from the vision to the working software and back

An approach to align portfolio, programs and teams in the Agile way.

From the Vision to the WorkingSoftware and backAccomplishment of the Strategic Goals

Johnny Ordóñez

In a company where I had the

opportunity to visit, members from

Executive staff told me about three

main needs that they have and want

achieve urgently...

Now, We have three main needs

•Align the entire company effort to the

accomplishment of the strategic goals.

•Predict (at high level) what we can deliver for

planned releases until 2014.

•Measure the progress on organizational strategic

goals.

Okay, my proposal...

Time

Be better

Today,

We’re here

Time

Be better

Today,

We’re here

And We want

be here

Time

Be better

Today,

We’re here

And We want

be here

Vision

Time

Be better

Today,

We’re here

And We want

be here

Vision Strategy

Time

Be better

Today,

We’re here

And We want

be here

Vision Strategy

Strategic GoalsRevenues

Positioning

Operative efficiency

Competitiveness

Execution

Time

Be better

Today,

We’re here

And We want

be here

Vision Strategy


Positioning


Competitiveness

Portfolio

Program

Teams

Time

Be better

Today,

We’re here

And We want

be here

Vision Strategy


Positioning


Competitiveness

Portfolio

Program

Teams

Guide Inform

2 3

Execution1

1. Strategy

Strategy – Customer centric vs Product centric

New

Products

Present

Products

Present

Customers

New

Customers

Create(Disruptive)

Manage(Maintain)

Adapt(Evolutionary)

Extend(Evolutionary)

Strategy – Customer centric vs Product centric

New

Products

Present

Products

Present

Customers

New

Customers

Create(Disruptive)

Manage(Maintain)

Adapt(Evolutionary)

Extend(Evolutionary)

Product N

Product1

Product2 Product

3

Product4

Product5

Product6

Strategy and Execution

Strategy

Execution

Vision

Structure

Visibility

Why, What and How

Portfolio

Program

Teams

What?

How?

Why?

2. Guide

1. Define strategic goals

• Increase the Value Share

• Increase revenues in a sustainable way

• Modernize product portfolio

• Keep attending our customers

• Attend to new customers

• Be perceived as a great place to work

• New configurable, customizable and

adaptable product

2. Prioritize the strategic goals

Business Value

New Value for the

Organization

Customer Value

Value for our Customers

Hi

Low

Low Hi

3. Order the strategic goals by priority

Business Value

New Value for the

Organization

Customer Value

Value for our Customers

Hi

Low

Low Hi

GOAL 1GOAL 4

GOAL 2

GOAL 5GOAL 8

GOAL 9 GOAL 7

GOAL 6

GOAL 3

3. Order the strategic goals by priority

GOAL 1 GOAL 4GOAL 2 GOAL 3

+ -Priority

4. Create an Epic with an explicit anchor to a strategic goal

GOAL 1

GOAL 4

GOAL 2

GOAL 3

E1

E4

E5

E6

E1 E2E3 E4


Approved & Prioritized Epics

Analysis Funnel

Light Business Case

Finance return

Potential ROI

Budget/Costs

E2

E3

5. Decompose into features


E1 E2E3 E4 E5

F1 F2

F3’’’

F1’’ F2’’

F3

F1’ F2’

F3’

F1’’’ F2’’’

6. Estimate new features

Product Team gives Business Value

estimates.

Committee / Dev Team gives Effort

estimates.

6.1. Estimate new features – Business Value

Product Team7 +/- 2 people

Product Managers

Product Owners

Business/Epic Owners (optional)

PM

PO

PO PO

PM

Using Business Value pointsPlanning Poker

Business Value Game

Value Sliders

Fibonacci sequence

3 pts

5 pts

8 pts

13 pts

20 pts

40 pts

100 pts

6.1. Estimate new features – Cost of Delay

Product Team7 +/- 2 people

Product Managers

Product Owners

Business/Epic Owners (optional)

Using Cost of Delay pointsFibonacci sequence by each variable

Time CriticalityUser | Business

ValueCost of Delay

Risk Reduction |

Opportunity

Enablement Value= + +

6.1. Estimate new features – Business Value or Cost of Delay


E1 E2E3 E4 E5

F1 F2

F3’’’

