On-Demand Webinar: Agility at Scale

Agility at Scale – Strategies to address hybrid portfolios, increase transparency in your enterprise featuring Agile Rising’s Joe Vergara, Mark Des Bien of Apptio, an IBM company and Jim Fowler, Scaled Agile.

What do you mean the organization’s entire portfolio of work is not fully Agile? This can’t be right, can it…? Well, it is; and it’s very common for organizations to have hybrid portfolios. Go beyond the buzzwords and explore how to factor hybrid portfolios into an organization’s enterprise agility strategy. In this webinar, the focus is on scaling agility and incorporating hybrid models – where Agile, Waterfall, and other approaches mingle within organizations.

Our experts discuss the principles that enable enterprise agility and how to incorporate those principles when working with hybrid portfolios. Most importantly, we focus on how to meet your organization where it is today AND assist in the transformation toward the Enterprise/Business Agility goals you envision. We also explore how Apptio’s Labor Financial Management can be used to bring new levels of visibility to help organizations manage hybrid portfolios, in support of their desired outcomes.


0:00 Welcome everyone to our talk about agility at scale strategies to address hybrid portfolios and increase transparency in your Enterprise that is

0:11a mouthful a lot of words uh and what we’re hoping to do here is kind of as maybe you saw in some of the marketing things we’re trying to get out of the buzzwords and really try try to give you

0:21some practical things that we can talk about in order to address this uh this idea of having uh hybrid portfolios and really helping us to achieve business agility as Julia mentioned my name is Joe Vergara I am an SPCT with adzing and VP of transformation technology and I’m here with a couple friends and colleagues I’m allow you know Jim

0:46Fowler to introduce himself as well hello everybody yes my name is Jim Fowler I’m a strategic adviser, an SPCT here at Scaled Agile so my role to work with our our closest partners and and customers and just helping to dive

1:05deep into into the framework answer some of the the more advanced questions and do fun webinars like this where we get

1:11to share information and hopefully uh provide you with some valuable

1:16knowledge thanks Jim and our friend Mark Des Bien from Apptio, senior consultant at Apptio why don’t you give a little introduction to yourself as well hello everyone thanks for joining today I’m Mark Des Bien I’m with Apptio which is now an IBM company and uh we work with organizations at all size looking to scale and address some of these hybrid

1:38challenges so uh you happy to be here today and to join in this discussion with uh these two other distinguished uh

1:47speakers and as we get started here in our in our talk we we really kind of want to start with this idea of what’s

1:53business agility and and Jim’s going to give us kind of the the safe answer we got a safe expert here is going to give us the answer from a safe perspective as

2:00we think about agility at scale we’re going to get that directly from kind of the leading framework in scaling agility

2:09um when I think of business agility and I often think about how can organizations the ability for

2:15organizations to Pivot from a strategy perspective that’s kind of my simple definition Mark Mark what’s your like

2:22when you think about business agility like what do you think about in this realm yeah Joe yeah I mean for me it’s

2:28three things one is it’s having a plan and just understanding what your strategy is because if you don’t know what your plan is and where you’re going

2:34it’s going to be difficult to to know you know how agile you’re being um you know it it is having visibility in into

2:40that strategy and be able to see where that is and be able to understand within your organization kind of how are you

2:46doing within that plan and then and it’s also just being able to adjust uh you know everything changes when I was a

2:53scrum Master uh you know I I loved L doing the planning i l doing the retrospectives but I didn’t love day one

2:59or day two right after the Sprint planning because I knew that things were going to change and and as soon as I realized as

3:06soon as I got my team and myself realizing that we can we can uh you know just just know that things are going to

3:12change uh that was a big step for me so for me it’s about understanding where those changes are and then being able to

3:18see where they are good I love it so least Mark and I’s definition kind of

3:24revolving this around this idea of things just are ever changing right uh

3:29we need to have the ability to Pivot against that Jim why don’t you give us like the formal definition we gave our kind of our informal personal uh

3:36definitions what does safe really have to say about this yeah absolutely you you both are

3:42are right on on the right track I think you hit the the nail on the head there business agility really is all about

3:48that that ability to rapidly pivot based off of the market changes and and

3:54conditions within the market so understanding in in you know this this age of digital of which we’re in right

4:01now things do change super rapid uh far far faster than than they used to in the

4:07past and so where what I call traditional agile was really kind of you

4:13know focused at at the team level just kind of technical agility and and being able to respond to um micro changes in

4:22in the the requirements you know that they were fulfilling in today’s day and age it’s the whole Market that that can

4:30just pivot and change on a dime and it’s crazy how fast things change and so

4:36scaling up that that ability to that business level to where we’re constantly

4:41listening to the market we’re constantly sensing what are those opportunities that are out there and being able to

4:48adjust our strategy being able to adjust our execution instead of taking you know

4:54months to to years to make those adjustments bringing that down to where as business we can very quickly adjust

5:02within weeks or just you know a couple months going through that whole process

5:07of sensing that change finding out what is the MVP that that we can actually execute that’s going to help us answer

5:13the question are we right in our hypothesis of where we want to go and then being able to Pivot quickly when we

5:20see that either yes we’re right continue to go or no we’re not right we need to try something else so that’s really the

5:26the essence of business agility there being able to sense those opportunities all the way through taking advantage of

5:33and leveraging our opportunity as a business within the market in order to

5:38do this we go to the next slide we see in in the framework there’s uh you know

5:45seven core competencies that we’ve identified uh within the framework that

5:50organizations must master in order to really truly be able to achieve true

5:55business agility uh it requires our uh ability to um have our Enterprise

6:03solution delivery understand these larger systems and solutions that have to come together towards delivering that

6:10that value having uh competency with an agile product delivery so this is kind

