quantify the cost of delay.” Don Reinertsen, The Principles of Product Development Flow
  22. 22. What is Value? Value Cost Saving New Revenue Complian ce Customer Satisfacti on Employee Happines s Stakehold er Value Revenue Retention  How do you reliably define Customer Value?  How do you measure value created by Organization?  What Value Metrics should be used? We can reliably measure Value! Business Value- Product Owners Product Managers
  23. 23. Economic Framework For Decision Making Cost Of Delay Minimum Viable Product (MVP) Deliver Early MBSE Value Stream Mapping Cycle time Cost Value Development Expense Risk
  24. 24. Work Management Work management is where value creation happens
  25. 25. Work Management Work Management is where value creation happens; where rubber meets the road between demand (value) and supply (Capacity) Business As Usual Keep the Lights On Accomplish the tasks Value Delivery Outcome Based IP Differentiating Value BAU/KLTO Innovation Design Thinking Hackathons Customer Experience
  26. 26. Portfolio Agility “The core value proposition for portfolio management tools supports balancing demand to maintain the velocity needed for continual delivery.” The Forrester Wave™: Portfolio Management for the Tech Management Agenda, Q1 2015; Forrester Research, Inc. 49% 19% 9% 15% 8% PORTFOLIO- WORK MANAGEMENT Experiments Differentiation Neutralization Productivity Waste Portfolio agility can make a tremendous difference in helping teams deliver value faster by optimizing utilization and value-based delivery, rather than maximizing utilization and forcing too much work in process.
  27. 27. Follow The Work, Not The Workers • Focus on smaller batches of work to get early feedback • Small batches also gives freedom to pivot to more important work Smaller Batch Size • Retain Knowledge workers by fostering innovation work. • Schedule Hackathons on regular basis Schedule Innovation Time • Focus on the highest value work for your current initiatives • Have the courage to stop work no longer valuable or adjust current work to be more valuable Optimize work allocation for value • Stop Starting and Start finishing to maximize flow of value.Limit WIP • Continuous delivery (aided by DevOps) enables faster benefits of realization. Build a continuous delivery capability
  28. 28. Decentralize Decision Making “In order to make informed decisions, data has to be accurate and up to date.” Forrester Research, Inc. • Decentralizing many decisions to the people closest to the work. • But need centralized tool for decision making – like JIRA, VersionOne, Rally, etc. • Make Clear the need to see across all teams so teams know that their efforts will lead to higher business value • Adequate slack time can be scheduled to foster innovation • A single system of record to define all levels of value and to track value creation- Planning to execution view to give value creation status in real time
  29. 29. Capacity Management Modern capacity planning
  30. 30. Follow The Work, Not The Workers #Source CA Portfolio Management • Nurture your people to protect your innovation potential • Autonomy, mastery and purpose (Nice to see video - ”RSA ANIMATE- Drive- The surprising truth about what motivates us”) • High Employee Engagement, meaningful, rewarding work
  31. 31. Modern Capacity Planning Team as the Resource Unit Roughly Right Continuous Planning Cadence Matching Supply to Demand Tolerance for Incomplete Data
  32. 32. Team As The Resource Unit A cross-functional team that can deliver entire features without dependencies on other teams. Feature Team Teams that build domain services and tools in support of feature teams. Component team Many organizations have specialists or experts in domains like user experience (UX), DBA, architecture and data science. Expert Team Types Of Teams: MorePreferred
  33. 33. Roughly Right Principle  Match level of precision and confidence with planning horizons  Compare capacity (supply) and value (demand)  Centralize decision making- Long last decisions  De-centralize all other decisions  Frequent decision  Time critical decision  Requiring local information  Teams need both the authority and accountability to plan at a more refined level Any inefficiency of decentralization costs less than the value of faster response time —Principles of Product Development Flow, Don Reinertsen Requirements complete Design complete Planned deploymentPoint solution Actual Solution No time to fix
  34. 34. Continuous Planning Cadence Business strategy (3–5 years) Long-range business commitments (1–3+ years) Forecasting and budgeting (12–18 months) Prioritization and value delivery IT/Engineering (<3 months–9 months) Each planning cadence has different decision-making focus Quarterly planning cadence better hits targets  Shift From once-a-year event to Quarterly Planning  Revisit business commitments, forecasting and budgeting decisions  Useful for Prioritization and value delivery planning
  35. 35. Matching Demand To Supply Value network: matching supply delivery streams to demand business value streams  Value Systems represent how E2E scenarios of delivering Value to customers and stakeholder, collaborating with them to create differentiating solutions  In an Enterprise, it can be complex system involving multiple business units- new capacities, enhancements, changes, or just fixes  Visualizing a value network exposes interactions across projects, programs to better match supply and demand  Initiatives, features helps connect network  Visualizing a value network by separating delivery streams from business value streams makes utilization of available supply much clearer
  36. 36. Tolerance of Incomplete Data  The cost of delay can be so high that you have no choice but to get comfortable with operating on good- enough data.  Leader to strive for Making Roughly Right Decisions using imperfect information  Cadence based planning helps uncertainty tolerable  Opportunity for frequent Inspect & Adapt Demand-side tolerance Supply-side tolerance
  37. 37. Financial Management Funding innovation and agile capitalization principles
  38. 38. • Development team • Code base • Application technology stack Funding Innovation And Agile Capitalization Principles Innovation is no longer optional and should be treated like other strategic investments. Limitations of traditional approaches • Funding Project for duration of project/ program Traditional Project or Program • Business outcome • Funded cost • Target date • Development team • Code base • Application technology stack • Business outcome • Funded cost • Target date • Decide Investment Strategy each year Vs Area of Business • The shift is to allocate budget portions to capacity (aka stable teams and delivery groups) rather than to projects • Smaller batches & continuous planning cadences • Funds are tied to mostly fixed capacity • Educated CFOs can increase their CAPEX/OPEX ratio when projects are done using agile practices. Managed for long- and short-term lifecycle benefits; may support other projects/programs now and in the future
  39. 39. Agile Portfolio Management Benefits
  40. 40. Agile + Portfolio Management Benefits Keep Everybody Aligned with Organizational Priorities Create a Pre- Backlog to Keep Everyone on the Right Path Track Time and Costs Consistent Reporting for All Projects Get a Single Source of Truth Consolidate Resource Planning and Management Increase Strategic Alignment Better Visibility and Planning Accurate Cost Tracking Detailed Resource Planning and Management Consistent Reporting and Metrics
  41. 41. Goal Without Plan Is A Wish List Do you struggle determining what matters most? Do you find it hard to say “no?” Are you delivering value at a satisfactory rate? Are you limiting WiP to accelerate value delivery? Are all your teams working in alignment with strategic objectives? Are you getting full and accurate visibility into the work? Can you quickly detect which teams can be reallocated to new opportunities? Establish Flow Deliver Value Build Capability
  42. 42. Q & A
  43. 43. References: 1 “Fighting The ‘Air Sandwich’: Aligning For Success,” Jim Kalbach 2 “The Principles of Product Development Flow,” Don Reinertsen 3 Tuckman’s stages of group development 4 The Impact of Agile Quantified, CA Technologies 5 “Why Agilists Should Care About Capitalization,” Dan Greening 6. Agile Portfolio Management, White Paper – CA Technologies 7. Thank You
  44. 44. Alhad Akole Agile Coach, Shell 91 77 55 99 0719 Thank You