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The Secret Sauce for Innovation (longform)
The Secret Sauce for Innovation (longform)
The Secret Sauce for Innovation (longform)
The Secret Sauce for Innovation (longform)
The Secret Sauce for Innovation (longform)
The Secret Sauce for Innovation (longform)
The Secret Sauce for Innovation (longform)
The Secret Sauce for Innovation (longform)
The Secret Sauce for Innovation (longform)
The Secret Sauce for Innovation (longform)
The Secret Sauce for Innovation (longform)
The Secret Sauce for Innovation (longform)
The Secret Sauce for Innovation (longform)
The Secret Sauce for Innovation (longform)
The Secret Sauce for Innovation (longform)
The Secret Sauce for Innovation (longform)
The Secret Sauce for Innovation (longform)
The Secret Sauce for Innovation (longform)
The Secret Sauce for Innovation (longform)
The Secret Sauce for Innovation (longform)
The Secret Sauce for Innovation (longform)
The Secret Sauce for Innovation (longform)
The Secret Sauce for Innovation (longform)
The Secret Sauce for Innovation (longform)
The Secret Sauce for Innovation (longform)
The Secret Sauce for Innovation (longform)
The Secret Sauce for Innovation (longform)
The Secret Sauce for Innovation (longform)
The Secret Sauce for Innovation (longform)
The Secret Sauce for Innovation (longform)
The Secret Sauce for Innovation (longform)
The Secret Sauce for Innovation (longform)
The Secret Sauce for Innovation (longform)
The Secret Sauce for Innovation (longform)
The Secret Sauce for Innovation (longform)
The Secret Sauce for Innovation (longform)
The Secret Sauce for Innovation (longform)
The Secret Sauce for Innovation (longform)
The Secret Sauce for Innovation (longform)
The Secret Sauce for Innovation (longform)
The Secret Sauce for Innovation (longform)
The Secret Sauce for Innovation (longform)
The Secret Sauce for Innovation (longform)
The Secret Sauce for Innovation (longform)
The Secret Sauce for Innovation (longform)
The Secret Sauce for Innovation (longform)
The Secret Sauce for Innovation (longform)
The Secret Sauce for Innovation (longform)
The Secret Sauce for Innovation (longform)
The Secret Sauce for Innovation (longform)
The Secret Sauce for Innovation (longform)
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The Secret Sauce for Innovation (longform)

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Laszlo Szalvay is a business leader, entrepreneur and industry expert of implementing Scrum and Agile-based practices for global IT organizations. Though his experience, he has identified five …

Laszlo Szalvay is a business leader, entrepreneur and industry expert of implementing Scrum and Agile-based practices for global IT organizations. Though his experience, he has identified five practical steps that every organization should adopt and make part of their DNA. At Agile Brazil 2012 Szalvay will outline the process of combining Agile concepts with a new approach to innovation that organizations can use to create surprising breakthroughs in new product creation and development. Using a wide range of real-world examples, interactive exercises and an engaging discussion style, Szalvay will provide every participant with useful insights that can be immediately applied to re-invigorate and nourish product innovation.

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  • 1. Innovation and Agility PMI REP #3517 Laszlo Szalvay, VP Worldwide Scrum Business Tuesday, December 11, 2012ENTERPRISE1 CLOUD DEVELOPMENT Copyright ©2012 CollabNet, Inc. All Rights Reserved.
  • 2. Innovation Quotes Without change there is no innovation, creativity, or incentive for improvement. Those who initiate change will have a better opportunity to manage the change that is inevitable. – William Pollard Innovation is the central issue in economic prosperity. – Michael Porter Innovation is the specific instrument of entrepreneurship. The act that endows resources with a new capacity to create wealth. – Peter Drucker Learning and innovation go hand in hand. The arrogance of success is to think that what you did yesterday will be sufficient for tomorrow. – William Pollard Innovation is not the product of logical thought, although the result is tied to logical structure. – Albert Einstein Mindless habitual behavior is the enemy of innovation. – Rosabeth Moss Kanter2 Copyright ©2012 CollabNet, Inc. All Rights Reserved.
  • 3. A short review of History If I had asked people what they wanted, they would have said faster horses. Henry Ford http://bit.ly/GRFPxO3 Copyright ©2012 CollabNet, Inc. All Rights Reserved.
