Business Agility and Annual Planning: Solving the Paradox

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In this fast-paced world, new and quicker business rhythms must be established in order to compete. Organizations that have turned to Agile and Lean methods benefit from these shorter delivery cycles.

But the new barriers are much harder and the problems are bigger than with agile teams. Annual (and biannual) plans, budgets, resource management plans, policy and regulatory requirements limit the ability to leverage shorter cycles. Solving these problems requires new approaches to ignite your business agility.

We will explore the problems underlying the paradox of annual planning and business agility, and discuss the new approaches to solve this paradox. Learn how to define the elements of a successful portfolio.

Presented by Catherine Connor, Solution Manager, Portfolio Management, Rally Software and Brent Barton, Product Line Director, Portfolio Management, Rally Software

Published in: Business, Technology

Business Agility and Annual Planning: Solving the Paradox

  1. 1. www.rallydev.com ©2014 Rally Software Development Corp Get Answers Now ●  Our panel of experts are standing by to answer your questions ●  Enter your questions in the Q&A window ●  Webinar tech support available here
  2. 2. www.rallydev.com ©2014 Rally Software Development Corp Today’s Presenters Catherine Connor Solution Manager Portfolio Management Rally Software Brent Barton Product Line Director Portfolio Management Rally Software
  3. 3. www.rallydev.com ©2014 Rally Software Development Corp Business Agility and Annual Planning: Solving the Paradox Starting no later than your next annual planning cycle
  4. 4. www.rallydev.com ©2014 Rally Software Development Corp Poll When do your start prepping for annual planning? (single select) ●  Already started ●  July–Aug–Sept ●  April–May–June ●  March–April–May ●  I have no idea ●  We don’t do annual planning thank you!
  5. 5. www.rallydev.com ©2014 Rally Software Development Corp Business Value
  6. 6. www.rallydev.com ©2014 Rally Software Development Corp Executive Feedback This is the best, simplest, 
 easiest-to-use application we have ever gotten in both customer care and the retail stores! Whatever you all did, I want more of that!” “
  7. 7. www.rallydev.com ©2014 Rally Software Development Corp Cost Savings Customer Satisfaction Employee Satisfaction New Revenue Pilot Agile Team Delivered Great Value Employee satisfaction Compliance Shareholder Value Revenue Retention Customer satisfaction Cost savings New revenue through efficiency Value Cost Savings Customer Satisfaction Employee Satisfaction New Revenue
  8. 8. www.rallydev.com ©2014 Rally Software Development Corp What goes here? Business Value Agile
  9. 9. www.rallydev.com ©2014 Rally Software Development Corp Demand Business Value Rhythm of the Business CFO cost constraints HR people constraints Portfolio & Budget
  10. 10. www.rallydev.com ©2014 Rally Software Development Corp Demand Business Value Portfolio & Budget Agile Perfection expected here
  11. 11. www.rallydev.com ©2014 Rally Software Development Corp Conclusion: (Except in cases of perfection) Agile stresses annual planning and budgeting ?
  12. 12. www.rallydev.com ©2014 Rally Software Development Corp Annual Planning
  13. 13. www.rallydev.com ©2014 Rally Software Development Corp #RallyON14 Annual planning by staffing teams - Took hours Prioritized Demand ●  Value 1 ●  Value 2 ●  Value 3 ●  Value 4 ●  . ●  . ●  . Team Allocation ●  Platform 1, Search ●  Platform 1, 2 ●  Search ●  Platform 2, Search ●  . ●  . ●  . http://santabarbariansandtheircars.files.wordpress.com/2014/03/tahiti.jpg
  14. 14. www.rallydev.com ©2014 Rally Software Development Corp #RallyON14 Annual Planning by Staffing with FTEs Took Weeks to Months Week 1 Week 52 Names generated using: http://random-name-generator.info/
  15. 15. www.rallydev.com ©2014 Rally Software Development Corp Names generated using: http://random-name-generator.info/ #RallyON14 Annual planning by staffing individually - Took Weeks/Months http://pictures.linkmesh.com/dragons/imagenes/hell_dragon.jpg
  16. 16. www.rallydev.com ©2014 Rally Software Development Corp Annual Planning by Staffing Teams - 
 Took Hours to Days Prioritized demand ●  Value 1 ●  Value 2 ●  Value 3 ●  Value 4 Team allocations ●  Platform 1, search ●  Platform 1, Platform 2 ●  Search ●  Platform 2, search
  17. 17. www.rallydev.com ©2014 Rally Software Development Corp Business strategy (3–5 years) Forecasting and budgeting (12–18 months) Prioritization and value delivery IT/Engineering (<3 months–9 months) Long-range business commitments (1–3+ years) Reframing Annual Planning for Agility
  18. 18. www.rallydev.com ©2014 Rally Software Development Corp Business Agility
  19. 19. www.rallydev.com ©2014 Rally Software Development Corp Agility Defined An enterprise’s ability to sense, create, and respond to change quickly and confidently.
  20. 20. www.rallydev.com ©2014 Rally Software Development Corp Sense, create, and respond to change Optimize for business value Deliver value faster Agile – Not Just for Engineering Anymore
  21. 21. www.rallydev.com ©2014 Rally Software Development Corp Sense, create, and respond to change Optimize for business value Deliver value faster Agility for Annual Planning
  22. 22. www.rallydev.com ©2014 Rally Software Development Corp Solving the Paradox: Portfolio Agility
  23. 23. www.rallydev.com ©2014 Rally Software Development Corp Portfolio Agility Balance of execution & exploration
