Is governance focused on the right things? Governance is set up to manage risks, resources, and productivity, and operates to assure programs get delivered to realize promised benefits. What if customers don’t buy what’s delivered? What if users hate it? What, if anything, was assured in the business case? Were the benefits guaranteed? Is governance missing an opportunity to add greater value? There is a tension between agile teams and governance models. Governance is geared more to the things that are valued less in the Agile Manifesto – tools, plans, contracts and documentation. So why not design a governance model that embodies agile and lean principles? What if governance looked for opportunities to create value and eliminate waste instead of asking whether programs are on schedule and within budget? What would governance and portfolios need to look like to enable greater business agility? What new roles would governance take on and what would its operating principles be?

1. GOVERNANCE
FOE?
FRIEND OR
#abcfriendorfoe
An Energized Work Production
Agile Business Conference / 11 Oct 2012

2. Simon Baker / @energizr
Gus Power / @guspower
{first name}@energizedwork.com
#abcfriendorfoe
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3. ✪ GOVERNANCE – FRIEND OR FOE?
Let’s try to reimagine governance.
Get past “if only…”
Explore the “what if’s…”
Ask “why the hell not?”
Think of it as an experiment.
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4. ✪ AT THE END
/ Connect our experiences.
/ Explore our own situations with others.
/ Discover the right questions to ask about governance.
/ Learn new insights we can take back to our workplaces.
/ Establish links with people that last beyond this afternoon.
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5. Photo: http://www.flickr.com/photos/itupictures/
✪ WORLD CAFÉ
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6. ✪ THE POWER OF CONVERSATION
This is a workshop, so please talk to those around you.
The plan is to have 4 conversations on different topics.
If you think you know everything, or you just want to disagree then
it's not going to be beneficial to you. It’s not about winning or losing.
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7. ✪ SCHEDULE
14:55 – Introduction.
15:00 – Gambling.
15:20 – Value (discussion).
15:35 – Coffee.
15:50 – Value (rotation).
15:55 – People.
16:15 – Questions / Open discussion.
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8. ✪ 1. SET THE CONTEXT
/ 5 minutes.
/ We'll share our thinking on the topic, maybe pose some questions.
/ See the handout for a reminder.
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9. ✪ 2. BEGIN THE CONVERSATION
/ 10 minutes.
/ Doodle and discuss.
/ Build up a picture.
/ Focus on what matters.
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10. ✪ 3. MOVE TO ANOTHER TABLE
/ 5 minutes.
/ 1 or 2 hosts stay with the table.
/ The rest move to other tables.
/ Hosts present what was discussed.
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11. http://www.flickr.com/photos/texaselephant/
✪ GAMBLING
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12. ✪ PURPOSE OF GOVERNANCE
The accepted purpose of governance is largely to monitor,
report on, and ensure that the specified requirements will
be delivered in the agreed timeframe and within the
agreed budget to realize the benefits stipulated in the
business case.
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13. ✪ PURPOSE OF GOVERNANCE
And in so doing, to ensure processes are followed correctly,
standards are adhered to, and the software is produced to
an acceptable level of quality.
Gating and approving / Ensuring compliance to processes and standards / Controlling
budgets and headcount / Auditing and quality assurance reviews / Monitoring progress /
Reporting status / Managing issues and risks / Managing stakeholders
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14. ✪ UNDERSTAND THE GAMBLE
Capital investments are made in IT £
projects on the merits of business cases
built on assumptions.
t
When we build a feature and delay
validating it with customers we’re
making a bet that it’s “right”. What if
we’re wrong?
Every feature done this way ups the ante
Increasing inventory
until we’re betting the budget on a Increasing investment
big-bang release.
Bigger and bigger bet
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15. ✪ MORE CONTROL DOESN’T REDUCE THE BET
Optimizing productivity so that projects aren’t late or over budget doesn’t
address the big risks in the following assumptions:
/ The requirements define the right solution.
/ All requirements must be delivered before any value can be realized
(all or nothing).
/ If all requirements are delivered, the value will be realized.
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16. ✪ SMALL BETS
Can we deliver less without delivering too little?
Why not make smaller bets and find out?
Bet what we can afford to lose
£
and get faster feedback to
prove earlier what’s valuable
and what’s not valuable.
t
Let’s be a bit more scientific.
