This document discusses using the cost of delay framework to estimate value when delivering work. It begins with shifting to a mindset of continuous value delivery through reducing lead time. A key aspect is estimating value quickly based on assumptions rather than precision. The document then provides an exercise where participants estimate lead time, delay time, assign value types and urgency profiles to sample work. It also demonstrates estimating the cost of delay for a given feature using underlying assumptions. The goal is to make value delivery decisions based on cost of delay rather than effort alone.
This presentation covers why visualization is a good thing in projects, and some of the various simple but powerful visualization techniques which can be used in Agile projects.
The document discusses the product backlog in Scrum, which is a prioritized list of features and functionality desired for a product. It notes that product backlog items (PBIs) should be progressively refined over time, starting broadly and becoming more detailed. PBIs need to be estimated, independent, negotiable, valuable, estimable, small, and testable. The product owner and team work together to refine and groom the backlog through activities like workshops, estimation, ordering by priority.
Scrum Teams work best when they collaborate with their product owners to continually refine their backlogs. This is, of course, easier to do when teams are small and collocated. In this webinar, Luke Hohmann, from Conteneo, will present a collection of frameworks that support product owners and Scrum Teams working together to refine backlogs in large and/or distributed teams.
The document describes the role and responsibilities of a Scrum Master. It states that a Scrum Master facilitates the team, ensures Scrum is used correctly, resolves impediments, protects the team, and coaches them. Key responsibilities include planning meetings, enforcing Scrum practices, removing blockers to progress, and helping the team and product owner improve. A Scrum Master has authority over processes but not individuals. Personal characteristics like being a servant leader and having an open, enthusiastic mindset are important for the role.
This document provides an overview of Scrum training. It introduces the trainer, Deniz Gungor, and their background. It then outlines the agenda, which will cover Scrum fundamentals, a Scrum simulation game, and the Scrum framework. Key aspects of Scrum are defined, including self-organizing Scrum teams, iterative delivery, the Product Owner, Scrum Master, Development Team, events like the Daily Scrum and Sprint Review, and artifacts like the Product Backlog and Sprint Backlog. The training will help participants understand and apply the Scrum framework to projects.
Kanban 101 workshop by John Goodsen and Michael Sahota.
This covers everything you will need to know to play Russell Healy's Kanban Game: visualizing the work, metrics, and creating explicit policies.
Slides are available on request. Please email me.
Creating Valuable PI objectives v1.1.2 - OLD VERSIONSjoerd Kranendonk
This document provides guidance on creating valuable PI Objectives in SAFe organizations. It defines PI Objectives as summaries of business and technical goals for an Agile Release Train (ART) in an upcoming Program Increment (PI). The document outlines benefits like focus, alignment, and learning. It discusses potential struggles and offers templates to help teams craft clear, measurable objectives. Examples demonstrate how to make objectives specific and focus on user/business impact. Metrics and acceptance criteria are emphasized to evaluate if objectives were achieved. Finally, case studies show potential outcomes with and without proper use of PI Objectives.
This document provides a summary of key concepts from Chapter 4 of the book "Essential Scrum". It describes the Scrum framework, roles, artifacts, and events. The Scrum roles include the Product Owner, Scrum Master, and Development Team. Key artifacts are the Product Backlog and Sprint Backlog. Main events are Sprint Planning, Daily Scrum, Sprint Review, and Sprint Retrospective. The goal is to help teams self-organize to deliver working software in short cycles through transparency, inspection, and adaptation.
This presentation covers why visualization is a good thing in projects, and some of the various simple but powerful visualization techniques which can be used in Agile projects.
The document discusses the product backlog in Scrum, which is a prioritized list of features and functionality desired for a product. It notes that product backlog items (PBIs) should be progressively refined over time, starting broadly and becoming more detailed. PBIs need to be estimated, independent, negotiable, valuable, estimable, small, and testable. The product owner and team work together to refine and groom the backlog through activities like workshops, estimation, ordering by priority.
Scrum Teams work best when they collaborate with their product owners to continually refine their backlogs. This is, of course, easier to do when teams are small and collocated. In this webinar, Luke Hohmann, from Conteneo, will present a collection of frameworks that support product owners and Scrum Teams working together to refine backlogs in large and/or distributed teams.
The document describes the role and responsibilities of a Scrum Master. It states that a Scrum Master facilitates the team, ensures Scrum is used correctly, resolves impediments, protects the team, and coaches them. Key responsibilities include planning meetings, enforcing Scrum practices, removing blockers to progress, and helping the team and product owner improve. A Scrum Master has authority over processes but not individuals. Personal characteristics like being a servant leader and having an open, enthusiastic mindset are important for the role.
This document provides an overview of Scrum training. It introduces the trainer, Deniz Gungor, and their background. It then outlines the agenda, which will cover Scrum fundamentals, a Scrum simulation game, and the Scrum framework. Key aspects of Scrum are defined, including self-organizing Scrum teams, iterative delivery, the Product Owner, Scrum Master, Development Team, events like the Daily Scrum and Sprint Review, and artifacts like the Product Backlog and Sprint Backlog. The training will help participants understand and apply the Scrum framework to projects.
Kanban 101 workshop by John Goodsen and Michael Sahota.
This covers everything you will need to know to play Russell Healy's Kanban Game: visualizing the work, metrics, and creating explicit policies.
Slides are available on request. Please email me.
Creating Valuable PI objectives v1.1.2 - OLD VERSIONSjoerd Kranendonk
This document provides guidance on creating valuable PI Objectives in SAFe organizations. It defines PI Objectives as summaries of business and technical goals for an Agile Release Train (ART) in an upcoming Program Increment (PI). The document outlines benefits like focus, alignment, and learning. It discusses potential struggles and offers templates to help teams craft clear, measurable objectives. Examples demonstrate how to make objectives specific and focus on user/business impact. Metrics and acceptance criteria are emphasized to evaluate if objectives were achieved. Finally, case studies show potential outcomes with and without proper use of PI Objectives.
This document provides a summary of key concepts from Chapter 4 of the book "Essential Scrum". It describes the Scrum framework, roles, artifacts, and events. The Scrum roles include the Product Owner, Scrum Master, and Development Team. Key artifacts are the Product Backlog and Sprint Backlog. Main events are Sprint Planning, Daily Scrum, Sprint Review, and Sprint Retrospective. The goal is to help teams self-organize to deliver working software in short cycles through transparency, inspection, and adaptation.
This document provides an introduction to Kanban basics for beginners. It discusses the origins of Kanban in the Toyota Production System and how it was adapted for software development. The core Kanban principles are visualized workflow, limiting work in progress, and continuous improvement. Examples are given of how to apply these principles, such as using minimal marketable features and Little's Law to deliver faster. Prioritizing work based on business value, cost of delay, and resource availability is also covered. The document concludes with references and recommendations for further learning about Kanban.
This document provides an overview of agile stories, estimating, and planning. It discusses what user stories are, how to write them, and techniques for estimating story sizes such as story points. It also covers different levels of planning including release planning, iteration planning, and daily planning. The document is intended to provide background information on using agile methods for requirements management and project planning.
