why agile is failing in large enterprises and what you can do about it
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This deck was designed by Red Clay Interactive and the content was produced by LeadingAgile.TRANSCRIPT
WHY AGILE IS FAILINGIN LARGE ENTERPRISES
WHY AGILE IS FAILINGIN LARGE ENTERPRISES
…and what you can do about it
A BRIEF HISTORICAL PERSPECTIVE
1943
1950-
1960s
1985
1990
1995
1996
1997
1998
2000
2001
USAF & NASAX-15 hypersonic jetIterative Incremental Delivery
Hirotaka Takeuchi & Ikujiro NonakaThe New New Product Development Game
1990 - Sutherland & SchwaberScrum Framework
DSDN ConsortiumDynamic SystemDevelopment Method
1996 - Beck, Cunningham, JeffriesExtreme Programming
Jeff de LucaFeature Driven Development
Alistair CockburnCrystal Methodologies
Robert CharetteLean Development
THEAGILE
MANIFESTO
Taiichi Ohno Toyota Production SystemKanban
Hardware Software
Individuals & interactions
Processes & toolsover
Working softwareComprehensive documentation
over
Customer collaboration Contract negotiationover
Responding to change Following a planover
That is, while there is value in the items on the right, we value the items on the left more.
We are uncovering better ways of developing software by doing it and helping others do it. Through this work we have come to value:
Source: www.agilemanifesto.org
MANIFESTO VALUES
Satisfy the Customer
Welcome Change
Deliver Frequently
Collaborate Daily
Support & Trust Motivated
Teams
Promote Face-to-Face Conversations
Deliver Working Software
Promote Sustainable
Pace
Promote Technical
Excellence
Maximize Through Simplicity
Have Self-Organized
Teams
Reflect & Adjust
Regularly
Source: www.agilemanifesto.org
MANIFESTO PRINCIPLES
BELIEFS ABOUT AGILE & TRANSFORMATION
Culture
PracticesStructure
BELIEFS…
Culture
PracticesStructure
• Focused on changing hearts and minds
• Focused on being agile rather than doing agile
• Focused on values and principles
CULTURE DRIVEN
Culture
PracticesStructure
• Focused on changing hearts and minds
• Focused on being agile rather than doing agile
• Focused on values and principles
• Belief that delivery systems will emerge based on new thinking
CULTURE DRIVEN
Practices
StructureCulture
• Focused on the things that you do
• Focused on roles, ceremonies, and artifacts
• Can be management driven or technically driven
PRACTICES DRIVEN
Practices
StructureCulture
• Focused on the things that you do
• Focused on roles, ceremonies, and artifacts
• Can be management driven or technically driven
• Belief that agile is a process or way to work
PRACTICES DRIVEN
Structure
CulturePractices
• Focused on forming teams and governing the flow of value
• Focused on aligning the organization first
STRUCTURE DRIVEN
Structure
CulturePractices
• Focused on forming teams and governing the flow of value
• Focused on aligning the organization first
• Belief that culture and practices only emerge within a rational structural and planning framework
STRUCTURE DRIVEN
Culture
PracticesStructure
... all three are essential, but where you start is also essential…
WHERE TO START?
