Business Agility
IN THE BIMODAL RACE AGILE WINS
Simply Software at Scale To Gain Strategic Advantage
CEO AgileCraft
STEVE ELLIOTT
Steve Elliott
2
Coined by Gartner in 2014, bimodal development refers to the existence of both agile and waterfall style development processes co-existing in the same IT organization.
This typically necessitates separate tools and processes for each mode.
Think Sprinter Shorter Cycle Times
Agile, Lean, Kanban, etc.
Agile
2
Think Marathon Runner Longer Cycle Times
Waterfall, V-Model, etc.
Traditional
1
3
BIMODAL DEFINED K E Y C H A L L E N G E
4
5
IS BIMODAL YOUR REALITY?
THE FOUR STAGES OF BIMODAL EVOLUTION
01
Most Common
Most common scenario is
some teams are agile and
some traditional but portfolio
management is traditional.
T
T T
A A T
A A T T
02
Team Agile w/ Traditional PMO
For some, the portfolios are
managed in a traditional
fashion but all teams are
agile.
T
T T
A A A
A A A A
03
Gartner Bimodal
Gartner recommends that
organizations bucket
projects based on best fit.
Top-to-Bottom Agile
Many organizations aspire
to achieve true top-to-
bottom enterprise agility
04 T
A T
AA TT
AAA TTT
A
A A
A A A
A A A A
6
K E Y C H A L L E N G E
FOUR LEVELS OF SCALE
ENTERPRISE
Executives Executive PMO Finance
Creativity is the key to success
Lorem ipsum PROGRAM
Product Managers Program Managers Release Train Engineers
reativity is the key to success
Lorem ipsum TEAM
Development Teams Quality Teams Service Delivery Teams
PORTFOLIO
Portfolio Managers Project Management Offices Business Owners
7
K E Y C H A L L E N G E
THE ORIGINAL GAP – CONNECTING THE TEAM
ENTERPRISE
Executives Executive PMO Finance
Creativity is the key to success
Lorem ipsum PROGRAM
Product Managers Program Managers Release Train Engineers
reativity is the key to success
Lorem ipsum TEAM
Development Teams Quality Teams Service Delivery Teams
PORTFOLIO
Portfolio Managers Project Management Offices Business Owners
8
K E Y C H A L L E N G E
THE BIMODAL GAP
ENTERPRISE
Executives Executive PMO Finance
Creativity is the key to success
Lorem ipsum PROGRAM
Product Managers Program Managers Release Train Engineers
Creativity is the key to success
Lorem ipsum TEAM
Development Teams Quality Teams Service Delivery Teams
PORTFOLIO
Portfolio Managers Project Management Offices Business Owners
9
K E Y C H A L L E N G E
TWO MINDSETS NEED TO COEXIST … NOT COLLIDE
Lean Agile Traditional
Planning Budgeting
Dependency Mgmt. Progress Reporting
Governance Improving
10
K E Y C H A L L E N G E
11
BIMODAL IS REALITY in software today
12
I T ’ S T R U L Y A B O U T S U R V I V A L
THE GAME IS RAPIDLY CHANGING
Software is eating the world 1 The acceleration of the technology curve is quickening the turnover of large enterprises / the fortune 500. 2
Increasingly software is highly strategic and has a major impact on outcomes regardless of the vertical / industry in question 3
13
A U G U S T 2 0 1 6
THE FIVE MOST VALUABLE PUBLIC COMPAINES
STATE OF AGILE T H E B A S I C S
1st Generation - (approx. 1994 – 2002) searched for and found a different way of building solutions focused on small teams of developers. 2nd Generation – (approx. 2002 – 2010) realized requirements & testing must be agile as well to create development flow. 3rd Generation – (approx. 2010 – present) builds on development flow and deals with scale, value stream, product lines, portfolios and integration to strategy and the rest of the enterprise.
15 Courtesy of SolutionsIQ
Develop an effective, reproducible process Improve development capacity & flexibility Improve process visibility & maintainability
Operational Excellence
Improve concept to cash cycle-time Align business and IT into an effective partnership Increase market share
Competitiveness
Improve predictability Reduce total dev, test and maintenance costs Shift allocation across budget and costing buckets
Cost Containment
Improve product quality Improve satisfaction with rapid feedback. Manage demand more proactively
Customer Satisfaction
Drive a new product or service model Improve return on investment for products, projects and programs
Revenue / Profit
AGILITY DIRECTLY AFFECTS MARKET VIABILITY W H Y F O C U S O N E N T E R P R I S E A G I L I T Y ?