Less inventory; regular releases
Series of small investments
Small bets
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17. ✪ INCREMENTAL INVESTMENTS
Why not make smaller incremental capital and operational
investments based on business measurements?
/ Business service cash flows.
£
/ Portfolio performance.
/ Risk exposure.
/ Impending obsolescence.
Profitable
/ Cost of delay.
t
Use fast actuals, flash forecasts
Break-even
and moving averages in a rolling
review to inform continuous
re-evaluation and prioritization.
Self-funding
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18. ✪ MORE BENEFICIAL GOVERNANCE
The compelling opportunity for governance is to help business
investors make investments that maximize business performance.
The portfolio is of business services and not IT projects.
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19. ✪ BLOWING YOURSELF UP
1.
No edge.
2.
No planning.
3.
Wrong bet size.
4.
No risk management.
5.
Mistiming exits.
6.
Out of control.
7.
Not in tune with the market.
8.
Running before walking.
9.
Emotionally unstable.
10.
Not taking responsibility.
Source: The Financial Spread Betting Handbook by Malcolm Pryor.
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20. ✪ VALUE
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21. ✪ TIME, COST, SCOPE, QUALITY. VALUE?
The word ‘value’ is used extensively. And
Scope
ambiguously.
Value needs to be defined, quantified
and measured. When it’s not we’re left in Compromise
Quality
a subjective argument about scope and
cost – “delivery should be quicker, Cost
Time
cheaper; more features should be
Vary Scope
delivered in the same time-frame for the
same cost.”
Backlogs have become the new functional
Quality
specification.
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22. ✪ FIT FOR PURPOSE AND FIT FOR USE
The focus is on functionality but how well are the functions performed?
Condition
Condition
Resource
FUNCTION Performance
Design
(Architecture)
Source: Competitive Engineering, Tom Gilb
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23. ✪ QUALITY CAN ONLY TAKE SO MUCH ABUSE
To meet unrealistic time and Availability
cost constraints corners are Workload
cut, especially on those Capacity
Resilience
qualities not being measured
or easily determined.
Resource
Flexibility
Saving
Usability
Interoperability
Upgradeability
Expected
Actual
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24. ✪ KNOWLEDGE WORKER PRODUCTIVITY
A commonly held assumption is that to get the most out of your
investment utilization needs to be at or as near to 100% as possible.
Idle resources, equipment or people are wasted investment.
Effort is often confused with progress. Progress is often confused
with value.
Knowledge workers are described as people who “think for a living”.
How do you measure thinking?
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25. ✪ KEEP THE PORTFOLIO RELEVANT
Governance must ensure the portfolio stays relevant.
We have to innovate to stay relevant – to continue to solve problems
that people will pay to have solved.
If the medium and long terms are 18 months and 5 years we face a
problem when the typical employee tenure is less than this.
Not only does our knowledge become obsolete as markets and
technologies change, but knowledge literally walks out the door.
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26. http://www.flickr.com/photos/75724809@N05/
✪ PEOPLE
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27. ✪ CREATING REALITY MISMATCHES
Governance attempts to manage the portfolio day-to-day and balance
business investors’ perceptions and situations in the delivery teams.
With the best will in the world, trying to protect both sides, we can end
up creating a mismatch. When we do so we become over-responsible.
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28. ✪ RESPONSIBLE FOR WHAT?
/ Responsible for the successful delivery of the projects in the portfolio?
/ Answerable to business investors and stakeholders for the actual value
realized?
/ Accountable to delivery teams for providing sufficient resources to
enable them to be successful?
/ Responsible for risk management and mitigation?
Can we design ways to equitably share the risk and responsibility
between governance, stakeholders and delivery teams?
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29. ✪ COMPLEXITY IS NOISY
Getting a clear view and tangible
Stakeholder
measures of what’s happening perception
across a portfolio is hard.
Time to
market
Team
Just getting the mechanics done, Adherence
Stakeholders
like forecasting, budgeting and to plan
Morale
staffing, is a full-time job. And the Objectives
Plans
Requirements
Production
amount of data generated with incidents
Budget /
varying quality can get burn rate
overwhelming.
Designs
Defects
Technology
Operating cost
Can governance help reduce the Dependencies
noise?
