Agile Por*olio Management at NYSE
Presented by: Gabino Roche
Agile 2012 – Dallas, TX August 15, 2012
• Demonstrate cost and value
• Manage capacity and opportunity cost
• Perform agile por*olio management without the jargon
Core Message
Large Enterprise Por*olio Management
• The Opportunity
• Challenges
• First Things – The Basic Mechanics
• Managing a Por*olio by Opportunity Costs
• InsOtuOng Agile Por*olio Governance
Agenda
• LinkedIn: www.linkedin.com/in/GabinoRoche
• TwiVer: grochejr
• JP Morgan Chase Email: [email protected] • Maag Studios (Mobile App Development Company):
• Website: www.MaagStudios.com • Email: [email protected] • TwiVer: MaagStudios • Facebook: www.facebook.com/MaagStudios
Gabino Roche
Contact Info:
The Opportunity amid the Financial Crisis
• Cash Equi@es • Futures/Op@ons • Market Data • Bonds • NYSE Technologies
– New division formed in 2008
– Acquisi@ons: • Wombat • AEMS • TransacNools • NYFIX
NYSE Euronext
Lines of business:
• What are the organiza@on’s strategic priori@es?
• Is there a roadmap?
• What ini@a@ves/products/projects to pursue?
• What is the ROI or perceived value gained?
Discovering the Landscape
Revenue is the Priority
• Difficult to keep strategic focus
• Doubts of job security consistently lingered
• Projects were stopped in the middle or even before they really got started
• In beginning, technology reported to the business
Frequent Changes in Leadership
Changing DirecOons too o\en
Fiefdom Challenge
• Difficult to leverage synergies between departments
• Redundancies on efforts
• Wasted budget and @me
• Poor management of opportunity costs
Are you one company, or are you fighOng a turf war?
Real Assets vs. Fungible Resources
View Your People as Assets or Cogs in a wheel?
• Retain talent or lose trade secrets to compe@tors
• Ramp @me to replace pivotal engineers is enormous
• Profitability of a product doesn’t determine the value of a resource
Sell! Sell! Sell! Sell Vaporware?!
What are we promising our clients?
• Pressured sales teams would commit to things without checking to see if they were available or feasible
• BeNer understanding of product/service offerings was needed
• Cohesive product ownership between business & technology
First Things – The Basic Mechanics
Determining Team Capacity & Quick EsOmaOon
Story/Feature
Feature 1.2
Feature 1.3
Feature 2.1
Feature 2.2
Feature 2.3
Feature 3.1
Feature 3.2
Feature 3.3
Biz Value
5
5
3
5
1
5
3
3
Determining Business Value
• 5 – Highest Business Value
• 3 – Medium Business Value
• 1 – Low Business Value
Total Business Value = 30 Story/Feature
Feature 1.2
Feature 1.3
Feature 2.1
Feature 2.2
Feature 2.3
Feature 3.1
Feature 3.2
Feature 3.3
Biz Value
5
5
3
5
1
5
3
3
Determining Business Value
Total Business Value = 30 Story/Feature
Feature 1.2
Feature 1.3
Feature 2.1
Feature 2.2
Feature 2.3
Feature 3.1
Feature 3.2
Feature 3.3
Biz Value
5
5
3
5
1
5
3
3
Business Value Points Delivered to date = 18
Determining Business Value
Total Business Value = 30 Story/Feature
Feature 1.2
Feature 1.3
Feature 2.1
Feature 2.2
Feature 2.3
Feature 3.1
Feature 3.2
Feature 3.3
Biz Value
5
5
3
5
1
5
3
3
Business Value Points Delivered to date = 18
Percent of Business Value Delivered (18/30)= 60%
Determining Business Value
Total Business Value = 30 Story/Feature
Feature 1.2
Feature 1.3
Feature 2.1
Feature 2.2
Feature 2.3
Feature 3.1
Feature 3.2
Feature 3.3
Biz Value
5
5
3
5
1
5
3
3
Business Value Points Delivered to date = 24
Percent of Business Value Delivered (18/30)= 80%
From experience once projects reach 80% of value delivered, serious discussions can be had about whether to con@nue or not
Rule of Thumb
• Assume resources cost a $100 per hour for a 40 hour work week ($8,000 per resource per 2-‐week itera@on).
• This team is comprised of 9 resources (1 PO, 1 SM, 1 BA, 4 DV, 2 QA). – Count all roles – both employee and consultants – directly involved in
delivering the project
• Team cost is $72,000 per itera@on.
• The team produces a 3-‐month moving average velocity of 50 story-‐points per itera@on.
• Average Cost Per Point = $1,440 or $4,320 per 3-‐point feature.
