scaling agile with the lessons of lean product development flow

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MN Halfday Tutorial 6/3/2013 1:00 PM "Scaling Agile with the Lessons of Lean Product Development Flow" Presented by: Alan Shalloway Net Objectives Brought to you by: 340 Corporate Way, Suite 300, Orange Park, FL 32073 8882688770 9042780524 [email protected] www.sqe.com

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While first generation agile methods have a solid track record at the team level, many agile transformations get stuck trying to expand throughout the organization. With a set of principles that can help improve software development quality and productivity, lean thinking provides a method for escaping the trap of local optimization. While agile teams can use lean principles to improve their practices, larger organizations can embrace lean to solve problems that commonly plague company-wide agile endeavors. Alan Shalloway explores the lean principles of mapping value streams, creating visibility, managing work levels, and more. Together, these lean principles and practices can help your organization dramatically reduce the amount of waste in the work that teams perform. He introduces kanban, an agile method that is a strong implementation of lean principles. Alan closes with agile adoption case studies that illustrate how lean thinking can extend Scrum practices.

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Page 1: Scaling Agile with the Lessons of Lean Product Development Flow

 

 

MN Half‐day Tutorial 6/3/2013 1:00 PM 

       

"Scaling Agile with the Lessons of Lean Product Development Flow"

   

Presented by:

Alan Shalloway Net Objectives

         

Brought to you by:  

  

340 Corporate Way, Suite 300, Orange Park, FL 32073 888‐268‐8770 ∙ 904‐278‐0524 ∙ [email protected] ∙ www.sqe.com

Page 2: Scaling Agile with the Lessons of Lean Product Development Flow

Alan Shalloway Net Objectives

With more than forty years of experience, the founder and CEO of Net Objectives Alan Shalloway is an industry thought leader in lean, kanban, product portfolio management, Scrum, and agile design. Alan helps companies transition enterprise-wide to lean and agile methods, and teach courses in these areas. He is the primary author of Lean-Agile Software Development: Achieving Enterprise Agility, Design Patterns Explained, Lean-Agile Pocket Guide for Scrum Teams, and Essential Skills for the Agile Developer. Cofounder and board member for the Lean Software and Systems Consortium, Alan is a popular speaker at prestigious conferences worldwide.  

Page 3: Scaling Agile with the Lessons of Lean Product Development Flow

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© Copyright 2012 Net Objectives, Inc. All Rights Reserved 1

AgileLean

Scaling Agile with the Lessons of Lean Product Development Flow

Al Shalloway, CEO

Net Objectives

© Copyright 2012 Net Objectives, Inc. All Rights Reserved 2

Page 4: Scaling Agile with the Lessons of Lean Product Development Flow

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© Copyright 2012 Net Objectives, Inc. All Rights Reserved 3

Lean Enterprise

Business

Management

Team

ASSESSMENTS

CONSULTING

TRAINING

COACHING

Lean Management

Project ManagementLean-Agile

Kanban / Scrum

ATDD / TDD / Design Patterns

technical process

Lean for Executives

Product Portfolio Management

Business Product Owner

Scaled Agile Framework

© Copyright 2012 Net Objectives, Inc. All Rights Reserved 4

• The Foundations of Lean

• Lean-Agile Framework

• Case Studies

Achieving Enterprise Agility

Page 5: Scaling Agile with the Lessons of Lean Product Development Flow

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Handling the cross-team technical and business dependencies of multiple teams

Creating enterprise wide architectures

Managing the workload of people who are required by several teams (this occurs due to any number of reasons but includes folks who have needed subject matter expertise, critical skills or rare knowledge of legacy code).

Coordinating multiple stakeholders with multiple teams

Aligning groups with disparate motivations

Quick Poll of Where People Are

© Copyright 2012 Net Objectives, Inc. All Rights Reserved 6

thinkingpoints

Foundations of Lean

1. Systems thinking

2. Respecting people

3. Management provides leadership

• Understand the whole• Errors due to systems more than

people• Bad behavior systems induced• Good systems won’t guarantee good

results• Bad systems guarantee bad results• Need good systems and good people• Systems have patterns

Page 6: Scaling Agile with the Lessons of Lean Product Development Flow

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The Scrum Model

Product Owner

Development Team & SM

Reflects Reality for One Product and One Team

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Product Owners

Application Development teams & SMs

Stakeholders for multiple programs

Component Teams

Page 7: Scaling Agile with the Lessons of Lean Product Development Flow

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Integration Team

Business Stakeholders

Development Teams

Inter-team dynamics are quite

different from intra-team dynamics

© Copyright 2012 Net Objectives, Inc. All Rights Reserved 10

Scrum is often a good start to spin up Agile teams

It is not necessarily

a good start at

achieving Agility

across an

organization

But in any event, you can

leverage your investment

Page 8: Scaling Agile with the Lessons of Lean Product Development Flow

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scaling Agile with Scrum alone is

ind

ivid

ua

l

te

am

s

te

am

of

te

am

s

… e

nt

er

pr

isefractal

faultyfragile

Intra-team behavior isNot the same as inter-team behavior

© Copyright 2012 Net Objectives, Inc. All Rights Reserved 12

tog evaheW

sdrawkcabti

-edispudna

.nwod

We have got

it backwards

and upside-

down.

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Complex systems still have patterns

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different kinds

of predictability

Page 10: Scaling Agile with the Lessons of Lean Product Development Flow

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which part of the airplane is responsible forflight?

