Intro to Agile Portfolio Governance Presentation


Published on

This webinar will provide guidance on effective ways to conduct Portfolio Management, using our concepts of Agile Governance to simplify and expedite the key decisions. These techniques can applied for Agile, hybrid, and classic plan-driven processes.

Published in: Software

Intro to Agile Portfolio Governance Presentation

  1. 1. Kevin Thompson, PhD, PMP, ACP, CSP, CSM The leader in training and consulting for project management and agile development Introduction to Agile Portfolio Governance
  2. 2. Copyright 2013, cPrime Inc. 22 New at cPrime Comprehensive Portfolio Management Solutions Our Portfolio Kickstart Package includes all of the following – each can also be utilized separately. • Portfolio Assessment and Planning - An Agile Solution Architect configures scaling backlog and Portfolio solution to optimize your organizational structure and culture • Portfolio Training –This course focuses on how to develop Portfolios of business initiatives. • Portfolio Coaching – Experienced Enterprise Agile Solution Architect works with your organization to define Portfolio Processes. • Portfolio Software Integration – We use a complex configuration of Agile software including Innotas and JIRA solutions to support the Portfolio processes put in place by our Agile Architects. © 2013, cPrime Inc. All
  3. 3. Copyright 2013, cPrime Inc. 33 Who is cPrime? ENGAGED FOR YOUR SUCCESS
  4. 4. Copyright 2013, cPrime Inc. 44 RAGE is… © 2013, cPrime Inc. All
  5. 5. Copyright 2013, cPrime Inc. 55 Portfolio Management is… © 2013, cPrime Inc. All
  6. 6. Copyright 2013, cPrime Inc. 66 Before we dive in. Tell us a little about you • What Portfolio Management Topic interests you most? • What is your role? • How would you rate your knowledge of Agile Portfolio Management?
  7. 7. Copyright 2013, cPrime Inc. 77 After the webinar… • We will send directions to collect the PDU you will earn from attending this webinar • We will also send a links to the recorded webinar and presentation slides once they are posted online For more information, visit
  8. 8. Copyright 2013, cPrime Inc. 88 About Our Presenter Kevin Thompson, Ph.D., has a doctorate in Physics from Princeton University, and extensive background in managing software development projects. He specializes in training individuals, teams, and organizations in agile development. Dr. Thompson helps companies make the challenging transition to agile development by working with development teams and business stakeholders to identify their needs, define the right process for the business, determine the steps needed to implement the process, and work through the steps successfully. Dr. Thompson has Project Management Professional (PMP), Agile Certified Practitioner (ACP), Scrum Master (CSM), and Scrum Practitioner (CSP) certifications. Kevin Thompson
  9. 9. Copyright 2013, cPrime Inc. 99 What will You Learn Today? • Basic recipes for Agile Portfolio Management • How to develop business cases • How to estimate ROI • How to make portfolio decisions • How to evaluate Initiative status • This approach incorporates Principles of Agile Governance • Download “Recipes for Agile Governance: The Enterprise Web” from for much more detail
  10. 10. Copyright 2013, cPrime Inc. 1010 Review: Agile Governance Governance: The formalization and exercise of repeatable decision-making practices • Governance = how to decide what to do • Agile Governance is an Agile style of governance • Enables rapid decisions, based on lightweight artifacts developed with minimum effort • Applicable to any process (Agile, Plan-Driven, Hybrid, etc.) Governance Recipe: A mildly prescriptive and customizable technique for making a specific type of decision
  11. 11. Copyright 2013, cPrime Inc. 1111 Review: Levels of Governance • Classic perspective • Project: Temporary endeavor to deliver a fixed scope • Program: Collection of linked projects • Portfolio: Group of Programs/Projects to be managed together • Classic definitions don’t map well to Agile world, but… • Hierarchical organization is still relevant. • Our levels for Agile Governance • Project Level: Refers to work of a single Team, which is a persistent grouping of people • Program Level: Refers to the collaboration between Teams • Portfolio Level: Refers to the development and management of business Initiatives that lead to program- and project-level work
  12. 12. Copyright 2013, cPrime Inc. 1212 Levels of Governance
  13. 13. Copyright 2013, cPrime Inc. 1313 Portfolio Governance Defined • We define Portfolio Governance to be about • Deciding which Initiatives to undertake, and in what order • Deciding whether to continue, modify, or cancel ongoing Initiatives • We will examine how to make these decisions quickly and effectively
