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Capabilities based planning

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Capabilities based planning
Capabilities based planning
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Capabilities based planning

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Capabilities‒Based Planning the capabilities needed to accomplish a mission or fulfill a business strategy
Only when capabilities are defined can we start with requirements elicitation

Capabilities‒Based Planning the capabilities needed to accomplish a mission or fulfill a business strategy
Only when capabilities are defined can we start with requirements elicitation

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Capabilities based planning

  1. 1. 1/29 Capabilities‒Based Planning for Enterprise Projects Capabilities‒Based Planning the capabilities needed to accomplish a mission or fulfill a business strategy Only when capabilities are defined can we start with requirements elicitation
  2. 2. 2/29 “End to end” delivery of Enterprise Solutions rests on the keystone of Project Portfolio Management, balanced by a Scorecard and a Capabilities Plan n Business Mission and Vision drives capabilities need n Balanced Scorecard defines the testable strategies for delivering business value n Capabilities Based Planning defines business outcomes n Event based tasks are the basis of increasing capabilities maturity Capabilities Based Planning Project Portfolio Management Balanced Scorecard Strategy E v e n t B a s e d T a s k s B u s i n e s s M i s s i o n A n d V i s i o n “Done” “Demand”
  3. 3. 3/29 The supporting elements must be in place to enable Capabilities Based Planning to succeed. This presentation focuses Capabilities Based Planning n Project Portfolio Management defines the “trade space” for decisions that impact value of the work needed to produce a business capability n Capabilities Based Planning defines business outcomes resulting from these decisions n Deliverables based tasks are the mechanisms for increasing maturity of the capabilities Capabilities Based Planning Project Portfolio Management Balanced Scorecard D e l i v e r a b l e s B a s e d T a s k s B u s i n e s s M i s s i o n A n d V i s i o n “Done” “Demand”
  4. 4. 4/29 Capabilities‒Base Planning transforms enterprise services from the delivery of features and functions to the delivery processes that support strategy n Capabilities Based Planning is planning, under uncertainty, to provide capabilities suitable for a wide range of business challenges and circumstances, while working within an economic framework n Capabilities Based Planning emphasizes flexibility, adaptiveness and robust capabilities, implying a modular building-block approach to Enterprise Services n When transformation takes place, it is because new modules have come into use
  5. 5. Stages of a Capabilities‒Based Plan 5/29 External Guidance Project Priorities Future Environment (Competition, Technology) Deployment Options Business Priorities
  6. 6. 1st Stage of Capabilities Based Planning n The 1st Stage takes an outward‒looking strategic top-down perspective of the demands of the business environment n Capability Goals are statements, in specific measurable terms of the desired level of capability to meet a needed priority or objective n Scenarios built to determine factors that warrant consideration in planning and surface concerns 6/29
  7. 7. 2nd Stage of Capabilities Based Planning n The 2nd Stage takes a bottom‒up view to assess the performance of the current system with respect to capability goals to inform remedial action n Comprehensible identification of capability gaps, including deficiencies and excesses n The final step generates capability options to mitigate gaps and assessment of each option’s cost, schedule, and risk 7/29
  8. 8. 8/29 Capabilities Based Planning is understood at the execution level, but needs to be raised to the level of enterprise process analysis 1. Identify a needed capability in operational requirements terms; 2. using the set of capability options to; 3. assess the effectiveness in an operations paradigm, and; 4. make choices about requirements and ways to achieve the capability using an integrated portfolio framework; 5. to produce of output set of options based on these operational paradigms.
  9. 9. 9/29 Many enterprise projects focus on the delivery of improved features and functions; ignoring the delivery of the capabilities needed to implement strategy Standish Chaos Report Failure Modes Capabilities Based Planning Absence of a clear vision and statement of the requirements expectations Maturity assessment program events provide visibility of progress independent of effort or time Estimating difficulties and organizational politics result in unrealistic expectations Capability assessment points define “done” using agreed on measures of progress Poor project decomposition Master Plan and Master Schedule vertically and horizontally integrated Inadequate staffing Resource loaded schedules Lack of stakeholder involvement Capabilities defined by business needs Lack of strategic focus Capabilities connected to Balanced Scorecard
  10. 10. 10/29 Capabilities Based Planning starts with business scenarios, the tasks needed to implement the scenarios, and testable capability outcomes Scenarios The business unit’s operational needs in scenario terms Merge a General Ledger from a 3rd party database through a data conversation process Work Tasks The individual work processes needed to fulfill the scenarios 1. Define the data to be acquired from the new firm 2. Verify data conversation can take place 3. Verify that business operations can continue Capabilities The planned capability of the Business Units at each level of maturity “Acquire a $100M business unit in 90 days or less” “Process 100% AP invoices from tier 1 vendors saving $9M annually” Business Process Improvement Strategy Management Project Management
  11. 11. 11/29 Defining the desired maturity of a business processes is the starting point for integrating Balanced Scorecard with the Enterprise Services deployment processes n The Integrated Master Plan (IMP) for Enterprise Services starts with the identification of increasing maturity of capabilities n The successful delivery of supporting features and functions can be measured by the completion of the Significant Accomplishments and their Criteria
  12. 12. 12/29 The focus of Capabilities‒Based Planning is on assessing the increasing maturity of functionality defined by the Balanced Scorecard strategy n Planning under uncertainty, provides capabilities suitable for a wide range of challenges and circumstances while working within an economic framework that necessitates choice n Focus on “possibilities” rather than features ¡ “What features do we need to achieve the desired capabilities?” ¡ “How much of each capability to we need at this point in time?” ¡ “How robust, flexible, and capable should we be at a point time to provide the needed capability?”
