Agile 2014 Executive Forum - Sustaining Enterprise Agile Adoption

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Sustaining Enterprise Agile Adoption Matt Anderson, PMP, PMI-ACP Director, Program Management 6/27/22 2014 Agile Executive Forum

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Presentation by Matt Anderson at Agile 2014 Executive Forum. Key topic is how to sustain agile at the Enterprise level after initial roll-out.

Transcript of Agile 2014 Executive Forum - Sustaining Enterprise Agile Adoption

Page 1: Agile 2014 Executive Forum - Sustaining Enterprise Agile Adoption

April 13, 2023

Sustaining Enterprise Agile Adoption

Matt Anderson, PMP, PMI-ACP

Director, Program Management

2014 Agile Executive Forum

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© 2011 Cerner Corporation. All rights reserved. This document contains Cerner confidential and/or proprietary information which may not be reproduced or transmitted without the express written consent of Cerner. 2

Cerner Corporation Profile

The leading global supplier of healthcare solutions and related services

Started in 1979, based in Kansas City, MOClients in 25 countries serving more than 9000 unique facilities

• Hospitals• Physician Practices• Retail Pharmacies

NASDAQ – CERN• $3B revenue in 2013

15,000 associates3000+ associates on development teams

• Majority of development in Kansas City, MO and Bangalore, India

Development portfolio75+ solutions (products)$450M investment in 2014~ 300 Agile development teams

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© 2011 Cerner Corporation. All rights reserved. This document contains Cerner confidential and/or proprietary information which may not be reproduced or transmitted without the express written consent of Cerner. 3

Cerner’s Agile Story

September 2008Several teams voice frustration with current development processes and the idea to look at Agile was raised

January 20095 teams kick-off pilots with minimal support

July 2009CEO states intention to “blow up the waterfall” based on resultsAdditional pilots started with full support

April – Sept 2010Mass education and adoption (2000 associates trained)

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© 2011 Cerner Corporation. All rights reserved. This document contains Cerner confidential and/or proprietary information which may not be reproduced or transmitted without the express written consent of Cerner. 4

Cerner’s Drivers for Agile

BusinessSpeed to Market

• Major innovations took an average of 30 months from concept to client adoption

• Retain market leadership

Return on Investment• Too many projects adopted at only a small subset of client

base – “Shelfware”

Improve Quality• Develop the Right Solution• Develop the Solution Right

Support “Edge” teams• Core solutions released together, but “edge” teams

unnecessarily held up by inflexible methodology Analogous to core web browser versus plug-in for browser

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2011 Results

BusinessAverage client adoption time reduced from 30 -> 10 monthsReturn on Investment – virtually eliminated “shelfware”

• Direct increased by 429%• Indirect increased by 1000%

Improved productivity by 24%Development costs reduced by 14%Quality improved by 6%Independent process and release for “edge” teams enabled by agile principles

Culture“Agile” and “Lean” used in everyday vernacular (most of the time correctly)Leaders challenge each other to be more servant leaders in executive sessions

• Some “command and control” tendencies surface from time to time, but other leaders are the check and balance

Associate attrition for satisfaction issues reduced by 80%95%+ adoption by development teams

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Challenges with Sustained Agile Adoption

Culture and change fatigue

Organizational gravity – the Black Hole

Staffing & team changes

Agile fatigue

Business, IT and PMO balance – “power struggles”

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© 2011 Cerner Corporation. All rights reserved. This document contains Cerner confidential and/or proprietary information which may not be reproduced or transmitted without the express written consent of Cerner. 7

Sustaining Change in Large Organizations

Must change the cultureCommon organizational behaviors

• “Bright, shiny object” syndrome• “Aren’t we done with that?”• “That is so 2013”

Must implement Agile behavior into regular business functions

• Finance, HR, Sales/Marketing

C-Suite engagement• Business-driven agility

Account for change management and fatigueIndividual and organizational toleranceKaikaku vs Kaizen

• Most Sr. Execs do Kaikaku well, but lack attention span for Kaizen

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© 2011 Cerner Corporation. All rights reserved. This document contains Cerner confidential and/or proprietary information which may not be reproduced or transmitted without the express written consent of Cerner. 8

Enterprise, Organizational Change Model

Model Start with WhyUnderstand Change and AdoptionPeople, Process and Tools/Technology togetherPrinciples over ProcessAdapt the message (Influencer model)EmpowerPragmatic Adoption

• Teach the rule then deal with any exceptions

New position in 2014Vice President, Behavior Change and Adoption

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© 2011 Cerner Corporation. All rights reserved. This document contains Cerner confidential and/or proprietary information which may not be reproduced or transmitted without the express written consent of Cerner. 9

