Development Strategy for Engineering

Going Forward at Pitney Bowes

Sue McKinneyVice President, EngineeringPitney Bowes Incorporation

challenges strategic directions

summarytools

successful business?

Sustainable Competitive advantage

sustain a competitive advantage

consistently deliver

business value

business challenges

Build Trust?

deliver the right

product

in the

optimalmarket

windows

At the lowest cost

lowest cost

and …

increaseproductivity

Protect Team Boundaries

meet customer’s changing needs

develop great solutions

Leadership Influenceinnovate!

software challenges

business dynamicsinnovate to

differentiate

responsivenesstighter linkage

to customers

time to value

operational dynamicspredictability of

schedules

quality better use of

resources

improve product development cycles

Always or Often Used:

20%

Never or Rarely Used:

64%

Standish Group Study, reported by CEO Jim Johnson, XP2002

Sometimes16%

Rarely19%

Never45%

Often13%

Always7%

Project Statistics

0 10 20 30 40 50 60

Failed

Challenged

Succesful

20061996

Standish Group Study, reported by CEO Jim Johnson, CIO.com, ‘How to Spot a Failing Project’

Improvements due to better…

Tools Project Managers Adaptive Methods

Breaking projects into small chunks

Delivering pieces faster for user feedback

too much

churn

Lead changeLess wasteRespond to market changes

complexity split teams & multiple locations

multiple time zones

interdependent products

acquisitions

how ?

Trust

do more

smart stuff

…and less

stupid stuff.

processto deal with

complexity

tools coupled

with

best practices

Self-organizing, self-managing Do we need leaders? What kind of Leadership?

what about agile?

what is that?

ProvideCapacity

Gain

CreateMarket

Opportunities

ImproveCustomer

Satisfaction

Prevent /Reduce

BusinessCosts

CostAvoidanc

e(i.e. avoid

new expenses)

WasteAvoidance(i.e. eliminate

currentexpenses) Productivity

Gain(i.e. do things

faster)

3 atomicelements:

IncreaseRevenues /

Profits

Analysis through Value

Stream Mapping technique

E2 Framework elements

Pro

duct

s &

HC

/Pro

duct

improving Product deliveries

2004 2005 2006 2007 2008

Brand W Products Brand T ProductsBrand W HC/product Brand T HC/product

2003 2004 2005 2006 2007 2008

Hc

/ Pro

duct

GA

SWG Average

doing More with Less

2003 2004 2005 2006 2007 2008

improving Bottom line GrowthEffectiveness $$ per HC

SWG Average

$K /

HC

take

risks

Get more done by doing less

support

the approach

empower

educate

enable

Sustainable Competitive advantage

focus on business results

laying the Foundation for

Measurements

team ProductivityQuality

Stakeholder Satisfactioncost of Development

use Agile and…

vision and

strategy

Project Management

Focus, Communication, and Expectation Management

communication

empowerment

give

and re-enforce

ownership

teams figure out how

make better decisions

with less churn

Purpose

Considerations

Costs and Benefits

Business Value Model

it’s

a

conversation

resolve differences

group chunks high – medium - low

What are your largest value chunks?

what can you defer?

“build”

a

chunk…

at the end

of the

“chunk”

did

the

value inputs

change?

adjust BV model

run the chunk features

thru model

now you can ask…

Do we have enough business value to go to market?

Should we continue?

What goes in the next cycle or chunk?

run candidate

features thru model

re- prioritize

value Modelob

jecti

ves /

pro

ject

s / id

eas

Valu

e M

odel

prio

ritize

d ch

unks build highest

value chunks

Do we have enough value to deploy?

defe

rred

Will we ever have enough value to deploy?

STOP

Yes

No

Adjust value model if inputs have changed

discovery

Parting Thoughts ……

summary

time saved

productivity improved

risk management cannot be siloed

Thank You!

step up without stifling innovation

keep

focus

step back and

Project Management

Remove Obstacles

remove obstacles

influence not

authority

results applying collaborative leadership

leaders empoweredto change

within scope of

influence

Summary

building Trust across distributed

teams

collaborating

to set

goals

keeps focus through questions

Leadership Role

project experiences

foster innovation

collaborative leadership enables us to ……

stand back and deliver.

the answers are in your organization.

make better decisions

delivermore

value

increase productivity empowered to

solve problems

unleash talent

foster innovation

Work with corporate HR,

learning and

values team.

cultural collaboration integration

Project Methods

Waterfall: Function Definition, Design, Build, Check

FunctionsDesign

Build

Check Done New Methods:

Single Cycle Review and Adjust Spiral: Multiple Cycles of Waterfall Agile: Adapt As You Go: Short Iterations

What is Agile?

From recognition and acceptance of increasing levels of unpredictability in our turbulent economy

A chaordic perspective Collaborative values and principles Barely sufficient methodology

- Jim Highsmith

What is Agile?

A development process that conforms to the values and principles of the Agile Alliance(agilealliance.org)

Originally for software development

Agile Manifesto

While there is value in the items on the right we value the items on the left more.

Individuals and interactions over processes and tools

Working software over comprehensive documentation

Customer collaboration over contract negotiation

Responding to change over following a plan

Agile Overview

Agile: Iterative and Incremental Light-Weight Meets Changing Needs of Stakeholders Highly Collaborative: Involves Customers Minimizes Documentation Test First

Agile Principles

Light Weight

Utilize only practices that make sense for the project and environment

“Barely sufficient” artifacts, methodology, and documentation

“Appropriate” vs “Best Practices”

Practice Excellence

Requires self discipline to improved quality Relies on the team to practice technical

excellence instead of imposing discipline Adopt technical practices that support the

other practices such as: Continuous Integration Test Driven Development Refactoring

Reflect and Adapt

Learn from past to improve performance

Retrospectives after each iteration

Harness change for improved efficiency

Multi-Horizon planning allows adaptation

The Process Pendulum

Code and Fix WaterfallAgile

No Process PrescriptiveEmpirical

Empirical Frequent inspection Collaboration Adaptive responses

Prescriptive Defined set of steps to follow Plan the work, work the plan Plan is assumed to be correct

How Does Agile Work?

“Requirements” called features, defined using user stories:As a _____ I want to_______

Pick a project. Define the major features in terms of user stories.

Agile ‘Process’

Features listed in a backlog Backlog prioritized based on value Highest priorities estimated and grouped

into an iteration, one-four weeks long At end of iteration, ask if enough value to go

to market? Add any new features to backlog and

reprioritize and select next iteration

Project Methods

Done?

Planning

Project Definition and Iterations

Completed Deliverables

Review and AdjustImplement

Envision Iterate:

Plan Implement Done? Adapt

CompleteYES

NO

Agile Cycles

Vision

Planning

Develop

Iteration PlanReview / Adapt

Iteration PlanningIterations Plan

High Level Planning Detailed Planning

Agile ‘Process’

Test cases are written first, before anything is developed

Go/no-go decisions reached early and often

Trustworthiness

support from senior leaders

tools

coupled with

best practices