1952 Leading Projects in Organizations Strategy Overview PDF

~ U NIV E RSITY OF TORONTO g SCH OOL o, CONT I NU I NG STUDI E! 1952 Leading Projects in Organizations Module 7: Strategy Overview ~ U NIV E RSITY OF TORONTO g SCH OOL o, CONT I NU I NG STUDI E!...

~ U NIV E RSITY OF TORONTO g SCH OOL o, CONT I NU I NG STUDI E! 1952 Leading Projects in Organizations Module 7: Strategy Overview ~ U NIV E RSITY OF TORONTO g SCH OOL o, CONT I NU I NG STUDI E! Module 7 - Section 1 Strategy Overview  "Hope without a strategy doesn't generate leadership. Leadership comes when your hope and your optimism are matched with a concrete vision of the future and a way to get there." -Seth Godin if you “hope” something - there is a gap in your plan establish a vision and how to get there  Vision, Mission, Values... and Strategy Belief What do we Values { I stand for? Vision Why are we { doing this? Leadership /- - - - - - -""' Mission How do we { I 1----------- do it? Who? 8trategy/ { What do we _ _ _ _ _ _o_b_ie_c_tiv_e_s_____ need to do? Results Actions/ Projects & Key _f Do it! Performance Indicators (KPls) :}_ How do we know? ~UNIVERSITY OF TORONTO ~ SCIIOO L oo CONTI NU ING STUDIL~ long term strategy is usually over 5years  What is a Strategy? "A strategy is a Framework for making decisions about how you will play the game of business. These decisions, which occur daily throughout the organization , include everything from capital investments to operational priorities to marketing to hiring to sales approaches to branding efforts to how each individual shuffles their To Do list every single morning." ~ UN I VE RSITY OF TORONTO Source: What the Heck Is A Strategy Anyway, Ann Latham, Forbes, October 29, 2017 ~ SCIIOO L oo CONTI NU I NG ST UDIL~  Four Stages of Strategic Thinking Create and Exploit Identify and Capitalize. Revolutionary Change the rules.. Understand - Resourceful Control the game board and Conform Maximize "natural Earn sustained profits opportunities..." white (e.g.: Amazon ). Remedial spaces" (e.g.: Samsung) Ac knowledge Avoid "dumb stuff '.. and Respond More and better of same (e.g.: HSBC) Reactionary Preserve status quo.. Fight to survive (e.g.: IBM) \ , __ _ _ _ _ _ _s_te_a_d_y_P_la_n_ _ _ _ _ _ _ _> ~ UN IVE RSITY OF TORONTO ~ SCIIOO L oo CONTI NU ING STUDIL~ Reactionary - late to the game, responding because you have to Remedial - seeing what others are doing and joining earlier Resourceful - adapting as the times change Revolutionary - the 1st, totally unique  Strategy as Steady Plan Reactionary, Remedial and mostly Resourceful... - Done every year, sometimes every 3-5 years , depending on the organization's predilection to respond to change - An event in executives' calendars to meet and discuss the organization's priorities - Organized with a handful of people in the leadership group to brainstorm on business ideas and priorities - Have an outcome for a strategic plan that will keep the organization focused ~ UN I VE RSITY OF TORONTO ~ SCIIOO L oo CONTI NU I NG ST UDIL~  (®) ,Q Strategy as Revolution (1) Ten principles for evolving strategies: 1. Strategic planning is not strategic: - Conventions should be challenged - Strategizing is not a procedure, it is a quest 2. Strategy making must be subversive: - Identify 10 to 15 of the most fundamental beliefs and then relax them 3. The bottleneck is at the top of the bottle: - Put the customer at the top of the pyramid - Be curious about what is happening 4. Revolutionaries exist in every organization: - Find , engage, and listen to pro-change agents at every level 5. Change is not the project, engagement is: : ft,~6~!5~6JT~§~Y,~;?Eg£J?1~,Jr~;>J},,.C?,!2,~l~!.'!!¥. P,?,L{J~~!~;Sss lb,~1¥96hJ;tri~u~ Issue 0 1. Planning a. Strategic planning should be an exploration of the potential for revolution, not a calendar-driven ritual b. inventions should be challenged, making strategies funnel for generating new ideas c. the process should open the door to the entire organization to contribute and explore its creative potential 2. Subversive a. identify 10 to 15 most fundamental beliefs that incumbents in your industry share b. relax those beliefs and watch what new opportunities present themselves c. rule makers and Rule takers are the industry. rule Breakers redefine the industry, invent the new by challenging the old 3. Bottleneck a. the organizational pyramid is a pyramid of experience. experience is only valuable when the assumption is that the future will look like the past b. put the customer at the top of the pyramid c. challenge Yourself by challenging the industry