© Copyright 2012 Net Objectives, Inc. All Rights Reserved 16

Ops & Support

Customers

Shared Components

Shared Components

Product Related

Product Related

Product Related

SoftwareRelease

NewRequirements

Development

CustomerProduct Managers

Business LeadersRegional Coordinators

Trainers & Educators

Product Champion(s)

Capabilities

BusinessConsumption

Concept

The Software Development Value Stream

SoftwareProduct

Page 11: Scaling Agile with the Lessons of Lean Product Development Flow

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Ops & Support

Customers

Shared Components

Shared Components

Product Related

Product Related

Product Related

SoftwareRelease

SoftwareProduct

NewRequirements

Development

CustomerProduct Managers

Business LeadersRegional Coordinators

Trainers & Educators

Product Champion(s)

Capabilities

BusinessConsumption

Concept

How Blockages Occur in Value Stream

Not Using MMFs

Doesn’t Do Incremental

Development

Not Involved During Build

Not Involved

Poor Engineering

Practices

Too Many Selected

No Big Picture

© Copyright 2012 Net Objectives, Inc. All Rights Reserved 18

defined

Lean Operations / Manufacturing

reduce cost of variation

empirical

Lean Product Development

low cost flexibility

Lean-Agile Software Developmentrealize business value faster

T Y P E S O F L E A N

Page 12: Scaling Agile with the Lessons of Lean Product Development Flow

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AGILE provides framework and practices for producing increments of functionality

LEAN provides principles and practices which enable defining and prioritizing increments of highest business value

Inp

ut Business

PriorityBusinessPlanning

Business Staging

Ready to Pull

Iter

atio

n

0

IterativeDevelopment

IncrementalDeployment

Support & Feedback

LEAN KANBAN ITERATIVE AGILE

© Copyright 2012 Net Objectives, Inc. All Rights Reserved 20

thinkingpoints

Foundations of Lean

1. Systems thinking

2. Respecting people

3. Management provides leadership

• People must self-organize• People understand their work best• Must also respect the nature of

people

Page 13: Scaling Agile with the Lessons of Lean Product Development Flow

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thinkingpoints

Foundations of Lean

1. Systems thinking

2. Respecting people

3. Management provides leadership

• Vision• Big picture• Holistic

© Copyright 2012 Net Objectives, Inc. All Rights Reserved 22

Let’s go back to

2001 when it (mostly)

all began

Page 14: Scaling Agile with the Lessons of Lean Product Development Flow

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CONSIDER

• Agile paradigm not accepted

• Teams wanted to do it

• “laws” of Agile not understood

• Several beginning methods available

• XP

• Scrum

• Crystal

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Scaling Agility

using methods that work at team level to get teams to

work together

Agility at Scale Focus on entire value

stream

Shortening cycle time

Avoid excessive WIP at

product level

Page 15: Scaling Agile with the Lessons of Lean Product Development Flow

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thinkingpoints

Lean-Agile Framework

1. Drive From Business Value

2. Deliver Value as Soon as Possible

3. Organize for Value Delivery

4. Build Quality In

5. Make Everything Visible

6. Attend to Change

• Discover what is of value• Discover how to build it• Build it• Deploy it

© Copyright 2012 Net Objectives, Inc. All Rights Reserved 26

Agility

Predictability

Business Value

and faster realization of

is where you have

Page 16: Scaling Agile with the Lessons of Lean Product Development Flow

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You need Agility for:– Speed

Faster realization of Business Value

–ValueGet more (business value) from current resources (capacity)

–ProductivityHigher productivity of business value delivery (measurable)

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Agilityis about

Business Value

Increments not

Development Cycles

Page 17: Scaling Agile with the Lessons of Lean Product Development Flow

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Always

7%

Often

13%

Sometimes

16%

Rarely

19%

Never Used

45%

Source: Standish GroupStudy of 2000 projects at 1000 companies

Usage of Features and Functions in Typical System

WASTEand the

DELAY OF VALUE

© Copyright 2012 Net Objectives, Inc. All Rights Reserved 30

focusing on the known, valuable features

gives greater certainty

produces greater value

lowers risk of mis-building and over-building

Deliver in Stagesw h e n p o s s i b l e

Page 18: Scaling Agile with the Lessons of Lean Product Development Flow

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GROUP D ISCUSSION

Discovering what is valuable

or

Building and achieving it

Which is more important?

Page 19: Scaling Agile with the Lessons of Lean Product Development Flow

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discover next increment

discover how to build it and implement it

realize it

BusinessValue

You cannot build the right thing

if you have not discovered it first!”“

© Copyright 2012 Net Objectives, Inc. All Rights Reserved 34

thinkingpoints

Lean-Agile Framework

1. Drive From Business Value

2. Deliver Value as Soon as Possible

3. Organize for Value Delivery

4. Build Quality In

5. Make Everything Visible

6. Attend to Change

• Create Minimal Business Increments• Sequence• Manage across the portfolio

Page 20: Scaling Agile with the Lessons of Lean Product Development Flow

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First Release

Investment

Period

Payback

Period

Profit

Period

Breakeven

Cas

h flo

w

Time

economics of responsiveness

Mark Denne and Jane Cleland-Huang Software by Numbers

© Copyright 2012 Net Objectives, Inc. All Rights Reserved 36

Staged Releases

First

Release

Invest-

ment

Period

Profit

Period

Pay-

back

Period

Cas

h flo

w

Time

Release 1 Net Return

Page 21: Scaling Agile with the Lessons of Lean Product Development Flow

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Staged Releases

Profit

Period

Second

Release

Invest-

ment

Period

Pay-

back

Period

Release 2 Net Return

Cas

h flo

w

Time

Release 1 Net Return

© Copyright 2012 Net Objectives, Inc. All Rights Reserved 38

Profit

Period

Investment

Invest-

ment

Period

Pay-

back

Period

Breakeven

Point

Total Return

Cas

h flo

w

Time

staged releases

Use Minimal Business Increments (MBI)(sometimes called MMFs, MVPs, MVFs, MMRs)

