transforming into agile it organisation

Management of Agile / SCRUM teams Draft version

WWW.IRP-MANAGEMENT.COM page: 1 Date: 3/12/2015

Implementation of Management Control Agile / SCRUM teams

-version 0.1-

Hans Oosterling December 2014 Version 0.1 12-Mar-15


WWW.IRP-MANAGEMENT.COM page: ‹#› Date: 12-3-2015

Management Control Models

Work outcomes are well understood before execution

Given well-defined set of

inputs the same outputs are generated every time

Follow the predetermined

steps to get predefined results

Frequent inspection and adaption occurs as work proceeds

Processes are accepted as

imperfectly defined

Outputs are often unpredictable and unrepeatable

Defined Action Empirical Action

Process • Product / Services flow

through Resources

One-off (project) • Resources move to

Product / services



Landscape

Technology

Req

uire

men

ts

unknown

Very uncertain Close to certainty

Known

Simple – Rational decisions – Waterfall approach

Complicated – Complicated decisions – Transformation

Complex – Multiple stakeholders – Political decisions – Business model change – Culture change

Chaos – Too much people involved – Anarchy, no hope

(Source: Ralph Stacey)

Agile approach



Success Factors of Agile / SCRUM

Agile / SCRUM Execution teams

Planning And

Control



Management Basics for Empirical Actions -One-off Initiatives-

TIME - Inevitable time - Waiting

Deliverables / Results - Quality - Functionality - Non-functional:

- Standards - Security

Capacity - Resources - Skills - Performance

Typical Management focus of Project Manager: Timely delivery of Results



Variation and Variability or uncertainty

TIME

Deliverables / Results Capacity

Management attitude: – First reflex: more capacity – Second reflex: less results – Third reflex: later delivery or combination



Committed Project delivery

Typical Management attitude: – Bad planning experiences drives out good planning practices – Parkinson’s Law: work expands so as to fill the time available for its

completion – Variability and uncertainty buffered by Capacity (underutilization)

IT Delivery

Actual / Forecast 1

Committed time



Management Focus on Project Delivery: Operational

IT Management: – Methodology and Standards – Project Planning and Control – Exceptions / Escalations – Status and Progress Monitoring – Business Alignment – IT Resources (skills) allocations – Costs and Funding

Business Management: – Requirements Management – Business Case / Project Justification – Commissioning – Accept Deliverables / Results



Management Focus on Project Delivery: Tactical

IT Management: – IT Portfolio Management (supply) – IT Headcount – …………….

Business Management: – IT funding (annual budgets) – IT Portfolio Management (demand) – ……………...



Management Focus on Project Delivery: Strategic

IT Management: – Make or Buy – Sourcing – …………….

Business Management: – IT Roadmap – Alignment Strategic Objectives / Business Goals – Determine Business Value through IT – ……………...



History of IT Performance Improvements

Functionality

Programming Techniques

IT Project Management

Service Centers

CMMi, Lean SixSigma

Agile SCRUM

1970 1980 1990 2000 2010



1970 – 1990 Focus on Functionality Design techniques

1990 – 2000 Organisational Efficiency Cost Control

2000 – 2010 CMMi, Lean, SixSigma Cost reduction

2010 onwards

Agile, SCRUM

History of IT Performance Improvements Impact and Effectiveness

Reasonable effect

Limited effect No impact, process adjustments without changing concepts of projects is not successful Cost reduction impacts IT performance ? Work in Progress, but it’s important to abandon the concept of projects and take full process approach (E2E Business, IT development and IT operations!)



