AAF'16 Hyderabad | Prioritizing Portfolio Backlogs
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This document discusses prioritizing portfolio backlogs using multi-criteria decision analysis (MCDA). It outlines a 4-step process for program portfolio management teams to quantify and prioritize business value: 1) determine criteria describing business value, 2) quantify the criteria on an ordinal scale, 3) determine weightings for each criterion, 4) build a prioritization model combining criteria, weightings and scores. The result is a total value points score that can be used to prioritize epics, enablers and capabilities. Weighted shortest job first can further optimize the sequence of work.
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AAF'16 Hyderabad | Prioritizing Portfolio Backlogs
- 1. Prioritizing Portfolio Backlogs to Maximize Value Using Multi-Criteria Decision Analysis Stephen Mayner Senior SAFe® Program Consultant Scaled Agile, Inc.
- 2. SAFe® Senior Program Consultant Scaled Agile, Inc. steve.mayner@scaledagile.com @stevemayner stevemayner #aafhyd #SAFe #WhereIsART
- 3. OUR HIGHEST PRIORITY IS TO SATISFY THE CUSTOMER THROUGH EARLY AND CONTINUOUS DELIVERY OF VALUABLE SOFTWARE. Agile Manifesto, Twelve Principles AGILEMANIFESTO.ORG/PRINCIPLES “ ” (The Lodgeat Snowbird Ski Resort, where Agilewas born…)
- 4. what is Things only have the value that we give them. Molière 1622-1673
- 6. shareholder
- 8. social
- 10. customer
- 12. employee
- 14. supplier/partner
- 16. How do leaders know which indicators of business value to follow in order to achieve the desired business outcomes? Schwartz, M. (2016). The art of business value. Portland, OR: IT Revolution
- 17. They don’t. Schwartz, M. (2016). The art of business value. Portland, OR: IT Revolution
- 18. They have a hypothesis. Schwartz, M. (2016). The art of business value. Portland, OR: IT Revolution
- 23. Billing Trigger: Customer order Shipping/ TrackingCRM Operational Value Stream (Example: Order processing) People who operate the systems Systems: Value: Order delivered
- 24. #1-Take an economic view #2-Apply systems thinking #3-Assume variability; preserve options #4-Build incrementally with fast, integrated learning cycles #5-Base milestones on objective evaluation of working systems #6-Visualize and limit WIP, reduce batch sizes, and manage queue lengths #7-Apply cadence, synchronize with cross-domain planning #8-Unlock the intrinsic motivation of knowledge workers #9-Decentralize decision-making
- 25. If you only quantify one thing, quantify the —Donald G. Reinertsen, Principles of Product Development Flow
- 26. weighted-shortest job (WSJF) Reinertsen, D. (2012). The principles of product development flow: Second generation lean product development. Redondo Beach, CA: Celeritas Publishing
- 27. +timecriticality+riskreduction- Jobsize Reinertsen, D. (2012). The principles of product development flow: Second generation lean product development. Redondo Beach, CA: Celeritas Publishing
- 29. Multi-Criteria Decision Analysis (MCDA) …a general framework for supporting complex decision- making situations with multiple and often conflicting objectives that stakeholders groups and/or decision-makers value differently Belton, V., & Stewart, T. (2002). Multiplecriteria decision analysis: An integrated approach. Springer. Multiple stakeholders Structured decision alternatives Facilitatedecision dialogue Quantify categorical criteria Unify plural value dimensions
- 31. Launch NextGen Product Reduce operating costs Ensure compliance Decrease employee turnover Increase customer satisfaction Reduce carbon footprint
- 33. 5 – directly enables product to go to market 4 – direct precursor to releasing product to market 3 – strongly improves ability to launch 2 – moderately improves ability to launch 1 – nominally improves ability to launch 0 – no relationship to launching the nextgen product Scoringdefinition example
- 34. 5 – required to comply with regulations, laws, directives 0 – not required for compliance Scoringdefinition example For this decision analysis technique, an ordinal scale (Likert) is more appropriate than interval scale (Fibonacci)
- 36. launch nextgen product reduce operating costs ensure compliance decrease employee turnover increase customer satisfaction reduce carbon footprint weighting example
- 37. Step #4 Programportfoliomanagementteambuilds Putting it alltogether
- 38. Criteria Weight Scoring Definitions Raw Score Weighted Score Launch NextGen Product 30% 5 – directly enables product to go to market 4 – direct precursor to releasing product to market 3 – strongly improves ability to launch 2 – moderately improves ability to launch 1 – nominally improves ability to launch 0 – no relationship to launching the nextgen product 3 9 Cost Savings 20% 5 – Immediate AND >=$100M 4 – Within 1 year AND >=$25M 3 – Within 2 years AND >=$10M 2 – Within 3 years AND >=$1M 1 – Within 5 years OR >= $100K 0 – No cost savings 4 8 Compliance 20% 5 – Required to comply with regulations, statutes, directives 0 – Not required for compliance 5 10 Decrease employee turnover 10% 5 – Directly reduces turnover >=25% 4 – Directly reduces turnover between 18% to 24% 3 – Directly reduces turnover between 10% to 17% 2 – Directly reduces turnover between 1% to 10% 1 – Indirectly reduces turnover 0 – No connection to employee turnover 2 2 Increase customer satisfaction 10% 5 – Provides a top 5 most requested product capability 4 – Provides a top 50 most requested product capability 3 – Directly resolves a top 5 most commonly reported issue 2 – Directly resolves a top 50 most commonly reported issue 1 – Provides unrequested product/service enhancement 0 – No connection to customer satisfaction 4 4 Total Value Points 33Apply to epics, enablers, capabilities, features
- 39. Use modified planning poker with numbered cards 0 – 5 to achieve consensus
- 42. Storypoints
- 43. NextGen Product Cost savingsComplianceEmployee turnover Customer satisfaction Carbon footprint Total Value Points Story Points WSJF Weighting 3 4 5 2 1 4 Epic 6 5 5 4 4 2 4 81 1800 0.045 Epic 5 2 1 2 2 1 1 29 750 0.039 Epic 1 3 3 1 2 2 2 40 1500 0.027 Epic 2 2 3 5 4 3 3 66 3000 0.022 Epic 4 0 1 3 1 1 4 38 2000 0.019 Epic 3 0 1 5 2 2 4 51 4500 0.011
- 44. 0 10 20 30 40 50 60 70 80 90 100 1 2 3 4 5 6 7 8 9 10 11 12 Program Increments Value Burnup Chart Value Points
- 47. Questions?