agile in insurance · 2020-07-03 · needcross functional teams working togetherto deliver the...
TRANSCRIPT
Agile in InsuranceImpact of Agile Implementations
Agenda• Background• Why should the sector care?• Overview of a Scaled Agile Framework• Adopting Agile
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• Introductions and housekeeping
• Background
• Why should the sector care?
• Overview of a Scaled Agile Framework
• Adopting Agile
• Summary
• Q&A
4© Scaled Agile, Inc.
Rethinking the organization
The world is now changing at a rate at which the
basic systems, structures, and cultures built over
the past century cannot keep up with the
demands being placed on them.
—John P. Kotter
“
… 2020
“The highest-ranked challenges to adopting and scaling Agile continue to be related to organizational culture. General
organizational resistance to change, inadequate management support and sponsorship, and organizational culture at odds with
Agile values remain in the top 5 challenges. A new choice this year, not enough leadership participation, also ranked in the top 5”
14th Annual State of Agile Report
• As we emerge from lockdown and look to weather the effects of the pandemic, we need to find new and more
agile ways of working.
• Many insurers have piloted 'Agile' projects, specifically in IT software implementations, and most have taken
steps to adopt some agile principles.
• However, some insurers believe that the increased speed and flexibility that Agile techniques bring may not be
suited to a sector that is heavily regulated and traditional in its business practices.
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The ‘New Normal’
What is clear is that, for insurance and
indeed nearly every sector, there will be
no going back
COVID-19 might just prove to be the catalyst for innovation
in insurance, and we have a unique opportunity to rethink
and innovate as we adjust and respond to the ‘New
Normal’6
What is Agile
❖ Agile is the ability to create and respond to change. It is a way of dealing with, and ultimately
succeeding in, an uncertain and turbulent environment.
❖ The authors of the Agile Manifesto chose “Agile” as the label for this whole idea because that word
represented the adaptiveness and response to change which was so important to their approach.
❖ It’s really about thinking through how you can understand what’s going on in the environment that
you’re in today, identify what uncertainty you’re facing, and figure out how you can adapt to that as
you go along.
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Waterfall vs. Agile
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Wat
erfa
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Big Outcome at the End
Agile Cumulative
Outcomes
Waterfall vs. Agile and how ‘Value’ is delivered
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Valu
e
Time
Agile Value
Additional ValueWe are all ‘Learning’
Wat
erfa
ll Va
lue
It’s all about incremental development
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Incremental delivery
We should be adding tangible value each sprint
Testing and learning what our customer’s value
The Agile Umbrella
‘Agile’ is an umbrella term for the frameworks and methodologies that apply the values and principles described in the Agile Manifesto.
It can be split into 2 categories :
1. Lightweight frameworks such as Scrum and Kanban
2. Fuller frameworks such as SAFe and Scrum of Scrums
© Elo Akin
11© Elo Akin
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• Introductions and housekeeping
• Background
• Why should the sector care?
• Overview of a Scaled Agile Framework
• Adopting Agile
• Summary
• Q&A
Why should the Industry care?
1.Product Innovation
2.Digital Transformation
3.Business Disruption
4.New Challengers
5.Financial Reporting Agility
6.Successful Change and Transformation Programmes
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Agile continues to take the world by storm
A recent report from the Standish Group Chaos Study shows that projects based on agile principles have
significantly higher success rates than traditional projects based on the waterfall methodology.
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• Introductions and housekeeping
• Background
• Why should the sector care?
• Overview of a Scaled Agile Framework
• Adopting Agile
• Summary
• Q&A
Overview of SAFe® for Lean Enterprises
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Overview of SAFe® for Lean Enterprises
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How long term planning works in SAFe
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How do you make your business agile?
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Implementation Roadmap
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Agile Manifesto principles
Our highest priority is to satisfy the customer through early and continuous delivery of value.
Welcome changing requirements, even late in development. Agile processes harness change for the customer's competitive advantage.