Legacy
integrations
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30. ✪ CLASH OR GAPS?
/ Trust people to get the job done.
/ Working software is the primary measure of progress.
/ The best means of communication is via face-to-face conversations.
/ The best architectures and designs emerge from self-organizing teams.
Are agile principles practical, even applicable for governance?
How practical is it to value “individuals and interactions over processes
and tools” when the portfolio ‘employs’ 10,000 people?
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31. ✪ OPERATING AT SCALE
An individual can only handle so many interactions. In a portfolio that
‘employs’ 10,000 people, we have to limit the number of people we
work with day-to-day.
We end up relying on activity reports and assurances from individuals
representing groups of people, like project managers representing
delivery teams.
Scale pushes governance further away from the work.
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32. ✪ CONTINUOUSLY IMPROVING GOVERNANCE
How can we measure the value and effectiveness of governance?
How do we improve it?
This is expected of operational and delivery teams. Why are the same
standards not applied to governance?
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33. ✪ DISCUSSION
Questions?
Share your thoughts.
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34. Thank you for participating.
If you’d be interested in a second café workshop
looking at the financial and risk elements of governance
please leave your business card or name and email address.
#abcfriendorfoe
@energizr / @guspower
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35. Limited
Governance – Friend or Foe by Energized Work Limited is licensed under
a Creative Commons Attribution-ShareAlike 3.0 Unported License
License.
You are free:
To share – to copy, distribute and transmit the work
To remix – to adapt the work
Under the following conditions:
Attribution – You must attribute the work in the
manner specified by Energized Work (but not in any
way that suggests that Energized Work endorse
you or your use of the work).
Share Alike – If you alter, transform, or build upon
this work, you may distribute the resulting work only
under the same or similar license to this one.
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36. ✪ WELCOME TO THE WORLD CAFE
1
SET THE CONTEXT
3
MOVE TO ANOTHER TABLE
/ 5 minutes.
/ 5 minutes.
/ Speakers share their thinking
/ 1 or 2 hosts stay with the table.
on a topic and ask questions.
/ The rest move to other tables.
/ See handout for a reminder.
/ Hosts present what was
discussed.
2
BEGIN THE CONVERSATION
/ 10 minutes.
/ Doodle and discuss.
/ Build up a picture.
/ Focus on what matters.
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37. ✪ GAMBLING
PURPOSE OF GOVERNANCE
UNDERSTAND THE GAMBLE
SMALL BETS
INCREMENTAL INVESTMENTS
The accepted purpose of Capital investments are made Betting the budget on a big- / Business service cash flows.
governance is largely to monitor, in IT projects on the merits of bang release is like betting all / Portfolio performance.
report on, and ensure that the business cases built on our money on hitting a hole-in- / Risk exposure.
specified requirements will be assumptions. When we build a one. Can we do less without / Impending obsolescence.
delivered in the agreed feature and delay validating it doing too little?
/ Cost of delay.
timeframe and within the agreed with customers we’re making a
budget to realize the benefits bet that the feature is “right”.
£
stipulated in the business case.
What if we’re wrong?
£
£
t
And in so doing, to ensure
processes are followed correctly,
Profitable
t
standards are adhered to, and
the software is produced to an
Less inventory; regular releases
t
Series of small investments
acceptable level of quality.
Small bets
Break-even
MORE BENEFICIAL
GOVERANCE
Make small bets based on what
Self-funding
The compelling opportunity for
Increasing inventory
we can afford to lose to prove
governance is to help business
Increasing investment
earlier what’s valuable and Use fast actuals, flash forecasts
Bigger and bigger bet
investors make investments that
what’s not valuable.
and moving averages in a rolling
maximize business
review to inform continuous re-
performance. This requires the Every feature done this way ups evaluation and prioritization.
portfolio to be of business the ante until we’re betting the
services and not IT projects.
budget on a big-bang
release.
COMMON SPREAD BETTING ERRORS
CONTROL DOESN’T GUARANTEE VALUE
Optimizing productivity so that projects aren’t late or over budget doesn’t
6. Out of control.
1. No edge.
address the big risks in these assumptions:
2. No planning.
7. Not in tune with the market.
/ The requirements define the right solution.