conventions d. be curious about what is happening beyond the traditional boundaries of your industry 4. Revolutionary  a. find the pro change agents at every level of your organization b. engage and listen to what they have to say c. build an environment of trust for people to share ideas and promote change d. change will drive new ways of doing And strategies will change the status quo 1. Engagement a. all too often changes simply a code word for something unpleasant a restructuring or reorganization b. give people the responsibility of owning the change and control of their own destinies c. engage in dialogue about the future and transform it into a strategy making process  ~ Strategy as Revolution (2) IC-1.2 6. Strategy making must be democratic: - Diversity, co-location, newcomers can bring fresh perspectives 7. Anyone can be a strategic activist: - Activists help to reform 8. Perspective is worth "50 IQ points": - In order to discover opportunities , one must look at the world in a new way, through a new lens 9. Top-down and bottom-up are not the alternatives: - Bring the top and bottom together in the creation of strategy 10. You can't see the end from the beginning: - Build open-ended and inclusive strategies to lessen the challenge of implementations ~ ~ fti~6~!5~6JT~t1~~!~to"f~ Source: Strategy as Revolution, Hamel, Gary, Pearson Harvard Business Review, 1996, July-August Issue 1. Democratic a. The capacity to think creatively about strategy is distributed widely in an Enterprise b. crafting strategy can be an all in effort, to look into potential discontinuities, help Define and elaborate the organization's core competencies, and search for unconventional strategic options c. diversity, location, and newcomers can bring fresh perspectives into strategy 2. Activism a. activists are not Anarchists their goal is not to tear down but reform b. reformists show they care and get involved for the right cause c. they show engagement and Devotion to the organization's Direction d. when senior managers are distracted, when planning has supplanted strategizing, and when more energy is being devoted to protecting the past than to creating the future, activists must step forward 3. Perspective a. View the organization of the bundle of core competencies rather than a collection of business units b. you imagination rather than investment as an organization's capacity to be strategic c. four ways to create New Perspectives for your organization i. identify your industry’s conventions ii. search for new patterns that create opportunities to rewrite  those conventions iii. achieve a deep understanding of your organization's core competencies iv. identify unconventional strategic options to work in your competitive domain 1. Top-down/Bottom-up a. bringing the top and bottom together in the creation of strategy will help bypass the usually painful and laborious process whereby an employee can bring an idea up the chain of command b. senior managers can participate as team members in the search for opportunities c. in the Quest for revolutionary strategies, a senior executive must be more student than teacher 2. Finish Line a. build open-ended and inclusive strategies to lessen the challenge of implementation b. open the floor for employees to buy into the strategy and add their ideas to keep the plan c. keep ideas flowing and encourage the discussion without inhibiting the outcome d. organizations jump to outcomes too fast without understanding what the problem they are trying to solve is  ~ Strategic Planning Tools IC-1.3 1. Porter's Five Forces 2. SWOT 3. PEST Analysis 4. Scenario thinking 5. Blue Ocean 6. Gap Planning 7. Mind Maps 8. Playing to Win 9. VRIO Framework 10.Balanced Scorecard ~ UN I VE RSITY OF TORONTO ~ SCIIOO L oo CONTI NU I NG ST UDIL~ 10 1. Porter's five forces are used to identify and analyze an industry's competitive forces. The five forces are competition, the threat of new entrants to the industry, supplier bargaining power, customer bargaining power, and the ability of customers to find substitutes for the sector's products. 2. SWOT stands for Strengths, Weaknesses, Opportunities, and Threats, and so a SWOT analysis is a technique for assessing these four aspects of your business. 3. PEST analysis stands for political, economic, social, and technological. This type of analysis is used to gauge external factors that could impact the profitability of a company. 