F1’’ F2’’

F3

F1’ F2’

F3’

F1’’’ F2’’’

18

24 18

35

25 48 23 10

34

2131

6. Estimate new features – Effort

Estimating Committee7 +/- 2 people

Teams representatives (until 5)

Architects representatives

Operations representatives

Team

Team

Team Architect

DevOps

Using T-Shirt SizesMiddle abstraction level

Planning Poker

Story Points equivalence

(adjustable in time)

XS => 5 pts

S => 8 pts

M => 13 pts

L => 30 pts

XL => 40 pts

XXL => 100 pts

6. Estimate new features – Effort


E1 E2E3 E4 E5

F1 F2

F3’’’

F1’’ F2’’

F3

F1’ F2’

F3’

F1’’’ F2’’’10

50

25 18

35

25 48 23 10

34

21

18

24 18

35

25 48 23 10

34

2131

7. Prioritize features – Maximize the ROI

ROI

How many value I will get?

How much I pay to create this

value?

Businesses move and take decisions based on ROI.


ROI

∑ Business Value points

∑ Effort Points

Businesses move and take decisions based on ROI.

7,0%

13,0%

16,0%

19,0%

45,0%Always

Often

Regularly

Rarely

Never


Chaos Report 2011, Standish Group

80% of the business value is located

at 20% of the features (Pareto).

Find the 20%.

Features used in a Typical Software System

20%Rarely /

Never used

Always /

Often used

64%


Business Value

Effort+-

+

-


Business Value

Effort+-

+

-

F1

F2 F3’’’

F1’’

F2’’

F3

F1’

F2’

F3’

F1’’’

F2’’’


Business Value

Effort+-

+

-

F1

F2 F3’’’

F1’’

F2’’

F3

F1’

F2’

F3’

F1’’’

F2’’’

1 2

3 4

7. Prioritize features – Qualitative valuation

8. Check dependencies across the program


E1 E2E3 E4 E5

F1 F2

F3’’’

F1’’ F2’’

F3

F1’ F2’

F3’

F1’’’ F2’’’10

50

25 18

35

25 48 23 10

34

21

18

24 18

35

25 48 23 10

34

2131

9. Reorganize the features


E1 E2E3 E4 E5

F1 F2

F3’’’

F1’’ F2’’

F3

F1’ F2’

F3’

F1’’’ F2’’’10

50

25 18

35

25 48 23 10

34

21

18

24 18

35

25 48 23 10

34

2131

+

-

Prio

rity

-Priority

10. Set the Release Plan by real capacity

What’s real velocity of our teams right now?

What’s the capacity of our organization?

How are evolving our teams?

Determine the organizational capacity doing a tracking of

the real and historical performance by each team. Real

velocity is equal to the number of story points delivered by

sprint; not calculated.

