Lean agile capability analysis talk capability analysis
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The document discusses using business capability analysis to provide a lean-agile approach to enterprise analysis. It describes modeling business capabilities to present a graphical view of the business value stream and specify value through a relative assessment of capabilities. The value of capability analysis is that it can provide business context, facilitate discovery of good answers quickly, and promote feedback to focus on business value.
Lean agile capability analysis talk capability analysis
- 1. Leading your Business Customer With Business Capability Analysis A Lean-Agile Approach to Enterprise Analysis Dean Stevens Synaptus @leanopinions
- 2. Capability Modeling HBR: The Next Revolution in Productivity • Business capability is an outcome based view of what the business does • Capability Model presents – A graphical view of the business or value stream – Specifies value by a relative assessment of capabilities • Promote a shared understanding – Identify, scope & prioritize initiatives – Maintain business context throughout the project
- 3. I have a question! Value Manager …BIZ I need to help them discover GOOD answers … Value Manager I have a question! …Other Stakeholders I have a question! …DEV 3
- 4. Value Manager Good Answers to Hard Questions • Prioritization – What feature do we work on next? • Scope – Should I add more functionality? Or is this done? • Quality – Is it good enough? • Trade offs – Will the easy solution be sufficient? 4
- 5. Value Manager Big Picture What if we learned together how it fits into the big picture? They are asking questions about the puzzle piece 5
- 6. Value Manager Shared Context Collaborate and Elaborate Then we could TALK about what we had learned … with a shared CONTEXT 6
- 7. Value Manager Value of Capability Analysis • Provide Context I could help them discover GOOD answers, and QUICKLY • Facilitate Discovery • Focus on Value • Promote Feedback
- 8. Capability Analysis Recipe 1. Describe Business Capabilities 2. Assess Capabilities for Value, Performance & Risks 3. Analyze Capability Model (Heat Map) 8
- 9. Describe Business Capabilities Focus on Business Benefit • Start with a list of your business process – From what you already know and documents you have – Process Frameworks: APQC, ITIL • Rename and describe them as business benefits – What’s the benefit, the outcome, the purpose – How could we measure it • Map the value stream or network (optional) • Validate/ elaborate with business managers. 9
- 10. Describe Business Capabilities The “How Trap” How Phrase Outcome Phrase Receive Fax Receive Request Enter Info to System Draft Quote Create Certificate Create Certificate Send Fax to Agent Communicate Quote to Agent Rekey into FinApp Interface Create Policy Agreement Create Policy Agreement Mail Agreement Send Agreement Send Fax is just one way to Communicate a Quote Focusing on the outcome avoids the “How Trap” Easier to “see” drivers and results
- 11. Describe Business Capabilities • Capability Name Review It is hard “see” what we do in this – Action verb/noun format different way – Identify & revise “How Trap” names • Description Review – Objective: Make clear what this activity is during interviews – Include business benefit, purpose or outcome – OK to state “how” we do it currently – Clarify & Simplify
- 12. Describe Business Capabilities Detailed Capability Model Key Key Business Capability Purpose Owner Metric Goal Cost FTE 2.0 Generate Demand 2.2 Manage Retailer Relationships 2.2.2 Support Inventory Management at Retailers 2.2.3 Provide & Deliver Retailer Access to Intranet 2.2.4 Develop & Provide Warranty Services 2.2.5 Provide Product Technical Support 2.2.7 Allocate Product to Retailer 2.2.8 Create & Manage Retailer Orders 2.2.9 Create & Manage Parts Order 2.2.10 Monitor retailer compliance with policies and programs
- 13. Describe Business Capabilities Visualize the Business Capability Relationship Diagram Launch New Product Ideation Plan Launch Post Launch Control 10 11 10 1.3.2 Communicate, 1.1.1 Analyze New PS&P 1.4.1 Manage New PS&P 3.4.2 Track Perform Metrics 4.1.2 Assess Accessory 3.1.2 Qualify Suppliers 1.2.5 Develop Launch Plan Coordinate & Execute 1.3.5 Manage Launch Opportunities Portfolios for Parts/Acc'y Suppliers Demand Comm Plan Controlling 1.2.1 Obtain Financial Approval & Support to 3.1.3 Negotiate & Document 1.3.3 Coordinate & Execute 1.4.2 Manage Partner 3.4.3 Track Performance Develop PS&P Supplier Agreement Marketing Plan Relationships for New PS&P Metrics for Service Providers Value Add 10 1.4.3 Establish Price to 1.2.2 Design, Prototype & 1.3.6 Execute Launch of 2.1.7 Perform Customer 2.1.3 Train Dealers Dealer Test New PS&P New PS&P Relations Value 10 1.1.2 Plan, Develop & 1.2.3 Design & Develop 4.2.5 Plan Warehousing & 2.2.5 Provide Product Communicate New PS&P 1.3.1 Perform Pre-Launch Installation Process Staging - Long Range Technical Support Strategy Activities Supporting/Enabling 11 11 Support 1.1.3 Develop Action Plans 1.2.4 Design & Develop 1.3.4 Coordinate & Execute 3.3.2 Coordinate Technical to Develop PS&P Concepts Support Services Support Activities Support with Supplier 4 1.1.4 Document Action 2.2.2 Support Inventory Plans to Develop PS&P 6 Management at Dealers 3.3.1 Perform Supply Chain Concepts Planning with Supplier 8 4.2.3 Plan General Parts & 3.1.1 Identify Suppliers Acc'y Requirements - Long Range Business Scenario Metrics Offer high quality products that the customer desires, that can be delivered quickly and Time to Market that drives increased sales and profitability. Activities include assess opportunities, plan, New Product Revenue & Profitability launch and market (initial) required to. Market Penetration
