Introduction
“Our history is based on extending the brand to categories within the guardrails of Starbucks.” - Howard Schultz (Starbucks)
Guardrails are policies and practices for budgeting, spending, and governance that can be applied against a program. Guardrails exist to guide investments by way of defined time-horizons, promote decentralized decision-making, establish financial thresholds that delineate where in the organization decision-making authority resides, and ensure the business is consistently and meaningfully engaged with program.
Decisions to make
- Define and implement an operational model that facilitates collaboration and fosters trust between programs
- Develop and implement a governance plan that enables fast, well-informed decision making at the most appropriate level
- Determine what is relevant guardrail data, as well as how it will be used, by whom, and in what context
- Establish a program kanban to apply guardrails around the movement of work, including work-in-process limits
- Establish themes so that our investments will be categorized, prioritized, funded, executed, managed, and ultimately closed
- Define how work will be categorized (e.g. "change the business", "run the business", "balance business and IT projects", etc.)
- Define expectations for business owners to ensure they understand their role in support of the program
- Balance budgeting, spending, and governance guardrails to achieve optimal flow
Context
- Sometimes for agile organizations, guardrails play an integral role in the ability to quickly and inexpensively create value (small teams with decentralized decision-making authority are central to success)
- Sometimes programs will focus on feature cycle-time measures, leveraging a program kanban board to support the operations and governance of the program
- Sometimes we see organizations use strategic drivers as the first step toward classifying and prioritizing work to establish a common view shared by programs
- Sometimes programs have a backlog of ongoing projects that they're unaware of (pet projects, death marches, etc.), or learn that they're still supporting products that no longer produce revenue
Why we care
- Since the early 21st century, decentralized decision-making has been central to fostering high-performance organizations and attracting and retaining talented knowledge workers
- Guiding investments by horizon grants organizations the ability to see the whole picture and to ask questions with game-changing potential
- When all work is made visible, companies become aware of how precious capital, time, and talent is being invested
- When a company applies the product lifecycle framework it inspires investment decisions (e.g. do we spend $1M on an emerging technology, or on a product close to retirement?)
- Understanding how work stands in relation to guardrails allows the organization to buy back capacity to support less sexy but just as important "run the business" efforts
- Guardrails give leaders the facts they need to make decisions about capital, time, and talent
- Decentralized decision making creates a jointly-constructed governance model whose purpose is to maintain a steady, predictable flow of work by eliminating bottlenecks around common issues that require localized context and which are time critical
- By jointly constructing a predictable and transparent decision-making process, an organization builds both accountability and trust
- Incorporating a decentralized decision-making model creates a sense of autonomy and purpose among teams, which shapes a purpose-driven culture
- Countless books by authors such as Adam Grant and Simon Sinek detail how organizational culture, governance models, and structure go hand-in-hand to shape organizations
The Atlassian view
- Atlassian products (like Jira Align) offer robust out-of-the-box functionality that helps support planning horizons and decentralized decision-making guardrails with data-driven reports, planning roadmaps, and role- and level-based process checklists
- Jira Align data structure enables themes classification (e.g. "change the business" and "run the business"), as well as feature scheduling and in-flight tracking, all of which improve confidence in, and effectiveness of, decision making
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