Agile 2014 Executive Forum - Sustaining Enterprise Agile Adoption
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Transcript of 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
© 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
© 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)
© 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
© 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. 5
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
© 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. 6
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”
© 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
© 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
© 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
© 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
© 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
© 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
© 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
© 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
© 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. 15
Agile Fatigue – The Cargo Cult
Going through the motions, but no longer seeing the results
© 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. 16
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
© 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
© 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
© 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%
© 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