SAFe City, Agile in the City Bristol

@MartinBurnsSCO
SAFe CITY
Martin Burns & Mike Carew
Senior Principal Transformation Consultants
IMPLEMENTING COST OF DELAY EFFECTIVELY IN A GROUP SETTING

Copyright © 2017 CA. All rights reserved.
@MartinBurnsSCO
Workshop Purpose
To understand and explore
rational, economics-based prioritisation
through explanation, discussion and
dramatised simulation,
so that we are prepared to use it
in our own environment.

@MartinBurnsSCO
Fast brainstorm:
What is your experience of prioritisation?
What aspects of it do you enjoy?
What don’t you like about it?
What’s the most challenging thing about it?
7

How do you
prioritise?
HiPPO
Highest Paid
Person’s Opinion
8
Photo: Wikipedia.org
MY thing is
A MUST DO
MY thing is
THE MOST
IMPORTANT

@MartinBurnsSCO
What Problem are you trying to solve?
Why do you prioritise?
What outcomes are you aiming for?
Discuss with your neighbour and report back
Timebox: 3 minutes.

@MartinBurnsSCO
Purpose of Prioritisation
To achieve the
BEST OUTCOME
from a
CAPACITY CONSTRAINED SYSTEM
10

@MartinBurnsSCO
Take an Economic View
1. While you may ignore
economics, it won’t ignore you
2. Sequence Jobs for Maximum
Benefit
3. If you only quantify one thing,
quantify the Cost of Delay
11
Principles of Product Development Flow,
Don Reinertsen

@MartinBurnsSCO
Cost of Delay:
Single Big Batch –v- Incremental Small Batches
12
Additional Value Realised by
Incremental Delivery,
AKA
Cost of Delay of Single Batch
Delivery
ValueRealised
Time

@MartinBurnsSCO
Don-Enhanced Purpose of Prioritisation
To achieve the
BEST ECONOMIC OUTCOME
from a
CAPACITY CONSTRAINED SYSTEM
using JOB SEQUENCING
to MINIMISE COST OF DELAY
13

@MartinBurnsSCO
Priority Choice: Equal Duration
Which order would you deliver these in to achieve
best outcome (minimum Cost of Delay)?
14
Feature Duration Value
A 10 months $100
B 10 months $1 000
C 10 months $1 000 000

@MartinBurnsSCO
Priority Choice: Equal Value
15
A 1 month $10 000
B 6 months $10 000
C 12 months $10 000

@MartinBurnsSCO
Priority Choice: Mixed Value, Mixed Duration
16
A 1 month $5 000
B 3 months $20 000
C 6 months $30 000

@MartinBurnsSCO
Weighted Shortest Job First
Best economic outcome is achieved by sequencing jobs in
order of descending WSJF, calculated as:
Estimate each factor in turn, using relative estimating in Story Point style:
1. Find the smallest in the set of jobs for that factor, call it a 1.
2. Score all other jobs relative to that, using the standard Fibonacci-ish set
Note:
The actual numbers do not mean anything in themselves, including the result. Only the resulting order.
17
More at: http://www.scaledagileframework.com/wsjf/
WSJF =
Business
Value
+
Time
Sensitivity
Value
+
Risk Reduction |
Opportunity
Enablement Value
Duration (Proxied by Size)

@MartinBurnsSCO
WSJF Subfactors
Business Value
(make, save, protect money)
Timing Criticality Opportunity Enablement/
Risk Reduction
• Growth in revenue through more
effective sales
• Upsell/Cross Sell
• Cross business strategy
• Process simplification
• Ease of registration
• Profitable revenue growth
• Share of wallet
• ARPU
• Cost savings
• Unit cost
• Cost to support
• Cost to serve
• Shift to low cost channels
• Customer satisfaction
• NPS
• Growth of volume
• User registrations
• First time purchases
• Seasonality
• Peak period sales
• Seasonal features
• Dependencies
• Technical
• Co-ordination with offline
activities (marketing/ training)
• System Driven
• Legacy system retirement
• Investment priorities
• Financial (Q end) targets
• Funding availability
• Early benefits
• Customer segment growth
• Competitive position
• Barrier to entry of competitors
• First to market
• Being behind market
• Acquisition integration
• Customer Satisfaction
• Obvious pain points
• Brand Enhancement
• Learning about our customers
• Partner relationships
• Simple Integration
• Future Flexibility
• Speed to Market
• Customer retention
• Reduced Churn Risk
• Ease of Use
• Scalability
• Single Platform for customers
• Error reduction in Content Management
• Fewer returns
• Market
• Market Share
• Entry to new markets
• Ability to change market
• Compelling offer to new subsegment
• Technical Risk
• Faster defect feedback loops
18

@MartinBurnsSCO
SAFe City Simulation
• Take each factor in turn
• Size-order all the cards into rough
affinity groups in that factor, from
Extra Small to XXL.
• Assign one of the following points
value to all members of each
group, starting with the smallest:
– 1, 2, 3, 5, 8, 13, 20
19

@MartinBurnsSCO
Takeaways 1/4
What key events
happened here?
• What do you remember?
• What words and phrases do
you remember?
• What were some key
ideas & images?
• What information stood out?
Silent writing on stickies
Timebox: 1 minute.
20

@MartinBurnsSCO
Takeaways 2/4
What’s your reflection on
these?
• What are your initial responses?
• How did you feel at the end?
• Where were you surprised?
• Where did you feel most excited?
• Where did you turn off?
Timebox: 1 minute.
Discuss with your neighbour
Timebox: 3 minutes.
21

@MartinBurnsSCO
Takeaways 3/4
What’s your
changed understanding?
• What is this trying to achieve?
• How did this challenge or affirm
the way we work?
Discuss with your neighbour
Timebox: 3 minutes.
Discuss with your table
Timebox: 5 minutes.
22

@MartinBurnsSCO
Takeaways 4/4
What will you do differently
where you work?
• What can we do about this?
• What would be our first step?
• Who would work on it?
• Whose work would be most effected?
• Who would we need to tell?
Timebox: 2 minutes.
Discuss with your table
Timebox: 5 minutes.
23

Senior Principal Transformation Consultants
martin.burns@ca.com michael.carew@ca.com
Martin Burns & Mike Carew
@ca_agile
Slideshare.net/CAInc
Linkedin.com/company/ca-technologies
ca.com

@MartinBurnsSCO
Thank You.
Download a paper on some alternative
CoD based prioritisation schemes, co-
written with
Don Reinertsen, Troy Magennis, Joshua
Arnold, Tony Grout & Chris Matts at
http://everydaylean.info/downloads

SAFe City, Agile in the City Bristol

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