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Smarter S.M.A.R.T. ObjectivesFor SAFe v5 Business Agility. Evolving the language ofobjectives.1

Scott FrostSAFe Fellow and SPCTwith GTP Partner,LinkedIn & Twitter: GetFrostyScott.m.Frost@Accenture.com2

Starting S.M.A.R.T. in SAFe Began with Teams Scaled Agile, Inc.3

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Achieving a state of business agility meansthat the entire organization—not justdevelopment—is engaged in continually andproactively delivering innovative businesssolutions faster than the competition.Source: Introduction to Business Agility SAFe v5.0, Scaled Agile Inc.5

Becoming S.M.A.R.T.-er withObjectives in Business Agility SAFe v5 Scaled Agile, Inc.6

Strategy, Context, High Complexity makes Value Delivery DifficultLarge companies often have multiple Portfolios, each with Run & Grow Priorities7

Assessing Enterprise Strategies into Investment Horizons & Zones1 Horizon 1 – Focus on Performance Achievement Performance Zone – 90% of Revenue, 100% of Profits Productivity Zone – Enabling corporate functions notTransformationZone Catch the next Wave! Ruthless PrioritizationPerformanceZone Make the Number! Profitable Growthdirectly accountable for material revenueHorizon2 Horizon 1Horizon 2 – Scaling New Growth Transformation Zone – Where innovation goes to bescaled to material size3 2Horizon 3 – Emerging Disruptive Innovation Incubation Zone – experimenting to modernize to fend offIncubationZoneProductivityZone Position for next Wave BreakthroughInnovation Make it all work Systems & ProgramsHorizon3Horizon1disruptive attacksSource: Geoffrey Moore’s 4 Zone Model from “Zone to Win”8

Zone-to-Enterprise Strategies with SAFe’s Investment Horizons Mapping Horizons is the firstof 4 major guardrails whichneed to be in place to movetoward funding valuestreams in a Lean-PortfolioOptions forGrowth3Scaling YourEmergingBusiness2Extending &Defending YourCore1Maximize worknot done; shutit down1 The other 3 guardrails are:2. Apply capacity allocation tooptimize value integrity3. Approve significantinitiatives4. Continuous businessowner engagementEnterpriseInitiativesSources: Geoffrey Moore’s Zone to Win and Scaled Agile Inc. Investment HorizonsAdapted to Scaled Agile Inc. horizon views9

Prioritized Enterprise Strategies inform Portfolio(s) & Value Streams Help Portfolio align solutioninvestments with horizons Influence budgets &guardrails Insights for Epicdecomposition to achievevision Alignment aroundmeasurable & ambitiousgoalsInvestmentStrategiesCreateInform10

Enterprise Strategies Inform Portfolio Strategic Themes defined by OKRsOKR Formula:“I will (Objective) as measured by (Key Result) “O BJECTIVE K EYESULTSRMemorable qualitativedescriptions of what youwant to achieve?How you will measureyour progress toward theobjective?Source: felipecapstro.com/en/okr/what-is-okr/11

OKRs – Objectives & Key Results add value clarificationOKR Formula:“I will (Objective) as measured by (Key Result) ““I will Create an AwesomeCustomer Experience as measured by:O BJECTIVE K EYESULTSRMemorable qualitativedescriptions of what youwant to achieve?Increase Net Promoter Score from X to YImprove customer engagement index from X to YIncrease revenue in channel from X% to Y%.Reduce Cost per transactions from X to YHow you will measureyour progress toward theobjective?Source: felipecapstro.com/en/okr/what-is-okr/12

