1. Agile
Por*olio
Management
at
NYSE
Presented
by:
Gabino
Roche
Agile
2012
–
Dallas,
TX
August
15,
2012

2. Core
Message
Large
Enterprise
Por*olio
Management
• Demonstrate
cost
and
value
• Manage
capacity
and
opportunity
cost
• Perform
agile
por*olio
management
without
the
jargon

3. Agenda
• The
Opportunity
• Challenges
• First
Things
–
The
Basic
Mechanics
• Managing
a
Por*olio
by
Opportunity
Costs
• InsOtuOng
Agile
Por*olio
Governance

4. Gabino
Roche
Contact
Info:
• LinkedIn:
www.linkedin.com/in/GabinoRoche
• TwiVer:
grochejr
• JP
Morgan
Chase
Email:
Gabino.M.Roche@jpmorgan.com
• Maag
Studios
(Mobile
App
Development
Company):
• Website:
www.MaagStudios.com
• Email:
groche@maagstudios.com
• TwiVer:
MaagStudios
• Facebook:
www.facebook.com/MaagStudios

5. The
Opportunity
amid
the
Financial
Crisis

6. NYSE
Euronext
Lines
of
business:
• Cash
Equi@es
• Futures/Op@ons
• Market
Data
• Bonds
• NYSE
Technologies
– New
division
formed
in
2008
– Acquisi@ons:
• Wombat
• AEMS
• TransacNools
• NYFIX

7. Discovering
the
Landscape
Revenue
is
the
Priority
• 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?

8. Frequent
Changes
in
Leadership
Changing
DirecOons
too
oen
• 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

9. Fiefdom
Challenge
Are
you
one
company,
or
are
you
fighOng
a
turf
war?
• Difficult
to
leverage
synergies
between
departments
• Redundancies
on
efforts
• Wasted
budget
and
@me
• Poor
management
of
opportunity
costs

10. 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

11. 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

12. First
Things
–
The
Basic
Mechanics
Determining
Team
Capacity
&
Quick
EsOmaOon

13. Determining
Business
Value
• 5
–
Highest
Business
Value
Biz
Value
Story/Feature
5
Feature
1.2
• 3
–
Medium
Business
Value
5
Feature
1.3
3
Feature
2.1
• 1
–
Low
Business
Value
5
Feature
2.2
1
Feature
2.3
5
Feature
3.1
3
Feature
3.2
3
Feature
3.3

14. Determining
Business
Value
Total
Business
Value
=
30
Biz
Value
Story/Feature
5
Feature
1.2
5
Feature
1.3
3
Feature
2.1
5
Feature
2.2
1
Feature
2.3
5
Feature
3.1
3
Feature
3.2
3
Feature
3.3

15. Determining
Business
Value
Total
Business
Value
=
30
Biz
Value
Story/Feature
5
Feature
1.2
Business
Value
Points
Delivered
to
date
=
18
5
Feature
1.3
3
Feature
2.1
5
Feature
2.2
1
Feature
2.3
5
Feature
3.1
3
Feature
3.2
3
Feature
3.3

16. Determining
Business
Value
Total
Business
Value
=
30
Biz
Value
Story/Feature
5
Feature
1.2
Business
Value
Points
Delivered
to
date
=
18
5
Feature
1.3
3
Feature
2.1
Percent
of
Business
Value
5
Feature
2.2
Delivered
(18/30)=
60%
1
Feature
2.3
5
Feature
3.1
3
Feature
3.2
3
Feature
3.3

17. Rule
of
Thumb
Total
Business
Value
=
30
Biz
Value
Story/Feature
5
Feature
1.2
Business
Value
Points
Delivered
to
date
=
24
5
Feature
1.3
3
Feature
2.1
Percent
of
Business
Value
5
Feature
2.2
Delivered
(18/30)=
80%
1
Feature
2.3
5
Feature
3.1
From
experience
once
projects
reach
3
Feature
3.2
80%
of
value
delivered,
serious
discussions
3
Feature
3.3
can
be
had
about
whether
to
con@nue
or
not

