VALUE DRIVEN MANAGEMENT Building an anti-fragile organization · product architecture & agile...

Victoria Hall & Linda Luu

VALUE DRIVEN MANAGEMENT Building an anti-fragile organization enabling business agility at scale

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•  Principal at ThoughtWorks; CSM, CSP •  Decades of industry experience as an

executive and individual contributor •  Lives in Santa Fe, NM loves the outdoors

Linda Luu Victoria Hall

•  Principal at ThoughtWorks •  Lean UX, Product & Portfolio Coach •  Author of The Lean Product Guide •  Lives in San Francisco, loves vegemite @LindaKLuu

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Only a fool would try to make a 5-year prediction in a world that is so random.

Credit Suisse CEO, Tidjane Thiam

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Source: http://bestthenews.com/article/evolution-fintech-regulation-

india-fri-04292016-1254.html

NARROWING THE GAP

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Tech

nolo

gy

Chan

ge

Time

Tech available to

new disruptors

Enterprise’s ability to absorb

new tech evolution

Gap in ability to explore and

exploit opportunities

Industry Models

Technology Maturity

Technology adoption use cases

Business Process

Business Model Evolution

Tech

nolo

gy

Chan

ge

Time

Tech available to

new disruptors

Enterprise’s ability to absorb

new tech evolution

Gap in ability to explore and

exploit opportunities

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Today

VALUE MANAGEMENT

PRINCIPLES

STORIES

GETTING STARTED

Q&A

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VALUE DRIVEN MANAGEMENT Building a responsive

enterprise through Portfolio Management

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CAPABILITY IS DETERMINED BY CULTURE

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CROSSING THE CHASM

11 *Circa 1952

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DESIGNBUILD TEST

SHOWCASES

Agile Teams

TEST

Centralized QA

RELEASE

IT Operations

WATER - SCRUM - FALL

https://www.scrumalliance.org/community/articles/2015/june/water-scrum-fal

INVEST PLAN

Exec + Finance PMO

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“The last mile”

RELEASE

BUILDLEARN

RELEASE

BUILDLEARN

RELEASE

BUILDLEARN

CONTINUOUS DESIGN. CONTINUOUS DELIVERY

INVEST PLAN

Exec + Finance PMO

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EXECUTIVE VISION & STRATEGY

GOAL GOAL GOAL

BET BET

VISION

PRODUCT ARCHITECTURE & AGILE DELIVERY

RELEASE

BUILDLEARN

RELEASE

BUILDLEARN

RELEASE

BUILDLEARN

CONTINUOUS DESIGN. CONTINUOUS DELIVERY

PORTFOLIO MANAGEMENT

$ ?

MEASURING VALUE

XTHE RESPONSIVE ENTERPRISE

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6 PRINCIPLES OF VALUE MANAGEMENT

•  Outcome based strategy

•  Value prioritization

•  Lightweight planning & governance

•  An adaptive, learning culture

•  Autonomous teams

•  Cross-functional & collaborative decision making

PRODUCT ARCHITECTURE & AGILE DELIVERY

RELEASE

BUILDLEARN

RELEASE

BUILDLEARN

RELEASE

BUILDLEARN

CONTINUOUS DESIGN. CONTINUOUS DELIVERY

PORTFOLIO MANAGEMENT

EXECUTIVE VISION & STRATEGY

GOAL GOAL GOAL

BET BET

VISION

$ ?

MEASURING VALUE

X

TheResponsiveEnterprise

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STORY & EXAMPLES

Applications of Value Management

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STORY #1

Outcome based strategy

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ALIGNMENT?

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A tale of two trucks.

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COMMUNICATING STRATEGY

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Vision Goal Bet Initiative

What will we become?

How might we achieve this

Vision?

How might we understand

more about a Goal?

What actions are we taking

to further learn about or

deliver on this Bet?

We will be the highest value

wholesale distributor

Grow presence for

small business

customers

Expand self service options

for pop-up restaurants

Develop a handheld ordering solution

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Decide on funding levels for goals

OUTCOMES THAT MATTER

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Patient health or lives saved over

cost containment Expanding customer’s financial

options over number of

credit cards opened

Profit per user over

schedule gate met

Market share acquired over number of leads generated

LEAN VALUE TREE

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GO!

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STORY #2

Deciding better

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YOU AND YOUR PMO

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STOP FOCUSING ON CONTROL

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START ENABLING CREATIVITY

DO ONE THING AT A TIME

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LEARN FASTER & STEER BETTER

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Build, Measure,

Learn

Ideate, Measure,

Learn

DECISION MAKING WILL CHANGE

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STORY #3

Delivering value: people, culture and people

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In the old days….

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Build a new retirement

income product

GOAL

FROM

Help customers transition to retirement

TO

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VISIONING RESEARCH MVP DEFINITIONIDEATION EXPERIMENTATION

FEEDBACK

BUILD - MEASURE - LEARN

PIVOTChange direction

Double down

Abandon x

Our Ideation and Delivery Approach

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42

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PIVOTChange direction

Double down

Abandon x

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Help customers transition to retirement

GOAL

FROM

Support boomers through their

retirement journey

TO

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How might we measure the success of adopting a

value driven approach?

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6 PRINCIPLES OF VALUE MANAGEMENT

•  Outcome based strategy

•  Value based prioritization

•  Lightweight planning & governance

•  An adaptive, learning culture

•  Autonomous teams

•  Cross-functional & collaborative decision making

PRODUCT ARCHITECTURE & AGILE DELIVERY

RELEASE

BUILDLEARN

RELEASE

BUILDLEARN

RELEASE

BUILDLEARN

CONTINUOUS DESIGN. CONTINUOUS DELIVERY

PORTFOLIO MANAGEMENT

EXECUTIVE VISION & STRATEGY

GOAL GOAL GOAL

BET BET

VISION

$ ?

MEASURING VALUE

X

TheResponsiveEnterprise

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VALUE DRIVEN MANAGEMENT What We’ve Learned

Getting Started

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What we’ve learned.

Executives must change (it’s not just about the people doing the work!)

Right people, right roles

Products, not projects

Tech as enabler vs Tech at core

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DECIDING WHERE

TO START

Think big, start small, move fast

•  Thin slice approach

•  Identify a reason to change

•  Build small, cross-functional teams

•  ‘Test and learn’ approach

•  Align work to value

•  Visualize existing investments - is everything aligned to high value goals?

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BUILDING A RESPONSIVE ENTERPRISE

CULTURE

APPROACH TO

SOLUTIONS

INVESTMENT RISK

BUSINESS VIEW OF IT

IDEA TO REALIZATION CYCLE TIME

Responsiveness over

efficiency

Weeks, not months or years

Adaptive delivery,incremental learning

over Pre-defined solutions,

fixed plans.

Empowered teams,owning outcomes

over Command and control,

order taking.Incremental,

Intentionally balanced investment

over Large, upfront investments,

‘wait and see’ approach

Partnership, rapid delivery of value

over Service provider,

delivering features

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THE LEAN PRODUCT GUIDE

A practitioner’s guide to building viable products customers love.

Available on Leanpub

Free download for a limited time: http://leanproductguide.com/

4000 technologists with 34 offices in 14 countries

THANK YOU

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For any questions, please contact - Linda Luu (linda.luu@thoughtworks.com)

Victoria Hall (victoria.hall@thoughtworks.com)