agile transformation explanined

A G I L E T R A N S F O R M A T I O N

mike@leadingagile.com

404-312-1471

www.leadingagile.com

twitter.com/mcottmeyer

facebook.com/leadingagile

linkedin.com/in/cottmeyer

MIKE COTTMEYER

T H E O R Y O F T R A N S F O R M A T I O N – P A R T O N E / /

Agile transformation is about

fundamentally creating the

conditions in your company

where teams can effectively

respond to new information

It’s less about transforming the

people and the process… and

more about transforming the

ecosystem in which they operate

The question is…

How are you going to go about it?

• Deciding the Scope of the Transformation

• Deciding Your Transformation Approach

• Managing Change and Measuring Progress

BRIEF AGENDA

• Managing Change and Measuring Progress (MAYBE)

BRIEF AGENDA

DECIDING THE SCOPE OF THE TRANSFORMATION

W H Y A R E W E T R A N S F O R M I N G ?

GOALS OF GOING AGILE

PREDICTABILITY

Agile tends to focus on adaptability but

predictability is most often cited as the reason

for agile transformation

EARLY ROI

Many organizations struggle with 18 month

delivery cycles. Agile helps your team

accelerate time to market value

INNOVATION

As companies grow sometimes they slow down

and loose th ability to innovate. Agile can help

you get back your competitive edge.

QUALITY

As organizations scale, product quality often

suffers. Agile focuses on quality from

requirements through implementation.

LOWER COSTS

Cost savings are tough to promise, but agile can

help make sure you are only spending money

on the features most likely to generate revenue

PRODUCT FIT

Delivering on time is only important if you are

delivering the right product. Agile can help you

get the feedback you need.

W H A T A R E W ET R A N S F O R M I N G ?

CULTURE FOCUSED

Focused on changing hearts and minds

Focused on being agile rather than doing agile

Focused on values and principles

CULTURE FOCUSED

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

PRACTICES FOCUSED

Focused on the things that you do

Focused on roles, ceremonies, and artifacts

Can be management driven or technically driven

PRACTICES FOCUSED

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

SYSTEMS FOCUSED

Focused on forming teams and governing the flow of value

Focused on aligning the organization first

SYSTEMS FOCUSED

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

... all three are essential, but where you start is also essential…

W H A T D O W E N E E D T O O V E R C O M E ?

HOW BIG IS THE ORGANIZATION?

Single Team

Multiple Teams

DO TEAMS HAVE DEPENDENCIES?

Non-instantly Available Resources

Too Much Work in Process

Large Products with Diverse Technology

Low Cohesion & Tight Coupling

Technical Debt & Defects

Shared Requirements Between Teams

Limited Access to Subject Matter

Expertise

Matrixed Organizations

HOW MUCH RESISTANCE?

DEFINING A TRANSFORMATION APPROACH

T H E N O N -N E G O T I A B L E C O R E

THE 3 THINGS

BACKLOGS

THE 3 THINGS

BACKLOGS TEAMS

THE 3 THINGS

BACKLOGS TEAMS WORKING TESTED SOFTWARE

THE 3 THINGS

WHAT DO I MEAN?

• INVEST• CCC• Small enough for the

team to develop in a day or so

• Everything and everyone necessary to deliver

• Meets acceptance criteria

• No known defects• No technical debt

WHAT DO I MEAN?

WHY ARE THEY IMPORTANT?

• People have clarity around what to build

• People understand how it maps to the big picture

CLARITY ACCOUNTABILITY MEASURABLE PROGRESS

• Teams can be held accountable for delivery

• No indeterminate work piling up at the end of the project

• 90% done, 90% left to do

• Understanding the backlog gives meaning to work

PURPOSE AUTONOMY MASTERY

• Local decision making gives people a sense of power and control over their work

• People can demonstrate that they are good at what they do

W H E R E A R E W E ?

BILITYPR

EMERGENCE

CONVERGENCE

BILITYPR

EMERGENCE

CONVERGENCE

BILITYPR

EMERGENCE

CONVERGENCE

BILITYPR

EMERGENCE

CONVERGENCE

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AD-HOC LEANSTARTUP

AGILETRADITIONAL

Q U A D R A N T 1

EMERGENCE

CONVERGENCE

BILITYPR

AD-HOC LEANSTARTUP

AGILETRADITIONAL

Q U A D R A N T 2

EMERGENCE

CONVERGENCE

BILITYPR

AD-HOC LEANSTARTUP

AGILETRADITIONAL

Q U A D R A N T 3

EMERGENCE

CONVERGENCE

BILITYPR

AD-HOC LEANSTARTUP

AGILETRADITIONAL

Q U A D R A N T 4

A T H E O R Y O F T R A N S F O R M A T I O N

T H E O R Y O F T R A N S F O R M A T I O N – P A R T T W O / /

Adopting agile is about forming

teams, building backlogs, and

regularly producing increments

of working tested software

T H E O R Y O F T R A N S F O R M A T I O N – P A R T 2 / /

Adopting agile at scale is about

defining structure, establishing

governance, and creating a

metrics and tooling strategy

that supports agility

T H E O R Y O F T R A N S F O R M A T I O N – P A R T 2 / /

Anything that gets in the way

of forming teams, building

backlogs, and producing

working tested software is an

impediment to transformation

T R A N S F O R M A T I O NI S A J O U R N E Y

EMERGENCE

CONVERGENCE

BILITYPR

AD-HOC LEANSTARTUP

AGILETRADITIONAL

EMERGENCE

CONVERGENCE

BILITYPR

AD-HOC LEANSTARTUP

AGILETRADITIONAL

LOW TRUST

EMERGENCE

CONVERGENCE

BILITYPR

AD-HOC LEANSTARTUP

AGILETRADITIONAL

LOW TRUST

BECOME PREDICTABLE

EMERGENCE

CONVERGENCE

BILITYPR

AD-HOC LEANSTARTUP

AGILETRADITIONAL

LOW TRUST

BECOME PREDICTABLE

EMERGENCE

CONVERGENCE

BILITYPR

AD-HOC LEANSTARTUP

AGILELEAN/AGILE

LOW TRUST

BECOME PREDICTABLE

EMERGENCE

CONVERGENCE

BILITYPR

AD-HOC LEANSTARTUP

AGILELEAN/AGILE

LOW TRUST

REDUCE BATCH SIZEBECOME PREDICTABLE

EMERGENCE

CONVERGENCE

BILITYPR

AD-HOC LEANSTARTUP

AGILELEAN/AGILE

LOW TRUSTFULLY DECOUPLE

EMERGENCE

CONVERGENCE

BILITYPR

AD-HOC LEANSTARTUP

AGILELEAN/AGILE

T E A M S

EMERGENCE

CONVERGENCE

BILITYPR

P H A S E 1AD-HOC LEAN

STARTUP

AGILELEAN/AGILE

T E A M S

EMERGENCE

CONVERGENCE

BILITYPR

STARTUP

AGILELEAN/AGILE

T E A M S

EMERGENCE

CONVERGENCE

BILITYPR

STARTUP

AGILELEAN/AGILE

T E A M S

P1 P2P3

EMERGENCE

CONVERGENCE

BILITYPR

STARTUP

AGILELEAN/AGILE

T E A M S

P1 P2P3

EMERGENCE

CONVERGENCE

BILITYPR

STARTUP

AGILELEAN/AGILE

T E A M S

P1 P2P3

W H E R E A R E W E G O I N G ?

METHODOLOGIES & FRAMEWORKS

Waterfall

Rational Unified Process (RUP)

Kanban

Crystal

Lean Startup

LEAN/AGILE

Waterfall

SAFeDSDM

ScrumXP

Crystal

LeanAE

EMERGENCE

CONVERGENCE

BILITYPR

AD-HOC LEANSTARTUP

A T A L E O F T W O T R A N S F O R M A T I O N S

TRANSFORMATIONS ARE UNIQUE

C O M P A N Y O N E

• 3 Teams

• No Dependencies

• Low Resistance

• Team Level

• Adaptive-Emergent

• Single Value-Stream

• Lean Startup

• Low Coordination

• Low Metrics and Control

C O M P A N Y T W O

• 800 Teams

• Tightly Coupled

• High Resistance

• Enterprise

• Predictive-Convergent

• Many Value-Streams

• SAFe

• High Coordination

• High Metrics and Control

PATTERNS OF SCALEDTRANSFORMATION

D E F I N I N G T H EE N D - S T A T E

Services Teams – These teams support common services across product lines. These teams support the needs of the product teams.

Product Teams – These teams integrate services and write customer facing features. This is the proto-typical Scrum team.

Programs Teams – These teams define requirements, set technical direction, and provide context and coordination.

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.

H O W D O W E G E T T H E R E ?

DELIVERY TEAMS

PROGRAM TEAMS

DELIVERY TEAMS

PROGRAM TEAMS

PORTFOLIO TEAMS

DELIVERY TEAMS

PROGRAM TEAMS

PORTFOLIO TEAMS

DELIVERY TEAMS

Kanb an

PROGRAM TEAMS

PORTFOLIO TEAMS

DELIVERY TEAMS

Kanb an

PROGRAM TEAMS

PORTFOLIO TEAMS

DELIVERY TEAMS

Sc r um

Kanb an

I N C R E M E N T A LT R A N S F O R M A T I O N

( E X P E D I T I O N S )

PROGRAM TEAMS

PORTFOLIO TEAMS

DELIVERY TEAMS

Sc r um

Kanb an

AGILE PILOT

Increment One

PROGRAM TEAMS

PORTFOLIO TEAMS

DELIVERY TEAMS

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Kanb an

AGILE PILOT

Increment One

AGILE ROLLOUT

Increment Two

PROGRAM TEAMS

PORTFOLIO TEAMS

DELIVERY TEAMS

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Kanb an

AGILE PILOT

Increment One

AGILE ROLLOUT

Three - N

I T E R A T I V ET R A N S F O R M A T I O N

( B A S E C A M P S )

PROGRAM TEAMS

PORTFOLIO TEAMS

DELIVERY TEAMS

Sc r um

Kanb an

AGILE PILOT

Iteration One

PROGRAM TEAMS

PORTFOLIO TEAMS

DELIVERY TEAMS

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AGILE PILOT

Iteration Two

PROGRAM TEAMS

PORTFOLIO TEAMS

DELIVERY TEAMS

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AGILE PILOT

Iteration Three

PROGRAM TEAMS

PORTFOLIO TEAMS

DELIVERY TEAMS

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AGILE PILOT

Iteration Four

PROGRAM TEAMS

PORTFOLIO TEAMS

DELIVERY TEAMS

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AGILE PILOT

Iteration Five

E X P E D I T I O N S &B A S E C A M P S

100100

PROGRAM TEAMS

PORTFOLIO TEAMS

DELIVERY TEAMS

Sc r um

Kanb an

AGILE PILOT

Iteration One

101101

PROGRAM TEAMS

PORTFOLIO TEAMS

DELIVERY TEAMS

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AGILE PILOT

Iteration Two

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PROGRAM TEAMS

PORTFOLIO TEAMS

DELIVERY TEAMS

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AGILE PILOT

Iteration Three

AGILE ROLLOUT

Iteration One

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PROGRAM TEAMS

PORTFOLIO TEAMS

DELIVERY TEAMS

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AGILE PILOT

Iteration Four

AGILE ROLLOUT

Iteration Two

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PROGRAM TEAMS

PORTFOLIO TEAMS

DELIVERY TEAMS

Sc r um

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AGILE PILOT

Iteration Five

AGILE ROLLOUT

Iteration Three

MANAGING CHANGE AND MEASURING PROGRESS

P L A N N I N G A N D E X E C U T I O N

STEP ONE

W H Y H O W W H A T

Agile transformation isn’t something that can

be done to an organization.

They have to be full participants

Executive Steering Committee

Transformation Leadership Team

Holding the organization accountable

Remove Impediments

Plan the work

Review Progress

Inspect and Adapt

STEP TWO

W H Y H O W W H A T

We have to have some idea of where we are going before we start

We will accept the plan will change

Create a working hypothesis for

structure, governance, and metrics

Plan to progressively elaborate

Transformation Workshop

Broad Organization Rollout

Create Feedback Loops

STEP THREE

W H Y H O W W H A T

We have to be able to give the organization some idea of what we are doing, when, and

how long

Expeditions

Basecamps

Sequenced in Time

What teams are going to be formed?

What training do they need?

What coaching do they need?

When will this all happen?

STEP FOUR

W H Y H O W W H A T

Very similar to an agile release plan, we want a

rolling 90-day, fairly specific view of what is

going to take place

Transformation leadership team meets

periodically to plan forward, assess

progress, and adjust as necessary

Week by week training and coaching plans

Detailed resource planning

Expected activities and outcomes.

STEP FIVE

W H Y H O W W H A T

Very similar to a sprint cycle in Scrum

We want to periodically assess

progress, retrospect, and adjust

ELT reviews progress against strategy and

outcomes

TLT focuses on how well the plan is moving

Scheduled recurring meetings

Review planning artifacts

Review metrics

Improvement plans

STEP SIX

W H Y H O W W H A T

The whole reason we are doing this is to get

better business outcomes

This is where we begin justifying the

investment

Create hypotheses

Conduct experiments

Demonstrate outcomes

Pivot based on what we learn

Assessments

Status Reports

Coaching Plans

STEP SEVEN

W H Y H O W W H A T

We want to be able to trace improvements in the system to tangible

business benefits

Business metric baselines

Regularly show progress

Update coaching plans as necessary

Assessment Outcomes

Transformation Metrics

Business Metrics

STEP EIGHT

W H Y H O W W H A T

Our understanding will evolve throughout the

transformation

Re-assess the End-State Vision based on the

evolving understanding

Refine the End-State Vision and the

Roadmap

STEP NINE

W H Y H O W W H A T

Letting everyone know what is going on and

the success of the program will create

excitement and energy

Regular communication from

leadership

Be transparent about progress and impediments

Town Halls

Executive Roundtables

Signage

Information Radiators

Cadence of Accountability

STEP TEN

W H Y H O W W H A T

Understand what’s in it for everyone involved

and help them see where they fit in the

new organization

Clarity

Accountability

Measureable progress

Team assignments

Staffing plans

Job descriptions

Job aids

Communities of Practice

M E A S U R I N G P R O G R E S S

118118

PERFORMANCE METRICS

119119

DELIVERY TEAMS

Sc r um

Backlog Size

Velocity

Burndown

Escaped Defects

Commit %

Acceptance % Ratio

Scope Change

PERFORMANCE METRICS

120120

PROGRAM TEAMS

DELIVERY TEAMS

Sc r um

Kanb an

Backlog Size

Velocity

Burndown

Escaped Defects

Commit %

Acceptance % Ratio

Scope Change

Cycle Time

Features Blocked

Rework/Defects

PERFORMANCE METRICS

121121

PROGRAM TEAMS

PORTFOLIO TEAMS

DELIVERY TEAMS

Sc r um

Kanb an

Backlog Size

Velocity

Burndown

Escaped Defects

Commit %

Acceptance % Ratio

Scope Change

Cycle Time

Features Blocked

Rework/Defects

Takt Time/ Cycle Time

Time/Cost/Scope/Value

ROI/Capitalization

PERFORMANCE METRICS

122122

TRANSFORMATION METRICSCapabilities Performance

123123

MetricsPerformance

124124

MetricsPerformance

OperationsPerformance

Agile transformation is about

fundamentally creating the

conditions in your company

where teams can effectively

respond to new information

126126

mike@leadingagile.com

404-312-1471

www.leadingagile.com

twitter.com/mcottmeyer

facebook.com/leadingagile

linkedin.com/in/cottmeyer

MIKE COTTMEYER

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