ReThinking Portfolio and Capacity Planning Gov

8/26/2014
Re-Thinking Portfolio and

Capacity Planning
About Me Sally Elatta

President Agile Transformation Inc.
Author/Publisher of www.AgileVideos.com
Leading Agile Transformation Coach, Trainer and Speaker
Agile Portfolio Transformation Book (In the works!)
Certified by PMI, ScrumAlliance, IBM, Microsoft, ICAgile
Trained thousands and helped coach dozens of teams on Agile
Agile Expert for PMI.org LEAD CoP
I am simply a transformer. Someone who is really
passionate about transforming individuals, teams and
organizations to doing what they do better. I believe in
Servant Leadership as the way to lead change and create a
culture of empowered collaborative high performing teams.
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Copyright(c) Agile Transformation Inc.
Copyright Agile Transformation Inc | www.AgileTraining.com
8/26/2014
Lets Talk About
Thinking Workshop
8/26/2014
Top Challenges/Drivers for Change

Silos, handoffs,
heavy processes,
lack of trust/
communication
Planning and
estimating methods
setup the project for
failure
Gov contracts
attempt to fix
everything upfront
and mandate heavy
processes
Slow time to
completion, too long
to deliver
Inherited a tangled
mess of nonintegrated legacy
applications
Quality and rework

issues
Missing, incomplete,
changing,
ambiguous
requirements
No value/ ROI
measurement, only
focus on cost
measurement
Lack of clear
direction, no
engaged customer,
wasteful meetings
Heavy engineering
and testing
processes, no
automation
Lack of
empowerment, low
engagement and
morale
Specialized roles,
not my task thinking
Testing occurs at the

end (too late)
resulting in many
defects
Overproduction,
working on wasteful
features
5
A High Performance Culture

Clarity
Who are we and how do we behave?

What is important now? Why?
Focus
Execution
How do we deliver value
and measure success?
Can we stay focused till Done?

8/26/2014
RE-THINKING PORTFOLIO
MANAGEMENT
What are the 6 levels of Agile planning?
How is Agile Portfolio Management Differ from Traditional
Approaches?
What does the Agile/Lean Portfolio Lifecycle look like?
8/26/2014
From Silos to Collaboration
Workshop The Multitasking Game!
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The Multitasking Name Game
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What Problem are We Trying to Solve?

Multitasking People on Several Projects
at the Same Time
Starting too many things

No single point of entry
No gate/qualification
False illusion of progress by getting things started
Constant resource shifting causing lack of focus
No understanding of capacity
Backlogs are not ranked
Lack of clarity, focus, execution discipline
This is the # Killer of

Organizational Productivity
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Asking the Wrong Questions

Were asking the wrong questions:
Which resources are available instead of Which team is
ready to pull this project into their backlog

How can I have an enterprise view of my resources instead
of How can I have an enterprise view of my execution teams
What is our enterprise capacity in terms of resource hours
instead of What is our enterprise velocity per Quarter?
Pushing projects beyond capacity actually causes an
organization to slow down!
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6 Levels of Agile Planning

Strategic Planning
Strategic Planning by Executive Leaders
Portfolio Planning 2
Portfolio Planning by Customer Unit
Product/Program Planning 3
Product Planning by Product Managers
Release Planning 4
Release Planning by Product Owner/Team
Iteration Planning 5
Iteration Planning by Team/PO
Daily Planning 6
Daily Task Planning by Team
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Agile Portfolio Lifecycle
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The Agile Lifecycle
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The Basic Team Structure
Backlog
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Business Vision
What? Why?

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Measurement
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How

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Team
Facilitator
Technical
Vision
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Program Team
Program Leadership Team
18 Agile Transformation Inc.

