Culture Clash: Agile Cadence vs. Business Cadence

PMC March 2015

Culture Clash! Agile Cadence vs. Business Cadence

© 2014 Pivotal Product Management, LLC

Tonight’s Key Take-Aways

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• How jet fighter tactics apply to your business

• How to start shifting attitudes and practices toward business agility

• How to synchronize business and development cadence for competitive advantage


Good News: Agile Development Works!

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Bad News: The rest of the organization isn’t so agile.

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How do you move toward business

agility in a world of annual planning?


Change the Plan vs. Plan for Change

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Take shots at the annual target vs. execute OODA loops


OODA Loops?

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Observe

Orient

Decide

Act

Learn more: “Certain to Win” by

Chet Richards


What situations drive the need for agility?

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Kind of challenge

Problem Definition

Solution PlanningMethod

Results

Technical (Familiar)

Understood Proven Conventional Delivering results that are close to what was

planned.

Adaptive(New)

Requires learning

Requires learning

Adaptive Gaining evidence on which to base

subsequent actions and decisions.


Plan for Change

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• Annual strategy review with quarterly planning, 5-quarters forward

• Use KPIs with percentage improvements instead of fixed goals

• Determine best use of discretionary budget

MANAGING YOUR BACKLOGS

© 2014 Pivotal Product Management, LLC 9


Screen Ideas

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Product Backlog


Backlog Prioritization: Weighted Shortest Job First

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WSJF = User Value + Time Value + RR|OE* Value

Job Size

* RR|OE: Risk Reduction/Opportunity Enablement


WSJF Cost of Delay Components

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• They prefer ‘this’ over ‘that’

• Revenue impact for the business

• Penalty potential on the business

USER VALUE: Relative value in the eyes of the customer

• Is there a fixed deadline (i.e. compliance)

• Will customers wait? or move to another solution?

• What is the effect on customer satisfaction?

TIME VALUE: How user value decays over time

• Reduce the risk of this or future delivery

• Is there value in the information we will receive?

• Enable new business opportunities?

RR|OE: What else does this do for our business?


Backlog with WSJF Scoring

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Product Backlog

WSJF Scoring

User Value

Time Value RR|OE*

JobSize Score

Story ID Story

Backlog Priority Sprint Release

Acceptance Criteria

5 2 8 2 7.5 14

As a <user> I want to <do something> so I can <get benefit>. 1 3 v2.1

5 8 2 5 3 17


1 1 1 1 1 22


Scale for each parameter: 1, 2, 3, 5, 8, 13, 21 Done one column at a time, start by picking the smallest item and giving it a “1” (There must be

at least one “1” in each column!) Job Size is re-estimated for remaining work each time you re-prioritize (ignore sunk costs!) Score=(User Value + Time Value + RR|OE Value)/Job Size Highest number is the highest priority. RR|OE: Risk Reduction/Opportunity Enablement


MVPs

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Approach Business Cases Iteratively: Lean Canvas

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Hypothesize and test each box


Kill Aggressively; Ignore Sunk Costs

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Pro

ble

m Problem definition

Customers & Markets

Value Proposition So

luti

on

/Pro

toty

pe Solution

definition

Unique advantage

ChannelB

usi

nes

s V

alu

e Key metrics

Revenue streams

Cost structure P

rod

uct

ion

MV

P Launch

Drive adoption

Monitor Customer Satisfaction

Op

erat

e Enhance

Refine metrics

Manage life cycle

Incremental Funding and Go/No Go Decision Points

Submit to product council

IdeaAssign

PMApprove

Submit business

case

OptyAnalysis

Assign dev

teamApprove

Measure Product Planning Cycle Time

To verification

Design, Build Test

To Operations

Validation Gain valueLaunch

Value

Waste

Value

Waste

Efficiency = Total Value/

(Total Value+TotalWaste)

17© Pivotal Product Management, LLC


Manage Stakeholder Commitments

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THIS NOT THIS


Manage Stakeholder Commitments

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Q1 Q2 Q3 Q4 Q5

Eve

nts

,R

hyt

hm

sB

usi

ne

ss

Ob

ject

ive

s/Th

eme

s

Key

Fea

ture

sK

ey

Re

sou

rce

s,

De

liver

able

s &

D

ep

en

den

cies

COMMITTED LIKELY FORECAST


In Summary…

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• Start building flexibility in “adaptive challenge” areas

• Use OODA loops annually, quarterly, and as needed

• Approach business cases incrementally

• Don’t let the lists get too long

• Spend wiselyYour Questions?


Want to learn more?

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• Beyond Budgeting (Hope, Fraser)

• Certain To Win (Richards)

• Agile Software Requirements (Leffingwell)

• Agile Product Management classes – see me!


Thank [email protected]

Linda Merrick, CPM, ACPM, CSPO, SPC

25+ years experience in software product management

AIPMM “Excellence in Product Management Education” award

winner

Instructor and advisor UW Software Product Management

Certificate Program

Pivotal Product

Management:

skills

assessment,

training,

consulting and

coaching for

greater product success.

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Culture Clash: Agile Cadence vs. Business Cadence

Technology

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