agile42 | The Agile Coaching Company www.agile42.com | All rights reserved. Copyright © 2007 - 2015
Better Portfolio Prioritization with the Lean Canvas
Brad Swanson, CSC, CST® [email protected] @bradswanson
Mike Caspar, CSP, Senior Agile Coach [email protected] @mikecaspar
http://www.agile42.com/en/blog/
agile42 | The Agile Coaching Company www.agile42.com | All rights reserved. Copyright © 2007 - 2015.
agile42 The Agile Coaching Company. agile42 is a market leader in providing agile transformation services to companies looking to adopt a more efficient and adaptive way of working.By continually refining our approach, agile42 has developed a unique and proven framework for supporting organizations in realizing the benefits of a agile & lean practices. We provide assessment, strategic consulting, training, and coaching to get you results. Our customers regularly confirm that they achieve:• Accelerated revenue generation
• Faster Return-on-Investment
• Improved technical quality
• Rapid delivery to market
• Increased team motivation
agile42 | The Agile Coaching Company www.agile42.com | All rights reserved. Copyright © 2007 - 2015.
Photo: Rory Mizen
Highest Paid Person’s Opinion
agile42 | The Agile Coaching Company www.agile42.com | All rights reserved. Copyright © 2007 - 2015.
1. Problem
top 3 problems
Exis2ng alterna2ves
4. Solu2on top 3 features
8. Key metrics e.g. AARRR
3. Unique value
proposi2on Clear compelling message. Why makes you different?
2. Customer segments
Target customers
Early adopters?
9. Unfair advantage Not easily copied
or bought
5. Channels Path to customers
7. Cost Structure Customer acquisi2on, distribu2on, people,
etc.
6. Revenue streams Revenue model, life 2me value, revenue,
gross margin
Lean Canvas: Ash Maurya
Lean Canvas, from Ash Maurya: Running Lean. Licensed under Crea2ve Commons-‐AVribu2on-‐Share Alike 3.0
Product Market
agile42 | The Agile Coaching Company www.agile42.com | All rights reserved. Copyright © 2007 - 2015.
Problem Top 3 problems
Exis2ng /alterna2ve solu2ons
Customer segments Early adopters?
Success metrics
Leading and lagging indicators
Possible solu2ons Key features & benefits for customers & business
Business readiness What is needed to deploy and support the solu2on?
(Staff, budget, training, systems, support, opera2ons dependencies on projects/
vendors)
Channels Path to
customers
Costs People, training, capital, marke2ng, etc. + Objec2ve jus2fica2on
Business value 1. User & business value 2. Cost of Delay (urgency) 3. risk reduc2on/opportunity enablement + Objec2ve jus2fica2on
Lean Project Canvas
ProductMarket
Cost of delay
time
linear
dela
y co
st
1,2,3,5,8,13,21 1,2,3,5,8,13,21
<Title / headline>
agile42 | The Agile Coaching Company www.agile42.com | All rights reserved. Copyright © 2007 - 2015.
time
linear
dela
y co
st
time
must do now
dela
y co
st
time
logarithmic
dela
y co
st
time
intangible
dela
y co
st
Cost of Delay is the cost we incur by delaying delivery of a product, due to lost revenue or unrealized cost savings.
Cost of Delay profiles
time
fixed date
dela
y co
st
Kenny Rubin: Essential Scrum
agile42 | The Agile Coaching Company www.agile42.com | All rights reserved. Copyright © 2007 - 2015.
42 Investment Group: building a luxury resort hotel
Goals: • Luxury
amenities & activities
• Destination hotel
• Repeat customers
• Profitable in 1st year
https://www.flickr.com/photos/28685147@N04/
agile42 | The Agile Coaching Company www.agile42.com | All rights reserved. Copyright © 2007 - 2015.
Portfolio of Projects / Features
• 18 hole golf course• Jacuzzi tubs in guest rooms• Valet Parking• Free internet access • On-site tailor shop• Child care centre• Pet spa• Mini golf
• Bungee jumping tower • Full service spa• Healing mud baths• Swim with dolphins• Concierge service• Live music nightly• Amusement park & roller
coaster• Themed guest rooms
agile42 | The Agile Coaching Company www.agile42.com | All rights reserved. Copyright © 2007 - 2015.