10.1 Determining the team real velocity

TEAM 1

SprintDelivered

Story Points

Sprint 1 8

Sprint 2 5

Sprint 3 3

Sprint 4 5

Sprint 5 6 0

1

2

3

4

5

6

7

8

9

Sprint 1 Sprint 2 Sprint 3 Sprint 4 Sprint 5

Delivered Story Points


TEAM 1

Average = 5 pts

SprintDelivered

Story Points

Sprint 1 8

Sprint 2 5

Sprint 3 3

Sprint 4 5

Sprint 5 6 0

1

2

3

4

5

6

7

8

9



Average = 5 pts


TEAM 1

SprintDelivered

Story Points

Sprint 1 8

Sprint 2 5

Sprint 3 3

Sprint 4 5

Sprint 5 6 0

1

2

3

4

5

6

7

8

9



Average = 5 pts

2 pts

2 pts

Average = 5 pts

Standard Deviation = 2 pts


TEAM 1

SprintDelivered

Story Points

Sprint 1 8

Sprint 2 5

Sprint 3 3

Sprint 4 5

Sprint 5 6 0

1

2

3

4

5

6

7

8

9



Average = 5 pts

2 pts

2 pts

Average = 5 pts


Best case = 7 pts

Expected case = 5 pts

Worst case = 3 pts

Best case = 7 pts

Worst case = 3 pts


TEAM 1

SprintDelivered

Story Points

Sprint 1 8

Sprint 2 5

Sprint 3 3

Sprint 4 5

Sprint 5 6

7 pts

Points

Average = 5 pts


Best case = 7 pts


Worst case = 3 pts

Time Fixed

Week 1 Week 2

5 pts

3 pts


TEAM 1

SprintDelivered

Story Points

Sprint 1 8

Sprint 2 5

Sprint 3 3

Sprint 4 5

Sprint 5 6

10 pts

Points

Average = 5 pts


Best case = 7 pts


Worst case = 3 pts

Scope Fixed

Week 1 Week 2 Week 2 +

X Days

Week 2

+ X + Y

days

7 pts


TEAM 1

SprintDelivered

Story Points

Sprint 1 8

Sprint 2 5

Sprint 3 3

Sprint 4 5

Sprint 5 6

Points

Average = 5 pts


Best case = 7 pts


Worst case = 3 pts

Velocity in the time

Sprint 1 Sprint 2 Sprint 3 Sprint 4

Private & Confidential53


TEAM 1

SprintDelivered

Story Points

Sprint 1 8

Sprint 2 5

Sprint 3 3

Sprint 4 5

Sprint 5 6

Average = 5 pts


Best case = 7 pts


Worst case = 3 pts

Real Velocity = 5 pts (Expected)

Select a velocity depending on scenario (perception)Scenarios: Optimist, Expected or Pessimist


TEAM 1

SprintDelivered

Story Points

Sprint 1 8

Sprint 2 5

Sprint 3 3

Sprint 4 5

Sprint 5 6

Average = 5 pts


Best case = 7 pts


Worst case = 3 pts

Add a risk perspectiveDispersion or Risk Factor: Rotation, Vacations, Sick, Unplanned



Dispersion Factor = Size of Loss (points) * % Probability

= 2 pts * 30 % = 0,6 pts


TEAM 1

SprintDelivered

Story Points

Sprint 1 8

Sprint 2 5

Sprint 3 3

Sprint 4 5

Sprint 5 6

Average = 5 pts


Best case = 7 pts


Worst case = 3 pts

Add a risk perspectiveDispersion or Risk Factor: Rotation, Vacations, Sick, Unplanned



Dispersion Factor = Size of Loss (points) * % Probability

= 2 pts * 30 % = 0,6 pts

Velocity to

projections = Real Velocity – Dispersion Factor

= 5 – 0.6 pts = 4.4 => 4 pts

Velocity to

projections = 4 pts

10.2 Determining real velocity for all teams

COMPANY CAPACITY

TeamVelocity by

SprintVelocity by

Month

Velocity byRelease

(4 months)

Team 1 4 8 32

Team 2 5 10 40

Team 3 2 4 16

Team 4 2 4 16

Team N 4 8 32

Organizational Capacity* = 136 pts

by release


COMPANY CAPACITY

TeamVelocity by

SprintVelocity by

Month

Velocity byRelease

(4 months)

Team 1 4 8 32

Team 2 5 10 40

Team 3 2 4 16

Team 4 2 4 16

Team N 4 8 32

Organizational Capacity* = 136 pts

by release

*Organizational velocity is reviewed and assessed at the end of each sprint; this moves the

release line to adjust the new capacity.


The idea is create a Pull system that is

limited by our actual capacity

(Kanban) .

10.3 Put the release lines by capacity


E1 E2E3 E4 E5

F1 F2

F3’’’

F1’’ F2’’

F3

F1’ F2’

F3’

F1’’’ F2’’’10

50

25 18

35

25 48 23 10

34

21136 pts

136 pts

Dec 2014

Abr 2015

Dec 2015

299 Points

10.4 Move Features, fit them about capacity.


E1 E2E3 E4 E5

F1 F2

F3’’’

F1’’

F2’’

F3

F1’ F2’

F3’