SCRUM Teams in Execution



Transformation from Project oriented to full Process view (E2E)

Installation SCRUM teams: Business Product Owner IT DevOps members IT Facilities, office, tools etc

How to facilitate, plan and control SCRUM teams at:

- Operational level - Tactical level - Strategic level



Paradigm Shift from Project to Process

Projects – Push – Milestone Control – Resources move to

Products (=project deliverables)

Analogy to Henry Ford From Building carriage together Assembly Line Factory approach

Process – Pull – Performance Control – Products flow through

Resources (SCRUM teams)



Parts and resources flow to product



Product flows through Workstations



Factory Approach

Collective ownership of the Factory is needed for success! Work Break-down complex business requirements (with business

value) into shippable / usable Products – Collaborative approach – Primacy with Business

Assembly and Release Planning – UAT – Continuity Testing (Business and Technology) – Collaborative approach – Primacy with IT

Work Break-down

and Production Planning

SCRUM

SCRUM

SCRUM

SCRUM SCRUM

SCRUM

SCRUM

SCRUM

Assembly and

Release Management



Changing IT Management Factory Approach

Operational – Methodology and standards – IT resource allocations to SCRUM teams – Cost management of SCRUM teams – Performance Management (Measure and Analysis) – Defects and Quality – Reduce uncertainty and variability – Collaborate on

Work Break-down and Production Planning Assembly and Release Planning

Tactical – Funding and Sizing SCRUM teams – Process / Performance Improvements – …………

Strategic – Make – Buy – Sourcing – ……….



Changing Business Management Factory Approach

Operational – Business Case / Justification – Allocate Product Owners – Business commitment to Product Owners – Reduce uncertainty and variability – Collaborate on

Work Break-down and Production Planning Assembly and Release Planning

Tactical – Funding IT (annual) – IT Portfolio Management – …………

Strategic – IT Roadmap – Alignment to Strategic Objectives and Business Goals – Determine Business Value through IT – ……….



Change Management Obstacles

IT Organisation – There is often a culture of fire fighting and ad hoc decisions – Every delivery is managed as unique result – IT organisation functionally divided – Many transfers of responsibilities / work (“don’t blame me” culture) – ………

Business Management: – Limited involvement into IT projects

Initiation Closure Acceptance of Results

– Changing requirements during execution – Culture of Powerplay in the business-IT relationship – ……….

As-is situation is not always clear: – Ownership of non-functional requirements – Involvement of other (functional) departments – Relationship to other developments



Common Mistakes and Failure to Implement Process Approach (O-PPOI model)

Changing Process without Redesign Product Concepts, is bound to Fail

Planning&Control

Primary Process

Objective

Product



Process Design starts with clearly defined Objective(s)

Reduce time-to-market Increase customer satisfaction Increase employee satisfaction Be transparent Reduce costs of producing Reduce Overhead costs No inventory Be flexible Less Defects Reduce maintenance costs / running costs (Cost of Ownership) ………………..



(Factory) Process Design and Description (1)

Process: Work break-down and Production Planning Function 1 Function 2 Function 3 Function 4 Function 5 Function 6

Action

Action

Action Action

Action

Action Action

Decision

Step 1

Step 2

Step 3

Step 4

Step 5



(Factory) Process Design and Description (2)

RASCI Matrix (Work break-down and Production Planning)

Function 1 Function 2 Function 3 Function 4 Function 5 Function 6

Step 1

Step 2

Step 3

Step 4

Step 5

A/R

R

A

R

A R

I R A

C

S

R: responsible A: accountable S : Supporting C: consulted I : Informed

S

Sanity Check: • Two people are

accountable for step 2? • Who is accountable for

process step 4? • Who is accountable for

process step 5?



Operational Excellence

Realise efficient and effective operational processes

Not single focus on cost reduction but also good view on

competitive product delivery

In O-PPOI model: Describe in detail the interpretation of Operational Excellence and the effects on process design in the objective definition phase

Define targets or standards for IT performance and how to cope with variability:

– Buffering with Capacity, time, inventory

………..



Change Management Designing versus Evolutionary Approach

Organisation is imperfect

Blue print concept

Top-down using abstract models

Stabile end-solution

One-off linear process

Technical-economical approach

According (agreed) timelines

Experts are in the lead

Organisation has infinite knowledge

Continuous gradual improvements

Bottom-up based on practical experiences

Improve capacity to change

Iterative process

Social-political approach

Adventure

Stakeholders are in the lead



Change Management according to Caluwé

What should be the most successful way to transform to process based organisation?

By nature IT project delivery has a strong history of blue-print thinking!