Agile portfolio management
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The document discusses the challenges of agile portfolio management in large enterprises, highlighting issues such as inadequate governance, contradictions in annual planning, and inefficiencies in estimating project delivery. It emphasizes the need for organizations to adopt a more responsive approach by synchronizing prioritization with delivery cadence and focusing on value stream funding rather than traditional project-based funding. The conclusion advocates for a governance model that prioritizes client satisfaction and enables rapid delivery of prioritized initiatives.
Agile portfolio management
- 1. 0 AGILE PORTFOLIO MANAGEMENT Etienne Laverdière, SPC4 From Wishful Control to Continuous Governance
- 2. 1 @2016-2017 Digital Tango – All rights reserved First Generation Agility (2001) 4 Large enterprises have initiatives involving more than one team, and needing more roles than the proposed Scrum roles 4 Scrum has no ambition to addressed the complexity and the different dimensions of large enterprise 4 We mainly know “Agility” from Scrum or XP / eXtreme Programming 4 Those team frameworks thrive with small teams from 3 to 9 team members 4 Theses teams are able to become hyper- effective, doubling their delivery capacity * * Sutherland, Scrum: The Art of Doing Twice the Work in Half the Time, 2014
- 3. 2 @2016-2017 Digital Tango – All rights reserved 4Value Stream Ops Team 1 devops What are the dimensions of large initiatives ? 4Multiples teams Team 3 Team 4 remote Team 5 Component Value Stream Portfolio Ideation 4Organizational Governance HR PMO Fin. Lacking governance on one of these dimensions might brings more tension into your organization ! Agility @ Scale Dimensions
- 4. 3 @2016-2017 Digital Tango – All rights reserved Let’s talk about Project Performance Agile PMO
- 5. 4 © Scaled Agile, Inc. Agile Project Performance in theory Time ValueDelivery Feedback
- 6. 5 @2016-2017 Digital Tango – All rights reserved In practice… LeadTime Average Feature Release Lead Time Release Based on a program delivery data in a Financial institution (2015) 66% TTM lost in a FIFO portfolio queue Teams are using Scrum Days Average Testing Time Average Waiting Time before Testing Average Development Time Average Waiting Time before Development WaitingTime
- 7. 6 @2016-2017 Digital Tango – All rights reserved What is our problem? Considering 4 paradoxes
- 8. 7 @2016-2017 Digital Tango – All rights reserved Portfolio Annual Planning • We organize a annual portfolio planning 18 months before the end of the final delivery! We now have two contradictory narratives to our sponsors! There’s to much people involved, we cannot afford to do this more than once per year! • While the portfolio plan tries to stay unchanged, our agile teams are now delivering at each sprints enabling changes!
- 9. 8 @2016-2017 Digital Tango – All rights reserved Estimating Imaginary Solution • Even if the solutions are not fixed, theses estimations will determine next year delivery dates, budget strategy and scope • We do not have enough information 18 months ahead to start estimating solutions Development teams are not delivering what was planned! « Whatever is estimated, our only aim is to squeeze the budget from Finance »
- 10. 9 @2016-2017 Digital Tango – All rights reserved PMO Role: Saving Cost to the Detriment of Value Delivery? « We are trying to save 25 cents today to pay 2 dollars tomorrow! » • By wanting to save costs, we increase the total cost • Exhaustive analysis does not reduce risk and decrease delivery speed IT as a Cost Center IT as an innovation Center
- 11. 10 @2016-2017 Digital Tango – All rights reserved The Sense of Urgency Nobody takes my urgency seriously ! Forget about prioritization, everything is urgent! • The paradox of urgency: the "cruel tendency” for the sense of urgency to be highest when the real urgency is at the lowest - Andy Carmichael • The sense of urgency is at a maximum when the team starts the development • Regardless of development effectiveness, most features are delivered several months after their prioritization Time ValueDelivery
- 12. 11 @2016-2017 Digital Tango – All rights reserved • The classic portfolio management process does not allow organizational agility • Team agility challenges the annual planning process by bringing changes at the sprint level • We control plan compliance, not the value delivered, even less customer satisfaction • The sense of urgency is not proportional to value delivery The Sens of Urgency Annual planning Save cost and reduce risks Imaginary Estimation Our Portfolio is Not Agile Multiples teams ValueStream
- 13. 12 @2016-2017 Digital Tango – All rights reserved Synchronize your prioritization cadence on a multiple of your delivery cadence What is our Solution? Agile Performance : Agile Principe #7 « Working software is the primary measure of progress. » Finance your delivery capacity: Value Stream or Product-based instead of Project-based
- 14. 13 @2016-2017 Digital Tango – All rights reserved Agile Principe #7 « Working software is the primary measure of progress. » SAFe Lean-Agile Portfolio Management Governance Establish a investment governance based on proven client satisfaction Prioritize large initiative while decentralizing detail estimation and content planning to teams Deliver rapidly what was prioritized and planned Finance your delivery capacity: Value Stream or Product-based instead of Project-based Synchronize your prioritization cadence on a multiple of your delivery cadence Agile Performance :
- 15. 14 @2016-2017 Digital Tango – All rights reserved 936 av. Mont-Royal Est Montréal, QC, H2J 1X2 CANADA info@digitaltango.ca 3 /3 Bis rue Taylor CS 20004 75481 CEDEX 10 FRANCE Thanks! Working with a system is not unlike dancing the tango. Dancing with a system is about leading and following. It is an ongoing cycle of planning a direction, making a step, sensing the response, and evaluating success. It combines anticipation, experimentation, and adaptation. Jurgen Appelo – Author of Managing for Happiness