Agile Portfolio Management: A Guide to the Methodology and Its Successful Implementation “Knowledge That Sets You Apart”

Cover
Half Title
Title Page
Copyright Page
Table of Contents
Preface
Acknowledgements
About the Author
How This Book Is Organized
Chapter 1 “Financial” Project Portfolio Management
	1.1 The Short History of Project Portfolio Management (PPM)
	1.2 The Definitions of Project Portfolio Management (PPM)
	1.3 The Main Goals of Project Portfolio Management (PPM)
	1.4 The New Challenges for Project Portfolio Management
	1.5 The Main Challenges of Project Portfolio Management
	1.6 The Global Standards Approach to Project Portfolio Management
	1.7 The Project Portfolio Management Life-Cycle Model
		1.7.1 Life Cycle: Initiation
		1.7.2 Essentials Techniques for Project Portfolio Selection
		1.7.3 The Basics of Financial Models
		1.7.4 Present Value (PV)
		1.7.5 Net Present Value (NPV)
		1.7.6 Future Value (FV)
		1.7.7 Return on Investment (ROI)
		1.7.8 Internal Rate of Return (IRR)
		1.7.9 Payback Period (PP)
		1.7.10 Discounted Cash Flow (DCF)
		1.7.11 Benefit–Cost Ratio (BCR)
		1.7.12 Profitability Index (PI)
		1.7.13 Pitfalls to Look Out for in the Project Portfolio Selection Process
		1.7.14 Life Cycle: Planning
		1.7.15 Initial Assessment or Triage
		1.7.16 Essentials Techniques for the Initial Assessment or Triage
		1.7.17 Project Portfolio Prioritization
		1.7.18 Essential Techniques for Project Portfolio Prioritization
		1.7.19 Project Portfolio Sequencing
		1.7.20 Project Portfolio Optimization/Risk-Balancing
		1.7.21 Life Cycle: Executing, Monitoring, and Controlling
		1.7.22 Portfolio Strategic Management
		1.7.23 Portfolio Governance
		1.7.24 Portfolio Capacity and Capability Management
		1.7.25 Brief Introduction to Earned Value Management
		1.7.26 Portfolio Value (and Benefits) Management
		1.7.27 Project Portfolio Stakeholders Engagement
		1.7.28 Project Portfolio Risk (and Issue) Management
Chapter 2 The Reality of Agile@Scale
	2.1 Understanding Complexity Theory and System Thinking
		2.1.1 Core Concepts of Complexity Theory and System Thinking
		2.1.2 The Stacey Matrix
		2.1.3 Cynefin Framework
	2.2 Adaptability vs. Predictability
		2.2.1 Continuous Flow Framework
	2.3 Lean Thinking and Lean Portfolio Management
		2.3.1 Core Concepts of Lean Thinking and Lean Portfolio Management
		2.3.2 Lean Philosophy of Management – The Toyota Way
			2.3.2.1 Long-Term Philosophy
			2.3.2.2 The Right Process Will Produce the Right Results
			2.3.2.3 Add Value to the Organization by Developing Your People
			2.3.2.4 Continuously Solving Root Problems Drives Organizational Learning
		2.3.3 The Five Principles of Lean Thinking by Womach
		2.3.4 The 14 Principles of Lean Thinking by Larman
		2.3.5 The Eight Principles of “Flow” by Reinertsen
		2.3.6 The Seven Principles of Lean Software Development by Poppendiecks
		2.3.7 Lean Tool – Value-Stream Mapping
		2.3.8 Shalloway’s Lean Concepts
		2.3.9 Lean Portfolio Management (LPM) Principles from SAFe
		2.3.10 The Lean Startup
	2.4 Continuous Planning
	2.5 From Silos to Collaboration and Increased Interaction
		2.5.1 Autonomy and Improvisation
	2.6 Managing for Innovation (Culture and Work Environment)
	2.7 Transparency
		2.7.1 Final Thoughts
Chapter 3 Agile Portfolio Management (APM)