- 14. Assess Business Capabilities • Elicit specific answers to specific questions for each capability – Value: Strategic, Business, Customer – Performance: Relative to expectations, Constraint – Risk: Business, Compliance, Technical • This is Context • Very powerful approach to Organizational Learning and Shared Understanding 14
- 15. Assess Business Capabilities Capability Model/ Heat Map Value: • Assessed Business Strategy Business Value, Performance, Customer Risk Performance and Risks relative to How suitable is Regulatory Compliance other capabilities performance relative Technology to expectations? • Visualize the Business with Context KEY Business High Value High Per Gap High Risk Benefit Medium Value Medium Per Gap Moderate Risk Low Value Low Per Gap Low Risk 15
- 16. Assess Business Capabilities Value Stream/ Network View Capability Relationship Diagram Launch New Product Ideation Plan Launch Post Launch LEGEND Business 10 11 10 Performance Changeability Value 1.3.2 Communicate, L 1.1.1 Analyze New PS&P 1.4.1 Manage New PS&P 3.4.2 Track Perform Metrics 4.1.2 Assess Accessory 3.1.2 Qualify Suppliers 1.2.5 Develop Launch Plan Coordinate & Execute 1.3.5 Manage Launch High Low Opportunities Portfolios for Parts/Acc'y Suppliers Demand Comm Plan M H Controlling Dealer Survey VP 1.2.1 Obtain Financial Approval & Support to 3.1.3 Negotiate & Document 1.3.3 Coordinate & Execute 1.4.2 Manage Partner 3.4.3 Track Performance Develop PS&P Marketing Plan Low High M Supplier Agreement Relationships for New PS&P Metrics for Service Providers Not Specified P 10 1.4.3 Establish Price to 1.2.2 Design, Prototype & 1.3.6 Execute Launch of 2.1.7 Perform Customer 2.1.3 Train Dealers Dealer Test New PS&P New PS&P Relations Value 10 1.1.2 Plan, Develop & 1.2.3 Design & Develop 4.2.5 Plan Warehousing & 2.2.5 Provide Product Communicate New PS&P 1.3.1 Perform Pre-Launch Installation Process Staging - Long Range Technical Support Strategy Activities Supporting/Enabling 11 11 1.1.3 Develop Action Plans 1.2.4 Design & Develop 1.3.4 Coordinate & Execute 3.3.2 Coordinate Technical to Develop PS&P Concepts Support Services Support Activities Support with Supplier 4 Very Red – Improve Performance 1.1.4 Document Action 2.2.2 Support Inventory Plans to Develop PS&P 6 Management at Dealers 3.3.1 Perform Supply Chain Concepts Planning with Supplier 8 3.1.1 Identify Suppliers 4.2.3 Plan General Parts & Acc'y Requirements - Long Very Green – Improve Efficiency Range Business Scenario Metrics Offer high quality products that the customer desires, that can be delivered quickly and Time to Market that drives increased sales and profitability. Activities include assess opportunities, plan, New Product Revenue & Profitability launch and market (initial) required to. Market Penetration
- 17. Analyze the Capability Model Lenses • Analytical Approaches The Capability – Lean Analysis Model is a great way – Theory of Constraints to start these analytical – Financial Analysis approaches – Organizational Analysis – Technology Architecture Analysis 17
- 18. Analyze the Capability Model Competencies • Analytical Thinking & Problem Solving – Creative Thinking – Decision Making I can apply these analytical – Learning competencies – Problem Solving – Systems Thinking 18
- 19. Value Manager Collaborate and Elaborate We can TALK about what we have learned … with a shared CONTEXT 19
- 20. Value Manager Good Answers to Hard Questions • Prioritization I can help them – What feature do we work on discover GOOD answers, next? and QUICKLY • Scope – Should I add more functionality? Or is this done? • Quality – Is it good enough? • Trade offs – Will the easy solution be sufficient? 20
- 21. Value Manager Value of Capability Analysis • Provide Context Capability Analysis really helps me add value when I use it to… • Facilitate Discovery • Focus on Value • Promote Feedback
Editor's Notes
- #4: Analysts are more likely to have answers to these questions Scope:Yagni, Trim the Tail,
- #5: Analysts are more likely to have answers to these questions Scope:Yagni, Trim the Tail,
- #8: Discuss value: Cost avoidanceBusiness benefitDo the right thingsDiscuss jumping to solutionsDiscuss asking the right questions to the right people
- #10: Map the value streamLimit a business wide analysis to 200 capabilitiesTook 90 minutes with each biz manager
- #12: I’m going to tell a storyAnd illustrate A3 thinking
- #15: Show specific question“We learned how to talk about the business” Senior VP at $4bb biz
- #17: Primary output of capability analysis. Develop a common understanding of the business scenario/ value streamOnce we see where the problems/ opportunities are, we know where to invest improvement efforts. AND, the organization is focused and aligned on these areas. Briefly, how do we get here. Define Business ScenariosIdentify & define capabilities required to perform business scenarioAssess Business Value ContributionAssess capability performanceThen we can identify the areas where constraints, waste and opportunities & develop focused strategic projects.Measure & manage strategic improvement effort and progress
- #19: A key underlying competency for BA is Analytical Thinking and Problem SolvingCapability Analysis is an excellent approach to practice and foster these in the biz and dev
- #21: Analysts are more likely to have answers to these questions Scope:Yagni, Trim the Tail,
- #22: Discuss value: Cost avoidanceBusiness benefitDo the right thingsDiscuss jumping to solutionsDiscuss asking the right questions to the right people