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Disciplined agile portfolio management


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IT portfolio management is the activity of identifying, organizing, and governing an organizations's various IT endeavours. IT endeavours include solution delivery projects, product development teams, business experiments (along the lines of a lean startup strategy), and even the operations of existing IT based solutions. In this webinar, Scott Ambler addresses these questions: What does it mean to take a Disciplined Agile approach to portfolio management? Why is this different from traditional portfolio management? How does portfolio management fit into your overall IT workflow? What does a Portfolio Manager do? What is the difference between portfolio management, program management, and solution delivery? What are some of the practices of portfolio management? What are the principles for Disciplined Agile portfolio management ?

Published in: Software

Disciplined agile portfolio management

  1. 1. © Disciplined Agile Consortium 1 Disciplined Agile Portfolio Management
  2. 2. Agenda •  What is portfolio management? •  What the guiding principles? •  How does portfolio management fit in? •  The activities of portfolio management –  Initiating IT endeavors –  Funding the IT portfolio –  Overseeing the IT portfolio •  Parting thoughts © Disciplined Agile Consortium 2
  3. 3. © Disciplined Agile Consortium 3 IT Portfolio Management addresses how an IT organization goes about identifying, organizing, and governing their various IT endeavors. Disciplined Agile Portfolio Management seeks to do this in a lightweight and streamlined manner that maximizes the creation of business value in a long-term sustainable manner.
  4. 4. The Principles of Disciplined Agile Portfolio Management © Disciplined Agile Consortium 4 Simplicity Value Reduce Delay Stable Teams Choice is Good Trust Risk Driven Quality Enterprise Aware Keep your approach lightweight and streamlined Focus on value over cost Reduce the cost of delay Improve Invest in streamlining the creation of value Prefer stable teams over project teams Support and enable diversity of approach Trust but verify Govern by risk not by artifacts Invest in quality Optimize the whole Align to Value Align teams to value streams Rolling Wave Prefer rolling wave plans and budgets over annual ones Small is Good Prefer small endeavors over large ones
  5. 5. How does Portfolio Management Fit In? © Disciplined Agile Consortium 5
  6. 6. Strategic Scaling: The Agile IT Department © Disciplined Agile Consortium 6
  7. 7. © Disciplined Agile Consortium 7
  8. 8. © Disciplined Agile Consortium 8 The Activities of
  9. 9. Initiating IT Endeavors © Disciplined Agile Consortium 9
  10. 10. Initiating IT Endeavors: Workflow © Disciplined Agile Consortium 10
  11. 11. Portfolio Management: Identify Potential Value Portfolio management, working with product management, will identify potential IT endeavors (products, projects, experiments, and so on) that address the vision of the long-term business roadmap Options Envision the future Obtain customer feedback Monitor business environment © Disciplined Agile Consortium 11
  12. 12. Portfolio Management: Explore Potential Endeavors Every potential IT endeavor is different, with varying factors such as up front investment, ongoing costs, value generation, and time frames. None of these factors are ever clear, nor are they certain. As a result you need a way to explore your options to enable you to determine which ones to move forward with. Options Run a small experiment Run a focus group Evaluate alternatives Estimate return on investment (ROI) Estimate market impact Develop business case © Disciplined Agile Consortium 12
  13. 13. Portfolio Management: Prioritize Potential Endeavors There are always more opportunities that you can possibly fund, so you must pick the mix of investments which are best for you. Options –  Legislated/regulatory requirement –  Business value –  Risk –  Weighted shortest job first (WSJF) –  Due date –  Dependency © Disciplined Agile Consortium 13 1 2 3 4 5 6 7 8
  14. 14. Portfolio Management: Initiate Endeavors There are different types of IT endeavors that you may choose to initiate. These endeavors need initial funding for their inception/ initiation efforts. Options Experiment team Product (stable) team Project/program team © Disciplined Agile Consortium 14
  15. 15. Funding the IT Portfolio © Disciplined Agile Consortium 15
  16. 16. Funding the IT Portfolio: IT Budgets © Disciplined Agile Consortium 16
  17. 17. Portfolio Management: Plan IT Capability There are three major components to IT capability, often referred to as Plan (which activities such as Portfolio Management, Product Management, and Enterprise Architecture are part of); Build (IT delivery); and Run (IT Operations and Support). Plan tends to be a small portion of the overall budget and is often funded as a necessary overhead. Build tends to be 20-40% of the budget and Run the rest. Options –  Plan IT delivery capability –  Plan IT operational capability © Disciplined Agile Consortium 17
  18. 18. Portfolio Management: Manage Portfolio Budget The overall IT portfolio, including Plan, Build and Run endeavors, must be budgeted for and then funded. The increasing pace of change motivates the flexible budgeting strategies. Options Rolling wave budgeting Stable team budgeting Annual budgeting Ad hoc budgeting © Disciplined Agile Consortium 18
  19. 19. Portfolio Management: Finance Endeavors IT endeavors must be financed. This often includes a combination of initial funding to get a team or project going, or to initially purchase hardware or software, and ongoing funding over the lifetime of the endeavor. Ensuring that your IT investment is well spent is often more important than staying “within budget.” Options –  Provide initial funding –  Provide ongoing funding –  Monitor fund usage © Disciplined Agile Consortium 19
  20. 20. Overseeing the IT Portfolio © Disciplined Agile Consortium 20
  21. 21. Portfolio Management: Manage Vendors Organizations work with external vendors who provide: –  Contracting, consulting, and outsourcing services –  Purchased software (requiring ongoing support services and licensing) –  Pay-as-you go software (including cloud, SAAS, PAAS, …) –  Hardware (requiring ongoing support and leases) Options –  Monitor contracts –  Identify potential vendors –  Award contracts –  Close contracts © Disciplined Agile Consortium 21
  22. 22. Portfolio Management: Govern the Portfolio Portfolio governance is an important part of your overall IT governance strategy that focuses on monitoring and guiding IT investments. Options –  Monitor IT finances –  Monitor delivery teams –  Monitor production systems –  Assess portfolio health –  Develop portfolio metrics –  Develop guidance © Disciplined Agile Consortium 22
  23. 23. © Disciplined Agile Consortium 23
  24. 24. © Disciplined Agile Consortium 24
  25. 25. Strategic Scaling: The Agile IT Department © Disciplined Agile Consortium 25
  26. 26. © Disciplined Agile Consortium 26
  27. 27. Got Discipline? © Disciplined Agile Consortium 27
  28. 28. Shuhari and Disciplined Agile Certification At the shu stage you are beginning to learn the techniques and philosophies of disciplined agile development. Your goal is to build a strong foundation from which to build upon. At the ha stage you reflect upon and question why disciplined agile strategies work, seeking to understand the range of strategies available to you and when they are best applied. At the ri stage you seek to extend and improve upon disciplined agile techniques, sharing your learnings with others. © Disciplined Agile Consortium 28
  29. 29. Scott Ambler + Associates is the thought leader behind the Disciplined Agile Delivery (DAD) framework and its application. We are an IT management consulting firm that advises organizations to be more effective applying disciplined agile and lean processes within the context of your business. Our website is We can help © Disciplined Agile Consortium