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Mburns@rallydev.com @MartinBurnsSCOwww.rallydev.com
Mburns@rallydev.com @MartinBurnsSCO
SAFe CityEconomic Prioritisation Workshop with WSJF
Martin Burns
Mburns@rallydev.com @MartinBurnsSCOwww.rallydev.com
Mburns@rallydev.com @MartinBurnsSCO
Does it sound a little like this?
How Do You Prioritise?
Mburns@rallydev.com @MartinBurnsSCOwww.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 HiPPOHighest Paid Person’s Opinion
MY thing is THE MOST
IMPORTANT
MY thing is A MUST DO
Photo: Wikipedia.org
Mburns@rallydev.com @MartinBurnsSCOwww.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?
Mburns@rallydev.com @MartinBurnsSCOwww.rallydev.com
Mburns@rallydev.com @MartinBurnsSCO
To achieve the BEST OUTCOME
from a CONSTRAINED
CAPACITY SYSTEM
Purpose of Prioritisation
Mburns@rallydev.com @MartinBurnsSCOwww.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
Mburns@rallydev.com @MartinBurnsSCOwww.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
Mburns@rallydev.com @MartinBurnsSCOwww.rallydev.com
Mburns@rallydev.com @MartinBurnsSCO
Cost of Delay: Single Big Batch –v- Incremental Small Batches
Time
Valu
e R
ealis
ed
Single Batch Delivery Incremental Delivery
Additional Value Realised by Incremental Delivery, AKA Cost of Delay of Single Batch Delivery
Category 10
0.5
1
1.5
2
2.5
Series 3
Series 3
Mburns@rallydev.com @MartinBurnsSCOwww.rallydev.com
Mburns@rallydev.com @MartinBurnsSCO
http://vimeo.com/101506552
More on CoD…
Mburns@rallydev.com @MartinBurnsSCOwww.rallydev.com
Mburns@rallydev.com @MartinBurnsSCO
Which order would you deliver these in to achieve best outcome (minimum Cost of Delay)?
Feature Duration ValueA 10 weeks $100B 10 weeks $1 000C 10 weeks $1 000 000
Priority Choice: Equal Duration
Mburns@rallydev.com @MartinBurnsSCOwww.rallydev.com
Mburns@rallydev.com @MartinBurnsSCO
Which order would you deliver these in to achieve best outcome (minimum Cost of Delay)?
Feature Duration ValueA 1 week $10 000B 10 weeks $10 000C 100 weeks $10 000
Priority Choice: Equal Value
Mburns@rallydev.com @MartinBurnsSCOwww.rallydev.com
Mburns@rallydev.com @MartinBurnsSCO
Which order would you deliver these in to achieve best outcome (minimum Cost of Delay)?
Feature Duration ValueA 1 week $5 000B 3 weeks $20 000C 8 weeks $30 000
Priority Choice: Mixed Value, Mixed Duration
Mburns@rallydev.com @MartinBurnsSCOwww.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)
Mburns@rallydev.com @MartinBurnsSCOwww.rallydev.com
Confidential Do not copy or distribute without express permission of Rally. ©2015 Rally Software Development Corp. All rights reserved.
WSJF Typical SubfactorsBusiness 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
Mburns@rallydev.com @MartinBurnsSCOwww.rallydev.com
Mburns@rallydev.com @MartinBurnsSCO
Simulation by Mark Richards
@markatscale
Download a copy fromhttp://bit.ly/SAFeCitySimulation
SAFe City Simulation
Mburns@rallydev.com @MartinBurnsSCOwww.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
Mburns@rallydev.com @MartinBurnsSCOwww.rallydev.com
Mburns@rallydev.com @MartinBurnsSCO
Want to run this at your place?Get in Touch!mburns@rallydev.com
@MartinBurnsSCOhttps://uk.linkedin.com/in/martinburnsuk
Mburns@rallydev.com @MartinBurnsSCOwww.rallydev.com
Confidential Do not copy or distribute without express permission of Rally. ©2015 Rally Software Development Corp. All rights reserved.
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