Lean Portfolio Management

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Focus Workshop - The Multitasking Game!
Roles

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The Multitasking Name Game

Roles

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Lean Portfolio Mgt. Principles
• Shift from tactical to strategic
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• Push decision-making down to the appropriate level
• Align funding and capacity to outcomes
• Limit work in progress and align to capacity
• Plan face-to-face with meaningful visual artifacts
• Planning cadence appropriate to the level of planning
• Focus on fast, frequent delivery of customer value

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 Cascade Through the Levels
Strategy Funding Work Results Growth
Roles
Enterprise

1 – 3 Yrs. 1 Yr. KPIs &

Enterprise
Budget Portfolio Enterprise
Strategic Intent Growth Items
Business Plan Performance

Summarize & Roll-up

< 1 Yr.
Portfolio

3 – 12 Months
Align & Elaborate

Portfolio Demos Portfolio

Strategic Themes Investment
Initiatives/Epics & Performance Growth Items
& Outcomes
Team of

3 Months 1 - 3 Months Team of Teams

Teams

Team of Teams Team of Teams

Quarterly Demos &
Capacity Features Growth Items
Outcomes Performance

< 3 Months < Iteration

Team Iteration Demos
Team

Team
Outcomes
Capacity User Stories & Performance Growth Items
& Goals

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Enterprise Level: Implementation Path
Form the EVR Create Strategic Establish the Conduct Quarterly
Leadership Team Intent & Set Budgets EVR Room Planning

• LPM Overview • Education & define • Design room • Enterprise context

• Quarterly Planning deliverables layout • Portfolio context
Overview • Create intent • Gather & post data • Growth Items
• Strategic Planning statements from ELT &the • Identify risks &
Cadence • Set portfolio Portfolios adjustments
• Roles and Team budgets • Gather & post key • Conduct
Norms metrics Showcases

The EVR leadership team, a great mix of cross-functional leaders, had never truly
been formed as a team and this has caused lots of Team Dynamic challenges.

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Strategic Intent
Objective
Roles
• 3 to 5 high-level statements of
what the enterprise wants to • Key Result
accomplish • Key Result
• True North for the Organization • Key Result

Example Example
Refresh and innovate our consumer Refresh and innovate our consumer
insurance products insurance products to increase market
share at higher returns.
• Increase market share by 5% in 3
years (“5 by 3”)
• All products are at or above 8% ROE
in 3 years (“Success over 8”)

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Lean Business Plan
Roles
1. Lean Canvas
2. Financial Analysis
3. External Environment
4. Risk Analysis

Financial Environmental SWOT and

Spreadsheets Analysis Risk Analysis

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Portfolio Level: Implementation Path
Phase 1: Form the Portfolio Management Team and define Strategic Themes & Quarterly Outcomes

Create Strategic Identify

Form the Portfolio Create Portfolio
Themes & Set Architectural
Management Team Quarterly Outcomes
Investments Enablers
• Lean Portfolio • Education & • Review Strategic • Portfolio
Mgt. Training define deliverables Themes Outcomes
• Team Design • Create themes • Identify enablers • Success measures
• Roles aligned to • Roadmap
• Norms Strategic Intent • Conduct
• Cadence • Set theme Showcases
investments

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Portfolio Level: Implementation Path
Phase 2: Gather, define and align the work to the Strategic Themes & Quarterly Outcomes

Gather Existing Organize the Establish a Kanban Set the Cadence and
Epics/Initiatives Portfolio Backlog and Visibility Room Launch

• Education & • Estimate effort • Preparation • Finalize the

define deliverables • Assess business • Build the Kanban process
• Define current value board • Establish meeting
backlog • Prioritize the • Design visibility cadence
backlog room layout • Conduct
• Gather & post data Showcases
and metrics

One of the biggest AHAs is that the EVR room slowly moved from an Enterprise Level
visibility room into a level 2 portfolio work prioritization, impediment resolution,
dependency-management room.
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Strategic Themes
We believe <capability>
Roles
• Business goals that connect a Will result in <outcome>
portfolio to the Strategic Intent For <persona>
• These are the 3 to 5 most We succeed when <measures &
important differentiators targets>

Example Example
More competitive, streamlined and We believe that providing a refreshed suite
innovative non-medical group of insurance offerings to employers will
benefits products improve access and ease benefit
administration.
We are successful when:
• Increase sales by $2.5M
• We improve our customer NPS score by
5%

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What is a Quarterly Outcome?
Quarterly Outcome:
Roles
• The outcome or result sought by the business strategy or direction (what you're trying to
achieve)
- Gartner 2017

 Specific

 Measurable

 Meaningful

Business Value is realized when Quarterly Outcomes are achieved!

Outcomes are valuable, planned, slowly changing and define a common direction for all work.
- Evan Leybourn, IBM GBS

Copyright(c) Agile Transformation Inc. | Confidential & Proprietary

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 Sample Quarterly Outcome
Overall Progress:
Objective Launch a new non-medical SMB product 7%
Title: 52%
Estimated ROI:
Hypothesis We believe that by launching new SMB non-
Statement/ medical benefits insurance product to market we $6,000,000 120
Description: will increase our market share for small business Estimated Cost: Value Pts
members. $1,800,000
Calculated based on # of weeks per
Key Results / Metrics: team, X avrg. cost per team 30k/week
Title Progress Metric Now Goal By Groups/ # of Weeks
Baseline Date Team(s) (est)

Increase SMB Membership 30k 60k July30 Sales 8 weeks

0% (30k) 2018
membership by 20% (-)