	3.1 Agile Principles
		3.1.1 Core Concepts of Agile Principles
		3.1.2 Agile Manifesto Values and Principles
		3.1.3 Individuals and Interactions over Processes and Tools
		3.1.4 Working Software over Comprehensive Documentation
		3.1.5 Customer Collaboration over Contract Negotiation
		3.1.6 Responding to Changeover Following a Plan
		3.1.7 The Twelve Principles of Agile Software
		3.1.8 Declaration of Interdependence for Modern Management
	3.2 Explaining Roles and Responsibilities
	3.3 Agile Levels of Governance
		3.3.1 Cycles of Control
	3.4 The Portfolio Kanban aka Agile Portfolio Planning Kanban Wall
		3.4.1 Core Concepts of the Portfolio Kanban
		3.4.2 Set Up Your Portfolio Tracking Kanban Board/Walls
	3.5 Ongoing Agile Portfolio Ceremonies
	3.6 Portfolio Artefacts
	3.7 Agile Requirements Levels (Scope Decomposition)
		3.7.1 Track the Flows of Initiatives and Epics
		3.7.2 How to Know When Initiatives Are “Done”?
		3.7.3 Acceptance Criteria at the Portfolio Levels
	3.8 Agile Portfolio Budgeting and Resources
	3.9 Identify the Portfolio Value in an Initiative
		3.9.1 Identifying and Assessing the Portfolio Value
		3.9.2 Ensuring Portfolio Value Alignment with Strategy
		3.9.3 Planning the Portfolio Value
	3.10 Portfolio-Wide Stakeholder Analysis
		3.10.1 Core Concepts of Portfolio Stakeholder Analysis
		3.10.2 Identify Stakeholders
		3.10.3 Analyze Portfolio Stakeholders
	3.11 Align All Work to the Strategy
		3.11.1 Core Concepts of Strategy Alignment
		3.11.2 Hoshin Planning
	3.12 Estimation of Initiatives
		3.12.1 Agile Estimation Is Based on the Relative Size of the Increments of Value Under Consideration
		3.12.2 Core Concepts of Estimation Techniques
		3.12.3 Relative Sizing
		3.12.4 Wideband Delphi
		3.12.5 Results Review
		3.12.6 Agile Portfolio Poker aka Planning Poker
		3.12.7 Affinity Estimating – High-Level Sizing
		3.12.8 Estimation of Initiatives with Fixed Scope
		3.12.9 Estimation of Initiatives with Fixed Schedule
		3.12.10 Disaggregation
		3.12.11 Analogous Estimating
		3.12.12 Parametric Estimating
		3.12.13 Expert Judgement
		3.12.14 Programme Evaluation and Review Technique (PERT)
		3.12.15 Fist of Five or Roman Voting
	3.13 Portfolio Prioritization – Sorting/Ranking the Portfolio
		3.13.1 Core Concepts of Portfolio “Backlog” Prioritization
		3.13.2 Customer-Valued Prioritization (Business Value Versus Risk)
		3.13.3 Customer-Valued Prioritization (Business Value (Impact) Versus Effort)
		3.13.4 Dot Voting
		3.13.5 Relative Prioritization
		3.13.6 Ranking
		3.13.7 Top Ten
		3.13.8 Single-Criterion Classification.
		3.13.9 Points
		3.13.10 Weighted Shortest Job First
		3.13.11 Position in the Marketplace (Early Adopters)
		3.13.12 Prioritizing Using Business Value Buckets (Grouping)
		3.13.13 MoSCoW Prioritization
		3.13.14 Kano Analysis Classification
		3.13.15 Karl Wieger’s Relative Weighting
	3.14 Bottlenecks and Cost of Delays
		3.14.1 Core Concepts of Cost of Delays
	3.15 Qualify Ideas for Portfolio Inclusion – the Agile Business Case
		3.15.1 Core Concepts of the Agile Business Case
		3.15.2 Old-fashioned Heavy Business Case
		3.15.3 Light Business Case
		3.15.4 Better Business Case – the Iterative Development
	3.16 Visualize and Present the Portfolio Values