Copyright(c)
PULL from the Backlog
(Scrum of Scrums)
8/26/2014
Portfolio Management Team
PULL from the Backlog
Portfolio Team
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Enterprise Stable Teams View
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What the CEO Thinks
http://agileforgovernment.com/real-transformation-videos/
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Enterprise Command Center

Aligning Delivery with Strategy
The Vision: BCBSNE will have an engaged and collaborative workforce unified
in their pursuit of common goals and efficiently delivering on key initiatives.
Strategic Objectives & Projects
3 Year Roadmap
Stable Teams
Key Performance Indicators
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Sample Point and Cost Burn Up Chart

What is Done? How much did it cost me?
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Sample Enterprise Capacity Table

Enterprise capacity is estimated by how many
points your stable teams can deliver per quarter.
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Top Metrics for Success

Predictable Velocity
Variance between target vs. actual velocity/throughput
Time to Market, Early Delivery

How much faster are we delivering work? Lead and Cycle time reduction
Value/ROI
Number of releases and number of features per release.
Quality
Escaped defects
Confidence and Satisfaction

Team happiness and confidence
Customer satisfaction and confidence
Collaboration
Are we more collaborative within IT and between IT and Business partners?
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TeamHealth = Enterprise Health
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Decision Time!!
How do we structure our teams so
they can deliver value against our
strategic initiatives?
How do we solve the Project work

vs. Support work problem so teams
can have focus?
Do we specialize teams to focus on a

specific area of work (BI, Web, by
Customer, Membership, Claims..etc) or do
we build generalizing teams that can pull
any project? Maybe both?
How do we handle shared resources

who are SMEs?
Should we continue the current

project for this team or stop it?
Which item will this team pull next?
How many enterprise teams do we

have and what is our capacity?
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Key Points - Summary

Executives and Leaders Need Education on Agile/Lean Portfolio Management
Create Ranked Backlogs based on Value/Risk/Dependency
Break Projects Down to Shorter Deliverables
Teams Pull Next Deliverable Based on Capacity
Stop or Reduce Project Multi-Tasking.
Think: CLARITY | FOCUS | EXECUTION | CULTURAL TRANSFORMATION
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8/26/2014
Download This Presentation

Download this presentation from:
www.agileforgovernment.com/download
Watch Free Videos: http://www.AgileVideos.com

Contact Us:
Sally@AgileTransformation.com
Paul.Lucas@AgileTransformation.com
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Leaders in Agile Transformations!

Transformation Strategy Planning | Executive & Team Coaching |
Training | Agile Assessments
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TRANSFORMATION
ROADMAP
Concrete steps for Piloting, Scaling, Enterprise
Concrete learning roadmap
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Transformation Phases
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Transformation Inc.
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Agile
Transformation
Inc
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8/26/2014
Transformation Roadmap
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Transformation Inc.
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Agile
Transformation
Inc
Learning Roadmap
33
8/26/2014
Additional Considerations
Planning for Agile Program teams
Teams working on the same larger initiative will need additional coordination through
a program leadership team.
Agile/Lean Portfolio Management

If the organization desires for teams to pull from an enterprise/portfolio ranked
backlog, then an Agile portfolio leadership team needs to be stood up and trained.
Distributed Teams
Where the team members are located may impact the design of the team and their
speed towards Agile maturity.
Strong ScrumMasters
Standing up several teams at the same time following an aggressive schedule
requires strong ScrumMasters supporting the coaches.
Management Support
Lack of understanding or support by middle management will potentially kill the
transformation
35
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Transformation Inc.
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Agile
Transformation
Inc
WHY AGILE? DOES IT WORK?
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DATA OVERLOAD WARNING!

This next part will likely result in..
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Comparing Success Factors by Method

(Scale is from -10 to +10).
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Bottom Line from Survey Data

Data from 15183 respondents worldwide suggests
consensus on 67% more productivity, 65% more
Quality and 49% better on cost compared with
traditional methods.
Source : The Business Value of Agile Software Methods by Dr. F Rico, Dr. H Sayani, Dr. S Sone Page 89
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Bottom Line from Case Studies

79 studies with quantitative data proves average
ROI of 1872% ($20 return for $1 invested) for
Agile - ROI is due to
high productivity and high quality
Source : The Business Value of Agile Software Methods by Dr. F Rico, Dr. H Sayani, Dr. S Sone
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8/26/2014
ROI of Agile Methods vs. Traditional
Source : The Business Value of Agile Software Methods by Dr. F Rico, Dr. H Sayani, Dr. S Sone
Picture Souce: www.People10.com
41
Agile vs. Traditional Success

