5 steps to effective resource planning with forrester
TRANSCRIPT
5 Steps To Effective Resource PlanningMargo Visitacion, Vice President/Principal Analyst
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Housekeeping Items
› 40 minutes of presentation
› 15 minutes of Q&A
› All lines are on mute
› Enter questions into chat box
› Event is being recorded
› Slides will be shared post presentation
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Today’s Presenters› Featured Speaker: Margo Visitacion› Vice President/Principal Analyst,
Forrester Research› 25+ years of experience in IT,
developing and implementing QA, and PMOs
› Moderator: Tushar Patel › SVP of Marketing, Innotas› Previously at and Mocana Corp and
National Semiconductor
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Agenda
› No doubt about it, resource management is tough
› Embrace the new reality› Five best practices› Recommendations
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Resource management: today’s biggest challenge
Level 1 - ad hoc
Level 2
Level 3 - Some definition, inconsistent use
Level 4
Level 5 - Defined, widely utilized and optimized
11%
20%
37%
23%
9%
15%
9%
30%
29%
17%
On a scale of 1 – 5, rate the current state of your PMO
Monitoring portfolio performance Forecasting resource capacity
Source: Forrester Research – 2015 State of EA, SP and PMO Global Online Survey
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Old school reality
$ $ $ $ $
$ $ $ $ $
$ $ $ $ $
$ $ $ $ $
R&D Mfg. Finance
Annual Initiatives
Bottom-up list of wishes / projects
Pass to IT for “tentative estimates”
Exec Mgt:Mission statement
$$$$$
$$$$$
$$$$$
$$$$$
$$$$$
$$$$$
$$$$$
$$$$$
Exec mgt.chokes on the
total cost
Budget wars reach a
“negotiated settlement”
Fallacy: precise demand forecasts, fixed demand, rigorous planning, predictable work patterns
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Source: Forrester’s BT Apps and Collaboration Survey 2014
New school reality
• 26% telecommute at least once a week• 35% work at a client site at least a few
times a month
Highly autonomous
workforce
• 70% collaborate directly with customers, clients or patients
• 14% collaborate with co-workers in other countries
Event driven with
diminished predictability
• Information workers leverage an average of 8 applications per day to perform their jobMulti-tasking
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New school reality staffing issues
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Finding and filling resource gaps makes forecasting harder
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Agenda
› No doubt about it, resource management is tough
› Embrace the new reality› Five best practices› Recommendations
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People work differently today100% planned
allocation
50% actualavailability
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Approaches are different, tooTraditional project and
task planning
Plan
Analyze
Design
Code
Test
Implement
Cer
tain
ty
Low
High
Churn/change = $$€££
Agile, iterative and hybrid lifecycles
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Cross-functional organizations are common in the age of the customer
Source: April 10, 2015, “Improve Customers’ Experience By Improving Employees’ Effectiveness” Forrester report
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It’s time to stop thinking in terms of utilization
Throughput!
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Agenda
› No doubt about it, resource management is tough
› Embrace the new reality› Five best practices› Recommendations
© 2015 Forrester Research, Inc. Reproduction Prohibited 17
Before you start…..›Get commitment to measure throughput, not utilization
› Identify ideal outcomes – better managing skills? Smarter sourcing?
›Assess current state – know your gaps and your bottlenecks
›Pilot with a few teams first
›Measure!!!!
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Base: 600 IT professionals with app development responsibilities from US, Canada, UK, France, & GermanySource: A commissioned study conducted by Forrester Consulting on behalf of IBM, May 2014
5 best practices to improve resource management 1. Strive for throughput, not utilization
2. Deliver in Small Batches
3. Dedicate Teams
4. Minimize Hand-offs, Maximize Flow
5. Eliminate Overhead
+ 1 more: Practice Transparency
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Minimum Viable Product (MVP) = identify needs and commit
Deliver MVP Quickly – Improve Based On Feedback
… …
R1 R2 R3 R4 R5 R6 R7
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Smaller batches of work = faster speed, more feedback, less failure
much better than
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Old thinking: organize in “silos”Li
ne o
f Bus
ines
s
Ope
ratio
ns
Busin
ess A
naly
sts
Deve
lope
rs
Qua
lity
Assu
ranc
e
Ente
rpris
eAr
chite
ctur
e
CIO
Cust
omer
Expe
rienc
e
CMO COO
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Siloed roles increase hand-offs
Project A
Project B
Project C
Old Goal: Maximize Utilization
New Goal: Maximize Throughput
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Dedicated teams are cross-functional, organized by product
Agile development team
Architecture OpsBusinessanalysis
PM DevDevBA Devlead
Dev Dev Tester Tester
Steady - state
Shared resources
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Identify value streams to reduce waste/eliminate bottlenecks
“Application Delivery In The Modern Age”, February 12, 2014
Idea Understand Needs Develop Test Deploy Customer
Value
1 day 3 days 5 days 5 days 3 days
10 days7 days 4 days 9 days
Total = 47 daysLead time ladder
Process timeLead time
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Idea proposed
Understand Needs & Invent
Solutions
Develop, Commit & Build
Functional Testing
Deploy Solution
Customer Value
Load, Performance, Security, …
Testing
UAT/Exploratory
Testing
ReleaseDecision
Typical bottlenecks
Too Much WIP
Lack of access to Dev & Test Environments
• Lack of Effective Build/Integration Automation
• Manual Testing• Design Complexity
Lack of effective API-driven test automation
Lack of effective effective release candidate quality information
Manual environment management and deployment
Lack of Effective Customer Insight
Ever-present bottlenecks: hand-offs and wait time
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Increase the scale, portfolio management controls complexity
Source: www.craiglarman.com
• Sequencing sprints• Release planning• Consistent cadence
for monitor/reporting
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Rules of thumb:• Keep resource pools as simple
as possible for greater flexibility in managing hybrid organizations• Organize by capabilities• Establish teams as units and
associate resources by tagging• Forecasting for non dedicated resources:
• Never forecast at 100% - take theirday job into account
• Capture ALL the work• Everything is on the backlog – strive
for just enough information to help you makea decision
• Measure for velocity
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But what about time tracking????
By milestone Tied to a deliverable
Per Agile sprint Features delivered
By activity Project managementRequirementsDesignCoding/unit testingTestingRelease managementDocumentationTraining
Tracking project time:
Make it simpleImportant to focus on ETC
% complete – cannot be a SWAG
Deliverable
Innotas © 2015
Resource Capacity & Demand Planning
Predictive Analytics & Planning
Dashboards & Reporting
Waterfall / Agile
ProjectsApps
Integration Platform
Existing Systems
Portfolio & PrioritizationStrategic Planning
Improved Execution
Innotas Overview
Innotas © 2015
True Enterprise Resource Management
Innotas © 2015
Predictive Portfolio Analysis™ (PPA)Portfolio Planning Recommends & schedules the highest value
portfolio based on resource constraints
Resource Planning Achieve peak usage of resources and ensure
highest value of work is being executed
Resource Forecasting & Gap Analysis Improve stakeholder relationships by
communicating more accurate forecasts & resourcing hiring needs
Re-Planning and Re-ForecastingIncrease business agility by adapting to changes
in market and business environment quickly
Innotas © 2015
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