		3.16.1 Delivering the Portfolio Value
		3.16.2 Confirming the Portfolio Value
		3.16.3 Tracking and Reporting on the Portfolio Value
	3.17 Managing Portfolio Risks
		3.17.1 Definition of Risk
		3.17.2 Risk-Adjusted Backlog Reflects the Portfolio Decisions
		3.17.3 Identifying Portfolio-Level Risks
		3.17.4 Assessing Portfolio-Level Risks
		3.17.5 Mitigating and Managing Portfolio-Level Risks
		3.17.6 Risk Burndown Chart for the Portfolio
		3.17.7 Applying Risk-Based Spike on Initiatives in the Portfolio
		3.17.8 Why Use Risk-based Spikes?
	3.18 Portfolio Metrics Worth Tracking – Measuring Progress and Value
	3.19 The Agile Project Management Office (PMO)
	3.20 Exploring EDGE
	3.21 Transformational Leadership for a Successful Portfolio
		3.21.1 Adaptive Leadership (for the Portfolio Product Owner)
		3.21.2 Case Study – Doing Adaptive Work at KPMG in Netherland
		3.21.3 Servant Leadership (for the Portfolio Scrum Master)
Chapter 4 Agile Portfolio Management Frameworks
	4.1 Agnostic Agile Portfolio Management
	4.2 Agile Portfolio Management
	4.3 Scaling Frameworks for Agile Portfolio Management
		4.3.1 Core Concepts of the Scaled Frameworks for Agile Portfolio Management
	4.4 The Scaled Agile Framework (SAFe®)
		4.4.1 Core Concepts of the Scaled Agile Framework (SAFe)
		4.4.2 Team Level
		4.4.3 Programme Level
		4.4.4 Value-Stream Level
		4.4.5 Portfolio Level
		4.4.6 The Spanning Palette
		4.4.7 Research Insights
		4.4.8 SAFe Key Terms
	4.5 More with Large-Scale Scrum (LeSS)
		4.5.1 Core Concepts of LeSS
		4.5.2 Research Insights
	4.6 Agile Portfolio Management by Agile Business Consortium
		4.6.1 Core Concepts of Agile Portfolio Management
	4.7 The Nexus Framework for Scaling Scrum
		4.7.1 Core Concepts of The Nexus Framework for Scaling Scrum
	4.8 Disciplined Agile (Delivery) (DA/DAD)
		4.8.1 Core Concepts of Disciplined Agile Delivery
		4.8.2 Team Level
		4.8.3 Programme Level
		4.8.4 Portfolio Level
		4.8.5 Processes
		4.8.6 Research Insights
	4.9 Portfolio Management Using Scrum (Scrum of Scrums)
		4.9.1 Core Concepts of Scrum
		4.9.2 Team Level
		4.9.3 Programme Level
		4.9.4 Portfolio Level
		4.9.5 Research Insights
		4.9.6 Scrum Key Terms
	4.10 XSCALE Alliance (XA)
		4.10.1 Core Concepts of XSCALE Alliance (XA)
		4.10.2 Autonomy in Alignment over Command and Control
		4.10.3 Throughput Accounting over Cost Accounting.
		4.10.4 Pull-Based Delivery and Change over Push-Based
		4.10.5 Learning Ecosystems over Training Hierarchies
	4.11 Enterprise Scrum
		4.11.1 Core Concepts of Enterprise Scrum
	4.12 Recipes for Agile Governance in the Enterprise (RAGE)
		4.12.1 Core Concepts of Recipes for Agile Governance in the Enterprise
			4.12.1.1 Portfolio Owner
			4.12.1.2 Area Product Owner
			4.12.1.3 Programme Manager
	4.13 The Spotify Model
Chapter 5 Project Portfolio Management Versus Agile Portfolio Management
	5.1 Which Portfolio Management Approach to Choose and Why?
Chapter 6 Hybrid Portfolio Management
	6.1 Project Portfolio Management with Agile (PPM Stage-Gate)
	6.2 Project Portfolio Management with Agile teams (Just Like a Project) (PPM Stage-Gate)
	6.3 Project Portfolio Management with Agile Teams in Plan-Based Projects (Part of the Projects) (PPM Stage-Gate)
