online enterprise agile portfolio management training

Copyright© Agile Transformation Inc | www.AgileTraining.com

8/26/2014

Re-Thinking Portfolio and Capacity Planning

Copyright(c) Agile Transformation Inc.

About Me – Sally Elatta • President Agile Transformation Inc. • Author/Publisher of www.AgileVideos.com • Leading Agile Transformation Coach, Trainer and Speaker • Agile Portfolio Transformation Book (In the works!) • Certified by PMI, ScrumAlliance, IBM, Microsoft, ICAgile • Trained thousands and helped coach dozens of teams on Agile • Agile Expert for PMI.org LEAD CoP

2 2 1

I am simply a transformer. Someone who is really

passionate about transforming individuals, teams and

organizations to doing what they do better. I believe in

Servant Leadership as the way to lead change and create a

culture of empowered collaborative high performing teams.

http://www.agilevideos.com/


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Let’s Talk About

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Thinking Workshop

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Top Challenges/Drivers for Change

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Silos, handoffs, heavy processes,

lack of trust/ communication

Planning and estimating methods setup the project for

failure

Gov contracts attempt to fix

everything upfront and mandate heavy

processes

Slow time to completion, too long

to deliver

Inherited a tangled mess of non-

integrated legacy applications

Quality and rework issues

Missing, incomplete, changing,

ambiguous requirements

No value/ ROI measurement, only

focus on cost measurement

Lack of clear direction, no

engaged customer, wasteful meetings

Heavy engineering and testing

processes, no automation

Lack of empowerment, low engagement and

morale

Specialized roles, ‘not my task’ thinking

Testing occurs at the end (too late)

resulting in many defects

Overproduction, working on wasteful

features


A High Performance Culture

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Who are we and how do we behave? What is important now? Why?

Can we stay focused till ‘Done’? How do we deliver value and measure success?

Clarity

Focus Execution


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RE-THINKING PORTFOLIO MANAGEMENT

What are the 6 levels of Agile planning? How is Agile Portfolio Management Differ from Traditional Approaches? What does the Agile/Lean Portfolio Lifecycle look like?

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From Silos to Collaboration

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Workshop – The Multitasking Game!

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The Multitasking Name Game

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What Problem are We Trying to Solve?

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• Starting too many things

• No single point of entry

• No gate/qualification

• False illusion of progress by getting things started

• Constant resource shifting causing lack of focus

• No understanding of capacity

• Backlogs are not ‘ranked’

• Lack of clarity, focus, execution discipline

Multitasking People on Several Projects at the Same Time

This is the # Killer of

Organizational Productivity


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Asking the Wrong Questions

• We’re asking the wrong questions: • ‘Which resources are available’ instead of ‘Which team is ready to pull this project into their backlog’

• ‘How can I have an enterprise view of my resources’ instead of ‘How can I have an enterprise view of my execution teams’

• ‘What is our enterprise capacity in terms of resource hours’ instead of ‘What is our enterprise velocity per Quarter?’

• Pushing projects beyond capacity actually causes an organization to slow down!

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1

2

3

4

5

Strategic Planning

Strategic Planning by Executive Leaders

Portfolio Planning

Portfolio Planning by Customer Unit

Product/Program Planning Product Planning by Product Managers

Release Planning

Release Planning by Product Owner/Team

Iteration Planning

Iteration Planning by Team/PO

6 Levels of Agile Planning

6 Daily Planning

Daily Task Planning by Team

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Agile Portfolio Lifecycle

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The Agile Lifecycle

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The Basic Team Structure

Business Vision What? Why?

Team Facilitator

Technical Vision

How

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Backlog

Measurement


Program Team (Scrum of Scrums)

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Program Leadership Team PU

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Portfolio Team

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Portfolio Management Team

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Enterprise Stable Teams View

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What the CEO Thinks

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http://agileforgovernment.com/real-transformation-videos/


“Enterprise Command Center” Aligning Delivery with Strategy

The Vision: BCBSNE will have an engaged and collaborative workforce unified

in their pursuit of common goals and efficiently delivering on key initiatives.

Stable Teams

3 Year Roadmap Strategic Objectives & Projects

Key Performance Indicators

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http://agilevideos.com/videos/ceo-steve-martin-talks-agile-transformation/


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Sample Point and Cost Burn Up Chart

What is ‘Done’? How much did it cost me?

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Sample Enterprise Capacity Table

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Enterprise capacity is estimated by how many

points your stable teams can deliver per quarter.


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Top Metrics for Success

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Predictable Velocity

• Variance between target vs. actual velocity/throughput

Time to Market, Early Delivery

• How much faster are we delivering work? Lead and Cycle time reduction

Value/ROI

• Number of releases and number of features per release.

