Online Enterprise Agile Portfolio Management Training

Copyright© Agile Transformation Inc | www.AgileTraining.com
8/26/2014
Re-Thinking Portfolio and
Capacity Planning
Copyright(c) Agile Transformation Inc.
About Me – Sally Elatta
• President Agile Transformation Inc.
• Author/Publisher of www.AgileVideos.com
• Leading Agile Transformation Coach, Trainer and Speaker
• Agile Portfolio Transformation Book (In the works!)
• Certified by PMI, ScrumAlliance, IBM, Microsoft, ICAgile
• Trained thousands and helped coach dozens of teams on Agile
• Agile Expert for PMI.org LEAD CoP
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I am simply a transformer. Someone who is really
passionate about transforming individuals, teams and
organizations to doing what they do better. I believe in
Servant Leadership as the way to lead change and create a
culture of empowered collaborative high performing teams.

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Let’s Talk About
3
Thinking Workshop
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Top Challenges/Drivers for Change
5
Silos, handoffs,
heavy processes,
lack of trust/
communication
Planning and
estimating methods
setup the project for
failure
Gov contracts
attempt to fix
everything upfront
and mandate heavy
processes
Slow time to
completion, too long
to deliver
Inherited a tangled
mess of non-
integrated legacy
applications
Quality and rework
issues
Missing, incomplete,
changing,
ambiguous
requirements
No value/ ROI
measurement, only
focus on cost
measurement
Lack of clear
direction, no
engaged customer,
wasteful meetings
Heavy engineering
and testing
processes, no
automation
Lack of
empowerment, low
engagement and
morale
Specialized roles,
‘not my task’ thinking
Testing occurs at the
end (too late)
resulting in many
defects
Overproduction,
working on wasteful
features
A High Performance Culture
6
Who are we and how do we behave?
What is important now? Why?
Can we stay focused till ‘Done’?How do we deliver value
and measure success?
Clarity
FocusExecution

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RE-THINKING PORTFOLIO
MANAGEMENT
What are the 6 levels of Agile planning?
How is Agile Portfolio Management Differ from Traditional
Approaches?
What does the Agile/Lean Portfolio Lifecycle look like?
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From Silos to Collaboration
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Workshop – The Multitasking Game!
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The Multitasking Name Game
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What Problem are We Trying to Solve?
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• Starting too many things
• No single point of entry
• No gate/qualification
• False illusion of progress by getting things started
• Constant resource shifting causing lack of focus
• No understanding of capacity
• Backlogs are not ‘ranked’
• Lack of clarity, focus, execution discipline
Multitasking People on Several Projects
at the Same Time
This is the # Killer of
Organizational Productivity

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Asking the Wrong Questions
• We’re asking the wrong questions:
• ‘Which resources are available’ instead of ‘Which team is
ready to pull this project into their backlog’
• ‘How can I have an enterprise view of my resources’ instead
of ‘How can I have an enterprise view of my execution teams’
• ‘What is our enterprise capacity in terms of resource hours’
instead of ‘What is our enterprise velocity per Quarter?’
• Pushing projects beyond capacity actually causes an
organization to slow down!
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1
2
3
4
5
Strategic Planning
Strategic Planning by Executive Leaders
Portfolio Planning
Portfolio Planning by Customer Unit
Product/Program Planning
Product Planning by Product Managers
Release Planning
Release Planning by Product Owner/Team
Iteration Planning
Iteration Planning by Team/PO
6 Levels of Agile Planning
6Daily Planning
Daily Task Planning by Team
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Agile Portfolio Lifecycle
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The Agile Lifecycle
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The Basic Team Structure
Business Vision
What? Why?
Team
Facilitator
Technical
Vision
How
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Backlog
Measurement
Program Team
(Scrum of Scrums)
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Program Leadership Team
PULLfromtheBacklog

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Portfolio Team
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Portfolio Management Team
PULLfromtheBacklog
Enterprise Stable Teams View
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What the CEO Thinks
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http://agileforgovernment.com/real-transformation-videos/
“EnterpriseCommand Center”
Aligning Delivery with Strategy
The Vision: BCBSNE will have an engaged and collaborative workforce unified
in their pursuit of common goals and efficiently delivering on key initiatives.
Stable Teams
3 Year RoadmapStrategic Objectives & Projects
Key Performance Indicators
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Sample Point and Cost Burn Up Chart
What is ‘Done’? How much did it cost me?
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Sample Enterprise Capacity Table
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Enterprise capacity is estimated by how many
points your stable teams can deliver per quarter.

