The Power of Visibility: Driving a Lean-Agile Transition

Kelley HortonDirector, Corporate IT Program Management Office

The Power of Visibility - Agenda

About Premier, Inc.

Why we transitioned to Lean-Agile

Transition Approach and use of Visual Controls

Visibility Leads to Success

Wrap-Up

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Premier, Inc. – Goal: Enable delivery of high-quality healthcare at the lowest cost

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Susan DeVore, CEO

Challenged us to: ‘Think and act like an enterprise.’

‘Wow our members’

NEED TO TRANSITIONOur Enterprise Challenge

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?GPO

Enterprise

Clinical

The ‘Lean-Agile’ Enterprise –Our challenge to think and act like an enterprise ..

ConsultingInsurance

Special Requests

Faster?

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We Tied our Lean-Agile Transition to the CEO Challenge

• Business Value (the Wow)• Prioritization• Visibility • Velocity

$

Agree on Priority

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So, how did we get from this – Subjective Status, IT terminology, no view of WIP ….

To This - Our Enterprise View TodayPortfolio Dashboard today (more clarity, depth, flexibility) ….

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OUR APPROACHTransitioning the Enterprise to Lean-Agile

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Lean-Agile Transition - Critical Success Factors

#1 -- Leadership (both Business and IT) support of principles and process

Selected the right coach - NetObjectives

An Internal Champion to help drive the transition

Our Pilot Approach

Transparency; All Work Visible (not easy)

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Business Engagement; top-down portfolio of prioritized work

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Release Vision; MMFs

Prioritized Backlog

Scrum; with focus on minimizing WIP

Sprint Boards – Simple Construction Pieces

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Post-It’s:• White- Feature • Yellow- Story• Blue- Task

Dots:• Blue- Task in progress• Green- Task complete• Yellow- Dependency • Red- Impediment / Blocked

Our First Visual Control – Sprint BacklogTeams minimized WIP; slowed down to speed up

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Features

Stories

Tasks

Pilot Visual Controls – The Basics

• White Boards– WIP Focus

• Agile V’s• Impediment Logs

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Pilot Product – two quick deployments!

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Story Pts

Sprints

Deployments

Next MMF

Lean Agile – All aboard (and hurry)!

Had to be Flexible• Learned that ‘one

size did not fit all’• Scrum vs.

Kanban vs. ScrumBan

• Different ‘fields of use’

Had to be Innovative• Needed to increase

Enterprise awareness • Board Meetings

(WIP Visibility, Dependencies)

Had to be Transparent• Proper use of visual

controls helped build trust

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Board Meetings – early on to increase awareness and understanding of new principles

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Sprint Backlog

+Kanban

Product Backlog

Sprint Backlog

Full Enterprise Transition in 7 months

With training and coaching from NetObjectives, transitioned 12 teams; 90+

people

PMO ensured consistent use of visual controls for all teams

Established Enterprise Dashboard for entire portfolio

Dashboard Summaries migrated to Sharepoint

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Our Dashboard today; right outside the VP of Application Developments’ office

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Sharepoint usage for Dashboards – status roll-up; can drill for detailed metrics

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VISIBILITY LEADS TO SUCCESS

Using Visual Controls to Drive the Enterprise

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Product Portfolio Visibility –

Consistent Visual Controls– Business Drives Team– Focus on Flow / Velocity

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Feature Profile – shows prioritized backlog, burn-up, relative-sizing, estimation accuracy

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153%

152%

80%

135%

100%

70% 0%

72%

70%

0

50

100

150

200

250

300

350

Story

Points

Feature Profile - FY10

Not Ready Deployment Ready Deployed Original SP Forecasted SP

“With the transparent backlog…I can make good comparative priority decisions with that always being visible.”

Prioritized Product Backlog

% Complete

Color Status

Feature Profile with Financials

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$ 583,057

$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

$800,000

0

20

40

60

80

100

120

140

Capital

Cost

Story

Points

Feature Profile for Release 1.0 (w/ Financials)

Not Ready Deployment Ready Deployed Budget ETC

Cost / Story Point =

Feature Status - Scrumban Visual Control

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Prioritized Product Backlog

% Deployed

Color Status

Visibility = ResultsTeam shifted attention to higher priorities

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Supply Chain product – from long release trains to more frequent deployments (our Pilot team)

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Executive Dashboard - collaboration across Business Units; able to size new stories, reprioritize backlog and immediately cut-over to new work on the next Sprint

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155 155 155 155 155

230 230

464 464 464 464 464 464 464

624 624 624 624

699 699 699759 759

Jun 15 Jun 29 Jul 15 Jul 31 Aug 14 Aug 28 Sep 11 Sep 25 Oct 9 Oct 23 Nov 6 Nov 20 Dec 4 Dec 18 Jan 1 Jan 15 Jan 29 Feb 12 Feb 26 Mar 12 Mar 26 Apr 9 Apr 23 Apr 30 May 14

0

100

200

300

400

500

600

700

800

900

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

Stor

y Po

ints

Sprint

KnowledgeBoxActual to Estimated Story Points Burn-Up

Actual Burn-Up Estimated Burn-Up Top Line

1.1 Refactored Alliance Value/PS Quality &Safety

Deployment

PS Quality & SafetyGlobal UI Controls

User Access & Security

Current Velocity: 34Current FTE: 5.25

*Quality & Safety TabUser Access & Security

1.2 Alliance Value Refresh

PS Operational & Financial

*Quality Advisor dashboard release

PS Performance Opportunities

Print VersionExport Excel

$500,053

$117,927

Demonstrable Products = Product Buzz

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Value Analysis Product – brand new product released in December; from prioritized product backlog to deployment in 10 sprints = six months

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Also seeing benefits to Employee Satisfaction …

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CONTINUOUS LEARNINGThe Journey Continues

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The Lean-Agile Enterprise; visibility enabled …

Better communication between Business and IT teams -A picture (or visual control) is worth a thousand words

Teams to improve product quality, reduce risk, and shorten cycle times

Leadership visibility as to what is going on which assists in strategic decision making (priorities & $$)

Development team collaboration across separate Business units due to use of the same methodology for the first time!

Premier to deliver integrated solutions and to ‘think and act like an enterprise’.

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Questions?

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About the presenter

Kelley Horton is Director of the Corporate IT Program Management Office for the Premier Inc. healthcare alliance (www.premierinc.com). She has program management and process improvement expertise with over 15 years of experience in creating and leading Program/Project Management offices for product and application development organizations as well as implementing and improving Software Development Life Cycle (SDLC) processes.

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