decision

1

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

collaborative leadership
and 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

calculation
Value Calculation
Benefits
11

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 sustainable competitive
advantage

• Sustainable
• Competitive advantage

25

Strategy?
High
Differentiate
Partner?
Market Differentiating
Who cares?
Parity
Low
High
Low
Mission Critical
26
strategy creates decision filters

27

• 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?

28
the billboard test
29
You Think My Products Are Good? You Should See
My Chart of Accounts!
30
We invest more in our WMS than we do in product
development
31
To be the low cost airline.
- Southwest Airlines
32
Will this help us be the low cost
airline? -
Southwest Airlines
33

• cascade
• decision
• filters
• throughout
• organization

34

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

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

Business Value Model
Purpose
Considerations
Costs and Benefits
50
other considerations
?
51
time to market
52

risks
53

• Collaboration Model

flexibility
54

dependencies

• Collaboration Model

55

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

56

Purpose
Considerations
Costs and Benefits
57
conversation

58

resolve differences

59
group chunks high medium - low
60
at the end of the chunk

61
did model inputs change?
62
adjust BV model run features thru
model
63

now you can ask
64

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

65

• Should we continue?

66

• If so, what goes in the next iteration?

67
adjust BV model run features thru
model re- prioritize
68
Lets give it a go.
69
Start Up

• Exercise Pick a project.

Practicum Pick an objective, a brand, or a
project.
70

What is the purpose?
High
Differentiate
Partner?
Market Differentiating
Who cares?
Parity
Low
High
Low
Mission Critical
71

• 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?

72
Whats On Your Billboard?
73

• Does
• purpose
• yield a
• decision
• filter?

74

Purpose
75

your considerations?
76
prioritize
77
costs and benefits ?
78

Business Value Model
Purpose
Considerations
Costs and Benefits
79

resolve differences

80
group chunks high medium - low
81
add what to make better decisions ?

• Transaction
• Costs

82
build some chunks
83
at the end of the chunk

84

• did
• the value inputs change?
  

85
market window moves out
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

Colt Project
Bull Program
Sheep Project
Cow Project
Remember Loose Coupling and Strong Cohesion
97

High
Bulls
Colts

• Trader Workstation

• Swiss Electronic Stock Exchange

Uncertainty
Cows
Sheep

• Matcher

• Lights Out

Low
Low
High
Complexity
98

portfolio management

Uncertainty
Complexity
99

summary
100

Business Value Model
Purpose
Considerations
Costs and Benefits
101
its a conversation
102

what do we do?
103

when do we do it?
104
when do we decide?

• Protect Team Boundaries

105

• 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
106