An Agile Business Framework
                For Customer Driven Development

                                Paul Relf
   ...
Acknowledgements
                            For Tonights Presentation (Dec 8, 2009)




       http://finance.groups.yahoo...
Innovation is a New Way of Doing Something
               Incremental Or Radical




                            Waterfall...
Oh, the Possibilities...
                                  What if?

                                           x         ...
Oh, the Possibilities...
                                  What if?
            You could meet the market need on-
       ...
Oh, the Possibilities...
                                  What if?
            You could meet the market need on-
       ...
Oh, the Possibilities?

             How do we enable
             these possibilities?




Tuesday, December 8, 2009     ...
Oh, the Possibilities?

             How do we enable
             these possibilities?

                                 ...
Characteristics of
                ‘Innovation Centric Culture’
            Empowered Teams (Scrum Teams
            inclu...
Characteristics of
               ‘Lean Operational Model’
             Able to respond to Customers Real Needs
          ...
Kaizen Gets You Started And Keeps You Going!




                            Hiranabe http://tweetphoto.com/5793753



Tue...
Driving Business Agility and Velocity

                                                                                   ...
Driving Business Agility and Velocity

                                                                                   ...
It Starts With The Customer


       Rather than predicting
       where the market will
       be, deliver to the real
  ...
It Starts With The Customer


                                              More relevant software
       Rather than pred...
You Need To Get Close To Customers....




                                                               Customers Gemba
...
Customers want Capabilities NOT
                         Releases
                                                        ...
Build What The Customer Wants
                                                         (Features)

              Releases ...
Why Would You Need Releases Then?




Tuesday, December 8, 2009        14
Why Would You Need Releases Then?

                            What Cost $100,000 Per
                                   S...
Why Would You Need Releases Then?




Tuesday, December 8, 2009        14
Why Would You Need Releases Then?




                            Other Launch Examples?


Tuesday, December 8, 2009      ...
What is the Role of the
                         Release?




Tuesday, December 8, 2009                   15
What is the Role of the
                         Release?
            Ultimately, you need to decouple
            the Rel...
Other Challenges With
               Customer Driven Development
                I am building a volume product,
         ...
What Most of Us Know...
                   Lean techniques
                   mapped into software
                   deve...
Beyond Scrum, How Do You Complete
                   The Picture?




                            Thoughts? Ideas?

Tuesda...
The ‘Lean Operational Model’



          Prioritized           Desired
           Minimal              Product       Cust...
The ‘Lean Operational Model’



          Prioritized           Desired
           Minimal              Product       Cust...
The ‘Lean Operational Model’


                              Customer commitment
                            Pulls the req...
The ‘Lean Operational Model’



          Prioritized           Desired
           Minimal              Product       Cust...
The ‘Lean Operational Model’



          Prioritized           Desired
           Minimal              Product       Cust...
The ‘Lean Operational Model’


                                           Iterative


          Prioritized               ...
The ‘Lean Operational Model’


                                           Iterative


          Prioritized               ...
The ‘Lean Operational Model’


                                           Iterative


          Prioritized               ...
The ‘Lean Operational Model’


                                           Iterative


          Prioritized               ...
Release and Backlog
                                 Dynamics
               Tension or Peaceful
               Co-existen...
Release Planning / Prioritization
      Pareto Analysis keeps you focussed on the                                         ...
Attributing Business Value
                      During Planning...
         Agree on how to do it. There is no One or
   ...
Negotiate During Release
                               Execution
                                                        ...
Negotiate During Release
                               Execution
                                                        ...
Negotiate During Release
                               Execution
                                                        ...
Negotiate During Release
                               Execution
                                                        ...
Backlog Health is Critical To
                      Execution - Muda
                  Need a prioritized backlog of stori...
What About Downstream Operations?

                                           Iterative


           Prioritized          ...
What About Downstream Operations?

                                           Iterative


           Prioritized          ...
Key Takeaways
                               The Impossible is Possible
                         Create an Innovation Cent...
Key Takeaways
                               The Impossible is Possible
                         Create an Innovation Cent...
@achint_sandhu




                              Agility is not a
                            function of speed
Tuesday, D...
@achint_sandhu




                              Agility is a function of
                            preparedness for cha...
Creative Commons License

          This work is licensed under the Creative Commons
          Attribution-Noncommercial-S...
END




Tuesday, December 8, 2009         30
END
                            Or Beginning?



Tuesday, December 8, 2009                   30
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Agile Business Talk

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Presented at Agile Ottawa on December 8, 2009. This presentation provides a framework approach for implementing Agile Business with customer driven development. Key concepts include an Innovation Centric Culture with a Lean Operational Model surrounding Agile Scrum software development.

