Introduction to Agile in Financial Services

1. Using Agile Methods in Financial Services
How to get better results, quicker, using Applied -Agile
Gian Mahil
Scrum Master
Cutting Edge Consulting
gian@cuttingedgeconsuting.co.uk
V 2 7/11/14

2. Contents
Why we need a new approach
How Agile can help
The Agile Value Proposition
Case Study -1
Case Study - 2
Case Study - 3
Our Clients
About Us
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3. Introduction
When I first wrote this paper and gave this talk in 2008 Agile was something new and untried. Some companies were
experimenting out of frustration with ‘waterfall’. Since then Agile has become more a acceptable. More and more organisations are
prepared to give it a go. With varying results.
Many organisations come to us and say we are using Agile but it’s not working for us. They claim there is lack of control and dis-organisation
.
etc . Upon closer examination, we find the real reasons are they are basically doing a modified version of waterfall
and calling it Agile. They have not adopted the methodology effectively. It’s usually because they have not been trained well in the
new way of working, they don’t believe in it, or they don’t have good coaches available to help the team. After all, this is difficult –
it’s new. You have to get people to think- ‘what’s really important to me?’ and ‘why didn’t we do it better last time?’.
If it was easy everyone would be doing it we wouldn’t even be talking about it!
Gian Mahil
Nov 2014
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4. Why we need a new approach
Albert Einstein once said "The definition of insanity is doing the same thing over and over again and expecting different
results".
Financial services is characterised by the speed of change both regulatory and commercial as well as the size of projects.
The ‘Water fall’ approach has a strong following in financial services despite its failures, as it is seen to be the traditional
(and the ‘right’) way to do things. However, in most cases it leads to long deliveries time lines and failure to meet business
needs. Many millions are wasted in Financial Services on projects that fail to deliver their promises.
.
Even, while project requirements are being gathered the business is changing. Hence the users reluctance to commit and
systems professionals to get it right. While a system is undergoing testing the world has already changed. The systems/
process is no longer relevant! Hence the users disappointment. Being Agile is a way to counter act that and deliver a
system / process the users can actually use – earlier and at lower cost.
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5. How can Agile help us?
Principles behind the Agile Manifesto
Our highest priority is to satisfy the customer through early and continuous delivery of valuable software.
Welcome changing requirements, even late in development. Agile processes harness change for the
customer's competitive advantage.
Deliver working software frequently, from a couple of weeks to a couple of months, with a preference to
the shorter timescale.
Business people and developers must work together daily throughout the project.
Build projects around motivated individuals. Give them the environment and support they need, and
trust them to get the job done.
The most efficient and effective method of conveying information to and within a development team is
face-to-face conversation.
Working software is the primary measure of progress.
Agile processes promote sustainable development. The sponsors, developers, and users should be able
to maintain a constant pace indefinitely.
Continuous attention to technical excellence and good design enhances agility.
Simplicity--the art of maximizing the amount of work not done--is essential.
The best architectures, requirements, and designs emerge from self-organizing teams.
At regular intervals, the team reflects on how to become more effective, then tunes and adjusts its
behaviour accordingly.
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6. The Agile Value Proposition
By delivering working, tested and deployable deliverables on an incremental basis, Agile
delivers increased value and visibility much earlier in the life cycle as shown below.
Agile also delivers adaptability throughout the lifecycle
Finally because of the high levels of customer interaction it reduces risk much more quickly.
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7. Case Study 1 - Support Transformation at a global bank
Scenario:
An international global bank wanted to reduce their Investment Bank post trade support costs for all products by moving
support from offshore to a mixed model. The savings for the bank were estimated to be several million $ per year.
Our Solution:
Working with the key stakeholders we used an Agile approach and took the existing process and updated
them to reflect the future state
We next used the same approach to implement new processes for US, Canada, UK, Middle East, Brazil, India,
Singapore, Hong Kong and China.
It was risky approach for the bank not to take a traditional waterfall approach. However after successful implementation
they realised that a waterfall approach would have been more riskier and potentially lead to project failure.
Lesson Learned:
Here we used an ‘Agile’ or iterative approach in a none software development environment to achieve successful
results. Our approach was nimble and worked. We worked with the bank and allowed them to start realising the benefits
early and thus improve their bottom line.
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8. Case Study 2 - Post Trade Transformation at a investment bank
Scenario:
A global Eurpean Investment bank wanted to consolidate post trade support for a over a hundred & twenty
applications to a single support team. The savings for the bank were estimated to be several million
Euros per year.
Our Solution
Working with the key stakeholders users we used an Agile approach and took the existing support
processes and ensured they we all catalogued.
We took an Agile approach to take support off the incumbent team and transfer knowledge and skills to the
new team. We held daily stand ups for each knowledge transfer and monitored progress from a central
office in London.
Using this approach we had transferred support for over a hundred and twenty applications within a
year and had work lined up for the next three years.
Our approach was nimble and worked with the users to meet their demands and keep a focus on
delivery at the same time.
Our approach meant the bank was able realise headcount savings in high cost trading centers and
transfer support to low cost locations.
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9. Case Study 3 - Finance Transformation at global bank
Scenario:
A global bank embarked on multi million pound finance transformation - that would take up to three
years to complete. However, the bank wanted to see results quickly and not have to wait to the end to
start realising benefits.
Our Solution
Working with key stakeholders we used Agile principles to devise a release strategy that would deliver
benefits early by splitting up the delivery in to discrete releases.
Further the development approach within each Release also used an Agile to increase user involvement
and engagement from the very beginning.
This approach meant that the bank and business users could start to see benefits much earlier than
they would with a traditional waterfall approach.
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10. Our Clients
Lloyds Group Barclays Bank RBS - Direct Line
Fortis Bank Virgin Money Abbey National
Marsh & Mc Lennan Money Extra RCMS
Deutsche Bank Misys BSKYB
Union Bank of Norway AT&T BMW Rover Group
Industrial Bank of Japan SBC Warburg ATG
Wachovia Bank QEDIS Barclaycard
PIPC HCL Reveleus
HSBC Investment Bank VISA Barclays Capital
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11. About Us
About Us
Cutting Edge Consulting is based in Harlington in England and was started in 1996 by Gian Mahil. Gian has
a passion for doing things better and smarter than convention dictates – an Agile approach. Since 1996 he
has worked with many financial services clients internationally to deliver faster results an more success.
Gian has used Agile in various types of projects - not just systems development projects. We
can demonstrate its usage in Global Transformation and pure Change Management programmes in some
of the largest companies in the world.
For further information please contact Gian Mahil at gian@cuttingedgeconsutling.co.uk
Alternatively, visit our website www.cuttingedgeconsulting.co.uk
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Gian Mahil