Agile IT in Statoil- Tackling new business realities with IT

Tor-Ivar HalsAgile Transformation Lead

Statoil ASAtoriha@statoil.com

@torivarhals

Our energy sector is volatile

2015-01-212 Classification: Internal

IT Governance

2015-01-083 Classification: Internal

Corporate IT

Business Area IT

GBS IT(Internal Service

Provider)

2015-01-214 Classification: Internal

700FTEs

55IT projects in 2014

75+Product Owners

50+IT Managers

3170Applications

60+ IT teams

Statoil IT – the setup

Statoil IT Delivery Framework

2015-01-215 Classification: External

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IT Investments/Modifications Operations

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Program Epic/Feature

Technical/ArchitectureEpic/Feature

User Stories (Business features/minor

mod/Arch/Operations)

Agile Product Lifecycle Team

Enterprise IT Arch

Delivery Manager(IT Line Manager) Release Planning

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Release Coordinator

BA Line MgmtCIO

Product Owner

Portfolio Responsible

Program/Product Area Manager

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Portfolio Vision and Roadmap

Business Epic

maturing and scoping

Business Value

Realization

IT Architect

Prioritization of Program

Backlog

Product/Program Area

Vision and Roadmap

Functional Release Planning

Product Owner Delivery Manager(IT Line Manager)

Program Backlog

Refinement

Product Backlog

Refinement

Technical Release Planning

Sprint Planning

2015-01-216 Classification: Internal

IT Projects and agile deliveries

Projects • Are planned as part of the IT Master Plan process

• Have a owner in the business (asset owner)

• Projects can span products and organizational borders

• “Clash” between project teams vs “stable delivery teams” in the line organisations

• Project reviews 1 year after final delivery. Business Value delivered?

2015-01-217 Classification: Internal

Handling some practical issues...

2015-01-218 Classification: Internal

Transforming to an efficient agile IT delivery ”engine”

…is a long journey in cultural change…

The foundation in our framework

(based on Agile – Lean Thinking)

2015-01-219 Classification: Internal

2015-01-2110 Classification: Internal

Cultural change:From ”Single Hero” to ”team based deliveries”

2015-01-2111 Classification: Internal

Cultural change:I need my project and time/cost estimates!

Yes I have a fixed scope (is there really any other way…?).

2015-01-2112 Classification: Internal

What will it cost?”

When is it finished?

Deliver continouous flow of low risk - high value stuff first, then consider

what else you need…

Based on our capacity we can give youan rough estimate, but it really depends on when you have received

sufficient business value

Critical and high priority deliveries first,next you decide what else you need

(based on business value)

Cultural change – Agile Leadership:Resource optimisation vs flow optimisation

2015-01-2113 Classification: Internal

As long as all my employees are busy with their tasks I´ve told the to do – I´m

HAPPY!

Hmm… how can help my teams increase business value and deliver features

even faster to our customers??

“Resource Owner Leadership” Command and Control

Agile Servant leader

14

…some practical tools …

2015-01-21Classification: Internal

IT Governance Model interface

Team collaboration, sharing and motivation

Team transparency

Team Agility and improvement culture

Team Autonomy

Not wanted Observed behaviour and practices Wanted

- Team is responsible!- Team have mandate, competence and trust to deliver "start-to-finish“ - Team have required infrastructure privileges to deliver "start-to-finish“- Dependencies outside the team are continuously managed and minimized- Minimized handovers (team internal- and external)

- PO defines product vision and owns the product backlog- PO is empowered and prioritizes backlog (what), team decides how and who- Team plan and execute work to control technical debt – aligns with PO- PO has knowledge to prioritize and is aligned with business and IT master plan

projects- Team and PO collaborates as a team, and PO drives backlog refinement process- PO’s coordinates across products (other PO’s)- PO owns a functional release plan

- Team rapidly adapts to changing customer priority - [Software development] The complete software delivery process is automated

(Continuous Delivery practices)- Team work in short iterations to enable fast feedback loops with stakeholders- Structured measurements are used to support improvements- “Time to market” is measured and used to evaluate improvements- Experimentation and improvement initiatives are actively supported by Leaders- Fail early - failures are shared and considered as an opportunity to learn

- Task priorities and status are visualized and shared openly- Early/frequent deployment to test and production- Definition Of Done (DoD) is defined and used for all steps for all backlog items- Frequent communication with PO and end users- Team openly shares successes and failures

- Team is co-located- Team members have broad competence in all relevant areas- Team have shared commitment for all work- Team members often work in pairs- Team members are enthusiastic about supporting each other- Team members are motivated and happy (HIGH score on HappyIndex)

Security Classification: Internal - Status: Draft

- Insufficient Backlog refinement to clarify dependencies- Team is depending on competence /infrastructure found in

other units/teams to be able to deliver to end user- Throughput is often blocked/delayed due to "waiting for

others”

- Team prioritizes user stories on the product backlog - PO and IT Leader in GBS not aligned to clarify demand VS

capacity- Dependencies between products/Product Owners not managed- Product Owner unavailable for team- PO disconnected from Business (demand)- Projects use resources/team capacity directly (bypasses PO)

- No structured process for improvement- Little time available for reflection or improvements- Short term focus on delivery over capabilities (for long lived

Products)- Improvement agenda kept internal within the team- Leader not engaged in continuous improvements- Too many parallel improvement/change initiatives- Failures are only considered as negative

- No shared view on status for work in progress- No defined process for how the team works- No visual management of tasks and status- Team does not expose delivery status until “finished”

- Distributed team in different time-zones- Competence Silos within the team (risk & bottlenecks occur)- No real common commitment/shared goals- Team members not sufficiently allocated to team- Team members work individually to solve tasks

1 2 3 4 5 6

Value stream mapping - steps

Value streamAll of actions, both value added and

non-value added that bring a product or service to the customer.

Value stream mapServes as a blueprint for lean implementation

1. Identify the value stream or process to focus on2. Map the current state value stream3. Identify the “pain areas” 4. Develop the future state value stream5. Change the current state into future state

Steps to value stream mapping:

”Agile Transformation Team” to fuel change

• Statoil IT Vice President is Product Owner

• Continouous monitoring of progress of agile transformation – adjusts priorities accordingly

• Training and coacing of teams, scrum masters, leaders, product owners and IT portfolio managers

• Facilitating workshops (Team Maturity Workshops, Value Stream Mapping, etc)

• Success measured by happy teams and happy customers!

2015-01-2117 Classification: Internal

Summary

2015-01-2118 Classification: Internal

• Optimize on flow• Experiment - change what doesn´t work!

• Embrace change – and don´t under estimate the effort it takes to change people behaviour

• Be brave – and have fun!

Smidig Eierstyring I Statoil

Tor-Ivar HalsLeader Agile Transformation TeamE-mail address: toriha@statoil.com

www.statoil.com

2015-01-2119 Classification: Internal