{"id":22258,"date":"2023-04-06T16:47:07","date_gmt":"2023-04-06T21:47:07","guid":{"rendered":"https:\/\/blog.planview.com\/?p=22258"},"modified":"2023-04-27T06:10:17","modified_gmt":"2023-04-27T11:10:17","slug":"intentionality-and-the-differentiating-competitive-advantage","status":"publish","type":"post","link":"https:\/\/blog.planview.com\/intentionality-and-the-differentiating-competitive-advantage\/","title":{"rendered":"The Power of Speed: How the Top 8% of Companies are Winning the Race to Deliver Business Value"},"content":{"rendered":"\n<p>Last month, Planview released the inaugural <a href=\"https:\/\/info.planview.com\/project-to-product-state-of-the-industry-_report_vsm_en_reg.html\" class=\"ek-link\">2023 Project to Product State of the Industry Report<\/a>, and it is well worth the read. It examines anonymized data from more than 3,600 value streams, representing over 38,000 individuals across the value chain from ideation to value. To my knowledge, we are the only organization with access to such a large and complex value stream data set.<\/p>\n\n\n\n<p>The data measures the <a href=\"https:\/\/www.planview.com\/resources\/articles\/what-is-value-stream-management\/\" target=\"_blank\" aria-label=\"flow of business value (opens in a new tab)\" rel=\"noreferrer noopener\" class=\"ek-link\">flow of business value<\/a> through&nbsp;all the activities&nbsp;involved in a software value stream. As a newcomer to Planview with fresh eyes, here is what jumped out at me:<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>The top-performing segment (eight percent of companies) crosscuts company age, size, industry, geography, and regulatory requirements. This debunks the perspective that business agility and successful transformation are limited to companies of a certain profile.<\/p>\n<\/blockquote>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_80 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/blog.planview.com\/intentionality-and-the-differentiating-competitive-advantage\/#Speed_Matters\" >Speed Matters<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/blog.planview.com\/intentionality-and-the-differentiating-competitive-advantage\/#An_Outcome-Based_vs_Constraints-Based_Approach_to_Transformation\" >An Outcome-Based vs. Constraints-Based Approach to Transformation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/blog.planview.com\/intentionality-and-the-differentiating-competitive-advantage\/#How_Do_You_Appreciate_the_Value_of_Business_Agility\" >How Do You Appreciate the Value of Business Agility?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/blog.planview.com\/intentionality-and-the-differentiating-competitive-advantage\/#A_Strong_Reason_For_Optimism_Looking_Forward\" >A Strong Reason For Optimism Looking Forward<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/blog.planview.com\/intentionality-and-the-differentiating-competitive-advantage\/#Personalized_Assessment_and_Roadmap_Offering\" >Personalized Assessment and Roadmap Offering<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\" id=\"h-speed-matters\"><span class=\"ez-toc-section\" id=\"Speed_Matters\"><\/span>Speed Matters<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Having worked on enterprise transformations for the past 25 years, it\u2019s not surprising to me that the majority of enterprises have not yet transformed to a product model within the last five years and achieved value delivery at a speed we\u2019d associate with digital natives and tech giants.&nbsp;&nbsp;<\/p>\n\n\n\n<p>It\u2019s hard work to get buy-in across supporting functions of a value stream. However, along the way, there is bread for the journey. This is an assignment where you get business credit for partial work, like tackling just one of your value streams end to end.<\/p>\n\n\n\n<p>When you transform one value stream, that value stream shows the improved benefits of speed to customer value, greater security, reduced errors, and risk mitigation of digital disruption. Those are important points to get on the board if that value stream is the highest economic generator for your company.&nbsp;<\/p>\n\n\n\n<p>Speaking of points, let\u2019s talk about <em>speed <\/em>of points. We see disparity for companies in the same industry, with some delivering business value via their software delivery at three times their prior speed once they start focusing on flow of business value. This is an unprecedented disadvantage for competitors. <\/p>\n\n\n\n<p>I am not just referencing improvements via Agile and DevOps, although they are a piece of the puzzle. I\u2019m also referencing upstream activities, software development technical impediments, and post-build activities. Impediments to speed surface across the entire value stream when organizations have the right instrumentation for an end-to-end view and measure flow of value.&nbsp;<\/p>\n\n\n\n<p>Fresh off the pain of my poor Boilermakers loss in the NCAA tournament, I reflect on what a startling competitive disadvantage you\u2019re at if your competitor can score buckets at three times your team&#8217;s speed. I don\u2019t know much about playing badminton, hurling, cricket, or buzkashi, but I\u2019ll bet three times the speed is better every time. <\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>The speed of software delivery is either a competitive advantage or a startling disadvantage in the digital age.&nbsp;<\/p>\n<\/blockquote>\n\n\n\n<p>Speed feels risky, but it\u2019s actually risk mitigating as it enables quick response to disruptions &#8212; like the need to exit Russia, the 11th largest economy in the world, within weeks. It enables a company to adopt new technology disruptors like ChatGPT and leverage them in operations, as opposed to being disrupted by your competitor, which incorporates the advantage faster.