why agile is failing in large enterprises
TRANSCRIPT
WHY AGILE IS FAILINGIN LARGE ENTERPRISES
WHY AGILE IS FAILINGIN LARGE ENTERPRISES
…and what you can do about it
www.leadingagile.comtwitter.com/mcottmeyer
facebook.com/leadingagilelinkedin.com/in/cottmeyer
MIKE COTTMEYER
A BRIEF HISTORICAL PERSPECTIVE
1943
1950-1960s
1985
1990
1995
1996
1997
1998
2000
2001
USAF & NASAX-15 hypersonic jetIterative Incremental Delivery
Hirotaka Takeuchi & Ikujiro NonakaThe New New Product Development Game
1990 - Sutherland & SchwaberScrum Framework
DSDN ConsortiumDynamic SystemDevelopment Method
1996 - Beck, Cunningham, JeffriesExtreme Programming
Jeff de LucaFeature Driven Development
Alistair CockburnCrystal Methodologies
Robert CharetteLean Development
THEAGILE
MANIFESTO
Taiichi Ohno Toyota Production SystemKanban
Hardware Software
Individuals & interactions Processes & toolsover
Working software Comprehensive documentationover
Customer collaboration Contract negotiationover
Responding to change Following a planover
That is, while there is value in the items on the right, we value the items on the left
more.
We are uncovering better ways of developing software by doing it and helping others do it. Through this work we have come to value:
Source: www.agilemanifesto.org
MANIFESTO VALUES
Satisfy the Customer
Welcome Change
Deliver Frequently
Collaborate Daily
Support & Trust
Motivated Teams
Promote Face-to-Face Conversation
s
Deliver Working Software
Promote Sustainable
Pace
Promote Technical
Excellence
Maximize Through
Simplicity
Have Self-
OrganizedTeams
Reflect & Adjust
RegularlySource: www.agilemanifesto.org
MANIFESTO PRINCIPLES
BELIEFS ABOUT AGILE & TRANSFORMATION
Culture
PracticesStructure
BELIEFS…
Culture
PracticesStructure
• Focused on changing hearts and minds
• Focused on being agile rather than doing agile
• Focused on values and principles
CULTURE DRIVEN
Culture
PracticesStructure
• 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
CULTURE DRIVEN
Practices
StructureCulture
• Focused on the things that you do
• Focused on roles, ceremonies, and artifacts
• Can be management driven or technically driven
PRACTICES DRIVEN
Practices
StructureCulture
• 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
PRACTICES DRIVEN
Structure
CulturePractices
• Focused on forming teams and governing the flow of value
• Focused on aligning the organization first
STRUCTURE DRIVEN
Structure
CulturePractices
• 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
STRUCTURE DRIVEN
Culture
PracticesStructure
... all three are essential, but where you start is also essential…
WHERE TO START?
LEADINGAGILE THEORY OF TRANSFORMATION
Theory of Transformation
Agile transformation begins by defining a rational system of delivery for the enterprise
Theory of Transformation
True agility comes by breaking dependencies between teams
across the organization
Theory of Transformation
Healthy culture and solid practices emerge within a
rational delivery framework
WHY AGILE WORKS
Team
Team
User Story
User Story
User Story
User Story
User Story
User Story
User Story
Team
Database
Report
Screen
User Story
User Story
User Story
User Story
User Story
User Story
User Story
Team
Database
Report
Screen
User Story
User Story
User Story
User Story
User Story
User Story
User Story
Clarity
Team
Database
Report
Screen
User Story
User Story
User Story
User Story
User Story
User Story
User Story
Clarity Accountability
Team
Database
Report
Screen
User Story
User Story
User Story
User Story
User Story
User Story
User Story
Clarity Accountability Measureable Progress
Team
Database
Report
Screen
User Story
User Story
User Story
User Story
User Story
User Story
User Story
Clarity Accountability Measureable Progress
Few if any dependencies
WHY AGILE WORKS AT SCALE
Team
Database
Report
Screen
User Story
User Story
User Story
User Story
User Story
User Story
User Story
Clarity Accountability Measureable Progress
Team
Database
Report
Screen
User Story