Page 22: Scaling Agile with the Lessons of Lean Product Development Flow

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Business Evolution vs. System Evolution

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Evolving the Business

Page 23: Scaling Agile with the Lessons of Lean Product Development Flow

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Evolving the System

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Incrementally Realizing Business Value

Evolving the System

What risks do these approaches lower?

risk

value

value

risk

Page 24: Scaling Agile with the Lessons of Lean Product Development Flow

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Ideal / Pareto (80/20) Minimal Build Out / Roll Out

Waterfall ? Blend (Portfolio)

Business Value Realization Trends

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Deliver in Stages when possible

Always build in Stages don’t build it if you

don’t know it’s of value

Page 25: Scaling Agile with the Lessons of Lean Product Development Flow

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Business Backlog for STPProgram: No touch STP

High Low

Plan Setup Ent. Data Workflow Auto. STP

Bus Inc

Bus Inc

Bus Inc

Bus Inc

Bus Inc…

9 months

Plan Setup

Ent. Data

Workflow

Auto. STP

80% 10% 10%

6 months!

4 months

1 month of a dev team’s vs.

Realizing value 3 months sooner!

© Copyright 2012 Net Objectives, Inc. All Rights Reserved 46

ACH(automated clearinghouse)

ACH is our electronic network to clear credit and debit transactions with other institutions

Primary Objective: By Year’s end, process 100% of all loans

Primary Objective: Reduce the number of checks required by 25%

Key Feature: 0.0001% error rate

Page 26: Scaling Agile with the Lessons of Lean Product Development Flow

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Business Backlog for ACH

Loans Checks

Goal: 100% of Loans 25% Reduction in Checks

High Low

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Business Backlog for ACH

Loans Checks

Goal: 100% of Loans 25% Reduction in Checks

High Low

Outbound Inbound Withdrawals Terminations

1 4 2 3

Page 27: Scaling Agile with the Lessons of Lean Product Development Flow

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Business Capabilities for ACH

Outbound - Loans

Manage Bank Info

Redirect from chk to ACH

Bank Notify

Update Reconciliation

Cover Funds

Confirm ?

Analytics & Reporting

Web Call in

IVR Paper

BF - Web MMF – Web & Call in

• What are the businesscapabilities needed for ACH?

• What are the sources?• How can we group them

for highest value?

© Copyright 2012 Net Objectives, Inc. All Rights Reserved 50

Business Backlog for ACH

Loans Checks

Goal: 100% of Loans 25% Reduction in Checks

High Low

Outbound Inbound Withdrawals Terminations

1 4 2 3MMF

Web | Call in

BFIVR

BFPaper

Release 1 Release 2 Release 3

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Web Call in

MMF – Web & Call in

User Story Manage banking info for a Web-initiated outbound ACH transaction

Outbound - Loans

Manage Bank Info

Redirect from chk to ACH

Bank Notify

Update Reconciliation

Cover Funds

Confirm ?

Analytics & Reporting

Business Features to User Stories

© Copyright 2012 Net Objectives, Inc. All Rights Reserved 52

Business Backlog for ACH

Loans Checks

Goal: 100% of Loans 25% Reduction in Checks

High Low

Outbound Inbound Withdrawals Terminations

1 4 2 3MMF

Web | Call in

BFIVR

BFPaper

Release 1 Release 2 Release 3

Manage Bank Info

Beware!

Building Manage Bank Info as a standalone component for everything is a system evolution!

Might be more efficient from an IT perspective, but it is NOT from a business value perspective!!!

Page 29: Scaling Agile with the Lessons of Lean Product Development Flow

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Cost of Risk

ALWAYS DRIVE FROM BUSINESSVALUE

Cost of Delay

valu

e t

o t

he b

usi

ness

low

hig

h

release 1 release 4

time

High ROI

© Copyright 2012 Net Objectives, Inc. All Rights Reserved 54

thinkingpoints

Lean-Agile Framework

1. Drive From Business Value

2. Deliver Value as Soon as Possible

3. Organize for Value Delivery

4. Build Quality In

5. Make Everything Visible

6. Attend to change

• Hubs and Pods• Roles required

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how much of what you do is

valuable?rework?

© Copyright 2012 Net Objectives, Inc. All Rights Reserved 56

Getting

Requirements

Testing

Programming

Design

Integration

Planning

Collaboration

Re-doing

requirements

Working from old

requirements

“Fixing” bugs

“Integration”

errors

Deployment

Building

unneeded

features

Overbuilding

frameworks

What Work Do You Do?

TrainingDocumentation

Essentially

duplicating

componentsWhat percentage of your time do you spend on the left? Write it down.

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1. Identify the actions taken in the value stream

Approv

eRequest Reqts Sign Off

Review Deploy

Analysis

Design Code Test

© Copyright 2012 Net Objectives, Inc. All Rights Reserved 58

0.5 hrs 160 hrs8 hrs 8 hrs

120 hrs 280 hrs 240 hrs

100 hrs

8 hrs2 hrs

Approv

eRequest Reqts Sign Off

Review Deploy

Analysis

Design Code Test

1. Identify the actions taken in the value stream

2. What was the real time from start to finish of the action?

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0.5 hrs 160 hrs8 hrs 8hrs

120 hrs 280 hrs 240 hrs

100 hrs

8 hrs2 hrs

Approve.1 / 7.9 hrs

Request0.5 / 0.0 hr

Reqts60 / 100 hrs

Sign Off1 / 7 hrs

Review 2 / 0 hrs

Deploy3 / 5 hrs

Analysis40 / 60 hrs

Design40 / 80 hrs

Code80 / 200 hrs

Test40 / 200 hrs

1. Identify the actions taken in the value stream

2. What was the real time from start to finish of the action?

3. What was the average time working on this vs working on other things?

© Copyright 2012 Net Objectives, Inc. All Rights Reserved 60

0.5 hrs 160 hrs8 hrs 8hrs

120 hrs 280 hrs 240 hrs

100 hrs

8 hrs2 hrs

320 hrs 80 hrs 320 hrs 80 hrs

80 hrs

160 hrs 80 hrs 80 hrs 80 hrs

1. Identify the actions taken in the value stream

2. What was the real time from start to finish of the action?

3. What was the average time working on this vs working on other things?

4. Identify time between actions

Approve.1 / 7.9 hrs

Request0.5 / 0.0 hr

Reqts60 / 100 hrs

Sign Off1 / 7 hrs

Review 2 / 0 hrs

Deploy3 / 5 hrs

Analysis40 / 60 hrs

Design40 / 80 hrs

Code80 / 200 hrs

Test40 / 200 hrs

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© Copyright 2012 Net Objectives, Inc. All Rights Reserved 6113 April 2013

0.5 hrs 160 hrs8 hrs 8hrs

120 hrs 280 hrs 240 hrs

100 hrs

8 hrs2 hrs

320 hrs 80 hrs 320 hrs 80 hrs

160 hrs 80 hrs 80 hrs 80 hrs

1. Identify the actions taken in the value stream

2. What was the real time from start to finish of the action?

3. What was the average time working on this vs working on other things?

4. Identify time between actions

5. Identify any loop backs required

80 hrs

65% defective

Repeat 3X

20% rejected

Repeat 1X

Approve.1 / 7.9 hrs

Request0.5 / 0.0 hr

Reqts60 / 100 hrs

Sign Off1 / 7 hrs

Review 2 / 0 hrs

Deploy3 / 5 hrs

Analysis40 / 60 hrs

Design40 / 80 hrs

Code80 / 200 hrs

Test40 / 200 hrs

© Copyright 2012 Net Objectives, Inc. All Rights Reserved 62

1. Identify the actions taken in the value stream2. What was the real time from start to finish of the action?3. What was the average time working on this vs working on other things?4. Identify time between actions5. Identify any loop backs required6. Calculate Process Cycle Efficiency:

Approve.1 / 7.9 hrs

Request0.5 / 0.0 hrs

Reqts60 / 100 hrs

Sign Off1 / 7 hrs

Review 2 / 0 hrs

Deploy3 / 5 hrs

Analysis40 / 60 hrs

Design40 / 80 hrs

Code80 / 200 hrs

Test40 / 200 hrs

0.5 hrs 160 hrs8 hrs 8hrs

120 hrs 280 hrs 240 hrs

100 hrs

8 hrs2 hrs

320 hrs 80 hrs 320 hrs 80 hrs

160 hrs 80 hrs 80 hrs 80 hrs

65% defectiveRepeat 3X

20% rejectedRepeat 1X

80 hrs

Approve.1 / 7.9 hrs

Request0.5 / 0.0 hrs

Reqts60 / 100 hrs

Sign Off1 / 7 hrs

Review 2 / 0 hrs

Deploy3 / 5 hrs

Analysis40 / 60 hrs

Design40 / 80 hrs

Code80 / 200 hrs

Test40 / 200 hrs

Avg Time Worked Total Cycle Time

0.5 hrs 160 hrs8 hrs 8 hrs

120 hrs 280 hrs 240 hrs

100 hrs

8 hrs2 hrs

320 hrs 80 hrs 320 hrs 80 hrs

160 hrs 80 hrs 80 hrs

65% defectiveRepeat 3X

20% rejectedRepeat 1X

80 hrs

80 hrs

PCE = = 14.9%509 hrs

3433 hrs

509 hrs

3433 hrs

Avg Time Worked Total Cycle Time

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Approve.1 / 7.9 hrs

Request0.5 / 0.0 hrs

Reqts60 / 100 hrs

Sign Off1 / 7 hrs

Review 2 / 0 hrs

Deploy3 / 5 hrs

Analysis40 / 60 hrs

Design40 / 80 hrs

Code80 / 200 hrs

Test40 / 200 hrs

0.5 hrs 160 hrs8 hrs 8hrs

120 hrs 280 hrs 240 hrs

100 hrs

8 hrs2 hrs

320 hrs 80 hrs 320 hrs 80 hrs

160 hrs 80 hrs 80 hrs 80 hrs

65% defectiveRepeat 3X

20% rejectedRepeat 1X

80 hrs

320 hrs 80 hrs 320 hrs 80 hrs

160 hrs 80 hrs 80 hrs

65% defectiveRepeat 3X

20% rejectedRepeat 1X

80 hrs

80 hrs

3433 – 509 = 2924

Eliminating delays between what you do

Getting better at what you do

Which gives a better return?

© Copyright 2012 Net Objectives, Inc. All Rights Reserved 64

Here’s a spot!

…and another!

