Post on 24-May-2020
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4 September 2018
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Al ShallowayCEO, Enterprise Consultant
Lean Portfolio Management
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Al ShallowayCEO, Founder
alshall@NetObjectives.com
@AlShalloway
Co-founder of Lean-Systems SocietyCo-founder Lean-Kanban University Contributor to SAFe
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ASSESSMENTSCONSULTING
TRAININGCOACHING
Lean ManagementProject Management
technical
Lean for ExecutivesProduct Portfolio ManagementBusiness Product OwnerProduct Owner
Leanban / Kanban / Scrum ATDD / TDD / Design Patterns
Onsite SPC Leading SAFe®Agile ArchitectureProduct Manager/PO
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Lean Portfolio Management
1. The goal and benefit
2. Quantifying what a portfolio is investing in
3. What to work on... and how to rank them
4. Reorganizing the talent
5. Having an intake process
6. When have multiple portfolios
7. The big picture
8. Guiding principles
9. Challenges that will derail
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DEFINITION
The realization of the highest business value in a shorter amount of time, predictably, sustainably, and with high quality.
By working in small delivery increments, you can adjust continuously to what is needed, enabling change to direction at low cost.
Goal and Benefit of Business Agility
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What is the purpose of Lean Portfolio Management?
Putting the right capacity on the right value to build at the right time
Focus
People
Organization
Workflow
Enable people who have to make decisions to be able to make them within the bigger picture
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Scrum Team
Scrum Master
Team member
1
Team member
2
Team member
3
Team member
4
Team member
5
Team member
6
Product Owner
Person with limited
capacity
RTE
Scrum team 1
Scrum team 2
Scrum team 3
Scrum team 4
Scrum team 5
Scrum team 6
Product Manager
Shared Services
SAFe ART
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Reductionist thinking does not work with complex systemsWhich part of the airplane is responsible for flight?
Optimize the whole; don’t optimize locally!
Watch What if Russ Ackoff gave a TED talk? https://www.youtube.com/watch?v=OqEeIG8aPPk
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a blockage anywhere
is a blockage
everywhere
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Lean Portfolio Management
1. The goal and benefit
2. Quantifying what a portfolio is investing in
3. What to work on... and how to rank them
4. Reorganizing the talent
5. Having an intake process
6. When have multiple portfolios
7. The big picture
8. Guiding principles
9. Challenges that will derail
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Clarify the Business Mission with Stakeholders
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Agree on Value Weightings
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Lean Portfolio Management
1. The goal and benefit
2. Quantifying what a portfolio is investing in
3. What to work on... and how to rank them
4. Reorganizing the talent
5. Having an intake process
6. When have multiple portfolios
7. The big picture
8. Guiding principles
9. Challenges that will derail
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The Minimum Viable ProductGeared towards startups
First time a product/service is released
Usually built by a small team that can pivot
What do you do when• You are an established company?• It is an enhancement to an existing product/service?• The teams required to build it are not aligned?
Mark Denne and Jane Cleland-Huang Software by Numbers
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DEFINITION
The minimum amount of business value that can be built, deployed and consumed that makes sense from a business perspective
Minimum Business Increment (MBI)
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An MBI is not a reason to deliver less…
It is a reason to deliver sooner.
It must contain all that is needed for value realization.
It provides something to alignaround.
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Evaluate and Rank Business Increments by Business Value
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Evaluate and Rank Current MBIs by Business Value
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Lean Portfolio Management
1. The goal and benefit
2. Quantifying what a portfolio is investing in
3. What to work on... and how to rank them
4. Reorganizing the talent
5. Having an intake process
6. When have multiple portfolios
7. The big picture
8. Guiding principles
9. Challenges that will derail
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Reorganizing the talentGoal: Stable groups to which to move work.
Requires subject matter expertise and all the skills needed to create value.
SAFe suggests Agile Release Trains. Other options are available.
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Lean Portfolio Management
1. The goal and benefit
2. Quantifying what a portfolio is investing in
3. What to work on... and how to rank them
4. Reorganizing the talent
5. Having an intake process
6. When have multiple portfolios
7. The big picture
8. Guiding principles
9. Challenges that will derail
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Get while the getting is good
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too many projects
projects too large
value delivered too late
the more we pushthe more we fall behind
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here’s a spot!