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Agile Business Talk

  1. 1. An Agile Business Framework For Customer Driven Development Paul Relf (Twitter: @Paul_Relf) AND Catherine Louis (Twitter: @catherinelouis) Tuesday, December 8, 2009 1
  2. 2. Acknowledgements For Tonights Presentation (Dec 8, 2009) http://finance.groups.yahoo.com/group/AgileBusiness/ Tuesday, December 8, 2009 2
  3. 3. Innovation is a New Way of Doing Something Incremental Or Radical Waterfall Development Limits Innovation By Removing the Freedom to Dream Tuesday, December 8, 2009 3
  4. 4. Oh, the Possibilities... What if? x z y x: dreamer y: coder z: applied innovation Tuesday, December 8, 2009 4
  5. 5. Oh, the Possibilities... What if? You could meet the market need on- demand? 100% of the software you developed was used? x z y You knew your customers business and technical needs as well as your own? Your productivity and quality was so high you could deliver a release every week? x: dreamer Your employee’s were happy and y: coder motivated to drive unprecedented levels z: applied innovation of productivity? Tuesday, December 8, 2009 4
  6. 6. Oh, the Possibilities... What if? You could meet the market need on- demand? 100% of the software you developed was used? x z y You knew your customers business and technical needs as well as your own? Your productivity and quality was so high you could deliver a release every week? x: dreamer Your employee’s were happy and y: coder motivated to drive unprecedented levels z: applied innovation of productivity? The Impossible can always be broken down into Possibilities - Anonymous Tuesday, December 8, 2009 4
  7. 7. Oh, the Possibilities? How do we enable these possibilities? Tuesday, December 8, 2009 5
  8. 8. Oh, the Possibilities? How do we enable these possibilities? With an ‘Innovation Centric Culture’ and a ‘Lean Operational Model’ Tuesday, December 8, 2009 5
  9. 9. Characteristics of ‘Innovation Centric Culture’ Empowered Teams (Scrum Teams include the Product Owner and sometimes the end customer) Safe environment to innovate; product, process, tools and GTM Balanced Ego No when to ‘Fail’ People / Relationship Centric (Collaboration and Communication) Environment to grow; journeymen, craftsman, master craftsman, level 3-4-5 leaders Tuesday, December 8, 2009 6
  10. 10. Characteristics of ‘Lean Operational Model’ Able to respond to Customers Real Needs and Market Dynamics (Competition, Technology, Regulation, Business Models) Based on Kaizen and the pursuit of excellence Able to Test The Market with new Ideas Identify Winners and Losers Quickly Minimize Risk and Upfront cost Acts with a Long Term Horizon Weather storms Basis of Values Tuesday, December 8, 2009 7
  11. 11. Kaizen Gets You Started And Keeps You Going! Hiranabe http://tweetphoto.com/5793753 Tuesday, December 8, 2009 8
  12. 12. Driving Business Agility and Velocity y Innovation Centric Culture t at ur i M Lean Operational Model Tuesday, December 8, 2009 9
  13. 13. Driving Business Agility and Velocity y Innovation Centric Culture t at ur i M Lean Operational Model Lets Explore the ‘Lean Operational Model’... Tuesday, December 8, 2009 9
  14. 14. It Starts With The Customer Rather than predicting where the market will be, deliver to the real market need using a “Customer Pull Model” Tuesday, December 8, 2009 10
  15. 15. It Starts With The Customer More relevant software Rather than predicting where the market will Timely delivery be, deliver to the real market need using a Faster Payback “Customer Pull Model” Happier Customers Less Waste Tuesday, December 8, 2009 10
  16. 16. You Need To Get Close To Customers.... Customers Gemba Your Gemba “In lean enterprises, traditional organizational structures give way to new team-oriented organizations which are centred on the flow of value, not on functional expertise.” Mary and Tom Poppendieck Tuesday, December 8, 2009 11
  17. 17. Customers want Capabilities NOT Releases “We have to delay the “If your product had XYZ release, because ABC is at risk and it would be perfect” it is for our most important customer” “If I don’t get ABC by September, then I will not meet “But if I can deliver XYZ my roll-out dead-line” now, then I can meet our revenue plan!” Tuesday, December 8, 2009 12
  18. 18. Build What The Customer Wants (Features) Releases are too big, and Stories are (often) too small Minimal Marketable Features become the basis of development and delivery Strive for Evenness - Muda Be careful not to offer too many options! CC - Flickr - cogdogbog “A minimal marketable feature is a chunk of functionality that delivers a subset of the customer’s  requirements, and that is capable of returning value to the customer when released as an independent entity” - M Denne & H Cleland-Huang Tuesday, December 8, 2009 13