F1’’’ F2’’’10

50

25 18

35

25 48

23

10

34

21136 pts

136 pts

Dec 2014

Abr 2015

Dec 2015

157 Points

10.4 Move Features, fit them about capacity.


E1 E2E3 E4 E5

F1 F2

F3’’’

F1’’

F2’’

F3

F1’

F2’F3’

F1’’’ F2’’’10

50

25 18

35 25

48

23

10

34

21136 pts

136 pts

Dec 2014

Abr 2015

Ago 2015

132 Points

3. Inform

Inform

Inform = Measuring + Visual ManagementValuable Metrics

Artifacts

PMO Reporting

Transparency

Information Radiator

Visual Tracking

Measuring

Focus on accomplishment of goals ,

predictability, technical excellence and

quality.

Composition of Goal-based metrics

GOAL 1


GOAL 1

E3

E4


GOAL 1

E3

E4

50%

50%


GOAL 1

E3

F4E4

F1

F2

F3

50%

50%

10

20

10

50


GOAL 1

E3

F4E4

F1

F2

F3

50%

50%

10

20

10

50

20%

10%

60%

90 pts

100%

10%


GOAL 1

E3

F4E4

F1

F2

F3

50%

50%

10

20

10

50

20%

20%

10%

60%

H1 H2 H35 2 3

10% 50% 30%

90 pts

100%


GOAL 1

E3

F4E4

F1

F2

F3

50%

50%

10

20

10

50

20%

20%

10%

60%

H1 H2 H35 2 3

10% 50% 30%

90 pts

100%

Done

How much the goal is completed?


GOAL 1

E3

F4E4

F1

F2

F3

50%

50%

10

20

10

50

20%

20%

10%

60%

H1 H2 H35 2 3

10% 50% 30%

90 pts

100%

Done

How much the goal is completed?

Goal completion = 50% * 10% * 50 % = 2,5 %

Epic completion = 50% * 10% = 5 %

Feature completion = 50% = 50 %

Story Feature Epic

Progress on Strategic Goals

0

1

2

3

4

5

6

7

8

G1

G2

G3

G4

G5

Strategic Goals completion

To Do

Done

Goals vs Epics

GOAL 1 E3

30% 2/4

E1

1/3

GOAL 2 E1’

45% 3/3

E2’

2/3

GOAL N E1’’

100% 4/4

E2’’

3/3

E3’

0/3

Goals vs Epics

GOAL 1 E3

30% 2/4

E1

1/3

GOAL 2 E1’

45% 3/3

E2’

2/3

GOAL N E1’’

100% 4/4

E2’’

3/3

E3’

0/3

+

-

Prio

rity

-Priority

Epics vs Features

E3

2/4

F1

3/310 points

100%

F2

2/220 points

100%

F3

0/310 points

0%

F4

4/450 points

0%

E1

4/4

F1’’

3/310 points

100%

F2’’

2/220 points

100%

E5

2/4

F1’’

3/310 points

100%

F2’’

2/220 points

100%

F3’’

0/310 points

0%

F4’’

4/450 points

0%

Epics vs Features

E3

2/4

F1

3/310 points

100%

F2

2/220 points

100%

F3

0/310 points

0%

F4

4/450 points

0%

E1

4/4

F1’’

3/310 points

100%

F2’’

2/220 points

100%

E5

2/4

F1’’

3/310 points

100%

F2’’

2/220 points

100%

F3’’

0/310 points

0%

F4’’

4/450 points

0%

+

-

Prio

rity

-Priority

Release Burndown Chart

Points


136 Points

Release BurnUp Chart

Scope

Story Points


Trend

Best Velocity

Worst Velocity

Cumulative

progress

Work by Team (Features by Team)

E1 E2E3 E4 E5

F1 F2

F3’’’

F2’’

F1’ F2’

F3’

10 25

18

35

25

23

34

TEAM 1

TEAM 2

25 Points

TEAM 3

77 Points

58 Points

Work by Team (Stories by Team)

F2 F3F1 F4

H1 H2

H3’’’

H2’’

H1’ H2’

H3’

10 25

18

35

25

23

34

TEAM 1

TEAM 2

25 Points

TEAM 3

77 Points

58 Points

Assessing Predictability

Private & Confidential85

Teams can plan,

coordinate and delivery

predictably enough to

make a release level

commitment.

