A

accountability, 166–168

activity measures, 81

adaptive leadership, 54, 189–209

adaptive mindset in, 192–194

boldness in, 202–204

for customer value, 11–16

inspiration in, 207–208

leading change, 194–195

managing anxiety, 195–196

overcoming culture of fear, 196–198

paradoxes in, 205–207

sustainability, 16–18

thin-slice change strategy, 198–201

what not to change, 201–202

adaptive mindset

encouraging, 192–194

examples, 211–212

agile product backlogs

creating, 113

Minimum Viable Product (MVP), 113–114

thin slicing, 115–119

defined, 111

agility, scaling, 7–8

antibodies, 201

anxiety, managing, 195–196

asset ecosystems, 42–44

autonomous teams, 55–56, 158–162, 214. See also collaborative decision making

accountability, 166–168

characteristics of, 159

delegation, 160

empowerment, 160–161

environment for fostering, 169

outcomes and boundaries, 161–162

self-sufficiency, 162–164

trust relationships, 165–166

B

backlogs. See Business As Usual (BAU); strategic backlog management

BAU. See Business As Usual (BAU)

bet teams, 173–174

bets

adding new, 69–70

defined, 63–64

products and, 104–106

strategic portfolio ownership and, 66–68

boldness in leadership, 202–204

Brand, Stewart, 42–43

business

technology and, 23–26

technology strategy development

investment decisions for core enterprise systems, 38

people for, 45–47

seismic shifts and trends, 30–32

steps in, 26–29

tech radar creation, 33–35

technical debt reduction, 35–37

Business As Usual (BAU)