  • 4. About CollabNet dPaaS Dev Tools Hosting Agile PM #1 Scrum Trainer Open ALM Platform Themes Build Lab Management Founded Founded Subversion Hybrid Cloud Development Collaborative Development ALM Communities Platform ALM 1999 2000 2007 2008 2009 2011 2012 Recognition4 Copyright ©2012 CollabNet, Inc. All Rights Reserved.
  • 5. Agenda • Understanding the problem space • My 5 step guide to making your What is organization more innovative desirable to • Closing users? innovation What is What is possible with viable in the technology marketplace? http://thepulse-mag.org/2011/11/innovation/5 Copyright ©2012 CollabNet, Inc. All Rights Reserved.
  • 6. Problem Statement We know Innovation drives growth and wealth creation for both organizations and people. • How do we innovate? • How can we set ourselves up for success in innovation? • How do we create the next great product? • How do we exploit technology as a competitive edge here?6 Copyright ©2012 CollabNet, Inc. All Rights Reserved.
  • 7. Our BHAG (big hairy audacious goal) Agility enables innovation.7 Copyright ©2012 CollabNet, Inc. All Rights Reserved.
  • 8. Market trends“Scrum is the Modern way to work” October 2010 Tieto In person meeting in Helsinki” Mika Koivuluoma, VP Software Development and Tools8 Copyright ©2012 CollabNet, Inc. All Rights Reserved.
  • 9. Exercise: Build Your Own Scrum Build Your Own Scrum brought to you by Adam Weisbart Level set your Scrum knowledge with your teammates (18 mins)9 Copyright ©2012 CollabNet, Inc. All Rights Reserved.
  • 10. Roles, meetings, and artifacts Scrum is a means to an end10 Copyright ©2012 CollabNet, Inc. All Rights Reserved.
  • 11. Step One – The Organization Become a Learning Organization11 Copyright ©2012 CollabNet, Inc. All Rights Reserved.
  • 12. On Become a Learning Organization • Scrum won’t solve your problems. Scrum will discover underlying problems in your organization. It’s your job as managers and executives to solve the problems Scrum unearths using a framework CollabNet can teach you. • Scrum doesn’t work when: – You believe that your organization doesn’t have problems – Politically or culturally you can’t solve problems • Scrum works when – You have a learning organization. One where the leadership sees solving problems as a means to a better company. – Being an Agile Business • A lesson about following the baton Jeff Sutherland12 Copyright ©2012 CollabNet, Inc. All Rights Reserved.
  • 13. Thought Leader Perspective If your company’s goal is DeMarco (Peopleware), a to become fast, management consultant, says that responsive, and agile, in todays competitive, fast-moving more efficiency is not the economy, managers work far less answer – you need more effectively than before. Responding slack. to restructuring and staff reductions, managers 2002 overemphasize deadlines and rush Slack Tom DeMarco employees, sacrificing quality. Instead, says DeMarco, executives should encourage teamwork, discourage competition and allow training time. 2001 Cahners Business Information, Inc.13 Copyright ©2012 CollabNet, Inc. All Rights Reserved.
  • 14. Thought Leader Perspective Autonomy over time, task, team, technique led to 20% time at some of the most innovative companies in the world. 2009 TED Conference Dan Pink “These lessons are worth repeating, and if more companies feel emboldened to follow Mr. Pinks advice, then so much In Drive, Dan Pink examines the three the better.” elements of true motivation— Wall Street Journal “Pink is rapidly acquiring international guru status… He is an engaging writer, who challenges and provokes.” Financial Times14 Copyright ©2012 CollabNet, Inc. All Rights Reserved.
  • 15. Thought Leader Perspective Innovation is a typical bottom-up phenomenon. Publications like Complexity and Innovation in Organizations, and Complexity Perspectives in Innovation and Social Change emphasize that innovation is doomed to fail when launched by upper management as top-down programs of “special” people, assigned with the difficult task of inventing something new. This approach reflects a causal deterministic view of trying to take charge of what’s going to happen in the future. It usually doesn’t work. The complex systems approach says that innovation is not a planned result, but an emergent result. Innovation just happens in self-organizing teams. But, for things to emerge there has to be something to emerge out of. And the key ingredients for innovation are: knowledge, creativity, motivation, diversity, and personality. http://www.noop.nl/2009/09/innovation-is-the-key-to-survival.html Jurgen Appelo15 Copyright ©2012 CollabNet, Inc. All Rights Reserved.
