decision

1





leadership practices
applications
collaboration
decision making
step up, step back
considering risk
problem solving
culture of trust
2

decision making
3
what do we do?
when do we do it?
when do we decide?
4

leaders must
5
deliver the right product

• Build Trust?

6

Never or Rarely Used 64
Always or Often Used 20
Sometimes 16
Rarely 19
Often 13
Never 45
Always 7
Standish Group Study, reported by CEO Jim
Johnson, XP2002
7

• Legacy System
• Name
• Phone
• Address

Replacement System Name Address
Phone
whats the value of this
required change?
8

and
9
consistently deliver business value
10

• deliver
• value?
• whats that?

11

Defining Value
calculation
Value Calculation
Benefits
12

Valuing the Inputs
calculation
Value Calculation
Guess
13

we need some help !
14

Business Value Model
Purpose
Considerations
Costs and Benefits
15

• where
• do
• we
• start?

16

Mission
Vision
Values
Strategic Intent Strategy Purpose
Strategic
Long-Range Goals
Start Here
SWOT / 5Q
Annual Objectives
Action Plans (what, who, when)
Tactical
Individual Business Objectives
17

Purpose Based Alignment Model
High
Differentiate
Partner?
Market Differentiating
Who cares?
Parity
Low
High
Low
Mission Critical
18

Purpose Based Alignment Model
High
Innovate, Create
Do we take this on?
Market Differentiating
Achieve and Maintain Parity, Mimic, Simplify
Minimize or Eliminate
Low
High
Low
Mission Critical
19

• How about an example?

financial documentation system
20
3,000 functions!

21

Purpose Based Alignment Model
High
What goes here?
Anything here?
Market Differentiating
Anything here?
Most are usually here.
Low
High
Low
Mission Critical
22
350 differentiators

23
focused on
differentiators
simplified the rest
24

• results
• better product
• cut time by 50
• 60 cost reduction

25

Strategy?
High
Differentiate
Partner?
Market Differentiating
Who cares?
Parity
Low
High
Low
Mission Critical
26
strategy sustainable competitive
advantage

• Sustainable
• Competitive advantage

27

• the 5 questions
• 1. Whom do we serve and what do they want and
  need most?
• 2. What do we provide to help them?
• 3. What is the best way to provide this?
• 4. How do we know we are succeeding?
• 5. How should we organize to deliver?

28
the billboard test
29
You Think My Products Are Good? You Should See
My Chart of Accounts!
30
Order new pages by 2pm and get them tomorrow!
31
We invest more in our WMS than we do in product
development
32
To be the low cost airline.
- Southwest Airlines
33
Will this help us be the low cost
airline? -
Southwest Airlines
34
strategy creates decision filters

35

• decision filters
• make daily decisions
• schedule projects
• what to develop

36

• cascade
• decision
• filters
• throughout
• organization

37

• How about another example?

single purchase, multiple credit cards
38

High
CustomerService
Market Differentiating
Low
High
Low
Mission Critical
39
requires customization
40

High
Differentiate
Market Differentiating
OR
Parity
Low
High
Low
Mission Critical
41

High
Differentiate
Market Differentiating
Low
High
Low
Mission Critical
42
pass the billboard test?
43
A fist full of credit cards
44
Give Me Your Tired, Your Poor, Your Maxed Out
Credit Cards
45
treat exceptions as exceptions
46

caveats
47
Managing Risks

• List Three Professional Options

common sense not common practice
48
parity is mission critical
49
purpose is not priority
50
Differentiating changes over
time
51

• Leadership Influence

innovate!
52
Start Up

• Exercise Pick a project.

Practicum Pick an objective, a brand, or a
project.
53

What is the purpose?
High
Differentiate
Partner?
Market Differentiating
Who cares?
Parity
Low
High
Low
Mission Critical
54
Whats On Your Billboard?
55

• your
• decision
• filter?

56

do you have any exceptions?
57

Business Value Model
Purpose
58
other considerations
?
59

• Collaboration Model

flexibility
60

dependencies

• Collaboration Model

61
time to market
62

risks
63

• team size
• mission criticality
• team location
• team capacity
• domain knowledge gaps
• dependencies
• technical complexity

complexity

64

• uncertainty
• market
• uncertainty
• technical uncertainty
• project duration
• dependents

65

High
Bulls
Colts

• Simple, young projects

• Agility to handle uncertainty

• Need agility

• Tight Teams

• Process definition to cope with complexity

Uncertainty
Cows
Sheep

• Complex
• Mature market

• Laissez faire

• Well behaved

• Need defined interfaces

Low
Low
High
Complexity
66

Complexity Assessment
Attribute Score
Team Size
Mission Critical
Geographical Dispersion
Team Maturity
Domain Knowledge
Dependencies
67

Complexity Assessment
68

Uncertainty Assessment
Attribute Score
Market
Technical
Dependencies / Scope Flexibility
Duration
69

Uncertainty Assessment
70

Colt Project
Bull Program
Sheep Project
Cow Project
Remember Loose Coupling and Strong Cohesion
71

High
Bulls
Colts

• Trader Workstation

• Swiss Electronic Stock Exchange

Uncertainty
Cows
Sheep

• Matcher

• Lights Out

Low
Low
High
Complexity
72

portfolio management

Uncertainty
Complexity
73

• team size and experience
• market uncertainty
• domain knowledge
• team capacity
• technical uncertainty

74

your considerations?
75
prioritize
76

Business Value Model
Purpose
Considerations
77
costs and benefits ?
78

Business Value Model
Purpose
Considerations
Costs and Benefits
79
its a conversation
80

resolve differences

81
group chunks high medium - low
82
What are your largest value chunks?
83

what can you defer?
84
what do you need to add to make a better
decision?

85
build a chunk
86
at the end of the chunk

87

• did
• the value inputs change?
  

88
adjust BV model run the chunk
features thru model
89

now you can ask
90

• Do we have enough business value to go to market?
  

91

• Should we continue?

92
What goes in the next cycle or chunk?
93
run candidate features thru
model re- prioritize
94

• value Model

STOP
build highest value chunks
No
Will we ever have enough value to deploy?
prioritized chunks
Adjust value model if inputs have changed
objectives / projects / ideas
Value Model
Do we have enough value to deploy?
Yes
deferred
95

summary
96

Business Value Model
Purpose
Considerations
Costs and Benefits
97
its a collaboration
98
what do we do?
when do we do it?
when do we decide?
99