Backlog refinement is not a Scrum event, but instead is an ongoing activity during the Sprint required to decompose, describe, estimate, and order backlog items in the Product Backlog.
This material is divided into two sections. The first section reviews the basics of backlog refinement, covering various options for conducting the activity. The second section covers tips for maintaining a healthy backlog and potential anti-patterns.
This material was presented at Agile New England in July and August 2022 as "101" introduction and "202" advanced sessions.
The document discusses Lean, Agile development methods, and how Agile principles relate to Lean. It provides background on Lean, describing how Agile emerged from principles that have existed for over 60 years in Lean manufacturing. Key Lean principles like eliminating waste, creating knowledge, building quality in, and respecting people are described. Agile fits these Lean principles through values like individuals over process, working software over documentation, and responding to change. Kanban is introduced as a Lean technique using visual boards to manage work flow.
SAFe Dependency Board Widget V3 for IBM Rational Team Concert (RTC)Markus Giacomuzzi
Globally distributed teams can easily get into the situation where sticky notes, tape and string no longer fit your needs concerning a virtual dependency board. The current Rational Team Concert (RTC) Scaled Agile Framework (SAFe) template provides a plain table for showing dependencies. So we decided to upgrade the RTC Timebox Planning Widget with a new visualization feature that supports SAFe's Dependency Board. Especially in a distributed environment, this will simplify and speed up your SAFe Program Increment (PI) planning substantially. Team member absences reduce not only the team's velocity automatically, but can also be visualized in an additional Absence Widget. Both widgets will be demoed and are freeware.
What is the purpose of Sprint planning meeting in Agile?Mario Lucero
What is the purpose of the Sprint planning meeting?
When you’re working within an agile management framework, you accomplish discrete tasks within the framework of a sprint. On the first day of each sprint the scrum team holds the sprint planning meeting.
Introduction to the scrum framework: roles, activities and artifacts.
Scrum is an agile methodology for project management, to create a high quality product.
www.nieldeckx.be
The document discusses different approaches to estimation in waterfall and Scrum methodologies. In Scrum, teams estimate their own work in story points, which are relative units based on size and complexity. Story points help drive cross-functional behavior and do not decay over time. Ideal days estimates involve determining how long a task would take with ideal conditions and no interruptions. Planning poker uses story point cards to facilitate discussion and reach consensus on estimates. Release planning in Scrum involves estimating velocity over sprints to determine how many product backlog items can be completed.
The document contains instructions for drawing a summer meadow scene with specific elements like flowers, grass, cows, birds, and a sun. It begins with more open requirements to draw blue and red flowers with cows and birds under a sun. Then it provides closed, detailed requirements specifying the number and characteristics of each element to include in the drawing. The document discusses the difference between open and closed requirements.
The document discusses the benefits of exercise for mental health. Regular physical activity can help reduce anxiety and depression and improve mood and cognitive functioning. Exercise causes chemical changes in the brain that may help protect against mental illness and improve symptoms.
This document provides an introduction to Kanban, an agile methodology that focuses on visualizing and limiting work-in-progress to continuously improve workflow. It defines Kanban and how it was inspired by lean manufacturing practices. The core practices of Kanban are outlined, including defining and visualizing the workflow, limiting work-in-progress, measuring and managing flow, making process policies explicit, and using models to suggest improvement. An example Kanban board is demonstrated. Finally, the document discusses how to build a Kanban process by defining queues and work items, setting work-in-progress limits, establishing delivery cadence, and continually improving the process through Kaizen.
Splitting Stories with the Hamburger Method - A Simple 5 Step ProcessStephen Tucker
The document discusses Adzic's Hamburger Method for vertically splitting user stories into smaller stories. It provides an overview of the method, which involves identifying layers or types of tasks needed to complete the story, then identifying options for each task from least to greatest value. The first "bite" or user story combines the least valuable option from each task. Subsequent bites build on prior bites by enhancing them. The document includes an example application of the method and a quiz.
This document provides information about agile estimation techniques, including story points and planning poker. It discusses how story points are used to provide relative estimates of complexity rather than time estimates. Planning poker is described as a consensus-based technique where a team privately selects story point cards before discussing to reach agreement. The document also covers insights around how additional details don't necessarily lead to better estimates and how past sprint performance can inform long-term planning estimates. Common questions about estimation techniques are addressed.
Pawel Brodzinski introduces the concept of Portfolio Kanban as a backdoor to organizational evolution. Portfolio Kanban addresses problems that arise from taking on too many concurrent projects, including context switching costs, lower quality work, and emergencies. It uses a visual board to manage total capabilities, commitments, and work in progress limits across all projects. Implementing Portfolio Kanban can result in fewer ongoing projects, fewer emergencies, healthier team work environments, and more slack time for teams.
A Scrum Master facilitates the Scrum process, creates rhythm and sets expectations for projects and team members. They facilitate daily stand-ups and meetings, enhance communication, and act as an approachable coach through 1:1 meetings and active listening. Scrum Masters also train teams, products, and the organization on Agile practices.
This presentation describes the basics of Agile methodologies and how it is differed from Waterfall. Then continues with the most famous Agile approach: Scrum
Why your current prioritisation is Apples v Pears. Looking at the issues in your current prioritisation process. These slides were delivered in various Agile user groups in the UK Q3/4 2015.
Content of presentation is heavily influenced by Don Reinersten who created the idea of Cost of Delay and Joshua Arnold from Black Swan Farming, who has done a great job making the content more accessible.
This presentation includes an overview of the various estimation techniques used in Agile projects. I've also put in a slide for explaining the importance of business value for Agile requirements. A simple mechanism on capacity planning before weaving it all together to come up with a reasonably foolproof plan.
Getting Started - Introduction to Backlog GroomingEasy Agile
Overview
- What is backlog grooming?
- Who should be involved in backlog grooming sessions
- Benefits of backlog grooming
- Guidelines for effective backlog grooming sessions
- Difference between backlog grooming and sprint planning
- Apple TV example
Stories are progressively refined through an agile feedback loop by breaking large concepts down into finer units of value. Teams practice inner feedback loops to rapidly build and validate software many times per day. Advanced teams maximize feedback by delivering stories using a test-driven approach where scenario specifications and unit tests are written before any code and used to guide the outside-in design and development of the software.
This document provides guidance for executives to lead an agile mindset through executive product ownership. It discusses enabling innovation from teams while providing alignment and autonomy. Key points include guiding from the center to enable edge innovation, being a role model for agile practices, and using data-oriented feedback to empower teams to solve problems across organizational boundaries. Executives should review team data to sponsor experiments addressing impediments and prioritize cross-cutting challenges.
This document provides an introduction to Kanban basics for beginners. It discusses the origins of Kanban in the Toyota Production System and how it was adapted for software development. The core Kanban principles are visualized workflow, limiting work in progress, and continuous improvement. Examples are given of how to apply these principles, such as using minimal marketable features and Little's Law to deliver faster. Prioritizing work based on business value, cost of delay, and resource availability is also covered. The document concludes with references and recommendations for further learning about Kanban.