LEADINGAGILE THEORY OF TRANSFORMATION
Theory of Transformation
Agile transformation begins by defining a
rational system of delivery for the enterprise
Theory of Transformation
True agility comes by breaking dependencies between teams across the
organization
Theory of Transformation
Healthy culture and solid practices emerge within a
rational delivery framework
WHY AGILE WORKS
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Clarity
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Clarity Accountability
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Clarity Accountability Measureable Progress
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Clarity Accountability Measureable Progress
Few if any dependencies
WHY AGILE WORKS AT SCALE
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User Story
User Story
User Story
User Story
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User Story
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Clarity Accountability Measureable Progress
Team
Database
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User Story
User Story
User Story
User Story
User Story
User Story
User Story
Governance Accountability Measureable Progress
Team
Database
Report
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User Story
User Story
User Story
User Story
User Story
User Story
User Story
Structure Measureable Progress
Governance
Team
Database
Report
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User Story
User Story
User Story
User Story
User Story
User Story
User Story
Structure Metrics & Tools
Governance
Team
Database
Report
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User Story
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Structure Metrics & Tools
Governance
Teams have autonomy across the organization
WHY AGILE FAILS
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Database
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Database
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User Story
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User Story
User Story
User Story
User Story
Lack ofClarity
Team
Database
Report
Screen
User Story
User Story
User Story
User Story
User Story
User Story
User Story
Lack ofClarity
Lack ofAccountability
Team
Database
Report
Screen
User Story
User Story
User Story
User Story
User Story
User Story
User Story
Lack ofClarity
Lack ofAccountability
Lack ofMeasureable
Progress
Team
Database
Report
Screen
User Story
User Story
User Story
User Story
User Story
User Story
User Story
Lack ofClarity
Lack ofAccountability
Lack ofMeasureable
ProgressOften caused by
too many external dependencies
WHY AGILE FAILS AT SCALE
Team
Database
Report
Screen
User Story
User Story
User Story
User Story
User Story
User Story
User Story
Lack ofClarity
Lack ofAccountability
Lack ofMeasureable
Progress
Team
Database
Report
Screen
User Story
User Story
User Story
User Story
User Story
User Story
User Story
Lack ofGovernance
Lack ofMeasureable
Progress
Lack ofAccountability
Team
Database
Report
Screen
User Story
User Story
User Story
User Story
User Story
User Story
User Story
Lack ofStructure
Lack ofMeasureable
Progress
Lack ofGovernance
Team
Database
Report
Screen
User Story
User Story
User Story
User Story
User Story
User Story
User Story
Lack ofMetrics &
Tools
Lack ofGovernance
Lack ofStructure
Team
Database
Report
Screen
User Story
User Story
User Story
User Story
User Story
User Story
User Story
Lack ofMetrics &
Tools
Lack ofGovernance
Lack ofStructure
Too much coordination
between teams
ORGANIZATIONAL BARRIERS TO AGILE
Team
Matrixed Organizations
Team
Matrixed Organizations
Limited Access to Subject Matter
Expertise
Non-instantly Available
Resources
Team
Matrixed Organizations
Limited Access to Subject Matter
Expertise
Non-instantly Available
Resources
Shared Requirements
Between Teams
Team
Matrixed Organizations
Limited Access to Subject Matter
Expertise
Non-instantly Available
Resources
Too Much Work In Process
Shared Requirements
Between Teams
Team
Matrixed Organizations
Limited Access to Subject Matter
Expertise
Non-instantly Available
Resources
Unbalanced Capacity and
Demand
Shared Requirements
Between Teams
Team
Matrixed Organizations
Limited Access to Subject Matter
Expertise
Non-instantly Available
Resources
Unbalanced Capacity and
Demand
Shared Requirements
Between Teams
Large Products with Diverse Technology
Team
Matrixed Organizations
Limited Access to Subject Matter
Expertise
Non-instantly Available
Resources
Unbalanced Capacity and
Demand
Shared Requirements
Between Teams
Technical Debt & Defects
Large Products with Diverse Technology
Team
Matrixed Organizations
Limited Access to Subject Matter
Expertise
Non-instantly Available
Resources
Unbalanced Capacity and
Demand
Low Cohesion & Tight Coupling
Shared Requirements
Between Teams
Technical Debt & Defects
Large Products with Diverse Technology
Team
Corollary One:
Solving for the issues that get in the way of
effectively practicing agile is what should guide your
agile transformation initiative
MAPPING YOUR AGILE TRANSFORMATION
Pre
dic
tab
ility
Ad
ap
tability
What does your company value when planning?
Emergence
Convergence
What do your customers value from a planning perspective?
Pre
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tab
ility
Ad
ap
tability
Emergence
Convergence
Pre
dic
tab
ility
Ad
ap
tability
Emergence
Convergence
AE
PC
Pre
dic
tab
ility
Ad
ap
tability
Emergence
Convergence
AEPE
PC AC
Pre
dic
tab
ility
Ad
ap
tability
Emergence
Convergence
AEPE
PC AC
Ad-Hoc
Pre
dic
tab
ility
Ad
ap
tability
Emergence
Convergence
AEPE
PC AC
Ad-Hoc
Traditional
Pre
dic
tab
ility
Ad
ap
tability
Emergence
Convergence
AEPE
PC AC
Ad-Hoc
Traditional Agile
Pre
dic
tab
ility
Ad
ap
tability
Emergence
Convergence
AEPE
PC AC
Ad-Hoc
Traditional Agile
Lean Startup
Pre
dic
tab
ility
Ad
ap
tability
Emergence
Convergence
AEPE
PC AC
Ad-Hoc
Traditional Agile
Lean Startup
Project
Pre
dic
tab
ility
Ad
ap
tability
Emergence
Convergence
AEPE
PC AC
Ad-Hoc
Traditional Agile
Lean Startup
Project Pilot
Pre
dic
tab
ility
Ad
ap
tability
Emergence
Convergence
AEPE
PC AC
Ad-Hoc
Traditional Agile
Lean Startup
Project Pilot
Pre
dic
tab
ility
Ad
ap
tability
Emergence
Convergence
AEPE
PC AC
Ad-Hoc
Traditional Agile
Lean Startup
Adopt Pilot
Pre
dic
tab
ility
Ad
ap
tability
Emergence
Convergence
AEPE
PC AC
Ad-Hoc
Traditional Agile
Lean Startup
LOB
Pre
dic
tab
ility
Ad
ap
tability
Emergence
Convergence
AEPE
PC AC
Ad-Hoc
Traditional Agile
Lean Startup
LOB
Low Trust
Pre
dic
tab
ility
Ad
ap
tability
Emergence
Convergence
AEPE
PC AC
Ad-Hoc
Traditional Agile
Lean Startup
LOB
Low Trust
LOB
Become Predictable
Pre
dic
tab
ility
Ad
ap
tability
Emergence
Convergence
AEPE
PC AC
Ad-Hoc
Traditional Agile
Lean Startup
LOB
Low Trust
LOB
Become Predictable
Pre
dic
tab
ility
Ad
ap
tability
Emergence
Convergence
AEPE
PC AC
Ad-Hoc
Lean/Agile Agile
Lean Startup
LOB
Low Trust
LOB
Become Predictable
Pre
dic
tab
ility
Ad
ap
tability
Emergence
Convergence
AEPE
PC AC
Ad-Hoc
Lean/Agile Agile
Lean Startup
LOB
Low Trust
LOB
Become Predictable
LOB
Reduce Batch Size
Pre
dic
tab
ility
Ad
ap
tability
Emergence
Convergence
AEPE
PC AC
Ad-Hoc
Lean/Agile Agile
Lean Startup
LOB
LOB
LOB
LOB
Low Trust
Become Predictable Reduce Batch Size
Fully Decouple
Corollary Two:
Agile can mean different things to different
companies and not all agile approaches will work well for every organization
INCREMENTAL AND ITERATIVE IMPROVEMENT
Pre
dic
tab
ility
Ad
ap
tability
Emergence
Convergence
AEPE
PC AC
Ad-Hoc
Lean/Agile Agile
Lean Startup
OrgSlice
Low Trust
Become Predictable Reduce Batch Size
Fully Decouple
Pre
dic
tab
ility
Ad
ap
tability
Emergence
Convergence
AEPE
PC AC
Ad-Hoc
Lean/Agile Agile
Lean Startup
OrgSlice
Low Trust
Become Predictable Reduce Batch Size
Fully Decouple
Phase One
Pre
dic
tab
ility
Ad
ap
tability
Emergence
Convergence
AEPE
PC AC
Ad-Hoc
Lean/Agile Agile
Lean Startup
OrgSlice
Low Trust
Become Predictable Reduce Batch Size
Fully Decouple
Phase One
Phase Two
Pre
dic
tab
ility
Ad
ap
tability
Emergence
Convergence
AEPE
PC AC
Ad-Hoc
Lean/Agile Agile
Lean Startup
OrgSlice
Low Trust
Become Predictable Reduce Batch Size
Fully Decouple
Phase One
Phase Three
Phase Two
Pre
dic
tab
ility
Ad
ap
tability
Emergence
Convergence
AEPE
PC AC
Ad-Hoc
Lean/Agile Agile
Lean Startup
OrgSlice
Low Trust
Become Predictable Reduce Batch Size
Fully Decouple
Phase One
Phase Three
Phase Four
Phase Two
Pre
dic
tab
ility
Ad
ap
tability
Emergence
Convergence
AEPE
PC AC
Ad-Hoc
Lean/Agile Agile
Lean Startup
OrgSlice
Low Trust
Become Predictable Reduce Batch Size
Fully Decouple
Phase One
Phase Three
Phase Four
Phase Two
Phase Five
Corollary Three:
Organizational change can be mapped out in such a way that outcomes are
measureable and predictable and
economically justified
DEVELOPING YOUR ROADMAP
Team
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Governance Structure Metrics & Tools
Team
Database
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User Story
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User Story
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User Story
User Story
Governance Structure Metrics & Tools
Team
Database
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User Story
User Story
User Story
User Story
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Structure Metrics & Tools
Governance
Team
Database
Report
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User Story
User Story
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User Story
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Structure Metrics & Tools
Governance
STRUCTURE
Services Teams – These teams support common services across product lines. These teams support the needs of the product teams.
