T H E A G I L E E N T E R P R I S E

K C P M I P R O F E S S I O N A L D E V E L O P M E N T D A Y S 2 0 1 4

Rick Freedman Principle Consultant

Adams Gabbert & Associates

A G I L E E N T E R P R I S E S :

• Embrace Change

• Thrive in unpredictable markets

• Are lean, adaptive…

• …and capable of rapid learning and reconfiguration

A G I L E E N T E R P R I S E : A G I L E T O P - T O - B O T T O M

• Agile Strategy

• Agile Portfolio, Program, Project Management

• Agile Execution

• PMs in the Agile Enterprise

• Is Agile:

• a software development lifecycle?

• a project management methodology?

• a culture?

• a philosophy?

• a strategy?

A G I L I T Y A S A S T R AT E G I C A D VA N TA G E

A G I L I T Y D E F I N E D

Agility is the ability to balance flexibility and structureJim Highsmith

T H E U R G E N C Y O F A G I L I T Y

T H E U R G E N C Y O F A G I L I T Y

Efficient Price Discovery

Globalization

Digital Disruption

T H E U R G E N C Y O F A G I L I T Y

Efficient Price Discovery Globalization

Digital Disruption

Efficient Price Discovery

• Efficient, immediate price discovery through E-Markets

• Markets find and broadcast the ‘right’ price

• Traditional information advantages evaporate

• Internet brings efficient price discovery to all segments

• Businesses lose, buyers gain pricing power

Efficient Price Discovery

T H E U R G E N C Y O F A G I L I T Y

Globalization

Globalization

• E-Markets also enable global collaboration & competition

• Costs seek the lowest price

• All strategies become transparent

• Global competitors learn lessons at your expense

• Competitors gain share, margins get shaved

T H E U R G E N C Y O F A G I L I T Y

Digital Disruption

Digital Disruption

• E-Markets encourage new business models

• Consumer choice rules

• Responsiveness beats efficiency

• Lean disrupters challenge cumbersome incumbents:

• Change as a strategic weapon

• Competitors gain share, margins get shaved

T H E U R G E N C Y O F A G I L I T Y

T H E U R G E N C Y O F A G I L I T Y

T H E U R G E N C Y O F A G I L I T Y

T H E U R G E N C Y O F A G I L I T Y

T H E U R G E N C Y O F A G I L I T Y

A G I L E E N T E R P R I S E S :

• Innovate continuously

• Build adaptable products

• Get to market faster

• Build adaptable processes and teams

• Deliver quality consistently

A G I L E E N T E R P R I S E : A G I L E T O P - T O - B O T T O M

• Agile Strategy

• Agile Portfolio, Program, Project Management

• Agile Execution

• PMs in the Agile Enterprise

A G I L E E X E C U T I O N

T R A D I T I O N A L S T R AT E G I C P L A N N I N G

P L A N T O P L A N

VA L U E S S C A N

M I S S I O N

S T R AT E G Y

P E R F O R M A N C E A U D I T

G A P A N A LY S I S

I N T E G R AT E

I M P L E M E N T

T R A D I T I O N A L S T R AT E G I C P L A N N I N G

A G I L E S T R AT E G I C P L A N N I N G : B U S I N E S S M O D E L C A N VA S

A G I L E S T R AT E G I C P L A N N I N G

A G I L E S T R AT E G I C P L A N N I N G

A G I L E O R G A N I Z AT I O N

Functional Hierarchy ‘Whole Team’

Organizational Spectrum

Functional Matrix

A G I L E E N T E R P R I S E : A G I L E T O P - T O - B O T T O M

• Agile Strategy

• Agile Portfolio, Program, Project Management

• Agile Execution

• PMs in the Agile Enterprise

A G I L E R O A D M A P

C O N N E C T I N G S T R AT E G Y T O E X E C U T I O N

C O N N E C T I N G S T R AT E G Y T O E X E C U T I O N

C O N N E C T I N G S T R AT E G Y T O E X E C U T I O N

C O N N E C T I N G S T R AT E G Y T O E X E C U T I O N

C O N N E C T I N G S T R AT E G Y T O E X E C U T I O N

C O N N E C T I N G S T R AT E G Y T O E X E C U T I O N

A G I L E P 3 M A N A G E M E N T

Figure 2. PPM responsibilities cover both Agile and Waterfall programs where necessary

Program Portfolio Management Team

Enterprises may use different titles and roles to fulfill these functions, or perhaps there are no official labels or departments for some, but theresponsibilities are clear. SAFe calls the collective of people who share this responsibility Program Portfolio Management.