16
We have found that concise and repeated communication of THE WHY to the executives, portfolios, programs and teams increases transformation success significantly.
Ability to Compete More Revenue / Profit Cost Containment Better Customer Sat Operational Excellence
E N D S T A T E V I S I O N
COMPANY XYZ
Size of the circle denotes priority.
Make all work visible 7/12/16
$500,000
Consolidate Tools 7/12/16
$670,000
Expose Unplanned Work
7/12/16
$70,000
Stay In Sync 7/12/16
$150,000
Successfully Role Out SAFe
7/12/16
$250,000
Manage / Crush Dependencies
7/12/16
$250,000
8. Optimize Resources For Profit $850,000
7. Drive strategic alignment $1,440,000
9. Understand Why $200,000
20. Drive Better Feedback Loops $500,000
11. Make Investment Decisions Faster $1,550,000
10. Foster Innovation $2,000,000
12. Improve Concept to Cash $9,000,000
14. Achieve Shorter Cycle Times $3,000,000
13. Reduce Bad Projects $500,000
15. Improve Estimation $250,000
17. Reduce Manual Efforts $650,000
16. Improve Response Time $2,550,000
18. Improve Ability to Prioritize Work $100,000
19. Deliver Better Quality $4,000,000
#2
#1
#3
#4
#5 #6
Impact Per Year
Phase 1 (1-4) $ 990,000 Phase 2 (5-10) $ 1,410,000 Phase 3 (11-20) $ 14,205,201
----------------------------------------- $ 16,242,141
18 18
AGILE WINS THE RACE QUESTION: HOW DO WE GET THERE FAST AND IN ONE PIECE?
19
7 KEYS TO DRIVE AGILITY IN A BIMODAL WORLD
20
Size Value Productive Capacity Time
Bimodal Babel Fish
Story Points
Projects / Programs
Requirements
Agile Traditional
Original Animation Artwork by Rob Lord
Features
Themes / Epics
Person-weeks
21
1. INSTITUTE A COMMON LANGUAGE T E R M S A N D L I N G O N E E D T O B E A L I G N E D E A R L Y
• Treat each traditional “project” as an agile epic
• Attach intake and project justification to the epic
• Prioritize the epics with scoring, etc. based off of value and effort.
• Attach the strategy and strategic themes to the epic.
• Attach budgeting and resourcing to the epic to drive financial reporting.
• Use the epic as a common reporting layer for the executives.
• Attach governance and guard rails to the epic (as lightweight as possible).
22
2. MAKE A CONSISTENT LINK TO THE PROJECT L I N K T H E B U S I N E S S T O T H E T E C H N O L O G Y I N R E A L T I M E
• Work:
• An epic is a project / a project is an epic
• Think of epics, features, and stories as 3 levels of waterfall planning
• Money:
• Translate story points into financial metrics using velocity and cost centers
• Time:
• Align to the organizations current strategic planning process
23
3. CONSTRUCT A UNIFIED FLOW D E F I N E A C E N T R A L I N T A K E & D E L I V E R Y P R O C E S S T H A T W O R K S W I T H A G I L E
• Business case driven, projects are funded through stage gate approach
• Demand side: Includes revenue projections, positioning, NPV analysis,
• Cost side: Includes time to completion, costs, resources, dependencies, etc…
• Weight, score, and rank
Ideation Business Case Dev
Scoring Review Approval
Project A
Project E
Project X
Project F
Project Q
Portfolio Backlog
Value Based Intake Process
24
3. CONSTRUCT A UNIFIED FLOW D E F I N E A C E N T R A L I N T A K E & D E L I V E R Y P R O C E S S T H A T W O R K S W I T H A G I L E
• Align to the way the business currently operates
• 3-5 year plan / annual cycles / quarterly updates
• Make the most granular level of acceptable cadence your “Planning Increment”
PLAN ON A SET CADENCE
Annual Plan Annual Plan Annual Plan Quarterly Quarterly Quarterly Quarterly Quarterly Quarterly Quarterly Quarterly Quarterly Quarterly Quarterly Quarterly
Release On Demand
25
4. IMPLEMENT AN ENTERPRISE PLANNING CADENCE L I N E U P P O R T F O L I O S / P R O G A M S T O P L A N D E P E N D E N C I E S A N D R E C A L I B R A T E T H E B I G P I C T U R E