4. Identify any favorable and unfavorable scenarios your organization might be in, and find benefits for every situation/scenario. What if we did this? what would that look like? 5. Blue ocean strategy is about doing business where there is no competitor. This is an uncontested Marketplace versus a Marketplace that is already developed or saturated AKA a red ocean 6. A gap analysis is an examination and assessment of your current performance for the purpose of identifying the differences between your current state of business and where you’d like to be. 7. Mind maps are useful tools for brainstorming. They are commonly used by business analysts to identify ideas, during root cause analysis, and with stakeholders to identify requirements. 8. The five sections of "Playing to Win" are: 1) Articulating a winning aspiration;  2) Determining where to play; 3) Knowing how to win in your chosen location; 4) Developing the core capabilities required to win; and 5) Implementing the management systems that support success. 9. VRIO is an initialism for the four question framework asked about a resource or capability to determine its competitive potential: the question of Value, the question of Rarity, the question of Imitability (Ease/Difficulty to Imitate), and the question of Organization (ability to exploit the resource or capability). 10. The Balanced Scorecard Links Performance Measures: How do customers see us? (customer perspective); What must we excel at? (internal perspective); Can we continue to improve and create value? (innovation and learning perspective); How do we look to shareholders? (financial perspective)  Strategy Overview - Discussion Apple's Revolutionary Strategy "At Apple, everything is revolutionary." Simple~ I ____r--- Different Jobs repeatedly emphasized that Apple's mantra would be simplicity. Therefore, Apple's strategy became focused on simplifying its operations. Class Discussion: Which stage of strategic thinking do you think Apple is at now? ~ UN I VE RSITY OF TORONTO ~ SCIIOO L oo CONTI NU I NG ST UDIL~ 11 Q Strategy Overview - Questions IC-3.1 IC-3.2 1. What is an organization strategy? a. A Project b. FrameworK c. A Mission d. A Portfolio 2. What is the highest stage of Strategic Thinking? a. Revolutionar b. Resourceful c. Resolutionary d. Reactionary ~ UN I VE RSITY OF TORONTO ~ SCIIOO L oo CONTI NU I NG ST UDIL~ 12 ~ U NIV E RSITY OF TORONTO g SCH OOL o, CONT I NU I NG STUDI E! Module 7 - Section 2 Strategy Implementation  Why Strategy is Important? It outlines a clear path for your organization: - A strategy clearly defines the best route for your organisation to take (months or years) It brings a sense of focus: - It will help everyone focus efforts on the right goals and targets It improves business self awareness: - Identify strengths and weaknesses and where the organization stands in the market, both individually and related to competitors It gives your employees something to work towards: - Have a definitive mission and clear goals for staff so they have a sense of purpose ~ UN I VE RSITY OF TORONTO ~ SCIIOO L oo CONTI NU I NG ST UDIL~ 14  Pitfalls of a Strategic Plan It takes too long to develop: - The process of building a Strategic Plan tends to be too long (months) It looks like a sealed contract, and nothing can be changed: - A document that took forever to develop and cannot be easily changed by ad hoc events It is too high level , and nobody understands how to execute: - Usually, these plans are built at the highest level by executives and senior consultants , sometimes lacking the applicability knowledge It focuses on long term and ignores the short-term focus: - Long term forecasts are much less predictable than short term forecasts ~ UN I VE RSITY OF TORONTO ~ SCIIOO L oo CONTI NU I NG ST UDIL~ 15  New Challenge for Organizations - Complexity Companies have been building "ecosystems" that have become unmanageable: - Assuming "the future will be more or less like the present" no longer exists, therefore the ritual of strategic planning is more hindrance than help Henry Mintzberg, author of The Rise and Fall of Strategic Planning, best summarizes current strategic planning approaches: - "Setting oneself on a predetermined course in unknown waters is the perfect way to sail into an iceberg" ~ UN I VE RSITY OF TORONTO ~ SCIIOO L oo CONTI NU I NG ST UDIL~ 16  Evolution of Business II Around 1900 1990s Taylorism - predefined, New Economy - the worker monotonous and as a creative subject and repetitive workflows optimization object..... Ill"'" Late 1970s Today Post-Fordism - Digital Transformation - computers and complete flexibility, IT emerge mobility and constant 11 innovation ~ UN I VE RSITY OF TORONTO ~ SCIIOO L oo CONTI NU I NG ST UDIL~ 17  ~ Start with Why, BUT then Know How IC-1.4 A belief, maybe a Vision that The { something can be possible The Golden Circle Purpose The actions to take to The Plan { make the belief tangible The execution of the action; The { where the tangible 'stuff Execution happens The Purpose needs a plan in order to be executed An implementation plan represents all the necessary means through which results will be achieved ~ ~ fti~6~!5~6JT~t1~~!