6:16of where some of the um traditional types of agile that that that we think about with the the focus on customer

6:22centricity the focus on devops and all of that in that agile product delivery and then combining that with the team

6:29and Technical agility around agile teams uh cross functional teams built-in

6:34quality really baking that in um all has to come together with the other core

6:41competencies around lean agile leadership having the foundation where leaders understanding that we do need to

6:48change even How We Do leadership within the organization how we lead the organizations how we think about the the

6:54long-term road maps and all of that really starts uh with the leaders and being able to to support that and in

7:03order to to do that we need to build a continuous learning culture so building

7:08within the organization that constant Learning Journey that the leaders are

7:13constantly learning the teams are constantly learning as an organization we’re learning together innovating

7:20ideating testing out ideas that has to be mastered in order to be able to take

7:25advantage and and be a true agile business uh within the market Marketplace excuse me so the the last

7:34two competencies around organizational agility that ability to be able to

7:39rapidly adjust strategy to be able to make adjustments to the structure of our organization to meet uh those business

7:47opportunities and and the shifts in in strategy if we can’t be flexible quickly there it it’s going to inhibit us to

7:54actually be uh agile as a business and then finally uh looking at lean

8:01portfolio management and this is one area that we’re going to zero in on today really and focus in how do we

8:08change and adjust and and really Master the ability to have lean agile budgets

8:14within the organization look at the the lean governance and some of the agile portfolio operations that need to take

8:20place to help us be truly agile uh within the market space so if we go to the next slide

8:30so really what we’re talking about here is the ability to take that that

8:36Enterprise strategy and understand that it’s it’s not a one-way thing it’s not

8:41where we’re just thinking you know ideating uh with our our top level leaders at the Enterprise level making

8:48these big long uh you know multi-year plans that that we execute against and

8:54being rigid within that instead we need to shift to where the Enterprise strategy is a

9:00bidirectional um process that is a a continuous evolution of that strategy

9:07where we have the the the ideas we we’re sensing the market we’re we’re looking

9:13for those opportunities to take advantage of formulating our our strategic themes having that influence

9:20our budgets within uh our portfolios but then connecting that to the execution of

9:27the portfolio connecting that to the the measures uh of value our our okrs our

9:33kpis having um the data that is coming back you know consistently with the

9:41execution of the portfolio that then is feeding back to the Enterprise saying hey here’s where we thought there was

9:47going to be value here’s the actual measures we’re seeing here’s the new opportunities we’re seeing in the market

9:53being able to feed that back to then reinl readjust th that strategy and

9:58those budgets and having that continuous uh bir directional cycle within uh our

10:04Enterprises and our systems yeah I love how you you kind of spoke to that there Jim this idea that I

10:11love the analogy that you gave in the beginning where when we’re when we’re looking to have Team agility and making

10:17make changes at that Team level like Mark was alluding to in the beginning right day two of the iteration that’s a

10:23struggle but like it’s manageable right we can we can get a small team of people to move as we start to think think about

10:30getting an organization to change its overarching strategy you think about you know when Co hit several years ago and

10:37many organizations kind of changing their strategy or changing the way they go through uh execution or uh name your

10:43name your organiz the the strategy shift in your own organization that’s a much

10:48bigger involved change right um and this is where we kind of want to like want to

10:54hear from from each of you guys who are participating as as we continue along in this discussion thinking about

11:00addressing uh uh this portfolio challenges helping to increase business agility we love to understand what

11:08portfolio challenges are you experiencing right what what portfolio challenges uh are impeding business

11:14agility within your or organization so at this point you guys can see a QR code

11:21and uh some other ways to utilize to to fill out this poll in mometer you can go

11:27to ment.com and use that code is on the screen or you can scan that QR code and

11:32you’ll be able to kind of answer this question we’d love for you guys to to submit your responses a couple words

11:39about uh what portfolio challenges are impeding business

11:46agility so with that Julie hopefully you’re able to present that there we’re

11:52going to give you guys a couple minutes or maybe a minute or so to fill that out

11:58uh and I’m going to maybe stop sharing so that Julia can share her screen on


12:14results appreciate the early responses you guys can see some of the live responses that are coming in you’re

12:21seeing budgets and dependencies funding labor visibility with this idea of

12:28inertia right that things are already moving right what other challenges are you guys

12:35seeing here

12:40controls risk aversion and I I I’ll admit to you guys

12:47this is the first time at least that I’m using mometer it’s kind of cool to see this little experiment happen live in

12:53front of us right you guys are submitting some responses we’re able to see those it’s kind of re jumbling

13:00things based off of kind of the biggest biggest responses what as as we’re as we’re

13:07looking at this live Mark J what are some of the things that are kind of sticking out to you guys IM more

13:14immediately you’re on mute there mark see the the annual budgetary Cycles

13:20annual funding cycle Project funding inflexible budgets yeah absolutely and I

13:28I was just giving a Sol on dependencies I mean I think that’s one that you know the mute button is a dependency for me

13:34to be able to talk but certainly the you know our our ability to track those dependencies and and be able to see

13:39those um you know not just within our teams but you know throughout the organization at all levels is super

13:45important and then you know having that visibility to the financial side and and what what’s happening from a Labor

13:51budget perspective because that is a big part of of what we’re delivering and how how we deliver it yeah so good well

13:58thank you guys for for joining in th this I asked this question you never

14:03really know what answers we’re going to get but we had a we had an idea right of where this was going to go and and I

14:09think you guys were pointing out kind of that common challenge if I could steal the screen back here Julia um you’re

14:16pointing out a common challenge that you know we want to address here today is this idea of hyrid portfolios right and

14:23how hybrid portfolios have impact you know negative positive somewhere between