  24. 24. www.rallydev.com ©2014 Rally Software Development Corp Modern Principles of Capacity Planning #RallyON14 Team as the resource unit Roughly right Balance demand and supply Continuous planning cadence Tolerate incomplete data Reference: Rally’s Agile Blog Business Agility Theme
  25. 25. www.rallydev.com ©2014 Rally Software Development Corp 1. Continuous Planning Cadence
  26. 26. www.rallydev.com ©2014 Rally Software Development Corp #RallyON14 Business Rhythms: Sample Planning Cycles Business strategy (3–5 years) Forecasting and budgeting (12–18 months) Prioritization and value delivery IT/Engineering (<3 months–9 months) Long-range business commitments (1–3+ years)
  27. 27. www.rallydev.com ©2014 Rally Software Development Corp Separate Cadence by Purpose Roughly right forecasting and budgeting plans 
 (9–18 months) Inform midrange prioritization plans (3–9 months)
  28. 28. www.rallydev.com ©2014 Rally Software Development Corp 2. Roughly Right
  29. 29. www.rallydev.com ©2014 Rally Software Development Corp Stay Away from False Precision
  30. 30. www.rallydev.com ©2014 Rally Software Development Corp Cone of Uncertainty
  31. 31. www.rallydev.com ©2014 Rally Software Development Corp 3. Team as the Resource Unit
  32. 32. www.rallydev.com ©2014 Rally Software Development Corp
  33. 33. www.rallydev.com ©2014 Rally Software Development Corp Stable teams result in up to: 60% better productivity 40% better predictability 60% better responsiveness Key Findings
  34. 34. www.rallydev.com ©2014 Rally Software Development Corp 4. Match Supply and Demand
  35. 35. www.rallydev.com ©2014 Rally Software Development Corp #RallyON14 https://communities.intel.com/community/itpeernetwork/blog/2011/08/05/we-won-international-architecture-excellence-award Can any single team work on all of this?
  36. 36. www.rallydev.com ©2014 Rally Software Development Corp #RallyON14 S "Rally Confidential and Proprietary"
  37. 37. www.rallydev.com ©2014 Rally Software Development Corp 5. Tolerate Incomplete Data
  38. 38. www.rallydev.com ©2014 Rally Software Development Corp Tolerate Incomplete Data Source: Steve Blank – Harvard Business Review Only detail initiatives when you get closer to scheduling them Get comfortable operating on good- enough data Demand side Only fuss with capacity constraints that will come back to bite you Supply side
  39. 39. www.rallydev.com ©2014 Rally Software Development Corp Ready to Get Started?
  40. 40. www.rallydev.com ©2014 Rally Software Development Corp Adopt the Modern Capacity Planning Principles 3. Adopt teams as your planning currency 1. Delay detailed prioritization activities to shorter cadences 2. Avoid false precision 5. Fuss when you must 4. “What fits” may not be most valuable Result: Create better plans in half the time
  41. 41. www.rallydev.com ©2014 Rally Software Development Corp Pick a Trusted Partner Nobody has helped more enterprises in their Agility journeys Experience matters Partner With the Experts
  42. 42. www.rallydev.com ©2014 Rally Software Development Corp The Right Path to Agility Transformation Scattershot … it’s not a question of whether your firm will adopt Lean and Agile techniques but how soon and how broadly it will adopt them. Firms that charge into the transformation blindly will meet an untimely but fairly predictable end.” – Forrester Research, Determine the Business and IT Impact of Agile Development, 2012 “
  43. 43. www.rallydev.com ©2014 Rally Software Development Corp Rally’s Transformation Approach DISCOVER •  Learn potential for agility •  Learn by doing (pilots) •  Prove value and mitigate risk LAUNCH •  Develop capability and capacity •  Address concerns from Discover phase •  Expand beyond pilots ACCELERATE •  Accelerate the pace of adoption •  Obtain critical mass •  Engrain agility into culture ADVANCE •  Complete initial transformation •  Begin Kaizen and continuous improvement •  Live Agile
  44. 44. www.rallydev.com ©2014 Rally Software Development Corp Rally Portfolio Scenario Planning Accelerate time to benefit 1.  What can you realistically deliver next year? 2.  How can you optimize midrange planning? 3.  How to adopt principles of modern capacity planning? Portfolio
  45. 45. www.rallydev.com ©2014 Rally Software Development Corp Agile Portfolio Steering Understand portfolio agility concepts Portfolio
  46. 46. www.rallydev.com ©2014 Rally Software Development Corp Building the Right Thing Getting the most value out of your portfolio Portfolio Execution
  47. 47. www.rallydev.com ©2014 Rally Software Development Corp Rally Program Launch Accelerate software value delivery Execution
  48. 48. www.rallydev.com ©2014 Rally Software Development Corp Poll - Contact me about: (multiselect choices) ●  Rally Transformation Services to help me raise my organization agility level ●  Agile University Agile Portfolio Steering course to help me leverage the nature of iterative and incremental development to enable strategic steering. ●  Agile University Building the Right Thing course ●  Rally Portfolio Scenario Planning Services to help me create executable plans from our annual strategic goals ●  Rally Program Launch to improve my ability to deliver value faster once we form our annual plans ●  Not sure
  49. 49. www.rallydev.com ©2014 Rally Software Development Corp Thank You Questions?
  50. 50. www.rallydev.com ©2014 Rally Software Development Corp Survey Marketing to add please add a poll to collect NPS data

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