Decision making applications problem solving leadership practices step up, step back culture of...
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decision making applicati ons problem solving leadership practices step up, step back culture of trust collaboration considering risk
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decision making
applications
problem solving
leadership
practices
step up, step back
culture of trust
collaboration
considering
risk
decision
making
what do we do?
when do we do it?
when do we decide?
leaders must …
Build Trust?
deliver
the right
product
Always or Often Used:
20%
Never or Rarely Used:
64%
Standish Group Study, reported by CEO Jim Johnson, XP2002
Sometimes16%
Rarely19%
Never45%
Often13%
Always7%
and …
consistently deliver
business
value
deliver
value?what’s
that?
Business Value
Benefits
Value Calculation
Costscalculation
Defining Value
Business Value
Guess
Value Calculation
Estimate calculation
Valuing the Inputs
we need some help !
Purpose
Considerations
Costs and Benefits
Business Value Model
where
do
we
start?
Mission Vision Values
Strategic Intent ~ Strategy ~ Purpose
Long-Range Goals
Annual Objectives
Action Plans (what, who, when)
Individual Business ObjectivesTac
tica
lS
trat
egic
SWOT / 5Q
Start Here
MarketDifferentiating
High
Low
Mission CriticalLow High
Differentiate
Parity
Partner?
Who cares?
Purpose Based Alignment Model
MarketDifferentiating
High
Low
Mission CriticalLow High
Innovate,Create
Do we take this on?
Minimize or
Eliminate
Achieve andMaintain
Parity, Mimic,Simplify
Purpose Based Alignment Model
How about an example?
financial documentation system
3,000 functions!
MarketDifferentiating
High
Low
Mission CriticalLow High
What goes
here?
Anything here?
Anything here?
Most are usually here.
Purpose Based Alignment Model
350 differentiators
simplified the rest
focused
on
differentiators
results:
better product
cut time by 50%
60% cost reduction
MarketDifferentiating
High
Low
Mission CriticalLow High
Differentiate
Parity
Partner?
Who cares?
Strategy?
Sustainable Competitive advantage
strategy = sustainable
competitive advantage
the 5 questions:
1. Whom do we serve and what do they want and need most?
2. What do we provide to help them?
3. What is the best way to provide this?
4. How do we know we are succeeding?
5. How should we organize to deliver?
the “billboard” test…
You Think My Products Are Good?
You Should See My Chart of Accounts!
We invest more in our WMS than we do in product development
“To be the low cost airline.”
- Southwest Airlines
“Will this help us be
the low cost airline?”
- Southwest Airlines
strategy
creates
decision filters
decision filters:
make daily decisions
schedule projects
what
to develop
cascade decision
filters
throughout organization
single purchase,
multiple credit cards
How about another example?
requirescustomization
MarketDifferentiating
High
Low
Mission CriticalLow High
Differentiate
Parity
OR
MarketDifferentiating
High
Low
Mission CriticalLow High
Differentiate
pass the “billboard” test?
A fist full
of credit cards
Give Me Your Tired, Your Poor, Your Maxed Out Credit Cards
treat exceptions as exceptions
caveats
Managing Risks
List Three Professional Optionscommon sense not common
practice
parity is mission critical
purpose is not
priority
Differentiating
changes over
time
Leadership Influence
innovate!
Start Up
Exercise: Pick a project.Practicum
Pick an objective, a brand, or a project.
MarketDifferentiating
High
Low
Mission CriticalLow High
Differentiate
Parity
Partner?
Who cares?
What is the purpose?
What’s On Your Billboard?
your
decision
filter?
do you have any exceptions?
Purpose
Business Value Model
other
considerations ?
time
to
market
risks
Collaboration Model flexibility
Collaboration Model
dependencies
team size and experience
market uncertainty
domain knowledge
team capacity
technical uncertainty
your considerations?
prioritize
Purpose
Considerations
Business Value Model
costs
and
benefits
?
Purpose
Considerations
Costs and Benefits
Business Value Model
resolve differences
group chunks high – medium - low
What are your largest value chunks?
what can you defer?
What do you need to add to make a better decision?
“build”
a
chunk…
at the end
of the
“chunk”
adjust BV model
run features thru model
now you can ask…
Do we have enough business value to go to market?
Should we continue?
If so, what goes in the next iteration?
What goes in the next iteration?
did
the
value inputs
change?
adjust BV model
run features thru model
re- prioritize
value Modelob
jecti
ves
/ pr
ojec
ts /
idea
s
Valu
e M
odel
prio
ritize
d ch
unks build highest
value chunks
Do we have enough value to deploy?
defe
rred
Will we ever have enough value to deploy?
STOP
Yes
No
Adjust value model if inputs have changed
Purpose
Considerations
Costs and Benefits
Business Value Model
applications
problem solving
considering
risk
leadership
practices
step up, step back
culture of trust
collaborationdecision making
considering
risks
uncertainty
complexity
complexity team size
mission criticality
team location team capacity
domain knowledge gaps
dependencies
uncertainty market
uncertainty
technical
uncertaintyproject duration
dependents
Complexity
Un
cert
ain
ty
Low
Low
High
High
Complexity
Un
cert
ain
ty
Simple, young projects Need agility Tight Teams
Sheep Complex, mature market Need defined interfaces
Cows
Bulls Agility
to handle uncertainty Process definition
to cope with complexity
Laissez faire
Colts
Low
Low
High
High
Well behaved
Attribute Score
Market
Technical
Dependencies / Scope
Flexibility
Duration
Uncertainty Assessment
0
1
2
3
4
5
6
7
8
9
10
Market Uncertainty
Technical Uncertainty
Project Duration Uncertainty
Dependents/ Scope Flexibility
Complexity AssessmentAttribute Score
Team Size
Mission Critical
Geographical Dispersion
Team Maturity
Domain Knowledge
Dependencies
0
1
2
3
4
5
6
7
8
910
Dependencies
Geographical Dispersion
Team Maturity
Domain Knowledge
Team Size
Mission Critical
for your project…
Complexity
Un
cert
ain
ty
Low
Low
High
High
What type of project?
Attribute Score
Uncertainty Assessment
0
1
2
3
4
5
6
7
8
9
10
Complexity Assessment
Attribute Score
0
1
2
3
4
5
6
7
8
910
Project Management
How Do We Deliver?
What can you do to reduce the risks?
Purpose
Considerations
Costs and Benefits
Do these risks considerations change your value model?
Sheep Project
Cow Project
Colt Project
Bull Program
Remember: Loose Coupling and Strong Cohesion
Complexity
Un
cert
ain
ty
Trader Workstation
Sheep Matcher
Cows
Bulls Swiss Electronic
Stock Exchange
“Lights Out”
Colts
Low
Low
High
High
0.0
2.0
4.0
6.0
8.0
10.0
12.0
0.0 5.0 10.0 15.0 20.0 25.0 30.0
Complexity
Un
cer
tain
typortfolio management
summary
Purpose
Considerations
Costs and Benefits
Business Value Model
it’s
a
conversation
what do we do?
when do we do it?
when
do we decide?
Protect Team Boundaries
using the value modelo
bje
cti
ves
/ p
roje
cts
/ id
ea
s
Value Model
Va
lue
Mo
del
pri
ori
tize
d c
hu
nk
s
build highest value chunks
adjust VMif inputs changed
discuss value and value to
date
Enough value to go to market?
~ Yes? Deploy
~ No?
Continue?
~ No? Stop.
~ Yes?