14:29right impact on business agility right and when we say hybrid portfolios we

14:35want to give a little bit of explanation of what we mean by that hybrid can has been used in a lot of different contexts

14:41maybe one of the contexts that you guys are familiar with is this idea between as organizations kind of work in their

14:48transformation there’s kind of a hybrid working models right you can be you know part of your organization might be in

14:54waterfall or utilizing traditional waterfall project traditional project management agement processes as part of

15:00your execution model uh maybe other parts of your organizations are are

15:06thinking about uh kind of trying this agile thing out looking into iterative

15:11or incremental delivery right that’s an an aspect of hybrid um another aspect of this and

15:19really kind of where we’re going to be focusing in on is this idea and where you guys were pointing to is this idea

15:24of Project funding and that transformation or transition to value stream funding right as we think

15:32about Project funding I often think about my I’m I’m a PMP you know I’m m a PMP I served as a project manager for

15:39several years and I think about all those time periods where you know I got this new project and we’re just we kind

15:45of spam everyone right we put out this large email or whatever distribution to

15:51you know different leaders throughout the organization and we don’t have a ton of details about this project yet we you

15:57know we just started it we just kind of got uh getting getting things uh rolling

16:02but we ask everybody at that point you know what’s your budget like what do you

16:08think you’re going to spend on this thing that we know basically nothing about right and you guys probably know

16:15how this story goes at least this how it happened in all the organizations that I was a project manager for we asked that

16:21question and people would like they’re like I don’t know but I’m I know what’s going to happen they’re going to take my

16:26number and they’re going to slash it in half so I’m going to D double it or triple it or something right uh we’re

16:31just kind of throwing numbers out there but this is the reality of many organizations this idea of Project

16:37funding right um whereas we want to start to transition to and we’re safe starts to think about is how do we shift

16:45uh that to an uh this concept of value stream funding where we’re funding the

16:51people we’re funding the Arts we’re funding the uh where the value is being

16:56delivered where we’re thinking that the products just solutions that we’re building are are going to are intended

17:02to continuously deliver value to the customers right and as long as we’re doing that how do we fund those people

17:10fund those ad lease trains in order for them to determine the priority right the

17:15best priority for their set of customers right so we really want to ask

17:20you guys again another poll question here in a second where is your organization right I think I have a

17:27feeling based off some of their respons that from the last poll but I just want to you know just test this out where where is your organization and

17:33specifically across these two different dimensions you know are you you know waterfall in Project you’re kind of you

17:40know right there at square one right uh really response three if you will if looking at this graph uh are you moving

17:48towards incremental delivery but still within Project funding where are you

17:53within this uh this model and again here I’m going to

17:59allow Julia I’m gonna stop sharing allow Julia to share some of the results as they’re coming in live but where is your

18:13organization and again you can just scan that QR code or you can go to ment.com to use the

18:21code 657

18:276488 interested to see where people are

18:38at had a decent amount probably more than I expected to be honest with you in this pink area or at least my wife says

18:45I’m colorblind sometimes so I don’t know if it’s really pink but I see it as pink um we got 21% as of right now who are in

18:54that value stream funding and and incremental delivery that’s kind of like the ideal if you will um and we’ll talk

19:01a little bit more about why that is the ideal and why we want to transition to that um a little little more than I

19:07expected Jim Mark any any insights as we look at kind of the results of this this

19:15survey yeah I’m actually impressed to to see that many uh there that that’s a a

19:22good thing and shortly we’ll we’ll see why um but yeah not not surprised at uh

19:28you know the amount that are still still in in project uh funding model there

19:33project and waterfall project and incremental um absolutely yeah and I think if if you

19:40combine incremental for the 60% there I think that makes sense we see you know we see we see that a lot where you know

19:45people are are are are doing you know things in different ways everybody

19:50nobody has one model or one way that they’re doing certain things so I think having that incremental view of that um

19:56makes a lot of sense as well that’s good if I can steal back that

20:01share Julia I agree I think the overarching trend that we saw there almost 70% of

20:10their respondents were in kind of still in this Project funding world and that’s where we really want to meet you guys

20:16where you’re at right I understand that you know 30% of you guys may not may may be in that value stream funding we’re

20:22going to kind of focus in on that transition from Project to Value stream um and really I want to hand this

20:29over back over to Jim Jim’s done some really good research on the history of annual budgeting in business and kind of

20:36giving us you know where where did this idea of Project funding come from and where where what has happened between

20:43now and then to kind of think allow us to kind of think about this a little differently so Jim absolutely we can get the slides

20:52back up there oh I need to am I sharing yep all right

21:07looks like I might not be sharing I’m GNA try to reshare

21:13Here There we go you see my screen now there we go yep perfect all right so

21:18let’s take a little walk through history so saw that on on the first mentee there

21:23you know a lot of comments about traditional budgeting and Project funding and and things like that uh you

21:29know making life difficult for us in the Enterprise and we all kind of recognize

21:34you know that that there are difficulties there the question is why why why do we have those difficulties

21:40and and kind of where did this whole concept of annual budgeting uh for organizations come about so we see on

21:48our timeline here the the the real origins of the annual budgeting process is way back in the the mid 1700s around

21:571760 it actually began in England where it was a way for Parliament to put

22:05constraints on the power of the king to Levy taxes and and frivolous frivolously

22:13spend the government’s money on all kinds of lavish spending with you know new castles and and you know just ornate

22:22decorations and you know just all sorts of stuff that the King was spending money on that the government didn’t have

22:28have the money but yet he was just spending on all these parties and everything and then randomly leving

22:35taxes against the people to to try and pay for it because they didn’t have the money for it and they said hey

22:41something’s got to change we can’t just keep taxing the the people and overburdening the the people on this so

22:47they came up with this concept of a budget and really the the budget um I

22:53forget the the historical word um on my other deck where I have the the details in there I go into the origins of the

