Projects are too often prioritized based on opinions and politics. Use the Lean Canvas & Business Value Game for rigorous prioritization -- or SEQUENCING of projects. Learning Objectives: How to use the Lean Canvas to articulate critical project parameters How to use the Business Value Game to achieve consensus on project priorities / sequencing

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Better Portfolio
Prioritization with the
Lean Canvas
Brad Swanson, CSC, CST®
brad.swanson@agile42.com
@bradswanson
Mike Caspar, CSP, Senior Agile Coach
mike.caspar@agile42.com
@mikecaspar
http://www.agile42.com/en/blog/

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agile42
The
Agile
Coaching
Company.
agile42 is a market leader in providing agile transformation services to companies
looking to adopt a more efficient and adaptive way of working.
By continually refining our approach, agile42 has developed a unique and proven
framework for supporting organizations in realizing the benefits of a agile & lean
practices. We provide assessment, strategic consulting, training, and coaching to get
you results. Our customers regularly confirm that they achieve:
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Photo: Rory Mizen
Highest
Paid
Person’s
Opinion

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1.
Problem
top
3
problems
Exis2ng
alterna2ves
4.
Solu2on
top
3
features
8.
Key
metrics
e.g.
AARRR
3.
Unique
value
proposi2on
Clear
compelling
message.
Why
makes
you
different?
2.
Customer
segments
Target
customers
Early
adopters?
9.
Unfair
advantage
Not
easily
copied
or
bought
5.
Channels
Path
to
customers
7.
Cost
Structure
Customer
acquisi2on,
distribu2on,
people,
etc.
6.
Revenue
streams
Revenue
model,
life
2me
value,
revenue,
gross
margin
Lean Canvas: Ash Maurya
Lean
Canvas,
from
Ash
Maurya:
Running
Lean.
Licensed
under
Crea2ve
Commons-­‐AVribu2on-­‐Share
Alike
3.0
Product Market

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Problem
Top
3
problems
Exis2ng
/
alterna2ve
solu2ons
Customer
segments
Early
adopters?
Success
metrics
Leading
and
lagging
indicators
Possible
solu2ons
Key
features
&
benefits
for
customers
&
business
Business
readiness
What
is
needed
to
deploy
and
support
the
solu2on?
(Staff,
budget,
training,
systems,
support,
opera2ons
dependencies
on
projects/
vendors)
Channels
Path
to
customers
Costs
People,
training,
capital,
marke2ng,
etc.
+
Objec2ve
jus2fica2on
Business
value
1.
User
&
business
value
2.
Cost
of
Delay
(urgency)
3.
risk
reduc2on/opportunity
enablement
+
Objec2ve
jus2fica2on
Lean Project Canvas
ProductMarket
Cost
of
delay
time
linear
delaycost
1,2,3,5,8,13,21 1,2,3,5,8,13,21
<Title
/
headline>

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time
linear
delaycost
time
must do now
delaycost
time
logarithmic
delaycost
time
intangible
delaycost
Cost of Delay is the cost we incur by delaying delivery of a product, due to lost
revenue or unrealized cost savings.
Cost of Delay profiles
time
fixed date
delaycost
Kenny Rubin: Essential Scrum

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42 Investment Group: building a luxury resort hotel
Goals:
• Luxury
amenities &
activities
• Destination
hotel
• Repeat
customers
• Profitable in
1st year
https://www.flickr.com/photos/28685147@N04/

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Portfolio of Projects / Features
• 18 hole golf course
• Jacuzzi tubs in guest rooms
• Valet Parking
• Free internet access
• On-site tailor shop
• Child care centre
• Pet spa
• Mini golf
• Bungee jumping tower
• Full service spa
• Healing mud baths
• Swim with dolphins
• Concierge service
• Live music nightly
• Amusement park & roller
coaster
• Themed guest rooms

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Activity 1: Build a Lean Project Canvas
• Choose 2 projects from this list at each table
• Write a lean canvas for each, working in groups of 3-4
• Problem/opportunity & existing alternatives
• customer segments
• possible solution
• business value
• cost of delay profile

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Estimate the relative value of projects in a portfolio
100 200 500 800 1200 2000 3000

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Activity 2: Business Value Game
•Play the Business Value Game: your 2 Canvases + 4 samples
•Arrange blue cards from smallest to largest value
•Arrange canvases as shown in the sample here
•Write the business value number on each Canvas
100 200 800 1200 2000 3000
1200
1200 2000200
200

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ROI calculation & project sequencing
Project Relative Value
Relative Effort
(cost)
Relative R.O.I. Sequence?
A 1200 3 400
B 800 3 267
C 2000 8 250
D 3000 40 75

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Activity 3: Determine how to sequence projects
• Write the Cost number on each canvas (handout)
• Calculate Relative ROI for each canvas. Write it on
each canvas
• ROI = Value / Cost
• Sequence projects based on ROI (high to low)
• Consider Cost of Delay profile: does this change
the sequence?

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ROI calculation & project sequencing
Project
Relative
Value
Relative
Effort (cost)
Relative
R.O.I.
CoD Sequence?
A 1200 3 400
B 800 3 267
C 2000 8 250
D 3000 40 75

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Finally
1agile42 2Innovation Games® 3Dean Leffingwell: Agile Software Requirements
Whatever works best for your situation!
Not….

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Photo: Rory Mizen
Highest
Paid
Person’s
Opinion
No
HiPPOs
allowed !
http://www.agile42.com/en/blog/2015/04/30/scrum-gathering-phoenix-2015-sessions/
Brad Swanson, CSC, Senior Agile Coach
brad.swanson@agile42.com
@bradswanson
Mike Caspar, CSP, Senior Agile Coach
mike.caspar@agile42.com
@mikecaspar

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Reference Section: The process steps for
sequencing projects

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Process for Sequencing Projects
1. Stakeholders and Product Owners prepare canvases.
Optional: limit number per stakeholder
2. Review & validate canvases for completeness &
understanding - ahead of time
3. Select appropriate group of voting stakeholders and a
neutral facilitator
4. Brief “sales pitch” for each project, based on the canvas

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Process for Sequencing Projects (2)
6. Choose a baseline project/canvas, assign it a mid-range
point value. Can shift up/down later if necessary.
7. Business Value GameTM,1; assign the relative value of
each project, without considering cost/effort
1agile42 2Innovation Games®
Alternative to Biz Value Game: Buy a Feature / Prune the Product Tree 2

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Process for Sequencing Projects (3)
8. Delivery teams estimate cost/effort.
9. Calculate relative ROI: value / cost
10.Sequence projects, and/or allocate investments:
1. ROI
2. cost of delay
3. people and/or resource constraints