Does the team deliver the

functionality it intended each

iteration?

Has the team established a

stable velocity?

Is working, tested,

remediated code being

delivered frequently?

Does the team have

everything expected to

perform the work each

iteration?

Does the team have the

confidence they will deliver

the functionality expected for

the release?

Story Ratio

Velocity

Variance

Cycle Time

Resource

Availability

Release

Confidence

Metrics for Agile Teams

METRIC SUCCESS CRITERIA TREND

Story Completion RatioThe goal is help teams become

predictable in their estimating.

> 90% Stories Committed / Delivered

80% - 90% Stories Committed / Delivered

< 80% Stories Committed / Delivered

Velocity VarianceThe goal is help teams become

stable in their velocity.

20% of Variance of last 3 sprints

40% of Variance of last 3 sprints

40%+ of Variance of last 3 sprints

Cycle Time / Ready to ReleaseThere should not be more than 4

weeks work of throughput active in

a team from Ready to Delivered.

< 2 weeks

2 weeks – 4 weeks

> 4 weeks

Metrics for Agile Teams (continuation)

METRIC SUCCESS CRITERIA TREND

Resource AvailabilityIs the team getting the resource

available that was planned?. We

need an indication when planned

resources aren’t available.

Resources are available as planned

2 off planned resource availability

3+ off planned resource availability

On time release confidenceTeams should be able to roughly

estimate and identity risks and

dependencies sufficiently that can

make and keep release

commitments.

Team is very confident

Team is challenge

Release can’t be delivered

QA Ratio / % Technical DebtAutomated Tests / Total Test or

Code Coverage or % Technical

Debt.

> 90% Automated Tests / Total Tests

80% - 90% Automated Tests / Total Tests

< 80% Automated Tests / Total Tests

Artifacts for measuring and tracking


E1 E2E3 E4 E5

F1 F2

F3’’’

F1’’

F2’’

F3

F1’

F2’F3’

F1’’’ F2’’’136 pts

136 pts

Dec 2014

Abr 2015

Dec 2015

132 Points

Artifacts for measuring and tracking

Artifacts for planning and tracking

Portfolio Backlog Implementing Done Accepted

Analysis Planned Implementation Done Deployed

Story Backlog Task Backlog In Progress Task Done Story Done

E3

F1

H1

F2F3

H2

H3 H4

Po

rtfo

lioP

rog

ram

Team

s

Artifacts for planning and tracking

Portfolio Backlog Implementing Done Accepted

Analysis Planned Implementation Done Deployed

Story Backlog Task Backlog In Progress Task Done Story Done

E3

F1

H1

F2F3

H2

H3 H4

Po

rtfo

lioP

rog

ram

Team

s

KANBAN

SCRUM

KANBAN

Kaizen Thinking – Continuous Improvement

Guide

Prioritize

ExecuteMeasure

Learn

Kaizen Thinking – Continuous Improvement

Guide

Prioritize

ExecuteMeasure

Learn

Plan

Do

Check

Act

Now, We have three main needs and three tools

•Align the entire company effort to the

accomplishment of the strategic goals: Goal-based priorization.

•Predict (at high level) what we can deliver for

planned releases until 2014: Release Planning based on current capacity.

•Measure the progress on organizational strategic

goals: Valuable metrics and artifacts.

"A good plan violently executed now

is better than a perfect plan executed

next week."

- George S. Patton

Teaching an Elephant to Dance or Scaling Agile to Large Project Teams

References

Teaching an Elephant to Dance or Scaling Agile to Large Project Teams

http://www.slideshare.net/VersionOne/teaching-an-elephant-to-dance

Agile Features Prioritization

http://www.targetprocess.com/blog/2005/10/agile-features-prioritization.html

WSJF

http://scaledagileframework.com/wsjf/

http://www.slideshare.net/VersionOne/teaching-an-elephant-to-dance

http://www.targetprocess.com/blog/2005/10/agile-features-prioritization.html

http://scaledagileframework.com/wsjf/

Thank you

@JohnnyOrdonezAgile Consultant & Trainer