23:00word but it really came down to it was a like a purse that they would hand the

23:05king that that says okay inside this purse contains all the gold that you have to spend for the Year this is the

23:12money that we have right now and you have to constrain your spending once

23:17this is gone it’s gone we’re not giving you anym and before you can Levy a new

23:23tax against the people it needs to come through us we need to have conversation and we need to be reasonable uh about

23:30this and how that that comes about and it was relatively successful and ended

23:36up really pretty much uh every major government uh throughout the world now operates in that type of a model where

23:44we have to be confined within the the budget uh of the funding of which we

23:49have now we see uh you know some of the issues uh that that we experience in our

23:55own governments here in the us when we uh you know don’t balance bance the budget uh and have issues with that but

24:02that was the origins of what that was for saying here’s the funds that we need to stick within so fast forward into

24:09around 1920 1922 we have where uh J McKenzie

24:15published his uh a foundational book called budgetary control um that that

24:21really goes into how can we take that concept of these annual budgets from a

24:27government perspective and apply that within business and this really resonated uh with with brown and and

24:34Sloan um who you know were uh Brown as the the the CFO um within GM at the time

24:43and Sloan the the CEO working together and saying hey this makes a whole lot of sense let’s apply this in General Motors

24:51and so they were the the first to really apply these budgeting Concepts uh that

24:56that McKenzie published in business and it it worked it worked really well they

25:02were able to say you know hey we can’t just keep spending money that we don’t have we need to understand how much do

25:08we have what’s our our boundaries stay within that and uh uh Brown furthered

25:14that uh later on when he combined some of the research that he had done for

25:19Dupont uh historically on uh this concept this New Concept coming about

25:25called Roi return on investment not so new anymore um but he he was able to do

25:33this um this ability to take this study on how do we calculate based off of

25:39looking into the future looking at the past how much do we believe that we’re going to get a return on our investment

25:46uh that that we make for our budgets and be able to calculate that out and so in 1924 he published a series of articles

25:54on Roi and how you can apply Roi within business and really started to to grow

25:59from there and really took off in the business world I mean this was just

26:05enormously successful uh in the business World fast forward again to the 1960s

26:12and 70s when Marvin Bower um who was a a student of McKenzie and uh uh really

26:19studied his concepts of of budgeting uh studied uh Brown’s concepts of of Roi

26:27and really uh was able to bring this together and accelerate and uh took over

26:33uh from McKenzie to to be the successor of the McKenzie uh company and they’re

26:40Consulting with other organizations and governments all around the world uh being the leaders in implementing you

26:47know these budgeting Concepts within business but when when Marvin uh Boward

26:53took over he started to to recognize and realize that it’s not working quite as

26:59well as it used to you know when this really first started and when he first started studying with McKenzie you know

27:06they were able to be extremely predictable and really know what was going to happen in the future and

27:12accurately calculate Roi but by the the the late 1970s he he realized that hey

27:20this is really hit or miss um and in fact in in 1976 uh in working with Congress the US

27:28Congress on identifying uh the the budget for the US he made a statement to

27:34Congress where he said to try to influence the future you must forecast what it might be if you don’t act he

27:41said yes we we understand that you know concept of Roi and and what we’re going to do there he said but I must say and

27:47you can check me two years from now it isn’t going to happen the way you think it’s going to happen the record of

27:54controlling the future is miserable this was in 19 76 he made this statement so

28:00even there he was recognizing this whole annual budgeting cycle forcasting Roi

28:08we’re we’re miserable at it it’s not working very well but he didn’t quite put his finger on exactly why that is so

28:16now we fast forward into the the 1990s uh up in into the the mid 2000s and it

28:22really started to become more recognized by business uh at large that hey there’s

28:29significant issues with you know annual budgeting we’re not sure exactly why we’re not sure why that is but we’re

28:36we’re just not very good at this and so some organizations doubled down on well we just have to be much better at at Roi

28:43and and put all kinds of investments in how do we calculate that better but then there was this other group that started

28:49to recognize hey how do we move Beyond budgeting how do we start to move into

28:56this new age where that annual budgeting doesn’t hinder us what would that look

29:01like what do we need to do and so in 2003 uh Jeremy H uh hope and and Robin

29:08Frasier published this foundational uh book through the Harvard Business School press called Beyond budgeting where it

29:16really articulated how do we move away from annual budgeting into a more

29:22continuous uh prioritization method and not be hindered by budgets so if we go to the

29:29next slide then by 2009 then their their work on this

29:35Beyond budgeting really started to be recognized by mainstream business and in

29:412009 the the business finance magazine published this article uh announcing the

29:47death of budgets okay so 1922 to 2009

29:53you know the budget uh rest in peace on on the budget there and they went into

29:58you know kind of the the history and the concepts you know that that we just uh discussed and and they started to

30:05identify um some of the the the areas where budgeting wasn’t working but they

30:11still didn’t really narrow in on why exactly what changed within the business

30:17world so if we go to our next slide then uh roughly around that that same time we

30:24have a another book in the the Beyond budgeting kind of um realm uh published

30:31called implementing Beyond budgeting so giving guidance to organizations on how do we actually Implement and and move

30:38away from this budgeting process and in there Robert Kaplan in the uh forward to

30:44the book uh made a statement in there I’m not going to read uh this this whole statement here you can read through that

30:51but essentially what he said is the recognition that yeah the the budgeting process it’s an old Relic

30:58it doesn’t work uh anymore uh in today’s day and age and he he started to hint at

31:05he started to get close to the reasoning uh for that and in the last sentence

31:10there he says you know the annual budget and its inflexibility in light of rapidly