&nbsp;&nbsp;<\/p>\n\n\n\n<p>Speed is customer obsessed as it shortens the cycle between customer input and delivery of a customer product feature. As Adrian Cockroft, AWS VP of Cloud Architecture Strategy, shared on the <a href=\"https:\/\/projecttoproduct.org\/podcast\/adrian-cockcroft\/\" class=\"ek-link\">Mik + One podcast<\/a>, \u201cWhen you&#8217;re looping faster than your competitors, you get to disorientate them.\u201d This is a phenomenon that Amazon competitors have certainly felt.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"An_Outcome-Based_vs_Constraints-Based_Approach_to_Transformation\"><\/span>An Outcome-Based vs. Constraints-Based Approach to Transformation<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>When I worked for AWS, I saw two approaches for transformation\u2014an outcome-based approach and a constraints-based approach. At AWS, I assisted customers in their goals of moving out of data centers to realize the business agility benefits of modernized infrastructure. Together, we\u2019d complete a Migration Readiness Assessment (MRA) based on thousands of other AWS engagements.&nbsp;&nbsp;<\/p>\n\n\n\n<p>I saw customers experience outstanding success. I also saw customers start out enthusiastically and then grind down to the dreaded &#8220;cloud stall&#8221; as they encountered people issues, security issues, approval ticketing process, etc.&nbsp;&nbsp;<\/p>\n\n\n\n<p>We\u2019d review the customer\u2019s cultural, process, and technology environment as part of the MRA and point out what would bite them four months, six months, and 18 months in the future. Some of them would take this report and turn it into their roadmap on what to get right first. <\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>They designed intentionally for the success of their transformation. <\/p>\n<\/blockquote>\n\n\n\n<p>With other customers, I didn\u2019t effectively carry the message across the organization, and they would stick the recommendations in a drawer. Six months later, after they\u2019d hit cloud stall, they\u2019d ask us for help, and we\u2019d pull out the recommendations from our assessment and review it. Some would turn it into their roadmap on how to address cloud stall, and some would stick it back in the drawer.&nbsp;&nbsp;<\/p>\n\n\n\n<p>The paradigm I started showing customers was a simple slide on the difference between an outcome-based approach to transformation and a constraint-based approach.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Outcome-based approach<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Define and quantify desired outcomes with the business<\/li>\n\n\n\n<li><span style=\"color: initial; font-family: -apple-system, BlinkMacSystemFont, &quot;Segoe UI&quot;, Roboto, Oxygen-Sans, Ubuntu, Cantarell, &quot;Helvetica Neue&quot;, sans-serif;\">Design approach proportionate to desired outcomes<\/span><\/li>\n\n\n\n<li><span style=\"color: initial; font-family: -apple-system, BlinkMacSystemFont, &quot;Segoe UI&quot;, Roboto, Oxygen-Sans, Ubuntu, Cantarell, &quot;Helvetica Neue&quot;, sans-serif;\">Design delivery model proportionate to desired outcomes and anticipated benefits<\/span><\/li>\n\n\n\n<li>Taking action only on what progresses the outcome<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Constraint-based approach<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>See what we can do with what we have<\/li>\n\n\n\n<li><span style=\"color: initial; font-family: -apple-system, BlinkMacSystemFont, &quot;Segoe UI&quot;, Roboto, Oxygen-Sans, Ubuntu, Cantarell, &quot;Helvetica Neue&quot;, sans-serif;\">With what we have, let\u2019s move something<\/span><\/li>\n\n\n\n<li><span style=\"color: initial; font-family: -apple-system, BlinkMacSystemFont, &quot;Segoe UI&quot;, Roboto, Oxygen-Sans, Ubuntu, Cantarell, &quot;Helvetica Neue&quot;, sans-serif;\">Activities and experiments taken to demonstrate progress to leadership<\/span><\/li>\n\n\n\n<li>False starts and cloud stall<\/li>\n<\/ul>\n\n\n\n<p>When I see that top eight percent, I see intentionality. I see companies recognizing that speed is the differentiating competitive advantage in business. They have that awareness, and they organize around it. They design for speed of business. When faced with tradeoffs in design, speed to value is the first priority.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_Do_You_Appreciate_the_Value_of_Business_Agility\"><\/span>How Do You Appreciate the Value of Business Agility? <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In his book <em>War and Peace and IT<\/em>, Mark Schwartz <a href=\"https:\/\/itrevolution.com\/product\/war-and-peace-and-it\/\" target=\"_blank\" aria-label=\"describes it best for CFOs (opens in a new tab)\" rel=\"noreferrer noopener\" class=\"ek-link\">describes it best for CFOs<\/a>\u2014it is the most akin to purchasing an option at a fraction of the cost of the value you may exercise in the future. Designing for business agility, designing for customer listening, designing for speed of tech change, designing for measurement of value streams so that you can optimize\u2014with these investments, you have cheaply acquired the rights to future opportunities that you would otherwise not be able to respond to.&nbsp;&nbsp;<\/p>\n\n\n\n<p>You now have the option of responding to customer sentiment and rolling out a product faster than a competitor. You have the option of rapid response to a security incident. You have lowered the future cost of experimentation and learning which initiatives will yield value.&nbsp;<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>The pace of transformation matters. <\/p>\n<\/blockquote>\n\n\n\n<p>All company execs will agree that transformation and business agility is imperative. The pace with which they invest to get there varies greatly. How many months is it fine to have a competitor delivering business value three times as fast as your company?