User Story
User Story
User Story
User Story
User Story
User Story
Governance Accountability Measureable Progress
Team
Database
Report
Screen
User Story
User Story
User Story
User Story
User Story
User Story
User Story
Structure Measureable Progress
Governance
Team
Database
Report
Screen
User Story
User Story
User Story
User Story
User Story
User Story
User Story
Structure Metrics & Tools
Governance
Team
Database
Report
Screen
User Story
User Story
User Story
User Story
User Story
User Story
User Story
Structure Metrics & Tools
Governance
Teams have autonomy across the organization
WHY AGILE FAILS
Team
Database
Report
Screen
User Story
User Story
User Story
User Story
User Story
User Story
User Story
Team
Database
Report
Screen
User Story
User Story
User Story
User Story
User Story
User Story
User Story
Lack ofClarity
Team
Database
Report
Screen
User Story
User Story
User Story
User Story
User Story
User Story
User Story
Lack ofClarity
Lack ofAccountability
Team
Database
Report
Screen
User Story
User Story
User Story
User Story
User Story
User Story
User Story
Lack ofClarity
Lack ofAccountability
Lack ofMeasureable
Progress
Team
Database
Report
Screen
User Story
User Story
User Story
User Story
User Story
User Story
User Story
Lack ofClarity
Lack ofAccountability
Lack ofMeasureable
ProgressOften caused by too
many external dependencies
WHY AGILE FAILS AT SCALE
Team
Database
Report
Screen
User Story
User Story
User Story
User Story
User Story
User Story
User Story
Lack ofClarity
Lack ofAccountability
Lack ofMeasureable
Progress
Team
Database
Report
Screen
User Story
User Story
User Story
User Story
User Story
User Story
User Story
Lack ofGovernance
Lack ofMeasureable
Progress
Lack ofAccountability
Team
Database
Report
Screen
User Story
User Story
User Story
User Story
User Story
User Story
User Story
Lack ofStructure
Lack ofMeasureable
Progress
Lack ofGovernance
Team
Database
Report
Screen
User Story
User Story
User Story
User Story
User Story
User Story
User Story
Lack ofMetrics &
Tools
Lack ofGovernance
Lack ofStructure
Team
Database
Report
Screen
User Story
User Story
User Story
User Story
User Story
User Story
User Story
Lack ofMetrics &
Tools
Lack ofGovernance
Lack ofStructure
Too much coordination
between teams
ORGANIZATIONAL BARRIERS TO AGILE
Team
Matrixed Organizations
Team
Matrixed Organizations
Non-instantly Available Resources
Team
Matrixed Organizations
Limited Access to Subject Matter
Expertise
Non-instantly Available Resources
Team
Matrixed Organizations
Limited Access to Subject Matter
Expertise
Non-instantly Available Resources
Shared Requirements
Between Teams
Team
Matrixed Organizations
Limited Access to Subject Matter
Expertise
Non-instantly Available Resources
Too Much Work In Process
Shared Requirements
Between Teams
Team
Matrixed Organizations
Limited Access to Subject Matter
Expertise
Non-instantly Available Resources
Too Much Work In Process
Shared Requirements
Between Teams
Large Products with Diverse TechnologyTeam
Matrixed Organizations
Limited Access to Subject Matter
Expertise
Non-instantly Available Resources
Too Much Work In Process
Shared Requirements
Between Teams
Technical Debt & Defects
Large Products with Diverse TechnologyTeam
Matrixed Organizations
Limited Access to Subject Matter
Expertise
Non-instantly Available Resources
Too Much Work In Process
Low Cohesion & Tight Coupling
Shared Requirements
Between Teams
Technical Debt & Defects
Large Products with Diverse TechnologyTeam
Corollary One:
Solving for the issues that get in the way of effectively practicing agile is what should guide your agile transformation initiative
MAPPING YOUR AGILE TRANSFORMATION
Pred
icta
bilit
y Adaptability
Pred
icta
bilit
y Adaptability
Emergence
Convergence
Pred
icta
bilit
y Adaptability
Emergence
Convergence
Pred
icta
bilit
y Adaptability
Emergence
Convergence
AEPC
Pred
icta
bilit
y Adaptability
Emergence
Convergence
AEPEPC AC
Pred
icta
bilit
y Adaptability
Emergence