18. Determining
Cost
Per
Feature
• 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.

19. Per-­‐Project
and
Per-­‐Feature
Cos@ng
• Total
the
story-­‐points
in
the
Cost
Story/Feature
EsOmate
Backlog
$4,000
Feature
1.2
8
• Use
the
team’s
steady-­‐state
$2,500
Feature
1.3
5
velocity
$1,500
Feature
2.1
3
$2,500
Feature
2.2
5
• Story
sizes
are
arbitrary
but
are
specific
to
a
team
and
a
project
$500
Feature
2.3
1
$1,000
Feature
3.1
2
• For
more
accurate
results,
bring
$2,500
Feature
3.2
5
the
work
to
the
team
and
keep
the
team
stable
$500
Feature
3.3
1

20. Managing
Capacity
&
Effort
Project A
Project B
Project C
Project D
Project E
Queries/Support 1
Queries/Support 2
Performance
Total Effort

21. Using
Burndowns
for
Delivery
AND
Cost
Project
OM

22. Using
Burndowns
for
Delivery
AND
Cost
Project
OM

23. Network
&
Avoid
the
Jargon
Informally
InsOtute
the
Process
• 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

24. The
Business
Case
Case
Type
1:
• Expected
Development
Costs
• Profit
Margin
• Client
Desired
Delivery
Date
• Overall
Effort
• IT’s
Proposed
Schedule
Start
• Quarter
for
which
the
sale
will
close
Case
Type
2:
• Rela@ve
Risk
• Strategic
Importance
• Iden@fica@on
of
“Lighthouse”
customers
• The
likelihood
of
demand

25. The
Product
Management
Team
Leveraging
Synergies
• Product
managers
(owners)
know
their
space
• A
team
of
product
managers
builds
strategic
cohesiveness
• Avoid
redundancies
&
maximizing
opportuni@es
• BeNer
focus
on
strategies

26. Ideal
Agile
Portolio
Governance
Transform
project
Priori@ze
Project
(i.e.
cut
scope
or
Pipeline
by
Value
change
focus)
Transform
Commit,
Kill,
Commit
Fund
the
project
&
Or
Transform
get
out
of
the
way
Kill
Project
is
taken
off
list
or
placed
at
*Reference:
Diagram
taken
from
Johanna
Rothman’s
the
boNom
Manage
Your
Project
Portolio

27. Large
Enterprise
Agile
Portolio
Governance
Concept
IniOaOon
Planning
ExecuOon
&
Delivery
Closure
Idea
Scope
Program
Setup
Delivering
the
Benefits
Evaluate
and
Close
Program Monthly Final Program
Program
Deliverables
Program Team
Governance Pack Financials Business Case
Business Case
Program Program ABC Program Program
Monthly Monthly Program
Charter Showcase Pack Plan & Schedule Closure Pack
Business Case Status Pack
Business PMO
Activities
PMO Validates PMO Validates PMO Validates PMO Validates
& Posts Program & Posts Program Monthly Business Monthly
& Posts Program & Posts Program
Documents Documents Case Metrics PDM Status Pack
Documents Documents
Internal
Management
Repor@ng
Site
Governance &
Gov Meetings
Executive Stakeholder Monthly EC Monthly
Stakeholders
Funding Stakeholder PIR
Funding ABC Meeting Program Delivery
Confirmation Closure Meeting
Meeting Showcase (BC Metrics) Meeting (PDM)
Meeting
Program Program Program Closure
Go No/Go Go No/Go Go No/Go Monthly Go No/Go
Program Steering Committee
Page 27

28. Portolio
Review
&
Decisions
• 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?

29. In
Summary
Takeaways:
• Demonstrate
cost
and
value
• Manage
capacity
and
opportunity
cost
• Perform
agile
por*olio
management
without
the
jargon

30. Gabino
Roche
Contact
Info:
• LinkedIn:
www.linkedin.com/in/GabinoRoche
• TwiVer:
grochejr
• JP
Morgan
Chase
Email:
Gabino.M.Roche@jpmorgan.com
• Maag
Studios
(Mobile
App
Development
Company):
• Website:
www.MaagStudios.com
• Email:
groche@maagstudios.com
• TwiVer:
MaagStudios
• Facebook:
www.facebook.com/MaagStudios

31. Appendix

32. Recommended
Reading
• Kenny
Rubin:
Essen@al
Scrum
• Johanna
Rothman:
Manage
Your
Project
Portolio

33. Demonstra@ng
Cost
and
Value
Can
you
answer
the
following
for
each
of
your
teams?
• 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?

34. Reviewing
a
new
project
proposal
When
the
business
presents
a
new
project,
all
stakeholders
need
to
ask:
• 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?