This document provides an overview of agile stories, estimating, and planning. It discusses what user stories are, how to write them, and techniques for estimating story sizes such as story points. It also covers different levels of planning including release planning, iteration planning, and daily planning. The document is intended to provide background information on using agile methods for requirements management and project planning.
Backlog refinement is not a Scrum event, but instead is an ongoing activity during the Sprint required to decompose, describe, estimate, and order backlog items in the Product Backlog.
This material is divided into two sections. The first section reviews the basics of backlog refinement, covering various options for conducting the activity. The second section covers tips for maintaining a healthy backlog and potential anti-patterns.
This material was presented at Agile New England in July and August 2022 as "101" introduction and "202" advanced sessions.
The document discusses Lean, Agile development methods, and how Agile principles relate to Lean. It provides background on Lean, describing how Agile emerged from principles that have existed for over 60 years in Lean manufacturing. Key Lean principles like eliminating waste, creating knowledge, building quality in, and respecting people are described. Agile fits these Lean principles through values like individuals over process, working software over documentation, and responding to change. Kanban is introduced as a Lean technique using visual boards to manage work flow.
SAFe Dependency Board Widget V3 for IBM Rational Team Concert (RTC)Markus Giacomuzzi
Globally distributed teams can easily get into the situation where sticky notes, tape and string no longer fit your needs concerning a virtual dependency board. The current Rational Team Concert (RTC) Scaled Agile Framework (SAFe) template provides a plain table for showing dependencies. So we decided to upgrade the RTC Timebox Planning Widget with a new visualization feature that supports SAFe's Dependency Board. Especially in a distributed environment, this will simplify and speed up your SAFe Program Increment (PI) planning substantially. Team member absences reduce not only the team's velocity automatically, but can also be visualized in an additional Absence Widget. Both widgets will be demoed and are freeware.
What is the purpose of Sprint planning meeting in Agile?Mario Lucero
What is the purpose of the Sprint planning meeting?
When you’re working within an agile management framework, you accomplish discrete tasks within the framework of a sprint. On the first day of each sprint the scrum team holds the sprint planning meeting.
Introduction to the scrum framework: roles, activities and artifacts.
Scrum is an agile methodology for project management, to create a high quality product.
www.nieldeckx.be
The document discusses different approaches to estimation in waterfall and Scrum methodologies. In Scrum, teams estimate their own work in story points, which are relative units based on size and complexity. Story points help drive cross-functional behavior and do not decay over time. Ideal days estimates involve determining how long a task would take with ideal conditions and no interruptions. Planning poker uses story point cards to facilitate discussion and reach consensus on estimates. Release planning in Scrum involves estimating velocity over sprints to determine how many product backlog items can be completed.
The document contains instructions for drawing a summer meadow scene with specific elements like flowers, grass, cows, birds, and a sun. It begins with more open requirements to draw blue and red flowers with cows and birds under a sun. Then it provides closed, detailed requirements specifying the number and characteristics of each element to include in the drawing. The document discusses the difference between open and closed requirements.
The document discusses the benefits of exercise for mental health. Regular physical activity can help reduce anxiety and depression and improve mood and cognitive functioning. Exercise causes chemical changes in the brain that may help protect against mental illness and improve symptoms.
This document provides an introduction to Kanban, an agile methodology that focuses on visualizing and limiting work-in-progress to continuously improve workflow. It defines Kanban and how it was inspired by lean manufacturing practices. The core practices of Kanban are outlined, including defining and visualizing the workflow, limiting work-in-progress, measuring and managing flow, making process policies explicit, and using models to suggest improvement. An example Kanban board is demonstrated. Finally, the document discusses how to build a Kanban process by defining queues and work items, setting work-in-progress limits, establishing delivery cadence, and continually improving the process through Kaizen.
Splitting Stories with the Hamburger Method - A Simple 5 Step ProcessStephen Tucker
The document discusses Adzic's Hamburger Method for vertically splitting user stories into smaller stories. It provides an overview of the method, which involves identifying layers or types of tasks needed to complete the story, then identifying options for each task from least to greatest value. The first "bite" or user story combines the least valuable option from each task. Subsequent bites build on prior bites by enhancing them. The document includes an example application of the method and a quiz.
This document provides information about agile estimation techniques, including story points and planning poker. It discusses how story points are used to provide relative estimates of complexity rather than time estimates. Planning poker is described as a consensus-based technique where a team privately selects story point cards before discussing to reach agreement. The document also covers insights around how additional details don't necessarily lead to better estimates and how past sprint performance can inform long-term planning estimates. Common questions about estimation techniques are addressed.
Pawel Brodzinski introduces the concept of Portfolio Kanban as a backdoor to organizational evolution. Portfolio Kanban addresses problems that arise from taking on too many concurrent projects, including context switching costs, lower quality work, and emergencies. It uses a visual board to manage total capabilities, commitments, and work in progress limits across all projects. Implementing Portfolio Kanban can result in fewer ongoing projects, fewer emergencies, healthier team work environments, and more slack time for teams.
A Scrum Master facilitates the Scrum process, creates rhythm and sets expectations for projects and team members. They facilitate daily stand-ups and meetings, enhance communication, and act as an approachable coach through 1:1 meetings and active listening. Scrum Masters also train teams, products, and the organization on Agile practices.
This presentation describes the basics of Agile methodologies and how it is differed from Waterfall. Then continues with the most famous Agile approach: Scrum
Why your current prioritisation is Apples v Pears. Looking at the issues in your current prioritisation process. These slides were delivered in various Agile user groups in the UK Q3/4 2015.
Content of presentation is heavily influenced by Don Reinersten who created the idea of Cost of Delay and Joshua Arnold from Black Swan Farming, who has done a great job making the content more accessible.
This presentation includes an overview of the various estimation techniques used in Agile projects. I've also put in a slide for explaining the importance of business value for Agile requirements. A simple mechanism on capacity planning before weaving it all together to come up with a reasonably foolproof plan.
Getting Started - Introduction to Backlog GroomingEasy Agile
Overview
- What is backlog grooming?
- Who should be involved in backlog grooming sessions
- Benefits of backlog grooming
- Guidelines for effective backlog grooming sessions
- Difference between backlog grooming and sprint planning
- Apple TV example
Stories are progressively refined through an agile feedback loop by breaking large concepts down into finer units of value. Teams practice inner feedback loops to rapidly build and validate software many times per day. Advanced teams maximize feedback by delivering stories using a test-driven approach where scenario specifications and unit tests are written before any code and used to guide the outside-in design and development of the software.
This document provides guidance for executives to lead an agile mindset through executive product ownership. It discusses enabling innovation from teams while providing alignment and autonomy. Key points include guiding from the center to enable edge innovation, being a role model for agile practices, and using data-oriented feedback to empower teams to solve problems across organizational boundaries. Executives should review team data to sponsor experiments addressing impediments and prioritize cross-cutting challenges.