Convergence
AEPEPC AC
Ad-Hoc
Pred
icta
bilit
y Adaptability
Emergence
Convergence
AEPEPC AC
Ad-Hoc
Traditional
Pred
icta
bilit
y Adaptability
Emergence
Convergence
AEPEPC AC
Ad-Hoc
Traditional Agile
Pred
icta
bilit
y Adaptability
Emergence
Convergence
AEPEPC AC
Ad-Hoc
Traditional Agile
Lean Startup
Pred
icta
bilit
y Adaptability
Emergence
Convergence
AEPEPC AC
Ad-Hoc
Traditional Agile
Lean Startup
Project
Pred
icta
bilit
y Adaptability
Emergence
Convergence
AEPEPC AC
Ad-Hoc
Traditional Agile
Lean Startup
Project Pilot
Pred
icta
bilit
y Adaptability
Emergence
Convergence
AEPEPC AC
Ad-Hoc
Traditional Agile
Lean Startup
Project Pilot
Pred
icta
bilit
y Adaptability
Emergence
Convergence
AEPEPC AC
Ad-Hoc
Traditional Agile
Lean Startup
Adopt Pilot
Pred
icta
bilit
y Adaptability
Emergence
Convergence
AEPEPC AC
Ad-Hoc
Traditional Agile
Lean Startup
LOB
Pred
icta
bilit
y Adaptability
Emergence
Convergence
AEPEPC AC
Ad-Hoc
Traditional Agile
Lean Startup
LOB
Low Trust
Pred
icta
bilit
y Adaptability
Emergence
Convergence
AEPEPC AC
Ad-Hoc
Traditional Agile
Lean Startup
LOB
Low Trust
LOB
Become Predictable
Pred
icta
bilit
y Adaptability
Emergence
Convergence
AEPEPC AC
Ad-Hoc
Traditional Agile
Lean Startup
LOB
Low Trust
LOB
Become Predictable
Pred
icta
bilit
y Adaptability
Emergence
Convergence
AEPEPC AC
Ad-Hoc
Lean/Agile Agile
Lean Startup
LOB
Low Trust
LOB
Become Predictable
Pred
icta
bilit
y Adaptability
Emergence
Convergence
AEPEPC AC
Ad-Hoc
Lean/Agile Agile
Lean Startup
LOB
Low Trust
LOB
Become Predictable
LOB
Reduce Batch Size
Pred
icta
bilit
y Adaptability
Emergence
Convergence
AEPEPC AC
Ad-Hoc
Lean/Agile Agile
Lean Startup
LOB
LOB
LOB
LOB
Low Trust
Become Predictable Reduce Batch Size
Fully Decouple
Corollary Two:
Agile can mean different things to different companies and not all agile approaches will work
well for every organization
INCREMENTAL AND ITERATIVE
IMPROVEMENT
Pred
icta
bilit
y Adaptability
Emergence
Convergence
AEPEPC AC
Ad-Hoc
Lean/Agile Agile
Lean Startup
OrgSlice
Low Trust
Become Predictable Reduce Batch Size
Fully Decouple
Pred
icta
bilit
y Adaptability
Emergence
Convergence
AEPEPC AC
Ad-Hoc
Lean/Agile Agile
Lean Startup
OrgSlice
Low Trust
Become Predictable Reduce Batch Size
Fully Decouple
Phase One
Pred
icta
bilit
y Adaptability
Emergence
Convergence
AEPEPC AC
Ad-Hoc
Lean/Agile Agile
Lean Startup
OrgSlice
Low Trust
Become Predictable Reduce Batch Size
Fully Decouple
Phase One
Phase Two
Pred
icta
bilit
y Adaptability
Emergence
Convergence
AEPEPC AC
Ad-Hoc
Lean/Agile Agile
Lean Startup
OrgSlice
Low Trust
Become Predictable Reduce Batch Size
Fully Decouple
Phase One
Phase Three
Phase Two
Pred
icta
bilit
y Adaptability
Emergence
Convergence
AEPEPC AC
Ad-Hoc
Lean/Agile Agile
Lean Startup
OrgSlice
Low Trust
Become Predictable Reduce Batch Size
Fully Decouple
Phase One
Phase Three
Phase Four
Phase Two
Pred
icta
bilit
y Adaptability
Emergence
Convergence
AEPEPC AC
Ad-Hoc
Lean/Agile Agile
Lean Startup
OrgSlice
Low Trust
Become Predictable Reduce Batch Size
Fully Decouple
Phase One
Phase Three
Phase Four
Phase Two
Phase Five
Corollary Three:
Organizational change can be mapped out in such a way that outcomes are measureable and predictable and economically
justified
DEVELOPING YOUR ROADMAP
Team
Database
Report
Screen
User Story
User Story
User Story
User Story
User Story
User Story
User Story
Structure Governance Metrics & Tools
Team
Database
Report
Screen
User Story
User Story
User Story
User Story
User Story
User Story
User Story
Structure Governance Metrics & Tools
Team
Database
Report
Screen
User Story
User Story
User Story
User Story
User Story
User Story
User Story
Governance Metrics & Tools
Structure
Team
Database
Report
Screen
User Story
User Story
User Story
User Story
User Story
User Story
User Story
Governance Metrics & Tools
Structure
STRUCTURE
Services Teams – These teams support common services across product lines. These teams support the needs of the product teams.
