NYSE Euronext Lines of business: • Cash Equi@es • Futures/Op@ons • Market Data • Bonds • NYSE Technologies – New division formed in 2008 – Acquisi@ons: • Wombat • AEMS • TransacNools • NYFIX
Discovering the Landscape Revenue is the Priority • What are the organiza@on’s strategic priori@es? • Is there a roadmap? • What ini@a@ves/products/projects to pursue? • What is the ROI or perceived value gained?
Frequent Changes in Leadership Changing DirecOons too oen • Diﬃcult to keep strategic focus • Doubts of job security consistently lingered • Projects were stopped in the middle or even before they really got started • In beginning, technology reported to the business
Fiefdom Challenge Are you one company, or are you ﬁghOng a turf war? • Diﬃcult to leverage synergies between departments • Redundancies on eﬀorts • Wasted budget and @me • Poor management of opportunity costs
Real Assets vs. Fungible Resources View Your People as Assets or Cogs in a wheel? • Retain talent or lose trade secrets to compe@tors • Ramp @me to replace pivotal engineers is enormous • Proﬁtability of a product doesn’t determine the value of a resource
Sell! Sell! Sell! Sell Vaporware?! What are we promising our clients? • Pressured sales teams would commit to things without checking to see if they were available or feasible • BeNer understanding of product/service oﬀerings was needed • Cohesive product ownership between business & technology
First Things – The Basic Mechanics Determining Team Capacity & Quick EsOmaOon
Determining Business Value • 5 – Highest Business Value Biz Value Story/Feature 5 Feature 1.2 • 3 – Medium Business Value 5 Feature 1.3 3 Feature 2.1 • 1 – Low Business Value 5 Feature 2.2 1 Feature 2.3 5 Feature 3.1 3 Feature 3.2 3 Feature 3.3
Determining Business Value Total Business Value = 30 Biz Value Story/Feature 5 Feature 1.2 5 Feature 1.3 3 Feature 2.1 5 Feature 2.2 1 Feature 2.3 5 Feature 3.1 3 Feature 3.2 3 Feature 3.3
Determining Business Value Total Business Value = 30 Biz Value Story/Feature 5 Feature 1.2 Business Value Points Delivered to date = 18 5 Feature 1.3 3 Feature 2.1 5 Feature 2.2 1 Feature 2.3 5 Feature 3.1 3 Feature 3.2 3 Feature 3.3
Determining Business Value Total Business Value = 30 Biz Value Story/Feature 5 Feature 1.2 Business Value Points Delivered to date = 18 5 Feature 1.3 3 Feature 2.1 Percent of Business Value 5 Feature 2.2 Delivered (18/30)= 60% 1 Feature 2.3 5 Feature 3.1 3 Feature 3.2 3 Feature 3.3
Rule of Thumb Total Business Value = 30 Biz Value Story/Feature 5 Feature 1.2 Business Value Points Delivered to date = 24 5 Feature 1.3 3 Feature 2.1 Percent of Business Value 5 Feature 2.2 Delivered (18/30)= 80% 1 Feature 2.3 5 Feature 3.1 From experience once projects reach 3 Feature 3.2 80% of value delivered, serious discussions 3 Feature 3.3 can be had about whether to con@nue or not
Determining Cost Per Feature • Assume resources cost a $100 per hour for a 40 hour work week ($8,000 per resource per 2-‐week itera@on). • This team is comprised of 9 resources (1 PO, 1 SM, 1 BA, 4 DV, 2 QA). – Count all roles – both employee and consultants – directly involved in delivering the project • Team cost is $72,000 per itera@on. • The team produces a 3-‐month moving average velocity of 50 story-‐points per itera@on. • Average Cost Per Point = $1,440 or $4,320 per 3-‐point feature.
