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Mburns@rallydev.com @MartinBurnsSCO
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Mburns@rallydev.com @MartinBurnsSCO
SAFe City
Economic Prioritisation...
Mburns@rallydev.com @MartinBurnsSCO
www.rallydev.com
Mburns@rallydev.com @MartinBurnsSCO
Does it sound a little like this?...
Mburns@rallydev.com @MartinBurnsSCO
www.rallydev.com
Confidential Do not copy or distribute without express permission of ...
Mburns@rallydev.com @MartinBurnsSCO
www.rallydev.com
Mburns@rallydev.com @MartinBurnsSCO
Why do you
Prioritise?
What outco...
Mburns@rallydev.com @MartinBurnsSCO
www.rallydev.com
Mburns@rallydev.com @MartinBurnsSCO
To achieve the
BEST OUTCOME
from ...
Mburns@rallydev.com @MartinBurnsSCO
www.rallydev.com
Mburns@rallydev.com @MartinBurnsSCO
1. While you may
ignore economics...
Mburns@rallydev.com @MartinBurnsSCO
www.rallydev.com
Mburns@rallydev.com @MartinBurnsSCO
To achieve the
BEST ECONOMIC OUTC...
Mburns@rallydev.com @MartinBurnsSCO
www.rallydev.com
Mburns@rallydev.com @MartinBurnsSCO
Cost of Delay: Single Big Batch –...
Mburns@rallydev.com @MartinBurnsSCO
www.rallydev.com
Mburns@rallydev.com @MartinBurnsSCO
http://vimeo.com/101506552
More o...
Mburns@rallydev.com @MartinBurnsSCO
www.rallydev.com
Mburns@rallydev.com @MartinBurnsSCO
Which order would you deliver the...
Mburns@rallydev.com @MartinBurnsSCO
www.rallydev.com
Mburns@rallydev.com @MartinBurnsSCO
Which order would you deliver the...
Mburns@rallydev.com @MartinBurnsSCO
www.rallydev.com
Mburns@rallydev.com @MartinBurnsSCO
Which order would you deliver the...
Mburns@rallydev.com @MartinBurnsSCO
www.rallydev.com
Mburns@rallydev.com @MartinBurnsSCO
Best economic outcome is achieved...
Mburns@rallydev.com @MartinBurnsSCO
www.rallydev.com
Confidential Do not copy or distribute without express permission of ...
Mburns@rallydev.com @MartinBurnsSCO
www.rallydev.com
Mburns@rallydev.com @MartinBurnsSCO
Simulation by Mark Richards
@mark...
Mburns@rallydev.com @MartinBurnsSCO
www.rallydev.com
Mburns@rallydev.com @MartinBurnsSCO
1. Prioritise for best organisati...
Mburns@rallydev.com @MartinBurnsSCO
www.rallydev.com
Mburns@rallydev.com @MartinBurnsSCO
Want to run this at your place?
G...
Mburns@rallydev.com @MartinBurnsSCO
www.rallydev.com
Confidential Do not copy or distribute without express permission of ...
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SAFe City Workshop: Portfolio & Program Prioritisation In Practice

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Don Reinertsen’s fully quantified Cost of Delay model for prioritising backlogs sourced from many stakeholders is inspired, but many organisations struggle with implementing it and abandon attempts to have a rational discussion about value because “it’s too hard to quantify in real money”. And often, it is hard to forecast real money, and other factors such as Risk really do play a part in understanding value.

This simulation provides a concrete model that enables exploration of a practical CoD prioritisation and sequencing model (based on the version used in SAFe) and an experience of operating it in a group setting.

