Active portfolio management

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When Agile teams begin to deliver products incrementally, new opportunities open up at the portfolio level to deliver strategic business value. However, the traditional approach to portfolio management — which depends on long-range forecasting and fixed financial controls — breaks down as business environments grow more complex, leaving portfolio managers ill-equipped to reap the potential benefits of their Agile programs.

SolutionsIQ Managing Director John Rudd and Dave West, Chief Product Officer at Tasktop, discuss active portfolio management from a product management point of view and how it can help guide decision making in an Agile enterprise.

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Active portfolio management

  1. 1. Introducing Active Portfolio Management Date 6801 185th Ave NE, Suite 200 Redmond, WA 98100 solutionsiq.com 1.800.555.1212 PREPARED BY Debbie Rutherford, Senior Account Executive drutherford@solutionsiq.com 425.614.7711 Bob Smith, Director bob@smith.com 425.555.1231 Introduction to Agile Governance and Portfolio Management Moderator: Betty Zakheim, Tasktop Copyright © 2014 SolutionsIQ. All rights reserved.
  2. 2. About Us 1 Getting Started Getting Started Introduction to Agile Governance and Portfolio Management Introduction to Agile Governance and Portfolio Management rights reserved. Copyright © 2014 SolutionsIQ. All
  3. 3. 1 Why are great businesses having such Introduction to a hard time Agile Governance and investing capital Portfolio Management “The first and most important issue to recognize in the United States – and it's a problem to the extent in other countries as well – is that the level of uncertainty about the very long-term future… businesses cannot basically decide what to do about their future. For example, the percent of cash flow of business that is invested in any form of capital asset, is that ratio two years ago was at the lowest level since 1938. This improved somewhat, but it is still extraordinarily low. And what we're observing there is with all this money coming in, all the profit, the cash flow – they cannot find adequate investments to use it.” Alan Greenspan 8 December 2013 CNN these days? Copyright © 2014 SolutionsIQ. All rights reserved.
  4. 4. 2 At the macro level, there seems to be a disconnect between investment Introduction to Agile Governance and decisions and delivery. Portfolio Management Why is that? Copyright © 2014 SolutionsIQ. All rights reserved.
  5. 5. this impact 3 How doesmanagement portfolio today? Introduction to Agile Governance and Portfolio Management Copyright © 2014 SolutionsIQ. All rights reserved.
  6. 6. characteristics 4 What are theto solve these of a solution problems — or a natural Introduction to Agile Governance and where we are outcome of Portfolio Management going? Copyright © 2014 SolutionsIQ. All rights reserved.
  7. 7. in your own 5 Please define is Active words, what Portfolio Management? Introduction to Agile Governance and Portfolio Management Copyright © 2014 SolutionsIQ. All rights reserved.
  8. 8. Active Portfolio Management 1 Getting Started • • • • • • Sector-based funding Getting Started Feature flow (changing our project mentality) A new language for valuation Real options (developing the business case) Dynamic business case Introduction to Continuous portfolio optimization Agile Governance and Portfolio Management Introduction to Agile Governance and Portfolio Management rights reserved. Copyright © 2014 SolutionsIQ. All
  9. 9. Sector-based funding 1 Getting Started • • • • Getting Started The changing role of corporate strategy Sectors Allocation and product life cycle Quarterly funding Introduction to Agile Governance and Portfolio Management Introduction to Agile Governance and Portfolio Management rights reserved. Copyright © 2014 SolutionsIQ. All
  10. 10. Feature flow (changing our project mentality) 1 Getting Started • • • • Getting Started Persistent teams as an organizational asset Key features rather than comprehensive project Reduced cost of change Feedback and Introduction tomarket alignment Agile Governance and Portfolio Management Introduction to Agile Governance and Portfolio Management rights reserved. Copyright © 2014 SolutionsIQ. All
  11. 11. A new language for valuation 1 Getting Started • IRR vs. Getting Started NPV • Sector-based comparisons • Both project and portfolio return taken into account Introduction to Agile Governance and Portfolio Management Introduction to Agile Governance and Portfolio Management rights reserved. Copyright © 2014 SolutionsIQ. All
  12. 12. Real options (developing the business case) 1 Getting Started • Waning upfront uncertainty is reflected in Getting Started increasing variance in expected return • Use a stepwise process to reduce variance (or risk) of investment opportunities • Introduction to hit both risk and return Investments that thresholds can advance Agile Governance and to a business case Portfolio Management Introduction to Agile Governance and Portfolio Management rights reserved. Copyright © 2014 SolutionsIQ. All
  13. 13. Dynamic business case 1 Getting Started • Business case Started open after approval with remains Getting ongoing contingent funding • Iterative return recalibration based on cost and market feedback • Introduction to pivot points clearly identified MVP, exit, and Agile Governance and Portfolio Management Introduction to Agile Governance and Portfolio Management rights reserved. Copyright © 2014 SolutionsIQ. All
  14. 14. Continuous portfolio optimization 1 Getting Started Getting Started • Nesting vs. slotting • Early exit vs. cost of delay • Use of sunk costs Introduction to Agile Governance and Portfolio Management Introduction to Agile Governance and Portfolio Management rights reserved. Copyright © 2014 SolutionsIQ. All
  15. 15. 6 What techniques do we need to employ to help managers make sure the investment is sound, or when feedback happens to support the change? Introduction to Agile Governance and Portfolio Management Copyright © 2014 SolutionsIQ. All rights reserved.
  16. 16. 7 How can Tasktop & SolutionsIQ help with this Introduction to transformation? Agile Governance and Portfolio Management Copyright © 2014 SolutionsIQ. All rights reserved.
  17. 17. Guiding the Agile Enterprise SolutionsIQ provides the guidance customers need to adopt and scale Agile practices beyond small teams and across the enterprise. Connecting the world of software delivery Tasktop Sync provides infrastructure that Introduction to connects Software delivery, ITSM and PPM Agile Governance andtools allowing the software delivery lifecycle Portfolio Management to flow Copyright © 2014 SolutionsIQ. All rights reserved.
  18. 18. Questions? 1 Getting Started Getting Started Introduction to Agile Governance and 1.778.588.6896 Portfolio Management 1.800.235.4091 Introduction to Agile Governance and Portfolio Management rights reserved. Copyright © 2014 SolutionsIQ. All

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