Feeding the agile beast 2010 talk

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Prioritize Features based on driving down risk and delivering business value. This is an Agile Business Analysis tool that supports the nature of Agile Teams while keeping development focused on what matters the most to the business .

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  • IntroductionDescription of AgileDescription of the Agile - Business Value GapDiscuss the why this gap exists (The How Trap)Talk about a way to close this gap using Capability AnalysisGive examples of deliverables from a recent project
  • Through Improved ToolsCheap InfrastructureMassive Computing PowerUbiquitous NetworkNew Methods of Delivery that are cheap and low frictionWe are able to rapidly develop new softwareWith Agile methods we are able to operate better, faster, and cheaper than ever before
  • Learning Self Organization
  • When asked customers will ask for everything they want or might want – not the minimum needed to get their business. More cost (in time) for the same revenue is not the best economic returnMoving faster when you aren’t building the next most valuable thing – or when you are not burning down risk on the project will not result in the best economic returnVisibility and feedback are powerful tools for change and trust building – but if they don’t provide the feedback needed to optimize business value they aren’t sufficient to drive business valueTeam collaboration and learning within the development teams are important- but there is a lot of context and understanding that must be spread across the team to improve delivery and verification needed to optimize business value
  • When asked customers will ask for everything they want or might want – not the minimum needed to get their business. More cost (in time) for the same revenue is not the best economic returnMoving faster when you aren’t building the next most valuable thing – or when you are not burning down risk on the project will not result in the best economic returnVisibility and feedback are powerful tools for change and trust building – but if they don’t provide the feedback needed to optimize business value they aren’t sufficient to drive business valueTeam collaboration and learning within the development teams are important- but there is a lot of context and understanding that must be spread across the team to improve delivery and verification needed to optimize business value
  • Business ValueImproved Usability, Functionality, Availability, Reliability, Performance (throughput, response time, and predictability), Capacity, Security, and/or Agility that solves a business problem.
  • There is an arrow in this logo. Do you see it?
  • Now you see it. And you will always see it. You will always look at this differently, now that you see it.
  • Check in is not core
  • This is more than your product. What does the customer do? Add your product features. Many will be supporting and controlling.Many will be invisible to your customer.
  • This is light weight but validates our business gut. Often this is enough to get started and it is very social and collaborative. Last bullet should be the more complex and structured approaches. There is a place for both and the model supports either. Focusing ObjectivesBlitz QFDThe Business Value GameReal Options
  • Part of elaboration should be to translate performance attributes into metrics
  • The model does not change a lotThe colors, however canWhat not to work on is very important. Makes us less reactionary.
  • Bob Charette closed his keynote suggesting “take a fresh look”
  • OODAMilitary strategist Colonel John Boyd described the OODA loop for fighter pilots. It has since been applied to define the Marine Corps Doctrine in Maneuver warfare. Chet Richards applies it business strategy in Certain To Win. The primary concept is to expend the least resource to accomplish the next objective and to operate at a decision cycle faster than your competition can achieve. This allows you to go farther and faster than your competition.Unfortunately, it can not as simple as “observe, then orient, then decide, then act.” In fact such a sequential model would be very ponderous and would not well describe how successful competitors operate.The key to quickness turns out to be the two “implicit guidance and control” arrows at the top. In other words, most of the time people and groups do not employ the explicit, sequential O-to-O-to-D-to-A mechanism. Most of the time, they simply observe, orient, and act. There is data coming out to support this (see Gary Klein’s book, Sources of Power.)The question, of course, is, “What action?” A thinking opponent doesn’t provide us with a laundry list of his tactics so we can work out responses in advance. The mechanism which handles this uncertainty and makes the loop function in a real world situation is “Orientation.”As we suck in information via the “Observe” gateway, it may happen that we notice mismatches between our orientation and what we’re observing in the real world. If we don’t spot these mismatches and correct our orientation, the actions that flow from it may not be as effective as we intend. This can open up opportunities for our opponents. Boyd’s concept of strategy places heavy emphasis on attacking the other side’s orientation to open up just these kinds of opportunities, and he suggests many ways to do this.Note that “OODA” speed is quite different from the speed of our actions. Doing something dumb or irrelevant, but doing it at high speed, may not provide much of a competitive advantage.The “Decision/hypothesis” block is the learning part of the loop, where we experiment and in the process add new actions to the Implicit Guidance and Control link. You can also think of it as programming orientation for future intuitive actions.
  • Feeding the agile beast 2010 talk

    1. 1. Feeding the Agile Beast<br />Focusing Development on <br />Delivering Business Value<br />Dean Stevens - Synaptus<br />
    2. 2. Agile Methods (Scrum, Lean, Agile, Kanban)Faster and Higher Quality<br />Product Backlog<br />Sprint or Continuous Development<br />Ready Backlog<br />Daily<br />Build<br />Design<br />Release<br />Prioritize<br />Product<br />Understand<br />Organization<br />Deploy<br />Improvements<br />Test<br />Working Software<br />Evaluate<br />On-going Improvement of<br />Development Organization<br />Capability<br />Do<br />Plan<br />Feedback<br />Check<br />Adjust<br />
    3. 3. Lean - Agile Software DevelopmentThe Bargain of Agile<br />Better, Faster, Cheaper<br />The Bargain of Agile is faster, more reliable, higher quality software. We also achieve higher trust inside the team. <br />Fit with Customer Desire<br />Result of close customer interaction, continuous delivery, iterative development, and progressive elaboration <br />Result of iterations, Progressive Elaboration, WIP limits, focus on quality, “done-done”, a continuous state of readiness, and refactoring<br />Flow<br />Result of incremental development, visible management tools, measures of cycle time and/or velocity<br />Visibility<br />Result of daily standup, retrospectives, and ceremonies supporting process improvement and learning – includes shared understanding and self organization<br />Collaborative Game<br />
    4. 4. The Bargain of Agile<br />The business gets product faster, better, cheaper<br />Teams get environment that promotes high trust and satisfaction<br />How we get there ( a few focus areas)<br />Fit with customer desire<br />Flow<br />Visibility<br />Collaboration<br />We are missing something BIG: Business Value<br />
    5. 5. But What’s up?Does business get what they expect?<br />CombinedChanges<br />Value Creation<br />Effectiveness<br />We expect to realize dramatic results<br />But often don’t realize the expected benefit<br />
    6. 6. Scrum, Agile, Lean & KanbanDon’t explicitly address Business Value<br />Business Value comes from building what will provide the highest economic return (over time) to the business.<br />Fit with Customer Desire<br />Business Value<br />Flow<br />Business Value<br />Visibility<br />Business Value<br />Collaborative Game<br />Business Value<br />Moving faster is not sufficient – we have to build the right things.<br />
    7. 7. Without Business Value…Agile is often about cost reduction<br />Better Use of Technology<br />Faster Development<br />Fewer Defects<br />Better Utilization<br />Productive<br />Talent Pool<br />Cost Structure<br />Faster and Higher Quality is a Cost Reduction Strategy<br />
    8. 8. Greater Business Value… Arises from Technology – Business Alignment <br />Business<br />Technology<br />(Technology<br />+ Adoption)<br />* Business Need<br />Business Value<br />Revenue Stream<br />- Cost Structure<br />Profit<br />
    9. 9. The New Bargain of Agile<br />Business value comes from building what will provide the highest economic outcome (over time) to the business <br />Development is no longer the issue<br />Technology is no longer the obstacle<br />We must feed the agile beast in a way to achieve this business benefit<br />Allows you to operate at decision cycles faster and cheaper than your competition<br />
    10. 10. What does this look like in practice?Prioritized Product Backlog<br /><ul><li>Business Value is an outcome that increases or protects revenue, reduces costs, or aligns with the product strategy
    11. 11. Order the work to drive down risk and generate business value early.
    12. 12. What makes the most economic sense – this is not always obvious
    13. 13. Risk is a potential obstacle to business value – now or in the future</li></ul>2,500<br />Business Value Growing<br />Knowledge Growing (risk reduction)<br />2,000<br />1,500<br />$ in k<br />1,000<br />500<br />Value<br />Cost<br />
    14. 14. Prioritization is Hard Enoughat the Small Team<br />The Enterprise brings even bigger challenges<br />Multiple Teams, Multiple Products<br />Complex Architectures<br />Coordinating up and down stream in the Enterprise<br />Ensure that the purpose and value proposition of each feature/story is prioritized and understood by development / QA and verified in customer acceptance.<br />
    15. 15. Do you see it?<br />
    16. 16. Now you see it!<br />
    17. 17. The “How” TrapA human condition<br />The Fosbury Flop<br />Faxing isn’t ever “what” someone is doing<br />Everyone’s initial focus is on “how” they do their jobs<br />
    18. 18. Strip away the how wordsStable, Shows Underlying Need<br />
    19. 19. Overcoming the How TrapCapability Analysis<br />Value Performance Map<br />Should I invest in Create Quote?<br />Where should I focus to drive Business Value and Reduce Risk?<br />How do I determine when it is good enough?<br />What should we NOT work on?<br />
    20. 20. Prioritize & Scope the Backlog<br />
    21. 21. Backlog Against Capability Model<br />High Value<br />Medium Value<br />Low Value<br />Low Performing<br />Medium Performing<br />High Performing<br />Hard to Change<br />Moderate Effort to Change<br />Easy to Change<br />
    22. 22. Request comparison<br />Request focusedhere<br />3<br />3<br />14<br />These capabilities are not as efficient as possible but are not key to business value and perform acceptably – 2 additional requests were for a new archiving capability<br />Business ValuePerformance Gapis here<br />0<br />0<br />These capabilities are important to business value. Conduct vehicle related financial transactions with dealer does not perform acceptably<br />
    23. 23. It’s not Hard to Do<br />Repeat<br />
    24. 24. Clarify Business Outcomes – Specify Value<br />Specify Value <br />This is a Focusing Objective Model format used to present the strategic focus for the next six months.<br />This is very flexible and easy to consume. Typically built from existing strategy documents.<br />
    25. 25. ID the Capabilities<br />This is a capability model (it looks a lot like a story map)<br /><ul><li>High level Feature Groups
    26. 26. List features for each group
    27. 27. Remember the How Trap</li></ul>Collaborative sessions with management and the end users of the product<br />
    28. 28. ID Capabilities – See the end user value stream<br />Controlling<br />Value<br />Added<br />Supporting<br />
    29. 29. Assess the model<br />We cleaned up the capability model to get clarity on what specific outcomes were expected. <br />Then we assessed the model to determine what was most important to the business.<br />
    30. 30. Business Value<br />Answer a few simple but focused questions<br />Directly aligned with delivering the product strategy?<br />Key to the companies brand?<br />Provide competitive differentiation?<br />Can use more complex and structured approaches<br />i.e., Blitz QFD, The Business Value Game, Real Options<br />Generate Leads<br />
    31. 31. Performance<br />Can be done quickly and detail added as needed<br />How is this performing today?<br />Do we understand the level of performance expected?<br />Do we know how to improve?<br />Add detailed attributes when selected for the backlog.<br />Leads to clarity and testability of requirements.<br />
    32. 32. Risk – Cost of Delay<br />Can be done quickly and detail added as needed<br />Compliance or business risk?<br />Design, development or delivery risk?<br />Closely tied to other features?<br />Is delay expensive?<br />Executive Mandate?<br />Add detailed attributes when selected for the backlog.<br />Leads to clarity and testability of requirements.<br />Generate Leads<br />
    33. 33. Assess the Model – REALLY see the product user VSM<br />Controlling<br />Value<br />Added<br />Supporting<br />
    34. 34. Prioritize, Scope, and Communicate<br />The highest value opportunities are now clear<br />Re –assess when something has changed<br />Also, highlights what NOT to work on so we can stay focused<br />
    35. 35. Focus, Deliver and Learn<br />Here is a Kanban board used to coordinate across the various business units to ensure training, communication, implementation, and development all stay coordinated. <br />Business stakeholder stand-ups happen in front of this board.<br />
    36. 36. Simple but PowerfulAgile Development Combined with Capabilities Analysis<br />Fit with Product Strategy<br />Flow Across the Enterprise<br />Visibility of Prioritization<br />Collaboration with the Business<br />We can bring a method to the Business to collaborate in an Agile way<br />
    37. 37. Next Steps <br />Extend Lean – Agile up the Value Stream<br />Show leadership<br />Stop complaining, do something<br />Engage the business<br />
    38. 38. Benefits to the Business<br />Feature Management<br />More effective and less effort<br />Profitability, Competitive Advantage<br />Help the business focus on business value<br />Better economic outcomes<br />Faster to market<br />Rethink the Product Strategy<br />Take a fresh look at product strategy<br />Product Innovation<br />So, this is collaboration<br />
    39. 39. Benefit to Product Development<br />Backlog Prioritized, Scoped and Communicated<br />Better understanding of features in the context of the product strategy<br />Richer requirements through describing attributes of features and how they work in the end user value stream<br />Less rework and wasted work<br />PD perceived as high value business partner<br />
    40. 40. Capability Analysis a proven method<br />Original work documenting a process and techniques …<br />10 years – over 300 applications - $200 million saved<br />
    41. 41. Questions<br />Reach out to Dean Stevens<br />http://www.Synaptus.com<br />Dean.stevens@Synaptus.com<br />We offer<br />Agile Capability & Business Analysis<br />Strategic Project Execution<br />Kanban / Agile Project Management<br />Affiliations<br />David J Anderson and Associates<br />Pillar Technologies<br />
    42. 42. Guidance for Organizational Design<br />The design of the delivery organization can be the constraint<br />Align the delivery organization with the technology platform, the product strategy and business model<br />Result is more effective delivery of software that is aligned with realizing the product/business strategy<br />
    43. 43. Risk – Cost of Delay<br /><ul><li>Can be assessed quickly with more detailed approach as needed
    44. 44. Is there a compliance requirement or other business risk associated with this capability?
    45. 45. Does changing this capability introduce a lot of dependent changes or risk?
    46. 46. Are we aware of the Design, Development, and Delivery Risk?
    47. 47. Is a delay in delivery expensive?
    48. 48. Is this an Executive Mandate?
    49. 49. More detailed risk analysis can be performed as feature is pulled into active backlog</li></ul>Generate Leads<br />
    50. 50. Summary<br />We have a way to gain alignment on exactly what capabilities are most important to delivering business value.<br />We have a way to gain agreement on business value, performance, and risk.<br />We retain insight and set context for everyone from business management, product management, through development, QA, deployment, support, sales, etc.<br />The model provides guidance for organizational design.<br />When the strategy changes, the model is low friction to update.<br />We can use this to proactively improve collaboration with the business.<br />
    51. 51. Using Time as a WeaponThe new Bargain of Agility<br />The primary concept of the new Bargain of Agile is to expend the least resource to accomplish the next objective and to operate at a decision cycle faster than your competition can achieve.<br />Observe<br />Orient<br />Decide<br />Act<br />Unfolding circumstances<br />Implicit guidance and control<br />Implicit guidance and control<br />Understand<br />Culture<br />Tradition<br />New Information<br />Previous Experience<br />Synthesis<br />Action<br />(Test)<br />Observations<br />Feed<br />Forward<br />Feed<br />Forward<br />Decision<br />Feed<br />Forward<br />Outside information<br />Feedback<br />Unfolding interaction with the environment<br />
    52. 52. Even with Agile MethodsA lack of context and prioritization…<br />Results in:<br />Increased Risk<br />Unnecessary Rework<br />Delay to Value<br />Missing Important Stuff<br />Redundant Effort<br />Over-Engineering/Design<br />Lack of Testability<br />Not everything we can do has the same business .<br />
    53. 53. Why is this hard?The Blind Men and the Elephant<br />Your product could be like that elephant<br />Development<br />Product Management<br />Product<br />Customer<br />You need to develop a shared understanding of what needs to happen to deliver the business value through the product<br />
    54. 54. Rethinking the Agile EnterpriseStrategically Aligned, Throughput Focused, Human Powered<br />Sample Clients<br />Contributed / Featured <br />“Dennis Stevens helped us develop a structured approach that connected customer value to execution.” <br />-- Ric Merrifield, Microsoft Corporation<br />“Dennis Stevens helped us align product management, architecture, development, support and implementation. They were an advocate for the success of our business" <br />-- Rob Andes, CTO, Agris Corporation, a Division of John Deere<br />Network Bank<br />Portfolio, Program, Project Management<br />PMI: OPM3<br />Capability AnalysisHBR: The Next Revolution in Productivity<br />“In a time growth and change, Dennis Stevens helped us identify and develop the capabilities needed to deliver technology that was critical to our success." <br />-- Mike Rouse, COO, Security First Network Bank<br />Scaling Agile Development<br />Cutter: Rethinking the Agile Enterprise<br />Cost Cutting and Innovation<br />Re-th!nk<br />

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