  19. 19. Why Would You Need Releases Then? Tuesday, December 8, 2009 14
  20. 20. Why Would You Need Releases Then? What Cost $100,000 Per Second? Tuesday, December 8, 2009 14
  21. 21. Why Would You Need Releases Then? Tuesday, December 8, 2009 14
  22. 22. Why Would You Need Releases Then? Other Launch Examples? Tuesday, December 8, 2009 14
  23. 23. What is the Role of the Release? Tuesday, December 8, 2009 15
  24. 24. What is the Role of the Release? Ultimately, you need to decouple the Release activities from the the Development: Marketing Design Training, Knowledge Transfer Day 2 Support Channel Absorption Etc., etc. HOKUSAI'S GREAT WAVE “... set synchronization points based on experience and business need, and learning how to meet every deadline every time.” -- Mary Peppendieck (Dec 1, 2009) Tuesday, December 8, 2009 15
  25. 25. Other Challenges With Customer Driven Development I am building a volume product, how do I select the right lead customer(s)? How do I balance operational needs to deliver to the mass market? How do I manage commitments and communicate a road map? What are the implications on the release strategy? Marco Bellucci - Flickr / Creative Commons Tuesday, December 8, 2009 16
  26. 26. What Most of Us Know... Lean techniques mapped into software development opened up a whole new paradigm Agile, Scrum, Kanban, XP, tools, ... Tuesday, December 8, 2009 17
  27. 27. Beyond Scrum, How Do You Complete The Picture? Thoughts? Ideas? Tuesday, December 8, 2009 18
  28. 28. The ‘Lean Operational Model’ Prioritized Desired Minimal Product Customer Marketable (Product + Commitment Features Capabilities) Tuesday, December 8, 2009 19
  29. 29. The ‘Lean Operational Model’ Prioritized Desired Minimal Product Customer Marketable (Product + Commitment Features Capabilities) Tuesday, December 8, 2009 19
  30. 30. The ‘Lean Operational Model’ Customer commitment Pulls the required Content Prioritized Into Planning Desired Minimal Product Customer Marketable (Product + Commitment Features Capabilities) Tuesday, December 8, 2009 19
  31. 31. The ‘Lean Operational Model’ Prioritized Desired Minimal Product Customer Marketable (Product + Commitment Features Capabilities) Tuesday, December 8, 2009 19
  32. 32. The ‘Lean Operational Model’ Prioritized Desired Minimal Product Customer Marketable (Product + Commitment Features Capabilities) Tuesday, December 8, 2009 19
  33. 33. The ‘Lean Operational Model’ Iterative Prioritized Desired Prioritized Minimal Scrum Product Customer Backlog of Marketable Team (Product + Commitment User Stories Features Capabilities) Tuesday, December 8, 2009 19
  34. 34. The ‘Lean Operational Model’ Iterative Prioritized Desired Prioritized Minimal Scrum Product Customer Backlog of Marketable Team (Product + Commitment User Stories Features Capabilities) Tuesday, December 8, 2009 19
  35. 35. The ‘Lean Operational Model’ Iterative Prioritized Desired Prioritized Minimal Scrum Product Customer Backlog of Marketable Team (Product + Commitment User Stories Features Capabilities) Beta Trials Tuesday, December 8, 2009 19
  36. 36. The ‘Lean Operational Model’ Iterative Prioritized Desired Prioritized Minimal Scrum Product Customer Backlog of Marketable Team (Product + Commitment User Stories Features Capabilities) Beta Trials Tuesday, December 8, 2009 19
  37. 37. Release and Backlog Dynamics Tension or Peaceful Co-existence? Two Parts Planning Execution Tuesday, December 8, 2009 20
  38. 38. Release Planning / Prioritization Pareto Analysis keeps you focussed on the Release 1 right things (top 20%). Do at; (Every 2 months) l Minima ble l Minima ble Portfolio l Marketa Marketa Minima ble Feature User User User eature Marketa User Story Story F User Featu re User Story Story Story Story Product l l Minima ble Minima ble l Marketa Marketa User Minima ble Feature User User Story Feature User User Story Story Marketa Feature Release Story Story User Story Feature Marketa l Minima ble l Minima ble Marketa l Minima ble Fea ture User Fea ture User Marketa ture User Story Story Fea User Story Story and Story Level l Minima ble Marketa l Minima ble A Set of MMF’s becomes the candidate Feature User Story User Story User Story User Story Marketa Feature User Story content for the release Release plans should be negotiated 1 2 3 4 5 6 7 8 9 10 Sprint Prioritization is only one input into scheduling and assignment of feature content Tuesday, December 8, 2009 21