Standish Group. (2012). Chaos manifesto. Boston, MA: Author.
Agile
Traditional
Success
14%
Success
42%
Failed
9%
Challenged
49%
Failed
29%
Challenged
57%
42
42
8/26/2014
Agile vs. CMMI
Dozens of surveys of agile methods since 2003

100s of Agile and CMMI case studies documented
Agile productivity, quality, and cost better than CMMI
Rico, D. F. (2008). What is the return-on-investment of agile methods? Retrieved February 3, 2009, from http://davidfrico.com/rico08a.pdf
Rico, D. F. (2008). What is the ROI of agile vs. traditional methods? TickIT International, 10(4), 9-18.
43 43
Cost, Time, Staffing, Quality (QSM)
Analysis of 23 agile vs. 7,500 traditional projects

Agile projects are 54% better than traditional ones
Agile has lower costs (61%) and fewer defects (93%)
2.8
After Agile
2.25
Project Cost in Millions $
18
61%
Lower
Cost
Before Agile
13.5
After Agile
15
39%
Less
Staff
Total Staffing
2270
Before Agile
2500
After Agile
1875
10
After Agile
11
10
0.75
20
Before Agile
20
15
1.1
1.50
18
Before Agile
3.00
1250
24%
Faster
Delivery Time in Months
381
625
Cumulative Defects
93%
Less
Defects
Mah, Michael. QSM (2008). Measuring agile in the enterprise: Proceedings of the Agile 2008 Conference, Toronto, Canada.
44 44
8/26/2014
Agility = Above Industry Performance
Study of 15 agile vs. non-agile Fortune 500 firms

Based on models to measure organizational agility
Agile firms out perform non agile firms by up to 36%
Hoque, F., et al. (2007). Business technology convergence. The role of business technology
convergence in innovation and adaptability and its effect on financial performance. Stamford, CT:
BTM Institute.
45 45
VersionOne State of Agile Survey 2011
Benefits Realized from Agile Adoption
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8/26/2014
Agile Adoption Future Predictions

Gartner predicts that 80% of all software projects
will move to Agile in the next couple of years.
PMI has put their full
weight behind Agile which

will lead to faster global
acceptance and adoption of
Agile.
47
AGILE IN THE GOVERNMENT

(CASE STUDIES)
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8/26/2014
Industries Adopting Agile
80% of worldwide IT projects use agile methods

Includes regulated industries, i.e., DoD, FDA, etc.
Agile now used for safety critical systems, FBI, etc.
Industry
Org
Project
Purpose
Electronic
Commerce
Google
Adwords
Advertising
Shrink
Wrapped
Primavera
Primavera
Project
Management
Health
Care
FDA
m2000
Blood
Analysis
Law
Enforcement
FBI
Sentinel
Case File
Workflow
U.S.
DoD
Stratcom
SKIweb
Knowledge
Management
Size
20 teams
140 people
5 countries
15 teams
90 people
Collocated
4 teams
20 people
Collocated
10 teams
50 people
Collocated
3 teams
12 people
Collocated
Metrics
1,838 User Stories
6,250 Function Points
500,000 Lines of Code
26,809 User Stories
7,291,666 Lines of Code
1,659 User Stories
3,947 User Stories
1,073,529 Lines of Code
390 User Stories
Rico, D. F., Sayani, H. H., & Sone, S. (2009). The business value of agile software methods: Maximizing ROI with just-in-time processes and
Rico, D.Ft.
F. (2010).
Lean and
project
management: For large programs and projects. Proceedings of the First International Conference on Lean
documentation.
Lauderdale,
FL:agile
J. Ross
Publishing.
Enterprise Software and Systems, Helsinki, Finland, 37-43.
49 49
The FBIs Sentinel Project Succeeds with