The document discusses organizational structures for knowledge workers. It proposes that a hierarchical organizational model does not effectively enable collaboration and value delivery in today's environment. Alternatively, enterprises are looking to group teams into cross-functional, self-organizing teams but this approach has limitations. The document recommends achieving organizational agility at scale by setting up an ecosystem of constantly evolving, self-organizing teams supported by various structures. It provides examples of portfolio structures and the use of value centers, services centers, enablement teams, and traveler pools. Finally, it discusses using team service delivery patterns and team linking patterns to organize the structure and connections between teams.
Agile @ scale through mindset and practiceagilebydesign
The document discusses how to achieve agility at scale through changes in mindset and practices. It advocates shifting mindsets around frequent delivery, small increments, less work in progress, diversifying risk, smaller self-organizing teams, funding teams and capabilities rather than projects, and measuring to encourage experimentation. It provides recommendations to incrementally adopt agile practices by focusing on enabling agility, eliminating barriers, attracting talent for self-organizing teams, funding innovation, and having leaders serve teams and focus on eliminating delays. The overall goal is to change mindsets and then apply deliberate practices to grow, operate and improve an agile enterprise.
Start developing for the Semantic Web with JAVA. This is an introduction how to tap into your linked data, open linked data and create flexible useful applications.
The document provides an overview of the history and principles of the Semantic Web and linked open data. It discusses how the Semantic Web aims to add meaning to information on the web by identifying things with URIs and linking related resources. The core components are RDF triples that describe resources and ontologies that define classes and properties. Linked open data publishes structured data on the web in ways that allow them to be interlinked and accessed via SPARQL queries. Examples demonstrate how semantic search and applications are using these techniques.
XP Day: Using cost of delay – Joshua ArnoldJoshua Arnold
This document discusses implementing an economic decision framework using lean product development techniques at a large container logistics company. It describes piloting the approach on one portfolio to demonstrate benefits, then rolling it out more broadly. Key elements included improving prioritization based on cost of delay, breaking down work into smaller batches to smooth workflow, and limiting work in progress. An initial pilot showed benefits of $9 million from earlier delivery and $4 million from better prioritization. Refinements were needed as the approach was applied repeatedly to help the concepts stick within the organization.
A retrospective looking at the implementation of Cost of Delay as a means to improve decision-making, improve the sense of urgency and encourage the breaking down of work as well as scheduling or prioritisation using CD3.
Estimating value through the lens of cost of delayJeff Anderson
This document discusses estimating value through the lens of cost of delay. It provides tools and frameworks for estimating value in an agile manner based on imperfect information and assumptions. Key points include:
- Estimating value requires shifting to a mindset of making decisions based on assumptions rather than precise measurements.
- Value types (increase revenue, reduce costs, etc.) and urgency profiles (expedite, standard, fixed date, intangible) provide simple frameworks for assessing economic impact and risk of delay.
- Cost of delay estimates the financial impact of delaying work and helps prioritize features based on their time-sensitive value rather than effort.
- Exercises are provided to estimate lead time, delay
The document discusses estimating the cost of delaying a project. It suggests splitting into teams to brainstorm new product ideas and estimate what delaying the project by 3 months would cost. Key considerations for developing a baseline economic model include pricing trends, market size and share determining unit sales, unit costs, development and marketing expenses. The model can then be used to develop variations considering delays, cost overruns, or sales estimates being off. Decision rules should be created to help determine if added features justify potential delays or costs. Keeping models simple and ensuring decision-makers understand and apply the rules is important.
The document describes a workshop on introducing lean principles to software development. It begins with an agenda and introduction to lean concepts. Participants then take part in hands-on exercises simulating production processes to experience issues like waste, uneven workflow, and inflexibility without lean. The exercises demonstrate how lean tools like kanban, pull systems, and multitasking can address these issues and improve flow. The workshop emphasizes that lean is not just tools but a long-term philosophy of continuous improvement respecting people.
What's the State of Agile Software Development?VersionOne
VersionOne’s 9th annual State of Agile survey is the ONLY agile survey with nine years of historical data from thousands of respondents every year. Go to www.stateofagile.com to download the full survey for insights on how to measure agile success, top tips for scaling agile, and much more.
The Bottleneck game as played at the JAX 2010 (modified version of what presented at http://www.agilecoach.net/coach-tools/bottleneck-game/). This German version of the game was developed and presented together with Martin Heider.
This presentation covers the entire aspects of 6 sigma quality methodology. You can have this presentation as a reference to anything related to 6 sigma. This is one of the best material to be refereed before the implementation of 6 sigma in your organization, whether it is in service sector or in manufacturing..
Most of the agile framework focus on delivery part and provide no guidance on project initiation part. What are right questions to ask when we are in very first meeting with the sponsor? How to guide the sponsor through a process of converting high level business idea into a vision and go about chartering exercise? How to effectively conduct project initiation workshop and start with a discovery exercise that sets the scene for a project and produces an initial backlog? These are some of the concerns addressed in this presentation.
NCV 3 Project Management Hands-On Support Slide Show - Module 4Future Managers
The document discusses project estimation and costing. It identifies different elements of a project like tasks, activities, work packages and costs. It explains different cost types like direct, indirect and time-related costs. It also discusses various cost estimation techniques like top-down, bottom-up and phased estimating. Tools for identifying resource requirements are also covered.
Uswitch.com transitioned from a traditional waterfall development process to agile practices like Scrum and XP over three years. While this improved speed, they still found planning overhead and low velocity. They then evolved to a fully lean approach, removing roles like QA and PM, limiting work-in-progress, releasing on demand, and building quality in rather than inspecting. This led to quicker time to market, reduced waste, safer and more frequent releases, and quality built-in rather than inspected. Measuring value is difficult but they focus on revenue, customer experience, innovation, and efficiency gains.
This document discusses various agile metrics and reporting strategies used in project management. It covers objectives of defining project goals both broadly and specifically. Business value is discussed in terms of what provides value to customers and the team. Running tested features is presented as a measure of progress. Inspecting and adapting work through feedback loops is recommended. Data needed for tracking includes scope, velocity, productivity and customer value. Estimating work in story points and determining velocity using a team's average delivery rate allows forecasting schedules and costs. Tracking changes in a team's capabilities is also presented.
When it comes to development methods, lean and agile have clearly taken the lead. In the spirit of Kaizen, this session will take a look at the measures we can glean from agile teams, why the are relevant and interesting, and how we can use them to help our teams get even better.
Every team or individual encounters pitfalls that attempt to derail the success of a project. Many times, theses pitfalls can be determined prior to encountering them. With proper planning, a team can take the appropriate measure to overcome any pitfall. In this session we discuss how planning starts during the estimation process and continues until the project is launched. Planning tasks that will be covered include; project estimation, feature specifications, use cases, wireframes, architecture, and build and release planning.
