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AgileCamp 2014 Keynote: Extending Agility, Ryan Martens

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AgileCamp 2014 Keynote: Extending agility, Ryan Martens CEO of Rally Software

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• Start with the backlog[1] Plan the iteration, based on the capacity of the team[2] Work the iteration[3] Deliver an increment[4] Retrospect
• Start with the backlog, feeding the Ready Queue[1] Flow items into the available slots, which represent the capacity of the team[2] This is the Work in Progress, which is explicitly limited in Kanban.[3] Other activities occur at cadences that are determined independently.
• 5000 - the number of problems a typical engineering undergraduate is given to solve, each one having a unique solution. In business the trick is finding the right problem to solve, not coming up with the one solution.
• Start with the backlog[1] Plan the iteration, based on the capacity of the team[2] Work the iteration[3] Deliver an increment[4] Retrospect
• Start with the backlog, feeding the Ready Queue[1] Flow items into the available slots, which represent the capacity of the team[2] This is the Work in Progress, which is explicitly limited in Kanban.[3] Other activities occur at cadences that are determined independently.
• Daniel Kahnman - Thinking Fast and Slow
• 25-55% - imagine you run an experiment where you expect over a week that 25% of your userbase will give it a try. At the end of the experiment you get 55% to give it a try, if you don&apos;t write down the 25%, in your excitement you will skip confronting why your initial estimate was off by a factor of 2. Even in success you need to learn from comparing what you expected will happen vs. what actually happened
• Richard Feynman
• AgileCamp 2014 Keynote: Extending Agility, Ryan Martens

1. 1. www.rallydev.com @RallyOn ©2014 Extend Agility: 3 Key Steps to Remaining Competitive Ryan Martens – Founder, CTO
2. 2. www.rallydev.com @RallyOn ©2014 Ryan Martens @RallyO nChief Technology Officer Rally Software
3. 3. www.rallydev.com @RallyOn ©2014 To remain competitive
5. 5. www.rallydev.com @RallyOn ©2014 EXTEND AGILITY…?
6. 6. www.rallydev.com @RallyOn ©2014 An example…
7. 7. www.rallydev.com @RallyOn ©2014 Consumer data company
8. 8. www.rallydev.com @RallyOn ©2014 Market\$Share\$ 1 2 3 4 5 6 7 8 1 80% market share
9. 9. www.rallydev.com @RallyOn ©2014 Market\$Share\$ 1 2 3 4 5 6 7 8 2 “ We need a native mobile app.”
10. 10. www.rallydev.com @RallyOn ©2014 Market\$Share\$ 1 2 3 4 5 6 7 8 3 App specification begins
11. 11. www.rallydev.com @RallyOn ©2014 Market\$Share\$ 1 2 3 4 5 6 7 8 4 Startup competitor ships 1.0
12. 12. www.rallydev.com @RallyOn ©2014 Market\$Share\$ 1 2 3 4 5 6 7 8 5 Startup competitor ships 1.1
13. 13. www.rallydev.com @RallyOn ©2014 Market\$Share\$ 1 2 3 4 5 6 7 8 6 App development begins
14. 14. www.rallydev.com @RallyOn ©2014 Market\$Share\$ 1 2 3 4 5 6 7 8 7 Startup competitor ships 1.2
15. 15. www.rallydev.com @RallyOn ©2014 Market\$Share\$ 1 2 3 4 5 6 7 8 8 Native app ships
16. 16. www.rallydev.com @RallyOn ©2014 Market\$Share\$ 1 2 3 4 5 6 7 8 1 80% market share 2 “ We need a native mobile app.” 3 App specification begins 4 Startup competitor ships 1.0 5 Startup competitor ships 1.1 6 App development begins 7 Startup competitor ships 1.2 8 Native app ships
17. 17. www.rallydev.com @RallyOn ©2014 12 months to write speciﬁcation" Market\$Share\$ 3 6 3 App specification begins 6 App development begins
18. 18. www.rallydev.com @RallyOn ©2014 Market\$Share\$ 6 8 6 App development begins 8 Native app ships 9 months to build app"
19. 19. www.rallydev.com @RallyOn ©2014 21 months to respond"Market\$Share\$ 3 3 App specification begins 8 8 Native app ships
20. 20. www.rallydev.com @RallyOn ©2014 Market\$Share\$ 5 8 12 months to forever lose half the market share"
21. 21. www.rallydev.com @RallyOn ©2014 Gut wrenching
22. 22. www.rallydev.com @RallyOn ©2014 What’s going on here?
23. 23. www.rallydev.com @RallyOn ©2014 Feasible Will rapidly change markets
24. 24. www.rallydev.com @RallyOn ©2014 Connected tribes https://www.flickr.com/photos/shankbone/6183443813
25. 25. www.rallydev.com @RallyOn ©2014 Time needed to reach: Feasible Desirable and Viable
26. 26. www.rallydev.com @RallyOn ©2014 Some examples…
27. 27. www.rallydev.com @RallyOn ©2014 1984
28. 28. www.rallydev.com @RallyOn ©2014 2006
30. 30. www.rallydev.com @RallyOn ©2014 2001
31. 31. www.rallydev.com @RallyOn ©2014 2006
32. 32. www.rallydev.com @RallyOn ©2014 5 years
33. 33. www.rallydev.com @RallyOn ©2014 2007
34. 34. www.rallydev.com @RallyOn ©2014 2010
35. 35. www.rallydev.com @RallyOn ©2014 3 years
36. 36. www.rallydev.com @RallyOn ©2014 2010
37. 37. www.rallydev.com @RallyOn ©2014 2012
38. 38. www.rallydev.com @RallyOn ©2014 2 years
39. 39. www.rallydev.com @RallyOn ©2014 2008
40. 40. www.rallydev.com @RallyOn ©2014 2012
41. 41. www.rallydev.com @RallyOn ©2014 4 years
42. 42. www.rallydev.com @RallyOn ©2014 “The Tesla Model S outscores every other car in our test Ratings.” – Consumer Reports
43. 43. www.rallydev.com @RallyOn ©2014 1979
44. 44. www.rallydev.com @RallyOn ©2014 1989
45. 45. www.rallydev.com @RallyOn ©2014 10 years
46. 46. www.rallydev.com @RallyOn ©2014 5 years
47. 47. www.rallydev.com @RallyOn ©2014 2.5 years
48. 48. www.rallydev.com @RallyOn ©2014 1.5 years
49. 49. www.rallydev.com @RallyOn ©2014 1966
50. 50. www.rallydev.com @RallyOn ©2014 1998
52. 52. www.rallydev.com @RallyOn ©2014 1998
53. 53. www.rallydev.com @RallyOn ©2014 2005
54. 54. www.rallydev.com @RallyOn ©2014 7 years
55. 55. www.rallydev.com @RallyOn ©2014 Time needed to form a tribe and spread the word
56. 56. www.rallydev.com @RallyOn ©2014 An example…
58. 58. www.rallydev.com @RallyOn ©2014 8 years
60. 60. www.rallydev.com @RallyOn ©2014 1.5 years
61. 61. www.rallydev.com @RallyOn ©2014 Market expectations can change and spread quickly
62. 62. www.rallydev.com @RallyOn ©2014 Do you have the agility to balance
63. 63. www.rallydev.com @RallyOn ©2014 operating the business and responding to change?
64. 64. www.rallydev.com @RallyOn ©2014 Why does this feel unnatural?
66. 66. www.rallydev.com @RallyOn ©2014 “the greatest prosperity can exist only when that individual has reached his highest state of efficiency; that is, when he is turning out his largest daily output.”
69. 69. www.rallydev.com @RallyOn ©2014 Assumes: Certainty is high Goal: Maximize individual efficiency
70. 70. www.rallydev.com @RallyOn ©2014 100 years later
71. 71. www.rallydev.com @RallyOn ©2014 Status Quo Budgets Comprehensive Analysis Detailed Plans Waterfall Execution
72. 72. www.rallydev.com @RallyOn ©2014 Works when: Certainty is high
74. 74. www.rallydev.com @RallyOn ©2014 Agile Execution Lean Thinking
75. 75. www.rallydev.com @RallyOn ©2014 Balance operation and exploration
76. 76. www.rallydev.com @RallyOn ©2014 Assumes: Uncertainty exists Goal: Maximize value delivery
78. 78. www.rallydev.com @RallyOn ©2014 Step 0:
79. 79. www.rallydev.com @RallyOn ©2014 Step 0: Replace Waterfall execution with Agile execution
82. 82. www.rallydev.com @RallyOn ©2014 Product Backlog Iteration 2 Weeks Daily Meeting Iteration Backlog Product Increment ITERATIONMECHANICS Scrum Scrum
83. 83. www.rallydev.com @RallyOn ©2014 FLOWMECHANICS (all independent cadences) Ready queue prioritize retrospectgroom release release WIP Target Kanban Kanban
84. 84. www.rallydev.com @RallyOn ©2014 Step 1:
85. 85. www.rallydev.com @RallyOn ©2014 Step 1: Balance planning with empirical learning
86. 86. www.rallydev.com @RallyOn ©2014 Typical approach
87. 87. www.rallydev.com @RallyOn ©2014 http://www.flickr.com/photos/isaacmao/380257543 Create a plan to predict the future
88. 88. www.rallydev.com @RallyOn ©2014 Budget approval Product definition Product requirements Detailed plan Alpha release Beta release Final release FIRST CONTACT WITH CU
89. 89. www.rallydev.com @RallyOn ©2014 Budget approval Market research Product definition Product requirements Detailed plan Alpha release Beta release Final release FIRST CONTACT WITH CU
90. 90. www.rallydev.com @RallyOn ©2014 Budget approval Market research Project definition Project requirements Detailed plan Alpha release Beta release Final release FIRST CONTACT WITH CU
91. 91. www.rallydev.com @RallyOn ©2014 Budget approval Market research Project definition Project requirements Detailed plan Alpha release Beta release Final release FIRST CONTACT WITH CU
92. 92. www.rallydev.com @RallyOn ©2014 Budget approval Market research Project definition Project requirements Detailed plan Alpha release Beta release Final release FIRST CONTACT WITH CU
93. 93. www.rallydev.com @RallyOn ©2014 Budget approval Market research Project definition Project requirements Detailed plan Development Final release FIRST CONTACT WITH CU
94. 94. www.rallydev.com @RallyOn ©2014 Budget approval Market research Project definition Project requirements Detailed plan Development Verification FIRST CONTACT WITH CU
95. 95. www.rallydev.com @RallyOn ©2014 Budget approval Market research Project definition Project requirements Detailed plan Development Verification Final release FIRST CONTACT WITH CU
96. 96. www.rallydev.com @RallyOn ©2014 HOW MANY GUESSES?
97. 97. www.rallydev.com @RallyOn ©2014 FIRST CONTACT WITH USERS
100. 100. www.rallydev.com @RallyOn ©2014 http://www.flickr.com/photos/oregondot/4132135156
101. 101. www.rallydev.com @RallyOn ©2014 Obscure the uncertainty with details of a false precision
102. 102. www.rallydev.com @RallyOn ©2014 Embrace, reveal and mitigate the uncertainty
103. 103. www.rallydev.com @RallyOn ©2014 Turn Uncertainty Into Knowledge
104. 104. www.rallydev.com @RallyOn ©2014 http://www.flickr.com/photos/memekiller/4564410767
109. 109. www.rallydev.com @RallyOn ©2014 A s m t o sC n a N m : D t : K y A s m t o D p n e t A s m t o s F l i e A s m t o s O h r A s m t o sO h r A s m t o s K y A s m t o D p n e t A s m t o s K y A s m t o D p n e t A s m t o s I- 1 R m n e s i l h l i t g v r W n w h n g v n e e t w l h p e T x m s a e a e a c p a l r m n e s S g e t o s w l m t v t g v r R c p e t w n g f s n t m W a i e r a o a l s g e t o s W a e r c i e p e e e c d t W a e d t m l e t m s a e P r n r a t r f r a l a s W a a e m n y t r u h p r n r r f r a s W a e e o g p r e i v n o y O r l a s i l b y g f s F c b o d s w l d i e t affic A m b l r t p o u t s r t g
110. 110. www.rallydev.com @RallyOn ©2014 Key assumptions Knowledge
111. 111. www.rallydev.com @RallyOn ©2014 Run experiments
112. 112. www.rallydev.com @RallyOn ©2014 Frame
124. 124. www.rallydev.com @RallyOn ©2014 Build
125. 125. www.rallydev.com @RallyOn ©2014 Product Backlog Iteration 2 Weeks Daily Meeting Iteration Backlog Product Increment ITERATIONMECHANICS Scrum Scrum
126. 126. www.rallydev.com @RallyOn ©2014 FLOWMECHANICS (all independent cadences) Ready queue prioritize retrospectgroom release release WIP Target Kanban Kanban
127. 127. www.rallydev.com @RallyOn ©2014 Measure
128. 128. www.rallydev.com @RallyOn ©2014 Collect http://www.flickr.com/photos/mrpetersononline/4977025601
129. 129. www.rallydev.com @RallyOn ©2014 Analyze http://www.flickr.com/photos/mrpetersononline/4992505907
130. 130. www.rallydev.com @RallyOn ©2014 Organize http://www.flickr.com/photos/mrpetersononline/4992505641
131. 131. www.rallydev.com @RallyOn ©2014 Learn
136. 136. www.rallydev.com @RallyOn ©2014 25%
137. 137. www.rallydev.com @RallyOn ©2014 25% 55%
138. 138. www.rallydev.com @RallyOn ©2014 Empirical Learning
141. 141. www.rallydev.com @RallyOn ©2014 http://www.richard-feynman.net/gallery.htm
143. 143. www.rallydev.com @RallyOn ©2014 Step 2:
144. 144. www.rallydev.com @RallyOn ©2014 Step 2: Balance analysis with disciplined exploration
145. 145. www.rallydev.com @RallyOn ©2014 Typical approach
146. 146. www.rallydev.com @RallyOn ©2014 Magic box of innovation https://www.flickr.com/photos/wonderlane/7923402476
147. 147. www.rallydev.com @RallyOn ©2014 Disciplined exploration
148. 148. www.rallydev.com @RallyOn ©2014 Disciplined exploration
149. 149. www.rallydev.com @RallyOn ©2014 Form We have a team with strong conviction to make the vision come alive
150. 150. www.rallydev.com @RallyOn ©2014 Form The vision is big enough it can change adjacent products and markets
151. 151. www.rallydev.com @RallyOn ©2014 Form We have support from the company to pursue the vision
152. 152. www.rallydev.com @RallyOn ©2014 Disciplined exploration
153. 153. www.rallydev.com @RallyOn ©2014 We understand the problem a customer wants solved Discover
154. 154. www.rallydev.com @RallyOn ©2014 Our product idea solves the customer’s problem Discover
155. 155. www.rallydev.com @RallyOn ©2014 Our business model can be profitable Discover
156. 156. www.rallydev.com @RallyOn ©2014 Pivot or Persevere? Disciplined exploration
157. 157. www.rallydev.com @RallyOn ©2014 Disciplined exploration
158. 158. www.rallydev.com @RallyOn ©2014 The founders can: Understand the flow of money and sell the offer Validate
159. 159. www.rallydev.com @RallyOn ©2014 Our draft sales plan will close or activate customers Validate
160. 160. www.rallydev.com @RallyOn ©2014 We understand our go to market strategy Validate
161. 161. www.rallydev.com @RallyOn ©2014 Pivot or Persevere? Disciplined exploration
162. 162. www.rallydev.com @RallyOn ©2014 Disciplined exploration
163. 163. www.rallydev.com @RallyOn ©2014 We have budget and assembled a cross- department transition team Transition
164. 164. www.rallydev.com @RallyOn ©2014 Transition Departments can take on our new offer
165. 165. www.rallydev.com @RallyOn ©2014 We no longer need our inventors on the team Transition
168. 168. www.rallydev.com @RallyOn ©2014 Step 3:
169. 169. www.rallydev.com @RallyOn ©2014 Step 3: Replace budget as strategy with adaptive steering
170. 170. www.rallydev.com @RallyOn ©2014 Typical approach
171. 171. www.rallydev.com @RallyOn ©2014 Budget as strategy
172. 172. www.rallydev.com @RallyOn ©2014 “Plus or minus the price of a Hyundai, how much will you make with this spend next year?”
174. 174. www.rallydev.com @RallyOn ©2014 3 – 5 Year Vision
175. 175. www.rallydev.com @RallyOn ©2014 Possible futures
176. 176. www.rallydev.com @RallyOn ©2014 This year’s strategy
177. 177. www.rallydev.com @RallyOn ©2014 This year’s execution
178. 178. www.rallydev.com @RallyOn ©2014 Flow of information
179. 179. www.rallydev.com @RallyOn ©2014 Creating space, safety, and accountability with horizons
180. 180. www.rallydev.com @RallyOn ©2014 Horizon budgeting
181. 181. www.rallydev.com @RallyOn ©2014 Today’s spend buys options on future high growth offers with an expected return in 36 to 72 months. Horizon 3
182. 182. www.rallydev.com @RallyOn ©2014 Today’s spend fuels high growth offers with an expected return in 12 to 36 months. Horizon 2
183. 183. www.rallydev.com @RallyOn ©2014 Today’s spend funds offers with a predictable return within the current budget cycle. Horizon 1
184. 184. www.rallydev.com @RallyOn ©2014 Horizon allocation 70%20%10%
185. 185. www.rallydev.com @RallyOn ©2014 Goals, Metrics, and the Three Horizons Different Metrics for Each Horizon TIME FRAME HORIZON 1 (0 - 12 mos) HORIZON 2 (12 - 36 mos) HORIZON 3 (36 - 72 mos) Create a Category Maximize Economic Returns Become a Going Concern Driving Goal Key Performance Indicators Revenue vs. plan Bookings Contribution margin Market share Wallet share Target accts vs. plan Sales velocity Deal size Segment share Time to tipping point Name-brand customers Deal size Name-brand partners PR buzz Flagship projects “Opex” “Timex” “Capex” Figure 2.6