lean portfolio management - agilityhealth · •manages the portfolio kanban & backlog...

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Lean Portfolio Management


Lean Portfolio Management Is…

Clarity on strategic intent & themes and alignment to outcomes at every level. Quarterly

planning cadence focused on delivering outcomes over deliverables.


Lean Portfolio Management Principles

Align to Outcomes

Shift to Strategy

Move Decision Making Down

Limit WIP

Plan with Visual

Artifacts

Quarterly Planning Cadence

Focus on Customer Value


Lean Portfolio Management - Recommendations

1. Form the right Lean Portfolio Mgmt. Teams• Gain clarity on roles, decision rights and expectations

2. Move planning from Outputs to Outcome focus• Empower Teams to figure out the ‘HOW’, communicate the What/Why and

acceptance criteria

3. Shift to quarterly collaborative face to face planning • Move away from any automated intake process at the portfolio level

4. Make outcomes visible, align to them and check-in on progress at all levels


Minimize Outputs & Maximize Outcomes


Outcomes vs Output

Outcome: Create an Awesome Customer Experience Key Results: • Improve Net Promoter Score from X to Y. • Increase Repurchase Rate from X to Y. • Maintain Customer Acquisition Cost under Y.

Output (Epic/Capability): • Launch MVP2. • Redesign the customer journey. • Analyze existing UX experience gaps.


Align Through the LevelsTe

am Outcomes & Goals

< 3 MonthsTeam

Capacity User Stories

< Iteration Iteration Outcomes & Performance

Team Growth Items

Team

of

Team

s

Quarterly/PI Outcomes

Team of Teams Capacity Capabilities &

Features

1 ‐ 3 Months Team of Teams Outcomes & Performance

Team of Teams Growth Items

Portfolio 1‐Year

Outcomes Investment Epics

3 – 12 Months Portfolio Outcomes & Performance

Portfolio Growth Items

Enterpris

e

3‐Year Outcomes

KPIs & Enterprise

PerformanceBudget Business

Plan

1 Yr.Enterprise

Growth Items

Strategy Funding Work Results

Roll‐up

and

Rem

ove Obstacles

Align an

d Ac

hieve Outcomes

GrowthToday we create 3 year strategy then focus all our effort on the

‘Work’ alignment column.

Tomorrow, we need to shift focus to ‘Strategy’ alignment

and outcome delivery over

output.


Enterprise: 3-Year Outcomes (Strategic Intent)

• 3 to 5 high-level statements: the essence of winning

• Speaks to “The Why”

• Stable over time: 3 years out

• Drives focus and alignment to strategy

Stretch targets that move the organization to compete in innovative ways


3-Year Outcome: ExampleOutcome:

Hypothesis:

We Know we succeed when:• Increased Market Share• Higher return on investment• Increased customer sentiment that we are a product leader in the small business

market

Modernize and innovate on our Small Business Insurance Products

We believe that modernizing and innovating our small business insurance products will allow us to be more competitive and become an emerging leader in this market


Portfolio: 1-Year Outcomes

• 3 to 5 most important differentiators

• Captures success measures as key results

• Key results can be attained within a year

• Drives effort and commitment to strategy

Portfolio’s Outcomes to achieve in the next year that align back to the 3 Year Outcomes


1-Year Outcome: ExampleTitle:

Hypothesis:

Key Results / Metrics:

Title Progress Metric Now Target Team of Teams

Increase SMB membership

Active Members

30K 60k SMB Sales

Maintain Conversion Rate

Activation 72% 72% SMB Delivery

Quote applications for new products

Quotes 0 45K SMB Marketing

Overall Progress:

Customer/org Impact metric

New & Compelling Non‐medical SMB products

We believe that by launching new SMB non‐medical benefits insurance products to the market we will increase our market share for small business members.