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Top Metrics for Success
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Predictable Velocity
• Variance between target vs. actual velocity/throughput
Time to Market, Early Delivery
• How much faster are we delivering work? Lead and Cycle time reduction
Value/ROI
• Number of releases and number of features per release.
Quality
• Escaped defects
Confidence and Satisfaction
• Team happiness and confidence
• Customer satisfaction and confidence
Collaboration
• Are we more collaborative within IT and between IT and Business partners?
TeamHealth = Enterprise Health
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Decision Time!!
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How do we structure our teams so
they can deliver value against our
strategic initiatives?
How do we solve the ‘Project work
vs. Support work’ problem so teams
can have focus?
Do we specialize teams to focus on a
specific area of work (BI, Web, by
Customer, Membership, Claims..etc) or do
we build generalizing teams that can ‘pull’
any project? Maybe both?
How do we handle shared resources
who are SMEs?
Should we continue the current
project for this team or stop it?
Which item will this team pull next?
How many enterprise teams do we
have and what is our capacity?
Key Points - Summary
Executives and Leaders Need Education on Agile/Lean Portfolio Management
Create Ranked Backlogs based on Value/Risk/Dependency
Break ‘Projects’ Down to Shorter Deliverables
Teams ‘Pull’ Next Deliverable Based on Capacity
Stop or Reduce Project Multi-Tasking.
Think: CLARITY | FOCUS | EXECUTION | CULTURAL TRANSFORMATION
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8/26/2014
• Download this presentation from:
www.agileforgovernment.com/download
•
Watch Free Videos: http://www.AgileVideos.com
• Contact Us:
Sally@AgileTransformation.com
Paul.Lucas@AgileTransformation.com
Download This Presentation
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Leaders in Agile Transformations!
Transformation Strategy Planning | Executive & Team Coaching |
Training | Agile Assessments
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8/26/2014
TRANSFORMATION
ROADMAP
Concrete steps for Piloting, Scaling, Enterprise
Concrete learning roadmap
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Transformation Phases
Copyright© Agile
Transformation
Inc
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8/26/2014
Transformation Roadmap
Copyright© Agile
Transformation
Inc
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Learning Roadmap

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Additional Considerations
Planning for Agile Program teams
• Teams working on the same larger initiative will need additional coordination through
a program leadership team.
Agile/Lean Portfolio Management
• If the organization desires for teams to pull from an enterprise/portfolio ranked
backlog, then an Agile portfolio leadership team needs to be stood up and trained.
Distributed Teams
• Where the team members are located may impact the design of the team and their
speed towards Agile maturity.
Strong ScrumMasters
• Standing up several teams at the same time following an aggressive schedule
requires strong ScrumMasters supporting the coaches.
Management Support
• Lack of understanding or support by middle management will potentially kill the
transformation
Copyright© Agile
Transformation
Inc
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WHY AGILE? DOES IT WORK?
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DATA OVERLOAD WARNING!
• This next part will likely result in..
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Comparing Success Factors by Method
(Scale is from -10 to +10).
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Bottom Line from Survey Data
Data from 15183 respondents worldwide suggests
consensus on 67% more productivity, 65% more
Quality and 49% better on cost compared with
traditional methods.
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Source : The Business Value of Agile Software Methods by Dr. F Rico, Dr. H Sayani, Dr. S Sone Page 89
Bottom Line from Case Studies
79 studies with quantitative data proves average
ROI of 1872% ($20 return for $1 invested) for
Agile - ROI is due to
high productivity and high quality
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Source : The Business Value of Agile Software Methods by Dr. F Rico, Dr. H Sayani, Dr. S Sone

8/26/2014
ROI of Agile Methods vs. Traditional
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Source : The Business Value of Agile Software Methods by Dr. F Rico, Dr. H Sayani, Dr. S Sone
Picture Souce: www.People10.com
Standish Group. (2012). Chaos manifesto. Boston, MA: Author.
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Agile Traditional
Success
42%
Failed
9%
Challenged
49%
Success
14%
Failed
29%
Challenged
57%
Agile vs. Traditional Success
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• Dozens of surveys of agile methods since 2003
• 100s of Agile and CMMI case studies documented
• Agile productivity, quality, and cost better than CMMI
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Rico, D. F. (2008). What is the return-on-investment of agile methods? Retrieved February 3, 2009, from http://davidfrico.com/rico08a.pdf
Rico, D. F. (2008). What is the ROI of agile vs. traditional methods? TickIT International, 10(4), 9-18.
Agile vs. CMMI
43
• Analysis of 23 agile vs. 7,500 traditional projects
• Agile projects are 54% better than traditional ones
• Agile has lower costs (61%) and fewer defects (93%)
Mah, Michael. QSM (2008). Measuring agile in the enterprise: Proceedings of the Agile 2008 Conference, Toronto, Canada.
Project Cost in Millions $
0.75
1.50
2.25
3.00
2.8
1.1
Before Agile
After Agile
61%
Lower
Cost
Total Staffing
18
11
Before Agile
After Agile
39%
Less
Staff
5
10
15
20
Delivery Time in Months
5
10
15
20
18
13.5
Before Agile
After Agile
24%
Faster
Cumulative Defects
625
1250
1875
2500
2270
381
Before Agile
After Agile
93%
Less
Defects
44
E
E
F
F
Cost, Time, Staffing, Quality (QSM)
44

