demystifying agile portfolio management

Demystifying Agile Portfolio Management

Today’s Presenter

Nils Davis Director Product Management, Innotas20+ years of experience in project & product

managementPreviously at Egress, Naehas, Accept, and

NetIQ in various leadership roles Avid blogger on strategy, product management,

planning, and innovationhttp://alltheresponsibility.com/www.nilsdavis.com

http://alltheresponsibility.com/

http://alltheresponsibility.com/

http://www.nilsdavis.com/

Agenda

What is Agile?

The Benefits of an Agile Approach

The Mystery of Agile Portfolio

Applying Agile To Your Portfolio

How Do We Get There?

Q&A

What Is “Agile?”Agile is NOT Scrum

Agile is NOT Kanban

Agile is an approach1. Make a list of all the things you want to do2. Possibly subdivide things that are too large to do in one chunk3. Stack rank the list by importance or business value4. Deliver the first thing on the list5. Repeat, starting from #1

Scrum is a methodology for applying agileo To the tasks in a project

Kanban can be used for applying agile

Compare To Waterfall Methodology

Waterfall iso Make a list of all the things you want to doo Figure out how long each thing takeso Order the list based on the most efficient use of resourceso Go through the list until done

Assumes you can accurately predict the futureAs a result change is bad and messes up your plansLeads to failures and results in poor value delivery

“Prediction is hard, especially about the future” o Yogi Berra

Benefits of an Agile Approach (Over Waterfall)

Optimizes for value delivery, not efficiencyo Always working on the most important thing

Use smaller increments to deliver value quickly (and reduce risk)

Assumes change and allows you to respond quickly

What’s So Mysterious?Portfolio

Project

The Agile Portfolio Continuum

What’s So Mysterious?

Agile Project Management

Portfolio

ProjectFaster Delivery of Project Value




Integrating Agile Projects with

PMO or Project Portfolio

Portfolio


Visibility of Agile Projects at the Portfolio Level






Adopting Agile Principles into

Portfolio Planning

Portfolio



Maximizing Value of Portfolio

(“Right Projects”)







Portfolio Planning


Portfolio Management

Portfolio





Responsive to Change To Drive Continuous Value

Faster







Portfolio Planning


Portfolio Management

Portfolio





Responsive to Change To Drive Continuous Value

Faster


Today’s Focus

Applying Agile To Your PortfolioDefine the business value of your portfolio items

Rank based on business value

Use smaller increments to deliver the value faster and reduce risk

Respond quickly when conditions change

“Agile Portfolio Management”

(NOT agile project management)o Same principle, applied very differently

A Basic Portfolio

Project Category NPV Start Date End DateRun 1 Run 1 7/2/15 1/1/16

Run 2 Run 1 1/2/16 7/1/16

Run 3 Run 1 7/2/16 1/1/17

Run 4 Run 1 1/2/17 7/1/17

Run 5 Run 1 7/2/17 1/1/18

Grow 1 Grow 3 7/2/15 7/1/16

Grow 2 Grow 5 1/2/16 1/1/17

Grow 3 Grow 8 7/2/16 7/1/17

Grow 4 Grow 7 1/2/16 1/1/18

Transform 1 Transform 10 7/2/15 1/1/17

Transform 2 Transform 15 7/1/16 1/1/18

Traditional Portfolio

1/1/16 7/1/16 1/1/17 7/1/17 1/1/18$0

$10

$20

$30

$40

$50

$60Cumulative Value Delivered

TransformGrowRun

NPV

($m

illio

ns)

1/1/16 7/1/16 1/1/17 7/1/17 1/1/18$0

$10

$20

$30

$40

$50


TransformGrowRun

NPV

($m

illio

ns)

Traditional Portfolio – Future Risk

The Future

1/1/16 7/1/16 1/1/17 7/1/17 1/1/18$0

$10

$20

$30

$40

$50


TransformGrowRun

NPV

($m

illio

ns)


?

