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SAFe City, Agile in the City Bristol

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IMPLEMENTING COST OF DELAY EFFECTIVELY IN A GROUP SETTING

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SAFe City, Agile in the City Bristol

  1. 1. @MartinBurnsSCO SAFe CITY Martin Burns & Mike Carew Senior Principal Transformation Consultants IMPLEMENTING COST OF DELAY EFFECTIVELY IN A GROUP SETTING
  2. 2. Copyright © 2017 CA. All rights reserved. @MartinBurnsSCO Workshop Purpose To understand and explore rational, economics-based prioritisation through explanation, discussion and dramatised simulation, so that we are prepared to use it in our own environment.
  3. 3. Copyright © 2017 CA. All rights reserved. @MartinBurnsSCO Fast brainstorm: What is your experience of prioritisation? What aspects of it do you enjoy? What don’t you like about it? What’s the most challenging thing about it? 7
  4. 4. How do you prioritise? HiPPO Highest Paid Person’s Opinion 8 Photo: Wikipedia.org MY thing is A MUST DO MY thing is THE MOST IMPORTANT
  5. 5. Copyright © 2017 CA. All rights reserved. @MartinBurnsSCO What Problem are you trying to solve? Why do you prioritise? What outcomes are you aiming for? Discuss with your neighbour and report back Timebox: 3 minutes.
  6. 6. Copyright © 2017 CA. All rights reserved. @MartinBurnsSCO Purpose of Prioritisation To achieve the BEST OUTCOME from a CAPACITY CONSTRAINED SYSTEM 10
  7. 7. Copyright © 2017 CA. All rights reserved. @MartinBurnsSCO Take an Economic View 1. While you may ignore economics, it won’t ignore you 2. Sequence Jobs for Maximum Benefit 3. If you only quantify one thing, quantify the Cost of Delay 11 Principles of Product Development Flow, Don Reinertsen
  8. 8. Copyright © 2017 CA. All rights reserved. @MartinBurnsSCO Cost of Delay: Single Big Batch –v- Incremental Small Batches 12 Additional Value Realised by Incremental Delivery, AKA Cost of Delay of Single Batch Delivery ValueRealised Time
  9. 9. Copyright © 2017 CA. All rights reserved. @MartinBurnsSCO Don-Enhanced Purpose of Prioritisation To achieve the BEST ECONOMIC OUTCOME from a CAPACITY CONSTRAINED SYSTEM using JOB SEQUENCING to MINIMISE COST OF DELAY 13
  10. 10. Copyright © 2017 CA. All rights reserved. @MartinBurnsSCO Priority Choice: Equal Duration Which order would you deliver these in to achieve best outcome (minimum Cost of Delay)? 14 Feature Duration Value A 10 months $100 B 10 months $1 000 C 10 months $1 000 000
  11. 11. Copyright © 2017 CA. All rights reserved. @MartinBurnsSCO Priority Choice: Equal Value Which order would you deliver these in to achieve best outcome (minimum Cost of Delay)? 15 Feature Duration Value A 1 month $10 000 B 6 months $10 000 C 12 months $10 000
  12. 12. Copyright © 2017 CA. All rights reserved. @MartinBurnsSCO Priority Choice: Mixed Value, Mixed Duration Which order would you deliver these in to achieve best outcome (minimum Cost of Delay)? 16 Feature Duration Value A 1 month $5 000 B 3 months $20 000 C 6 months $30 000
  13. 13. Copyright © 2017 CA. All rights reserved. @MartinBurnsSCO Weighted Shortest Job First Best economic outcome is achieved by sequencing jobs in order of descending WSJF, calculated as: Estimate each factor in turn, using relative estimating in Story Point style: 1. Find the smallest in the set of jobs for that factor, call it a 1. 2. Score all other jobs relative to that, using the standard Fibonacci-ish set Note: The actual numbers do not mean anything in themselves, including the result. Only the resulting order. 17 More at: http://www.scaledagileframework.com/wsjf/ WSJF = Business Value + Time Sensitivity Value + Risk Reduction | Opportunity Enablement Value Duration (Proxied by Size)
  14. 14. Copyright © 2017 CA. All rights reserved. @MartinBurnsSCO WSJF Subfactors Business Value (make, save, protect money) Timing Criticality Opportunity Enablement/ Risk Reduction • Growth in revenue through more effective sales • Upsell/Cross Sell • Cross business strategy • Process simplification • Ease of registration • Profitable revenue growth • Share of wallet • ARPU • Cost savings • Unit cost • Cost to support • Cost to serve • Shift to low cost channels • Customer satisfaction • NPS • Growth of volume • User registrations • First time purchases • Seasonality • Peak period sales • Seasonal features • Dependencies • Technical • Co-ordination with offline activities (marketing/ training) • System Driven • Legacy system retirement • Investment priorities • Financial (Q end) targets • Funding availability • Early benefits • Customer segment growth • Competitive position • Barrier to entry of competitors • First to market • Being behind market • Acquisition integration • Customer Satisfaction • Obvious pain points • Brand Enhancement • Learning about our customers • Partner relationships • Simple Integration • Future Flexibility • Speed to Market • Customer retention • Reduced Churn Risk • Ease of Use • Scalability • Single Platform for customers • Error reduction in Content Management • Fewer returns • Market • Market Share • Entry to new markets • Ability to change market • Compelling offer to new subsegment • Technical Risk • Faster defect feedback loops 18
  15. 15. Copyright © 2017 CA. All rights reserved. @MartinBurnsSCO SAFe City Simulation • Take each factor in turn • Size-order all the cards into rough affinity groups in that factor, from Extra Small to XXL. • Assign one of the following points value to all members of each group, starting with the smallest: – 1, 2, 3, 5, 8, 13, 20 19
  16. 16. Copyright © 2017 CA. All rights reserved. @MartinBurnsSCO Takeaways 1/4 What key events happened here? • What do you remember? • What words and phrases do you remember? • What were some key ideas & images? • What information stood out? Silent writing on stickies Timebox: 1 minute. 20
  17. 17. Copyright © 2017 CA. All rights reserved. @MartinBurnsSCO Takeaways 2/4 What’s your reflection on these? • What are your initial responses? • How did you feel at the end? • Where were you surprised? • Where did you feel most excited? • Where did you turn off? Silent writing on stickies Timebox: 1 minute. Discuss with your neighbour Timebox: 3 minutes. 21
  18. 18. Copyright © 2017 CA. All rights reserved. @MartinBurnsSCO Takeaways 3/4 What’s your changed understanding? • What is this trying to achieve? • How did this challenge or affirm the way we work? Discuss with your neighbour Timebox: 3 minutes. Discuss with your table Timebox: 5 minutes. 22
  19. 19. Copyright © 2017 CA. All rights reserved. @MartinBurnsSCO Takeaways 4/4 What will you do differently where you work? • What can we do about this? • What would be our first step? • Who would work on it? • Whose work would be most effected? • Who would we need to tell? Silent writing on stickies Timebox: 2 minutes. Discuss with your table Timebox: 5 minutes. 23
  20. 20. Senior Principal Transformation Consultants martin.burns@ca.com michael.carew@ca.com Martin Burns & Mike Carew @ca_agile Slideshare.net/CAInc Linkedin.com/company/ca-technologies ca.com
  21. 21. @MartinBurnsSCO Thank You. Download a paper on some alternative CoD based prioritisation schemes, co- written with Don Reinertsen, Troy Magennis, Joshua Arnold, Tony Grout & Chris Matts at http://everydaylean.info/downloads

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