~to"f~ Source: Start with v\lhy: How Great Leaders Inspire Everyone to Take Action Chapter 3 The Golden Circle, by Simon Sinek, Penguin Group,18 1. Why a. The WHY types focus on the future. they are Visionaries and see things other people's don't 2. How a. most people in the world are HOW types. b. they can do a plan very well and shape the way things should be implemented c. the WHY types need the HOW types to make their dreams come true 3. What a. the WHAT types are considered the workers. it's where the majority of employees sent aka the doers. but it's the type that requires the most skill b. the WHAT works to make the WHY possible in the end c. all the products and services that the organization cells, all the marketing and advertising, all the contact with the outside world, and the client is represented by the WHAT ~ Strategy Work in the Digital Era - Exercise IC-2.1 Degree of people impact - The primary concern of the executives is how to handle the people-related challenges of implementing the strategy: HIGH - Number of people affected r+ - - Scope of the impact Degree of emotional impact ~ TRANSFORMATIVE r:P DISCOVERY Degree of uncertainty of the task: □DD o - Technology uncertainty OPERATIONAL EXPERIMENTING - Market uncertainty EXCELLENCE - Capability-related uncertainty LOW ----------- v:JW DEGREE OF UNCERTAINTIES HIGH ~ UNIVERSITY OF TORONTO ~ SCIIOOL OI CONTINUI NG STUDIL~ Source· Brighlline Initiative; WWW brjghflinit Q[Q 19  1. Discovery Focused Strategy Starts with the premise that something out there will change the business model, product portfolio, or the way the work is performed It has a large degree of uncertainty Evaluates and follows trends to get to results It is hands-on work, in the form of workshops and show- and-tell events, that generate discussions and more work For example: - Blockchain technology; Artificial Intelligence (Al) 20 Top right - high ppl, high uncertainty Blue ocean tool  2. Experimentation Focused Strategy Represented usually by ideas emerging from the Discovery stage Experiments can take different shapes: - Product use case scenarios with possible customers in a number of workshops - Group of companies teaming up to sponsor proof-of-concept implementations - New processes and technologies being tried internally for 100 days - Companies forming internal start-ups to champion new solutions to potential clients For example: - Digital Factory at Scotiabank ~ UNIVERSITY OF TORONTO ~ SCIIOOL OI CONTINUI NG ST UDIL~ Source. Brighlline Initiative; httos /fwww brigh)line qrg 21 Low right - high uncertainty, low people  3. Transformation Focused Strategy Includes classical activities of organizational transformation, change management, and portfolio management Uncertainty is now relatively low Highest impact to people Various implementation prototypes can be run in parallel to develop specific best practices and technology solutions For example: - ING Direct Europe 22 Top left - low uncertainty, high ppl  4. Operational Excellence Focused Strategy Enhancing day-to-day practices one step at the time, to allow for introduction of new technology Top questions to ask: - What technology for which product or market? - What is our implementation roadmap? - What are our criteria to prioritize activities? For example: - Telus ~ UNIVERSITY OF TORONTO ~ SCIIOOL OI CONTINUI NG ST UDIL~ Source. Brighlline Initiative; httos /fwww brigh)line qrg 23 Bottom left - low uncertainty and low ppl Conclusion HIGH An organization does not Ii TRANSFORMATION DISCOVERY move through these four types of strategy work - Change management Latest trends pick the best ONE People impact High uncertainty t; The study suggests that ~ 1---------; 1---------; ~ -L-ow_u_nc_ert_ai_ nty_ _ _ _ _i_nn_ov_ati_on_ _ the most successful organizations are those...= OPERATIONAL EXCELLENCE EXPERIMENTATION that had learned to...