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© Copyright 2012 Net Objectives, Inc. All Rights Reserved 66

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Ops & Support

Customers

Shared Components

Shared Components

Product Related

Product Related

Product Related

SoftwareRelease

SoftwareProduct

NewRequirements

Development

CustomerProduct Managers

Business LeadersRegional Coordinators

Trainers & Educators

Product Champion(s)

Capabilities

Business

Consumption

Concept

Product Portfolio Management

Consider the Software Value Stream

Managing

here Reduces

induced

waste here

© Copyright 2012 Net Objectives, Inc. All Rights Reserved 68

Lean Enterprise

Business

Management

Team

MAKE

VALUE

FLOW

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MAKE

INCREMENTAL DELIVERY

CREATIVE PROBLEM SOLVING

QUALITY BUILT INtechnical

Team

technical

© Copyright 2012 Net Objectives, Inc. All Rights Reserved 70

technical

VALUE

PRIORITIZATION

BUSINESS ITERATIONS

RELEASE PLANNING

Business

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© Copyright 2012 Net Objectives, Inc. All Rights Reserved 71

technical

FLOW

Value Stream Visualization

Impediment Impact

Workflow as Process

ACCOUNTABILITY

Manage (limit) queues

Visual controls

Manage flow (process)

Management

© Copyright 2012 Net Objectives, Inc. All Rights Reserved 72

Portfolios

Programs

Projects

Book of WorkRolling ReleasesLevels 1, 2, & 3

Program BacklogReleases

Multiple Teams

Product BacklogIterations

Whole Team

Lean

-Agi

le

Fram

ewo

rkSc

ale

d A

gile

Fr

amew

ork

Scru

m

Fram

ewo

rk

Executive,Business,

Management,& Team

Business,Management,

& Team

Business& Team Practices

Responsibilities Scale and ScopeToolsets Complexity

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Lea n - Agi le Ro les

Business

Business Subject Matter ExpertBusiness Analyst

Focus GroupsUser Acceptance Testers

Lean-Agile PM (Scrum Master)Technical LeadDevelopersTestersSupport

Value Stream OwnerBusiness Sponsor

Stakeholders

CIOCTOTechnology Sponsor

Business Product OwnerBusiness Program Manager

Product Owner (Release)

Technology OwnerTechnology Delivery ManagerApplication Development Manager

HUB / MANAGEMENT

EXECUTIVE

POD / FRONT LINElevel 1

level 2

level 3

Lea n - Agi le Ro les

Technology

© Copyright 2012 Net Objectives, Inc. All Rights Reserved 74

Value Stream Owner

Realize highest business value

Optimal cycle time from idea to realization

Business Sponsor Realize business value and ROI

Assigns BPO, Business Value Priority and Budget

Technology Sponsor

Technology and process to incrementally realize business value with quality solutions

Ensure holistic enterprise system integrity

Establish the technology boundaries for the organization

Stakeholders Business standards for the organization

P O R T F O L I O - R O L E S A N D R E S P O N S I B I L I T I E S

LEVEL 3 - EXECUTIVE

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hubs organize delivery of value

© Copyright 2012 Net Objectives, Inc. All Rights Reserved 76

H U B - R O L E S A N D R E S P O N S I B I L I T I E S

Business Product Owner

Prioritize & incrementally realize business value, ROI

Owns scope, timeline, and priority; assigns the PO

Product Owner (Release)

Owns scope, timeline, priority, and sequence to produce the assigned minimal value increment; Drives the Pods - continually prioritizes, defines and accepts what the Pod(s) are producing.

Technology Owner Technology, process and practices, and boundaries to iteratively produce business value increments

Business PM Visibility, Project administration and oversight on behalf of the Business.

TechnologyDelivery Manager

Flow: Continual, predictable, incremental delivery of quality solution(s)

Application Development Mgr

Technical Integrity: Extensibility & maintainability

Architecture & design; Development standards

LEVEL 2 - MANAGEMENT

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© Copyright 2012 Net Objectives, Inc. All Rights Reserved 77

Hubs: Application AreasHolistic Technical Integrity

Architecture

System Design

Policies – Readiness, Planning, Development, Test, & Deploy

Development Standards

Lean-Agile Process (Iterative & Kanban) & Process Control

Engineering Practices

Documentation

Technical ‘Debt’

© Copyright 2012 Net Objectives, Inc. All Rights Reserved 78

pods deliver value

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Lean-Agile PM (Scrum Master)

Visibility, transparency, coaching for Lean-agile Practices

Continuous incremental process improvement

Business Lead/SME

Acceptance criteria

Validation and implementation of business value increment

Whole Team Produce and implement quality business value increment(s)

Continuous incremental improvement

Whole team includes all skills necessary to produce a business value increment

Core: Business analyst, technical lead, application developers, QA testers, production support

P O D ( S ) - R O L E S A N D R E S P O N S I B I L I T I E S

LEVEL 1 – FRONT LINE

© Copyright 2012 Net Objectives, Inc. All Rights Reserved 80

thinkingpoints

Lean-Agile Framework

1. Drive From Business Value

2. Deliver Value as Soon as Possible

3. Organize for Value Delivery

4. Build Quality In

5. Make Everything Visible

6. Attend to Change

• QA is about preventing defects• Don’t build it if you don’t know it• It is not fail fast it is detect errors fast

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© Copyright 2012 Net Objectives, Inc. All Rights Reserved 81

DILBERT: © Scott Adams/Dist. by United Feature Syndicate, Inc.

© Copyright 2012 Net Objectives, Inc. All Rights Reserved 82_s

Customer: I need new

features yesterday

Devs hear: Get it done; Fast,

at all costs!

code base: Sloppy changes

code base: Increased complexity

code base: Increased defects

code base: Exponential

increase in time to add features

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© Copyright 2012 Net Objectives, Inc. All Rights Reserved 83_s

Testers are overloaded

Testing occurs long after coding

Devs don’t get immediate feedback

Devs create more defects

Testers w/more workSystems w/more defects

further delays in feedback

© Copyright 2012 Net Objectives, Inc. All Rights Reserved 84

True process efficiency = 7.8%

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© Copyright 2012 Net Objectives, Inc. All Rights Reserved 85

Finding defects is waste.

