business driven software development - net objectives portal · minimum business increments is...

copyright (c) Net Objectives, Inc. All Rights Reserved.16 November 2017

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Achieving Faster Realization of Business Value

Business Driven Software Development

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

STAKEHOLDER

STAKEHOLDER

PRODUCT MANAGER

Defining our work

STAKEHOLDER

Implementation

PRODUCT OWNER

Business Backlog

Program Backlog

Team Backlogs

Integration Ops


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Al [email protected]

@AlShalloway

CEO, Founder

Co-founder of Lean-Systems SocietyCo-founder Lean-Kanban University Contributor to SAFe


Lean-Agile Enterprise

Business

Manage mentTeam

Lean ManagementProject Management

technicaltechnical

Lean for ExecutivesProduct Portfolio Management

Business Product OwnerProduct Owner

Onsite SPC Leading SAFe®Agile ArchitectureProduct Manager/PO

Leanban / Kanban / Scrum ATDD / TDD / Design Patterns

ASSESSMENTSCONSULTING

TRAININGCOACHING

[email protected]


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What is Agile?What is Business Agility?

ScrumDisciplined Agile

Delivery


Agilea set of values and principles

building value for the businessthat focuses on development teams iteratively


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Business Agilityfocuses on value realized by having the

business identify, prioritize and sequencethe work to be done and allocate it

appropriately to the development teams


DEFINITIONThe realization of the highest business value in a shorter amount of time, predictably, sustainably, and with high quality.

By working in small delivery increments we continuously adjust to what is needed – enabling change to direction at low cost.

Goal and Benefit of Business Agility


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VALUE must be defined by the business stakeholders and is unique to the business.This definition is the basis for business initiatives.


Delivering incrementally is not a reason to deliver less. It is a reason to deliver sooner.


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TABLE WORKWhat Are The Value Curves for:

1 team of 9 people, 3 Projects each about 1 month long.Exercise 1: do projects in sequenceExercise 2: split projects up amongst team members having 3 people work on each projectExercise 3: have entire team work on all three projects at onceCreate a value by time graph for each case


time

valu

e

Serial

time

valu

e

A

B

C

Parallel 1 Team

DEBRIEF

A

B

C

time

valu

e

Parallel 3 Teams

A

B

C


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Business Evolution vs. System Evolution


Evolving the System

Valu

e de

liver

ed

Time

Requirements completed

Data layer completed

Business layer completed

UIcompleted

Integration completed

%Design completed

`


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Evolving the SystemVa

lue

deliv

ered

Time




UI completed

Design completed



Evolving the System

Valu

e de

liver

ed

Time




UI completed

Design completed



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Value If We’ve Built The Wrong ThingVa

lue

deliv

ered

Time




UI completed

Design completed



Evolving the Businessvalue

Valu

e de

liver

ed

Time

Value delivered

Value delivered

Value delivered

Value delivered


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Evolving the Businessvalue

risk

Valu

e de

liver

ed

Time

Value delivered

Value delivered

Value delivered

Value delivered


Value If We’ve Built the Wrong Thing

Valu

e de

liver

ed

Time

Value delivered

Value delivered

Value delivered

Value delivered


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incrementally realizing Business Value evolving the system

risk

value

valuerisk

Time Time

What risks do these approaches lower?


incrementally realizing Business Value evolving the system

risk

value

valuerisk

Time Time

What risks do these approaches lower?


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Often reducing batch size is all it takes to bring a system back into control

Eli Goldratt

smaller vs bigger chunks


Enterprise Agility

Enterprise Agility

BusinessBusiness

Management

ManagementTeamTeam

technicaltechnical


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BUSINESS AGILITYBUSINESS INCREMENTSPRIORITY AND SEQUENCERELEASE PLANNING

BUSINESS AGILITYBUSINESS INCREMENTSPRIORITY AND SEQUENCERELEASE PLANNING

Business


theBUSINESS

SCOPE,owns

VALUE,and

and only the Business can start and stop work!

TIMELINE


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27© Copyright Net Objectives, Inc. All Rights Reserved 27

Summary We want to achieve business agility Smaller incremental releases

• Realize value sooner• Have less risk• Enable us to learn faster

We must avoid the ‘getting while the getting is good’ phenomenon Business must lead based on values to achieve


The Minimum Viable ProductGeared towards startups.First time a product/service is released.Usually built by a small team that can pivot.What do you do when:• You are an established company?• It is an enhancement to an existing product/service?• The teams required to build it are not aligned?

Mark Denne and Jane Cleland-Huang Software by Numbers


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First Release

InvestmentPeriod

PaybackPeriod

ProfitPeriod

Breakeven

Cash

flow

Time

Mark Denne and Jane Cleland-Huang Software by Numbers

Economics of Responsiveness


First Release

Invest-ment

PeriodProfitPeriod

Pay-back

Period

Cash

flow

Time

Release 1 Net Return

Staged Releases


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ProfitPeriod

SecondRelease

Invest-ment

Period

Pay-back

Period


Cash

flow

Time


Staged Releases


ProfitPeriod

Investment

Invest-ment

Period

Pay-back

Period

BreakevenPoint

Total Return

Cash

flow

Time

Staged Releases


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Cash

flow Breakeven

SingleRelease

First Release

Time

Staged Releases

Requires a focus on sustainability of realizing value by attending to architectural roadmap of product line

Increased Profit


UX

Client

Server

DB schema

C

System Evolution vs. Business Evolution

Iterative = Start with what we know, implement some, show the customer, adjustIncremental= Feature Driven ... Value in short cycles ... Slices vs. Layers

BIG Batch

11

small Incremental

VALUE2 3

MORE BusinessVALUE ... OR DONE

C

UX

Client

Server

DB schema

4 ... 50

Iterative Business Slices


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DEFINITIONThe minimum amount of business value that can be built, deployed and consumed that makes sense from a business perspective

Minimum Business Increment (MBI)


An MBI is not a reason to deliver less. It is a reason to deliver sooner.


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If you quantify one thing, quantify cost of delay.

Don Reinertsen


The Business wants toSpecify what is most important at any given point in timeLearn from what is already implemented Learn from changing environmentUpdate and reprioritize requirements

Business Agility

Do not build what you do

not need!

The Business may know what is valuable but in the beginning they may not know or understand everything involved in achieving it


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Value CriteriaImprove Operations Increase capacity for handling

transactionsCustomer Satisfaction Shorten resolution timeReduce Cost Reduce manual processing cost

(headcount)

SynopsisCustomer transactions/requests/issues/problems are handled by process associates in the customer service area. The volume of transactions which need to be resolved on a daily basis is nearing the capacity of what can be handled within a 24 hour period; in addition, resolution time is longer due to the manual effort involved in resolving the problem.

The company is committed to investing in technology which would automate (no touch) current manual processes, handle more requests in a shorter amount of time, with a reduced number of process associates.

InvestmentBudget $20MPayback / ROI 1-3 years

Program: Straight Through Processing


Setup Plan

Ent. Data

Workflow

Auto. STP

Business Backlog for STPProgram: No touch STP

High Low

Setup Plan Ent. Data Workflow Auto. STP

Bus Inc

Bus Inc

Bus Inc

Bus Inc

Bus Inc…

9 months

80% 10% 10%

6 months!

4 months

1 month of a dev team vs.

realizing value 3 months sooner!

Business Evolution

System Evolution


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Why This WorkedAble to validate architecture soonerIf a 7 month project is increased by 50% it will take more than 50% longer to build. (100->150)Correspondingly, if a project is decreased by 33% IT will take less than 2/3 of the time (150->100)


Lean Principle

Descope as soon as possible


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The Iron Triangle

Scope(fixed)


Rethinking the Iron Triangle With Agile

Scope(fixed)

Time(fixed)


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Rethinking the Agile Iron Triangle With Lean

Time(fixed)

Time(fixed)

EpicIterations

MBIFlow/WIP

48© Copyright Net Objectives, Inc. All Rights Reserved 48

Summary MVPs are about discovering what is of value quickly Minimum Business Increments is about realizing value quickly Both are about getting value in one form or another quickly Business defines chunks of value, technology provides architecture

and time frames Use MVPs and MBIs to increase innovation and increase alignment


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Lean-Agile Enterprise

Business

Manage mentTeam

Lean ManagementProject Management

technicaltechnical

Lean for ExecutivesProduct Portfolio Management

Business Product OwnerProduct Owner

Onsite SPC Leading SAFe®Agile ArchitectureProduct Manager/PO

Leanban / Kanban / Scrum ATDD / TDD / Design Patterns

ASSESSMENTSCONSULTING

TRAININGCOACHING

[email protected]



26



Have a why descoping early is important


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There is more value created with overall alignment than with local excellence.

Don Reinertsen

Visualize the result and allow teams to form their own solutions.


Usage of Features and Functions in Typical System

Source: Standish GroupStudy of 2000 projects at 1000 companies

What should we align on?

business driven software development - net objectives portal · minimum business increments is...

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