Agile portfolio management at nyse

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



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



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


Percent of Business Value Delivered (18/30)= 60%



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


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


Documents


Documents


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: