Portfolio prioritization with lean canvas and value game

agile42 | The Agile Coaching Company www.agile42.com | All rights reserved. Copyright © 2007 - 2015
Better Portfolio
Prioritization with the
Lean Canvas
Brad Swanson, CSC, CST®
brad.swanson@agile42.com
@bradswanson
Mike Caspar, CSP, Senior Agile Coach
mike.caspar@agile42.com
@mikecaspar
http://www.agile42.com/en/blog/

agile42 | The Agile Coaching Company www.agile42.com | All rights reserved. Copyright © 2007 - 2015.
agile42

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Company.

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By continually refining our approach, agile42 has developed a unique and proven
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Photo: Rory Mizen
Highest
Paid
Person’s
Opinion

1.

Problem

top
3
problems

Exis2ng

alterna2ves
4.

Solu2on

top
3
features
8.
Key

metrics

e.g.
AARRR
3.
Unique

value

proposi2on

Clear
compelling

message.
Why

makes
you

diﬀerent?

2.

Customer

segments

Target
customers

Early
adopters?
9.
Unfair

advantage

Not
easily
copied

or
bought
5.

Channels

Path
to
customers
7.
Cost
Structure

Customer
acquisi2on,
distribu2on,
people,

etc.
6.
Revenue
streams

Revenue
model,
life
2me
value,
revenue,

gross
margin
Lean Canvas: Ash Maurya
Lean
Canvas,
from
Ash
Maurya:
Running
Lean.
Licensed
under
Crea2ve
Commons-‐AVribu2on-‐Share
Alike
3.0
Product Market

Problem

Top
3
problems

Exis2ng
/
alterna2ve

solu2ons
Customer

segments

Early
adopters?
Success

metrics

Leading
and
lagging

indicators
Possible

solu2ons

Key
features
&

benefits
for

customers
&

business
Business

readiness

What
is
needed

to
deploy
and

support
the

solu2on?

(Staff,
budget,
training,

systems,
support,
opera2ons

dependencies
on
projects/
vendors)
Channels

Path
to

customers

Costs

People,
training,
capital,
marke2ng,
etc.

+
Objec2ve
jus2fica2on
Business
value

1.
User
&
business
value

2.
Cost
of
Delay
(urgency)

3.
risk
reduc2on/opportunity
enablement

+
Objec2ve
jus2fica2on
Lean Project Canvas
ProductMarket
Cost
of
delay

time
linear
delaycost
1,2,3,5,8,13,21 1,2,3,5,8,13,21
<Title
/
headline>

time
linear
delaycost
time
must do now
delaycost
time
logarithmic
delaycost
time
intangible
delaycost
Cost of Delay is the cost we incur by delaying delivery of a product, due to lost
revenue or unrealized cost savings.
Cost of Delay proﬁles
time
fixed date
delaycost
Kenny Rubin: Essential Scrum

42 Investment Group: building a luxury resort hotel
Goals:
• Luxury
amenities &
activities
• Destination
hotel
• Repeat
customers
• Proﬁtable in
1st year
https://www.ﬂickr.com/photos/28685147@N04/

Portfolio of Projects / Features
• 18 hole golf course

• Jacuzzi tubs in guest rooms

• Valet Parking

• Free internet access

• On-site tailor shop

• Child care centre

• Pet spa

• Mini golf
• Bungee jumping tower

• Full service spa

• Healing mud baths

• Swim with dolphins

• Concierge service

• Live music nightly

• Amusement park & roller
coaster

• Themed guest rooms

Activity 1: Build a Lean Project Canvas
• Choose 2 projects from this list at each table
• Write a lean canvas for each, working in groups of 3-4
• Problem/opportunity & existing alternatives
• customer segments
• possible solution
• business value
• cost of delay proﬁle

Estimate the relative value of projects in a portfolio
100 200 500 800 1200 2000 3000

Activity 2: Business Value Game
•Play the Business Value Game: your 2 Canvases + 4 samples
•Arrange blue cards from smallest to largest value
•Arrange canvases as shown in the sample here
•Write the business value number on each Canvas
100 200 800 1200 2000 3000
1200
1200 2000200
200

ROI calculation & project sequencing
Project Relative Value
Relative Effort
(cost)
Relative R.O.I. Sequence?
A 1200 3 400
B 800 3 267
C 2000 8 250
D 3000 40 75

Activity 3: Determine how to sequence projects
• Write the Cost number on each canvas (handout)
• Calculate Relative ROI for each canvas. Write it on
each canvas
• ROI = Value / Cost
• Sequence projects based on ROI (high to low)
• Consider Cost of Delay proﬁle: does this change
the sequence?

ROI calculation & project sequencing
Project
Relative
Value
Relative
Effort (cost)
Relative
R.O.I.
CoD Sequence?
A 1200 3 400
B 800 3 267
C 2000 8 250
D 3000 40 75

Finally
1agile42 2Innovation Games® 3Dean Lefﬁngwell: Agile Software Requirements
Whatever works best for your situation!
Not….

Photo: Rory Mizen
Highest
Paid
Person’s
Opinion
No
HiPPOs
allowed !
http://www.agile42.com/en/blog/2015/04/30/scrum-gathering-phoenix-2015-sessions/
Brad Swanson, CSC, Senior Agile Coach
brad.swanson@agile42.com
@bradswanson
Mike Caspar, CSP, Senior Agile Coach
mike.caspar@agile42.com
@mikecaspar

Reference Section: The process steps for
sequencing projects

Process for Sequencing Projects
1. Stakeholders and Product Owners prepare canvases.
Optional: limit number per stakeholder
2. Review & validate canvases for completeness &
understanding - ahead of time
3. Select appropriate group of voting stakeholders and a
neutral facilitator
4. Brief “sales pitch” for each project, based on the canvas

Process for Sequencing Projects (2)
6. Choose a baseline project/canvas, assign it a mid-range
point value. Can shift up/down later if necessary.
7. Business Value GameTM,1; assign the relative value of
each project, without considering cost/effort
1agile42 2Innovation Games®
Alternative to Biz Value Game: Buy a Feature / Prune the Product Tree 2

Process for Sequencing Projects (3)
8. Delivery teams estimate cost/effort.
9. Calculate relative ROI: value / cost
10.Sequence projects, and/or allocate investments:
1. ROI
2. cost of delay
3. people and/or resource constraints

Portfolio prioritization with lean canvas and value game

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