combining with strategic portfolio

component strategies, 135

escalation processes, 141–142

imperfect prioritization, 142–143

prioritization, 131, 133–134

reducing unnecessary work, 136–137

relative versus absolute value, 135

reserved capacity, 130–131

team prioritization, 137–138

traditional solutions, 132–133

value and effort scoring, 139–141

work-in-progress (WIP), 138–139

in Lean Value Tree (LVT), 124–125

types of work, 125–127

business benefits, 81

business capabilities

example, 128

organizational alignment to, 183–186

portfolios for, 128–129

business platforms, defined, 38–40

C

capabilities

assessing, 213

business capabilities, 128–129, 183–186

technical capabilities, 129–130

types of, 128

Chambers, John, 21

change leadership. See adaptive leadership

CoD (Cost of Delay), 88–90, 141

collaborative decision making, 57, 175–183

in autonomous teams, 165–166

diverse perspectives, 179

facilitators for, 181

openness to ideas, 180–181

self-sufficient knowledge, 177–178

slow decision making, 181–182

trust and respect, 179–180

willingness to participate, 182–183

Collins, Jim, 49

competitive advantage, 110

compliance, 165–166

core enterprise systems, investment decisions for, 38

Cost of Delay (CoD), 88–90, 141

cross-functional teams, transitioning to self-sufficient teams, 162–164

culture of fear, overcoming, 196–198

customer adoption plans, 110

customer goals, 108–109

customer journeys, 109

customer type categorization, 73

customer value, 11–16, 80–81

D

dashboards for PVR (Periodic Value Reviews), 155

decision making, collaboration in, 57, 175–183

in autonomous teams, 165–166

diverse perspectives, 179

facilitators for, 181

openness to ideas, 180–181

self-sufficient knowledge, 177–178

slow decision making, 181–182

trust and respect, 179–180

willingness to participate, 182–183

defect repairs, 126, 134

defining product, 106–107

delaying detail, 137

delegation, 160

delivery teams, 174

demand shaping, 136–137

digital enterprises, defined, 2

digital technology platforms

asset ecosystems, 42–44

defined, 38–40

experimentation, 44–45

friction reduction, 40–42

direct priority assignment, 140

direct value assignment, 140

discovery workshops, 104

diverse perspectives, 179

E

EDGE

defined, 3

operating model, 4, 5–7

principles of, 49–57

adaptive leadership, 54

autonomous teams, 55–56

collaborative decision making, 57

lightweight planning and governance, 53

outcome-based strategy, 51–52

value-based prioritization, 52–53

teams in, 169–170

edge of chaos, 3, 162, 215

elevator pitches, 107

empowerment, 160–161

Envision-Explore mindset, 19, 192–194, 212–213

escalation processes, 141–142

executive teams, 173–174

experimentation

boldness in, 202–204

requirements for, 44–45

F

facilitators, 181

fitness function, 11–16, 28

fractals, 200

friction reduction, 40–42

funding allocation in Lean Value Tree (LVT), 71–72

G

geographic/market area categorization, 76

goal teams, 173–174

goals

adding new, 69

defined, 63

strategic portfolio ownership and, 66–68

governance

lightweight, 53, 145–155

establishing, 146–151

Periodic Value Reviews (PVR), 149–152, 155

rebalancing portfolio, 152–154

objectives of, 145–146

grit, 208

H

history of Tech@Core, 23–26

hypotheses, 108

I

imperfect prioritization, 142–143

initiative teams, 173–174

initiatives

adding new, 69–70

defined, 64

products and, 103

strategic portfolio ownership and, 66–68

inspiration in leadership, 207–208

integrated backlogs

components of, 123–124

prioritization, 122–123

investment decisions for core enterprise systems, 38. See also Lean Value Tree (LVT)

K

key measures of success, 108

L

lagging measures, 82–83

leadership

adaptive, 54, 189–209

adaptive mindset in, 192–194

boldness in, 202–204

for customer value, 11–16

inspiration in, 207–208

leading change, 194–195

managing anxiety, 195–196

overcoming culture of fear, 196–198

paradoxes in, 205–207

sustainability, 16–18

thin-slice change strategy, 198–201

what not to change, 201–202

trust in, 49–50

leading measures, 82–83

Lean Value Tree (LVT), 59–77, 213

bets

adding new, 69–70

defined, 63–64

Business As Usual (BAU) in, 124–125

funding allocation, 71–72

goals

adding new, 69

defined, 63

growing/pruning, 68

initiatives

adding new, 69–70

defined, 64

portfolio categorization, 72–76

portfolio descriptions, 65

product mindset and, 102–106

bets and products, 104–106

initiatives and products, 103

strategic portfolio ownership, 66–68

strategy and, 61–62

terminology, 62

legacy systems. See also Business As Usual (BAU)

defect repairs, 126

investment decisions for, 38

small enhancements, 125–126

technical debt from, 35–37, 127

lightweight planning and governance, 53, 145–155

establishing, 146–151

Periodic Value Reviews (PVR), 149–152, 155

rebalancing portfolio, 152–154

LVT. See Lean Value Tree (LVT)

M

Measures of Success (MoS), 79–85, 141

activity measures, 81

for Business as Usual (BAU), 127

business benefits, 81

customer value, 80–81

importance of, 79–80

leading and lagging measures, 82–83

number of, 83–84

portfolio differentiation, 84–85

Minimum Viable Product (MVP), 113–114

Moore, Geoffrey, 21

N

next-generation operating models, building, 5

O

openness to ideas, 180–181

organizational alignment to business capabilities, 183–186

organizational responsiveness, 9–10

outcome-based strategy, 51–52

P

paradoxes in leadership, 205–207

Periodic Value Reviews (PVR), 149–152, 155

Plan-Do mindset, 19, 192–194, 212–213

platforms

defined, 38

types of, 39–40

portfolio teams, 172–174

portfolios. See value-driven portfolios

principles

of EDGE, 49–57

adaptive leadership, 54

autonomous teams, 55–56

collaborative decision making, 57

lightweight planning and governance, 53

outcome-based strategy, 51–52

value-based prioritization, 52–53

importance of, 49–50

prioritization. See value-based prioritization

product blueprints, 214

defining product, 106–107

elements of, 107–110

visualizing and communicating, 112–113

what it is and is not, 110–112

product life cycle categorization, 74–75

product mindset, 95–120

agile product backlog creation, 113

Minimum Viable Product (MVP), 113–114

thin slicing, 115–119

collaboration with value-driven portfolio team, 101–102

Lean Value Tree (LVT) and, 102–106

bets and products, 104–106

initiatives and products, 103

organizational role, 99

product blueprints

defining product, 106–107

elements of, 107–110

visualizing and communicating, 112–113

what it is and is not, 110–112

shift from project mindset, 96–98

skills required, 99–101

project mindset, shift to product mindset, 96–98

prototypes, 109

PVR (Periodic Value Reviews), 149–152, 155

Q

quality, speed versus, 41–42

quick quartiling, 137

R

rebalancing portfolio, 152–154

relative value scoring, 86–88, 135

reserved capacity, 130–131

respect within teams, 179–180

responsiveness of organization, 9–10

S

safety, as cultural trait, 50

scaling agility, 7–8

Schwab, Klaus, 1–2

self-sufficient knowledge, 177–178

self-sufficient teams, 162–164, 214

skills for product mindset, 99–101

slow decision making, 181–182

small enhancements, 125–126

speed, quality versus, 41–42

stories, 123

strategic backlog management, 90

combining with Business As Usual (BAU) portfolio

component strategies, 135

escalation processes, 141–142

imperfect prioritization, 142–143

prioritization, 131, 133–134

reducing unnecessary work, 136–137

relative versus absolute value, 135

reserved capacity, 130–131

team prioritization, 137–138

traditional solutions, 132–133

value and effort scoring, 139–141

work-in-progress (WIP), 138–139

integrated backlogs

components of, 123–124

prioritization, 122–123

stories, 123

strategic portfolio ownership, 66–68

strategy, Lean Value Tree (LVT) and, 61–62

sustainability, 16–18

T

target customers, 108

teams

autonomous, 55–56, 158–162, 214. See also collaborative decision making

accountability, 166–168

characteristics of, 159

delegation, 160

empowerment, 160–161

environment for fostering, 169

outcomes and boundaries, 161–162

self-sufficiency, 162–164

trust relationships, 165–166

collaboration between product and portfolio teams, 101–102

in EDGE, 169–170

portfolio, 172–174

prioritization, 137–138

Value Realization Team (VRT), 170–171

tech radar creation, 33–35

tech safety, 50

Tech@Core, 21–47, 214

defined, 22

digital technology platforms

asset ecosystems, 42–44

defined, 38–40

experimentation, 44–45

friction reduction, 40–42

history of, 23–26

technology strategy development

investment decisions for core enterprise systems, 38

people for, 45–47

seismic shifts and trends, 30–32

steps in, 26–29

tech radar creation, 33–35

technical debt reduction, 35–37

technical capabilities

example, 128

portfolios for, 129–130

technical debt chart, 29, 37

technical debt reduction, 35–37, 127, 134

technology

business and, 23–26

strategy development

investment decisions for core enterprise systems, 38

people for, 45–47

seismic shifts and trends, 30–32

steps in, 26–29

tech radar creation, 33–35

technical debt reduction, 35–37

thin slicing

agile product backlog creation, 115–119

change strategy, 198–201

three-horizons model categorization, 73–74

time horizons, 29, 32–33

trust

in leadership, 49–50

respect and, 179–180

within teams, 165–166

U

urgency horizons, 32–33

V

Value Realization Team (VRT), 170–171

value-based prioritization, 52–53, 85–93

challenges, 91

combining strategic and BAU portfolios, 131, 133–134

Cost of Delay (CoD), 88–90, 141

direct priority assignment, 140

direct value assignment, 140

escalation processes, 141–142

imperfect prioritization, 142–143

integrated backlogs, 122–123

Measures of Success (MoS), 141

relative value scoring, 86–88, 135

strategic backlog management, 90

team prioritization, 137–138

value and effort scoring, 139–141

work-in-progress (WIP), 138–139

value-driven portfolios

business capabilities, 128–129

collaboration with product teams, 101–102

Lean Value Tree (LVT), 59–77

bets, 63–64, 69–70

funding allocation, 71–72

goals, 63, 69

growing/pruning, 68

initiatives, 64, 69–70

portfolio categorization, 72–76

portfolio descriptions, 65

strategic portfolio ownership, 66–68

strategy and, 61–62

terminology, 62

Measures of Success (MoS), 79–85

activity measures, 81

business benefits, 81

customer value, 80–81

importance of, 79–80

leading and lagging measures, 82–83

number of, 83–84

portfolio differentiation, 84–85

organizational responsiveness to, 9–10

rebalancing, 152–154

technical capabilities, 129–130

value-based prioritization, 85–93

challenges, 91

Cost of Delay (CoD), 88–90

relative value scoring, 86–88

strategic backlog management, 90

VRT (Value Realization Team), 170–171

W

waterfall projects, speed versus quality, 41–42

Westerman, George, 22

willingness to participate, 182–183

work-in-progress (WIP), 138–139