Team
Product Teams – These teams integrate services and write customer facing features. This is the proto-typical Scrum team.
Services Teams – These teams support common services across product lines. These teams support the needs of the product teams.
Team
Team
Programs Teams – These teams define requirements, set technical direction, and provide context and coordination.
Product Teams – These teams integrate services and write customer facing features. This is the proto-typical Scrum team.
Services Teams – These teams support common services across product lines. These teams support the needs of the product teams.
Team
Team
Team
Portfolio Teams – These teams govern the portfolio and make sure that work is moving through the system.
Programs Teams – These teams define requirements, set technical direction, and provide context and coordination.
Product Teams – These teams integrate services and write customer facing features. This is the proto-typical Scrum team.
Services Teams – These teams support common services across product lines. These teams support the needs of the product teams.
Team
Team
Team
Team
Team Team Team Team
TeamTeamTeam
Product & ServicesTeams
Team Team Team
Team Team Team Team
TeamTeamTeam
Product & ServicesTeams
ProgramTeams
Team
Team Team Team
Team Team Team Team
TeamTeamTeam
Product & ServicesTeams
ProgramTeams
PortfolioTeams
GOVERNANCE
Team
Team Team Team
Team Team Team Team
TeamTeamTeam
Product & ServicesTeams
ProgramTeams
PortfolioTeams
Product & ServicesTeams
Scrum
Team
Team Team Team
Team Team Team Team
TeamTeamTeam
ProgramTeams
PortfolioTeams
Product & ServicesTeams
ProgramTeams
PortfolioTeams
Scrum
Kanban
Team
Team Team Team
Team Team Team Team
TeamTeamTeam
Product & ServicesTeams
ProgramTeams
PortfolioTeams
Scrum
Kanban
KanbanTeam
Team Team Team
Team Team Team Team
TeamTeamTeam
METRICS
Product & ServicesTeams
ProgramTeams
PortfolioTeams
Scrum
Kanban
KanbanTeam
Team Team Team
Team Team Team Team
TeamTeamTeam
Product & ServicesTeams
ProgramTeams
PortfolioTeams
Scrum
Kanban
KanbanTeam
Team Team Team
• Backlog Size• Velocity• Burndown• Escaped Defects• Commit % Ratio• Acceptance % Ratio• Scope Change
Product & ServicesTeams
ProgramTeams
PortfolioTeams
Scrum
Kanban
KanbanTeam
• Cycle Time• Features Blocked• Rework/Defects
• Backlog Size• Velocity• Burndown• Escaped Defects• Commit % Rate• Acceptance % Ratio• Scope Change
Product & ServicesTeams
ProgramTeams
PortfolioTeams
Scrum
Kanban
Kanban
• Backlog Size• Velocity• Burndown• Escaped Defects• Commit % Ratio• Acceptance % Ratio• Scope Change
• Cycle Time• Features Blocked• Rework/Defects
• Takt Time/Cycle Time• Time/Cost/Scope/Value• RIO/Capitalization
Corollary Four:
Organizational constructs, governance models,
metrics and controls can be established without
violating the principles of agile
INCREMENTALTRANSFORMATION
Product & ServicesTeams
ProgramTeams
PortfolioTeams
Scrum
Kanban
KanbanTeam
Team Team Team
Team Team Team Team
TeamTeamTeam
Agile Pilot
Increment One
Product & ServicesTeams
ProgramTeams
PortfolioTeams
Scrum
Kanban
KanbanTeam
Team Team Team
Team Team Team Team
TeamTeamTeam
Agile Pilot
Increment One
Agile Rollout
Increment Two
Product & ServicesTeams
ProgramTeams
PortfolioTeams
Scrum
Kanban
KanbanTeam
Team Team Team