Deliver evidence frequently, from a couple of weeks to a couple of months, with a preference for the shorter timescale.
Business people and developers must work together daily throughout the project.
Build projects around motivated individuals. Give them the environment and support they need, and trust them to get the job done.
The most efficient and effective method of conveying information to and within a agile team is face-to-face conversation.
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Agile Manifesto principles
Evidence is the primary measure of progress.
Agile processes promote sustainable development. The sponsors, developers, and users should be able to maintain a constant pace indefinitely.
Continuous attention to technical excellence and good design enhances agility.
Simplicity—the art of maximizing the amount of work not done—is essential.
The best architectures, requirements, and designs emerge from self-organizing teams.
At regular intervals, the team reflects on how to become more effective, then tunes and adjusts its behavior accordingly.
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Scrum values
Make these things transparent: the process, the workflow, progress
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RESPECTFOCUSCOMMITMENTCOURAGE OPENNESS
Deliver value incrementally
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Fast feedback
Valu
e de
liver
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Time
Incremental
Waterfall
Agile at scale gets business results
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30 – 75% faster time-to-market
25 – 75% defect reduction
10 – 50% happier, more
motivated employees
20 – 50% increase in productivity
BUSINESS RESULTS
See http://www.scaledAgileFramework.com/case-studies
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• Introductions and housekeeping
• Background
• Why should the sector care?
• Overview of a Scaled Agile Framework
• Adopting Agile
• Summary
• Q&A
IFRS 17 Agile Implementation Illustration
❖ A well established insurer is required to implement IFRS 17 which, is a mandatory new accounting standard which requires a
change to people, processes, systems and data in the Finance and Actuarial functions.
❖ The Insurer is currently implementing a Scaled Up Agile framework across the Group and keen that the IFRS 17 project applies
this framework to its implementation.
❖ Our Agile implementation approach:
➢ Is designed so work is ‘pulled’ by the teams and not pushed onto the teams
➢ Focuses on defining the desired outcomes by creating a prototype which is then developed into a
Minimum Viable Product (MVP) and ultimately into a Target Operating Model (TOM)
➢ Is focused more on delivering value rather than managing costs
➢ Is iterative and planned on a quarterly basis based on feedback from the previous iterations
➢ Manages budgets quarterly instead of annually
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© Elo Akin
IFRS 17 Agile Implementation Illustration
Sprint planning
Quarterly Programme planning
Sprint review
System Demo
Scrum team Sync
Sprint Retrospective
Programme Backlog
Design Principles & Programme Objectives
Prototype MVP TOM
Quarterly Programme Budget
Gap Analysis
Solution Increment
Vision
Scrum of scrum teams
Inspect & Adapt
A team of Agile teams incrementally develop & deliver our
IFRS 17 solutions
• Vision - is a description of the future state of the solution (feature and capabilities)
• Shared Services - represents the specialty roles, people, and services required for the success of the program but that cannot be dedicated full-time.
• Kanban - systems used to visualise and manage flow from vision to delivery.
Roadmap - is a schedule of milestones which are more detailed for near term
and priority deliverables
The System Team supports the Agile development environment, typically will perform end-to-end Solution testing and assists with
deployment and Release Management
Applied main components of the Scrum Framework:
• Scrum roles• Scrum Artifacts• Scrum events
Adhere to the Scrum principles of :• Transparency
• Inspection• Adaptation
IFRS 17 Transition
Iterations
Iterations
Kanban
Pull
Data Store
Programme team
Multiple cross functional scrum teams
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• Introductions and housekeeping
• Background
• Why should the sector care?
• Overview of a Scaled Agile Framework
• Adopting Agile
• Summary
• Q&A
Successful Agile
Adoption
Culture
Capability
Capacity Commitment
Compatibility
© Inastrum Consulting30
Adopting Agile Successfully
Culture – Is your organisation ready to go agile?
