Scaling Up. GoToWebinar Housekeeping. Why Organizational Alignment is Critical and Tips for Achieving It

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1 Scaling Up Why Organizational Alignment is Critical and Tips for Achieving It Copyright Net Objectives, Inc. All Rights Reserved 1 GoToWebinar Housekeeping We are recording this presentation Use the Grab Tab to: Hide the control panel View webinar in full screen Manage audio settings: Choose between Telephone or Mic & Speakers Use the Questions pane to ask questions Copyright Net Objectives, Inc. All Rights Reserved 2 1

2 Al Shalloway CEO and Founder, Net Co-founder of Lean-Systems Society Co-founder Lean-Kanban University Contributor to SAFe Copyright Net Objectives, Inc. All Rights Reserved 3 Drive from Business Value Improve continuously Collaborate across boundaries Guardrails Keep WIP within capacity Make all work visible Increase Predictability Copyright Net Objectives, Inc. All Rights Reserved 4 2

3 Scaling Up With Agile Product Management 1. Our Challenges 2. Portfolio Level Agreement 3. Aligning Technology 4. Managing Work in Process 5. Shifting From Projects to Products Copyright Net Objectives, Inc. All Rights Reserved 5 Agile Stagnation: What Are The Symptoms? Teams have improved, but time to market is about the same Not everything built is useful some things have to be redone Things get almost done quickly, but finishing takes time Lots of interruptions or waiting Copyright Net Objectives, Inc. All Rights Reserved 6 3

4 What Is Causing Agile Stagnation? The process? Development group? Management? People are looking for someone to blame Both in waterfall and Agile We must shift to a lean focus on the system Copyright Net Objectives, Inc. All Rights Reserved 7 Polling Question What is the biggest challenge to scaling Agile within your organization? We can t convince our teams to do Agile Teams are struggling to work together to finish things Product management is struggling when working with the teams Our business stakeholders and/or management aren t bought in Copyright Net Objectives, Inc. All Rights Reserved 8 4

5 Common Organizational Structure Marketing Product Management Development Support inspired by Dan North, BSC/ADP 2012 Copyright Net Objectives, Inc. All Rights Reserved 9 The Nature Of Our Work Marketing Product Management Development Support Copyright Net Objectives, Inc. All Rights Reserved 10 5

6 We Manage Our People This Way even though our value flows this way Copyright Net Objectives, Inc. All Rights Reserved 11 Time-to-Market Marketing Product Management Development Support Copyright Net Objectives, Inc. All Rights Reserved 12 6

7 Waiting How Often Does Work Wait? Adding Value Adding Value We are so busy watching the people we don t see the work slowing down. Must create visibility of the work being done. Waiting Adding Value Marketing Adding Value Waiting Adding Value Waiting Adding Value Product Management Adding Value Adding Value Adding Value Adding Value Development Support Copyright Net Objectives, Inc. All Rights Reserved 13 What Does All This Get Us? Usage of Features and Functions in Typical System Source: Standish Group Study of 2000 projects at 1000 companies Copyright Net Objectives, Inc. All Rights Reserved 14 7

8 Get While The Getting s Good Copyright Net Objectives, Inc. All Rights Reserved 15 Scaling Up With Agile Product Management 1. Our Challenges 2. Portfolio Level Agreement 3. Aligning Technology 4. Managing Work in Process 5. Shifting From Projects to Products Copyright Net Objectives, Inc. All Rights Reserved 16 8

9 Polling Question Where are you in your organizational Agile journey? We have not yet begun or have only pockets of Agile teams We are now considering scaling due to success of Agile teams We ve been running Agile at scale, but not very successfully We are fairly advanced in our journey Copyright Net Objectives, Inc. All Rights Reserved 17 How can we get realization of value faster without going faster? Copyright Net Objectives, Inc. All Rights Reserved 18 9

10 Cash flow Cash flow Economics of Responsiveness Investment Period Payback Period Profit Period Time First Release Breakeven Mark Denne and Jane Cleland-Huang Software by Numbers Copyright Net Objectives, Inc. All Rights Reserved 19 Staged Releases Investment Period Payback Period Profit Period Release 1 Net Return Time First Release Copyright Net Objectives, Inc. All Rights Reserved 20 10

11 Cash flow Cash flow Staged Releases Profit Period Release 1 Net Return Release 2 Net Return Time Second Release Copyright Net Objectives, Inc. All Rights Reserved 21 Staged Releases Profit Period Investment Period Payback Period Investment Period Payback Period Total Return Time Breakeven Point Investment Copyright Net Objectives, Inc. All Rights Reserved 22 11

12 Cash flow Increased Profit Staged Releases Breakeven Single Release Time First Release Requires a focus on sustainability of realizing value by attending to architectural roadmap of product line Copyright Net Objectives, Inc. All Rights Reserved 23 Minimum Business Increment () DEFINITION The minimum amount of business value that can be built, deployed and consumed that makes sense from a business perspective Copyright Net Objectives, Inc. All Rights Reserved 24 12

13 An is not a reason to deliver less. It is a reason to deliver sooner. Copyright Net Objectives, Inc. All Rights Reserved 25 MVPs Contrasted With s MVPs Intended to verify what is of value Designed for startups Mostly for startup companies Organized around product delivery s Intended to realize value to customer faster Designed for any company Useful for any maturity level Organized around value delivery Copyright Net Objectives, Inc. All Rights Reserved 26 13

14 Agility is about Business Value Increments not development cycles Pick what s valuable Align around it Deliver incrementally Copyright Net Objectives, Inc. All Rights Reserved 27 smaller vs bigger chunks Often reducing batch size is all it takes to bring a system back into control Eli Goldratt Copyright Net Objectives, Inc. All Rights Reserved 28 14

15 Alignment Requires Agreement on What to Align On Business strategies should be based on values. For example: $ retention and growth Acquisition of new clients Total operating expense per client Customer experience Governance Copyright Net Objectives, Inc. All Rights Reserved 29 Q: How does the customer fit into this approach? Copyright Net Objectives, Inc. All Rights Reserved 30 15

16 Scaling Up With Agile Product Management 1. Our Challenges 2. Portfolio Level Agreement 3. Aligning Technology 4. Managing Work in Process 5. Shifting From Projects to Products Copyright Net Objectives, Inc. All Rights Reserved 31 There is more value created with overall alignment than with local excellence. - Don Reinertsen Visualize the result, allow teams to form their own solutions. Copyright Net Objectives, Inc. All Rights Reserved 32 16

17 Alignment Directly Works on Our Challenges Challenge: Not Working Together Waiting for people Being interrupted by people Being out of synch and detecting during integration Delays in feedback Getting information Using information Solution: Being Aligned Have visibility on what s most important See work coming your way Must work together, not merely manage dependencies Align team structures Align when teams work on thing Work on smaller pieces Copyright Net Objectives, Inc. All Rights Reserved 33 Input B U S I N E S S D I S C O V E R Y B U S I N E S S D E L I V E R Y T E A M P R O G R A M P O R T F O L I O Define Business Offerings Create s Sequence s Create Features Assign to Team Backlogs V A L U E N E T W O R K O W N E R, B U S I N E S S S P O N S O R, T E C H N O L O G Y S P O N S O R, S T A K E H O L D E R S Copyright Net Objectives, Inc. All Rights Reserved 34 17

18 T E A M P R O G R A M P O R T F O L I O Business Priority B U S I N E S S D I S C O V E R Y B U S I N E S S D E L I V E R Y Define Business Offerings Create s Sequence s Create Features Assign to Team Backlogs Copyright Net Objectives, Inc. All Rights Reserved 35 T E A M P R O G R A M P O R T F O L I O Business Planning B U S I N E S S D I S C O V E R Y B U S I N E S S D E L I V E R Y Define Business Offerings Create s Sequence s Create Features Assign to Team Backlogs Copyright Net Objectives, Inc. All Rights Reserved 36 18

19 T E A M P R O G R A M P O R T F O L I O Business Staging B U S I N E S S D I S C O V E R Y B U S I N E S S D E L I V E R Y Define Business Offerings Create s Sequence s Create Features Assign to Team Backlogs Copyright Net Objectives, Inc. All Rights Reserved 37 T E A M P R O G R A M P O R T F O L I O B U S I N E S S D I S C O V E R Y Ready to Pull B U S I N E S S D E L I V E R Y Define Business Offerings Create s Sequence s Create Features Assign to Team Backlogs Copyright Net Objectives, Inc. All Rights Reserved 38 19

20 T E A M P R O G R A M P O R T F O L I O B U S I N E S S D I S C O V E R Y There is a difference between visibility and traceability Ready to Pull B U S I N E S S D E L I V E R Y Define Business Offerings Create s Sequence s Create Features Assign to Team Backlogs Copyright Net Objectives, Inc. All Rights Reserved 39 T E A M P R O G R A M P O R T F O L I O B U S I N E S S D I S C O V E R Y There is a difference between visibility and traceability Ready to Pull B U S I N E S S D E L I V E R Y Define Business Offerings Create s Sequence s Create Features Assign to Team Backlogs Copyright Net Objectives, Inc. All Rights Reserved 40 20

21 Potential Business & Systems Offerings Workflow Boards Across the Enterprise We start with a board of potential business offerings. Best to limit the number of things that can go on there so it can be considered that this is a Kanban board. Copyright Net Objectives, Inc. All Rights Reserved 41 Potential Business & Systems Capabilities Workflow Boards Across the Enterprise s Create a release plan with s Copyright Net Objectives, Inc. All Rights Reserved 42 21

22 Potential Business & Systems Capabilities Workflow Boards Across the Enterprise s Identify Dependencies / Architecture Review Break s down into components and review the architectural issues of the release Copyright Net Objectives, Inc. All Rights Reserved 43 Potential Business & Systems Capabilities Team A Workboard Workflow Boards Across the Enterprise Team B Workboard s Identify Dependencies / Architecture Review Team C Workboard Team D Workboard Put the components on the backlogs of their associated teams Copyright Net Objectives, Inc. All Rights Reserved 44 22

23 Potential Business & Systems Capabilities Team A Workboard Workflow Boards Across the Enterprise s Team B Workboard Team C Workboard System Integration & QA Identify Dependencies / Architecture Review Team D Workboard Teams provide completed, tested components to system integration test and QA Copyright Net Objectives, Inc. All Rights Reserved 45 Potential Business & Systems Capabilities Team A Workboard Workflow Boards Across the Enterprise s Team B Workboard Team C Workboard System Integration & QA Identify Dependencies / Architecture Review Team D Workboard Deployment and Ops Applications provided to deployment and operations Copyright Net Objectives, Inc. All Rights Reserved 46 23

24 Scaling Up With Agile Product Management 1. Our Challenges 2. Portfolio Level Agreement 3. Aligning Technology 4. Managing Work in Process 5. Shifting From Projects to Products Copyright Net Objectives, Inc. All Rights Reserved 47 What Does Working on Too Many Things Mean? Delaying more important work Breaking plans Injecting extra work into system Not being able to manage WIP is a symptom of not knowing what is most important Copyright Net Objectives, Inc. All Rights Reserved 48 24

25 Drive from Business Value Improve continuously Collaborate across boundaries Guardrails Keep WIP within capacity Make all work visible Increase Predictability Copyright Net Objectives, Inc. All Rights Reserved 49 Scaling Up With Agile Product Management 1. Our Challenges 2. Portfolio Level Agreement 3. Aligning Technology 4. Managing Work in Process 5. Shifting From Projects to Products Copyright Net Objectives, Inc. All Rights Reserved 50 25

26 Q: Maybe before you start, you should define what you mean by product. Copyright Net Objectives, Inc. All Rights Reserved 51 Project Management Product Management Project Management Project starts by allocating people Often lack in subject matter expertise Requires some time to learn to work together Not always full capability Fosters getting while the getting is good mentality Product Management Product starts with initial offering Have subject matter expertise Team (mostly) stays together Team (mostly) has full capability Business stakeholders understand they will get value quickly and can ask for what s next Copyright Net Objectives, Inc. All Rights Reserved 52 26

27 Whatever Approach You Take Must be holistic Must not be one-size fits all Need agreements across organization Lean for Executives Product Portfolio Management Business Product Owner Product Owner Onsite SPC Leading SAFe Agile Architecture Product Manager/PO ASSESSMENTS CONSULTING TRAINING COACHING technical Leanban / Kanban / Scrum ATDD / TDD / Design Patterns Lean Management Project Management Write me at alshall@netobjectives.com Copyright Net Objectives, Inc. All Rights Reserved 54 27

28 Where Can I Learn More? Agile Product Management Symposiums in Seattle, Milwaukee, Orange County, Blog: leankit.com/blog Free trial: info.leankit.com/get-leankit Copyright Net Objectives, Inc. All Rights Reserved 55 Questions As organizations differ in process maturity, one framework may not be one-size-fits-all. How do you modify this alignment framework to fit orgs in different stages of process maturity? In your opinion, are frameworks, such as SAFe, required to improve at scale? Do you have any other tidbits on how to make iterative improvements to your organizational structure that result in easier management? Could you please elaborate on how you used Scrum, XP, Lean, SAFe, TDD, ATDD, emergent design for iterative development? Copyright Net Objectives, Inc. All Rights Reserved 56 28

29 Copyright Net Objectives, Inc. All Rights Reserved 57 29