business agility - meetupfiles.meetup.com/18868628/agile wins.pdfbusiness agility in the bimodal...

Business Agility

IN THE BIMODAL RACE AGILE WINS

Simply Software at Scale To Gain Strategic Advantage

CEO AgileCraft

STEVE ELLIOTT

Steve Elliott

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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

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

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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

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THE ORIGINAL GAP – CONNECTING THE TEAM

ENTERPRISE



Lorem ipsum PROGRAM


reativity is the key to success

Lorem ipsum TEAM


PORTFOLIO


8


THE BIMODAL GAP

ENTERPRISE



Lorem ipsum PROGRAM



Lorem ipsum TEAM


PORTFOLIO


9


TWO MINDSETS NEED TO COEXIST … NOT COLLIDE

Lean Agile Traditional

Planning Budgeting

Dependency Mgmt. Progress Reporting

Governance Improving

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BIMODAL IS REALITY in software today

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

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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 ?

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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

AGILE WINS THE RACE QUESTION: HOW DO WE GET THERE FAST AND IN ONE PIECE?

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7 KEYS TO DRIVE AGILITY IN A BIMODAL WORLD

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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

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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).

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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

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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

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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

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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

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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”

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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

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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

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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

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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

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WHAT TO EXPECT

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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

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ACCELERATE TRANSFORMATION

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Enterprise Portfolio

Value Stream / Solution Program

Team PREDICTABILITY, SPEND & RESULTS

STRATEGY, GOALS,

& PRIORITIES

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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.

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LINK STRATEGY TO EXCUTION EARLY IN THE GAME K E Y T A K E A W A Y S

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HOW TO KNOW YOU HAVE ARRIVED

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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

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K E Y T A K E A W A Y S

WHAT TRANSFORMATION AT SCALE LOOKS LIKE

QUESTIONS? [email protected]

business agility - meetupfiles.meetup.com/18868628/agile wins.pdfbusiness agility in the bimodal...

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