Team
Product Teams – These teams integrate services and write customer facing features. This is the proto-typical Scrum team.
Services Teams – These teams support common services across product lines. These teams support the needs of the product teams.
Team
Team
Programs Teams – These teams define requirements, set technical direction, and provide context and coordination.
Product Teams – These teams integrate services and write customer facing features. This is the proto-typical Scrum team.
Services Teams – These teams support common services across product lines. These teams support the needs of the product teams.
Team
Team
Team
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.
Product Teams – These teams integrate services and write customer facing features. This is the proto-typical Scrum team.
Services Teams – These teams support common services across product lines. These teams support the needs of the product teams.
Team
Team
Team
Team
Team Team Team Team
TeamTeamTeam
Product & ServicesTeams
Team Team Team
Team Team Team Team
TeamTeamTeam
Product & ServicesTeams
ProgramTeams
Team
Team Team Team
Team Team Team Team
TeamTeamTeam
Product & ServicesTeams
ProgramTeams
PortfolioTeams
GOVERNANCE
Team
Team Team Team
Team Team Team Team
TeamTeamTeam
Product & ServicesTeams
ProgramTeams
PortfolioTeams
Product & ServicesTeams
Scrum
Team
Team Team Team
Team Team Team Team
TeamTeamTeam
ProgramTeams
PortfolioTeams
Product & ServicesTeams
ProgramTeams
PortfolioTeams
Scrum
Kanban
Team
Team Team Team
Team Team Team Team
TeamTeamTeam
Product & ServicesTeams
ProgramTeams
PortfolioTeams
Scrum
Kanban
KanbanTeam
Team Team Team
Team Team Team Team
TeamTeamTeam
METRICS
Product & ServicesTeams
ProgramTeams
PortfolioTeams
Scrum
Kanban
KanbanTeam
Team Team Team
Team Team Team Team
TeamTeamTeam
Product & ServicesTeams
ProgramTeams
PortfolioTeams
Scrum
Kanban
KanbanTeam
Team Team Team
• Backlog Size• Velocity• Burndown• Escaped Defects• Commit % Ratio• Acceptance % Ratio• Scope Change
Product & ServicesTeams
ProgramTeams
PortfolioTeams
Scrum
Kanban
KanbanTeam
• Cycle Time• Features Blocked• Rework/Defects• Backlog Size• Velocity• Burndown• Escaped Defects• Commit % Rate• Acceptance % Ratio• Scope Change
Product & ServicesTeams
ProgramTeams
PortfolioTeams
Scrum
Kanban
Kanban
• Backlog Size• Velocity• Burndown• Escaped Defects• Commit % Ratio• Acceptance % Ratio• Scope Change
• Cycle Time• Features Blocked• Rework/Defects
• Takt Time/Cycle Time• Time/Cost/Scope/Value• RIO/Capitalization
Corollary Four:
Organizational constructs, governance models, metrics and
controls can be established without violating the principles
of agile
INCREMENTALTRANSFORMATION
Product & ServicesTeams
ProgramTeams
PortfolioTeams
Scrum
Kanban
KanbanTeam
Team Team Team
Team Team Team Team
TeamTeamTeam
Agile Pilot
Increment One
Product & ServicesTeams
ProgramTeams
PortfolioTeams
Scrum
Kanban
KanbanTeam
Team Team Team
Team Team Team Team
TeamTeamTeam
Agile Pilot
Increment One
Agile Rollout
Increment Two
Product & ServicesTeams
ProgramTeams
PortfolioTeams
Scrum
Kanban
KanbanTeam
Team Team Team
Team Team Team Team
TeamTeamTeam
Agile Pilot
Increment One
Agile Rollout
Three - N