Bring The People To The Work “The Individual is the productive resourcing
unit”
Agile Team
Bring The Work To The Team “The Team is the productive resourcing
unit”
To
Traditional Project Team
26
5. BLEND METHODS OF CAPACITY PLANNING G E T E V E R Y T H I N G B A C K T O D O L L A R S A N D T I M E I N O N E P L A C E
• Define your Agile Teams – “allocate” resources to those teams
• Define who’s available for “waterfall allocation”
• Define their skills
• Blend your projects
• Breakdown work and assign as much as possible to agile teams
• Indicate on the epic (e.g. project) intake form what additional skills are required to staff the project above and beyond what the team will do
• Assign additional resources to the “project” as needed based on availability”
27
5. BLEND METHODS OF CAPACITY PLANNING G E T E V E R Y T H I N G B A C K T O D O L L A R S A N D T I M E I N O N E P L A C E
• Practice Dependency Management not Dependency Failure Management
• Map dependencies between teams and work items –note differences in time targeting – Translation needed
• Tie dependencies to the value at risk if they are not fulfilled
• Use Dependencies to visualize complexity in your projects and weakness in your architecture
• Have a plan to reduce dependencies
28
6. ONE PROCESS TO MANAGE DEPENDENCIES AND RISKS H A V E A U N I F E D W A Y T O M A N A G E R I S K A N D A L I G N H A N D O F F S B E T W E E N T E A M S
PRODUCT ORGANIZATION WORK RELEASE
REPORTING
VALUE
STRATEGY
PLANNING
29
7. ENABLE MULTI-DIMENSION REPORTING E N A B L E E X E C U T I V E S , P O R T F O L O S , P R O G R A M S & T E A M S W I T H O N E S O U R C E O F T R U T H
• Translate story points to financial progress
• Impute cost of a story point based on team velocity and cost center
• Track capitalization based on task hours or story points
• Report on progress based on % of stories, features and epics complete
• Epics and Features great from the beginning – value oriented
• Stories better toward the end of a release
Team
Program
Portfolio
Enterprise
Story Points
Time Units
Money
Money
30
7. ENABLE MULTI-DIMENSION REPORTING E N A B L E E X E C U T I V E S , P O R T F O L O S , P R O G R A M S & T E A M S W I T H O N E S O U R C E O F T R U T H
31
WHAT TO EXPECT
31
32
EXPECT A MULTI-YEAR JOURNEY
Courtesy of Jeff Patton
Architecture & Design Planning Flipped Upside-down
Minimal Viable Product
K E Y T A K E A W A Y S
33
ACCELERATE TRANSFORMATION
33
Enterprise Portfolio
Value Stream / Solution Program
Team PREDICTABILITY, SPEND & RESULTS
STRATEGY, GOALS,
& PRIORITIES
34
DRIVE AGILITY FROM TOP DOWN AND BOTTOM UP K E Y T A K E A W A Y S
START WITH WHY • As the core is being optimized get to WHY by
connecting strategy to execution and the business to the technology.
• Make sure the most impactful work is being performed to ensure business goals are met.
• Ensure that smart investments / bets are being made on a continuous basis.
THEN GET BROAD VISIBILITY • Make all work visible. • We help you visualize WHAT is happening
with teams, across teams and also what is work not being done.
LAST OPTIMIZE THE SYSTEM • Once visible find out HOW you can
optimize the system. • Increase quality, coordination, reduce
waste and improve predictability.
35
LINK STRATEGY TO EXCUTION EARLY IN THE GAME K E Y T A K E A W A Y S
36
HOW TO KNOW YOU HAVE ARRIVED
36
1. STRATEGY IS LINKED TO EXECUTION IN REAL TIME
2. THE BUSINESS AND TECHNOLOGY STAY IN SYNC
3. EXECUTIVES KNOW WHERE TO INVEST & TEAMS KNOW WHY THEY ARE INVESTED
4. YOU HAVE REDUCED THE COST OF VISIBILITY AND ENABLED THE VALUE OF ALIGNMENT
37
K E Y T A K E A W A Y S
WHAT TRANSFORMATION AT SCALE LOOKS LIKE
QUESTIONS? [email protected]
Top Related