<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"A_Strong_Reason_For_Optimism_Looking_Forward\"><\/span>A Strong Reason For Optimism Looking Forward<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>When the industry started down this path, software was used by executives for managing objectives and key results (OKRs). Strategic decision making was disconnected from other essential software such as resource management, portfolio management, spreadsheets, and value stream management software.<\/p>\n\n\n\n<p>Executives lacked visibility into how value stream management connected or mattered to their OKRs. Planview\u2019s software was essential for executives in <a href=\"https:\/\/www.planview.com\/why-planview\/\" class=\"ek-link\">connecting the execution of work<\/a> to their strategy. Via the acquisition of TaskTop, executives can now <a href=\"https:\/\/www.planview.com\/products-solutions\/solutions\/value-stream-management\/\" target=\"_blank\" aria-label=\"trace and see the impact (opens in a new tab)\" rel=\"noreferrer noopener\" class=\"ek-link\">trace and see the impact<\/a> of the efficiency of delivery of value rolled up to their OKRs (and their executive compensation metrics).<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>Organizations snap back to old habits unless they have consistent tension pulling them forward. <\/p>\n<\/blockquote>\n\n\n\n<p>Executive compensation metrics decisively steer companies\u2019 direction. In an <a href=\"https:\/\/www.planview.com\/resources\/case-study\/banking-on-flow-metrics-the-bank-of-new-zealand\/\" target=\"_blank\" aria-label=\"interview with the Bank of New Zealand (opens in a new tab)\" rel=\"noreferrer noopener\" class=\"ek-link\">interview with the Bank of New Zealand<\/a>, we learned that they include metrics on the improvement of value stream delivery in their board-level reporting. This is the right tension needed to add accountability to transformation. The ability for executives to easily check in on success of delivery of value tied to their OKRs attracts allies for transformation. It makes speed of value delivery visible to CFOs, Line of Business (LOB) leaders, and Chief Strategy Officers.&nbsp;&nbsp;<\/p>\n\n\n\n<p>Many of our customers are weathering economic uncertainty. Many readers may find the above sentiment interesting but have been handed a cost-cutting mandate and a number to hit. They are not going to convince their organization to transform today but need to navigate this season. We see a lot of customer executives strategically right-sizing their organization where they are trimming long-term experiments that are not yielding the desired results. They are growing but selectively funding R&amp;D with a closer lens. <\/p>\n\n\n\n<p>I have multiple customer requests to provide insight on this topic. I will follow up this post with a perspective on sensitivity analysis, decision making, and difficult prioritization in an era of growing constraints from hip joints to oil rigs.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Personalized_Assessment_and_Roadmap_Offering\"><\/span>Personalized Assessment and Roadmap Offering <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Are you struggling to get the most from your project-to-product shift? You can <a aria-label=\"accelerate the remainder of your journey (opens in a new tab)\" href=\"https:\/\/www.planview.com\/lp\/p2p-personalized-assessment\/\" target=\"_blank\" rel=\"noreferrer noopener\" class=\"ek-link\">accelerate the remainder of your journey<\/a> with appropriate prioritization, a concrete roadmap, and a data-driven approach.<\/p>\n\n\n\n<p>Leverage the framework laid out by Planview CTO, Dr. Mik Kersten, in his bestselling book,&nbsp;<em>Project to Product<\/em>, and its practical and successful application with hundreds of complex enterprises. Mik and his team have had the closest seat at the table and can apply their hard-earned insights and best practices to your specific corporate realities.<\/p>\n\n\n\n<p>In this complimentary offering, you will work with Planview experts to build a practical roadmap to operationalize and sustain a mature product model. <a href=\"https:\/\/www.planview.com\/lp\/p2p-personalized-assessment\/\" class=\"ek-link\">Get the results you should be getting<\/a> with your Personalized Assessment and Roadmap offering.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>A compelling statistic from the 2023 Project to Product State of the Industry Report debunks the perspective that business agility and successful transformation are limited to companies of a certain profile.<\/p>\n","protected":false},"author":248,"featured_media":22259,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_editorskit_title_hidden":false,"_editorskit_reading_time":6,"_editorskit_is_block_options_detached":false,"_editorskit_block_options_position":"{}","footnotes":""},"categories":[9543],"tags":[],"class_list":["post-22258","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-value-stream-management"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.8 (Yoast SEO v26.8) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Speed Wins: How the Top 8% of Companies Deliver Value<\/title>\n<meta name=\"description\" content=\"Learn why designing for speed of business matters. Plus, the difference between transformations based on outcomes vs. constraints.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/blog.planview.com\/intentionality-and-the-differentiating-competitive-advantage\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Power of Speed: How the Top 8% of Companies are Winning the Race to Deliver Business Value\" \/>\n<meta property=\"og:description\" content=\"Learn why designing for speed of business matters. 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