  • 16. Step Two – The People Employee Retention16 Copyright ©2012 CollabNet, Inc. All Rights Reserved.
  • 17. Employee retention Find employees who are intrinsically motivated and do everything you can to nourish and retain them Create a construct that includes slack, bottom-up ownership, and get out of the way17 Copyright ©2012 CollabNet, Inc. All Rights Reserved.
  • 18. So how did SCM market play out? So does Dan Pink’s motivation concept hold water? 2007 Forrester Research The Forrester Wave: Software Change and Configuration Managementautonomy, mastery, and purpose = innovation and market leadership 18 Copyright ©2012 CollabNet, Inc. All Rights Reserved.
  • 19. Our ALM Platform19 Copyright ©2012 CollabNet, Inc. All Rights Reserved.
  • 20. Step Three – The Platform Implement Community Architecture20 Copyright ©2012 CollabNet, Inc. All Rights Reserved.
  • 21. Enterprise Cloud Development21 Copyright ©2012 CollabNet, Inc. All Rights Reserved.
  • 22. Implement Community Architecture – what are the benefits?Your developers want to collaborate and be part of a community– step 2 enables that through… – Inner-source (Corporate Open Source) – Transparency (breeds trust which drives reuse) – Workspaces and Wikis (Federated) Wiki is the oldest and simplest software that lets a community of strangers work together to build something of surprising and lasting value. Ward Cunningham Inventor of the Wiki Sent to Laz via LinkedIn in March 201222 Copyright ©2012 CollabNet, Inc. All Rights Reserved.
  • 23. Thought Leader Perspective Laszlo’s question: When we spoke you mentioned you started with a wiki, SVN, and a mailing list. Why these three? Brian’s response: Brian Behlendorf is a tech guru and overall bad-ass. We started in 1995 with a mailing list, version control tool, and bug database. The “why” is pretty mundane – it’s because that’s the tools others were using at the time, they were *simple*, and they met people where they were. An email mailing list is *still* more interesting to me and I think more directly engaging for people, especially techies, than a forum on a website or a Facebook thread or whatever. SVN and Git are still essential. And a workflow- ish tool to systematically handle bugs and feature requests, essential then and essential now. But we weren’t inventing anything new in 1995 when it came to collaboration tools. But I still think those three tools are enough to build great software. Call me old-fashioned...23 Copyright ©2012 CollabNet, Inc. All Rights Reserved.
  • 24. Exercise: Build Your Own Community Architecture What are two things you can change inside your own company on Monday to create an environment of innovation? (3 mins)24 Copyright ©2012 CollabNet, Inc. All Rights Reserved.
  • 25. Step Four – The Executive Have a Vision25 Copyright ©2012 CollabNet, Inc. All Rights Reserved.
  • 26. Delighting Users • Delight More by Offering Less • Explore More Alternatives • Defer Decisions • Delight Users By Meeting Unrecognized Needs • Aim for the Simplest Possible Thing Give the people doing the work a clear line of sight to the people for whom the work is being done. Steven Denning26 Copyright ©2012 CollabNet, Inc. All Rights Reserved.
  • 27. Techniques to help Create & Foster a Vision • Executive Vision Sessions • Story Mapping • Walking Skeletons • Building Epics27 Copyright ©2012 CollabNet, Inc. All Rights Reserved.
  • 28. Technique (a) – Vision Session • Who are our primary users? • What do they say they need? • What do we know that they don’t? • What is our product’s key benefit? • Who are our primary competitors? • What makes our product different? http://bit.ly/N1WdZC28 Copyright ©2012 CollabNet, Inc. All Rights Reserved.
  • 29. Technique (b) – User Story Maps• A user story map... – Arranges user stories into a useful model – Helps you understand the overall functionality of the system – Identifies holes and omissions in your backlog Jeff Patton – Helps effectively plan holistic releases that deliver value to users and business with each release.29 Copyright ©2012 CollabNet, Inc. All Rights Reserved.
