Managing The Chaos Of Change

Managing The Chaos Of ChangeMargo Visitacion, Vice President/Principal Analyst

September 27, 2016

© 2016 Forrester Research, Inc. Reproduction Prohibited 2

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Agenda

› The speed of business can create chaos

› New business imperatives need new approaches

› Continuous PPM to manage the chaos of change


“It is not the strongest of the species that survives, not the most intelligent,

but the one most responsive to change.”

- Charles Darwin


6© 2016 Forrester Research, Inc. Reproduction Prohibited

Digital Empowers Customers And Creates Chaos For Business


Digital Disruption Has Industry Implications


Source: Forrester Research, Business Technographics Priorities and Journey Survey, 2016

Customer Experience Rises Toward The Top Of Business Priorities

Better leverage big data and analytics in business decision-making

Accelerate our digital business

Better comply with regulations and requirements

Increase influence and brand reach in the market

Improve the experience of our customers

Grow revenue

0% 5% 10% 15% 20% 25% 30%

4%4%5%

6%6%6%6%

9%13%

15%26%

From the list of business priorities below, which is the most important initiative for your organization in the next

12 months?


*Forrester forecast

Forcing Increased Investment In New Technology

2012 2013 2014 2015 2016* 2017*

$885 $915 $954 $998 $1,032 $1,083

$343 $350 $368 $393 $420 $452 Total new project spend-ing

Total MOOSE spending

Total new project spending 9.8% 2.0% 5.3% 6.9% 6.6% 7.7%

Total MOOSE spending 6.7% 3.4% 4.3% 4.6% 3.5% 5.0%Total tech spending 7.6% 3.0% 4.5% 5.2% 4.4% 5.7%


CIO Spending Is Not In Alignment


Agenda





CIOs And CFOs Need New Tech Budget Categories

1. Business-led tech initiatives outpace new project budgets.

2. Business innovation requires technology experimentation.

3. Business applications need updates and enhancements to meet new demands.

4. Modern application development require more open-ended funding.

Four forces are pushing the limits of current tech budget categories:


How The Structure Of The Tech Budget Will Change With Our New Budget Categories

Source: Forrester’s Architecting Agile Technology Budgets


Outcome-Oriented Projects Funding Embrace Agile, CD and Innovation

Transition from Traditional Deliverables to Agile Outcomes

Innovation Funds Help CIOs Explore New Technologies For Transforming Business

• Focused on customer driven outcomes

• Designed for continuous delivery• App refresh funding comes partly

from new projects and partly from MOOSE

• Business units upgrade their supportive apps

• COE approach• CIO-led but with business

involvement• Joint decisions for funding• Enable trials and experiments


Agenda





Traditional Portfolio Management

Funnel Assess Trade offAnalysis Backlog Monitor

Demand Management“Feed the funnel”

Portfolio Management“Selecting for value”

Resource Management“Capacity to deliver value”

“What” You Do; Pick the right initiatives (Strategic)

Portfolio Review“Maintaining velocity for the best value”

Execute“Executional Excellence”

“How” You Do It: Deliver the right work – right (Tactical)

Retro-spective


Traditional vs. Agile Planning

Customer focusedProduct/value focusedEmphasis on throughputDirect relationship to strategy

Operationally focusedProject focusedEmphasis on utilizationTangential relationship to strategy

Agi

leTraditional


Mapping Strategic ThemesIncrease return on

capital

Improve productivityIncrease revenues

in existing segments and markets

Grow revenues in new products and

services

Improve Operating Quality And Efficiency

Grow High Value Customer Relationships

Accelerate ProductInnovation

Be a leader in quality & reliability

Provide valued service, applications expertise & support

Introduce innovative, high quality products

& services

Improve supply chain efficiency and

effectiveness

Improve quality, cost and agility of

operating processes

Optimize customer profitability

Expand channels, offerings & markets

Build & maintain strong customer

relationships

Excel in technology, product

development & lifecycle

management

Identify next generation market

opportunities

Expand and build strategic skills, capabilities &

expertise

Develop leadership & execution capabilities

Enable and require continuous improvement

Financial Perspective

Customer Perspective

Process Perspective

Learning & Growth

Perspective


Strategic Themes

Funnel Assessment

Ideas

Initiatives

Epics

Request for

Change

Cost

Risk

Business Value

Alignment

Trade-offAnalysis

BusinessModel

Capabilities

Capacity

Cost

Risk

Backlog

Products

Features

Services

Monitor

Performance

KPIs

Value

Quality

Cost

Risk

Retrospective

Outcome

Performance

Using Kanban to Facilitate The Portfolio


Sal

es a

nd m

arke

ting

Hum

an re

sour

ces

Fina

nce

Logi

stic

s

Cal

l cen

ter

Value stream

› Can value stream give me a clearer understanding of costs?

› Can this help align with strategic objectives?

› Will this help with faster, better decision-making and problem resolution?

BudgetingTime to delivery

Use Value Streams To Help PrioritizeFUNDING VALUE STREAMS, NOT PROJECTS


Q1 Q2 Q3 Q4

Yearly plans for initiatives

DevOps DevOps DevOps DevOps

Road map review Road map review Road map reviewFY planning FY planning

Portfolio updatePortfolio update Portfolio update

Portfolio update

Strategic themes captured in strategic/capability planning tools

Release planning by quarter

The Portfolio As A Living Road Map

Budget and resources captured in portfolio management tools

Strategic road map

Sprint planning captured in Agile project management tools

Continuous execution/performance feed back loops


Supporting Teams By Limiting WIP/Managing Dependencies

Senior Product/ Program Owner

Development Leader

Architect/UX Leader

Scrum Master

DevOps Arch/Dev PCOE

DevOps

Arch.

ePMO

Test

t

t

t

t

t

t

t

t

t

t

t

t

CoEs

Shared Services

ScrumSquads

Planning Teams

PPMO Supports


The Connected Enterprise

Portfolio management/

PPM

ITSM

Application Development

ERP Finance

CRM

HR

Architecture

CWM

EnterpriseContent


How The PMO Can Help

Chief strategist

Scrum Master

COEs

Scrum Teams

Virtual planning teams

Product OwnersArchitecture

Business Owners

Release Train EngineersValue Stream Engineers

Finance Agile PMO

Develops framework and cadence

Provides guidance

Facilitates process

Brings expertise Supports decision makers

Executes release trains

Delivery teams

Activity decision maker

Accountable for decision/execution outcome


Recommendations1. Take a product centric approach to create

focus.

2. Establish a continuous cadence of planning and review

3. Use value streams to identify priorities and reduce waste

4. Tools are a necessity


CollaborativeWork

Management that Empowers

Teams

Enterprise-wide Portfolio and Resource Management

Products That Optimize Resources and Work

Enterprise Capability

and Technology Management

IT PPM for Small-to-Midsize Organizations

Solutions spanning every class of work, resource, and organization


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