Great slides from AgilePalooza Twin Cities: Brad Swanson is a Senior Agile Coach at agile42. He started his software career at age ten on the Apple IIe, and is now a Certified Scrum Coach (CSC), Certified Scrum Professional (CSP), and Certified Scrum Master (CSM) with 17 years of experience in management, project and program leadership, product management, and software development in both start-ups and large companies. Brad has led the adoption and implementation of agile and scrum methodology at many organizations, leading successful agile projects with teams in the US, Europe, and Asia. He has deep experience with agile software development, starting with eXtreme Programming (XP) in 1999, and also Scrum, Lean and Kanban methods. He is active in the Agile and Scrum communities as President of Agile Denver and speaker at international conferences such as Agile2011, Agile2012, Agile Tour Toronto and multiple Scrum Gatherings.
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1. agile42 | The Agile Coaching Company www.agile42.com | All rights reserved. Copyright Š 2007 - 2013
Portfolio Management using the Lean
Canvas
Brad Swanson, CSC, Senior Agile Coach
brad.swanson@agile42.com
@bradswanson
2. agile42 | The Agile Coaching Company www.agile42.com | All rights reserved. Copyright Š 2007 - 2012.
The
 Agile
 Coaching
 Company
Â
We
 make
 your
 agile
 transition
 succeed
Â
agile42 is a market leader in providing agile transformation services to companies
looking to adopt a more efďŹcient and adaptive way of working.
By continually reďŹning our approach, agile42 has developed a unique and proven
framework for supporting organizations in realizing the beneďŹts of a agile & lean
practices. We provide assessment, strategic consulting, training, and coaching to get
you results. Our customers regularly conďŹrm that they achieve:
⢠Accelerated revenue generation
⢠Faster Return-on-Investment
⢠Improved technical quality
⢠Rapid delivery to market
⢠Increased team motivation
3. agile42 | The Agile Coaching Company www.agile42.com | All rights reserved. Copyright Š 2007 - 2012.
Photo: Rory Mizen
Highest
Paid
Personâs
Opinion
4. agile42 | The Agile Coaching Company www.agile42.com | All rights reserved. Copyright Š 2007 - 2013
Adaptive Portfolio Credo: We Value...
â˘Optimizing the holistic portfolio over protecting
departmental budgets
â˘Courage to change over following a plan
â˘Ability to evaluate the portfolio on a frequent basis
over infrequent (i.e. annual) planning cycles
â˘Responding to emerging opportunities over sticking
to the plan
â˘Maximizing value over managing cost
â˘Collaborating on decisions over centralized authority
Scrum Coach Retreat, December 2011
5. agile42 | The Agile Coaching Company www.agile42.com | All rights reserved. Copyright Š 2007 - 2012.
1.
Problem
top
 3
 problems
Exis2ng
Â
alterna2ves
4.
Solu2on
top
 3
 features
8.
 Key
Â
metrics
e.g.
 AARRR
3.
 Unique
Â
value
Â
proposi2on
Clear
 compelling
Â
message.
 Why
Â
makes
 you
Â
diďŹerent?
Â
2.
Customer
Â
segments
Target
 customers
Early
 adopters?
9.
 Unfair
Â
advantage
Not
 easily
 copied
Â
or
 bought
5.
Channels
Path
 to
 customers
7.
 Cost
 Structure
Customer
 acquisi2on,
 distribu2on,
 people,
Â
etc.
6.
 Revenue
 streams
Revenue
 model,
 life
 2me
 value,
 revenue,
Â
gross
 margin
Lean Canvas: Ash Maurya
Lean
 Canvas,
 from
 Ash
 Maurya:
 Running
 Lean.
 Licensed
 under
 Crea2ve
 Commons-ÂâAVribu2on-ÂâShare
 Alike
 3.0
Product Market
6. agile42 | The Agile Coaching Company www.agile42.com | All rights reserved. Copyright Š 2007 - 2012.
BuildLearn
Measure
Minimize
time thru
the loop
Validated Learning: the Build-Measure-Learn cycle
Eric Ries: The Lean Startup
1) What do
we need to
learn?
2) How can we measure it?
3) What is the
simplest thing
to build that
would let us
measure?
7. agile42 | The Agile Coaching Company www.agile42.com | All rights reserved. Copyright Š 2007 - 2012.
Problem
Top
 3
 problems
Exis2ng
 /
alterna2ve
Â
solu2ons
Customer
Â
segments
Early
 adopters?
Success
Â
metrics
Leading
 and
 lagging
Â
indicators
Possible
Â
solu2ons
Key
 features
 &
Â
beneďŹts
 for
Â
customers
 &
Â
business
Business
Â
readiness
What
 is
 needed
Â
to
 deploy
 and
Â
support
 the
Â
solu2on?
(StaďŹ,
 budget,
 training,
Â
systems,
 support,
 opera2ons
Â
dependencies
 on
 projects/
vendors)
Channels
Path
 to
Â
customers
Costs
People,
 training,
 capital,
 marke2ng,
 etc.
+
 Objec2ve
 jus2ďŹca2on
Business
 value
1.
 User
 &
 business
 value
2.
