decision

1





leadership practices
applications
collaboration
decision making
step up, step back
considering risk
problem solving
culture of trust
2

decision making
3
what do we do?
when do we do it?
when do we decide?
4

leaders must
5
deliver the right product

• Build Trust?

6

Never or Rarely Used 64
Always or Often Used 20
Sometimes 16
Rarely 19
Often 13
Never 45
Always 7
Standish Group Study, reported by CEO Jim
Johnson, XP2002
7

and
8
consistently delivers business
value
9

• deliver
• value?
• whats that?

10

Defining Value
calculation
Value Calculation
Benefits
11

Valuing the Inputs
calculation
Value Calculation
Guess
12

we need some help !
13

Business Value Model
Purpose
Considerations
Costs and Benefits
14

• where
• do
• we
• start?

15

Mission
Vision
Values
Strategic Intent Strategy Purpose
Strategic
Long-Range Goals
Start Here
SWOT / 5Q
Annual Objectives
Action Plans (what, who, when)
Tactical
Individual Business Objectives
16

Purpose Based Alignment Model
High
Differentiate
Partner?
Market Differentiating
Who cares?
Parity
Low
High
Low
Mission Critical
17

Purpose Based Alignment Model
High
Innovate, Create
Do we take this on?
Market Differentiating
Achieve and Maintain Parity, Mimic, Simplify
Minimize or Eliminate
Low
High
Low
Mission Critical
18

• How about an example?

financial documentation system
19
3,000 functions!

20

Purpose Based Alignment Model
High
What goes here?
Anything here?
Market Differentiating
Anything here?
Most are usually here.
Low
High
Low
Mission Critical
21
350 differentiators

22
focused on
differentiators
simplified the rest
23

• results
• better product
• cut time by 50
• 60 cost reduction

24

Strategy?
High
Differentiate
Partner?
Market Differentiating
Who cares?
Parity
Low
High
Low
Mission Critical
25
strategy sustainable competitive
advantage

• Sustainable
• Competitive advantage

26

• 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?

27
the billboard test
28
You Think My Products Are Good? You Should See
My Chart of Accounts!
29
We invest more in our WMS than we do in product
development
30
To be the low cost airline.
- Southwest Airlines
31
Will this help us be the low cost
airline? -
Southwest Airlines
32
strategy creates decision filters

33

• decision filters
• make daily decisions
• schedule projects
• what to develop

34

• cascade
• decision
• filters
• throughout
• organization

35

• How about another example?

single purchase, multiple credit cards
36
requires customization
37

High
Differentiate
Market Differentiating
OR
Parity
Low
High
Low
Mission Critical
38

High
Differentiate
Market Differentiating
Low
High
Low
Mission Critical
39
pass the billboard test?
40
A fist full of credit cards
41
Give Me Your Tired, Your Poor, Your Maxed Out
Credit Cards
42
treat exceptions as exceptions
43

caveats
44
Managing Risks

• List Three Professional Options

common sense not common practice
45
parity is mission critical
46
purpose is not priority
47
Differentiating changes over
time
48

• Leadership Influence

innovate!
49
Start Up

• Exercise Pick a project.

Practicum Pick an objective, a brand, or a
project.
50

What is the purpose?
High
Differentiate
Partner?
Market Differentiating
Who cares?
Parity
Low
High
Low
Mission Critical
51
Whats On Your Billboard?
52

• your
• decision
• filter?

53

do you have any exceptions?
54

Business Value Model
Purpose
55
other considerations
?
56
time to market
57

risks
58

• Collaboration Model

flexibility
59

dependencies

• Collaboration Model

60

• team size and experience
• market uncertainty
• domain knowledge
• team capacity
• technical uncertainty

61

your considerations?
62
prioritize
63

Business Value Model
Purpose
Considerations
64
costs and benefits ?
65

Business Value Model
Purpose
Considerations
Costs and Benefits
66

resolve differences

67
group chunks high medium - low
68
What are your largest value chunks?
69

what can you defer?
70
What do you need to add to make a better decision?

71
build a chunk
72
at the end of the chunks

73
did model inputs change?
74
adjust BV model run features thru
model
75

now you can ask
76

• Do we have enough business value to go to market?
  

77

• Should we continue?

78

• If so, what goes in the next iteration?

79
adjust BV model run features thru
model re- prioritize
80
at the end of the chunk

81

• did
• the value inputs change?
  

82

• value Model

STOP
build highest value chunks
No
Will we ever have enough value to deploy?
prioritized chunks
Adjust value model if inputs have changed
objectives / projects / ideas
Value Model
Do we have enough value to deploy?
Yes
deferred
83

• using the value model

Enough value to go to market? Yes? Deploy
No?
build highest value chunks
prioritized chunks
adjust VMif inputs changed
objectives / projects / ideas
Value Model
Continue? No? Stop. Yes?
discuss value and value to date
Value Model
84

Business Value Model
Purpose
Considerations
Costs and Benefits
85





leadership practices
applications
collaboration
decision making
step up, step back
considering risk
problem solving
culture of trust
86

considering risks
87
uncertainty
complexity
88

• team size
• mission criticality
• team location
• team capacity
• domain knowledge gaps
• dependencies

complexity

89

• uncertainty
• market
• uncertainty
• technical uncertainty
• project duration
• dependents

90

High
Uncertainty
Low
Low
High
Complexity
91

High
Bulls
Colts

• Simple, young projects

• Agility to handle uncertainty

• Need agility

• Tight Teams

• Process definition to cope with complexity

Uncertainty
Cows
Sheep

• Complex, mature market

• Laissez faire

• Need defined interfaces

• Well behaved

Low
Low
High
Complexity
92

Uncertainty Assessment
Attribute Score
Market
Technical
Dependencies / Scope Flexibility
Duration
93

Market Uncertainty
10
9
8
7
6
5
4
3
2
1
Technical Uncertainty
Dependents/ Scope Flexibility
0
Project Duration Uncertainty
94

Complexity Assessment
Attribute Score
Team Size
Mission Critical
Geographical Dispersion
Team Maturity
Domain Knowledge
Dependencies
95

Dependencies
10
9
8
7
Mission Critical
6
Geographical Dispersion
5
4
3
2
1
0
Team Size
Team Maturity
Domain Knowledge
96

• for your project
• 
  

97

What type of project?
High
Uncertainty
Low
Low
High
Complexity
98

Uncertainty Assessment
Attribute Score




99

100

Complexity Assessment
Attribute Score






101

102
Project Management
What can you do to reduce the risks?

• How Do We Deliver?

103

Do these risks considerations change your value
model?
Purpose
Considerations
Costs and Benefits
104

Colt Project
Bull Program
Sheep Project
Cow Project
Remember Loose Coupling and Strong Cohesion
105

High
Bulls
Colts

• Trader Workstation

• Swiss Electronic Stock Exchange

Uncertainty
Cows
Sheep

• Matcher

• Lights Out

Low
Low
High
Complexity
106

portfolio management

Uncertainty
Complexity
107

summary
108

Business Value Model
Purpose
Considerations
Costs and Benefits
109
its a conversation
110

what do we do?
111

when do we do it?
112
when do we decide?

• Protect Team Boundaries

113

• using the value model

Enough value to go to market? Yes? Deploy
No?
build highest value chunks
prioritized chunks
adjust VMif inputs changed
objectives / projects / ideas
Value Model
Continue? No? Stop. Yes?
discuss value and value to date
Value Model
114