Lean Portfolio Strategy Part 2: Shifting from Imitation to Real LPM - The Move to True Value Streams
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The document discusses the transition from imitation to real value streams in lean portfolio management, emphasizing the importance of optimizing value delivery and reducing waste. It outlines how organizational structures should support product-focused value generation rather than functional alignment. The impact on budgeting is also highlighted, noting the need for funding to shift to support real value streams post-agile transformation.
Lean Portfolio Strategy Part 2: Shifting from Imitation to Real LPM - The Move to True Value Streams
- 1. ©2021 Cprime, Inc. All rights reserved and no copying without express written permission. WWW.CPRIME.COM | 877.800.5221
- 2. ©2021 Cprime, Inc. All rights reserved and no copying without express written permission. Lean Portfolio Strategy Part 2: Shifting from Imitation to Real LPM – The Move to True Value Streams
- 3. ©2021 Cprime, Inc. All rights reserved and no copying without express written permission. HOUSEKEEPING ITEMS Audio is streamed through your computer speakers, so make sure your audio is on and turned up. The recording and slides will be sent to everyone via email within 24-48 hours after the webinar concludes. Submit questions any time during this presentation via the Q&A box on the bottom panel of your screen.
- 4. ©2021 Cprime, Inc. All rights reserved and no copying without express written permission. OUR SPEAKERS Michiko Quinones Jira Align Consultant Cprime Jean Dahl General Manager, Scaled Agility
- 5. ©2021 Cprime, Inc. All rights reserved and no copying without express written permission. AGENDA 01 A HISTORY OF VALUE STREAMS 02 BUDGET IMPACT OF REAL VALUE STREAMS 03 REAL COMPANIES WHO HAVE SHIFTED 04 KEEP THE CONVERSATION GOING/Q&A
- 6. ©2021 Cprime, Inc. All rights reserved and no copying without express written permission. Value Streams Key Points
- 7. A Value Stream is a _______ PUT YOUR ANSWER IN THE CHAT
- 8. ©2021 Cprime, Inc. All rights reserved and no copying without express written permission. POINT 1 It’s the Waste
- 9. ©2021 Cprime, Inc. All rights reserved and no copying without express written permission. VALUE STREAM MAPPING https://www.projectengineer.net/what-is-a-value-stream/ Customer need Product
- 10. Movement Overproduction Time on hand (waiting) Transportation Making Defective products Stock on hand (inventory) MANUFACTURING MUDA - TAIICHI OHNO
- 11. Movement Task Switching Overproduction Partially done Work Time on hand (waiting) Delays Transportation Handoffs Lost Knowledge Making Defective products Defects Stock on hand (inventory) Extra Features SOFTWARE MUDA - MARY POPPENDIECK
- 12. ©2021 Cprime, Inc. All rights reserved and no copying without express written permission. RARELY OR NEVER USED -Pendo: The 2019 Feature Adoption Report https://www.pendo.io/resources/the-2019-feature-adoption-report/ 80%
- 13. TRUE VALUE STREAMS • Less delays • Less dependencies • Less task switching • Less lost knowledge
- 14. ©2021 Cprime, Inc. All rights reserved and no copying without express written permission. POINT 2 It’s the Product
- 15. ©2021 Cprime, Inc. All rights reserved and no copying without express written permission. MCDONALDS 15 15 Happy Meal Need for Fun Affordable Family Meals Operational Value Stream Development Value Stream Food Fulfillment Customer need Product
- 16. ©2021 Cprime, Inc. All rights reserved and no copying without express written permission. SAFE’s ITERATION ON VALUE STREAMS Internal Value Customer need Product External Value
- 17. ©2021 Cprime, Inc. All rights reserved and no copying without express written permission. POINT 3 It’s a Map to Optimize Value Not An Organizational Construct
- 18. ©2021 Cprime, Inc. All rights reserved and no copying without express written permission. • NOT ”Are we organized into value streams?” but • “Are our teams optimized for delivering value?” THE QUESTION IS
- 19. ©2021 Cprime, Inc. All rights reserved and no copying without express written permission. CURRENT STATE From Waste/Product/Optimization to Planning/Process/Organization
- 20. ©2021 Cprime, Inc. All rights reserved and no copying without express written permission. MODELS FOCUS ON PLANNING/PROCESS Many organizations value stream mapping as a way to determine who needs to plan together in cadenced planning cycles. Or they use value stream mapping to understand process steps. Or value steams have become new organizational constructs.
