Business Agility and Annual Planning: Solving the Paradox

www.rallydev.com
©2014 Rally Software Development Corp
Get Answers Now
●  Our panel of experts are
standing by to answer your
questions
●  Enter your questions in the
Q&A window
●  Webinar tech support
available here

www.rallydev.com
Today’s Presenters
Catherine Connor
Solution Manager
Portfolio Management
Rally Software
Brent Barton
Product Line Director
Portfolio Management
Rally Software

www.rallydev.com
Business Agility and Annual
Planning:
Solving the Paradox
Starting no later than your next annual
planning cycle

www.rallydev.com
Poll
When do your start prepping for annual planning?
(single select)

●  Already started
●  July–Aug–Sept
●  April–May–June
●  March–April–May
●  I have no idea
●  We don’t do annual planning thank you!

www.rallydev.com
Business Value

www.rallydev.com
Executive Feedback
This is the best, simplest,  
easiest-to-use application we have
ever gotten in both customer care
and the retail stores! Whatever you
all did, I want more of that!”
“

www.rallydev.com
Cost
Savings
Customer
Satisfaction
Employee
Satisfaction
New
Revenue
Pilot Agile Team Delivered Great Value
Employee satisfaction
Compliance
Shareholder
Value
Revenue
Retention
Customer satisfaction
Cost savings
New revenue

through eﬃciency
Value
Cost
Savings
Customer
Satisfaction
Employee
Satisfaction
New
Revenue

www.rallydev.com
What goes here?
Business Value
Agile

www.rallydev.com
Demand
Business Value
Rhythm of the Business
CFO
cost constraints
HR
people constraints
Portfolio & Budget

www.rallydev.com
Demand
Business Value
Portfolio & Budget
Agile
Perfection
expected here

www.rallydev.com
Conclusion:
(Except in cases of perfection)
Agile stresses annual
planning and budgeting
?

www.rallydev.com
Annual Planning

www.rallydev.com
#RallyON14
Annual planning by staﬃng teams
- Took hours
Prioritized Demand
●  Value 1
●  Value 2
●  Value 3
●  Value 4
●  .
●  .
●  .

Team Allocation
●  Platform 1, Search
●  Platform 1, 2
●  Search
●  Platform 2, Search
●  .
●  .
●  .

http://santabarbariansandtheircars.files.wordpress.com/2014/03/tahiti.jpg

www.rallydev.com
#RallyON14
Annual Planning by Staﬃng with
FTEs Took Weeks to Months

Week 1 Week 52
Names generated using: http://random-name-generator.info/

www.rallydev.com
Names generated using: http://random-name-generator.info/
#RallyON14
Annual planning by staﬃng individually
- Took Weeks/Months

http://pictures.linkmesh.com/dragons/imagenes/hell_dragon.jpg

www.rallydev.com
Annual Planning by Staﬃng Teams -  
Took Hours to Days
Prioritized demand
●  Value 1
●  Value 2
●  Value 3
●  Value 4

Team allocations
●  Platform 1, search
●  Platform 1, Platform 2
●  Search
●  Platform 2, search

www.rallydev.com
Business strategy
(3–5 years)
Forecasting and budgeting
(12–18 months)
Prioritization and value delivery
IT/Engineering
(<3 months–9 months)
Long-range business commitments
(1–3+ years)
Reframing Annual Planning for Agility

www.rallydev.com
Business Agility

www.rallydev.com
Agility Deﬁned
An enterprise’s ability to
sense, create, and respond to
change quickly and confidently.

www.rallydev.com
Sense, create, and respond to change
Optimize for business value
Deliver value faster
Agile – Not Just for Engineering Anymore

www.rallydev.com
Sense, create, and respond to change
Optimize for business value
Deliver value faster
Agility for Annual Planning

www.rallydev.com
Solving the Paradox:
Portfolio Agility

www.rallydev.com
Portfolio Agility
Balance of execution & exploration

www.rallydev.com
Modern Principles of Capacity Planning
#RallyON14
Team as the
resource unit
Roughly right
Balance demand
and supply
Continuous
planning cadence
Tolerate incomplete
data
Reference: Rally’s Agile Blog Business Agility Theme