 Cost
 of
 Delay
 (urgency)
3.
 risk
 reduc2on/opportunity
 enablement
+
 Objec2ve
 jus2ďŹca2on
Lean Project Canvas
ProductMarket
Cost
 of
 delay
time
linear
delaycost
1,2,3,5,8,13,21 1,2,3,5,8,13,21
<Title
 /
 headline>
8. agile42 | The Agile Coaching Company www.agile42.com | All rights reserved. Copyright Š 2007 - 2012.
time
linear
delaycost
time
must do now
delaycost
time
logarithmic
delaycost
time
intangible
delaycost
Cost of Delay is the cost we incur by delaying delivery of a product, due to lost
revenue or unrealized cost savings.
Cost of Delay proďŹles
time
fixed date
delaycost
Kenny Rubin: Essential Scrum
9. agile42 | The Agile Coaching Company www.agile42.com | All rights reserved. Copyright Š 2007 - 2012.
Problem
â˘Distributors
 donât
Â
know
 inventory
 and
Â
must
 call
 to
 ďŹnd
 it.
â˘Extra
 call
 volume
Exis2ng
 alterna2ve
Â
solu2ons
â˘Call
 to
 ďŹnd
 inventory
â˘Order
 on
 back-Ââorder
â˘The
 compe22on
Customer
Â
segments
â˘Distributors
Success
Â
metrics
â˘Inventory
 inquiry
Â
calls
 decline
 50%
â˘large
 orders
 increase
Â
by
 5%
â˘Customer
 reten2on
Â
up
 by
 2%
 (6
 months
Â
in)
Possible
Â
solu2ons
â˘Integrate
 ERP
Â
inventory
 to
 order
Â
system
 &
 web
 site
â˘Show
 es2mated
 ship
Â
date
 on
 orders
Business
Â
readiness
â˘Marke2ng
 to
Â
adver2se
 feature
â˘Warehouse
 staďŹ
 to
Â
test
 ERP
 integra2on
â˘Setup
 to
 measure
 #
Â
inventory
 inquiry
 calls
Channels
â˘Web
 site
â˘Adver2se
 to
Â
distributors
Costs
â˘Web
 site
 development:
 Small
â˘ERP
 integra2on
 Small
â˘Marke2ng:
 Small
Business
 value
â˘Large
 order
 increase:
 $100k/year
â˘Customer
 reten2on
 up
 2%:
 $100k/year
â˘$50k/year
 in
 reduced
 call
 volume
Example: Inventory visibility for distributors
ProductMarket
Cost
 of
 delay
time
linear
delaycost
1,2,3,5,8,13,21 1,2,3,5,8,13,21
10. agile42 | The Agile Coaching Company www.agile42.com | All rights reserved. Copyright Š 2007 - 2013
Business Value GameTM
What is the relative value of these features of a car?
1) 30 mpg fuel economy versus 20mpg (Baseline: )
2) leather seats
3) seating for 7 people (versus 4 people)
4) 100,000 mile warranty
5) side curtain airbags
1 2 3 5 8 13 21
5
11. agile42 | The Agile Coaching Company www.agile42.com | All rights reserved. Copyright Š 2007 - 2012.
Estimate the relative value of projects in a portfolio
1 2 3 5 8 13 21
12. agile42 | The Agile Coaching Company www.agile42.com | All rights reserved. Copyright Š 2007 - 2013
Process for Business Value Ranking
1. Stakeholders and Product Owners prepare canvases.
Optional: limit number per stakeholder
2. Review & validate canvases for completeness &
understanding - ahead of time
3. Select appropriate group of voting stakeholders and a
neutral facilitator
4. Brief âsales pitchâ for each project, based on the canvas
13. agile42 | The Agile Coaching Company www.agile42.com | All rights reserved. Copyright Š 2007 - 2013
Process for Business Value Ranking (2)
6. Choose a baseline project/canvas, assign it a mid-range
point value. Can shift up/down later if necessary.
7. Business Value GameTM,1; assign the relative value of
each project, without considering cost/effort (Alternative:
Buy a Feature2)
8. Delivery teams estimate cost/effort. Calculate ROI, or
WSJF (weighted shortest job ďŹrst)3
9. Prioritize & allocate investments: (1) ROI (WSJF), (2) cost
of delay (3) people/resource constraints
1agile42 2Innovation GamesÂŽ 2Dean LefďŹngwell: Agile Software Requirements
WSJF = (UV+CoD+RR|OE)/effort
14. agile42 | The Agile Coaching Company www.agile42.com | All rights reserved. Copyright Š 2007 - 2012.
ROI calculation & project priority
Project Total Value
Effort
(cost)
ROI Priority?
A 15 3 5
B 16 5 3.2
C 19 8 2.4
D 27 13 2
15. agile42 | The Agile Coaching Company www.agile42.com | All rights reserved. Copyright Š 2007 - 2012.
Project
User
value
RR&OE
value
Time
value
(CoD)
CoD
proďŹle
Total
Value
Effort
(cost)
ROI Priority?
A 1 1 13 15 3 5
B 13 1 2 16 5 3.2
C 3 13 3 19 8 2.4
D 21 1 5 27 13 2
*RR: Risk reduction. OE: Opportunity enablement. CoD: Cost of delay
ROI calculation & project priority
16. agile42 | The Agile Coaching Company www.agile42.com | All rights reserved. Copyright Š 2007 - 2012.
Photo: Rory Mizen
Highest
Paid
Personâs
Opinion
No
HiPPOs
allowed !
Brad Swanson, CSC, Senior Agile Coach
brad.swanson@agile42.com
@bradswanson
http://www.agile42.com/en/blog/2013/04/11/lean-project-canvas/