Agile portfolio management at nyse

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Agile portfolio management at nyse

  1. 1. Agile  Por*olio  Management     at  NYSE       Presented  by:   Gabino  Roche  Agile  2012  –  Dallas,  TX  August  15,  2012  
  2. 2. Core  Message  Large  Enterprise  Por*olio  Management   •  Demonstrate  cost  and  value   •  Manage  capacity  and  opportunity  cost   •  Perform  agile  por*olio  management  without  the  jargon    
  3. 3. Agenda   •  The  Opportunity   •  Challenges   •  First  Things  –  The  Basic  Mechanics   •  Managing  a  Por*olio  by  Opportunity  Costs   •  InsOtuOng  Agile  Por*olio  Governance    
  4. 4. Gabino  Roche  Contact  Info:  •  LinkedIn:  www.linkedin.com/in/GabinoRoche  •  TwiVer:  grochejr  •  JP  Morgan  Chase  Email:  Gabino.M.Roche@jpmorgan.com    •  Maag  Studios  (Mobile  App  Development  Company):     •  Website:  www.MaagStudios.com   •  Email:            groche@maagstudios.com   •  TwiVer:  MaagStudios   •  Facebook:  www.facebook.com/MaagStudios        
  5. 5. The  Opportunity  amid  the  Financial  Crisis  
  6. 6. 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  
  7. 7. 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?  
  8. 8. 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  
  9. 9. 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  
  10. 10. 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  
  11. 11. 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  
  12. 12. First  Things  –  The  Basic  Mechanics  Determining  Team  Capacity  &  Quick  EsOmaOon  
  13. 13. 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  
  14. 14. 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  
  15. 15. 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  
  16. 16. 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  
  17. 17. 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  
  18. 18. 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.  
  19. 19. 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  
  20. 20. Managing  Capacity  &  Effort   Project A Project B Project C Project D Project E Queries/Support 1 Queries/Support 2 Performance Total Effort
  21. 21. Using  Burndowns  for  Delivery  AND  Cost   Project  OM  
  22. 22. Using  Burndowns  for  Delivery  AND  Cost   Project  OM  
  23. 23. 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  
  24. 24. 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    
  25. 25. 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    
  26. 26. 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  
  27. 27. 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
  28. 28. 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?    
  29. 29. In  Summary  Takeaways:   •  Demonstrate  cost  and  value   •  Manage  capacity  and  opportunity  cost   •  Perform  agile  por*olio  management  without  the  jargon    
  30. 30. Gabino  Roche  Contact  Info:  •  LinkedIn:  www.linkedin.com/in/GabinoRoche  •  TwiVer:  grochejr  •  JP  Morgan  Chase  Email:  Gabino.M.Roche@jpmorgan.com    •  Maag  Studios  (Mobile  App  Development  Company):     •  Website:  www.MaagStudios.com   •  Email:            groche@maagstudios.com   •  TwiVer:  MaagStudios   •  Facebook:  www.facebook.com/MaagStudios        
  31. 31. Appendix
  32. 32. Recommended  Reading   •  Kenny  Rubin:  Essen@al  Scrum   •  Johanna  Rothman:  Manage  Your  Project  Portolio  
  33. 33. 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?  
  34. 34. 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?    

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