decision making leadership practices applications step up, step back collaboration culture of trust problem solving managing risk
collaborative leadership and decision making
what do we do? when do we do it? when do we decide?
leaders must …
Build Trust? deliver the right product
Always or Often Used: 20% Never or Rarely Used: 64% Standish Group Study, reported by CEO Jim Johnson, XP2002 Sometimes 16% Rarely 19% Never 45% Often 13% Always 7%
and …
consistently delivers business value
deliver value? what’s that?
Business Value Benefits Value Calculation Costs calculation
Business Value Guess Value Calculation Estimate calculation
we need some help !
Purpose Considerations Costs and Benefits
where do we start?
MissionVisionValues Strategic Intent ~ Strategy ~ Purpose Long-Range Goals Annual Objectives Action Plans (what, who, when) Individual Business Objectives Tactical Strategic SWOT / 5Q
MissionVisionValues Strategic Intent ~ Strategy ~ Purpose Long-Range Goals Annual Objectives Action Plans (what, who, when) Individual Business Objectives Tactical Strategic SCO / 5Q Start Here
Market Differentiating High Low Mission Critical Low High Differentiate Parity Partner? Who cares? Purpose Based Alignment Model
Market Differentiating High Low Mission Critical Low High Innovate, Create Do we take this on? Minimize or Eliminate Achieve and Maintain Parity, Mimic, Simplify Purpose Based Alignment Model
How about an example? financial documentation system
3,000 functions!
Market Differentiating High Low Mission Critical Low High What goes here? Anything here? Most are usually here. Purpose Based Alignment Model
350 differentiators
simplified the rest focused on differentiators
results: better product cut time by 50% 60% cost reduction
Sustainable Competitive advantage strategy = sustainable competitive advantage
Market Differentiating High Low Mission Critical Low High Differentiate Parity Partner? Who cares? Strategy?
strategy equals decision filters
the 5 questions: 1. Whom do we serve and what do they want and need most? 2. What do we provide to help them? 3. What is the best way to provide this? 4. How do we know we are succeeding? 5. How should we organize to deliver?
the “billboard” test…
You Think My Products Are Good? You Should See My Chart of Accounts!
We invest more in our WMS than we do in product development
“To be the low cost airline.” - Southwest Airlines
“Will this help us be the low cost airline?” - Southwest Airlines
cascade decision filters throughout organization
decision filters: make daily decisions schedule projects what to develop
single purchase, multiple credit cards How about another example?
requires customization
Market Differentiating High Low Mission Critical Low High Differentiate Parity OR
Market Differentiating High Low Mission Critical Low High Differentiate
pass the “billboard” test?
A fist full of credit cards
Give Me Your Tired, Your Poor, Your Maxed Out Credit Cards
treat exceptions as exceptions
caveats
Managing Risks List Three Professional Options common sense not common practice
parity IS mission critical
Differentiating changes over time
Leadership Influence innovate!
Purpose Considerations Costs and Benefits Business Value Model
other considerations ?
time to market
risks
Collaboration Model flexibility
Collaboration Model dependencies
team size and experience market uncertainty domain knowledge team capacity technical uncertainty
Costs and Benefits Purpose Considerations
Costs and Benefits Purpose Considerations
conversation
resolve differences
group chunks high – medium - low
Costs and Benefits Purpose Considerations
at the end of the “ chunk”
did model inputs change ?
adjust BV model run features thru model
now you can ask…
Do we have enough business value to go to market?
Should we continue?
If so, what goes in the next iteration?
adjust BV model run features thru model re- prioritize
Let’s give it a go….
Start Up Exercise: Pick a project. Practicum Pick an objective, a brand, or a project.
Market Differentiating High Low Mission Critical Low High Differentiate Parity Partner? Who cares? What is the purpose?
your decision filter?
the 5 questions: 1. Whom do we serve and what do they want and need most? 2. What do we provide to help them? 3. What is the best way to provide this? 4. How do we know we are succeeding? 5. How should we organize to deliver?
What’s On Your Billboard?
Purpose
your considerations?
prioritize
costs and benefits ?
Purpose Considerations Costs and Benefits Business Value Model
resolve differences
group chunks high – medium - low
Transaction Costs add what to make better decisions ?
“build” some chunks …
at the end of the “chunk”
did the value inputs change?
market window moves out
summary
Purpose Considerations Costs and Benefits Business Value Model
it’s a conversation
what do we do?
when do we do it ?
when do we decide ? Protect Team Boundaries
using the value model objectives / projects / ideas Value Model prioritized chunks build highest value chunks adjust VM if inputs changed discuss value and value to date Enough value to go to market? ~ Yes? Deploy ~ No? Continue? ~ No? Stop. ~ Yes?
ideas that work ?