www.rallydev.com
1. Continuous
Planning Cadence

www.rallydev.com
#RallyON14
Business Rhythms: Sample Planning Cycles
Business strategy
(3–5 years)
Forecasting and budgeting
(12–18 months)
Prioritization and value delivery
IT/Engineering
(<3 months–9 months)
Long-range business commitments
(1–3+ years)

www.rallydev.com
Separate Cadence by Purpose

Roughly right forecasting and budgeting plans  
(9–18 months)
Inform midrange prioritization plans
(3–9 months)

www.rallydev.com
2. Roughly Right

www.rallydev.com
Stay Away from False Precision

www.rallydev.com
Cone of Uncertainty

www.rallydev.com
3. Team as the
Resource Unit

www.rallydev.com

www.rallydev.com
Stable teams result in up to:
60% better productivity
40% better predictability
60% better responsiveness
Key Findings

www.rallydev.com
4. Match Supply
and Demand

www.rallydev.com
#RallyON14
https://communities.intel.com/community/itpeernetwork/blog/2011/08/05/we-won-international-architecture-excellence-award
Can any
single team
work on all
of this?

www.rallydev.com
#RallyON14
S
"Rally Confidential and Proprietary"

www.rallydev.com
5. Tolerate
Incomplete Data

www.rallydev.com
Tolerate Incomplete Data
Source: Steve Blank – Harvard Business Review
Only detail initiatives
when you get closer to
scheduling them
Get comfortable operating on good-
enough data
Demand side
Only fuss with
capacity constraints
that will come back to
bite you
Supply side

www.rallydev.com
Ready to Get Started?

www.rallydev.com
Adopt the Modern Capacity Planning Principles
3. Adopt teams as your planning currency
1. Delay detailed prioritization activities to shorter cadences
2. Avoid false precision
5. Fuss when you must
4. “What ﬁts” may not be most valuable
Result: Create better plans in half the time

www.rallydev.com
Pick a Trusted Partner
Nobody has helped more
enterprises in their Agility journeys
Experience matters
Partner With the Experts

www.rallydev.com
The Right Path to Agility
Transformation
Scattershot
… it’s not a question of
whether your ﬁrm will
adopt Lean and Agile
techniques but how
soon and how broadly it
will adopt them. Firms
that charge into the
transformation blindly
will meet an untimely but
fairly predictable end.”

– Forrester Research, Determine the Business and
IT Impact of Agile Development, 2012

“

www.rallydev.com
Rally’s Transformation Approach
DISCOVER
•  Learn potential for agility
•  Learn by doing (pilots)
•  Prove value and mitigate risk

LAUNCH
•  Develop capability and capacity
•  Address concerns from Discover phase
•  Expand beyond pilots

ACCELERATE
•  Accelerate the pace of adoption
•  Obtain critical mass
•  Engrain agility into culture

ADVANCE
•  Complete initial transformation
•  Begin Kaizen and continuous
improvement
•  Live Agile

www.rallydev.com
Rally Portfolio Scenario
Planning
Accelerate time to beneﬁt
1.  What can you realistically deliver next year?
2.  How can you optimize midrange planning?
3.  How to adopt principles of modern capacity planning?
Portfolio

www.rallydev.com
Agile Portfolio Steering
Understand portfolio agility concepts
Portfolio

www.rallydev.com
Building the Right Thing
Getting the most value out of your portfolio
Portfolio
Execution

www.rallydev.com
Rally Program Launch
Accelerate software value delivery
Execution

www.rallydev.com
Poll - Contact me about: (multiselect choices)

●  Rally Transformation Services to help me raise my organization
agility level

●  Agile University Agile Portfolio Steering course to help me
leverage the nature of iterative and incremental development to
enable strategic steering.
●  Agile University Building the Right Thing course
●  Rally Portfolio Scenario Planning Services to help me create
executable plans from our annual strategic goals

●  Rally Program Launch to improve my ability to deliver value faster
once we form our annual plans
●  Not sure

www.rallydev.com
Thank You
Questions?

www.rallydev.com
Survey
Marketing to add please add a poll to
collect NPS data

Business Agility and Annual Planning: Solving the Paradox

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Viewers also liked

Viewers also liked (6)

Similar to Business Agility and Annual Planning: Solving the Paradox

Similar to Business Agility and Annual Planning: Solving the Paradox (20)

More from Rally Software

More from Rally Software (8)

Recently uploaded

Recently uploaded (20)

Business Agility and Annual Planning: Solving the Paradox