== c::, Ongoing improvement Proof of concept{s) execute activities in all four quadrants, all the time, and had the robust processes to transition from one quadrant to the I Efficiency Stabilization Low--- DEGREE OF UNCERTAINTIES - - -.... Trials Start-ups other ~ ~ ~ti~6~!5~6~T~t1~~~~~0"f~ Source· Brighlline Initiative; www brjghflinit Q[Q 24 Q Strategy Implementation - Questions ~ IC-3.3 IC-3.4 1. What is the nature of today's new challenges for Organizations? a. Complications b. Collocation c. Com lexity d. Compliance 2. Which strategy-focused approaches are recommended in the Digital Era? b. Exploration c. Standardization d. Status-quo e. Transformation ~ UN I VE RSITY OF TORONTO ~ SCIIOO L oo CONTI NU I NG ST UDIL~ 30 ~ U NIV E RSITY OF TORONTO g SCH OOL o, CONT I NU I NG STUDI E! Module 7 - Section 3 Projects Supporting Strategy II~~ Projects and Strategies - Example Strategy 1: Improve Strategy 2: Strategy N: staff satisfaction Industry leader.2 0 t0 Program: @Work l[ Program: A l[ Program: D 0. Project: 20 th Anniversary [ Program: B l( Project: E Program: Improve recognition [ Project: C l[ Project: F Projects, Programs, and Portfolios are a result of Strategic Implementation approaches defined by an organization ~ UN I VE RSITY OF TORONTO ~ SCIIOO L oo CONTI NU I NG ST UDIL~ 32 Proiects that Align with Strategy Vision Strategy Project/ Product Projects align with strategy; strategy aligns with vision Alignment with strategy can be a significant measurement of project success This metric can be defined and tracked through the value the project creates towards the organization's strategy ~ ~ fti~6~!S~6JT~t 1~~!~to"f~ Source: Start with Why: How Great Leaders lnsp,re Everyone to Take Action - Chapter 3 - The Golden Circle, Simon Sinek, Penguin Group 33  The Proiect as a Support of Strategy Projects are the main resource for strategy execution Projects translate strategies into executable activities Projects can refine and/or replace strategies depending on the results Projects must align with products and portfolios in order to achieve results aligned with strategy The portfolio ecosystem will identify all dependencies, impacts, and associations a project can have with the rest of the organization, to facilitate direct alignment to strategy ~ UN I VE RSITY OF TORONTO ~ SCIIOO L oo CONTI NU I NG ST UDIL~ 29  Products Have Benefits, Proiects Enable Them Statistically, organizations Why? Here are some that align benefits to reasons: products instead of - Benefit measurements are projects are more easier to link to product successful in delivering on features - Projects are short lived; their strategy they finish before benefit Projects are only set up as realization is known when a mechanism to enable the product is in operation those benefits mode - Strategies are built with products/ features in mind , not projects ~ UN I VE RSITY OF TORONTO ~ SCIIOO L oo CONTI NU I NG ST UDIL~ 30  The Value of the Product Mindset Project Mindset Product Mindset Success upfront, Success continuously defined inside the driven by business triple constraint: metrics outside the triple - Scope constraint: - Time - User adoption/ - Cost retention - Revenue Time - Cost savings per Leads to less business involvement, feature more tas k management Leads to less waste, more creativity and more releases Which Mindset aligns better with Strategy? ~ UNIVERSITY OF TORONTO Source· The Professional Product Owner: Leveragrng Scrum as a Compet1t1ve Advantage, by Don McGreal and Ralph Jocham: First Edition ~ SCIIOO L oo CONTI NU I NG ST UDIL~ 36 Q Proiect Selection - Example JKLM has defined its Vision, Mission and Strategic Objectives: - Vision: "Every person has access to medical services they need" - Mission: "Use technology to improve the delivery of exceptional medical services" - Strategic objectives: Improve the staff satisfaction in the next 2 years Be recognized as the industry leader in project delivery by every client Introduce two new products in the next 5 years that will represent 10% of JKLM revenues Imp rove the project delivery efficiency by 10% each year The Apollo project has the following benefits: 1. Project Apollo requires the team to develop the Z-wave product which JKLM will own 2. The Project Apollo team is forecasting $1 ,000,000 profit from the project 3. Saturn will be a great reference for JKLM ~-uN,vstloMvndOrJhe Apollo benefits align to the strategic objectives? ~ SCIIOO L oo CONTI NU ING ST UDIL~ 32  Proiect Selection - Exercise IC-2.2 Decide for each idea if it reflects either a project or product benefit based on reference to The Value of Product Mindset (slide 36) Idea Benefit MitM¥iM 1. Improve staff satisfaction in the Build motivated and transparent Project next 2 years teams 2. Be recognized as the industry Acquire consistently more clients Product leader in project delivery