Agile
After almost a decade of mismanagement and
waste at the FBI (costing $597 Million), its CIO
turned the agency's maligned case management
implementation into an agile project. Two years
later (and $99 Million), the system is live. This
relative success, as well as the example of other
federal agencies, shows that agile can work in
Washington. - By Jason Bloomberg
Project: Sentinel came under its $451 Million revamped budget
Source: http://bit.ly/PKayyX
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8/26/2014
Agile in the Government

The US Army Software Radio was also a large multi-billion
dollar Waterfall project saved by Agile methods in the 11th hour.
A small Agile team finished all the hardware and software at a
fraction of the total budget delivering a complex system on time.
Agile methods are now being used to complete the avionics

software systems for both the F35 and F22.
The Ministry of Defense, US Veteran Affairs, the UK

Government Digital Service, in India, Australia and New
Zealand have all demonstrated that Agile can work for
Governments.
51
Agile Government Really??

Department of Defense CIO Teri Takais new mission
statement:
"To deliver agile and secure information capabilities to enhance combat
power and decision-making."
DOD looks to reduce overall spending by $500 billion over 10
years.
The GAO report profiles agile initiatives from the Department
of Defense, NASA, the US Patent and Trademark Office, the
VA and the IRS.
Source: http://bit.ly/PMPTIa - Jason Bloomberg www.cio.com
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8/26/2014
Agile Government - Really??

Agile and iterative development is now backed by the
top leaders in the Government:
Vivek Kundra: the former federal CIO called for adoption of
cloud services and other "light technologies" and advocated

modular IT projects where "usable functionality" gets
delivered every six months.
Steven VanRoekel: the new federal CIO calls on agencies to
embrace modular development and run our projects in lean
startup mode
Source: http://bit.ly/PMPTIa
53
Beware The Spiral of Death!
54

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8/26/2014

Re-Thinking Portfolio and

About Me Sally Elatta

Copyright Agile Transformation Inc | www.AgileTraining.com

Lets Talk About

Copyright(c) Agile Transformation Inc.

Copyright(c) Agile Transformation Inc.

Copyright Agile Transformation Inc | www.AgileTraining.com

Top Challenges/Drivers for Change

Quality and rework

Testing occurs at the

Copyright(c) Agile Transformation Inc.

A High Performance Culture

Who are we and how do we behave?

Can we stay focused till Done?

Copyright Agile Transformation Inc | www.AgileTraining.com

Copyright(c) Agile Transformation Inc.

Copyright Agile Transformation Inc | www.AgileTraining.com

From Silos to Collaboration

Copyright(c) Agile Transformation Inc.

Workshop The Multitasking Game!

Copyright(c) Agile Transformation Inc.

Copyright Agile Transformation Inc | www.AgileTraining.com

The Multitasking Name Game

Copyright(c) Agile Transformation Inc.

What Problem are We Trying to Solve?

Starting too many things

This is the # Killer of

Copyright Agile Transformation Inc | www.AgileTraining.com

Asking the Wrong Questions

ready to pull this project into their backlog

organization to slow down!

Copyright(c) Agile Transformation Inc.

6 Levels of Agile Planning

Strategic Planning by Executive Leaders

Copyright(c) Agile Transformation Inc.

Copyright Agile Transformation Inc | www.AgileTraining.com

Agile Portfolio Lifecycle

Copyright(c) Agile Transformation Inc.

The Agile Lifecycle

Copyright(c) Agile Transformation Inc.

Copyright Agile Transformation Inc | www.AgileTraining.com

The Basic Team Structure

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Copyright(c) Agile Transformation Inc.

Program Leadership Team

18 Agile Transformation Inc.

Copyright Agile Transformation Inc | www.AgileTraining.com

PULL from the Backlog

Portfolio Management Team

Copyright(c) Agile Transformation Inc.

PULL from the Backlog

Enterprise Stable Teams View

Copyright(c) Agile Transformation Inc.

Copyright Agile Transformation Inc | www.AgileTraining.com

What the CEO Thinks

Copyright(c) Agile Transformation Inc.

Enterprise Command Center

Key Performance Indicators

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