Team Team Team Team
TeamTeamTeam
Agile Pilot
Increment One
Agile Rollout
Three - N
ITERATIVETRANSFORMATION
Product & ServicesTeams
ProgramTeams
PortfolioTeams
Scrum
Kanban
KanbanTeam
Team Team Team
Team Team Team Team
TeamTeamTeam
Agile Pilot
Iteration One
Product & ServicesTeams
ProgramTeams
PortfolioTeams
Scrum
Kanban
KanbanTeam
Team Team Team
Team Team Team Team
TeamTeamTeam
Agile Pilot
Iteration Two
Product & ServicesTeams
ProgramTeams
PortfolioTeams
Scrum
Kanban
KanbanTeam
Team Team Team
Team Team Team Team
TeamTeamTeam
Agile Pilot
Iteration Three
Product & ServicesTeams
ProgramTeams
PortfolioTeams
Scrum
Kanban
Kanban
Agile Pilot
Iteration Four
Team
Team Team Team
Team Team Team Team
TeamTeamTeam
Product & ServicesTeams
ProgramTeams
PortfolioTeams
Scrum
Kanban
Kanban
Agile Pilot
Iteration Five
Team Team
Team Team Team
TeamTeamTeam
Team
Team
Team
ITERATIVE & INCREMETNAL CHANGE
Product & ServicesTeams
ProgramTeams
PortfolioTeams
Scrum
Kanban
Kanban
Agile Pilot
Iteration One
Team Team
Team Team Team
TeamTeamTeam
Team
Team
Team
Product & ServicesTeams
ProgramTeams
PortfolioTeams
Scrum
Kanban
Kanban
Agile Pilot
Team Team
Team Team Team
TeamTeamTeam
Team
Team
Team
Product & ServicesTeams
ProgramTeams
PortfolioTeams
Scrum
Kanban
Kanban
Agile Pilot
Iteration Three
Agile Rollout
Iteration One
Team Team
Team Team Team
TeamTeamTeam
Team
Team
Team
Product & ServicesTeams
ProgramTeams
PortfolioTeams
Scrum
Kanban
Kanban
Agile Pilot
Iteration Four
Agile Rollout
Iteration Two
Team Team
Team Team Team
TeamTeamTeam
Team
Team
Team
Product & ServicesTeams
ProgramTeams
PortfolioTeams
Scrum
Kanban
Kanban
Agile Pilot
Iteration Five
Agile Rollout
Iteration Three
Team Team
Team Team Team
TeamTeamTeam
Team
Team
Team
Corollary Five:
Organizations can adopt agile safely and pragmatically by iteratively and
incrementally introducing structure, governance,
and metrics and maturing practices and culture over
time
SUMMARY
Theory of Transformation
Agile transformation begins by defining a
rational system of delivery for the enterprise
Theory of Transformation
True agility comes by breaking dependencies
between teams across the organization
Theory of Transformation
Healthy culture and solid practices emerge within a
rational delivery framework
Corollary One:
Solving for the issues that get in the way of
effectively practicing agile is what should guide your
agile transformation initiative
Corollary Two:
Agile can mean different things to different
companies and not all agile approaches will work well for every organization
Corollary Three:
Organizational change can be mapped out in such a way that outcomes are
measureable and predictable and
economically justified
Corollary Four:
Organizational constructs, governance models,
metrics and controls can be established without
violating the principles of agile
Corollary Five:
Organizations can adopt agile safely and pragmatically by iteratively and
incrementally introducing structure, governance,
and metrics and maturing practices and culture over
time
Summary
By focusing on the fundamentals of agile
delivery, while systematically and
methodically breaking dependencies, we can achieve true enterprise
agility
WHY AGILE IS FAILINGIN LARGE ENTERPRISES
…and what you can do about it