Culture clash
Culture change not seen as a priority
Underestimate magnitude of change
Underinvest in cultural change
Do not maintain the change
Value alignmentLeadership style & Decision
MakingCommunication
TrustFeedback
InfluencingDealing with conflictTime management
Expectations
© Inastrum Consulting31
Supporters say:
• Our culture prevents us from adapting to changing environments
• Our stakeholders needs are not being met
• Our competitors are getting products to market in a fraction of the time
• The future is digital and we can’t compete unless are able to rapidly adapt our business models!
All changes will typically face resistance, Agile is no different
© Inastrum Consulting
Culture – Change Resistance
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Sceptics say:
• It’s counter to our culture, its just not the way we work!
• The stakeholders won’t buy it!
• We have a captive market, so why bother to innovate?
• Any business change relies on our legacy systems and we just can’t use Agile
Empowered self-organising and self-
directed teams
Disempowered and uninspired teams
Team can adapt and innovate during delivery
Project cant adapt to changing competitive
landscape
Early visibility of deliverables and ability
to course correct
Limited delivery assurance
Visual Project Management
Fake project reporting
Customer value drives focus and delivery –
shifts “power” to customer
Projects that lose customer focus
Collaboration/robust feedback drive early problem detection
Problems detected after project delivery
Responsive project delivery, if its not
working, change it
Rigid management and costly change control
Visibly committed leaders who understand the value of an agile mindset and actively promote andnurture an agile culture in their organisations
© Inastrum Consulting
Gaining commitment – Value and Leadership
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© Inastrum Consulting
Commitment – Common misconceptions about Agile
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M O RE A DVA N TAG EO U S L ES S A DVA N TAG EO U S
Complex problems with an uncertain scope and unclear solution vs Familiar problems with understood scope and clear solutions
Customer needs and expectations are rapidly changing vs Expectations are stable with no/limited likelihood of change
Requirements are unclear or unknown at the onset vs Customer requirements are clearly defined
Customers are willing and able to invest time in regular collaborations vs Limited or no availability to collaborate
Need cross functional teams working together to deliver the solution vs Teams can only work in independent functional silos’ in
consecutive stages to deliver
Able to break work down into small value-adding increments for iterative delivery and use vs The whole package has to be delivered in order for it to be of
any usable value
Creative solutions and time to market are of the essence vs Delivery time is less of a factor and the end solution is predictable
Agile is not a silver bullet neither does one size fit all.
Some organisations are able to adapt their culture to accommodate agile ways of working
© Inastrum Consulting
Compatibility - Where agile is best suited
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Compatibility – Mixing Agile and Waterfall
Waterfall Project
Agile Delivery
Agile Delivery
Waterfall Planning and
Scoping
© Inastrum Consulting36
• Gradual buy-in - introducing elements of agile delivery in a waterfall environment helps build familiarity e.g. – Waterfall start, agile end– Overall waterfall, with agile components– Selective agile
• Agile pilots – most suitable projects
• Coaching
• Training
Build a teamAddress Location
Requirements
Effective Communication
Empower and motivate
• Physical or virtual• Geographic dispersal• Post COVID implications• Management of trade offs
• Pull vs. push• Self-sustaining vs. direct• Self-motivating vs. command
• PMs first responsibility• Best team for the project• Reflect the right roles• Leadership mentality• Agile coach
• Invest effort in this area• Right fit for organisation• Re-purpose existing technology
© Inastrum Consulting
Capability and Capacity
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True Collaboration
Happier Customers
Quicker FeedbackAccelerated
delivery
Right focus
Increased Competitiveness
Motivated teams
Less ambiguity© Inastrum Consulting
Benefits of Agile
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Thank you to our panellists…
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Buki ObayiuwanaFinance and Business
Transformation ConsultantLinkedIn
Chris Hitchens Ho Agile Transformation
Chubb InsuranceLinkedIn
Elo AkinProgramme Manager,
Finance Transformation & ChangeLinkedIn