WEBINAR Use Portfolio Management To Build Resource Agility Margo Visitacion, Vice President, Principal Analyst May 24, 2016. Call in at 12:55 p.m. Eastern time

Agenda Traditional resource management concepts and challenges Optimization: Resources are your portfolio. Building transparency

Agenda Traditional resource management concepts and challenges Optimization: Resources are your portfolio. Building transparency

Resource management: today’s biggest challenge Source: Forrester’s Q3 2015 Global State Of Strategic Planning, Enterprise Architecture, And PMO Online Survey

Resource management concepts Efficient and effective deployment of an organization’s resources when and where they’re needed Definition Estimation of required resources for planned work Forecasting Assigned and secured at the start of initiatives Considers current needs Allocation Monitoring capacity Reassignment as needed Management

Resource management challenges Efficient and effective deployment of an organization’s resources when and where they’re needed Made inefficient and ineffective due to lack of process and automation Definition Estimation of required resources for planned work Disconnected forecasting creates dependencies and bottlenecks. Forecasting Assigned and secured at the start of initiative and considers only current needs Reactive responses throw plans into disarray and long-term impact is often disregarded. Allocation Monitoring capacity and reassignment as needed Lack of visibility creates cascading issues down the road. Management

Old school reality Resources get locked down. More demand comes in. Test Demand Problems Change requests Project PMs Ops Dev Resources get locked down. More demand comes in. People get overallocated. UX BA EA $ Exec management chokes on the total cost. Budget wars reach a “negotiated settlement.”

New school reality Highly autonomous workforce 26% telecommute at least once a week. 35% work at a client site at least a few times a month. Highly autonomous workforce 70% collaborate directly with customers, clients, or patients. 14% collaborate with coworkers in other countries. Event driven with diminished predictability Information workers leverage an average of eight applications per day to perform their job. Multitasking Source: Forrester’s BT Apps And Collaboration Survey, 2014

Hybrid approaches need to align Traditional project and task planning Agile, iterative, and hybrid life cycles Low Plan Analyze Design Code Test Implement Churn/change = $$€££ Certainty High

Agenda Traditional resource management concepts and challenges Optimization: Resources are your portfolio. Building transparency

Five best practices to improve resource management Strive for throughput, not utilization. Deliver in small batches. Dedicate teams to release trains. Minimize handoffs, maximize flow. Eliminate overhead. +1 more: Practice transparency. Base: 600 IT professionals with app development responsibilities from the US, Canada, the UK, France, and Germany; Source: A commissioned study conducted by Forrester Consulting on behalf of IBM, May 2014

Cross-functional organizations are common in the age of the customer Source: “Improve Customers’ Experience By Improving Employees’ Effectiveness” Forrester report

Agile release train — program approach

ARTs focus teams on delivering value 2 1 3 5 4 6 7 $$ Project 1 Project 2 $$ $$ Month 2 1 3 5 4 6 7 $$ Project 1 Project 2 $$ $$ $$ $$ $$ $$ $$ $$ Month

Smaller batches of work = faster speed, more feedback, and less failure much better than

Dedicated teams in shared services environment Planning teams Senior product/program owner Development leader PPMO supports t t t t Squads Architect/UX leader t t t t t t t t Scrum master Shared services Dev Ops ePMO CoEs Arch. Test DevOps Arch/dev PCOE

Minimum valuable product (MVP) = identify needs and commit . . . . . . R1 R2 R3 R4 R5 R6 R7 Deliver MVP quickly — improve based on feedback.

Use value streams to help prioritize FUNDING VALUE STREAMS, NOT PROJECTS Sales and marketing Human resources Finance Logistics Call center Time to delivery Budgeting Value stream Can value stream give me a clearer understanding of costs? Can this help align with strategic objectives? Will this help with faster, better decision-making and problem resolution?

Identify value streams to reduce waste/eliminate bottlenecks Idea Understand needs Develop Test Deploy Customer value 1 day 3 days 5 days 5 days 3 days 7 days 4 days 9 days 10 days Process time Lead time Total = 47 days Lead time ladder Source: “Application Delivery In The Modern Age” Forrester report

Agenda Traditional resource management concepts and challenges Optimization: Resources are your portfolio. Building transparency

Portfolio management controls complexity of increased scale Sequencing sprints Release planning Consistent cadence for monitor/reporting Image source: Craig Larman (http://www.craiglarman.com/wiki/index.php?title=Main_Page)

The living road map: continuous planning cadence Strategic themes captured in strategic/capability planning tools Strategic road map Yearly plans for initiatives Budget and resources captured in portfolio management tools Release planning by quarter Q1 Q2 Q3 Q4 Sprint planning captured in Agile project management tools DevOps Road map review FY planning Portfolio update Continuous execution/performance feed back loops

Recommendations Focus resources around programs. Organize by capabilities. Establish teams as units, and associate resources by tagging. Manage WIP. Forecasting for nondedicated resources: Never forecast at 100% — take their day job into account. Allocate at 100% — no switching.

Recommendations (cont.) Capture all the work. Everything is on the backlog — strive for just enough information to help you make a decision. Measure for velocity.

But what about time tracking??? Tracking project time: By milestone Tied to a deliverable Per Agile sprint Features delivered — regular work week Waterfall activity Project management Requirements Design Coding/unit testing Testing Release management Documentation Training Deliverable Make it simple. Important to focus on ETC Percentage complete — cannot be a swag.

Margo Visitacion mvisitacion@forrester.com