Quality

• Escaped defects

Confidence and Satisfaction

• Team happiness and confidence

• Customer satisfaction and confidence

Collaboration

• Are we more collaborative within IT and between IT and Business partners?


TeamHealth = Enterprise Health

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Decision Time!!

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How do we structure our teams so they can deliver value against our strategic initiatives?

How do we solve the ‘Project work vs. Support work’ problem so teams can have focus?

Do we specialize teams to focus on a specific area of work (BI, Web, by Customer, Membership, Claims..etc) or do we build generalizing teams that can ‘pull’ any project? Maybe both?

How do we handle shared resources who are SMEs?

Should we continue the current project for this team or stop it? Which item will this team pull next?

How many enterprise teams do we have and what is our capacity?


Key Points - Summary

Executives and Leaders Need Education on Agile/Lean Portfolio Management

Create Ranked Backlogs based on Value/Risk/Dependency

Break ‘Projects’ Down to Shorter Deliverables

Teams ‘Pull’ Next Deliverable Based on Capacity

Stop or Reduce Project Multi-Tasking.

Think: CLARITY | FOCUS | EXECUTION | CULTURAL TRANSFORMATION

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• Download this presentation from: www.agileforgovernment.com/download

• Watch Free Videos: http://www.AgileVideos.com

• Contact Us: [email protected] [email protected]

Download This Presentation

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Leaders in Agile Transformations! Transformation Strategy Planning | Executive & Team Coaching |

Training | Agile Assessments

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agileforgovernment.com/download

http://www.agilevideos.com/


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TRANSFORMATION ROADMAP

Concrete steps for Piloting, Scaling, Enterprise Concrete learning roadmap

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Transformation Phases

Copyright© Agile Transformation Inc

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Transformation Roadmap


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Learning Roadmap


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Additional Considerations

Planning for Agile Program teams

• Teams working on the same larger initiative will need additional coordination through a program leadership team.

Agile/Lean Portfolio Management

• If the organization desires for teams to pull from an enterprise/portfolio ranked backlog, then an Agile portfolio leadership team needs to be stood up and trained.

Distributed Teams

• Where the team members are located may impact the design of the team and their speed towards Agile maturity.

Strong ScrumMasters

• Standing up several teams at the same time following an aggressive schedule requires strong ScrumMasters supporting the coaches.

Management Support

• Lack of understanding or support by middle management will potentially kill the transformation


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WHY AGILE? DOES IT WORK?

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DATA OVERLOAD WARNING!

• This next part will likely result in..

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Comparing Success Factors by Method (Scale is from -10 to +10).

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Bottom Line from Survey Data

Data from 15183 respondents worldwide suggests

consensus on 67% more productivity, 65% more

Quality and 49% better on cost compared with

traditional methods.

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Source : The Business Value of Agile Software Methods by Dr. F Rico, Dr. H Sayani, Dr. S Sone Page 89


Bottom Line from Case Studies

79 studies with quantitative data proves average

ROI of 1872% ($20 return for $1 invested) for

Agile - ROI is due to

high productivity and high quality

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Source : The Business Value of Agile Software Methods by Dr. F Rico, Dr. H Sayani, Dr. S Sone


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ROI of Agile Methods vs. Traditional

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Source : The Business Value of Agile Software Methods by Dr. F Rico, Dr. H Sayani, Dr. S Sone Picture Souce: www.People10.com


Standish Group. (2012). Chaos manifesto. Boston, MA: Author.

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Agile Traditional

Success

42%

Failed

9%

Challenged

49%

Success

14%

Failed

29%

Challenged

57%

Agile vs. Traditional Success

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http://www.people10.com/


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• Dozens of surveys of agile methods since 2003 • 100s of Agile and CMMI case studies documented • Agile productivity, quality, and cost better than CMMI

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Rico, D. F. (2008). What is the return-on-investment of agile methods? Retrieved February 3, 2009, from http://davidfrico.com/rico08a.pdf

Rico, D. F. (2008). What is the ROI of agile vs. traditional methods? TickIT International, 10(4), 9-18.

Agile vs. CMMI

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• Analysis of 23 agile vs. 7,500 traditional projects • Agile projects are 54% better than traditional ones • Agile has lower costs (61%) and fewer defects (93%)

Mah, Michael. QSM (2008). Measuring agile in the enterprise: Proceedings of the Agile 2008 Conference, Toronto, Canada.