Determining Cost Per Feature
EsOmate
8
5
3
5
1
2
5
1
• Total the story-‐points in the Backlog
• Use the team’s steady-‐state velocity
• Story sizes are arbitrary but are specific to a team and a project
• For more accurate results, bring the work to the team and keep the team stable
Story/Feature
Feature 1.2
Feature 1.3
Feature 2.1
Feature 2.2
Feature 2.3
Feature 3.1
Feature 3.2
Feature 3.3
Cost
$4,000
$2,500
$1,500
$2,500
$500
$1,000
$2,500
$500
Per-‐Project and Per-‐Feature Cos@ng
Managing Capacity & Effort
Project A
Project B
Project C
Project D
Project E
Queries/Support 1
Queries/Support 2
Performance
Total Effort
Using Burndowns for Delivery AND Cost
Project OM
Using Burndowns for Delivery AND Cost
Project OM
• Network and iden@fy the players, the real stakeholders
• Establish ad-‐hoc, but regularly mee@ngs with clearly defined objec@ves
• Demonstrate the value & results of these mee@ngs
Network & Avoid the Jargon
Informally InsOtute the Process
• Expected Development Costs • Profit Margin • Client Desired Delivery Date • Overall Effort • IT’s Proposed Schedule Start • Quarter for which the sale will close
The Business Case
Case Type 1:
• Rela@ve Risk • Strategic Importance • Iden@fica@on of “Lighthouse” customers • The likelihood of demand
Case Type 2:
• Product managers (owners) know their space
• A team of product managers builds strategic cohesiveness
• Avoid redundancies & maximizing opportuni@es
• BeNer focus on strategies
The Product Management Team
Leveraging Synergies
Ideal Agile Portolio Governance
Priori@ze Project Pipeline by Value
Commit, Kill, Or Transform
Transform project (i.e. cut scope or change focus)
Project is taken off list or placed at the boNom
Fund the project &
get out of the way
Tran
sform
Kill
Commit
*Reference: Diagram taken from Johanna Rothman’s Manage Your Project Portolio
Large Enterprise Agile Portolio Governance Concept
Idea
IniOaOon
Scope
Planning
Program Setup
ExecuOon & Delivery
Delivering the Benefits
Closure
Evaluate and Close
Prog
ram
Tea
m
Bus
ines
s PM
O
Stak
ehol
ders
Monthly Business Case
Program Business Case
Program ABC Showcase Pack
Program
Governance Pack
Final Program
Business Case
Monthly Program Status Pack
Program
Closure Pack
Program
Plan & Schedule
Program Charter
Monthly Business Case Metrics
Monthly PDM Status Pack
Monthly Program Delivery
Meeting (PDM)
Monthly EC Meeting
(BC Metrics)
Monthly Financials
Internal Management Repor@ng Site
Stakeholder ABC
Showcase
Stakeholder PIR Closure Meeting
Executive Funding Meeting
Program Go No/Go
Program Go No/Go
Closure Go No/Go Monthly
Program Steering Committee
Deliverables
Gov M
eetings
PMO Validates & Posts Program
Documents
PMO Validates & Posts Program
Documents
PMO Validates & Posts Program
Documents
PMO Validates & Posts Program
Documents
Page 27
Governance & Funding
Confirmation Meeting
Program Go No/Go
Activities
• Does the project meet the organiza@on’s overall strategy?
• What’s been accomplished since the last review?
• Where is the project in terms of delivery and value?
• What impediments are slowing each team and their associated cost?
Portolio Review & Decisions
• Demonstrate cost and value
• Manage capacity and opportunity cost
• Perform agile por*olio management without the jargon
In Summary
Takeaways:
• LinkedIn: www.linkedin.com/in/GabinoRoche
• TwiVer: grochejr
• JP Morgan Chase Email: [email protected] • Maag Studios (Mobile App Development Company):
• Website: www.MaagStudios.com • Email: [email protected] • TwiVer: MaagStudios • Facebook: www.facebook.com/MaagStudios
Gabino Roche
Contact Info:
Appendix
• Kenny Rubin: Essen@al Scrum
• Johanna Rothman: Manage Your Project Portolio
Recommended Reading
• What is each team’s velocity (current and historical average)?
• What is each team’s capacity for work?
• What is the amount of work in progress for each team?
• What impediments are slowing each team down and their costs?
• How much value has been achieved for each team’s current projects?
• What is the total cost to date of each team’s current projects?
• What is the future costs for each team’s current projects?
Demonstra@ng Cost and Value
Can you answer the following for each of your teams?
• How does this project fit within the overall strategy of the organiza@on?
• What is the an@cipated revenue/cost savings?
• Are there any technologies that can be reused?
• What is the priority and value of this project amongst others?
• Is there a project team available, with capacity and exper@se?
Reviewing a new project proposal
When the business presents a new project, all stakeholders need to ask: