Lean Portfolio Management - Net Objectives...copyright (c) Net Objectives, Inc. All Rights Reserved....

copyright (c) Net Objectives, Inc. All Rights Reserved.

4 September 2018

1

Al ShallowayCEO, Enterprise Consultant

Lean Portfolio Management

© Copyright Net Objectives, Inc. All Rights Reserved© Copyright Net Objectives, Inc. All Rights Reserved 3

Al ShallowayCEO, Founder

[email protected]

@AlShalloway

Co-founder of Lean-Systems SocietyCo-founder Lean-Kanban University Contributor to SAFe


4 September 2018

2


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



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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3


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


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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4


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


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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5


a blockage anywhere

is a blockage

everywhere









7. The big picture




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6


Clarify the Business Mission with Stakeholders


Agree on Value Weightings


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7









7. The big picture




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)


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


Evaluate and Rank Current MBIs by Business Value


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10









7. The big picture




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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11









7. The big picture




Get while the getting is good


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12


too many projects

projects too large

value delivered too late

the more we pushthe more we fall behind


here’s a spot!

…and another!

Operating a product development process near full utilization is an economic disaster. – Don Reinertsen


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13


Why would we start building an increment of value that would slow down something of greater value?









7. The big picture




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14


What if we have multiple portfolios?


Clarify the Business Mission with Enterprise Stakeholders


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7. The big picture




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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16


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


Create MBIs

Sequence MBIs

Create features




TE

AM

PR

OG

RA

MP

OR

TF

OL

IO

Business Planning


Create MBIs

Sequence MBIs

Create features



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17


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


Create MBIs

Sequence MBIs

Create features




TE

AM

PR

OG

RA

MP

OR

TF

OL

IO

Ready to Pull


Create MBIs

Sequence MBIs

Create features



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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


Agile at ScaleTeam Product Backlogs

Team 1

Team 2

Team 3

Team 4

A

B

C

D

E

ARCHITECTURE / TECHNICAL LEADS

STAKEHOLDERS DEVELOPMENT TEAMS


PRODUCT OWNERS


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19


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


STAKEHOLDERS DEVELOPMENT TEAMS



Product Managers and Product Owners

Team 1

Team 2

Team 3

Team 4

A

B

C

D

E


PRODUCT OWNERSSTAKEHOLDERS DEVELOPMENT TEAMS

PRODUCT MANAGERS


PRODUCT OWNERS


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20




PRODUCT MANAGERS


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


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



PRODUCT MANAGERS



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7. The big picture




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


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


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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7. The big picture




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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25


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

51© Copyright Net Objectives, Inc. All Rights Reserved 51


✓ 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


4 September 2018

26


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

Lean Portfolio Management - Net Objectives...copyright (c) Net Objectives, Inc. All Rights Reserved....

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