by every and deliver more value client 3. Introduce two new products in the Increase revenues of $25,000/ Product next 5 years, representing 10% of year JKLM revenues 4. Improve project delivery efficiency Deliver consistently more features Project by 10% each year each year ~ UN IVE RSITY OF TORONTO ~ SCIIOO L oo CONTI NU ING STUDIL~ 33 Q Proiects and Strategy - Questions IC-3.5 IC-3.6 1. What is in the center of the Golden Circle? a. What b. How C. Why d. Who 2. Why does the product mindset align better with strategy? a. It leads to value in the work delivered by the project team b. It leads to less waste, more creativity c. It leads to more task management d. It leads to business knowing what they want ~ UN I VE RSITY OF TORONTO ~ SCIIOO L oo CONTI NU I NG ST UDIL~ 34 ~ U NIV E RSITY OF TORONTO g SCH OOL o, CONT I NU I NG STUDI E!  Why Do We Need Business Cases? A business case will consider the value a project will deliver and will help: - Reduce waste on projects that do not help organizations achieve their objectives - Prioritize initiatives based on the "value" they deliver to the client; this will prevent the "loudest voice" approach where the loudest managers get what they want - Set expectations on what projects will deliver to clients right from the start, minimizing disappointment when projects are delivered - Identify more benefits as the project progresses , giving more reasons for projects to be done ~UNIVERSITY OF TORONTO Source: https:fJwww pmi orgQeamlogOlbcaQffneed-bt1siness-case-6ZJQ ~ SCIIOO L oo CONTI NU I NG ST UDIL~ 36 Justification of the project Business cases are given to you, you turn into a Project charter  Business Case Overview Business cases happen in the Concept and sometimes Initiation Phases of each project Project Manager, Project Sponsor, and some team members are involved in the business case development Understanding the context of the problem to be solved and the environment is key There are three major components of a business case: - Costs - Benefits - Risks Business cases can be: 'Traditional' and 'Lean' ~ UN I VE RSITY OF TORONTO ~ SCIIOO L oo CONTI NU I NG ST UDIL~ 37 A 'Traditional' Business Case - Government Y of Canada (1} The Government of Canada has a standard business case model that includes 3 interdependent phases Phase 1: Every business case model requires a strategic context: - Strategic Environment - Strategic Fit - Detailed Description of the Business Need - Scope ~ UN I VE RSITY OF TORONTO ~ SCIIOO L oo CONTI NU I NG ST UDIL~ 38 A_ 'Traditional' Business Case - Government of Canada (2) Y Phase 2: Analysis and recommendation includes all the steps required to come to a recommendation: Preliminary options analysis: Evaluation criteria List possible options Screening of options Rationale for discounted and viable options Viable options: Alignment Benchmark Costs Policy and standard considerations Cost-benefit analysis Advantages and disadvantages Implementation and capacity Risks Justification and recommendations: Comparison summary Preferred option ~ UN I VE RSITY OF TORONTO ~ SCIIOO L oo CONTI NU I NG ST UDIL~ 39 A 'Traditional' Business Case - Government Y of Canada (3) Phase 3: Management and capacity includes all factors that will help with the management of the investment: - Managing the investment: Governance and oversight Project management strategy Outcome management strategy Risk management strategy Change management strategy Performance measurement strategy ~ UN I VE RSITY OF TORONTO ~ SCIIOO L oo CONTI NU I NG ST UDIL~ 40  'Lean' Business Case The lean or lightweight business case came from the need to: - Simplify the initial work of analyzing and defining - Oversimplifying the rationale for a project - Starting the work as soon as possible There are five principles of lean business cases: - Keep the business case strategic - Distinguish fact from hypotheses - Make lots of little bets - Focus on outcomes not delivery outputs - Inspect and adapt through evidence ~ UN I VE RSITY OF TORONTO ~ SCIIOO L oo CONTI NU I NG ST UDIL~ 41 Enough to get you going Flexible as you get feedback 'Lean' Business Case in SAFe The SAFe (Scaled Agile Framework) approach to budgeting provides financial control with less overhead and friction Funding value streams, not projects: - Better visibility to large business/technical initiatives through portfolio views - Self-organization allows moving people to work without escalation - Empowers local content authority Guiding investments by horizon: - Identify horizons of growth* based on the value they produce - Provide a structure