Lean, Six Sigma, ToC using DMAIC project managementSimon Misiewicz
This presentation guides you through the DMAIC methodology that encompasses Lean, Six Sigma and ToC initiatives. There are five key stages of DMAIC. D = Design, where do you want to be? Create and communicate your vision, mission and objectives. M = Measure. What is to be measured and how? A = Analyse, what business process is to be analysed. Which process if changed would reap the biggest benefit? I = Improve, where are the improvements going to be made, what are the ideas and how will they be evaluated against your key objectives? C = Control, how are you going to control your process and people within it to ensure that they stick to the new way of doing things, what error proofing techniques can be built? What project management controls will you use? This presentation will guide you. Please contact me should you have any questions on simon@optimise-gb.com. Many thanks Simon Misiewicz
Lean Kanban Netherlands 2012 - Lean Risk ManagementDavid Anderson
This document discusses using Kanban systems to enable a new approach to risk management in knowledge work. It provides examples of how Kanban can be used to manage commitments, lead times, flow efficiency, and observe lead time distributions to take a probabilistic approach to management. It also discusses using qualitative assessments to evaluate different risk dimensions and visualize risks to provide scheduling information. The document advocates hedging delivery risk through capacity allocation and aligning with strategic goals. It addresses managing options and competing pressures around bottlenecks and last responsible moments. Finally, it discusses using Kanban systems as liquid markets to best manage risk.
TARGET COSTING AND COST ACCOUNTINGFSGSGGSGdrluminajulier
Target costing is a process that develops product costs based on market considerations. It starts with determining customer needs and a target selling price, then works backwards to establish a target cost through value engineering. The target costing process involves market research, product planning, establishing the target cost, and then achieving the target cost through techniques like value engineering to design out unnecessary costs while keeping needed features. It aims to provide customers products they want at affordable prices while still earning a profit. Target costing is used widely in industries like automobiles, electronics, and information technology.
This document provides guidance on improving estimates. It discusses expanding one's comfort zone to better understand related processes and people. Common estimation methods are outlined, including analogy, expert judgment, and task breakdown. The document emphasizes the importance of holistic, continuous estimation that considers risks, assumptions, and dependencies. It advises committing to estimates only when requirements are clear and risks are addressed, and avoiding arbitrary padding or unrealistic deadlines. Signs of poor estimates, like unreasonable assumptions or lack of deliverable definition, are identified as "estimate smells" to avoid.
PROJECT STORYBOARD: Reducing Software Bug Fix Lead Time From 25 to 15 daysGoLeanSixSigma.com
GoLeanSixSigma.com Green Belt Eduardo Torres did a great job of cutting waste out of the process of fixing software bugs. The use of software is growing fast, and with no known way to guarantee new software is error-free, rapidly fixing bugs found is critical. Eduardo not only cut nearly 40% of the process time, but also cut the variability in half, greatly improving reliability!
– Susan Tighe, GoLeanSixSigma.com Master Black Belt
Coach
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Eduardo Torres is a Senior Project Manager and Lean Six Sigma Green Belt with expertise in the Telecommunications Field. For his Green Belt Project, he decided to tackle the long lead time for software bug fixes – reducing the total lead time from 25 to 15 days!
The document discusses resource allocation and project prioritization at a development organization. It notes that during normal operations, projects account for 80% of resources while sustaining work accounts for 15% and other tasks 10%. During crises, development drops to one project per engineer with sustaining work at 15%, project management at 5%, and other tasks at 10%. It proposes shifting more time to core competency work, offloading project management tasks, and dedicating resources to sustaining work to reduce project switching.
Engineering Design: Prototype to Product-Planning, Scheduling, Inventory Cost...Naseel Ibnu Azeez
The document discusses prototyping, rapid prototyping, and testing and evaluation of designs. It states that prototyping involves building a first fully operational production of a design solution to test it under real conditions, while rapid prototyping uses 3D printing to quickly fabricate a scale model from 3D CAD data. Testing and evaluation allows customers to provide feedback, identify faults, and suggest improvements before finalizing production costs and design.
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3. agilebydesign.com
@agile_bydesign
Think about Organizational Agility as the act of continuously looking for ways to
reduce the time between coming up with a hypothesis of value
and validating that value by deploying it to the market
We want to equip you with practical tools that can enable that shift in mindset
needed when it comes to delivering value with Agility
• Time is your most precious asset
• Value decays over time
Time
• Delay is your most expensive obstacle
• Delay costs you more than inefficiency
• Remove sources of delay
Delay
• Estimate value quickly and collaboratively
• Accuracy over Precision
Precision
4. agilebydesign.com
@agile_bydesign
During this session we want to provide you a chance to analyze real work
through the lens of delivering value with increased agility
Estimating Lead and Delay Time
(15 minutes)
Estimating Cost Of Delay
(15 minutes)
Ranking with CD3
(10 Minutes)
CD3
Score
Cost of
Delay
Duration=
Review and Next Steps (5 minutes)
EXERCISE: Cost of Delay and CD3 (30 minutes)
EXERCISE: Lead Time, Value Type & Urgency Profile (30 minutes)
Identifying Value and Urgency
(15 minutes)
5. agilebydesign.com
@agile_bydesign
We will work as a team to estimate the value of at least one feature using the
following Feature Value Estimation Canvas
FEATURE PROBLEM/IDEA/OPPORTUNITY DESCRIPTION
VALUE
(t-shirt sizing)
Create functionality so that TheBusiness notifies
customers when travelling internationally to prevent
card getting blocked
VALUE TYPE (choose one) URGENCY PROFILE (choose one)
Increase Revenue - Protect Revenue -
Reduce Cost - Avoid Cost
Expedite - Fixed –
Standard - Intangible
VALUE MODEL
Assumption Factor (with unit) Confidence
Cost of delay = # customers affected * likelihood of event * call duration * hourly rate * %customers who would use solution
COST OF DELAY (per months)=
LEAD TIME (months)= DELAY TIME (months)=
6. agilebydesign.com
@agile_bydesign
Estimating Lead and Delay Time
(15 minutes)
Estimating Cost Of Delay
(15 minutes)
Ranking with CD3
(10 Minutes)
CD3
Score
Cost of
Delay
Duration=
Review and Next Steps (5 minutes)
EXERCISE: Cost of Delay and CD3 (30 minutes)
Agenda
EXERCISE: Lead Time, Value Type & Urgency Profile (30 minutes)
Identifying Value and Urgency
(15 minutes)
7. agilebydesign.com
@agile_bydesign
For knowledge work, Lead Time can be measured by agreeing on a
Commitment Point and Delivery Point within your Porfolio or Team
Intake Scoping Options Analysis Build Validate Ready Deployed
I1 I2
I3
S1 S2 B1 B2
B3 B4
P2
P3
D2 C2 C1
C3
A1 D2D1
D3
Tech Lead Time
Doing Done Doing Done Doing Done
D1P1
CT CT CT Cycle TimeCycle TimeDelay Time Delay Time DT DT DT
A2
Tech
Commitment
Point
• Work before the commitment point can be
considered to be an option
• Minimal work to prepare an option
• Customers and suppliers negotiate the commitment
point based on the improvement they are looking
for in the system
Tech Delivery
Point
Market Lead Time
Business
Commitment
Point
Business
Delivery Point
8. agilebydesign.com
@agile_bydesign
An organization is delivering value with agility if it strives to reduce lead
time between idea generation to validating it through market feedback
Start increase Agility by
• Reducing Lead time
• Delivering less at a time, more often
• A balance of success and failure
• Increasing the frequency of customer
insights with tight feedback loops
Do not try to
• Increasing throughput
• Maximizing Efficiency
• Avoiding Failure
9. agilebydesign.com
@agile_bydesign
Why is there a delay?
