Essential Scrum
Essential Scrum

Chapter 16: Portfolio Planning

Most organizations want or need to produce more than one product at a time. These multiproduct organizations need a way to make economically sound choices regarding how to manage their product portfolio. They also need their portfolio management or governance process to align well with core agile practices; otherwise, there will be a fundamental disconect with the agile approach being used at the individual product level. This chapterlays out 11 strategies for portfolio plannign, grouped by scheduling, product inflow, and product outflow. It ends with a discussion of how to determine whether or not more work should be invested in in-process products.

Chapter Contents:

  • Overview
    • Timing
    • Participants
    • Process
  • Scheduling Strategies
    • Optimize for Lifecycle Profits
    • Calculate Cost of Delay
    • Estimate for Accuracy, Not Precision
  • Inflow Strategies
    • Apply the Economic Filter
    • Balance the Arrival Rate with the Departure Rate
    • Quickly Embrace Emergent Opportunities
    • Plan for Smaller, More Frequent Releases
  • Outflow Strategies
    • Focus on Idle Work, Not Idle Workers
    • Establish a WIP Limit
    • Wait for a Complete Team
  • In-Process Strategies
    • Use Marginal Economics
  • Closing