Project Cost in Millions $

0 . 75

1 . 50

2 . 25

3 . 00

2 . 8

1 . 1

Before Agile

After Agile

61% Lower Cost

Total Staffing

18

11

Before Agile

After Agile

39% Less Staff

5

10

15

20

Delivery Time in Months

5

10

15

20

18

13 . 5

Before Agile

After Agile

24% Faster

Cumulative Defects

625

1250

1875

2500

2270

381

Before Agile

After Agile

93% Less

Defects

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E

E

F

F

Cost, Time, Staffing, Quality (QSM)

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Hoque, F., et al. (2007). Business technology convergence. The role of business technology

convergence in innovation and adaptability and its effect on financial performance. Stamford, CT:

BTM Institute. 45

• Study of 15 agile vs. non-agile Fortune 500 firms • Based on models to measure organizational agility • Agile firms out perform non agile firms by up to 36%

Agility = Above Industry Performance

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Benefits Realized from Agile Adoption

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Ver

sio

nO

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Stat

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f A

gile

Su

rvey

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Agile Adoption – Future Predictions

• PMI has put their full weight behind Agile which will lead to faster global acceptance and adoption of Agile.

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Gartner predicts that 80% of all software projects will move to Agile in the next couple of years.

AGILE IN THE GOVERNMENT (CASE STUDIES)

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• 80% of worldwide IT projects use agile methods • Includes regulated industries, i.e., DoD, FDA, etc. • Agile now used for safety critical systems, FBI, etc.

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Industry

Shrink Wrapped

Electronic Commerce

Health Care

Law Enforcement

Org

20 teams 140 people 5 countries

Size

15 teams 90 people Collocated




U.S. DoD

Primavera

Google

Stratcom

FBI

FDA

Project

Primavera

Adwords

SKIweb

Sentinel

m 2000

Purpose

Project Management

Advertising

Knowledge Management

Case File Workflow

Blood Analysis

1,838 User Stories 6,250 Function Points 500,000 Lines of Code

Metrics

26,809 User Stories 91,146 Function Points 7,291,666 Lines of Code

1,659 User Stories 5,640 Function Points 451,235 Lines of Code

3,947 User Stories 13,419 Function Points 1,073,529 Lines of Code

390 User Stories 1,324 Function Points 105,958 Lines of Code

Rico, D. F. (2010). Lean and agile project management: For large programs and projects. Proceedings of the First International Conference on Lean

Enterprise Software and Systems, Helsinki, Finland, 37-43.

Industries Adopting Agile

Rico, D. F., Sayani, H. H., & Sone, S. (2009). The business value of agile software methods: Maximizing ROI with just-in-time processes and

documentation. Ft. Lauderdale, FL: J. Ross Publishing.

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The FBI’s Sentinel Project Succeeds with Agile

• Project: Sentinel came under it’s $451 Million revamped budget • Source: http://bit.ly/PKayyX

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“After almost a decade of mismanagement and

waste at the FBI (costing $597 Million), its CIO

turned the agency's maligned case management

implementation into an agile project. Two years

later (and $99 Million), the system is live. This

relative success, as well as the example of other

federal agencies, shows that agile can work in

Washington.” - By Jason Bloomberg

http://bit.ly/PKayyX

http://bit.ly/PKayyX


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Agile in the Government

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The US Army Software Radio was also a large multi-billion dollar Waterfall project saved by Agile methods in the 11th hour. A small Agile team finished all the hardware and software at a fraction of the total budget delivering a complex system on time.

Agile methods are now being used to complete the avionics software systems for both the F35 and F22.

The Ministry of Defense, US Veteran Affairs, the UK Government Digital Service, in India, Australia and New Zealand have all demonstrated that Agile can work for Governments.


Agile Government – Really??

• Department of Defense CIO Teri Takai’s new mission statement: • "To deliver agile and secure information capabilities to enhance combat

power and decision-making."

• DOD looks to reduce overall spending by $500 billion over 10 years.

• The GAO report profiles agile initiatives from the Department of Defense, NASA, the US Patent and Trademark Office, the VA and the IRS.

• Source: http://bit.ly/PMPTIa - Jason Bloomberg www.cio.com

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http://bit.ly/PMPTIa



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Agile Government - Really??

• Agile and iterative development is now backed by the top leaders in the Government: • Vivek Kundra: the former federal CIO called for adoption of cloud services and other "light technologies" and advocated modular IT projects where "usable functionality" gets delivered every six months.

• Steven VanRoekel: the new federal CIO calls on agencies to embrace modular development and “run our projects in lean startup mode”

• Source: http://bit.ly/PMPTIa

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Beware The Spiral of Death!

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online enterprise agile portfolio management training

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