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Value Management: Scaling Business Agility

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This is our presentation at the Global Scrum Alliance 2016 in Munich.
As organizations scale Agile, one of the remaining pieces of transformation is the funding, budgeting and PMO. This talk describes how Value Management is applied to maximize the value of organization level investment. It includes concepts such as incremental and dynamic funding, outcome based goals, autonomous teams and measuring value (not work output).

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Value Management: Scaling Business Agility

  1. 1. Victoria Hall & Linda Luu VALUE DRIVEN MANAGEMENT Building an anti-fragile organization enabling business agility at scale
  2. 2. 3 • Principal at ThoughtWorks; CSM, CSP • Decades of industry experience as an executive and individual contributor • Lives in Santa Fe, NM loves the outdoors Linda Luu Victoria Hall • Principal at ThoughtWorks • Lean UX, Product & Portfolio Coach • Author of The Lean Product Guide • Lives in San Francisco, loves vegemite @LindaKLuu
  3. 3. 4 Only a fool would try to make a 5-year prediction in a world that is so random. Credit Suisse CEO, Tidjane Thiam Source: http://www.businessinsider.com/credit-suisse-ceo-tidjane-thiam-at-bloomberg-evnt-2016-9
  4. 4. 5 Source: http://bestthenews.com/article/evoluti on-fintech-regulation-india-fri- 04292016-1254.html
  5. 5. NARROWING THE GAP 6 TechnologyChange Time Tech available to new disruptors Enterprise’s ability to absorb new tech evolution Gap in ability to explore and exploit opportunities Industry Models Technology Maturity Technology adoption use cases Business Process Business Model Evolution TechnologyChange Time Tech available to new disruptors Enterprise’s ability to absorb new tech evolution Gap in ability to explore and exploit opportunities
  6. 6. 7 Today VALUE MANAGEMENT PRINCIPLES STORIES GETTING STARTED Q&A
  7. 7. 8 VALUE DRIVEN MANAGEMENT Building a responsive enterprise through Portfolio Management
  8. 8. 9 CAPABILITY IS DETERMINED BY CULTURE
  9. 9. 10 CROSSING THE CHASM
  10. 10. 11 *Circa 1956
  11. 11. 12
  12. 12. 13 DESIGN BUILD TEST SHOWCASES Agile Teams TEST Centralized QA RELEASE IT Operations WATER - SCRUM - FALL https://www.scrumalliance.org/community/articles/2015/june/water-scrum-fal INVEST PLAN Exec + Finance PMO
  13. 13. 14 “The last mile” INVEST PLAN Exec + Finance PMO
  14. 14. 15
  15. 15. 16 EXECUTIVE VISION & STRATEGY GOAL GOAL GOAL BET BET VISION $ ? MEASURING VALUE X THE RESPONSIVE ENTERPRISE
  16. 16. 17 6 PRINCIPLES OF VALUE MANAGEMENT • Outcome based strategy • Value prioritization • Lightweight planning & governance • An adaptive, learning culture • Autonomous teams • Cross-functional & collaborative decision making PRODUCT ARCHITECTURE & AGILE DELIVERY RELEASE BUILDLEARN RELEASE BUILDLEARN RELEASE BUILDLEARN CONTINUOUSDESIGN. CONTINUOUSDELIVERY PORTFOLIO MANAGEMENT EXECUTIVE VISION & STRATEGY GOAL GOAL GOAL BET BET VISION $ ? MEASURING VALUE X The Responsive Enterprise
  17. 17. 18 STORY & EXAMPLES Applications of Value Management
  18. 18. 19 STORY #1 Outcome based strategy
  19. 19. 20 ALIGNMENT?
  20. 20. 21 A tale of two trucks.
  21. 21. 22
  22. 22. 23
  23. 23. COMMUNICATING STRATEGY 24 Vision Goal Bet Initiative What will we become? How might we achieve this Vision? How might we understand more about a Goal? What actions are we taking to further learn about or deliver on this Bet? We will be the highest value wholesale distributor Grow presence for small business customers Expand self service options for pop-up restaurants Develop a handheld ordering solution