…and another!
Operating a product development process near full utilization is an economic disaster. – Don Reinertsen
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Why would we start building an increment of value that would slow down something of greater value?
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Lean Portfolio Management
1. The goal and benefit
2. Quantifying what a portfolio is investing in
3. What to work on... and how to rank them
4. Reorganizing the talent
5. Having an intake process
6. When have multiple portfolios
7. The big picture
8. Guiding principles
9. Challenges that will derail
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What if we have multiple portfolios?
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Clarify the Business Mission with Enterprise Stakeholders
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Lean Portfolio Management
1. The goal and benefit
2. Quantifying what a portfolio is investing in
3. What to work on... and how to rank them
4. Reorganizing the talent
5. Having an intake process
6. When have multiple portfolios
7. The big picture
8. Guiding principles
9. Challenges that will derail
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V A L U E S T R E A M O W N E R , B U S I N E S S S P O N S O R , T E C H N O L O G Y S P O N S O R , S T A K E H O L D E R S
TE
AM
PR
OG
RA
MP
OR
TF
OL
IO
B U S I N E S S D I S C O V E R Y B U S I N E S S D E L I V E R Y
Input
Define business offerings
Create MBIs
Sequence MBIs
Create features
Assign to team backlogs (teams pull when able)
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B U S I N E S S D I S C O V E R Y B U S I N E S S D E L I V E R YT
EA
MP
RO
GR
AM
PO
RT
FO
LI
O
Business Priority
Define business offerings
Create MBIs
Sequence MBIs
Create features
Assign to team backlogs (teams pull when able)
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B U S I N E S S D I S C O V E R Y B U S I N E S S D E L I V E R Y
TE
AM
PR
OG
RA
MP
OR
TF
OL
IO
Business Planning
Define business offerings
Create MBIs
Sequence MBIs
Create features
Assign to team backlogs (teams pull when able)
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B U S I N E S S D I S C O V E R Y B U S I N E S S D E L I V E R YT
EA
MP
RO
GR
AM
PO
RT
FO
LI
O
Business Staging
Define business offerings
Create MBIs
Sequence MBIs
Create features
Assign to team backlogs (teams pull when able)
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B U S I N E S S D I S C O V E R Y B U S I N E S S D E L I V E R Y
TE
AM
PR
OG
RA
MP
OR
TF
OL
IO
Ready to Pull
Define business offerings
Create MBIs
Sequence MBIs
Create features
Assign to team backlogs (teams pull when able)
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Strategy & Investment Funding• Connect the portfolio to enterprise strategy• Fund value streams• Establishing portfolio flow
Agile Portfolio Operations• Coordinate value streams• Sustain and improve
Lean Governance• Forecast and budget dynamically • Measure lean portfolio performance• Coordinate continuous compliance
The Big Picture
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Agile at ScaleTeam Product Backlogs
Team 1
Team 2
Team 3
Team 4
A
B
C
D
E
ARCHITECTURE / TECHNICAL LEADS
STAKEHOLDERS DEVELOPMENT TEAMS
B U S I N E S S D I S C O V E R Y B U S I N E S S D E L I V E R Y
PRODUCT OWNERS
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Product Owner Role Stretched Too Thin
Product Owners do project managementStakeholders can’t go to one source to see what to doTeams have to coordinate with themselves
Team Product Backlogs
Team 1
Team 3
Team 4
A
B
C
D
E
?
??
?
??
?