8/26/2014
Hoque, F., et al. (2007). Business technology convergence. The role of business technology
convergence in innovation and adaptability and its effect on financial performance. Stamford, CT:
BTM Institute. 45
• Study of 15 agile vs. non-agile Fortune 500 firms
• Based on models to measure organizational agility
• Agile firms out perform non agile firms by up to 36%
Agility = Above Industry Performance
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Benefits Realized from Agile Adoption
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VersionOneStateofAgileSurvey2011

8/26/2014
Agile Adoption – Future Predictions
• PMI has put their full
weight behind Agile which
will lead to faster global
acceptance and adoption of
Agile.
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Gartner predicts that 80% of all software projects
will move to Agile in the next couple of years.
AGILE IN THE GOVERNMENT
(CASE STUDIES)
48

8/26/2014
• 80% of worldwide IT projects use agile methods
• Includes regulated industries, i.e., DoD, FDA, etc.
• Agile now used for safety critical systems, FBI, etc.
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Industry
Shrink
Wrapped
Electronic
Commerce
Health
Care
Law
Enforcement
Org
 20 teams
 140 people
 5 countries
Size
 15 teams
 90 people
 Collocated
 4 teams
 20 people
 Collocated
 10 teams
 50 people
 Collocated
 3 teams
 12 people
 Collocated
U.S.
DoD
Primavera
Google
Stratcom
FBI
FDA
Project
Primavera
Adwords
SKIweb
Sentinel
m2000
Purpose
Project
Management
Advertising
Knowledge
Management
Case File
Workflow
Blood
Analysis
 1,838 User Stories
 6,250 Function Points
 500,000 Lines of Code
Metrics
 7,291,666 Lines of Code
 1,073,529 Lines of Code
 390 User Stories
Rico, D. F. (2010). Lean and agile project management: For large programs and projects. Proceedings of the First International Conference on Lean
Enterprise Software and Systems, Helsinki, Finland, 37-43.
Industries Adopting Agile
Rico, D. F., Sayani, H. H., & Sone, S. (2009). The business value of agile software methods: Maximizing ROI with just-in-time processes and
documentation. Ft. Lauderdale, FL: J. Ross Publishing.
49
The FBI’s Sentinel Project Succeeds with
Agile
• Project: Sentinel came under it’s $451 Million revamped budget
• Source: http://bit.ly/PKayyX
50
“After almost a decade of mismanagement and
waste at the FBI (costing $597 Million), its CIO
turned the agency's maligned case management
implementation into an agile project. Two years
later (and $99 Million), the system is live. This
relative success, as well as the example of other
federal agencies, shows that agile can work in
Washington.” - By Jason Bloomberg

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Agile in the Government
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The US Army Software Radio was also a large multi-billion
dollar Waterfall project saved by Agile methods in the 11th hour.
A small Agile team finished all the hardware and software at a
fraction of the total budget delivering a complex system on time.
Agile methods are now being used to complete the avionics
software systems for both the F35 and F22.
The Ministry of Defense, US Veteran Affairs, the UK
Government Digital Service, in India, Australia and New
Zealand have all demonstrated that Agile can work for
Governments.
Agile Government – Really??
• Department of Defense CIO Teri Takai’s new mission
statement:
• "To deliver agile and secure information capabilities to enhance combat
power and decision-making."
• DOD looks to reduce overall spending by $500 billion over 10
years.
• The GAO report profiles agile initiatives from the Department
of Defense, NASA, the US Patent and Trademark Office, the
VA and the IRS.
• Source: http://bit.ly/PMPTIa - Jason Bloomberg www.cio.com
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8/26/2014
Agile Government - Really??
• Agile and iterative development is now backed by the
top leaders in the Government:
• Vivek Kundra: the former federal CIO called for adoption of
cloud services and other "light technologies" and advocated
modular IT projects where "usable functionality" gets
delivered every six months.
• Steven VanRoekel: the new federal CIO calls on agencies to
embrace modular development and “run our projects in lean
startup mode”
• Source: http://bit.ly/PMPTIa
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Beware The Spiral of Death!
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