- 21. ©2021 Cprime, Inc. All rights reserved and no copying without express written permission. • Similar to SAFe, focus is on the capabilities to start and end with customer value. PMI/DISCIPLINED AGILE’S ITERATION ON VALUE STREAMS
- 22. ©2021 Cprime, Inc. All rights reserved and no copying without express written permission. • Creating Value • Removing Waste • Product Focus lost as the goals Task Switching Partially Done Work Delays Handoffs Lost Knowledge Defects Extra Features
- 23. ©2021 Cprime, Inc. All rights reserved and no copying without express written permission. Definitions Real value streams Built to deliver value on a product with the least amount of waste Looks like a network Imitation value streams Built to group similar functional agile programs for aligned planning or internal product delivery. looks a lot like the functional hierarchy.
- 24. ©2021 Cprime, Inc. All rights reserved and no copying without express written permission. Pre-Agile Transformation Functional Units operating in Silos Post-Transformation - Good Functional Units Planning Together Post-Transformation - Better Networked Teams in Value Streams Imitation Value Streams Real Value Streams Post-Transformation - Best Full Stack Programs in Value Streams Optimized Real Value Streams D C B A
- 25. ©2021 Cprime, Inc. All rights reserved and no copying without express written permission. Budget Impact of Real Value Streams
- 26. ©2021 Cprime, Inc. All rights reserved and no copying without express written permission. THE IMPACT ON BUDGETING
- 27. ©2021 Cprime, Inc. All rights reserved and no copying without express written permission. THE REALITY • The reality is that most organizations have imitation value streams. • They are still functionally aligned and budgets are still provided to functions, not value streams.
- 28. ©2021 Cprime, Inc. All rights reserved and no copying without express written permission. BUDGETING IMPACT Post Agile Transformation with Imitation Value Streams Post Agile Transformation with Real Value Streams Financial Systems are set up to fund Initiatives within Functional Units With the move to Real Value Streams, the Funding also has to shift
- 29. ©2021 Cprime, Inc. All rights reserved and no copying without express written permission. Real Life Stories
- 30. ©2021 Cprime, Inc. All rights reserved and no copying without express written permission. A Company that Tried and Failed Reminding Us That We Need to Connect Operational and Development Value Streams
- 31. ©2021 Cprime, Inc. All rights reserved and no copying without express written permission. A Company that Succeeded Reminding us to focus on stakeholders more than shareholders and to let the Street know Capex/Opex Impact
- 32. ©2021 Cprime, Inc. All rights reserved and no copying without express written permission. IDEAS FOR SOP-98 STAGES TRANSLATION TO AGILITY NOT TO BE CONSIDERED AS FINANCIAL ADVICE 20% of the PI 60% of the PI 20% of the PI Analysis Reviewing Portfolio Backlog In Progress In Deployment Done Chart from: https://www.fasb.org/jsp/FASB/Document_C/DocumentPage?cid=1176156442651&acceptedDisclaimer=true Kanban States (Pat Reed) PI % of Work
- 33. ©2021 Cprime, Inc. All rights reserved and no copying without express written permission. • Identifying Value Streams • Using the Value Streams to Organize Portfolios into Products/Product Lines • Funding by PI by Value Stream • Rewarding executives for stakeholder value more than shareholder value • Translating into SOP-98 Categories for CapEx/Opex • Informing the Street of the Impact to CapEx/Opex WHAT WORKED
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