Veröffentlicht in: Business
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SAFe City Workshop: Portfolio & Program Prioritisation In Practice

  1. 1. Mburns@rallydev.com @MartinBurnsSCO www.rallydev.com Mburns@rallydev.com @MartinBurnsSCO SAFe City Economic Prioritisation Workshop with WSJF Martin Burns
  2. 2. Mburns@rallydev.com @MartinBurnsSCO www.rallydev.com Mburns@rallydev.com @MartinBurnsSCO Does it sound a little like this? How Do You Prioritise?
  3. 3. Mburns@rallydev.com @MartinBurnsSCO www.rallydev.com Confidential Do not copy or distribute without express permission of Rally. ©2015 Rally Software Development Corp. All rights reserved. Mburns@rallydev.com @MartinBurnsSCO How Do You Prioritise? Voice of the HiPPO Highest Paid Person’s Opinion MY thing is THE MOST IMPORTANT MY thing is A MUST DO Photo: Wikipedia.org
  4. 4. Mburns@rallydev.com @MartinBurnsSCO www.rallydev.com Mburns@rallydev.com @MartinBurnsSCO Why do you Prioritise? What outcomes are you aiming for? Discuss in Pairs for 5 minutes What Problem Are You Trying to Solve?
  5. 5. Mburns@rallydev.com @MartinBurnsSCO www.rallydev.com Mburns@rallydev.com @MartinBurnsSCO To achieve the BEST OUTCOME from a CONSTRAINED CAPACITY SYSTEM Purpose of Prioritisation
  6. 6. Mburns@rallydev.com @MartinBurnsSCO www.rallydev.com Mburns@rallydev.com @MartinBurnsSCO 1. While you may ignore economics, it won’t ignore you 2. Sequence Jobs for Maximum Benefit 3. If you only quantify one thing, quantify the Cost of Delay Take an Economic View Principles of Product Development Flow, Don Reinertsen If you only have one takeaway from this workshop, let it be: READ THIS BOOK
  7. 7. Mburns@rallydev.com @MartinBurnsSCO www.rallydev.com Mburns@rallydev.com @MartinBurnsSCO To achieve the BEST ECONOMIC OUTCOME from a CONSTRAINED CAPACITY SYSTEM using JOB SEQUENCING to MINIMISE COST OF DELAY Don-Enhanced Purpose of Prioritisation
  8. 8. Mburns@rallydev.com @MartinBurnsSCO www.rallydev.com Mburns@rallydev.com @MartinBurnsSCO Cost of Delay: Single Big Batch –v- Incremental Small Batches Time ValueRealised Single Batch Delivery Incremental Delivery Additional Value Realised by Incremental Delivery, AKA Cost of Delay of Single Batch Delivery 0 0.5 1 1.5 2 2.5 Category 1 Series 3 Series 3
  9. 9. Mburns@rallydev.com @MartinBurnsSCO www.rallydev.com Mburns@rallydev.com @MartinBurnsSCO http://vimeo.com/101506552 More on CoD…
  10. 10. Mburns@rallydev.com @MartinBurnsSCO www.rallydev.com Mburns@rallydev.com @MartinBurnsSCO Which order would you deliver these in to achieve best outcome (minimum Cost of Delay)? Feature Duration Value A 10 weeks $100 B 10 weeks $1 000 C 10 weeks $1 000 000 Priority Choice: Equal Duration
  11. 11. Mburns@rallydev.com @MartinBurnsSCO www.rallydev.com Mburns@rallydev.com @MartinBurnsSCO Which order would you deliver these in to achieve best outcome (minimum Cost of Delay)? Feature Duration Value A 1 week $10 000 B 10 weeks $10 000 C 100 weeks $10 000 Priority Choice: Equal Value
  12. 12. Mburns@rallydev.com @MartinBurnsSCO www.rallydev.com Mburns@rallydev.com @MartinBurnsSCO Which order would you deliver these in to achieve best outcome (minimum Cost of Delay)? Feature Duration Value A 1 week $5 000 B 3 weeks $20 000 C 8 weeks $30 000 Priority Choice: Mixed Value, Mixed Duration
  13. 13. Mburns@rallydev.com @MartinBurnsSCO www.rallydev.com Mburns@rallydev.com @MartinBurnsSCO Best economic outcome is achieved by sequencing jobs in order of descending WSJF, calculated as: Estimate each factor in turn, using relative estimating in Story Point style: 1. Find the smallest in the set of jobs for that factor, call it a 1. 2. Score all other jobs relative to that, using the standard Fibonacci-ish set Note: The actual numbers do not mean anything in themselves, including the result. Only the resulting order. More at: http://www.scaledagileframework.com/wsjf/ Weighted Shortest Job First WSJF = Business Value + Time Sensitivity Value + Risk Reduction | Opportunity Enablement Value Duration (Proxied by Size)