Team of Teams: Quarterly Outcomes

• Each outcome should:

• Be clearly stated

• Have measurable results

• Be able to be completed in a quarter

Team of Teams’ Outcomes to achieve in the next quarter that align back to the Annual Outcomes


Quarterly Outcome: ExampleTitle:

Hypothesis:

Key Results / Metrics:

Title Progress Metric Now Target Team of Teams

Increase SMB membership

Active Members

30K 37k SMB Sales

Maintain Conversion Rate

Activation 72% 72% SMB Delivery

Quote applications for vision insurance

Quotes 0 12K SMB Marketing

Overall Progress:

Customer/org Impact metric

“Got to Have it” Small Business Vision Insurance Product

We believe that by launching a modern and innovative SMB vision insurance product to the market we will increase our market share for small business members.


Guidance for Writing Effective Outcomes

Created by Intel’s Andy Grove, made popular by ‘John Doerr at Google

Objectives & Key Results (OKRs)Hypothesis Statements


Types of Key Results IMPACT/LAGGINGMeasure the Business or

Customer results you aim to achieve, make take more than a

quarter to measure.

LEADINGMetrics we have control over that we can measure within the quarter/PI to validate we’re on track.

BALANCINGGuardrail metrics defined to protect against unintended

consequences

IMPACT/LAGGINGAcquisition, Activation,

Revenue, Retention, Referral, Cost Reduction, Market share

LEADINGSuccessful experiments, confidence of pilot users,

page performance improvement, search results

matching new offering,

BALANCINGEnsure quality doesn’t decrease if you have a ‘go faster’ metric.

Examples


Types of Quarterly Goals TEST IT (EXPERIMENTS)

Your idea is new and hasn’t been proven so you should focus this quarter on running experiments

and validating your assumptions. This goal is usually owned by your Discovery team members.

NAIL IT (MVP)You’ve validated the idea and are now ready to build an MVP so you should pick metrics that prove the MVP is valuable, usable, feasible. Also consider

performance and quality metrics.

SCALE IT (MMP)You’re ready to hit the market so now you can measure Pirate like metrics and market share

expansion, revenue and customer success metrics. Consider balancing metrics.

For your quarterly outcomes, identify the right key results based on the goal


Workshop: Writing Outcomes


Lean Portfolio Management Team• Aligns 3‐Year and 1‐Year Outcomes

• Aligns outcomes & initiatives (epics)

• Reviews, approves & prioritizes portfolio work

• Manages the Portfolio Kanban & backlog

• Performs quarterly planning

• Reports progress toward outcomes, investment & performance targets

• Remove portfolio‐level obstacles

Enterprise Architect Or Lean

Governance

Portfolio Manager(s)

Portfolio Owner(s)

Portfolio Mgt. Team


Planning Cadence: EnterpriseTe

am Outcomes & Goals

< 3 Months

Team

of

Team

s

Quarterly Outcomes

3 Months

Portfolio

Strategic Themes & Outcomes

< 1 Yr.

Enterpris

e

Strategic Intent

1 – 3 Yrs.

Strategy

Align & Elabo

rate

Part 1‐Enterprise

Level

Part 1‐Enterprise

Level

Day 1: Vision & Strategy‐ Clarity on 3 year Vision & Strategic Intent‐ Define market strategy and how to win (by market

segment or product)‐ SWOT and market analysis data‐ Define Strategic Themes (1 year outcomes)‐ Define investment pool

Day 2: Portfolio Alignment.‐ Portfolio investment allocation‐ Review/modify current portfolio org design‐ Align portfolios to strategic themes‐ Identify risks, gaps and mitigation plan‐ Seed initial enterprise risks/obstacle board‐ Consensus and next steps

Day 1: Vision & Strategy‐ Clarity on 3 year Vision & Strategic Intent‐ Define market strategy and how to win (by market

segment or product)‐ SWOT and market analysis data‐ Define Strategic Themes (1 year outcomes)‐ Define investment pool

Day 2: Portfolio Alignment.‐ Portfolio investment allocation‐ Review/modify current portfolio org design‐ Align portfolios to strategic themes‐ Identify risks, gaps and mitigation plan‐ Seed initial enterprise risks/obstacle board‐ Consensus and next steps

Annual Planning with Quarterly Check‐Ins


Planning Cadence: PortfolioTe

am Outcomes & Goals

< 3 Months

Team

of

Team

s

Quarterly Outcomes

3 Months

Portfolio


< 1 Yr.