31:17changing external circumstances and internal opportunities he’s starting to

31:22touch on why it doesn’t work what changed so let’s jump into that let’s

31:28see what what did change why is it so inflexible what is it about business

31:34that doesn’t work anymore when we look at at this uh uh uh

31:40chart that have on the screen here this graphic uh many of you may recognize the

31:46five technological revolutions from carot carlot Perez’s book on um uh

31:53technological revolutions and and financial Capital I’ve taken and overlaid this

31:58with a chart on the knowledge growth within the world so the knowledge

32:03doubling curve and when we look at this and we compare this to the the timeline

32:09that we walked through we see that when you look back at the the 19 or sorry the

32:161760s kind of that era when budgets first came about it coincides also with

32:21that that first kind of technological Revolution the Industrial Revolution there and we see at that time time in

32:28the world the knowledge that was available to the world the rate of which knowledge grows was pretty stagnant it

32:36was about every hundred years we would get kind of a doubling of the knowledge within the world so it was fairly slow

32:44in in that knowledge growth so at that time it worked well to have these

32:49budgeting constraints on a yearly cycle because very little is going to change within that year and you see even within

32:55that technological Revolution while it was a great Revolution for the time the scope of the Revolution was fairly

33:02narrow and specific it was all around mobilization Railway and and Waterway

33:08kind of improvements and stuff like that how to mobilize our products uh and mobilize uh people we start to to move

33:16forward then to the the next re uh Revol re

33:22Revolution uh on the age of of steam and Railways you know in the mid 1800s there

33:28again fairly narrow in its focus our knowledge was still pretty pretty stale

33:33at that point you know it’s it’s grown a little bit but not that much and so the the focus on that Revolution again

33:40fairly narrow looking at you know how markets uh change a little bit expanding Beyond Europe uh into a more of a a

33:47global market again kind of around mobilization of the products not so much

33:52product innovation in and of itself but now we start to look at you know the 1920s there again knowledge

34:00increased a little bit but we’re still at about that every hundredy year rate for the knowledge growth we jump forward

34:08to you know the the mid 40s 1940 now we’re seeing some significant change in

34:14the world that knowledge growth has doubled instead of every hundred years it’s every 25 years we’re getting a

34:22large increase in knowledge but it was still controllable budgeting

34:28hey we could still calculate some Roi have those annual budgets because it’s still relatively small on the change of

34:35which we’re facing within the market uh that we’re facing and also the knowledge that was available that time was mostly

34:42available to the elites right those who who were in University um the the the

34:48high level Elites in in large organizations that were hired there for that so it was fairly condensed in who

34:54had access to that knowledge jump forward now to you know late 70s

35:00early 80s when Bower made that statement about how miserable we are at at

35:05forecasting the future well we can see why Wow we went from knowledge doubling

35:11every 25 years to now knowledge doubling every 12 to 13 months that’s an enormous growth in

35:19knowledge Not only was it starting to double within you know access of universities and Elites but now we’re

35:26starting to see know be more available we’re starting to see the birth of the

35:32internet the do era right and having all that availability of the knowledge to

35:38the masses that wasn’t available previously and so now we see in in that

35:44uh technological Revolution the age of software and digital we see hey this is

35:49a massive change so combining the age of oil and mass production and software and

35:54digital we see the scope of what changed there all of the different uh ideas all

36:01the different um technology that was implemented in these revolutions has

36:07just exponentially grown in their focus so it’s no wonder that as a a business

36:14you know looking in today’s day and age we can see that in in the the 2020s

36:20knowledge is doubling every 11 to 12 hours instead of 12 months 12 hours how

36:27how in the world do we think in an era where on on my cell phone I can pick up

36:33my cell phone and I can have access to all the latest and greatest ideas all the latest and greatest new technologies

36:41and be able to see everything that’s out there my rate of demand as a consumer because of my access to this knowledge

36:48and this enormous growth in knowledge how in the world can we think that we can figure out and plan a year

36:55in advance all the projects that we’re going to invest in and that we’re going to fund and think that we’re actually

37:01going to be on track with that so if we go ahead and go to the next slide we see

37:08that this is the era of which we’re in all these new things you know AI ml

37:15blockchain 3D uh printing augmented reality Internet of Things autonomous vehicles Advanced robotics go ahead and

37:22go to the next slide we see the recognition now from the the world that

37:28we are in this this world of this this new term vuka right vuka or VCA

37:34volatility uncertainty complexity ambiguity that’s the new normal the

37:40knowledge is just growing way too fast and we see on our next slide here a quote from from Jeff Bezos where he

37:47articulates that in today’s era of volatility there is no other way to be

37:53relevant no no other way but to reinvent the only sustainable advantage that you

37:59can have over others is agility that’s it business agility that’s what he’s

38:04talking about as a business being agile as a business that’s our only advantage

38:09to our competitors because nothing else is sustainable everything else you create somebody else will replicate and

38:17I would say they’re not just going to replicate they’re going to improve upon it because they have more knowledge in

38:22in their their post you know uh release of whatever you did they’ve gained more

38:27knowledge and they can make it even better so it’s that agility the ability

38:32to respond to that market changes that is our only Advantage really in business

38:38today love it thank thanks for that history Jim I I think it’s really cool to understand like how we got to the

38:45point that we’re at today and really what has changed right what like like you you noted like budget wasn’t evil

38:53when it was when it first came out right it worked for a long time right but the

38:58world has changed in an ever increasing Pace that we need to do something different right uh so we were able to

39:05kind of highlight the the problem or like why we need to make this transition from budget uh or Project funding to

39:13Value stream funding and I’m gonna pass it over to my friend Mark here to to really help us to think about what’s the

39:19solution to this right and I think what the the answer in a lot of ways is is what Mark going to talk about is this

