decision making applications problem solving leadership practices step up, step back culture of trust collaboration considering risk

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 deliver business value

deliver value? what’s that?

Business Value Benefits Value Calculation Costs calculation Defining Value

Business Value Guess Value Calculation Estimate calculation Valuing the Inputs

we need some help !

Purpose Considerations Costs and Benefits Business Value Model

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 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

Market Differentiating High Low Mission Critical Low High Differentiate Parity Partner? Who cares? Strategy?

 Sustainable  Competitive advantage strategy = sustainable competitive advantage

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

strategy creates decision filters

decision filters: make daily decisions schedule projects what to develop

cascade decision filters throughout organization

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

purpose is not priority

Differentiating changes over time

 Leadership Influence innovate!

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?

What’s On Your Billboard?

your decision filter?

do you have any exceptions?

Purpose 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

your considerations?

prioritize

Purpose Considerations Business Value Model

costs and benefits ?

Purpose Considerations Costs and Benefits Business Value Model

resolve differences

group chunks high – medium - low

What are your largest value chunks?

what can you defer ?

What do you need to add to make a better decision?

“build” a chunk …

at the end of the “chunk”

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?

What goes in the next iteration?

did the value inputs change?

adjust BV model run features thru model re- prioritize

value Model objectives / projects / ideas Value Model prioritized chunks build highest value chunks Do we have enough value to deploy? deferred Will we ever have enough value to deploy? STOP Yes No Adjust value model if inputs have changed

Purpose Considerations Costs and Benefits Business Value Model

applications problem solving considering risk leadership practices step up, step back culture of trust collaboration decision making

considering risks

uncertainty complexity

team size mission criticality team location team capacity domain knowledge gaps dependencies

uncertainty market uncertainty technical uncertainty project duration dependents

Complexity Uncertainty Low High

Complexity Uncertainty  Simple, young projects  Need agility  Tight Teams Sheep  Complex, mature market  Need defined interfaces Cows Bulls  Agility to handle uncertainty  Process definition to cope with complexity  Laissez faire Colts Low High  Well behaved

AttributeScore Market Technical Dependencies / Scope Flexibility Duration Uncertainty Assessment

Market Uncertainty Technical Uncertainty Project Duration Uncertainty Dependents/ Scope Flexibility

Complexity Assessment AttributeScore Team Size Mission Critical Geographical Dispersion Team Maturity Domain Knowledge Dependencies

Dependencies Geographical Dispersion Team Maturity Domain Knowledge Team Size Mission Critical

for your project …

Complexity Uncertainty Low High What type of project?

AttributeScore Uncertainty Assessment

Complexity Assessment AttributeScore

Project Management How Do We Deliver? What can you do to reduce the risks?

Purpose Considerations Costs and Benefits Do these risks considerations change your value model?

Sheep Project Cow Project Colt Project Bull Program Remember: Loose Coupling and Strong Cohesion

Complexity Uncertainty  Trader Workstation Sheep  Matcher Cows Bulls  Swiss Electronic Stock Exchange  “Lights Out” Colts Low High

Complexity Uncertainty portfolio management

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?