Per-‐Project and Per-‐Feature Cos@ng • Total the story-‐points in the Cost Story/Feature EsOmate Backlog $4,000 Feature 1.2 8 • Use the team’s steady-‐state $2,500 Feature 1.3 5 velocity $1,500 Feature 2.1 3 $2,500 Feature 2.2 5 • Story sizes are arbitrary but are speciﬁc to a team and a project $500 Feature 2.3 1 $1,000 Feature 3.1 2 • For more accurate results, bring $2,500 Feature 3.2 5 the work to the team and keep the team stable $500 Feature 3.3 1
Managing Capacity & Eﬀort Project A Project B Project C Project D Project E Queries/Support 1 Queries/Support 2 Performance Total Effort
Using Burndowns for Delivery AND Cost Project OM
Using Burndowns for Delivery AND Cost Project OM
Network & Avoid the Jargon Informally InsOtute the Process • Network and iden@fy the players, the real stakeholders • Establish ad-‐hoc, but regularly mee@ngs with clearly deﬁned objec@ves • Demonstrate the value & results of these mee@ngs
The Business Case Case Type 1: • Expected Development Costs • Proﬁt Margin • Client Desired Delivery Date • Overall Eﬀort • IT’s Proposed Schedule Start • Quarter for which the sale will close Case Type 2: • Rela@ve Risk • Strategic Importance • Iden@ﬁca@on of “Lighthouse” customers • The likelihood of demand
The Product Management Team Leveraging Synergies • Product managers (owners) know their space • A team of product managers builds strategic cohesiveness • Avoid redundancies & maximizing opportuni@es • BeNer focus on strategies
Ideal Agile Portolio Governance Transform project Priori@ze Project (i.e. cut scope or Pipeline by Value change focus) Transform Commit, Kill, Commit Fund the project & Or Transform get out of the way Kill Project is taken oﬀ list or placed at *Reference: Diagram taken from Johanna Rothman’s the boNom Manage Your Project Portolio
Large Enterprise Agile Portolio Governance Concept IniOaOon Planning ExecuOon & Delivery Closure Idea Scope Program Setup Delivering the Beneﬁts Evaluate and Close Program Monthly Final Program Program DeliverablesProgram Team Governance Pack Financials Business Case Business Case Program Program ABC Program Program Monthly Monthly Program Charter Showcase Pack Plan & Schedule Closure Pack Business Case Status PackBusiness PMO Activities PMO Validates PMO Validates PMO Validates PMO Validates & Posts Program & Posts Program Monthly Business Monthly & Posts Program & Posts Program Documents Documents Case Metrics PDM Status Pack Documents Documents Internal Management Repor@ng Site Governance & Gov Meetings Executive Stakeholder Monthly EC MonthlyStakeholders Funding Stakeholder PIR Funding ABC Meeting Program Delivery Confirmation Closure Meeting Meeting Showcase (BC Metrics) Meeting (PDM) Meeting Program Program Program Closure Go No/Go Go No/Go Go No/Go Monthly Go No/Go Program Steering Committee Page 27
Portolio Review & Decisions • Does the project meet the organiza@on’s overall strategy? • What’s been accomplished since the last review? • Where is the project in terms of delivery and value? • What impediments are slowing each team and their associated cost?
In Summary Takeaways: • Demonstrate cost and value • Manage capacity and opportunity cost • Perform agile por*olio management without the jargon
Recommended Reading • Kenny Rubin: Essen@al Scrum • Johanna Rothman: Manage Your Project Portolio
Demonstra@ng Cost and Value Can you answer the following for each of your teams? • What is each team’s velocity (current and historical average)? • What is each team’s capacity for work? • What is the amount of work in progress for each team? • What impediments are slowing each team down and their costs? • How much value has been achieved for each team’s current projects? • What is the total cost to date of each team’s current projects? • What is the future costs for each team’s current projects?
Reviewing a new project proposal When the business presents a new project, all stakeholders need to ask: • How does this project ﬁt within the overall strategy of the organiza@on? • What is the an@cipated revenue/cost savings? • Are there any technologies that can be reused? • What is the priority and value of this project amongst others? • Is there a project team available, with capacity and exper@se?