1/1/16 7/1/16 1/1/17 7/1/17 1/1/18$0

$10

$20

$30

$40

$50


TransformGrowRun

NPV

($m

illio

ns)


Challenges• Value is back loaded• High risk• Not responsive to change• Predicting the future

1/1/16 7/1/16 1/1/17 7/1/17 1/1/18$0

$10

$20

$30

$40

$50


TransformGrowRun

NPV

($m

illio

ns)

Traditional Portfolio – Value Delivery

1/1/16 7/1/16 1/1/17 7/1/17 1/1/18$0

$10

$20

$30

$40

$50


TransformGrowRun

NPV

($m

illio

ns)

1/1/16 7/1/16 1/1/17 7/1/17 1/1/18$0

$10

$20

$30

$40

$50


TransformGrowRun

NPV

($m

illio

ns)

Agile Portfolio – Accelerating Value

1/1/16 7/1/16 1/1/17 7/1/17 1/1/18$0

$10

$20

$30

$40

$50


TransformGrowRun

NPV

($m

illio

ns)

Agile Portfolio – Accelerating Value

1/1/16 7/1/16 1/1/17 7/1/17 1/1/18$0

$10

$20

$30

$40

$50


TransformGrowRun

NPV

($m

illio

ns)

Value DeliveredSooner

1/1/16 7/1/16 1/1/17 7/1/17 1/1/18$0

$10

$20

$30

$40

$50


TransformGrowRun

NPV

($m

illio

ns)

1/1/16 7/1/16 1/1/17 7/1/17 1/1/18$0

$10

$20

$30

$40

$50


TransformGrowRun

NPV

($m

illio

ns)

Agile Portfolio – But The Future?

Value DeliveredSooner ?

1/1/16 7/1/16 1/1/17 7/1/17 1/1/18$0

$10

$20

$30

$40

$50


TransformGrowRun

NPV

($m

illio

ns)

1/1/16 7/1/16 1/1/17 7/1/17 1/1/18$0

$10

$20

$30

$40

$50


TransformGrowRun

NPV

($m

illio

ns)

Agile Portfolio – Change Happens


1/1/16 7/1/16 1/1/17 7/1/17 1/1/18$0

$10

$20

$30

$40

$50


TransformGrowRun

NPV

($m

illio

ns)

1/1/16 7/1/16 1/1/17 7/1/17 1/1/18$0

$10

$20

$30

$40

$50


TransformGrowRun

NPV

($m

illio

ns)

Agile Portfolio – Change Is Opportunity


1/1/16 7/1/16 1/1/17 7/1/17 1/1/18$0

$10

$20

$30

$40

$50


TransformGrowRun

NPV

($m

illio

ns)

1/1/16 7/1/16 1/1/17 7/1/17 1/1/18$0

$10

$20

$30

$40

$50


TransformGrowRun

NPV

($m

illio

ns)

Agile Portfolio – Change Is Opportunity

Additional Value Discovered


Plan Based On Value

Visualize Portfolio

Value Velocity

Breakdown Large

Objects to Deliver Value Faster

Continually Compare Plan to Actuals

“Predict But Verify”

How Do You Get There?

The Agile Portfolio

Agile Potholes – Dealing With Reality

Sunk costs

Different scales make comparison hardero Interesting things don’t take one sprint to deliver

Dependencies

Wrap Up

Agile is an Approach

Every Organization Can Apply “Agile”

Applying Agile Principles to Your Portfolio Yields Faster Delivery of Value

Combination of Tools and Process

Start Somewhere on The Agile Portfolio Continuum

Innotas Company Overview

Cloud portfolio management solutions to improve value contribution by connecting planning & execution

Disruptive technology and a history of market “firsts” – most recently Predictive Portfolio Analysis (PPA)

500+ customers, including proven enterprise-wide deployments in Healthcare, Financial Services, Technology, Government, and Education

Project Portfolio ManagementEffectively manage project requests, resources, budgets and projects

Application Portfolio ManagementAnalyze and manage IT tasks needed to sustain existing operations

Predictive Portfolio AnalysisPredict, plan, and re-plan your highest value portfolio that aligns with business goals

Resource ManagementProductive alignment of IT resource capabilities and availability

Four-Time“Leader”

“Leader” Cloud-nativeMulti-tenant

“Leader”

Q&A

Phone: +1 866-692-7362

Email: [email protected]

Twitter: @innotas

LinkedIn: http://www.linkedin.com/company/innotas

Blog: blog.innotas.com

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