39:26idea of Labor financial management and how uh the tool that Mark’s going to show APO products from apo1 and Target

39:34process to really meet organizations where they are to show how we can see

39:39the Project funding and help with that transition to maybe see that side by

39:44side with the value stream funding side so Mark take it over from here yeah great yeah great show thanks and and

39:50thanks Jim for that overview I think it’s really important to know kind of where where you know how we got here to understand that uh there isn’t a

39:57Solution that’s going to fix all of those problems I I get you know the Easy Button I know the easy button doesn’t

40:03does not exist um but um but but there are help buttons that we that we can use and um you know when we look at um when

40:10appal looks at these kind of challenges and and and what we look to do there’s you know there’s a couple key things one

40:15it’s it’s that focus on value I we hear more and more how do we understand what are we delivering you know are we on the

40:21right track in terms of those strategies um this says no surprises but I say limit the surprises um there’s always

40:26going to be something that that comes up and maybe we want uh we want good surprises instead of instead of the

40:32negative surprises and try to limit those um and then also try to reduce that pain uh and that’s part of that

40:37change that I think Joe and I were talking about earlier is there’s going to be things that need to happen there’s gonna be decisions that need to get made

40:44and how do we how do we look at um reducing that with uh with maybe have some more visibility and and easier ways

40:50um to track and manage some of this detail okay um you know when we talk

40:56about Labor financial management uh in at at Apo it’s really about end to end alignment um being able to see uh from

41:02the financial side uh and there’s different roles that play in this obviously uh you know a strong financial

41:08team looking at things from a planning and a costing perspective making sure that we’re adhering to all the governance and the oversight that we

41:14need to do um that that needs to tie into strategy and sometimes there’s a disconnect between this the financial

41:21plans and the strategy that we’re seeing from the delivery teams and the teams that are planning on actually building

41:27um there’s there are PowerPoints out there there’s ways to do that but there’s not a a key disconnect there’s

41:33not a key connection sometimes between financing strategy uh in terms of what the teams are building and that plays

41:39down into delivery where where we we look at um uh being able to do link Work

41:44Management back into financials um through uh what your teams are delivering um through being able to show

41:50that um from a resource perspective uh and certainly labor is one of the bigger costs that we see uh and that we have in

41:56these Del dely models it’s understanding where that is and then being able to efficiently make those shifts if we need

42:03to make those shifts so uh you know Labor financial management for us is really unifying that financial

42:08management component with work management and tying that all back in um through strategy and

42:15delivery okay and uh you know I think drilling just a little bit deeper into that so you know three three key things

42:21that we look at it’s labor budgeting and forecasting so we still have some components of that we’re shifting that

42:26into to Value streams and arts and releases and being able to you know transition those but we still need to be

42:33able to budget for those and do a forecast on that um re realizing that labor and the value that that they’re

42:39delivering I’m looking at different ways of tracking how we actually deliver that whether that be um cost per Point models

42:46or or other ways um to track that that actuals and the value that you’re actually delivering on that um and

42:52realizing that value from a from a team perspective uh is something that we can we can we have different ways to to

42:58track and manage and show that and then you know a defensible labor allocation so you know the finance team wants to

43:04know you know if if we’re if we’re planning all all of this information maybe it’s not at the budget level but

43:09maybe it’s something along the lines of a release train or we’re looking at aligning this to our strategic themes

43:15and the and we’re doing funding based on that how do we go ahead and defense that and how how can we see those and also we

43:21need to be able to still look at capex versus op Opex ratios and be able to track those details so you know between

43:27by by combining um the Solutions in APO and Target process together uh and the integration that we have now that allows

43:34us to do that it really gives us that full picture of resource management and our ability to track and and see all of

43:40those details just one more slide I’m going to just jump into a quick demo after this um but you know labor and budget for

43:46forecasting was that first one um do we have a clear and timely view of that so

43:52you know there’s the it side of this and the finance side of that and that’s really where we see our AP1 users and

43:57looking at the the details that they can see from a from a vis visual standpoint there but then there’s also the

44:03execution side of that and the product owners and the and the teams that are actually trying to build that and aligning those two things together is

44:09something that I’m going to jump into now and kind of show you just a couple examples here uh in a few minutes to kind of give you a a real live example

44:16of what we can do uh when we try to bring all of those things together in that unified Labor financial management

44:22give you that end to end view so make sense so far Joe good yeah and that’s going to be my favorite part like this

44:28is where we get to again kind of meet you where you guys are show you guys truly how we have worked with different

44:34organizations to meet them where they are understanding where their uh Project

44:39funding is and mirror that right up against where we want to start to think about from a value Shing funding and

44:45help with that transition so yeah I’m excited to see I’ve already seen it but I’m still excited see yeah absolutely so

44:53you where we are right now is is in our APO dashboard so we’re looking at a spefic specific view that might be looked at from a from a labor leadership

45:00uh perspective an IT Finance lens or or a view of this and we’re looking at Value realization and the cost for

45:06specific portfolios uh you know as as they align uh to both intern you know

45:12internal costs labor costs and other things so we can get a full picture of what those costs are and how those work

45:18but we’re also tying those back to the strategy so in Target process we’re going to set up objectives and key

45:24results and we’re able to track that labor cost not just by portfolio or by value streams but really down into the

45:30specific um uh uh uh objectives okrs that we’re going to go ahead and track

45:35so when I when I zoom into one of these okrs this one is for growth we can actually track that down into the

45:40Strategic and the Strategic plans or the or the or the um uh the goals that we

45:46have for the organization and these are going to tie down into what we’re going to set up inside of Target process so

45:52the the key results that we’re tracking to uh and then the work that we’re tracking to for each of these strategic OB objectives can tie back down into

45:58specific key results and then we can actually see the cost uh and the and how they tie back in so um this is just one