3. Wrong bet size.
8. Running before walking.
/ All requirements must be delivered before any value can be realized
4. No risk management.
9. Emotionally unstable.
(all or nothing).
5. Mistiming exits.
10. Not taking responsibility.
/ If all requirements are delivered, the value will be realized.
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38. ✪ VALUE
TIME, COST, SCOPE, QUALITY. FIT FOR PURPOSE. FIT FOR USE
KNOWLEDGE WORKER
VALUE?
The focus is on functionality but how well are the functions performed?
PRODUCTIVITY
The word ‘value’ is used
A commonly held assumption is
extensively. And ambiguously.
that to get the most out of your
investment utilization needs to be
Condition
Condition
Value needs to be defined, at or as near to 100% as possible.
quantified and measured. When Resource
FUNCTION Performance
Idle resources, equipment or
it’s not we’re left in a subjective people are wasted investment.
argument about scope and cost – Effort is often confused with
“delivery should be quicker, p ro g re s s . P ro g re s s i s o f t e n
cheaper; more features should be Design confused with value.
delivered in the same time-frame (Architecture)
for the same cost.”
Source: Competitive Engineering, Tom Gilb Knowledge workers are described
as people who “think for a living”.
Backlogs have become the new How can you tell if someone is
functional specification.
QUALITY CAN ONLY TAKE SO MUCH ABUSE
thinking? How do you measure it?
To meet unrealistic time and cost constraints corners are cut,
especially on those qualities not being measured or easily
KEEP THE PORTFOLIO
Scope
determined.
RELEVANT
Governance must ensure the
Availability
Expected
portfolio stays relevant. We have to
Workload
innovate to stay relevant – to
Resilience
Actual
Compromise Capacity
continue to solve problems that
Quality
people will pay to have solved.
Cost
Time
If the medium and long terms are
Resource
Flexibility
Saving
18 months and 5 years we face a
Vary Scope
problem when the typical employee
tenure is less than this. Not only
does our knowledge become
Usability
Interoperability
obsolete as markets and
technologies change, but
Upgradeability
knowledge literally walks out
Quality
the door.
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39. ✪ PEOPLE
CREATING REALITY COMPLEXITY IS NOISY
Stakeholder
MISMATCHES
Getting a clear view and tangible perception
Governance attempts to measures of what’s happening Time to
market
manage the portfolio day-to-day across a portfolio is hard. Just Team
and balance business investors’ getting the mechanics done, like Adherence
Stakeholders
perceptions and situations in the forecasting, budgeting and to plan
Morale
delivery teams.
staffing, is a full-time job. And
the amount of data generated Objectives
Plans
Requirements
Production
With the best will in the world, with varying quality can get incidents
trying to protect both sides, we overwhelming.
Budget /
burn rate
can end up creating a mismatch.
Defects
When we do so we become Can governance help reduce the Technology
Designs
over-responsible.
noise?
Operating cost
Dependencies
RESPONSIBLE FOR WHAT?
CLASH OR GAPS?
Legacy
/ Responsible for the successful / Trust people to get the job integrations
delivery of the projects in the done.
portfolio?
/ Working software is the primary
OPERATING AT SCALE
/ Answerable to business measure of progress.
An individual can only handle so many interactions. In a portfolio
investors and stakeholders for / The best means of
the actual value realized?
communication is via face-to- that ‘employs’ 10,000 people, we have to limit the number of
/ Accountable to delivery teams face conversations.
people we work with day-to-day. We end up relying on activity
for providing sufficient resources / The best architectures and reports and assurances from individuals representing groups of
to enable them to be designs emerge from self- people, like project managers representing delivery teams.
successful?
organizing teams.
/ Responsible for risk
Scale pushes governance further away from the work.
management and mitigation?
Are agile principles practical,
even applicable for governance?
Can we design ways to
CONTINUOUSLY IMPROVING GOVERNANCE
equitably share the risk and How practical is it to value How can we measure the value and effectiveness of governance?
responsibility between “individuals and interactions over How do we improve it?
governance, stakeholders and processes and tools” when the
delivery teams?
portfolio ‘employs’ 10,000 This is expected of operational and delivery teams. Why are the
people?
same standards not applied to governance?
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40. Energized Work Ltd
HMS President
Victoria Embankment
London EC4Y 0HJ
www.energizedwork.com
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