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Feeding The Agile Beast


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Using Capability Analysis to Prioritize based on Business Value, Risk, and Ability to Execute

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Feeding The Agile Beast

  1. 1. Feeding the Agile Beast<br />Using Capabilities Analysis to Prioritize based on Business Value, Risk and Ability to Execute<br />
  2. 2. What’s up?<br />Massive Computing Power<br />Ubiquitous Network<br />Improved Development Methods<br />Service Oriented Architecture & SaaS<br />
  3. 3. What’s up?<br />CombinedChanges<br />Value Creation<br />Effectiveness<br />We expect to realize dramatic results<br />
  4. 4. But Businesses …Still Don’t Realize the Value<br /><ul><li>Half the projects delivered don’t meet stakeholder expectations (Standish)
  5. 5. CRM fails to deliver the expected ROI 75% of the time (CIO Magazine)
  6. 6. 50% of ERP fail, 25% delivered reduced performance, 54% delivered take more than two years (Forrester Research)</li></li></ul><li>Alistair Cockburn talked about this<br />Agile works-we know how to do small team development<br />But what if the team is building the wrong things or building to much<br />
  7. 7. Building in the wrong order results in…<br />Increased Risk: Very expensive<br />Rework: Very expensive in cost $ and time<br />Delay: Very expensive in customer happiness, trust, and rev $<br />Missing Important Stuff: very expensive in customer happiness, opportunity cost<br />Redundant Effort: Expensive, difficult to maintain<br />Over-Engineering/Design (YAGNI): Expensive, slow<br />Lack of Testability: Expensive, quality<br />
  8. 8. Part of the Answer<br />Allocate based on<br />Business Value<br />Risk<br />and, Ability to Execute<br />In a way that supports communicating the purpose of the work effectively through development<br />Why is this hard?<br />
  9. 9. The How Trap<br />
  10. 10. Do you see it?<br />
  11. 11. Now you see it!<br />
  12. 12. Process is not the right way to look at the problem<br />Process is “how”, it is the implementation of “what”<br />Process tends to be subjective, which is good at the right time<br />Process doesn’t promote innovation<br />Send a Fax<br />
  13. 13. Easy, and very high impactIdentify the Capabilities<br />Seeing that faxing is not a requirement does three things<br />Transforms the conversation about the outcome<br />It provides a framework to talk about value, performance, and risk<br />The technique can be used to drive more detailed clarity<br />Create Quote<br />Create Quote<br />Create<br />Certificate<br />Draft<br />Quote<br />Receive <br />Request<br />Create<br />Certificate<br />Draft<br />Quote<br />Receive <br />Request<br />Comm.<br />Quote<br />Create<br />Agreement<br />Interface<br />Comm.<br />Quote<br />Create<br />Agreement<br />Send<br />Agreement<br />Send<br />Agreement<br />
  14. 14. Easy, and very high impactPrioritize Capabilities<br />Should I invest in Create Quote?<br />Where should I focus to drive Business Value and Reduce Risk?<br />Business Capability Heat Map<br />Generate Leads<br />Create Quote<br />Create<br />Certificate<br />Draft<br />Quote<br />Receive <br />Request<br />KEY<br />Comm.<br />Quote<br />Create<br />Agreement<br />Send<br />Agreement<br />High Value<br />Medium Value<br />Low Value<br />Low Performing<br />Medium Performing<br />High Performing<br />High Risk<br />Moderate Risk<br />Low Risk<br />
  15. 15. Business Value<br />Is it this capability directly aligned with delivering the product strategy?<br />Focusing Objectives<br />Blitz QFD<br />The Business Value Game<br />Real Options<br />Is this capability key to the companies brand?<br />Generate Leads<br />
  16. 16. Risk<br /><ul><li>Is there technical risk associated with this capability (vendor stability, new technology)?
  17. 17. Is there a compliance requirement or other business risk associated with this capability?
  18. 18. Does changing this capability introduce a lot of dependent changes or risk?
  19. 19. Is there a high cost of delay or market risk with this capability ?</li></ul>Generate Leads<br />
  20. 20. Ability to Execute<br />Do we have the clarity on what we need to build?<br />Do we have the skills to build this available?<br />Generate Leads<br />
  21. 21. Heat Map<br />Business Value Here<br />Risk Here<br />
  22. 22. Summary<br />We have a way to discuss business value, performance, and risk<br />We can retain insight and decision information and set context for everyone<br />We can prioritize up and down and across all stakeholders<br />When the strategy changes, the model is low friction to update<br />
  23. 23. Capability Analysis a proven method<br />Original work documenting a process and techniques …<br />10 years – over 300 applications - $200 million saved<br />
  24. 24. Questions<br />Reach out to Dennis Stevens<br /><br /><br />We also offer<br />Enterprise Agile Coaching<br />Agile Project Management<br />Cost Cutting and Innovation<br />