1
Sample Delay Themes
• Different Teams & Porfolios have different priorities on their backlog
• Too much Work in Progress
• Outcomes are too Big – Need to Thin Slice!
• Teams are specialized, lots of hand-offs required
• Rework
• Over Specified
Solve or Reprioritize
to Lessen the Delay
2
Delay Time
Lead Time
Reducing lead time can be accomplished by identifying sources of delay
and removing them
Plan
ImproveLearn
10. agilebydesign.com
@agile_bydesign
Simple Lead Time and Delay Time for our example
FEATURE PROBLEM/IDEA/OPPORTUNITY DESCRIPTION
VALUE
(t-shirt sizing)
Create functionality so that TheBusiness notifies
customers when travelling internationally to prevent
card getting blocked
VALUE TYPE (choose one) URGENCY PROFILE (choose one)
Increase Revenue - Protect Revenue -
Reduce Cost - Avoid Cost
Expedite - Fixed –
Standard - Intangible
VALUE MODEL
Assumption Factor (with unit) Confidence
Cost of delay = # customers affected * likelihood of event * call duration * hourly rate * %customers who would use solution
COST OF DELAY (per months)=
LEAD TIME (months)= 3 DELAY TIME (months)= 2
11. agilebydesign.com
@agile_bydesign
Estimating Lead and Delay Time
(15 minutes)
Estimating Cost Of Delay
(15 minutes)
Ranking with CD3
(10 Minutes)
CD3
Score
Cost of
Delay
Duration=
Review and Next Steps (5 minutes)
Identifying Value and Urgency
(15 minutes)
Agenda
EXERCISE: Cost of Delay and CD3 (30 minutes)
EXERCISE: Lead Time, Value Type & Urgency Profile (30 minutes)
13. agilebydesign.com
@agile_bydesign
First steps to improvements are:
• high quality conversations
• smaller increments
• estimate your assumptions
• manage the impact of delay
Cross Functional group
estimates value
Key to estimating value is being able to shift to a mindset of making decisions
based on imperfect information and assumptions
Not estimating
value
Precise measurement
of value
15. agilebydesign.com
@agile_bydesign
• High and immediate impact to business
• Major lost opportunity if not immediately addressed
Our customers privacy is exposed until we make this fix
• Shallow but immediate impact to business
• Incremental revenue or Cost avoidance
We will get more paying customers if they can subscribe online
• No / low immediate impact to business
• New / improved capability
Once we have the ability to deliver application features using local people, we will have the
autonomy we need to deliver at market speed
• Medium or High impact to business
• Of no value past a certain date
Our Christmas Marketing Campaign had better be done before Christmas
Expedite Class
Standard Class
Intangible
Class
Fixed Date
Class
Allocating work across Urgency Profiles clarifies the risk inherent in not doing
the work
16. agilebydesign.com
@agile_bydesign
Our example continued by showing Value Type and Urgency Profile
FEATURE PROBLEM/IDEA/OPPORTUNITY DESCRIPTION
VALUE
(t-shirt sizing)
Create functionality so that TheBusiness notifies
customers when travelling internationally to prevent
card getting blocked
VALUE TYPE (choose one) URGENCY PROFILE (choose one)
Increase Revenue - Protect Revenue -
Reduce Cost - Avoid Cost
Expedite - Fixed –
Standard - Intangible
VALUE MODEL
Assumption Factor (with unit) Confidence
Cost of delay = # customers affected * likelihood of event * call duration * hourly rate * %customers who would use solution
COST OF DELAY (per months)=
LEAD TIME (months)= 3 DELAY TIME (months)= 2
17. agilebydesign.com
@agile_bydesign
Exercise (30 minutes)
• Choose sample work in your backlog
o Represent ideas at whatever granularity you are managing them (eg: Sagas,
Epics, Features)
o Features tend to be the easiest to work with going forward
• Estimate Lead Time & Delay Time:
o Starting with the highest priority item, estimate the time it will take to
deliver the work to market in people months
o Now estimate the time it would take if there was no delay in getting the
work done, in people months
o Identify sources of delay to get a better handle on total delay time
o Write down Lead time and Delay Time for each item
• Evaluate Idea and assign Value Type and Urgency Profile
18. agilebydesign.com
@agile_bydesign
Estimating Lead and Delay Time
(15 minutes)
Ranking with CD3
(10 Minutes)
CD3
Score
Cost of
Delay
Duration=
Review and Next Steps (5 minutes)
Cost of Delay and CD 3 Exercise (30 minutes)
Estimating Cost Of Delay
(15 minutes)
Lead Time, Value Type & Urgency Profile Exercise (30 minutes)
Identifying Value and Urgency
(15 minutes)
19. agilebydesign.com
@agile_bydesign
Cost of Delay puts a price tag on time, making it explicit how delaying a release
interferes with the realization of value
• Feature or Epic level
• Decay of Value / Time
• Opportunity Cost / Month (often in $$$)
• Slope can be used to display varying COD over
time
• Different Slopes -> Different Urgency Profile
• Achieve resiliency by balancing work across
Urgency Profiles
$10,000 / Month
Expedite
Class
Standard
Class
Intangible
Class
Fixed Date
Class
20. agilebydesign.com
@agile_bydesign
Looking at Cost Of Delay helps us understand how to make decisions based on
value, rather than effort
Week 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17
Value Add
Risk Reduction
Waiting
Opportunity
10 Weeks waiting
3 Weeks
waiting
Design
(24 hrs)
Dev & Test
(160 hrs)
Go-Live
We have identified the Customer Travel Abroad Feature with the cost of delay being $187,500
per week ($750,000 per month). The value stream below illustrates the progression of the Epic
through an organization’s system of work:
How much did queuing, or waiting time cost this organization?
The 10 weeks that this opportunity spent waiting in various queues cost the organization
$1,875,000 in lost revenues
5 Weeks
waiting
2 Weeks
waiting
Inspired by http://blackswanfarming.com
21. agilebydesign.com
@agile_bydesign
• High and immediate impact to business
• Major lost opportunity if not immediately addressed
Our customers privacy is exposed until we make this fix
• Shallow but immediate impact to business
• Incremental revenue or Cost avoidance
We will get more paying customers if they can subscribe online
• No / low immediate impact to business
• New / improved capability
Once we have the ability to deliver application features using local people, we will have the
autonomy we need to deliver at market speed
• Medium or High impact to business
• Of no value past a certain date
Our Christmas Marketing Campaign had better be done before Christmas
Expedite Class
Standard Class
Intangible
Class
Fixed Date
Class
Allocating work across Urgency Profiles clarifies the risk inherent in not doing
the work
22. agilebydesign.com
@agile_bydesign
Expediters have high and immediate impact to business
Typical Lead
Time
Expedite Class
High and immediate impact to business
Break-fix type of work that needs immediate
attention
Avoiding making the News
Extreme political fall out
25. agilebydesign.com
@agile_bydesign
Typical Lead
Time
Intangible Items do not have a cost of delay directly associated with them, delivery
allow the business to offer new capabilities and services
No / low immediate impact to business
Investment required to build new capability
and services
New or enhanced ways to deliver value
Intangible Class
27. agilebydesign.com
@agile_bydesign
Turn estimating value into a safe team exercise by making assumptions explicit
• Convert your uncertainties into questions
• Do some quick research, and document your assumptions
• Try to invalidate those assumptions quickly, include the entire Team,
members from the Porfolio, across The Business
• Encourage dialogue and dissent, but time-box it!
