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decision making applications problem solving leadership practices step up, step back culture of trust collaboration considerations and risk
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decision making
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what do we do? when do we do it? when do we decide?
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leaders must …
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Build Trust? deliver the right product
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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%
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Legacy System Name: Phone: Address: Replacement System Name: Address: Phone: what’s the value of this required change?
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and …
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consistently deliver business value
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deliver value? what’s that?
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Business Value Benefits Value Calculation Costs calculation Defining Value
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Business Value Guess Value Calculation Estimate calculation Valuing the Inputs
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we need some help !
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Purpose Considerations Costs and Benefits Business Value Model
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where do we start?
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Purpose Business Value Model
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MissionVisionValues Strategic Intent ~ Strategy ~ Purpose Long-Range Goals Annual Objectives Action Plans (what, who, when) Individual Business Objectives Tactical Strategic SWOT / 5Q Start Here
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Market Differentiating High Low Mission Critical Low High Differentiate Parity Partner? Who cares? Purpose Based Alignment Model
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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
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How about an example? financial documentation system
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3,000 functions!
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Market Differentiating High Low Mission Critical Low High What goes here? Anything here? Most are usually here. Purpose Based Alignment Model
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350 differentiators
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simplified the rest focused on differentiators
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results: better product cut time by 50% 60% cost reduction
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Market Differentiating High Low Mission Critical Low High Differentiate Parity Partner? Who cares? Strategy?
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Sustainable Competitive advantage strategy = sustainable competitive advantage
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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?
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the “billboard” test…
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You Think My Products Are Good? You Should See My Invoicing System!
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Order new pages by 2pm and get them tomorrow!
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We invest more in our WMS than we do in product development
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“To be the low cost airline.” - Southwest Airlines
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“Will this help us be the low cost airline?” - Southwest Airlines
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strategy creates decision filters
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decision filters: make daily decisions schedule projects what to develop
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cascade decision filters throughout organization
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single purchase, multiple credit cards How about another example?
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Market Differentiating High Low Mission Critical Low High Customer Service
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requires customization
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Market Differentiating High Low Mission Critical Low High Differentiate Parity OR
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Market Differentiating High Low Mission Critical Low High Differentiate
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pass the “billboard” test?
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A fist full of credit cards
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Give Me Your Tired, Your Poor, Your Maxed Out Credit Cards
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treat exceptions as exceptions
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caveats
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Managing Risks List Three Professional Options common sense not common practice
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parity is mission critical
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purpose is not priority
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Differentiating changes over time
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Leadership Influence innovate!
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Start Up Exercise: Pick a project. Practicum Pick an objective, a brand, or a project.
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Market Differentiating High Low Mission Critical Low High Differentiate Parity Partner? Who cares? What is the purpose?
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What’s On Your Billboard?
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your decision filter?
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do you have any exceptions?
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other considerations ?
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Purpose Considerations Business Value Model
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Collaboration Model flexibility
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Collaboration Model dependencies
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time to market
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risks
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complexity team size mission criticality team location team capacity domain knowledge gaps dependencies technical complexity
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uncertainty market uncertainty technical uncertainty project duration dependents
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Complexity Uncertainty Simple, young projects Dynamic Market Sheep Complex Mature market Cows Bulls Large Challenging projects Laissez faire Colts Low High Well behaved
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Complexity Uncertainty portfolio management
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your considerations?
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prioritize
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Purpose Considerations Costs and Benefits Business Value Model
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costs and benefits ?
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Purpose Considerations Costs and Benefits Business Value Model
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it’s a conversation
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resolve differences
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group chunks high – medium - low
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What are your largest value chunks?
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what can you defer ?
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what do you need to add to make a better decision?
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“build” a chunk …
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at the end of the “chunk”
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did the value inputs change?
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adjust BV model run the chunk features thru model
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now you can ask…
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Do we have enough business value to go to market?
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Should we continue?
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What goes in the next cycle or chunk?
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run candidate features thru model re- prioritize
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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
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summary
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Purpose Considerations Costs and Benefits Business Value Model
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it’s a collaboration
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what do we do? when do we do it? when do we decide?
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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
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Complexity Assessment AttributeScore Team Size Mission Critical Geographical Dispersion Team Maturity Domain Knowledge Dependencies
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0 1 2 3 4 5 6 7 8 9 10 Dependencies Geographical Dispersion Team Maturity Domain Knowledge Team Size Mission Critical Complexity Assessment
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AttributeScore Market Technical Dependencies / Scope Flexibility Duration Uncertainty Assessment
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0 1 2 3 4 5 6 7 8 9 10 Market Uncertainty Technical Uncertainty Project Duration Uncertainty Dependents/ Scope Flexibility Uncertainty Assessment
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Sheep Project Cow Project Colt Project Bull Program Remember: Loose Coupling and Strong Cohesion
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Complexity Uncertainty Trader Workstation Sheep Matcher Cows Bulls Swiss Electronic Stock Exchange “Lights Out” Colts Low High
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team size and experience market uncertainty domain knowledge team capacity technical uncertainty
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