  • 30. Technique (c) – Walking Skeleton A Walking Skeleton is a tiny implementation of the system that performs a small end-to-end function. It need not use the final architecture, but it should link together the main architectural components. The architecture and the functionality can then evolve in parallel.30 Copyright ©2012 CollabNet, Inc. All Rights Reserved.
  • 31. Technique (d) – Epic Budgeting Budgeting is used to set soft limits on scope goals within the broader context of a date-based milestone. This technique is therefore a powerful tool for determining whether too much emphasis has been placed on a particular Epic in contrast to others in the release milestone.31 Copyright ©2012 CollabNet, Inc. All Rights Reserved.
  • 32. Exercise: Be Your Own Boss What are two things you can change inside your own company on Monday to create an environment of innovation (If you were the boss)? (6 mins)32 Copyright ©2012 CollabNet, Inc. All Rights Reserved.
  • 33. Step Five – Articulation Use User Stories33 Copyright ©2012 CollabNet, Inc. All Rights Reserved.
  • 34. Step 5 – Use User Stories User stories are simply a format for writing business requirements such that they are implementation-independent. User stories: • State requirements from the viewpoints of different stakeholders • Allow you to stop predicting/dictating system implementation (“The system shall…”) and start talking about how people will use the system; building capabilities • “are a promise for a future conversation” (Ron Jeffries) • Contain acceptance criteria (a definition of ‘done’)34 Copyright ©2012 CollabNet, Inc. All Rights Reserved.
  • 35. User Story Format Story template form: “As a <role> I want to <capability> so that <rationale>.”35 Copyright ©2012 CollabNet, Inc. All Rights Reserved.
  • 36. Good User Stories Follow the INVEST Acronym • Independent • Negotiable • Valuable • Estimable • Small • Testable Picture taken by David Koontz http://bit.ly/Kww9JY36 Copyright ©2012 CollabNet, Inc. All Rights Reserved.
  • 37. Example story that could be improved I want the brochure to be colorful. • Drawbacks: not Independent, not Estimable (without knowing other features of brochure), not Small. • This is an easy trap for those of us who grew up with the habit of writing “the JFIDM shall comply with the IEEE-488 interface specification.” • Some nonfunctional requirements fit this category. • Better: Make “colorful” (and other cross-cutting requirements) an acceptance criteria on each of the specific features in the backlog.37 Copyright ©2012 CollabNet, Inc. All Rights Reserved.
  • 38. Improve these User Stories 1. The website shall allow a user to register 2. The system shall allow a manager to reassign work from one employee to another 3. A customer can change their mailing address from the website 4. A tax payer can pay his/ her federal taxes online 5. A user can drag and drop a customer from one marketing group database to another38 Copyright ©2012 CollabNet, Inc. All Rights Reserved.
  • 39. Tasks User stories are often broken into tasks, the specific actions the team will perform to fulfill the story. User stories describe the “what” while tasks describe the “how”. For example: • “As a web customer, I want a way to make a payment online so I can make my payment the same day it is due.” – Task 1: build user interface – Task 2: build business logic layer – Task 3: connect UI and BL – Task 4: unit test new components – Task 5: code review – Task 6: test new components – Task 7: run regression tests39 Copyright ©2012 CollabNet, Inc. All Rights Reserved.
  • 40. Epics, Stories, Tasks… Are the items below epics, stories or tasks? (5 minute group exercise) 1. Create a report to track inventory levels by day, week and month 2. Add a feature to our timekeeping system to require overtime to be submitted for approval 3. Implement single sign-on 4. Test the AddNewCust component 5. Get developer Susan up to speed on how to use CollabNet TeamForge 6. Create a way to track client contract expiration dates40 Copyright ©2012 CollabNet, Inc. All Rights Reserved.
  • 41. User Stories and Story Points • Teams use a variety of methods to estimate stories: – T-shirt sizes (XS, S, M, L, XL, XXXL aka “epic”) – Fibonacci series style (i.e. – 1,2,3,5,8,13,21…) – 2x style (1,2,4,8,16, 32…) – Ideal days (not recommended: why?) • Teams’ estimates of user stories are often expressed as story points, a scale unique to each team • The average number of story points completed by a team each sprint is called the team’s Velocity41 Copyright ©2012 CollabNet, Inc. All Rights Reserved.