Launch SBM Non- Launch Not Done Dec 31 Program 48 Weeks

20% () Done 2017
Medical Product JAMZ (4
teams)
Receive 100 quote Quote 0 100 Feb MKTG 4 weeks
(0) 2017
applications for new 0%
product

Customer/org Impact metricwww.AgilityHealthRadar.com

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Workshop – Writing Quarterly Outcomes

Roles

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Quarterly Outcome Card Template
Objective Title:

Hypothesis
Statement/
Description:

Key Results / Metrics:

Title Metric Now Goal By Date Groups/
Team(s)

Customer/org Impact metric

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Sample Epic / Initiative
SMB Vision Product
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For small to mid-size employers who want a single source for non-medical benefits the
Vision Insurance Product is a significant new product offering that provides improved
customer access and streamlined administrative processes unlike existing vision products
in the marketplace our solution provides an optimal provider network, enhanced vision
services coverage and streamlined systems and processes.

Outcomes Hypothesis Leading Indicators NFRs

 Increased customer acceptance  Proposal activity  Load time < 3 seconds
 Larger provider network  Close Ratio  Microservice design
 Increased sales and revenue
 Increased persistency

Supports Outcome: Launch new SMB non-medical product

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 Portfolio Kanban
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Strategic Themes:
(WIP = 5) (WIP = 3)
Ideas Analysis Approval Backlog Q1 Q2 Q3 Q4
Portfolio Roadmap
Arch.
Outcomes Outcomes Outcomes Outcomes

ToTs 1
Arch. Arch.

Arch.
Initiatives / Epics

ToTs 2
Arch.

Arch.
Arch.

ToTs 3
Arch.
ToTs 4
ToTs 5

Arch.

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Team of Teams Level: Implementation Path
Gather Existing Epics Organize the Team Establish the Kanban Set the Cadence and
& Features of Teams Backlog and Visibility Room Launch

• Education & • Estimate effort • Preparation • Finalize the

define deliverables • Assess business • Build the board process
• Define current value • Design visibility • Establish meeting
backlog • Prioritize the room layout cadence
backlog • Gather & post data • Conduct
• Create the and metrics Showcases
Roadmap

Consider the importance of designing the allocation of teams towards outcomes and being
empowered to make changes every 6 or 12 months to maximize the throughput of
outcomes. This will challenge the leaders that feel that they own resources and teams.

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Sample Feature
Roles for SMB Vision Product
Bulk Application
Integrate SMB Vision Product into bulk application on the SMB
Employer Portal
Value Acceptance Criteria
• Consistent administration of • Submit application for all their
products employees at one time
• Streamlined for open • Consistent UI and UX with
enrollment, reduces existing bulk applications
administration time • Ensures minimum required
• Considered a must-have data is provided for each
feature by our customers employee

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Team of Teams Kanban
Strategic Themes:
Roles (WIP = 5) (WIP = 3)
Ideas Analysis Approval Backlog Q1 Q2 Q3 Q4
Team of Teams Roadmap
Arch.
Outcomes Outcomes Outcomes Outcomes
EPICS

Arch.
Arch.
Arch.

Team 1
Arch.

Team 2
Arch. Arch. Arch.
Arch.
Arch.
Arch.

Team 3
Features

Team 4
Team 5

Arch.

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Visibility Rooms
Aligning Strategy, Demand and Capacity
What’s the Problem?
Roles

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How Do We Align Demand to Capacity?
AllocationRoles
and Focus Challenge
• Competing priorities
• Frequent tradeoff decisions
• High multi-tasking

”Add more people or reduce your

competing goals, period”
- Quarterly Planning Attendee
representing the “Voice of the
Customer”

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Visibility Room Value Statement
Roles

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Visibility Rooms At Each Level
Enterprise Demand Capacity Obstacles
Roles
Quarterly
Enterprise Visibility Strategic Intent Enterprise Growth
Outcomes by
Room (EVR) and Themes Items
Portfolio

Portfolio

Strategic Themes
Portfolio Visibility Epics / Initiatives Portfolio Growth
and Quarterly
Room (PVR) by Team of Teams Items
Outcomes

Team of Teams

Multi-Team Quarterly
Team of Team
Visibility Room Outcomes and Features by Team
Growth Items
(MVR) Objectives

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Enterprise Visibility Room (EVR) Layout
“Demand” “Capacity” “Obstacles”
Roles
Strategic Strategic Growth Items
Intent Themes Portfolio 1 Portfolio 2 Portfolio 3 To Do In Progress Done

Outcome Outcome Outcome

Outcome Outcome Outcome

Outcome Outcome

Outcome Outcome

Budget KPIs Customer & Market

“Additional
Supporting
Visuals”

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EVR - Large Healthcare Provider
Enterprise Team
2014 Strategy Roles 3 Year Roadmap Performance Metrics

Strategy & Enterprise Team

3 Year Roadmap (Our Capacity) Key Performance Indicators Handouts

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Workshop – Portfolio Visibility Room
Roles
Use the EVR Room
Layout as a Guide

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EVR – Real-world Value
Roles
Leadership and the individuals who
represented the voice of the customer all
agreed that the visibility room helped the
organization gain transparency, have higher
quality conversations, be more aware of
priorities, capacity, allocation and
impediments, and understand the complexity
involved in getting work done.

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Lean Portfolio
Roles
Limit organizational Work-In-Progress (WIP)

Make all work visual

Ensure cross functional team alignment around

customer value creation activities
Connect Work to the Strategy and Vision

Use Visibility Rooms at each level to Align

Demand and Capacity

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Workshop – Color the Radar
Roles

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Workshop – Let’s Explore
Roles
Share a challenge
or success story

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