Preventing defects is essential”

© Copyright 2012 Net Objectives, Inc. All Rights Reserved 86

Acceptance-centric

Continuous integration

Collaboration

Minimize technical debt

Minimize process waste

All process visible

LEAN THINKINGBuild Quality In

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© Copyright 2012 Net Objectives, Inc. All Rights Reserved 87

© Copyright 2012 Net Objectives, Inc. All Rights Reserved 88

GROUP D ISCUSSION

What happens if we have poor quality?

What causes poor quality?

About Poor Quality

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© Copyright 2012 Net Objectives, Inc. All Rights Reserved 89

Example: Acceptance TDD

Standard

Hours

Hol/Sun

Hours

Wage Pay()

40 0 20

45 0 20

48 8 20

Basic Employee Compensation

Each week, hourly employees are paid

• A standard wage per hour for the first 40 hours worked

• 1.5 times their wage for each hour after the first 40 hours

• 2 times their wage for each hour worked on Sundays and holidays

Payroll.Fixtures.WeeklyCompensation

© Copyright 2012 Net Objectives, Inc. All Rights Reserved 90

Example: Acceptance TDD

Standard

Hours

Hol/Sun

Hours

Wage Pay()

40 0 20 $800

45 0 20 $950

48 8 20 $1520

Basic Employee Compensation

Each week, hourly employees are paid

• A standard wage per hour for the first 40 hours worked

• 1.5 times their wage for each hour after the first 40 hours

• 2 times their wage for each hour worked on Sundays and holidays

Payroll.Fixtures.WeeklyCompensation

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© Copyright 2012 Net Objectives, Inc. All Rights Reserved 91

BEFORE

ITERATION

PLANNING

ITERATION

PLANNING

DEVELOPMENT

STORY

ACCEPTANCE

Acceptance Test Timeline

Product Ownerrefines stories & tests

Teamadd detail

Teamrefine testsget tests to pass Team

Add to regression test suite

© Copyright 2012 Net Objectives, Inc. All Rights Reserved 92

Test-Later Test-First

Design the code "in your head" or

using design artifacts

Verify this structure mentally, if you

think of it, and have the time (how

do you “test” your design?)

Automated tests are hard to add

(code not always designed for

them)

Intentions are recorded separately

from the code

“Implementation-centric”

Analysis/design is done in the

context of acceptance tests,

written for each story.

Every aspect of the solution is

verified—quickly and repeatable

Code is designed to be inherently

testable from the beginning

Tests record intent and provide

examples

Tests give insight about design

quality

“Interface-centric”

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© Copyright 2012 Net Objectives, Inc. All Rights Reserved 93

New

Quality Assurance

the

proper role of

is preventing defectsand improving process

and

© Copyright 2012 Net Objectives, Inc. All Rights Reserved 94

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© Copyright 2012 Net Objectives, Inc. All Rights Reserved 95

thinkingpoints

Lean-Agile Framework

1. Drive From Business Value

2. Deliver Value as Soon as Possible

3. Organize for Value Delivery

4. Build Quality In

5. Make Everything Visible

6. Attend to Change

• Value stream• Explicit policies• Work being done

© Copyright 2012 Net Objectives, Inc. All Rights Reserved 96

EXPONENTIALLY MORE WORK

working on multiple projects at same time induces

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© Copyright 2012 Net Objectives, Inc. All Rights Reserved 97

What We Think Willand What Does Happen

Rework

Overhead

Planned Work

Rework

Overhead

Planned Work

New Features

Cost of Interruptions

© Copyright 2012 Net Objectives, Inc. All Rights Reserved 98

Time Available for New Features

Time to add new functionality

Years in future

Current

Time Spent Fixing Bugs Within and Across Systems

??? Years?

% o

f ca

pac

ity

Maximum capacity of the team

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© Copyright 2012 Net Objectives, Inc. All Rights Reserved 99

thinkingpoints

Lean-Agile Framework

1. Drive From Business Value

2. Deliver Value as Soon as Possible

3. Organize for Value Delivery

4. Build Quality In

5. Make Everything Visible

6. Attend to Change

• Too much change can be worse than no change

• Attend to pilots• Lean-Agile Roadmap

© Copyright 2012 Net Objectives, Inc. All Rights Reserved 100

T E L L I N G P E O P L E “ J U S T D O I T ”

J U S T D O E S N ’ T D O I T

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© Copyright 2012 Net Objectives, Inc. All Rights Reserved 101

Legacy Organization: Matrix Resources to Projects

Project 1

Project 2

Project 3

Project 4

Project N

© Copyright 2012 Net Objectives, Inc. All Rights Reserved 102

Let’s Create a Pilot Project

Project 1

Project 2

%

Project 3

Project 4

Project N

Business Analyst, Architect, Usability Expert, Developer, Developer, Tester, Project Manager

Expert

Experience has shown that if you create a cross-functional co-located team you will improve 3x without changing your process.

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© Copyright 2012 Net Objectives, Inc. All Rights Reserved 103

Transitions Require Why and How

Understanding the why may get you started

Understanding the how will help overcome the fear

The perceived value must be greater than the fear

© Copyright 2012 Net Objectives, Inc. All Rights Reserved 104

Enterprise Agility

Business

Management

Team

technical

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© Copyright 2012 Net Objectives, Inc. All Rights Reserved 105

Lean-Agile: Evolving Agility

Continually evolving

Sustaining, not improving

Declining MaturationA

gilit

y

Time (years)

Iterative Flow Highest Business Value

Low

Lean Thinking

Business

MgmtTeam

© Copyright 2012 Net Objectives, Inc. All Rights Reserved 106

Lean-Agile: Evolving Agility

Continually evolving

Sustaining, not improving

Declining MaturationA

gilit

y

Time (years)

Iterative Flow Highest Business Value

Low

∞Where are you currently?

TeamBusiness

Management

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© Copyright 2012 Net Objectives, Inc. All Rights Reserved 107

change the

management

system

© Copyright 2012 Net Objectives, Inc. All Rights Reserved 108

change the

management

system

Should a company target its culture in its efforts to transform its production processes and all the [roles] associated with it?

It is tempting to answer: Yes!

But that would be a mistake.

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© Copyright 2012 Net Objectives, Inc. All Rights Reserved 109

change the

management

system

Culture is no more likely a target than the air we breathe. It is not something to target for change.

Culture is an idea arising from experience.

© Copyright 2012 Net Objectives, Inc. All Rights Reserved 110

change the

management

system

The idea of the culture of a place or organization is a result of what we experience there. In this way, a company’s culture is a result of its management system.

Culture is critical.

To change it, you have to change the management system.

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© Copyright 2012 Net Objectives, Inc. All Rights Reserved 111

change the

management

system

Focus on the management system, on targets you can see: leaders’ behavior, specific expectations, tools, routine practices.

Lean production systems make this easier, because they emphasize explicitly defined processes and use visual controls.”

© Copyright 2012 Net Objectives, Inc. All Rights Reserved 112

Lean-Agile Roadmap

• Where are you?

– Product initiation

– # products

• Culture

• Team structure

• Cross product / component dependencies

• Technical debt

• Level of testing

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thinkingpoints

Case Studies

1. Agile Planning

2. Cross-functional Teams

3. Dynamic Feature Teams

4. Shared Backlogs

5. Product Management

• Focus on MBI• Pareto Vs Parkinson

© Copyright 2012 Net Objectives, Inc. All Rights Reserved 114

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© Copyright 2012 Net Objectives, Inc. All Rights Reserved 116

thinkingpoints

Case Studies

1. Agile Planning

2. Cross-functional Teams

3. Dynamic Feature Teams

4. Shared Backlogs

5. Product Management

• Self-organizing, cross-functional, teams

• Must attend to laws of software development

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Team Organization

UI Team

Mid-tier Team

Database Team

UI Team

Mid-tier Team

Database Team

Team

1

Team

2

Team

3Cross-team cross-tribe collaboration is difficult.

Inter-tribal

Intra-tribal

© Copyright 2012 Net Objectives, Inc. All Rights Reserved 118

thinkingpoints

Case Studies

1. Agile Planning

2. Cross-functional Teams

3. Dynamic Feature Teams

4. Shared Backlogs

5. Product Management

• Principles trump practices• Swarm when possible

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Background

Case Study: Military Aircraft

• 7 components on plane

• 70 person dev group (50 devs)

• 7 teams (4-10 each)

• 4 test platforms, 2 simulators, 1 plane

• Challenge was integration extremely

difficult

© Copyright 2012 Net Objectives, Inc. All Rights Reserved 120

Dynamic Feature Teams

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© Copyright 2012 Net Objectives, Inc. All Rights Reserved 121

Resulting Savings

63% increase in throughput

42% decrease in defects

Greater than 22% savings* ($1.73M)

*Was thought to be higher but not claimed due to political reasons

© Copyright 2012 Net Objectives, Inc. All Rights Reserved 122

thinkingpoints

Case Studies

1. Agile Planning

2. Cross-functional Teams

3. Dynamic Feature Teams

4. Shared Backlogs

5. Product Management

• Self-organization across teams does not work

• Create a bigger team

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Background

Case Study: Coordinating Teams

• Multiple teams

• Specialized

• Each team completed sprints in two weeks

…but value not delivered for months

…and then with challenges

© Copyright 2012 Net Objectives, Inc. All Rights Reserved 124

Overall Team Organization

Product Line B applications

Component team for line B applications

System-Wide Component Team

Component team for line A applications

Product Line A applications

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© Copyright 2012 Net Objectives, Inc. All Rights Reserved 125

Teams on a Project

System-Wide Component Team

Product Line B applications

Component team for line B applications

Component team for line A applications

Product Line A applications

© Copyright 2012 Net Objectives, Inc. All Rights Reserved 126

MBI

Split MBI

according to

Teams

Teams split according

to components

Teams work on

their parts Teams work on

their part until done

MBI

Eventually integrating

them together

Feedback times for:

Team

Across teams

Customer

Progress bar

2 weeks

6 weeks

8 weeks

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© Copyright 2012 Net Objectives, Inc. All Rights Reserved 127

Common Challenge

Common Guiding

Principle?

© Copyright 2012 Net Objectives, Inc. All Rights Reserved 128

Principles to Guide Us

• Front of the Value Stream

– Value

– Minimal Marketable features

• Flow – making our teams efficient

– People work on one thing

– No delays in workflow

– People must pull work when

ready

– Work must be available to teams

in a coordinated fashion

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© Copyright 2012 Net Objectives, Inc. All Rights Reserved 129

PO

RT

FO

LI

OIn

pu

t BusinessPriority

BUSINESS DISCOVERY BUSINESS DELIVERY

BusinessPlanning

Business Staging

Ready to Pull

CONTEXT OF THE SOLUTION

DecisionHigh enough business value?

DecisionTechnically feasible, sufficient ROI?

Iter

atio

n

0

IterativeDevelopment

IncrementalDeployment

Support & Feedback

DecisionReady to release?

DecisionIs there capacity?