  24. 24. 25 Decide on funding levels for goals
  25. 25. OUTCOMES THAT MATTER 26 Patient health or lives saved over cost containment Expanding customer’s financial options over number of credit cards opened Profit per user over schedule gate met Market share acquired over number of leads generated
  26. 26. LEAN VALUE TREE 27
  27. 27. 28 GO!
  28. 28. 29 STORY #2 Deciding better
  29. 29. 30
  30. 30. 31 YOU AND YOUR PMO
  31. 31. 32 STOP FOCUSING ON CONTROL
  32. 32. 33 START ENABLING CREATIVITY
  33. 33. DO ONE THING AT A TIME 34
  34. 34. LEARN FASTER & STEER BETTER 35 Build, Measure, Learn Ideate, Measure, Learn
  35. 35. DECISION MAKING WILL CHANGE 36
  36. 36. 37 STORY #3 Delivering value: people, culture and people
  37. 37. 38 In the old days….
  38. 38. 39 Build a new retirement income product GOAL FROM Help customers transition to retirement TO
  39. 39. 40 VISIONING RESEARCH MVP DEFINITIONIDEATION EXPERIMENTATION FEEDBACK BUILD - MEASURE- LEARN PIVOT Change direction Double down Abandon x Our Ideation and Delivery Approach
  40. 40. 41
  41. 41. 42
  42. 42. 43
  43. 43. 44 Help customers transition to retirement GOAL FROM Support boomers through their retirement journey TO
  44. 44. 45 How might we measure the success of adopting a value driven approach?
  45. 45. 46
  46. 46. 47
  47. 47. 48
  48. 48. 49 6 PRINCIPLES OF VALUE MANAGEMENT • Outcome based strategy • Value based prioritization • Lightweight planning & governance • An adaptive, learning culture • Autonomous teams • Cross-functional & collaborative decision making PRODUCT ARCHITECTURE & AGILE DELIVERY RELEASE BUILDLEARN RELEASE BUILDLEARN RELEASE BUILDLEARN CONTINUOUSDESIGN. CONTINUOUSDELIVERY PORTFOLIO MANAGEMENT EXECUTIVE VISION & STRATEGY GOAL GOAL GOAL BET BET VISION $ ? MEASURING VALUE X The Responsive Enterprise
  49. 49. 50 VALUE DRIVEN MANAGEMENT What We’ve Learned Getting Started
  50. 50. 51 What we’ve learned. Executives must change (it’s not just about the people doing the work!) Right people, right roles Products, not projects Tech as enabler vs Tech at core
  51. 51. 52
  52. 52. 53 DECIDING WHERE TO START Think big, start small, move fast • Thin slice approach • Identify a reason to change • Build small, cross-functional teams • ‘Test and learn’ approach • Align work to value • Visualize existing investments - is everything aligned to high value goals?
  53. 53. 54 BUILDING A RESPONSIVE ENTERPRISE CULTURE APPROACH TO SOLUTIONS INVESTMENT RISK BUSINESS VIEW OF IT IDEA TO REALIZATION CYCLETIME Responsiveness over efficiency Weeks, not months or years Adaptive delivery, incremental learning over Pre-defined solutions, fixed plans. Empowered teams, owning outcomes over Command and control, order taking. Incremental, Intentionally balanced investment over Large, upfront investments, ‘wait and see’ approach Partnership, rapid delivery of value over Service provider, delivering features
  54. 54. 55 THE LEAN PRODUCT GUIDE A practitioner’s guide to building viable products customers love. Available on Leanpub Free download for a limited time: http://leanproductguide.com/
  55. 55. 4000 technologists with 34 offices in 14 countries
  56. 56. THANK YOU 57 For any questions, please contact - Linda Luu (linda.luu@thoughtworks.com) Victoria Hall (victoria.hall@thoughtworks.com)

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