Meaningful, Track & Traceable Solution Requirements using OKRsOKRS DO NOT CASCADE, THEY ALIGN{ . “Strategic” OKRs . }{ “Tactical” OKRs }Strategic Themes Enterprise Initiatives Epics,Capabilities, .Each Solution Initiative, within a PortfolioDevelopment Value Stream, defines theirEpic(s) with “tactical OKRs” that contribute tothe strategic OKRs set at or above PortfoliolevelThe strategic and tactical OKRs don’t have toalign 100% as there may be local optimizationof Epic OKRs within the solution context.Tactical OKRs can be a slice of the strategic OKRor contain a value hypothesis about how todeliver the entire strategyTransformation & BusinessINITIATIVES by StrategicTheme w/ eedbackLoop othesisAcceptanceCriteriaFeatures13

Unlocking Achievements within your Lean-Agile OrganizationIn addition to Business achievements,Measure and Grow is how we evaluate ourprogress toward Business Agility –C E L E B R AT E B O T H ! Find SAFe Assessments Create a baseline for demonstrating progress Find SAFe Competency Grow Forums Populate the improvement backlog Avoid future bigger problems Adapt the implementation plan Compare to benchmark data14

Adapting Smarter S.M.A.R.T.Definitions in SAFe v5 Business Agility Scaled Agile, Inc.15

Advancing our S.M.A.R.T. Acronym for SAFe Business AgilitySM eaningfulA ssessibleRewardingTrackabletrategicCreate an initiative aligned with strategic themes anddefine a clear Objective (action verbs)Aligned to a value-centered culture, be clear whatKey Results are needed to achieve the objective.Investment zone/horizon evaluation: incubation,scaling across enterprise, revenue growth, efficiencyPlanned reward, ‘achievement unlocked’ when theobjective or incremental milestones are reachedTrack progress monitoring toward the Key Resultson a regular cadence until complete. Multiplemeasures may be required16

Example #1 Objective – Reinventing our best 4x4 off-road model to EVS trategicM eaningfulA ssessibleRewardingTrackableTo be competitive in the EV marketplace, we will redesign our bestselling 4x4 into a beyond best-in-class EV model as measured bymiles/charge, styling, and transformational embedded technologiesTo be environmentally best-in-class, our new model will have 500miles/charge, 4-wheel dynamic wheel mgmt., water-tight, & meet ourhighest level of driver-satisfaction from our own employeesCrosses zone boundaries of incubation & transformation as some EVtechnologies are ready for manufacture scaling while some have yet tobe invented with our ‘skunkworks’ innovation centerCelebrating our early prototyping by rewarding employees by addingthem into our driver experience MVP feedback & based on pre-orderresults, give away to top 5 customers & 5 employees (below director)Through MVP cycles & design key desired outcomes, we will track &trace metrics for key results as well as flow metrics (velocity, re-workcycles) reported monthly to our portfolio executives17

Example #2 Objective – Business Agility Leadership DevelopmentS trategicM eaningfulA ssessibleRewardingTrackableBegin one executive leadership cohort to immerse leaders in BusinessAgility competencies & actions within the next 30 days & continue forthe next 12 months (aligns to our value-culture transformation theme)For each leadership action/experiment, share learnings, measureoutcomes with Leader Net Promoter Scores from people above andbelow each cohort member’s organization and 2-4 peer customersInvestment zone: Transformation. SAFe Leadership & OrganizationalAgility core competencies aligned with value-centered culture strategyCelebrate the cohorts achievements each month in a virtual happy hourand invite other leaders & teams to hear our stories, share theirobservations and join in our journey (help new leaders start cohorts)Track and trace leadership development against each competency onquarterly basis with Agility Health Radar alongside business &transformation outcomes. Tie outcomes to business results.18

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Thank you!LinkedIn & Twitter: GetFrostyScott.m.Frost@Accenture.com21

Apply capacity allocation to optimize value integrity 3. Approve significant initiatives 4. Continuous business owner engagement Sources: Geoffrey Moore’s Zone to Win and Scaled Agile Inc. Investment Horizons. Adapted to Scaled Agile Inc. horizon views. Extending & Defending Your Core. Scaling Your Emerging Business . Options for Growth. Maximize work not done; shut it down. Enterprise .