1. Building an Agile Portfolio
Lesson 7
Building an Agile Portfolio

2. 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

3. 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

4. 7.1 Define Strategic Themes for a portfolio

5. Collaborating on Strategic Themes

6. Formulating Strategic Themes

7. Influence of Strategic Themes

8. Exercise: Identify Strategy Themes

9. 7.2 Identify Portfolio Value Streams

10. Defining development Value Streams

11. Value at scale is distributed

12. Finding Value Streams in the Portfolio

13. Realize Value Streams via ARTs

14. Split large Value Streams into multiple ARTs

15. 7.3 Advance Solution behavior with portfolio Epics

16. Epics carry centralized initiatives

17. Epic Value Statement template

18. Exercise: Epic writing

19. The Portfolio Kanban system

20. Porto typical Portfolio Kanban system

21. Epics deserve a Lightweight Business Case

22. Portfolio Backlog

23. 7.4 Transition from project cost accounting to Lean-Agile Budgeting

24. Problem: Cost Center Budgeting

25. Problem: “Projects” increase Cost of Delay

26. Solution: Lean-Agile Budgeting

27. Control costs with increased flexibility

28. Governance and agility with dynamic budgeting

29. Thought exercise: Agile budgeting

30. 7.5 Forecast Epics on a near term Roadmap

31. The business needs to forecast

32. Roadmap forecasting requires estimating

33. Estimating Epics in SAFe

34. Forecasting from the Portfolio Backlog

35. Exercise: Forecasting

36. Building an Agile Portfolio

37. Appendix: Introducing the Agile PPM

38. PPM responsibilities

39. Traditional mindsets handicap agility

40. Moving to Agile PPM

41. Measuring success

42. The Agile PMO

43. Completion – Building an Agile Portfolio
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Building an Agile Portfolio