Applying agile Principles to Portfolio Management

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Get More Done By Doing Less
Applying agile Principles to Portfolio
Management
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Get More Done By Doing Less
Kent J. McDonaldBusiness Systems Coach,
Knowledge Bridge Partners Founding Partner,
Accelinnova
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Agenda Overview

• The Problem
• Leadership Models
• Applying Models to Portfolio Management

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The Problem

• Too much to do
• Not enough time to get it all done
• No good way to find more time

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Features and Functions

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

• Collaborate
• Iterate
• Serve the Team
• Consider Context
• Practice Excellence
• Reflect and adapt
• Deliver value

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agile Portfolio Management

• Deciding
• What projects (not) to pursue
• What features (not) to include
• What practices (not) to follow

Get More Done By Doing Less
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Leadership Models
Strategy
Collaboration
Business Value
Embrace Change
Real Options
Cultivate Innovation
Project Governance
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Leadership Models

Strategy
Collaboration
Business Value
Embrace Change
Real Options
Cultivate Innovation
Project Governance
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Strategic Development

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

Cost
Differentiation
Cost Leadership
Product Leadership
Broad
Strategic Scope
Best Customer Solution
Narrow
Where is Your Organization ?
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Defining Strategy

• Answer These Questions
• Whom do we serve and what do they want and need
  most?
• What services do we provide to help them?
• How do we know were doing a good job?
• What is the best way to provide these services?
• How should we organize to deliver these services?
• Identifies Strategic Decision Filters

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Purpose Based Alignment

• Will this activity differentiate us in the
  marketplace?
• Is this activity mission critical to our
  operation?

Purpose does not equal Priority
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Purpose Based Design
Work with someone else
Be Creative
No Design, Mimic existing Best practices
Dont Bother
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Leadership Models

Strategy
Collaboration
Business Value
Embrace Change
Real Options
Cultivate Innovation
Project Governance
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Project Differences

High
Bulls
Colts
Simple, young projects.
Agility to handle uncertainty
Process definition to cope with complexity
Need agility
Tight Teams
Skunks
Uncertainty
Cows
laissez faire
Complex, mature market
Dogs
Need defined interfaces
Dogs
Low
Low
High
Project Complexity
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Partitioning

Colt Project
Bull Program
Dog Project
Cow Project
Remember Loose Coupling and Strong Cohesion
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Leadership Models

Strategy
Collaboration
Business Value
Embrace Change
Real Options
Cultivate Innovation
Project Governance
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Business Value

• Business Value is impact of project on bottom
  line
• Should be presented as a model rather than
  statements
• Value Model inputs are project constraints
• Used as measure of success

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Value Models

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Project Purpose

• Optimists View
• What job is the project trying to get done?
• Pessimists View
• What problem is the project trying to solve?

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Considerations

• Things that could impact value provided by
  Project
• Risks
• Issues
• Assumptions
• Constraints

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What Value Models Do

• Establish definition of value
• Another way of expressing vision
• Provides measuring stick for success

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Why Revisit Plan vs Actual
Expected Benefits
Real Benefits
Actual ROI
Planned ROI
Real Costs
Expected Costs

• Revisiting Value Model allows team to see the
  move from Planned to Actual

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Levels of Value

• Definition of Value

Plan for achieving Value
Means of achieving value
How projects deliver value
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Real Options

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Leadership Models

Strategy
Collaboration
Business Value
Embrace Change
Real Options
Cultivate Innovation
Project Governance
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Collaboration Process

• None of us are as smart as all of us.
  Japanese Proverb

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Collaboration Model

• Open Environment
• Right People
• Foster Innovation Collaboration Process
• Step Back

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Collaboration Process

• Agree to goals, objectives, purpose
• Brain write
• Group
• Prioritize
• Individuals volunteer for what and by when

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Applying Models to Portfolio Management
Project Portfolio
Leadership Models
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Applying Models to Portfolio Management

• What is the project Purpose?
• Does the purpose align with decision filters?

• Yes Continue!
• No Stop!
• What Decision Filters? Go back and define
  some.

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Applying Models toPortfolio Management

• What is the Projects Purpose Based Alignment?
• Answer determines design approach

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Applying Models toPortfolio Management

• What is the projects complexity?
• What is the projects uncertainty?
• Answers determine
• Methodology
• PM skills needed

Uncertainty
Project Complexity
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Applying Models toPortfolio Management

• Collaborate to understand
• Considerations
• Costs
• Benefits

Are we comfortable (40 70 confident) with
cost and benefit estimates?
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Applying Models to Portfolio Management

• Repeat on a regular basis to take into account
  new knowledge and changes in the environment

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Some Things to Consider

• Dont spend too much time on models
• Purpose of models is to encourage and frame
  discussions
• Think Barely Sufficient

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Questions?
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Contact

• Kent J McDonald
• www.knowledgebridgepartners.com
• www.accelinnova.com
• 515.229.6929
• kmcdonald_at_accelinnova.com