I think one of the biggest challenges we face with Agile and the frameworks we use is that the concept of a project has not gone away, it’s even referenced in the Agile Manifesto. Yet when we talk about how best to maximize agility we talk about flow which is much more aligned with lean principles.

Business leaders need to have things presented to them in predictable patterns and projects provide that, having a set scope, and a start and end date. Simple, easy to understand, yet leaders also face the drama that unfolds when key projects fall behind, go over budget, or fail to deliver the benefits, which causes them typically to concede on scope in favor of getting something to the customer.

There is a solution, it’s to stop thinking in a project mindset and focus on value delivery. The sad fact is that ALL companies overpay for the projects that they fund. Why? Because every project has a tacit assumption baked in — The original scope of requirements are all treated as equal when they are not. Projects often are filled with extra features so that they have enough buzz associated with them that they will get approved.

If you want to maximize your technology investment it requires two changes to your management approach:

1. Develop a holistic valuation model that is part of your intake process.

2. Engage in close inspection of value delivery.

These two changes sound easy but are where your most entrenched processes and people are located. Think about how these two changes will impact your PMO. A group that is responsible for managing the organization’s projects through top-heavy and low-engagement management. Think I’m wrong? I was a project manager long before I became an agilest, I don’t make these statements without a deep understanding of what PMOs are charged with at most organizations and how they operate and I’ve seen no substantive changes in many of the organizations I’ve coached, some are better, but the project management mindset exists.

Moving to a flow-based approach aligned with lean agile principles will require a significant change in your funding model. It will also move you away from tracking dates and budgets and over to tracking value and investment. It will treat your technology costs as a long-term asset, not the cost center approach that still exists today in agile companies.

And as a leader who wants predictable results, your focus is not on predictable progress towards the fixed scope and end-date projects and instead is focused on ensuring that the organization is optimized for value delivery, which means removing the impediments that exist in the flow of work to your teams.

Everyone in your organization should be asking themselves one simple question — Is what we are doing improving our ability to deliver value quickly? If the answer is no, then you have a starting place to improve value flow. This means removing organizational impediments, removing managerial hierarchy (not management itself), providing teams with the necessary tools to develop high-quality products, and ensuring that teams have a manageable amount of work.

I’ve developed a valuation model, QValue, that aligns strategy to quantifiable outcomes. When we align value to outcomes, we also have a clear view as to what we need to change to optimize value delivery efficiency. To learn more about QValue go to www.soundagile.com

Join me on April 12th at 5:30pm if you would like to learn more about QValue. Signup here — QValue Sign-up — SoundAgile Consulting