  14. 14. Copyright 2013, cPrime Inc. 1414 Portfolio Governance Summary • The Area Product Owner provides draft Business Cases for review in Portfolio Grooming Meetings. Program Managers, technical leads estimate effort and give feedback. • A Portfolio Planning Team, consisting of Portfolio Owner, Area Product Owners, and others, defines and manages the Portfolio. • The Portfolio Owner works with the Portfolio Planning Team in Portfolio Planning Meetings to approve, reject, and schedule Initiatives for implementation • The Portfolio Owner works the Portfolio Planning Team in Portfolio Review Meetings to assess what to do with in-flight Initiatives, based on their value and status • The Portfolio Planning Team conducts Retrospectives to ensure improvement over time
  15. 15. Copyright 2013, cPrime Inc. 1515 The Initiative and its Business Case A Business Case is a document that • Describes the concept and scope of an Initiative • Presents information needed to make decisions about whether or when to execute the Initiative • Decision factors: Value, Return on Investment, Cost, etc. A Business Case should be brief • Purpose is to enable decision-making, not provide comprehensive requirements • Try to get it on one page There is no standard format for a Business Case! • Use any that suits your needs • Incorporate Description, Acceptance Criteria, Decision Factors
  16. 16. Copyright 2013, cPrime Inc. 1616 Example: Description Title Upgrade embedded Agents to V2 Description Each networked medical device contains an Agent program that communicates with remote Administration and Reporting workstations. The large volume of network traffic produced by the Agents in our devices means that no more than fifty devices can be on one network. The upgrade will allow at least 500 devices to share the same network, by using a longer, customizable polling interval, and richer XML-based message formats.
  17. 17. Copyright 2013, cPrime Inc. 1717 Example: Acceptance Criteria Success Criteria 1. System works with at least 500 active devices, 50 monitors, and 5 administrative stations on one local area network 2. Upgraded monitor and admin stations support mix of V2 and earlier Agents in networked devices 3. SysAdmin can set new parameters (polling intervals, logging levels, content of device reports) 4. Agent connection time < 30 seconds after restarts (is now 3 minutes) 5. All 32 device types must have this upgrade
  18. 18. Copyright 2013, cPrime Inc. 1818 Return on Investment • ROI is key driver for investment decisions • ROI = 𝑅 𝐼 • R = Return (some measure of value) • I = Investment (some measure of cost) • The larger ROI, the greater the benefit for our investment • The challenge is in estimating R and I
  19. 19. Copyright 2013, cPrime Inc. 1919 How to Estimate ROI Steps are easy to understand 1. Estimate the Return 1. Total revenues from Initiative 2. Net Present Value 3. Etc. 2. Estimate the Investment 1. Effort 2. Cost 3. Compute ratio Sadly, this is not usually possible
  20. 20. Copyright 2013, cPrime Inc. 2020 Understand the Limits of what is Possible • The Return is composed of many factors • The Investment is composed of many factors • Limitations • All factors are highly uncertain • No factors can be estimated reliably • Most factors cannot be tied to real-world numbers • What is achievable—and sufficient • Understand whether ROI is better or worse for different Initiatives • Express Return as weighted sum of standard factors • Express Investment as weighted sum of standard factors • Define common scale for factors based on relative values
  21. 21. Copyright 2013, cPrime Inc. 2121 Example ROI Calculation 1. Select Return factors • Value-related items • NPV is often WAG 2. Select Investment factors • Cost-related items 3. Select weights for factors • Range: 0—1 4. Select finite Rating scale for factors Weight 1.0 0.5 1.0 Weight 1.0 1.0 Return Factor Net Present Value Urgency Regulatory Compliance Investment Factor Effort to implement Technical Risk Scale Values Fibonacci 0,1,2,3,5,8 NPV=5, Urgency=3, Reg. Compliance = 1, Effort=8, Risk=1 𝑅𝑂𝐼 = 1 × 5 + 0.5 × 3 + 1 × 1 1 × 8 + 1 × 1 = 0.83 Example:
  22. 22. Copyright 2013, cPrime Inc. 2222 Portfolio Backlog • Items in Portfolio Backlog are Business Cases • Items are ranked (sequenced) in order of decreasing ROI • Analogous to Product Backlog in Scrum • Do largest ROI items soonest • Schedule for when bandwidth becomes available • Minimize parallel Initiatives to maximize productivity
  23. 23. Copyright 2013, cPrime Inc. 2323 Tracking and Metrics Burn-Up Chart • Per Initiative • Per Release Relationship between Initiatives and Releases is Many-to-Many R1 R2 R3 I1 I2 I3
