Building an Agile Portfolio Lesson 7 Building an Agile Portfolio

Agenda: Learning Objectives 7.1 Define Strategic Themes for a portfolio 7.2 Identify Portfolio Value Streams 7.3 Advance Solution behavior with portfolio Epics 7.4 Transition from project cost accounting to Lean-Agile Budgeting 7.5 Forecast Epics on a near term Roadmap

Agile Leadership The aim of the system A system is a network of interdependent components that work together to try to accomplish the aim of the system. A system must have an aim. Without an aim, there is no system. —W. Edwards Deming It’s clear we need something different. We're going to talk today about systems thinking and Lean product development and Agile development. This is from Deming, the quintessential leader of this field: "It is not enough that management commit themselves to quality and productivity. … They must know what it is they must do." Further on in this book, the famous 1982 book Out of the Crisis Deming says, "Such a responsibility cannot be delegated." What does that mean? It means that we, as the leaders, have the ultimate responsibility for implementing the change in the organization. It is our leadership that will make that effective. Later in the book there's a discussion between one VP of manufacturing to another. The one VP has a stellar quality record, and the other one not so much. So the second VP said to the first, "Can I visit? Can I come see your plant and learn your secrets?" And the first VP replied, "Absolutely. But if you can't come, send no one." What did he mean by that? It's pretty clear: This is not a responsibility that can be delegated. The lessons for you leaders out there, you change agents and those of you who have decided to take this initiative to your large enterprise, and to make the changes to improve quality and productivity. © 2007 Trail Ridge Consulting, LLC

7.1 Define Strategic Themes for a portfolio

Collaborating on Strategic Themes

Formulating Strategic Themes

Influence of Strategic Themes

Exercise: Identify Strategy Themes

7.2 Identify Portfolio Value Streams

Defining development Value Streams

Value at scale is distributed

Finding Value Streams in the Portfolio

Realize Value Streams via ARTs

Split large Value Streams into multiple ARTs

7.3 Advance Solution behavior with portfolio Epics

Epics carry centralized initiatives

Epic Value Statement template

Exercise: Epic writing

The Portfolio Kanban system

Porto typical Portfolio Kanban system

Epics deserve a Lightweight Business Case

Portfolio Backlog

7.4 Transition from project cost accounting to Lean-Agile Budgeting

Problem: Cost Center Budgeting

Problem: “Projects” increase Cost of Delay

Solution: Lean-Agile Budgeting

Control costs with increased flexibility

Governance and agility with dynamic budgeting

Thought exercise: Agile budgeting

7.5 Forecast Epics on a near term Roadmap

The business needs to forecast

Roadmap forecasting requires estimating

Estimating Epics in SAFe

Forecasting from the Portfolio Backlog

Exercise: Forecasting

Building an Agile Portfolio

Appendix: Introducing the Agile PPM

PPM responsibilities

Traditional mindsets handicap agility

Moving to Agile PPM

Measuring success

The Agile PMO

Completion – Building an Agile Portfolio You have successfully completed – Building an Agile Portfolio