  14. 14. Mburns@rallydev.com @MartinBurnsSCO www.rallydev.com Confidential Do not copy or distribute without express permission of Rally. ©2015 Rally Software Development Corp. All rights reserved. WSJF Typical Subfactors Business Value (make, save, protect money) Timing Criticality Opportunity Enablement/ Risk Reduction • Growth in revenue through more effective sales • Upsell/Cross Sell • Cross business strategy • Process simplification • Ease of registration • Profitable revenue growth • Share of wallet • ARPU • Cost savings • Unit cost • Cost to support • Cost to serve • Shift to low cost channels • Customer satisfaction • NPS • Growth of volume • User registrations • First time purchases • Seasonality • Peak period sales • Seasonal features • Dependencies • Technical • Co-ordination with offline activities (marketing/ training) • System Driven • Legacy system retirement • Investment priorities • Financial (Q end) targets • Funding availability • Early benefits • Customer segment growth • Competitive position • Barrier to entry of competitors • First to market • Being behind market • Acquisition integration • Customer Satisfaction • Obvious pain points • Brand Enhancement • Learning about our customers • Partner relationships • Simple Integration • Future Flexibility • Speed to Market • Customer retention • Reduced Churn Risk • Ease of Use • Scalability • Single Platform for customers • Error reduction in Content Management • Fewer returns • Market • Market Share • Entry to new markets • Ability to change market • Compelling offer to new subsegment • Technical Risk • Faster defect feedback loops
  15. 15. Mburns@rallydev.com @MartinBurnsSCO www.rallydev.com Mburns@rallydev.com @MartinBurnsSCO Simulation by Mark Richards @markatscale Download a copy from http://bit.ly/SAFeCitySimulation SAFe City Simulation
  16. 16. Mburns@rallydev.com @MartinBurnsSCO www.rallydev.com Mburns@rallydev.com @MartinBurnsSCO 1. Prioritise for best organisational economic outcome in constrained systems (ie all software development). 2. WSJF is a quick, simple way to achieve a rational ranking. 3. You will need some discussion about what high value in each factor means to your organisation, and this will likely evolve. 4. Scoring should be sensitive to organisational vision. 5. WSJF is highly sensitive to size. Encouraging smaller/sliced quanta of work is a very useful byproduct. 6. You will still have some HiPPO negotiation, but the scope for conflict is significantly reduced. AND FINALLY… 7. Read Don Reinertsen’s book. At least twice. Takeaways
  17. 17. Mburns@rallydev.com @MartinBurnsSCO www.rallydev.com Mburns@rallydev.com @MartinBurnsSCO Want to run this at your place? Get in Touch! mburns@rallydev.com @MartinBurnsSCO https://uk.linkedin.com/in/martinburnsuk
  18. 18. Mburns@rallydev.com @MartinBurnsSCO www.rallydev.com Confidential Do not copy or distribute without express permission of Rally. ©2015 Rally Software Development Corp. All rights reserved. Rally Power User Register online at agileu.com or contact your Rally account representative for group offers Rally Essentials OnDemand Free preview! ondemand.agileu.com SAFe® Program Consultant (SPC) Leading SAFe® Certified ScrumMaster (CSM) Certified Scrum Product Owner (CSPO) Leading Successful Agile Teams Leading Collaborative Meetings Agile Portfolio Management SAFe® ScrumXP SAFe® PM/PO Agile Certified Practitioner (PMI-ACP) Prep Agile Basics for Scrum Teams OnDemand NEW! Free preview! ondemand.agileu.com

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