It is not (just) about the cost, it is about the value you create for the customer
Agile product development
It all starts with the customer – find out what they want and make it for them.
Sometimes it is easy: a vaccine or a cure for a disease, clean water, affordable housing. And sometimes it is difficult.
Agile product development often means that we learn what the customer wants through building a minimal product and investigating the way people adopt and use it.
Short iterations and continuous deployment help us in learning about what the customer wants.
Monitoring value creation
This is a big change from the old way of thinking. In a project, we determine up-front what the value will be and only monitor cost and money expended when realizing the project. Tracking in great detail through time-sheets and detailed cost centers.
Monitoring agile product development requires focusing on the creation of value, of really understanding value.
That is why the Project Management Office evolves to a Value Management Office in an agile environment.
Lean Portfolio Management
Companies and other organizations create value for the customer. They need to decide their strategy, where they want to be and how they will get there.
Lean Portfolio Management serves to capture this strategy and translate it into approved initiatives and budgets.
The budgets are allocated too value streams that can decide how to use them, so we can have agility in budget use. The Value Management Office and Lean Portfolio Management provide governance.
The lean-agile center of excellence
Establishing a lean-agile competence center is a key success factor in your agile transformation. Agile coaches and other key stakeholders of the transformation work together to introduce and continuously improve lean-agile practices. They have their own backlog and work as an agile team themselves.
The LACE (Lean-Agile Center of Excellence) can best be closely associated with the Value Management Office, to help keep focus on the customer and on value creation.