While the executives are ultimately responsible for this work, they typically do not have the time or skill sets necessary to develop the businesscases, nor personally guide or track all the implementation work. Therefore, by extension, PPM may include:

Program/Project Management Office (PMO) — able to shepherd large programs from development to deployment, and provide status andfinancial reporting. This function may even include the responsibility for defining the enterprise’s Software Development Lifecycle (SDLC).Business analysts—who can elaborate initiatives ( and determine the impact on the enterprise’s internal and external valuestreams

and —who can define a technological vision and implementation scenarios (via ) thatsupport the business strategy.

Lean-Agile Program Portfolio Management

Effective fulfillment of these responsibilities is a prerequisite for business success. However, historical use of the waterfall model, coupled withour somewhat natural inclination to institute top-down controls over non-deterministic software development, has caused the industry to adoptcertain behaviors and mindsets that can seriously inhibit the adoption of more effective Lean and Agile paradigms. These legacy mindsets,such as “widget engineering”, “maximize utilization”, “just get it done”, are discussed at length in Ref [1] and [2].

In order to move past these mindsets, we think in terms of a set of seven transformational patterns that can be used to move the organizationto Lean-Agile Program Portfolio Management, as illustrated in Figure 3.

Figure 3. Seven transformational patterns for Lean-Agile Program Portfolio Management

These patterns help us better understand how to fulfill our primary responsibilities, Strategy and Investment Funding, Program Management,and Governance, but in a but in a more effective Lean-Agile fashion as described below.

Strategy and Investment Funding

The purpose of strategy and investment funding is to facilitate implementation of the business strategy through programs that develop and

Business Epics)

Enterprise System Architects Architectural Epics

A G I L E E N T E R P R I S E : A G I L E T O P - T O - B O T T O M

• Agile Strategy

• Agile Portfolio, Program, Project Management

• Agile Execution

• PMs in the Agile Enterprise

A G I L E E X E C U T I O N

E X E C U T I N G W I T H A G I L I T Y

• Focus on agile culture and agile philosophy

• Larger agile teams and projects may “look waterfall”

• Key question: is compliance dominating delivery?

• Agile balances flexibility and structure

• Enterprise-level agility tends toward more structure

• Challenge: build structure, retain agility

A G I L E E X E C U T I O N

• Product owners scale hierarchically

• ‘Program owner’ concept

• So do backlogs

• one product, one backlog, but…

• can one giant backlog be prioritized?

• different ‘views’ based on commitment level

• Groomed backlogs at all levels

• Collaboration, coordination or communication?

A G I L E E N T E R P R I S E : A G I L E T O P - T O - B O T T O M

• Agile Strategy

• Agile Portfolio, Program, Project Management

• Agile Execution

• PMs in the Agile Enterprise

• Guided by strategy

• Responsive to market forces

• Value-obsessed

• Lean and simple

• Creative and innovative

• Use big, visible commitments and metrics

• …are Adaptive!

P M ’ S I N T H E A G I L E E N T E R P R I S E A R E :

P M ’ S I N T H E A G I L E E N T E R P R I S E :

• Apply agile values:

• Collaborate, coordinate, communicate

• Organize adaptively

• Interact honestly

• Build leadership

• Share knowledge

• Commit and deliver

A G I L E E N T E R P R I S E : W H Y S H O U L D P M ’ S C A R E ?

• Project management is a strategic job

• Project management is cross-discipline

• Project Management is cross-business

• Agile Program and Portfolio management is key

• Agile Transitions go deep and broad

P R E S E N T E D B Y:

Rick Freedman Principle Consultant

Adams Gabbert & Associates

Q U E S T I O N S ? C O M M E N T S ?