  • 42. Estimation Exercise Please estimate the size of the following items (absolute, not relative) Number of hairs on the average human head Number of known species of shark Average number of deaths recorded each year worldwide from snake bites Price paid in 1987 for the painting “Irises” by Vincent Van Gogh Rank of Dalmatians, in 2007, among most popular dog breeds registered by the AKC (out of 157 total breeds) Calculated amount in lost sales by Amazon.com per hour of site downtime (based on 2008 projections)42 Copyright ©2012 CollabNet, Inc. All Rights Reserved.
  • 43. Did you arrive at the right number? Please estimate the size of the following items ANSWER (absolute, not relative) Number of hairs on the average human head 150,000 Number of known species of shark 370 Average number of deaths recorded each year worldwide from 125,000 snake bites Price paid in 1987 for the painting “Irises” by Vincent Van Gogh $53.9 million Rank of Dalmatians, in 2007, among most popular dog breeds 77 registered by the AKC (out of 157 total breeds) Calculated amount in lost sales by Amazon.com per hour of site $1.8 million downtime (based on 2008 projections)43 Copyright ©2012 CollabNet, Inc. All Rights Reserved.
  • 44. Relative Estimation Group the following items by price into groups representing XS, S, M, L, XL: – 2010 Audi R8 – Calloway FT-iQ Driver Golf Club – One share of Berkshire Hathaway stock (NYSE: BRK-A) – Round trip ticket from LAX to Auckland, NZ – 3 nights for two (suite) at the Bellagio in Las Vegas, NV – Trek Madone 6.9 Carbon Fiber Bicycle – Eric Clapton Signature Stratocaster – One year’s (2008/09) tuition at Harvard University – Tiffany Jazz Diamond Platinum Bracelet – Beneteau (1985) 42’ sailboat44 Copyright ©2012 CollabNet, Inc. All Rights Reserved.
  • 45. Relative Estimation – Calloway FT-iQ Driver Golf Club – $299 – 3 nights for two (suite) at the Bellagio in Las Vegas, NV – $1100 – Round trip ticket from LAX to Auckland, NZ – $1,200 – Eric Clapton Signature Stratocaster – $3,078 – Trek Madone 6.9 Carbon Fiber Bicycle - $8,600 – Tiffany Jazz Diamond Platinum Bracelet – $14,000 – One year’s (2008/09) tuition at Harvard university – $32,557 – Beneteau (1985) 42’ Sailboat – $82,000 – One share of Berkshire Hathaway stock – $119,000 – 2010 Audi R8 – $137,00045 Copyright ©2012 CollabNet, Inc. All Rights Reserved.
  • 46. Why Relative Estimation Works • What is/are the biggest? • What is/are the smallest? • Does someone in the group have specialized knowledge about any item? • Can we group the remaining items into relative size groups?46 Copyright ©2012 CollabNet, Inc. All Rights Reserved.
  • 47. Why Relative Estimation Works • Humans are terrible at absolute estimation but quite good at relative estimation • It is generally faster – “What’s the use in being precise when you don’t even know what you’re talking about?” • It gets a team thinking (and talking) as a group, rather than as individuals (group effort vs. individual person-hours) • It encourages spending analysis time appropriately (analyzing and discussing)47 Copyright ©2012 CollabNet, Inc. All Rights Reserved.
  • 48. Business Weight • Relative business values associated to individual user stories • Can be used as a roll up with Epics for program management business48 Copyright ©2012 CollabNet, Inc. All Rights Reserved.
  • 49. All parts identified Create a complete user story that you may help you in doing your job tomorrow – Don’t forget to include: Business Weight Effort Estimation Acceptance Criteria Themes49 Copyright ©2012 CollabNet, Inc. All Rights Reserved.
  • 50. Who uses CollabNet?50 Copyright ©2012 CollabNet, Inc. All Rights Reserved.
  • 51. © 2012 CollabNet, Inc., All rights reserved. CollabNet is a Laszlo Szalvay trademark or registered trademark of CollabNet Inc., in the US VP Worldwide Scrum Business and other countries. All other trademarks, brand names, or Laz@collab.net product names belong to their respective holders. https://twitter.com/#!/ewok_bbq +1-971-506-7862 http://www.linkedin.com/in/laszloszalvay51 Copyright ©2012 CollabNet, Inc. All Rights Reserved.

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