Dave Neuman Strategy Mapping: Clear path to a successful Agile strategy Twitter: @daveneuman LinkedIn: https://www.linkedin.com/in/daveneuman

Why are we implementing agility?

My boss said

The execs said

My PMO said

we could

I want to

We want to

We need to

Speed to market Let’s try it

It’s faster

It’s better

Higher quality More trust

More productive

BUT What’s in it for me?

And them? And us?

AND

What’s it going to take?

We need a strategy!

A strategy describes how an organization intends to create

value for shareholders, customers, and employees.

I still don’t get it!

Why are we going Agile?

Where are we starting?

We need a map!

How about a strategy map?

A strategy map is a general representation of a strategy that

visualizes cause-and-effect relationships of actions and

desired outcomes.

Robert Kaplan and David Norton (2004) Strategy Maps: Converting Intangible Assets to Tangible Outcomes

Kaplan & Norton Strategy Map Template

Robert Kaplan and David Norton (2004) Strategy Maps: Converting Intangible Assets to Tangible Outcomes

Financial Perspective

Customer Perspective

Internal Perspective (Processes)

Learning & Growth Perspective (People)

Objectives &

Outcomes

Actions Intangible

Assets

Tangible Outcomes

Kaplan & Norton Strategy Map Template

Financial Perspective

Long-term Shareholder Value

Productivity Growth

Customer Perspective

Relationship Product / Service Attributes Image

Internal Perspective

Customer Management

Operations Management Innovation Regulatory /

Social

Learning & Growth Perspective

Information Capital

Human Capital

Organization Capital

Skills Training

Knowledge

Systems Databases Networks

Culture Leadership Alignment Teamwork

Kaplan & Norton Strategy Map Template

Robert Kaplan and David Norton (2004) Strategy Maps: Converting Intangible Assets to Tangible Outcomes

Skills Training Knowledge

Systems Databases Networks

Strategy Map Example – IT Organization Level Fu

ture

Ori

enta

tion

Pers

pect

ive

Ope

ratio

nal E

xcel

lenc

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rspe

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stom

er /

End

Use

rPe

rspe

ctiv

eIT

Val

uePe

rspe

ctiv

e

MIC-MAIC IT 2012 Strategy Map“Our  mission  in  Specialty  IT  is  to  enable  Markel  to  grow  and  sustain  its  specialty  insurance  market  leadership  through  effective development, delivery, and operation of

technology platforms and services that meet the needs of customers and partners today and provide innovative opportunities for Markel in the future.”

Sustained shareholder value

Manage unit cost of information technology

Maximize business unit value creation

Provide innovative opportunities

Attract and retain skilled

people

Focus on career development

Acquire skills in enabling

technologies & practices

Build strong leaders

Build process discipline

Build a high performance

culturePromote a culture of learning & innovation

Manage IT as a business

Realize economies

of scale

Manage service quality

Standardize platforms &

architectures

Effectively support end

users

Optimize IT internal

processes

Improve business

productivity

Understand business

unit strategies

Understand emerging

technologies

Propose enabling solutions

Manage risk w/ effective

controlsDrive

innovation

Deliver on time and as committed

Partner with others

Deliver quality solutions

Demonstrate a competitive cost

model

Deliver quality service

Achieve business unit strategies

Do the right thing at the right time

Competency Credibility Contribution

Focus for this year

I see strategy mapping working at the organizational level,

but how does it apply to agility?

Again, why are we implementing agility?

What value are we generating for shareholders, customers,

and employees?

What knowledge and practices do we need to have?

Strategy Map Example – Agile Adoption Reduced&Time&to&Market& Increase&Wallet&Share&Financial&

Customer&

Internal&

Processes&

Learning&&&

Growth&

Backlog&

Grooming&

Market&

research&

Usability&

TesCng&

Cross&FuncConal&

Teams&

Lean&Thinking&Systems&Thinking&

CollecCve&

Ownership&

Product&

Planning&

Product&Vision&UserHcentered&

Design&

Story&Mapping&Sprint&Planning&

Engineering&

Process&Sprint&Reviews&

RetrospecCves&

User&Stories&

ConCnuous&

Improvement&

Engineering&

PracCces&

Team&

FormaCon&

IteraCve&

Delivery&

Early&Feedback&

ConCnuous&

Delivery&

Release&

Planning&

Automated&

TesCng&Methods&Product&Owner&

Scrum&Master&

Fast&Feedback&

Now its YOUR turn :)

Let’s map an Agile Adoption Strategy

1.  Prepare map template & grab supplies 2.  Identify financial objectives 3.  Identify customer value propositions that drive

financial objectives 4.  Identify internal processes (practices) needed

to deliver customer value propositions 5.  Identify the knowledge, skills, and

organizational elements needed to execute the internal processes

Strategy Mapping Process

With a strategy map in hand…

now what???