Team 2
PRODUCT OWNERS
ARCHITECTURE / TECHNICAL LEADS
STAKEHOLDERS DEVELOPMENT TEAMS
B U S I N E S S D I S C O V E R Y B U S I N E S S D E L I V E R Y
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Product Managers and Product Owners
Team 1
Team 2
Team 3
Team 4
A
B
C
D
E
ARCHITECTURE / TECHNICAL LEADS
PRODUCT OWNERSSTAKEHOLDERS DEVELOPMENT TEAMS
PRODUCT MANAGERS
B U S I N E S S D I S C O V E R Y B U S I N E S S D E L I V E R Y
PRODUCT OWNERS
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ARCHITECTURE / TECHNICAL LEADS
PRODUCT OWNERSSTAKEHOLDERS DEVELOPMENT TEAMS
PRODUCT MANAGERS
B U S I N E S S D I S C O V E R Y B U S I N E S S D E L I V E R Y
PRODUCT OWNERS
Product Managers and Product Owners
Team 1
Team 2
Team 3
Team 4
A
B
C
D
E
Product Owner acts as SME to teamrepresent team to product managersbreak MBIs into components with Prod Mgrsbreak components into stories
Product Manager represent the stakeholdersprioritize MBIsbreak MBIs into componentsrepresent stakeholders to POs
Architects / Technical Leadsresponsible for technical dependencies across teamsprovide high level costs to Product Managers
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A1
B1
C1
A2
A1
B3
B2
B1
C2
C1
1. Define Business capabilities
2. Create MBIs
B1c
B2c
Blo
cked
B3c
A1dA2
B2B3
C2
3. Prioritize MBIs
4. Create high level stories
5. Assign to team backlogs
B1bB1a
A1cA1bA1a
B2bB2a
B3bB3a
Team Product Backlogs
Team 1
Team 2
Team 3
Team 4
A
B
C
ARCHITECTURE / TECHNICAL LEADS
PRODUCT OWNERSSTAKEHOLDERS DEVELOPMENT TEAMS
PRODUCT MANAGERS
B U S I N E S S D I S C O V E R Y B U S I N E S S D E L I V E R Y
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Lean Portfolio Management
1. The goal and benefit
2. Quantifying what a portfolio is investing in
3. What to work on... and how to rank them
4. Reorganizing the talent
5. Having an intake process
6. When have multiple portfolios
7. The big picture
8. Guiding principles
9. Challenges that will derail
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Often reducing batch size is all it takes to bring a system back into control.
Eli Goldratt
smaller vs. bigger chunks
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Take an Economic ViewTake an economic view. Select actions based on quantified overall economic impact.
If you quantify one thing, quantify the cost of delay.
Watch the work product, not the worker.
Principles of Product Development Flow. Don Reinertsen
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There is more value created with overall alignment than with local excellence.
Don Reinertsen
Visualize the result and allow teams to form their own solutions.
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actions to realize intentwhat to do and how
intentwhat to achieve and why
auto
no
my
alignment
the more alignmentyou have, the more autonomyyou can grant
Stephen BungayThe Art of Action
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A system must be managed. It will not manage itself. Left to themselves, components become selfish, competitive, independent profit centers, and thus destroy the system…
The secret is cooperation between components toward the aim of the organization.
W. Edwards Deming
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Lean Portfolio Management
1. The goal and benefit
2. Quantifying what a portfolio is investing in
3. What to work on... and how to rank them
4. Reorganizing the talent
5. Having an intake process
6. When have multiple portfolios
7. The big picture
8. Guiding principles
9. Challenges that will derail
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Time to add new high value functionality
Time Spent Fixing Bugs Within and Across Systems
Time lost to building things of less importance
Time Available for New Features
Years in future
Current ??? Years?
% o
f ca
pac
ity
Maximum capacity of the team
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Time to add new high value functionality
Time Spent Fixing Bugs Within and Across Systems
Time lost to building things of less importance
Time Available for New Features
Years in future
Current ??? Years?
% o
f ca
pac
ity
Maximum capacity of the team
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Lean Portfolio Management
✓ Our goal is business agility
✓ Starting at the front of the value stream is most effective and creates the context for everything else
✓ Systems thinking
✓ More alignment means more autonomy
Systems Thinking
Visibility of workflow
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ASSESSMENTSCONSULTING
TRAININGCOACHING
Lean ManagementProject Management
technical
Lean for ExecutivesProduct Portfolio ManagementBusiness Product OwnerProduct Owner
Leanban / Kanban / Scrum ATDD / TDD / Design Patterns
Onsite SPC Leading SAFe®Agile ArchitectureProduct Manager/PO