ITERATIVETRANSFORMATION
Product & ServicesTeams
ProgramTeams
PortfolioTeams
Scrum
Kanban
KanbanTeam
Team Team Team
Team Team Team Team
TeamTeamTeam
Agile Pilot
Iteration One
Product & ServicesTeams
ProgramTeams
PortfolioTeams
Scrum
Kanban
KanbanTeam
Team Team Team
Team Team Team Team
TeamTeamTeam
Agile Pilot
Iteration Two
Product & ServicesTeams
ProgramTeams
PortfolioTeams
Scrum
Kanban
KanbanTeam
Team Team Team
Team Team Team Team
TeamTeamTeam
Agile Pilot
Iteration Three
Product & ServicesTeams
ProgramTeams
PortfolioTeams
Scrum
Kanban
Kanban
Agile Pilot
Iteration Four
Team
Team Team Team
Team Team Team Team
TeamTeamTeam
Product & ServicesTeams
ProgramTeams
PortfolioTeams
Scrum
Kanban
Kanban
Agile Pilot
Iteration Five
Team Team
Team Team Team
TeamTeamTeam
Team
Team
Team
ITERATIVE & INCREMETNAL CHANGE
Product & ServicesTeams
ProgramTeams
PortfolioTeams
Scrum
Kanban
Kanban
Agile Pilot
Iteration One
Team Team
Team Team Team
TeamTeamTeam
Team
Team
Team
Product & ServicesTeams
ProgramTeams
PortfolioTeams
Scrum
Kanban
Kanban
Agile Pilot
Team Team
Team Team Team
TeamTeamTeam
Team
Team
Team
Iteration Two
Product & ServicesTeams
ProgramTeams
PortfolioTeams
Scrum
Kanban
Kanban
Agile Pilot
Iteration Three
Agile Rollout
Iteration One
Team Team
Team Team Team
TeamTeamTeam
Team
Team
Team
Product & ServicesTeams
ProgramTeams
PortfolioTeams
Scrum
Kanban
Kanban
Agile Pilot
Iteration Four
Agile Rollout
Iteration Two
Team Team
Team Team Team
TeamTeamTeam
Team
Team
Team
Product & ServicesTeams
ProgramTeams
PortfolioTeams
Scrum
Kanban
Kanban
Agile Pilot
Iteration Five
Agile Rollout
Iteration Three
Team Team
Team Team Team
TeamTeamTeam
Team
Team
Team
Corollary Five:
Organizations can adopt agile safely and pragmatically by
iteratively and incrementally introducing structure,
governance, and metrics and maturing practices and culture
over time
SUMMARY
Theory of Transformation
Agile transformation begins by defining a rational system of delivery for the enterprise
Theory of Transformation
True agility comes by breaking dependencies between teams
across the organization
Theory of Transformation
Healthy culture and solid practices emerge within a
rational delivery framework
Corollary One:
Solving for the issues that get in the way of effectively practicing agile is what should guide your agile transformation initiative
Corollary Two:
Agile can mean different things to different companies and not all agile approaches will work
well for every organization
Corollary Three:
Organizational change can be mapped out in such a way that outcomes are measureable and predictable and economically
justified
Corollary Four:
Organizational constructs, governance models, metrics and
controls can be established without violating the principles
of agile
Corollary Five:
Organizations can adopt agile safely and pragmatically by
iteratively and incrementally introducing structure,
governance, and metrics and maturing practices and culture
over time
Summary
By focusing on the fundamentals of agile delivery, while systematically
and methodically breaking dependencies, we can achieve true
enterprise agility
WHY AGILE IS FAILINGIN LARGE ENTERPRISES
…and what you can do about it