46:05view of how we align strategy from the okr perspective and be able to roll that all the way up here into you know into a

46:12view that the finance team can actually see and then we’ll we’ll align the work and the details underneath each one of

46:18those okay the next section is really tying it back in into the budget uh and being able to see kind of a from a cost

46:24perspective as we look at those value streams kind of where are from our overall cost uh where are we based on

46:30our budget and uh what do we need to do in terms of maybe making specific changes so if I look at my headcount

46:35view over here and we look at the details about how many people do we currently have uh how many people are we expect you do we think we we we’re

46:42planning to have whether that be because we’re making changes uh we’re adding people or we need to remove people what

46:49what is that going to do uh this is at a portfolio view here it can also be at a value stream view what does that mean

46:55when we need to reduce headcount or when we need to incre or we need or we think we need to increase headcount because

47:00maybe something like AI is is going to force us to bring in more people we need to hire you know another team or another

47:0660 people to go ahead and bring those in so so this gives us that view of what’s Happening Here uh and then what what

47:12what we’ve done within Target process is be able to then plan out U at that portfolio level the project level um you

47:18know how how how are we going to actually fulfill those and what does that look like and how does that synchronize back between what the

47:24finance team is going to see here to the actual execution okay so this is that Finance view this is what the finance

47:30teams would see uh what the organization would see when you’re doing the planning is when I jump over here into Target

47:36process uh we have an intake process which lets us to start to really understand what that is uh this is

47:42showing me a specific view of a request uh we’re viewing the lean Charter and we’re setting a high level view for my

47:48business value and my scoring for that I can change the different values that I see in here but while we’re under review

47:54we want to go ahead and set the different business business value so we can understand what this score might be

47:59and that’s this is going to tie back to the objectives and key results that we just looked at over on the finance side but it’s also going to tie into the

48:06labor and the resources that we’re going to need so I can look at the allocations of the type of of uh of work that we

48:12think we’re going to need from a from a team perspective a uh a user perspective or a train perspective and what we do is

48:18we set specific allocations of that work uh and then the then the the solution will tell us whether or not we’re

48:23overloaded on those things or Not So based on the type of work that we need based on the lean Charter that we’re

48:29seeing we can make a Call of whether this is going to be agile work so we can see the delivery type here of agile on

48:34the right hand side or if it’s going to be a waterfall project or waterfall work that we think we’re going to do we can

48:40make it waterfall work and we can also use automation to decide what that’s going to be and based on the type of

48:46request and intake that’s coming in you know we can make the decision here to either create an initiative or a portfolio epic off of that or we can

48:53come in and we can make a waterfall project off of that as well so we can Side based on the incoming requests and the scoring and what we’re looking at

49:00from a governance here what do we want to do with that work and then we can we can actually start to tie that down into

49:05the labor and the individuals that we think we need on these Okay so we’ve got the request we’ll generate the work off

49:12of that and then we’ll be able to go into and see things like a like a Consolidated road mapap so in here I’ve

49:18actually generated my initiatives uh tying these in on a on a Consolidated road map so I can see my my initiatives

49:24with my waterfall projects all in one place um it allows me to plan them together um we can see them individually

49:31or we can use other things like the statuses on this road map to track them uh track how many dependencies do we

49:36have across that work and then really drill into the actual labor and and the work that we think we need to plan on

49:42this different type of work so so this gives me a view into creating different types of initiative and projects seeing

49:48them all on a portfolio road map where I can see my initiatives and projects together okay now from a resource

49:55perspective we looked at those work allocations earlier in here what I’m looking at in this view is is is the

50:00things that we have planned from a work perspective on the initiatives uh and we look at work allocations to be able to

50:06show me those as well as on the right hand side here the uh the items that we have the work allocations we have for

50:12specific projects so we can see across the two um in one Consolidated view

50:17where do we have issues U the purple items here are showing me where we’re overloaded or we may have specific

50:22issues for the different teams that we’ve planned so I can add additional work into here we can align work in I

50:28can drag and drop and move these around if we want to go ahead and do a specific plan but once we set that plan that’s

50:33what we’ll go ahead and set back up into our financials so we can say this is these are the allocations that we’ve

50:38decided to do for this specific work uh we can go through a governance process for these allocations for this labor and

50:44then from that point we can decide if we need to move forward or not um this is one view but I want to see a better view

50:50where I can actually track and see where we have teams that might be overloaded or based on those work allocations so

50:56this view here here is a is a view that shows each team and we can drill into the the the teams that might be

51:01overloaded for for for specific work so I can just drill into the ones where we’ve got um an overload here and if I

51:07look at something like team flash Crashers they’re at 125% for the second half of the year so I I can use Target

51:14process to go ahead and look at what do we have planned for them already what’s which features have we planned and then

51:20we can drill further into that and track um you know and maybe make adjustments to that specific plan so again this this

51:26is the this is the those allocations that we’ve set for that team when when we go into the details for that team we

51:32can actually see what are they current what do they currently have in their plan backlog what have they started what are they working on uh we can track

51:38different items in here that maybe have dependencies uh or or or or blockers Associated to them uh and for this team

51:45for Flash Crashers this is showing me that we have some work here that uh is a blocker between some other work so maybe

51:51we can make adjustments uh here at the at the pmo level or the team level uh to

51:56to help us to alleviate some of the needs that we have for that team or maybe we need to make adjustments to

52:02what we’ve actually planned for that team so I can go into the rostering view of that team this is the roster for team

52:07flash Crashers we can see the roles that we have on the team we can adjust those roles or if we know that we need to add

52:13headcount here or we need to maybe reduce headcount we can actually move these team members around and make adjustments to that team but then I also

52:21want to tie that back to the work allocations so when I go into my team in here we can see those work allocations

