portfolio prioritization with lean canvas

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/

mailto:[email protected]


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


Photo: Rory Mizen

Highest Paid Person’s Opinion


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


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>


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


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/

https://www.flickr.com/photos/28685147@N04/


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


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


Estimate the relative value of projects in a portfolio

100 200 500 800 1200 2000 3000


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


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


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?


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


Finally

1agile42 2Innovation Games® 3Dean Leffingwell: Agile Software Requirements

Whatever works best for your situation!

Not….


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



Reference Section: The process steps for sequencing projects


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


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


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

portfolio prioritization with lean canvas

Leadership & Management

agile coaching company

agile lean practices

senior agile coach

agile transformation

time intangible

time logarithmic

grossmargin lean canvas

customers protable