  13. 13. 13/29 Capabilities Based Planning takes a near term and long-term view of the emerging functional maturity needed to implement the Enterprise Services strategy n Near term effective use of processes, tools, features and functions n Future use of sound infrastructure and system capabilities ¡ Joint solutions to problem by identifying vertical connections between business processes ¡ Risk tradeoff assessment of vertical solutions within and across business processes ¡ Build capability to respond to a wide variety of possible demands
  14. 14. 14/29 Six trusted friends of a project-based organization are the basis of capabilities based planning and balanced scorecard Why are we doing this? Balanced Scorecard What is it we’re doing? Program Events How is this going to be accomplished? Significant Accomplishments When will we know it is done? Accomplishment Criteria When will we be done? Tasks Who going to do the work at what cost? Resources Where will the work take place? Teams
  15. 15. 15/29 The measure of Enterprise Services Business Effect’s is made visible at each maturity assessment point. “Is this want done looks like?” must be the question § Derive business effects from capabilities § Link capabilities to effects § Explicitly identify cross links and interdependencies between capabilities § Highlight “enabler” capabilities Sub- Capability Capability Business Effect Business Effect Capability Capability Sub- Capability Sub- Capability Sub- Capability Sub- Capability § Functional decomposition of capabilities § Capabilities must be Collectively Exhaustive and Mutually Exclusive § Provide a “menu” from which operations can choose required capabilities Capability 1 Capability 2 Sub- Capability Sub- Capability Sub- Capability Sub-Sub- Capability Sub-Sub- Capability Sub-Sub- Capability Sub-Sub- Capability Sub-Sub- Capability Sub-Sub- Capability
  16. 16. 16/29 Evidence that the strategy is being fulfilled is tested in the “units of measure” of the capabilities of a project whose maturity is assessed at periodic events Program Maturity Assessment Events What are the maturity assessment points along the way to completion? Significant Accomplishments What accomplishments must take place in order for this maturity to have occurred? Accomplishment Criteria What is the evidence that the accomplishments occurred? Tasks What effort must take place for the accomplishments to have be completed?
  17. 17. 17/29 The process drivers for Capabilities Based Planning starts with functionality and ends with deliverable effects on the business process n Functional or feature planning does not deliver the real value to the business units ¡ Features are not connected to strategy n Balanced Scorecard connections are capabilities not features n Testing strategy involves a capabilities impact not the presence of a feature ¡ Features are not connected to business value n Business strategy is tested through scenarios and capabilities n Delivered value results from the use of a capability in a scenario
  18. 18. 18/29 Capabilities Based Planning augments features with business value, traceable to strategy through a portfolio of projects and their Program Events n Plan the delivery of capabilities rather than the delivery of features and functions n Features and functions are the raw materials of Capabilities n Capabilities enable the delivery of the strategy
  19. 19. 19/29 Program Events are evaluation points in the project for assessing the maturity of the capability and its effect on the business n Program Events are Celebratory Opportunities along the path to maturity ¡ Significant accomplishments enable a new capability that supports a strategy ¡ The maturity of the derived effects are assured through the assessment of the Significant Accomplishment
  20. 20. 20/29 Significant Accomplishments describe the delivery of capability needed to fulfill a business strategy using work processes of the system n A Capability is the deployment or delivery of a feature or function in support of a business process, product or service initiative n Significant Accomplishments deliver this capability n Stating the needed maturity connects the capability with strategy
  21. 21. 21/29 Accomplishment Criteria are the “exit criteria” for the Significant Accomplishments, assuring the intent of the Accomplishment is met n Exit criteria are the evidence that the significant accomplishment has been achieved n The gathering and assessment of the Balance Scorecard KPI in support of a Significant Accomplishment
  22. 22. 22/29 Tasks are the raw material to implement the functionality needed for the business process to deliver on the capabilities n The effort expended to deliver the Accomplishment Criteria in support of the Significant Accomplishment n Short duration activities (20 to 40 working days) with clearly defined deliverables ¡ 0% or 100% credit for the deliverables ¡ No partial completion of tasks ¡ Predefined technical outcomes
  23. 23. 23/29 Management consists of Capabilities Assessments (Events), the Significant Accomplishments (SA) and the Accomplishment Criteria (AC) Business Strategy IMP Process Step WBS Element or Subsystem Events Tasks Accomplishments Criteria Significant Accomplishments (SA) Accomplishment Criteria (AC) Subsystem State of the Project State of the Capability State of the Process Demonstrates Maturity Identifies End Item How Defines Customer/Program Direction Program/Team Direction Team Direction Performance Team Status Team Status Something Completed Effort Expended Deliverables
  24. 24. 24/29 Starting with a “mini-Kaizen,” the maturity Assessment Points (Events) are gathered along with the Significant Accomplishments and Accomplishment Criteria
  25. 25. 25/29 A simple example of vertical and horizontal linking of the capability — provisioning a new employee illustrates the assessment of maturity Human Resources New Employee Ready to Work Insurance Orientation Laptop Account Setup Charge account setup Information Technology Finance Buying authority available Supply Chain Management Capability: Provide Buying Authority within 10 working days of hire
  26. 26. 26/29 Maturity assessments allow progress to be measured in how terms of “capability” effects the business; not just the consumption of time and resources n Define the desired maturity points along the path to completion n Measure the accomplishments n Assess the effect on business improvement n Engage all participants in a conversation about capability
  27. 27. 27/29 The deployment of Capabilities Based Planning is the basis of managing the deployment of Enterprise Services n What does done look like in terms of operational capabilities? n How can we measure the increasing maturity of Enterprise Services in terms of “done,” rather than the passage of time? n How can the user community define their operational needs in terms of capabilities rather than features and functions?
  28. 28. 28/29

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