52:27one more time we can see where we have overloaded items so we can track those and maybe we can have a discussion of

52:32either to shift this work or or this detail to another uh Team maybe to

52:37another Release Train or I can actually shift that out here and then we can make sure that we don’t have any overloads

52:43for that work so we can maybe move some of this out to the to to the second half of the year and now we know that the

52:48team at least has a plan that we can then lock down and then send that back up into our financials to be able to

52:54track that okay so we started at the initiative level uh we broke that work down here to

53:00the team level those teams then can start to execute on that work and as they’re executed on that we’ll finish up

53:05by going back up into my financials so once we’ve made all the decisions here in Target process we’ve moved the teams

53:11around we’ve adjusted the work we can come back up into our leadership review uh uh view here and track these in

53:18different ways as well so we can we can go into labor allocations and we can actually see those updated labor

53:24allocations in here to see uh both from a completed work perspective and and what we’re what what we’ve committed to

53:30here um to that actual work allocations for those different um items that we just saw and that we made changes to

53:36within flash Crashers the automation that we have will send up those those allocations and the costs associated to

53:42those back into here so as we’re tracking things like um how well are we doing from a team perspective um both in

53:48seeing kind of the the statuses and the views of those we can go into we can actually see the load uh and the

53:54velocity and what we’re doing across those different team teams and track our allocations for that work so you know

54:00the finance team now has visibility into the allocations they have visibility into the type of work that it is whether

54:05it be capex or Opex and now as the teams complete that work we can roll the value back up into here and be able to show

54:12that within one Consolidated view uh for for both the finance teams here in in a

54:18in a in a finance view as well as for the execution team that are tracking that so I’ll finish just by going into

54:25value realization one more time and showing us that we can track our overall costs we can track the labor as well as

54:31as well as the revenue and the value that we’re delivering across those we can see that by our portfolios we can

54:36see that by the Strategic objectives and the themes that we’re tracking to as well as the the specific value streams

54:42as well okay so so by combining both the finance side of this with the labor

54:48planning and execution side of this uh we can actually roll all that up and have a Consolidated unified view for um

54:55for both uh the Fin and the labor teams so that so that was the that was the

55:00demo part of that I’ll stop sharing and give you back the the ball there no I love it thanks thanks Mark for sharing

55:06that demo and I know Mark just walked through a ton of information we have a limited time in these types of webinars

55:13if you’re interested in kind of getting a a longer Deep dive into this we’re be

55:19happy to set that up I think we’re going to have some sh some contact information here in a little bit where you guys can

55:25get in touch with us um what I love about what Mark shared there is the uh

55:30and kind of links back to the to the uh to the title of this talk right we’re

55:36we’re hoping to meet meet organizations exactly where you are right many of you guys most of your most of your

55:41organizations are in Project funding today right we want to provide transparency on that funding right to

55:49help make the shift as part of moving towards value stream right what the last

55:54two two views that that Mark showed were both the project uh view as well as that

56:00value stream View and often times when we’re working with organizations as we show them those two views we see a lot

56:06of volatility as we’ve talked about what Jim talked about a little bit earlier that volatility and the project view because we’re trying to predict the

56:13future in this vuka world that we live in right but as we shift to that that

56:18value stream view right what we start to see is is some consistency because the

56:24people who are doing the work in many organizations are of often times the biggest uh piece of our budget the

56:30biggest uh you know funding aspect that we have so we are able to see some

56:35consistency there so we’re able to uh help to show finance and get other or

56:42organizational leaders on the same page uh around uh how how we can truly make this transition this transformation

56:50possible uh while keeping the guard rails up for uh uh utilizing our our our

56:56organizational dollars in the best way so with that I’m going to share maybe one last screen I think it’s just

57:04uh some uh we’re we actually do we have time for

57:10Q&A we’re we’re a little bit out of time I uh Julia do we have questions here for for

57:16Q&A see we have about two minutes left

57:21um no questions yet

57:27I see that my friend etn uh from digital Tango here’s he’s provided some some clarifications he

57:33gave us uh the the origination of the uh of our word budget comes from an old

57:39French word I’m not going to pronoun try to pronounce it in French because I don’t speak French but it means little

57:44bag right so kind of talking to what Jim was talking about the bag the purse that we have of of coins uh and and ET you

57:52also kind of identified here this idea of knowledge doubling every 11 to 12 hours perhaps that’s information that’s

57:59doubling how do we convert this idea of information to knowledge I think these are really great points here etan

58:05appreciate you sharing there um well if there’s no other

58:10questions uh I actually see one coming in here now I’ll take this one here and

58:15then we’ll maybe shift to the end this is from David uh was this both Target

58:21process and after you one in the demo portion of the call uh how much can uh Target process do by itself of what we

58:28saw today yeah yeah David so so we we did mix a bold Target process and and APO

58:35apo1 I mean you know Target process as a standalone solution can process and do all of this as well uh so you know we’ve

58:41got we’ve got the ability for us to do objectives and key results all the way down to the execution level and

58:47Integrations with the team tools um the AP1 component really allows the finance teams uh and the details if you’re using

58:53something like um like like you know like other detail cost or other ways to bring that data in as well in into a

58:59solution so there’s um there’s options there well with that we are out of time

59:06I thank you guys for that if you guys do have any other questions or want to talk with us in a little bit more detail you guys can reach out to any one of us here

59:14our our information here is on the screen and I want to just leave it up to

59:19to Russ to maybe close us out he’s our VP of Business Development any anything else that you want to share here Russ as

59:26we close out uh nothing else to share just you know thanks to uh Mark and Jim

59:32and Joe and Julia for your work and putting this together thanks to all the participants and attendees and stay tuned for more webinars from Agile Rising, have a great day thanks y’all!