Activity 1: Build a Lean Project Canvas
• Choose 2 projects from this list at each table
• Write a lean canvas for each, working in groups of 3-4 • Problem/opportunity & existing alternatives • customer segments • possible solution • business value • cost of delay profile
agile42 | The Agile Coaching Company www.agile42.com | All rights reserved. Copyright © 2007 - 2015.
Estimate the relative value of projects in a portfolio
100 200 500 800 1200 2000 3000
agile42 | The Agile Coaching Company www.agile42.com | All rights reserved. Copyright © 2007 - 2015.
Activity 2: Business Value Game•Play the Business Value Game: your 2 Canvases + 4 samples •Arrange blue cards from smallest to largest value •Arrange canvases as shown in the sample here •Write the business value number on each Canvas
100 200 800 1200 2000 3000
1200
1200 2000200
200
agile42 | The Agile Coaching Company www.agile42.com | All rights reserved. Copyright © 2007 - 2015.
ROI calculation & project sequencing
Project Relative Value Relative Effort (cost) Relative R.O.I. Sequence?
A 1200 3 400
B 800 3 267
C 2000 8 250
D 3000 40 75
agile42 | The Agile Coaching Company www.agile42.com | All rights reserved. Copyright © 2007 - 2015.
Activity 3: Determine how to sequence projects
• Write the Cost number on each canvas (handout) • Calculate Relative ROI for each canvas. Write it on
each canvas • ROI = Value / Cost
• Sequence projects based on ROI (high to low) • Consider Cost of Delay profile: does this change
the sequence?
agile42 | The Agile Coaching Company www.agile42.com | All rights reserved. Copyright © 2007 - 2015.
ROI calculation & project sequencing
Project Relative Value
Relative Effort (cost)
Relative R.O.I. CoD Sequence?
A 1200 3 400
B 800 3 267
C 2000 8 250
D 3000 40 75
agile42 | The Agile Coaching Company www.agile42.com | All rights reserved. Copyright © 2007 - 2015.
Finally
1agile42 2Innovation Games® 3Dean Leffingwell: Agile Software Requirements
Whatever works best for your situation!
Not….
agile42 | The Agile Coaching Company www.agile42.com | All rights reserved. Copyright © 2007 - 2015.
Photo: Rory Mizen
Highest Paid Person’s Opinion
No
HiPPOs
allowed !
http://www.agile42.com/en/blog/2015/04/30/scrum-gathering-phoenix-2015-sessions/
Brad Swanson, CSC, Senior Agile Coach [email protected] @bradswanson
Mike Caspar, CSP, Senior Agile Coach [email protected] @mikecaspar
agile42 | The Agile Coaching Company www.agile42.com | All rights reserved. Copyright © 2007 - 2012.
Reference Section: The process steps for sequencing projects
agile42 | The Agile Coaching Company www.agile42.com | All rights reserved. Copyright © 2007 - 2015.
Process for Sequencing Projects
1. Stakeholders and Product Owners prepare canvases. Optional: limit number per stakeholder
2. Review & validate canvases for completeness & understanding - ahead of time
3. Select appropriate group of voting stakeholders and a neutral facilitator
4. Brief “sales pitch” for each project, based on the canvas
agile42 | The Agile Coaching Company www.agile42.com | All rights reserved. Copyright © 2007 - 2015.
Process for Sequencing Projects (2)
6. Choose a baseline project/canvas, assign it a mid-range point value. Can shift up/down later if necessary.
7. Business Value GameTM,1; assign the relative value of each project, without considering cost/effort
1agile42 2Innovation Games®
Alternative to Biz Value Game: Buy a Feature / Prune the Product Tree 2
agile42 | The Agile Coaching Company www.agile42.com | All rights reserved. Copyright © 2007 - 2015.
Process for Sequencing Projects (3)
8. Delivery teams estimate cost/effort.
9. Calculate relative ROI: value / cost
10.Sequence projects, and/or allocate investments:
1. ROI
2. cost of delay
3. people and/or resource constraints