Optimizing Strategic Portfolio Planning
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Transcript of Optimizing Strategic Portfolio Planning
Optimizing Strategic Portfolio
PlanningThe Agile PMO: What Good Looks Like
Margo Visitacion, Vice President/Principal Analyst
November 9, 2016
Agenda
›Digital business drives Agile adoption and impacts how we
plan
› The Agile PMO: What good looks like
›Recommendations
4© 2016 Forrester Research, Inc. Reproduction Prohibited
“It is not the strongest of the
species that survives, not the
most intelligent, but the one
most responsive to change.”
- Charles Darwin
© 2016 Forrester Research, Inc. Reproduction Prohibited 5
5© 2016 Forrester Research, Inc. Reproduction Prohibited
Digital Empowers Customers And Creates Chaos
For Business
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Digital Business Has Industries Expecting Massive Disruption
Industry Next 12
months
Already
happening
Healthcare 24% 19%
Retail 28% 19%
Insurance 28% 10%
Business & Professional Services 28% 12%
Telecommunications 26% 20%
Pharmaceutical/Medical Systems 15% 23%
Technology Products 27% 18%
Travel & Transportation 26% 13%
Financial Services & Banking 13% 11%Source: Q# 2015 Forrester/Odgers Bernsten Online Digital Business Survey
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© 2016 Forrester Research, Inc. Reproduction Prohibited 7
*Forrester forecast
Digital Requires Increased Investment In New Technology
$885 $915 $954 $998 $1,032 $1,083
$343 $350 $368 $393 $420 $452
2012 2013 2014 2015 2016* 2017*
Total new projectspending
Total MOOSEspending
Total new project spending9.8% 2.0% 5.3% 6.9% 6.6% 7.7%
Total MOOSE spending 6.7% 3.4% 4.3% 4.6% 3.5% 5.0%
Total tech spending 7.6% 3.0% 4.5% 5.2% 4.4% 5.7%
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© 2016 Forrester Research, Inc. Reproduction Prohibited 8
Yet, CIO Spending Is Not In Alignment
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© 2016 Forrester Research, Inc. Reproduction Prohibited 9
New Tech Budget Categories Needed To Drive Better Portfolio Planning
1. Business-led tech initiatives outpace new project budgets.
2. Business innovation requires technology experimentation.
3. Business applications need updates and enhancements to
meet new demands.
4. Modern application development require more open-ended
funding.
Four forces are pushing the limits of current
tech budget categories:
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Agenda
›Digital business drives Agile adoption and impacts how we
plan
› The Agile PMO: What good looks like
›Recommendations
View the On-Demand Webcast: Planview.info/StrategicPortfolioPlanning
© 2016 Forrester Research, Inc. Reproduction Prohibited 11
Traditional Portfolio Management: Too Linear For Today’s Business World
Funnel AssessTrade off
AnalysisBacklog Monitor
Demand Management
“Feed the funnel”
Portfolio Management
“Selecting for value”
Resource Management
“Capacity to deliver value”
“What” You Do; Pick the right initiatives (Strategic)
Portfolio Review
“Maintaining velocity for the best value”
Execute
“Executional Excellence”
“How” You Do It: Deliver the right work –
right (Tactical)
Retro-
spective
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© 2016 Forrester Research, Inc. Reproduction Prohibited 12
Portfolio Management Needs An Agile Infusion
Customer focused
Product/value focused
Emphasis on throughput
Direct relationship to strategy
Operationally focused
Project focused
Emphasis on utilization
Tangential relationship to strategy
Agile
Tra
ditio
nal
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© 2016 Forrester Research, Inc. Reproduction Prohibited 13
Applying Agility In Portfolio Management
Product
Teams
Product
Teams
Product
Teams
Product
Teams
PMO + Product +
Dependent LOB
Product Teams
+ Stakeholders
Source: ADP/Forrester Research
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© 2016 Forrester Research, Inc. Reproduction Prohibited 14
How? Stop Thinking Inside Out
PMO
Command/Enforce
Reporting
TrainingTools
ProjectTemplates
What
methodology
should I push out?
How can I make
them listen to me?
How do I make
them use the tools
I selected?
Can I get support
for certification
training?
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© 2016 Forrester Research, Inc. Reproduction Prohibited 15
How? Start Thinking Outside In
PMO
Capacity Planning
Value Stream
Prioritization
Agile Leadership/Coaching
Analysis Portfolio
Ecosystem
Portfolio Facilitation
How do we select for
value?
What are our
Strategic themes?
What are the right
programs?
How do we help our
teams?
What do our customers
need?
Did we achieve our
objectives?
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© 2016 Forrester Research, Inc. Reproduction Prohibited 16
Three Characteristics Of Agile Planning Processes
Agile PMO as a facilitator
Agile PMO as a
facilitator
Agile PMO as an
analyst
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How The PMO Can Help
Chief strategist
Scrum
Master
COEs
Scrum
Teams
Virtual planning teams
Product OwnersArchitecture
Business
OwnersRelease Train Engineers
Value Stream Engineers
Finance Agile PMO
Develops framework and
cadence
Provides guidance
Facilitates process
Brings expertise Supports decision makers
Executes release trains
Delivery teams
Activity
decision maker
Accountable for
decision/execution outcome
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© 2016 Forrester Research, Inc. Reproduction Prohibited 18
Continuous Planning And Delivery At Large
Release Planning By Quarter
The Living Roadmap: Continuous Planning On A Cadence
Q1 Q2 Q3 Q4
Yearly Plans For Initiatives (Budget)
DevOps DevOps DevOps DevOps
Roadmap ReviewRoadmap Review Roadmap ReviewFY Planning FY Planning
Portfolio Update
Portfolio Update Portfolio UpdatePortfolio Update
Source: ADP/Forrester
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© 2016 Forrester Research, Inc. Reproduction Prohibited 19
Recommendations
1. Clarify the vision for the PMO with execs and come to agreement about
objectives, goals and outcomes
2. Put yourselves in your customer’s shoes
3. Use value streams to identify priorities and reduce waste
4. Measure your PMO on engagement and enablement
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Thank you
forrester.com
Margo Visitacion
Carina Hatfield
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