Value Driven Management - Building an Anti-fragile organization

Victoria Hall & Linda Luu

VALUE DRIVEN MANAGEMENTBuilding 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 EvolutionTech

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 MANAGEMENTPRINCIPLES

STORIESGETTING STARTED

Q&A

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VALUE DRIVEN MANAGEMENTBuilding a responsive

enterprise through Portfolio Management

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CAPABILITY IS DETERMINED BY

CULTURE

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CROSSING THE CHASM

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*Circa 1952

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WATER - SCRUM - FALL

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

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“The last mile”

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THE 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

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STORY & EXAMPLESApplications of Value Management

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STORY #1Outcome 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 #2Deciding 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 #3Delivering 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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Our Ideation and Delivery Approach

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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

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VALUE DRIVEN MANAGEMENT

What We’ve LearnedGetting 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

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THE LEAN PRODUCT GUIDEA 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)