The process of surfacing our assumptions about value are
more useful than the numbers we come up with!
Build a Model of value based on your assumptions
SAMPLE MODELS:
• Increase Revenue
Market Size X Transaction Value X % Likelihood X Transaction volume
• Protect Revenue
Likelihood of threat X * # events per month X # cost of events
• Reduce Cost
Cost reduction / event X #events X %likelihood of benefit
• Avoid Cost
Cost avoidance / event X #events
Reach
Frequency
Likelihood
Unit Value
Inspired by http://blackswanfarming.com
28. agilebydesign.com
@agile_bydesign
Showing our example, with COD and underlying assumptions
FEATURE PROBLEM/IDEA/OPPORTUNITY DESCRIPTION
VALUE
(t-shirt sizing)
Create functionality so that we notifies customers
when travelling internationally to prevent card getting
blocked
• Customers travel outside of Canada and use our branded card
while travelling.
• We flag it as suspicious behavior and block the card.
• The customer calls in to reactivate the card, which is frustrating for
customers and adds to our call volume.
• If customers could tell us about travel plans via the website, we
could reduce call volume and have happier customers.
VALUE TYPE (choose one) URGENCY PROFILE (choose one)
Increase Revenue - Protect Revenue -
Reduce Cost - Avoid Cost
Expedite - Fixed –
Standard - Intangible
VALUE MODEL
Assumption Factor (with unit) Confidence
# of customers travelling abroad each month (based on
2.5 M overnight trips per year (Stats Can 2010) x 20%
are Cap One users)
500,000 People/month Strong
Likelihood that card is flagged/blocked (based on ?) 30% Strong
Average time wasted when customers calls in to get
card reactivated (15min)
0.25 hour Reasonable
Hourly rate for call center rep $50 $/hour Strong
Percentage of customers we think will use web travel
notification system (SWAG)
40% Uncertain
Cost of delay = # customers affected * likelihood of event * call duration * hourly rate * %customers who would use solution
COST OF DELAY (per months)= $750 000 CD3 =
LEAD TIME (months)= 3 DELAY TIME (months)= 2
29. agilebydesign.com
@agile_bydesign
Estimating Lead and Delay Time
(15 minutes)
Review and Next Steps (5 minutes)
Estimating Cost Of Delay
(15 minutes)
Ranking with CD3
(10 Minutes)
CD3
Score
Cost of
Delay
Duration=
Agenda
EXERCISE: Cost of Delay and CD3 (30 minutes)
EXERCISE: Lead Time, Value Type & Urgency Profile (30 minutes)
Identifying Value and Urgency
(15 minutes)
30. agilebydesign.com
@agile_bydesign
Estimating the Economic Impact of Delay for scheduling decisions using CD3
Cost of Delay Divided by Duration
Business value of the
feature or Epic
Value lost over time
• maximise the value delivered in a
given time period
• relatively fixed or “scarce” resources
(people!)
• Max total ROI by minimising the
total Delay Cost for a set of options
• encouraging the breakdown of work
into smaller batches!
Cost of Delay
Duration
How value decays over
time
The lead time to
deliver to market
Inspired by http://blackswanfarming.com
31. agilebydesign.com
@agile_bydesign
With FIFO we work on items for customers in the order we receive the features
Week A B C Opportunity
Cost
Revenue
1 $0 $0 $0 $10 $0
2 $0 $0 $0 $10 $0
3 $0 $0 $0 $10 $0
4 $0 $0 $0 $10 $0
5 $0 $0 $0 $10 $0
6 $1 $0 $0 $9 $1
7 $1 $4 $0 $5 $5
8 $1 $4 $0 $5 $5
9 $1 $4 $2 $0 $10
Total $69 $21
Feature Lead Time Cost Of Delay CD3
A 5 $1 0.2
B 1 $4 4
C 2 $5 2.5
32. agilebydesign.com
@agile_bydesign
CD3 provides focus on getting to value earlier
Week A B C Opportunity
Cost
Revenue
1 $0 $0 $0 $10 $0
2 $0 $4 $0 $6 $4
3 $0 $4 $0 $6 $4
4 $0 $4 $5 $1 $9
5 $0 $4 $5 $1 $9
6 $0 $4 $5 $1 $9
7 $0 $4 $5 $1 $9
8 $0 $4 $5 $1 $9
9 $1 $4 $5 $0 $10
Total $27 $63
Feature Lead Time Cost Of Delay CD3
A 5 $1 0.2
B 1 $4 4
C 2 $5 2.5
35. agilebydesign.com
@agile_bydesign
CD3 provides an economic incentive to increase organizational agility
• Rank order a backlog by the highest COD and lowest CD3 score
• Analyze the items with largest discrepancies where a lack of agility is interfering
with delivering the most value
• Perform root cause analysis across the Team and Porfolio boundaries to improve
the CD3 score where we believe it matters most!
Epic Lead Time Cost of Delay CD3
Epic 1 10 months $120,000 / month 12,000
Epic 2 2 months $50,000 / month 25,000
Epic 3 5 months $110,000 / month 22,000
When we have a Variance between CD3 and COD… We should ask WHY
Sample Delay Themes:
• Different Teams & Porfolios have different priorities on their backlog
• Too much Work in Progress
• Outcomes are too Big – Need to Thin Slice!
• Teams are specialized, lots of hand-offs required
• Rework
• Over Specified
Plan
ImproveLearn
36. agilebydesign.com
@agile_bydesign
Showing our example, with COD and underlying assumptions
FEATURE PROBLEM/IDEA/OPPORTUNITY DESCRIPTION
VALUE
(t-shirt sizing)
Create functionality so that TheBusiness notifies
customers when travelling internationally to prevent
card getting blocked
• Customers travel outside of Canada and use our branded card while
travelling.
• We flag it as suspicious behavior and block the card.
• The customer calls in to reactivate the card, which is frustrating for
customers and adds to our call volume.
• If customers could tell us about travel plans via the website, we
could reduce call volume and have happier customers.