Enterpris

e

Strategic Intent

1 – 3 Yrs.

Strategy

Align & Elabo

rate Part 2‐

Portfolio / Value Stream Level

Part 2‐Portfolio / Value Stream Level

Day 1: Demand Mgmt.‐ Review Vision & Strategic Intent‐ Review and align on Strategic Themes (Annual

Outcomes)‐ Create quarterly outcomes‐ Outcome readout and refinement‐ Build/Update Visibility Room /Outcome Dashboard

Day 2: Capacity Mgmt.‐ Review/modify allocation & investments‐ Review/modify current team of teams design‐ Align team of teams to outcomes‐ Update obstacle board‐ Retro on meeting planning, ceremonies, roles, etc.‐ Agree on next steps

Day 1: Demand Mgmt.‐ Review Vision & Strategic Intent‐ Review and align on Strategic Themes (Annual

Outcomes)‐ Create quarterly outcomes‐ Outcome readout and refinement‐ Build/Update Visibility Room /Outcome Dashboard

Day 2: Capacity Mgmt.‐ Review/modify allocation & investments‐ Review/modify current team of teams design‐ Align team of teams to outcomes‐ Update obstacle board‐ Retro on meeting planning, ceremonies, roles, etc.‐ Agree on next steps


Planning Cadence: Team of TeamsTe

am Outcomes & Goals

< 3 Months

Team

of

Team

s

Quarterly Outcomes

3 Months

Portfolio


< 1 Yr.

Enterpris

e

Strategic Intent

1 – 3 Yrs.

Strategy

Align & Elabo

rate

Part 3 ‐Team of

Team Level(PI/Big Room Planning)

Part 3 ‐Team of

Team Level(PI/Big Room Planning)

Day 1:‐ Vision & strategic themes‐ Present quarterly outcomes and top

deliverables/features‐ Architecture vision and practices‐ Team breakouts & planning‐ Draft plan review

Day 2:‐ Team breakouts & planning‐ Final plan review and alignment ‐ Team capacity, roles and allocation adjustments‐ Review dependencies, risks, skill gaps‐ Confidence vote‐ Planning retrospective

Day 1:‐ Vision & strategic themes‐ Present quarterly outcomes and top

deliverables/features‐ Architecture vision and practices‐ Team breakouts & planning‐ Draft plan review

Day 2:‐ Team breakouts & planning‐ Final plan review and alignment ‐ Team capacity, roles and allocation adjustments‐ Review dependencies, risks, skill gaps‐ Confidence vote‐ Planning retrospective


Enterprise Visibility Room (EVR)

Where Quarterly Portfolio Planning Occurs


Workshop: Walkthrough the EVRHealth & Maturity

Customer Segments & Personas

Performance KPIs

Strategic Intent & Themes

Quarterly Outcomes

Budget & Theme

Allocation

impe

dimen

ts / Obstacles


The blue columns represent ‘Demand’ the purple are

‘Capacity / Delivery’. You can click on any level of the org to gain visibility and alignment

on outcomes.

AgilityHealth Outcome Dashboard


AgilityHealth Outcome Dashboard


Lean Portfolio Management Implementation Path

Form the Portfolio Management Team

Create 1‐Year Outcomes

Prepare for Quarterly Planning

Conduct Quarterly Planning

Align the Epics/Capabilities to

the Outcomes

Establish the priorities for the

quarter

Align demand to capacity

Organize the Portfolio Backlog

Portfolio Work

Portfolio Outcomes


Summary

• 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


Workshop: Color the Radar

lean portfolio management - agilityhealth · •manages the portfolio kanban & backlog...

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