Define acceptance criteria and feature sequence

Build iteratively, deploy incrementally

Review business value , approve, and prioritize

Define value increments and sequence

Define product backlog

Iterative Development

Iterative Development

Iterative DevelopmentSh

ared

Bac

klo

g

Inte

grat

ion

Tra

in

© Copyright 2012 Net Objectives, Inc. All Rights Reserved 130

MBI

Split MBI

into sub-features

Development teams split

according to components

Teams work on

their part

After one iteration, teams

integrate their components

MBI

Progress bar

Integration still required

but takes much less time

Feedback times for:

Team

Across teams

Customer

2 weeks

2 weeks

2 weeks

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© Copyright 2012 Net Objectives, Inc. All Rights Reserved 131

thinkingpoints

Case Studies

1. Agile Planning

2. Cross-functional Teams

3. Dynamic Feature Teams

4. Shared Backlogs

5. Product Management

• Product Owner Role Limited• Cross Product View Needed

© Copyright 2012 Net Objectives, Inc. All Rights Reserved 132

Case studyCoordinating Multiple Business Stakeholders with Multiple Team

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© Copyright 2012 Net Objectives, Inc. All Rights Reserved 133

The Simple Case

A1

A2

A1

1. Define Business capabilities

2. Create MMFs Team Product Backlog

A1dA2A

3. Prioritize MMFs

4. Create high level stories5. Assign to team backlog

Product Owners

Architecture / Technical Leads

A1cA1bA1a Team 1

Stakeholders Development teams

© Copyright 2012 Net Objectives, Inc. All Rights Reserved 134

A Harder Case

A1

A2

A1

1. Define Business capabilities

2. CreateMMFs

A1dA2A

3. Prioritize MMFs 4. Create high level stories

5. Assign to team backlogs

Product Owners

A2c

Architecture / Technical Leads

A1cA1bA1a

A2bA2a

Team Product Backlogs

Team 1

Team 2

Team 3

Team 4

Stakeholders Development teams

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Normal Problem – We Call it Tough

A

B

C

D

E

Stakeholders Development teams

Team Product Backlogs

Team 1

Team 2

Team 3

Team 4

Product Owners

Architecture / Technical Leads

© Copyright 2012 Net Objectives, Inc. All Rights Reserved 136

Product Owner Role Stretched too ThinTeam Product Backlogs

Team 1

Team 2

Team 3

Team 4

A

B

C

D

E

?

??

?

??

?

Product Owners do project management

Stakeholders can’t go to one source to see what to do

Teams have to coordinate with themselves

Stakeholders Development teams

Product Owners

Architecture / Technical Leads

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Product Managers and Product Owners

Product Managers

Product Owners

Team Product Backlogs

Team 1

Team 2

Team 3

Team 4

A

B

C

D

E

Stakeholders Development teams

Product Manager: • represents the stakeholders•prioritizes MMFs•breaks MMFs into components

Product Owner: •acts as SME to team• represents team to product managers•breaks MMFs into components with Prod Mgrs•breaks components into stories

Architecture / Technical LeadsArchitects / Technical Leads• responsible for technical dependencies across teams•provide high level costs to Product Managers

© Copyright 2012 Net Objectives, Inc. All Rights Reserved 138

Agile At Scale

A1

B1

C1A2

A1

B3

B2

B1

C2

C1

1. Define Business capabilities

2. CreateMMFs

B1c

B2c

Blo

cked

B3c

A1dA2

B2B3

C2

A

B

C

3. Prioritize MMFs 4. Create high level stories

5. Assign to team backlogs

Architecture / Technical Leads

B1bB1a

A1cA1bA1a

B2bB2a

B3bB3a

Team Product Backlogs

Team 1

Team 2

Team 3

Team 4

Product Managers

Product Owners

Stakeholders Development teams

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© Copyright 2012 Net Objectives, Inc. All Rights Reserved 139

Drive From Business ValueDeliver Value as Soon as PossibleOrganize for Value DeliveryBuild Quality InMake Everything VisibleAttend to Change

key points

© Copyright 2012 Net Objectives, Inc. All Rights Reserved 140

Net Objectives’ Webinars

_s

Business & Agile Webinar Series – April – December 2013

An Introduction to Agile from a Business / Executive Point of View

Agile Implementations: Overviews of Scrum, Kanban, and Scrumban

How to Start an Agile Implementation

Team Kanban: Manifesting Lean at the Team Level

Enhancing and Extending Scrum With Lean

Patterns of Scaling Agile Across Teams

Patterns of Scaling Agile Across an Enterprise (will discuss the Scaled Agile Framework as well as our own Lean-Agile Roadmap

The Net Objectives Enterprise Agility Roadmap: Patterns of Successful Lean-Agile Adoption

Technical Agility Series

Technical Agility: What Design Patterns Were Made For

Emergent Design: The Practical Application of Design Patterns in the Agile World

Acceptance Test-Driven Development: An Essential Practice That Saves More Time Than It Takes

Sustainable Test-Driven Development: How to Have TDD Improve Your Designs and Tests Without Slowing You Down

See www.netobjectives.com/events to learn more

Register at www.netobjectives.com/register for slides & more

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© Copyright 2012 Net Objectives, Inc. All Rights Reserved 141copyright © 2010 Net Objectives Inc.

Register at www.netobjectives.com/register

See www.netobjectives.com/resources

Contact me at [email protected]

Twitter tag @alshalloway

Thank You!

© Copyright 2012 Net Objectives, Inc. All Rights Reserved 142

Lean Enterprise

Business

Management

Team

ASSESSMENTS

CONSULTING

TRAINING

COACHING

Lean for Executives

Product Portfolio Management

Business Product Owner

Scaled Agile Framework

Lean Management

Project ManagementLean-Agile

Kanban / Scrum

ATDD / TDD / Design Patterns

technical process

QUE S T I O N S?

For more info on free resources see:www.netobjectives.com/resources