Organizational Black Holes

Cultural GravityWhen the going gets tough …

• The tough revert back to initial behavior Leaders say the right Agile words, but don’t follow up with Agile leadership Middle management tier is the chief offender

Agile is good until …• Annual Financial Planning• Annual HR Performance review

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© 2011 Cerner Corporation. All rights reserved. This document contains Cerner confidential and/or proprietary information which may not be reproduced or transmitted without the express written consent of Cerner. 10

Defeating Black Hole Gravity

Centralized, decentralization of portfolioCentralize rules and generate corporate alignment

• Unified top level priorities/imperatives with shared KPIs across organizations

• Imperatives span organizations but have a single Sr. Executive owner

“Divide the pie” and allow business leaders to manage their piece within the rulesQuarterly alignment reportingLeverage Lean and Agile values to drive decision makingEstablish governance models

Executive Agile ChampionAgile maven and organizational connector

• Business and Agile credibility• Pragmatic and prescriptive

Tailor the message to the audienceMust be able and willing to “call out” bad behavior effectivelyBreak down the Finance and HR walls

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© 2011 Cerner Corporation. All rights reserved. This document contains Cerner confidential and/or proprietary information which may not be reproduced or transmitted without the express written consent of Cerner. 11

Executive Agile Champion

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© 2011 Cerner Corporation. All rights reserved. This document contains Cerner confidential and/or proprietary information which may not be reproduced or transmitted without the express written consent of Cerner. 12

Executive Agile Champion

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© 2011 Cerner Corporation. All rights reserved. This document contains Cerner confidential and/or proprietary information which may not be reproduced or transmitted without the express written consent of Cerner. 13

Executive Agile Champion

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© 2011 Cerner Corporation. All rights reserved. This document contains Cerner confidential and/or proprietary information which may not be reproduced or transmitted without the express written consent of Cerner. 14

Staffing/Team Changes

New associatesTeams heavy in new associates cannot “self-organize”Training becomes more individual than team based after initial push

New business opportunitiesTeams revert to previous behavior when large member changes occur

External voicesDevelopment consultants want to tell you how to do it “better”, but have no context of the organizationAgile consultants have no ownership in business success, so business results are not what they focus on

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Agile Fatigue – The Cargo Cult

Going through the motions, but no longer seeing the results

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Resolving Staffing and Agile Fatigue Challenges

Adapt training and coaching modelsRoll-out versus sustain are very different

Centralize Agile expertizeCommunity over organization

• Recruit from within – need the credibility of those actually doing the work

Expand influence outside of organization and company• External exposure promotes internal best practice• Allow site visits from external companies

Training/CoachingIntroduce different methodologies and techniques

• Lean/Kanban, XP, TDD, etc.

Engineering communities to teach excellence• Meet-ups, Hack nights

Team refresher classes – “Agile 201”Agile Champion coaching“Trade” Scrum Masters

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© 2011 Cerner Corporation. All rights reserved. This document contains Cerner confidential and/or proprietary information which may not be reproduced or transmitted without the express written consent of Cerner. 17

IT, PMO and Business Balance (not Tug-of War)

Ownership and powerPolitics and span of control concerns will kill profitability

Prioritizing the workAvoid the squeaky wheelClient feedback

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© 2011 Cerner Corporation. All rights reserved. This document contains Cerner confidential and/or proprietary information which may not be reproduced or transmitted without the express written consent of Cerner. 18

Agile Organizational Structure

Model from SpotifyScale idea to fit

Operational model can differ from actual reporting structure

Helps overcome power/span concernsCan grow incrementally and organically

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© 2011 Cerner Corporation. All rights reserved. This document contains Cerner confidential and/or proprietary information which may not be reproduced or transmitted without the express written consent of Cerner. 19

Finding the Balance

Innovative business-driven decisions“Speed is not the objective, it is a means to an end; the objective is making money” – Don Reinertsen“If I had asked my customers what they wanted, they would have said a faster horse” – Henry Ford (apocryphal)

Create an impartial source of truthData driven decisionsFocus on the entire value stream, not on individual or team performance

ProcessLevel 2 Support

ProcessLevel 3 Support

ProcessDev

Client Found Defect

Fix Installed and Issue Resolved

?? ? ?

97% 98% 99%

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© 2011 Cerner Corporation. All rights reserved. This document contains Cerner confidential and/or proprietary information which may not be reproduced or transmitted without the express written consent of Cerner. 20

Wrap - up

Q & A