	6.4 Project Portfolio Management with an Agile Framework (PPM Stage-Gate)
	6.5 Agile Portfolio Management with Fixed Plan-Based Projects (APM with Plan-Based Projects)
	6.6 Agile Portfolio Management with Fixed Projects and Agile Teams (APM Combi)
Chapter 7 Implementing Agile Portfolio Management
	7.1 Defining Large-Scale Agile Framework Concepts and Terms
	7.2 Comparing and Contrasting Large-Scale Agile Frameworks
	7.3 Readiness and Appetite for Large-Scale Agile Frameworks
	7.4 Balancing Organizational Structure and Large-Scale Agile Frameworks
	7.5 Top-down Versus Bottom-up Implementation of Large-Scale Agile Frameworks
	7.6 Over-Emphasis on 100% Framework Adherence over Value
	7.7 Lack of Evidence-Based Use of Large-Scale Agile Frameworks
	7.8 Maintaining Developer Autonomy in Large-Scale Agile Frameworks
	7.9 Misalignment Between Customer Processes and Large-Scale Agile Frameworks
	7.10 Ensure People and Process Issues Do Not Steal the Show
Chapter 8 Tailoring Agile Portfolio Management
	8.1 The Process of Tailoring the Agile Portfolio Management Framework
	8.2 Step One: Initially Tailoring Based Upon the Organization
	8.3 Step Two: Tailoring Based Upon the Content of the Actual Portfolio
	8.4 Step Three: Continuous Tailoring of the Portfolio
	8.5 The Effect of Tailoring on Agility@Scale
	8.6 Tailoring the Agile Portfolio Management Approach
	8.7 Tailoring the Agile Portfolio Management Framework
Chapter 9 Case Studies on Agile Portfolio Management
	9.1 Case study (2018) – Ocuco Ltd
		9.1.1 Background
		9.1.2 Team Level
		9.1.3 Programme Level
			9.1.3.1 Portfolio Alignment
		9.1.4 Portfolio Level
			9.1.4.1 Programme Portfolio Management (PPM) Team
			9.1.4.2 Strategy and Investment Funding
		9.1.5 Home Office vs. Remote Office Work
		9.1.6 Overall Conclusion
		9.1.7 Literature
	9.2 Case study (2016) – An Empirical Study of Portfolio Management and Kanban in Agile and Lean Software Companies
		9.2.1 Background
		9.2.2 The Approach
		9.2.3 Overall Conclusions
		9.2.4 Literature
	9.3 Case study (2019) – Managing the Agile Scalability to Implement Agile Project Portfolio Management
		9.3.1 Background
		9.3.2 The Approach
		9.3.3 What Went Wrong?
		9.3.4 Literature
	9.4 Case study (2018) – Large-Scale Agile Transformations at Ericsson
		9.4.1 Background
		9.4.2 The Approach
		9.4.3 Literature
	9.5 Case study (2011) – Supporting Scaling Agile with Portfolio Management at Paf​.c​om
		9.5.1 The Background
		9.5.2 The Approach
		9.5.3 Literature
	9.6 Case study (2019) – Agile Software Integration at Telfor
		9.6.1 The Background
		9.6.2 The Approach
		9.6.3 Literature
	9.7 Case study (2015) – Is Agile Portfolio Management Following the Principles of Large-Scale Agile in the Finish Broadcasting Company Yle
		9.7.1 The Background
		9.7.2 The Approach
		9.7.3 Literature
	9.8 Case study (2018) – Agile Portfolio Management Challenges in the Swedish Automobile Industry
		9.8.1 The Background
		9.8.2 Literature
	9.9 Case study (2011) – Agile Kanban IT project Portfolio at Getty Images
		9.9.1 Background
		9.9.2 The Approach
		9.9.3 Implementation: Dealing with Predictability and Workload Visibility
		9.9.4 Challenges: Evolving Agile Portfolio Management
		9.9.5 Literature
References
Glossary of Terms and Acronyms
Index