for organizations to manage investments in growth without neglecting performance in the present - Similar to McKinsey's horizon model , it helps audiences make informed decisions (Evaluating , Emerging , Investing , Extracting , Retiring) Applying participatory budgeting: - Helps prioritize the right initiatives through budget pools that are larger - Can fund initiatives which cannot fund themselves ; ~~~~~JT~~~~;fQ!.0 lbs,t£Wc),.b,aj~,,1h,~g~g~f~Jis;M~.Pntim.i?.,~ J \§h~ ¥!lgi,~E;l~dWhrte ,a j.. 47 C Scaled Agile Inc  'Lean' Business Case - Align to Value Streams Value streams are the steps organizations use to build solutions that provide continuous flow of value to clients Lean business cases and budget approvals align with portfolios Each portfolio includes various value streams A portfolio can have multiple value streams that are linked together to provide the maximum value to clients Organizing around value streams offers substantial benefits to organizations: faster learning, shorter time-to-market, higher quality, higher productivity, leaner budgeting mechanisms ~ UN I VE RSITY OF TORONTO ~ SCIIOO L oo CONTI NU I NG ST UDIL~ 48 Business Case - Lean Canvas Tool Problem Solution Unique Value Unfair Customer List you top 1-3 Outline a possible problems. solution for each Proposition Advantage Segments Single, clear Something that List your target problem. compelling message cannot easily be customers and users. that states why you are bought or copied. different and worth paying attention. Key Metrics Channels List the key numbers List your path to that tell you how your High- customers (inbound Early Adaptors Existing business is doing. or outbound). List the characteristics Alternatives level of your ideal List how these problems are solved Concept customers. today. List your X and Y analogy, e.g. YouTube = Flickr for videos. Cost Structure Revenue Streams List your fixed and variable costs I List your sources of revenue !1 UNIVERSITY OF TOR.ONTO Source Leanstack, wwwle,Q§@Ckcorot1tincari1ot! ~ SCI IOOL < CONT I NUING STUDIL~ Lean Canvas 1s adapted from The Business Canvas Model Canvas and 1s hcensed under the CreatNe Commons Attnbution-Share l.Ive 49 3.0 Un-ported Ucense. II~~ 'Lean' Business Case - Example Problem Solution Unique Value Unfair Customer Cost of office space Equip staff with is increasing company laptops Proposition Advantage Segments JKLM is in the top A core group of ~50 Client project Staff retention is and convert office 20 employers in talented staff teams low due to lack of space to hoteling Canada Strong executive Administration flexibility support Finance Computer virus and IT attacks HR and Legal Executive Key Metrics Channels Office space cost High- Senior Retention rate management Early Adaptors Existing level Internal website Project that is virtual Alternative Concept and emails and struggling with Staff can work team s anywhere, anytime communications Staff use personal latJtO/JS Cost Structure Revenue Streams Leasehold improvements and new furniture Reduced rental costs Moving and furniture deposition Lower hiring and orientation costs Laptops and software Project team salaries _. Training of staff ~ ~ - ·- v , SCIIOOL oo CONTINUING STUD I L~ 45 t IC-2.3 'Lean' Business Case - Exercise II[~ @work You are helping Valerie, the project manager for the Training project for the @Work program You and Valerie have just seen the lean business case canvas, and thought you would try to build one for the Training project Valerie has provided the following information for you: There is no revenue for the project The key metrics are for all the JKLM staff moving to take and complete the course You have to purchase software to develop and deliver the course ~ UN I VE RSITY OF TORONTO ~ SCIIOO L oo CONTI NU I NG ST UDIL~ 46 (®) IIJI< -@work ~ 'Lean' Business Case - Template LM IC-2.3 Problem Solution Unique Value Unfair Customer Proposition Advantage Segments Key Metrics Channels Early Adaptors Existing High- Alternative level s Concept Cost Structure Revenue Streams ~ UN I VE RSITY OF TORONTO ~ SCIIOO L oo CONTI NU I NG ST UDIL~ 47 Q Business Case - Questions IC-3.7 IC-3.8 1. Why is a business case conducted? a. Diminish return on investment (ROI) b. Prioritize initiatives based on value they produce c. Improve team efficiency d. Make the Project Manager an expert in their work 2. In the Scaled Agile Framework (SAFe), what are Lean business cases aligned to? a. Project streams b. Work streams c. Value streams d. Program streams ~ UN I VE RSITY OF TORONTO ~ SCIIOO L oo CONTI NU I NG ST UDIL~ 48