Download the associated webinar on demand: https://www.cprime.com/resource/webinars/from-project-to-product-lets-talk-funding/ Despite the substantial buzz about becoming a product-driven organization, all too often companies are holding on to their old project-based ways due to some “big rock” constraints, the biggest one being the project-based funding model. In this webinar with Anne Steiner, Vice President of Product and Technology at Cprime, you’ll learn: - How the transition from project to product affects funding models - Why project-based funding models stifle agility - The benefits of product-based funding models

1. ©2021 Cprime, Inc. All rights reserved and no copying without express written permission. WWW.CPRIME.COM | 877.753.2760

2. ©2021 Cprime, Inc. All rights reserved and no copying without express written permission. WWW.CPRIME.COM | 877.753.2760
PRODUCT AGILITY
SCALE PRODUCT, NOT PROCESS.
FROM PROJECT TO PRODUCT
Let’s Talk Funding

3. 3
HOUSEKEEPING ITEMS
Audio is streamed through
your computer speakers, so
make sure your audio is on
and turned up.
The recording and slides will
be sent to everyone via email
within 24-48 hours after the
webinar concludes.
Submit questions any time
during this presentation via
the Q&A box on the bottom
panel of your screen.

4. 4
ANNE STEINER, VP, Product & Technology, Cprime
• 10 years as an FE Developer
• 7 years as a Product Manager
• 5+ years as a Leader, Coach, and Executive
• Head of Product & Technology at Cprime
ABOUT THIS TALK
• The funding problem is challenging; I don’t have all the answers.
• The funding problem is important, and this change can be made incrementally.
OUR SPEAKER

5. 5
AGENDA
01 FROM PROJECT TO PRODUCT
02 FUNDING TEAMS
03 PRODUCT-BASED FUNDING
04 GETTING STARTED
05 TAKE AWAY’S AND Q&A

6. FROM PROJECT TO PRODUCT
Product Over Project
05/12/2021 | Anne Steiner, VP of Product & Technology

7. 7
A project is a temporary
endeavor undertaken to
create a unique
product or service.
A product is the thing
that you build
(or the service you provide)
that impacts people.

8. 8
PLANNING & BUDGETING
Plan
Driven
Value & Quality
Driven
Cost Schedule
Scope (Rqt’s) Cost Schedule
Scope (Outcomes)
Fix cost and schedule;
float the scope
Fix the scope; float the
cost and schedule
PROJECT
The plan drives cost &
schedule estimates.
PRODUCT
The vision drives outcome-
based roadmaps.
TIME, BUDGET, SCOPE – PICK 2; AGILE LETS US PICK DATE

9. 9
WHAT’S HOLDING US BACK?
FUNDING
SEPARATION OF
BUSINESS & IT
ROLE OF PMO
PRODUCT
MANAGEMENT
DEDICATED TEAMS
AND MORE…

10. FUNDING TEAMS NOT FEATURES
Investing Over Guessing
05/12/2021 | Anne Steiner, VP of Product & Technology

11. 11
FUNDING BY TEAMS ALLOWS CHANGE WITH PREDICTABLE COSTS
BRINGING PEOPLE TO THE WORK BRINGING WORK TO THE TEAMS
TEAM
TEAM
Backlog
Backlog
Project 1
Project 2
Project 3

12. 12
Who?
A Fortune 200 energy company
What?
One team of people
Cross-functional expertise
Not considered “A players”
Why?
Company adopting agility
Conducting an experiment
ONE DEDICATED TEAM – A CASE STUDY IN EFFECTIVENESS
In the End
• Exceeded roadmap expectations by 2x
• Reduced production defects by 90%
• Finished nearly $1M UNDER budget
• Business applauded team’s
responsiveness, productivity, and
quality of product
• Team members were happier and now
perceived as “A players”

13. PRODUCT-BASED FUNDING
Investing Over Budgeting
05/12/2021 | Anne Steiner, VP of Product & Technology

14. 14
PROJECT-BASED FUNDING IS RISKY
Big Bet
• Estimate time, budget, and scope upfront
• Argue for funding based on estimate
• Fund in large chunk for long time
• Deliver when it is “done”
• Hope for market fit
• Big bet = big risk
What if…
• The market shifts
• Customer needs shift
• We guessed wrong
• Users don’t want it
• It doesn’t get built the way
we asked
• We go over budget
• We don’t deliver in time
X

15. 15
Product-based funding allocates investment dollars to
iteratively enhancing the value of a product or portfolio of
products.
Also called Capacity-Based Funding, this method highly
favors the use of persistent and self-organizing teams.