VALUE TYPE (choose one) URGENCY PROFILE (choose one)
Increase Revenue - Protect Revenue
- Reduce Cost - Avoid Cost
Expedite - Fixed
– Standard - Intangible
VALUE MODEL
Assumption Factor (with unit) Confidence
# of customers travelling abroad each month (based on
2.5 M overnight trips per year (Stats Can 2010) x 20% are
Cap One users)
500,000 People/month Strong
Likelihood that card is flagged/blocked (based on ?) 30% Strong
Average time wasted when customers calls in to get card
reactivated (15min)
0.25 hour Reasonable
Hourly rate for call center rep $50 $/hour Strong
Percentage of customers we think will use web travel
notification system (SWAG)
40% Uncertain
Cost of delay = # customers affected * likelihood of event * call duration * hourly rate * %customers who would use solution
COST OF DELAY (per months)= $750 000 CD3 = $250,000
LEAD TIME (months)= 3 DELAY TIME (months)= 2
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Estimating Lead and Delay Time
(15 minutes)
Review and Next Steps (5 minutes)
Estimating Cost Of Delay
(15 minutes)
Ranking with CD3
(10 Minutes)
CD3
Score
Cost of
Delay
Duration=
Agenda
EXERCISE: Cost of Delay and CD3 (30 minutes)
EXERCISE: Lead Time, Value Type & Urgency Profile (30 minutes)
Identifying Value and Urgency
(15 minutes)
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Exercise (30 Mins) Select the highest valued item through quick, but thoughtful dialogue
that make assumptions behind value explicit
Describe the opportunity statement and review the
value type and urgency profile of a feature in your
backlog (break an Epic into Features if necessary)
1
Break the group into teams of two to three and spend
15-20 minutes creating a quick value model based on
quick research and existing knowledge.
• Express your estimate in $ per month (Cost of Delay)
• Make assumptions explicit!
2
Select a COD estimate, and prioritize next to other
items in that have been estimated, rank by the highest
valued, smallest lead time job
4
3
• Creates focus on value for money
• Enables better trade-off decisions
• Changes the focus of the conversation
• Revenue > Market Size x Transaction Value x %
Likelihood x % Cost
• Risk > Likelihood of event x # events x # cost of
events
• Investment > Incremental revenue / cost
avoidance per activity * likelihood * #events
Place all estimates beside each other side by side, and
have the group discuss, starting with the highest and
lowest. Group discusses and comes to a consensus
Inspired by http://blackswanfarming.com
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Estimating Lead and Delay Time
(15 minutes)
Review and Next Steps (5 minutes)
Estimating Cost Of Delay
(15 minutes)
Ranking with CD3
(10 Minutes)
CD3
Score
Cost of
Delay
Duration=
Agenda
EXERCISE: Cost of Delay and CD3 (30 minutes)
EXERCISE: Lead Time, Value Type & Urgency Profile (30 minutes)
Identifying Value and Urgency
(15 minutes)
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What’s Next?
Working at the Team and Portfolio level…
• Examine the backlog and break up into features
• Put a cadence in place to estimate lead time, delay time, COD, and CD3 for each
item at both the Team and Porfolio level that are in progress or will be started
within the next
1–2 months
• Align on what a healthy mix of urgency profiles and value type looks like for your
Porfolio
• Work with Teams to prioritize Intent using the COD approach
• Identify where sources of delay are having the biggest impact
• Prioritize Improvement work and place on Team, Portfolio, or Executive
Improvement backlogs
Editor's Notes
Time
Elapsed time is your most precious commodity, and can have a huge impact on the amount of customer value produced
Elapsed time is not materially impacted by efficiency, but by delay time
Removing sources of delay provides significant benefit
Value
Framing estimates using cost of delay
The mindset behind Cost Of Delay
using Urgency profiles to understand the rate that value is lost over time
Using value profiles to categorize the source of value
Estimating Cost of Delay
Delay
Evaluating the Economic impact of Delay
Prioritizing For CD3
Removing Impediments to delivering high value
Understanding the economics of delay drives behavior to remove source of delay
Check the math
What does Lead Time look like in operational work?
Not doing cycle time…. Just looking at Lead Time
Lead time is from commitment point to done
One is within Porfolio or Team, and another one is to Market (in Costco you might wait due to other partnerships stuff)
Come up with commitment point and delivery point – is that number helping you improve
Any form of waste as described by Lean can also be thought of as a source of delay
Mention waste as source of delay
Jeff A will come up with updated title
Check the math
Moving the ball forward in terms of measuring value
Encouraging high quality conversations about value
Persisting those conversations as an estimate
Breaking down work into smaller increments of value
Making assumptions explicit
Understanding the delays we encounter, and the cost of those delays when trying to deliver value
Putting a plan in place to reduce those delays
http://blackswanfarming.com/value-a-framework-for-thinking/
This is a simple framework for assessing the economic impact of the investment decisions we are making. It consists of four benefit types (or buckets) that an idea, feature or requirement might contribute to one or more of. Because we want to be able to compare between opportunities, they are necessarily focused on the likely impact to revenue and costs…
- Also speak to diversified portfolio
Check the math
Note: An SLT member and coach will be partnering with each group to assist in coaching and facilitation
Represented as the value the organization does not received per month it is not in market
Often thought of as the rate that value decays over time
Answer pops up with mouse click
- Also speak to diversified portfolio
Check the math
S!
Jeff K. to check math
Using these three features we can look at the impact to two alternatives to how we might schedule them. We could choose to work on and deliver these features one at a time in the order they arrived. A, then B, then C. (This is called First In, First Out. It is a common scheduling approach in manufacturing). After all, the person asking for Feature A will have been waiting for the longest time so we really should serve them first. Then B, and then C.
For the 5 weeks we are working on Feature A we incur the Cost of Delay of all three features: $5/wk + $4/wk + $1/wk. This adds up to $10/week times 5 weeks giving us a total Delay Cost incurred so far of $50.
We then move on to developing Feature B. For the 1 week this takes us to deliver we incur the Cost of Delay of Features B and C: $4/week + $5/week = $9/week. So the Delay Cost is an additonal $9, bringing us to a total of $59 worth of Delay Cost incurred so far.
At last, we can start working on Feature C. incuring the Cost of Delay of C during it’s development of $5/week for the two weeks it takes to build Feature C. This is another $10 of Delay Cost to add to our previous of $59 for a total of $69 Delay Cost incurred.
Or, use Cost of Delay Divided by Duration
Let’s consider another way of processing these Features. If we develop the features based on whichever has the highest CD3 score we would do Feature B first, followed by Feature C, and finally Feature A.
For the 1 week we are working on Feature B we incur Cost of Delay of $(4+5+1)/week. Delay Cost = $10For the 2 weeks we are working on Feature C we incur Cost of Delay of $(5+1)/week. Delay Cost = $12For the 5 weeks we are working on Feature A we incur Cost of Delay of $1/week. Delay Cost = $5
Total Delay Cost using CD3 is $27, a 61% decrease in the Delay Cost.
As you can see, using CD3 to order your backlog and prioritise features or projects can have a big difference.
The revenue generated by prioritizing and working on the highest CD3 score item results is a 300% increase in revenue ($63 vs. $21) while…
Total Delay Cost using CD3 is $27, compared with $69 with FIFO, a 61% decrease in the Delay Cost.