Strategy Map – A Communication Tool

•  Single-page view

•  Alignment

•  Education

•  Factors

•  Indicators

•  Cause-and-effect

•  Focus

•  Priorities

Strategy Map – Macro Level Assessment

Robert Kaplan and David Norton (2004) Strategy Maps: Linking Intangible Assets to Tangible Outcomes

Financial Perspective

Customer Perspective

Internal Perspective (Processes)

Learning & Growth Perspective (People)

Lagging Indicators

Leading Indicators

How are we doing?

Reduced&Time&to&Market& Increase&Wallet&Share&Financial&

Customer&

Internal&

Processes&

Learning&&&

Growth&

Backlog&

Grooming&

Market&

research&

Usability&

TesCng&

Cross&FuncConal&

Teams&

Lean&Thinking&Systems&Thinking&

CollecCve&

Ownership&

Product&

Planning&

Product&Vision&UserHcentered&

Design&

Story&Mapping&Sprint&Planning&

Engineering&

Process&Sprint&Reviews&

RetrospecCves&

User&Stories&

ConCnuous&

Improvement&

Engineering&

PracCces&

Team&

FormaCon&

IteraCve&

Delivery&

Early&Feedback&

ConCnuous&

Delivery&

Release&

Planning&

Automated&

TesCng&Methods&Product&Owner&

Scrum&Master&

Fast&Feedback&

Strategy Map – Action Planning & Coaching

Visual management of tactical coaching and improvement activities driving outcomes

Strategy Map – Strategic Action Planning Fu

ture

Ori

enta

tion

Pers

pect

ive

Ope

ratio

nal E

xcel

lenc

ePe

rspe

ctiv

eCu

stom

er /

End

Use

rPe

rspe

ctiv

eIT

Val

uePe

rspe

ctiv

e

MIC-MAIC IT 2012 Strategy Map“Our  mission  in  Specialty  IT  is  to  enable  Markel  to  grow  and  sustain  its  specialty  insurance  market  leadership  through  effective development, delivery, and operation of

technology platforms and services that meet the needs of customers and partners today and provide innovative opportunities for Markel in the future.”

Sustained shareholder value

Manage unit cost of information technology

Maximize business unit value creation

Provide innovative opportunities

Attract and retain skilled

people

Focus on career development

Acquire skills in enabling

technologies & practices

Build strong leaders

Build process discipline

Build a high performance

culturePromote a culture of learning & innovation

Manage IT as a business

Realize economies

of scale

Manage service quality

Standardize platforms &

architectures

Effectively support end

users

Optimize IT internal

processes

Improve business

productivity

Understand business

unit strategies

Understand emerging

technologies

Propose enabling solutions

Manage risk w/ effective

controlsDrive

innovation

Deliver on time and as committed

Partner with others

Deliver quality solutions

Demonstrate a competitive cost

model

Deliver quality service

Achieve business unit strategies

Do the right thing at the right time

Competency Credibility Contribution

Focus for this year

Incorporate actions into annual strategic plans (e.g. IT, biz, etc.)

Strategy Map – Micro Level Assessment

Leading & Lagging indicators for all factors in the map

Strategy Map – Action Planning & Coaching

Agile coaching gets exponentially complex at scale

Strategy Mapping Summary

•  Developed by Kaplan and Norton after the Balanced Scorecard

to tie actions with outcomes being measured

•  Simple model incorporates four perspectives: financial,

customer, internal processes, and learning & growth

•  Visualizes cause-and-effect relationships between actions and

outcomes

•  Applies at organizational (macro) levels and with sub-

strategies (micro)

•  Enhances communication, education, assessment, action

planning and coaching

Done.

Happy mapping!

Questions?