16. PRODUCT-BASED FUNDING FUELS ADAPTABILITY
1. Invest by product lines, products, and ultimately, product teams
2. Progress against product roadmap in order
3. Adapt roadmap as we discover, delivery, and learn from our users and market
4. Adapt investments as market/business conditions lead you to

17. 17
INVESTING BY PRODUCT IS ABOUT MAKING BETS
Product Family Product Family Product Family
Product Portfolio
Product Product Product Product

18. 18
NOW WE MAP OUR BETS TO INVESTMENT
Product Family Product Family Product Family
Product Portfolio
Product Product Product
Team Team Team
Product
Team

19. PROGRESS AGAINST A ROADMAP; GET TO REVENUE FASTER
Product Horizon
$250k $250k $250k
$250k
$250k
$250k
$250k
$250k
$250k
Enterprise Agility
X
X X X
X
!
!
!
MVP
1
2
3
.
.
.
Roadmap /
Backlog
$50M
!

20. 20
ADAPT INVESTMENT AS NEEDED
• Planning / Forecasting Cycle
• Funding Cycle
• Dynamic Forecasting / Budgeting Cycle
PLANNING / FORECASTING (ANNUAL)
FUNDING (ANNUAL)
. . .
DYNAMIC FORECASTING /
BUDGETING (QUARTERLY)

21. 21
Who?
A Fortune 100 insurance company
What?
Multiple lines of business
Project -> Product-based funding
Part of a mature “agile transformation”
Why?
Funding was constraint
Needed more responsiveness
Needed decentralizing decision making
PRODUCT-BASED FUNDING IN ACTION AT “MEGA CORP”
In the End
- Funding allocated…
- By business value streams
- Based on investment in strategic outcomes
- All audits passed; company in compliance
- Increased “efficiency” across nearly all teams
and businesses measured by
- Cycle time
- Throughput
- Value stream size
- Feature size
- Team churn and turnover reduced
- Realized revenue sooner and was more
responsive to market needs

22. GETTING STARTED
Putting Product-Based Funding Into Action
05/12/2021 | Anne Steiner, VP of Product & Technology

23. 23
HOW DO WE START? - AN EXAMPLE
SUPPORT &
OPERATIONS
ENHANCEMENTS &
CUSTOMER REQUESTS
STRATEGIC INITIATIVES
1. Fund by teams / product areas not
features / scope
2. Blur the lines between “Enhancement”
layers
3. Use strategic initiatives as forum for
advocating for sustained investment
4. Use roadmap reviews as points of
inspection
5. Favor adjusting the roadmap/direction
versus adjusting the funding

24. 24
Product over Project
Product over Process
Product Teams over Project Teams
Outcomes over Output
Investing over Budgeting
Profitable Growth over Cost Cutting
SUCCESS IS…

25. 25
CPRIME RESOURCES
“Project to Product: Building the
Right Thing in the Right Way”
https://www.cprime.com/resour
ce/white-papers/project-to-
product-building-the-right-
thing-in-the-right-way/

26. 26
FOLLOW US ON SOCIAL MEDIA
Share in the conversation & keep updated on
thought leadership, events & more!
on LinkedIn, Twitter, Facebook, & YouTube

27. QUESTIONS?
WWW.CPRIME.COM | 877.753.2760
QUESTIONS?
WWW.CPRIME.COM | 877.753.2760

28. 28
WWW.CPRIME.COM | 877.753.2760
LEARN@CPRIME.COM | (877) 753-2760 | WWW.CPRIME.COM
Coaching and Leading Product Agility
Anne Steiner
anne.steiner@cprime.com
linkedin.com/in/annesteiner @annesteiner7

29. QUESTIONS?
WWW.CPRIME.COM | 877.753.2760
THANK YOU
WWW.CPRIME.COM | 877.753.2760