  24. 24. Copyright 2013, cPrime Inc. 2424 Decisions about Ongoing Initiatives 1. Continue Initiative • Assumptions valid, progress on track 2. Cut scope • Assumptions valid, but won’t hit planned goals 3. Add scope • Assumptions valid, but ahead of schedule 4. Change scope • Value can be improved with scope changes • Remove as much work as is added! 5. Cancel Initiative • Changes in needs make planned value not worth pursuing, compared to alternatives
  25. 25. Copyright 2013, cPrime Inc. 2525 Roles Area Product Owner • Works with customers, stakeholders to define & prioritize user-facing features • Develops Business Cases for Initiatives • Estimates value factors for Initiatives • Works with Program Manager, others to get effort estimates • Runs Portfolio Grooming Meeting Portfolio Owner • Authority over Initiative selection and prioritization • Reviews Business Cases • Sets ranking of Initiatives • Decides whether to continue, revise, or terminate Initiatives in flight • Runs Portfolio Planning Meeting Program Manager • Ensures cross-Team collaboration is done well • Facilitates effort estimation for Initiatives • Supplies Teams’ schedule, capacity information needed for Portfolio planning
  26. 26. Copyright 2013, cPrime Inc. 2626 Portfolio Grooming Meeting • Purpose Ensure Business Cases are ready for next Portfolio Planning Meeting • When: Bi-Weekly • Who: Area Product Owner (facilitator), Team Product Owners, Business Analysts, Program Managers, Architects, Tech Leads (Dev & QA),… • Agenda • Attendees provide feedback to Area Product Owner on clarity, quality, acceptance criteria, dependencies, ranking, risks of Business Cases • Attendees identify major components, areas of work, “holes” (esp. technical) to be addressed • Follow-up actions • APO revises Business Case • Program Managers gets estimates of work for Initiative, supplies to Area Product owner
  27. 27. Copyright 2013, cPrime Inc. 2727 • Purpose: Approve, Rank, and Schedule Initiatives • When: Quarterly • Who: Portfolio Owner (facilitator), Area Product Owners, Program Managers, others as needed • Agenda The Portfolio Owner discusses new Business Cases with Area Product Owners and Program Managers 1. Area Product Owners clarify details, benefits, investments, risks 2. Portfolio Owner may revise value-related factors (not effort) 3. Portfolio Owner decides which BC’s to add to Portfolio Backlog 4. Group uses tools (such as Decision Matrices) to guide ranking 5. Program Managers provide guidance about when new Initiatives are likely to begin, based on current work status and Portfolio Backlog ranking. Portfolio Planning Meeting
  28. 28. Copyright 2013, cPrime Inc. 2828 • Purpose: Review progress, revise plans • When: Monthly • Who: Portfolio Owner (facilitator), Area Product Owners, Program Managers, others as needed • Agenda • Area Product Owners present status of in-flight Initiatives • All discuss benefits and drawbacks of continuing, revising scope for, or terminating Initiatives • The Portfolio Owner decides what to do with each Initiative Portfolio Review Meeting
  29. 29. Copyright 2013, cPrime Inc. 2929 Retrospective Meeting • Purpose: Learn from experience, and improve • When: Between Portfolio Planning Meetings • Who: Portfolio Owner (facilitator), Area Product Owners, Program Managers, others as needed • Portfolio Owner facilitates, records, enforces time box • Say, 60 minutes total: 30 for recording, 30 for discussion Agenda 1. Review status of work items from previous Retrospective 2. All participants describe  What went well, that we should do again?  What would we like to be better? 3. Specify follow-up actions 1. Prioritize improvements 2. Select top few to address 3. Select owners to drive improvements
  30. 30. Copyright 2013, cPrime Inc. 3030 Which Agile Governance Principles are Used? All of them! 1. Standardization of Recipe Elements 2. Common Role Types 3. Categories of Governance Points 4. “Good Enough” is Good Enough 5. Granularity 6. Definition of Done 7. Handoffs Download “Recipes for Agile Governance: The Enterprise Web” from for much more detail
  31. 31. Copyright 2013, cPrime Inc. 3131 Conclusion • Portfolio-level governance is about • Deciding which Initiatives to undertake, and in what order • Deciding whether to continue, modify, or cancel ongoing Initiatives • Portfolio governance can be conducted with • Roles: Portfolio Owner, Area Product Owner, Program Manager • Ceremonies: Portfolio Grooming, Portfolio Planning Meetings • Artifacts: Business Case, Agile Charter • Tracking and Metrics: Burn-Up Chart • Key insights • Evaluate ROI as ratio of weighted sums of value- and effort- related factors • Estimate factors with coarse-grained relative scale
  32. 32. Copyright 2013, cPrime Inc. 3232 Question & Answer