  39. 39. Attributing Business Value During Planning... Agree on how to do it. There is no One or Right Way Use Pareto Rule at each level (portfolio, project, release, feature, and story) Somewhat easier to ‘Estimate’ monetary value of features, however very difficult to attribute value to individual user stores. Relative Business Value is about doing the most important thing first - Don’t worry about being precise or concrete Be careful to not starve innovation when solely taking on content at the top of the backlog Tuesday, December 8, 2009 22
  40. 40. Negotiate During Release Execution Release While the Release is running, MMF’s become WIP im al Minketa ble Mar ure Feat Unfinished features are User User User considered to be waste Storyser U Story Storyser U Story Storyser U Story You can still be Agile with content adjustments, but if the Scrum EPIC User User content doesn’t fit in the Team 2 Story Story release, then do not allow it in. Re-scope Scrum EPIC User User Story Story Team 3 Punt (hold to Beta) Add more people 1 2 3 4 Minimize Pre-release Work Sprint Tuesday, December 8, 2009 23
  41. 41. Negotiate During Release Execution Release While the Release is running, MMF’s become WIP im al Minketa ble Mar ure Feat Unfinished features are User er User considered to be waste Us Storyser er Storys UU Storyser U Storyry Sto Story You can still be Agile with content adjustments, but if the Scrum EPIC User User content doesn’t fit in the Team 2 Story Story release, then do not allow it in. Re-scope Scrum EPIC User User Story Story Team 3 Punt (hold to Beta) Add more people 1 2 3 4 Minimize Pre-release Work Sprint Tuesday, December 8, 2009 23
  42. 42. Negotiate During Release Execution Release While the Release is running, MMF’s become WIP im al Minketa ble Mar ure Feat Unfinished features are User er User considered to be waste Us Storyser er Storys UU Storyser U Storyry Sto Story You can still be Agile with content adjustments, but if the Scrum EPIC User User content doesn’t fit in the Team 2 Story Story release, then do not allow it in. Re-scope Scrum EPIC User User Story Story Team 3 Punt (hold to Beta) Add more people 1 2 3 4 Minimize Pre-release Work Sprint Tuesday, December 8, 2009 23
  43. 43. Negotiate During Release Execution Release While the Release is running, MMF’s become WIP im al Minketa ble Mar ure Feat Unfinished features are User er User considered to be waste Us Storyser er Storys UU Storyser U Storyry Sto Story You can still be Agile with content adjustments, but if the Scrum EPIC User User content doesn’t fit in the Team 2 Story Story release, then do not allow it in. Re-scope Scrum EPIC User User Story Story Team 3 Punt (hold to Beta) Add more people 1 2 3 4 Minimize Pre-release Work Sprint Tuesday, December 8, 2009 23
  44. 44. Backlog Health is Critical To Execution - Muda Need a prioritized backlog of stories Can not assume how to write good user stories Each story should stand-alone (potentially shippable) Difficult to move from non- functional to vertically sliced stories (I/O, options, role, Spike, Stub, etc.) Ask what can you get done Use “enabling specifications” Tuesday, December 8, 2009 24
  45. 45. What About Downstream Operations? Iterative Prioritized Desired Prioritized Minimal Scrum Product Customer Backlog of Marketable Team (Product + Commitment User Stories Features Capabilities) Beta Trials Tuesday, December 8, 2009 25
  46. 46. What About Downstream Operations? Iterative Prioritized Desired Prioritized Minimal Scrum Product Customer Backlog of Marketable Team (Product + Commitment User Stories Features Capabilities) Beta Trials Will Value Stream Mapping and Kaizen Work? Tuesday, December 8, 2009 25
  47. 47. Key Takeaways The Impossible is Possible Create an Innovation Centric Culture Use a Lean Operational Model Value is Created at the Customers Gemba Customers Buy Features ‘Agile Business Framework’ can leverage Scrum Tuesday, December 8, 2009 26
  48. 48. Key Takeaways The Impossible is Possible Create an Innovation Centric Culture Use a Lean Operational Model Value is Created at the Customers Gemba Customers Buy Features ‘Agile Business Framework’ can leverage Scrum And Remember... Tuesday, December 8, 2009 26
  49. 49. @achint_sandhu Agility is not a function of speed Tuesday, December 8, 2009 27
  50. 50. @achint_sandhu Agility is a function of preparedness for change Tuesday, December 8, 2009 28
  51. 51. Creative Commons License This work is licensed under the Creative Commons Attribution-Noncommercial-Share Alike 3.0 United States License. To view a copy of this license, visit http://creativecommons.org/licenses/by-nc-sa/3.0/us/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA. Tuesday, December 8, 2009 29
  52. 52. END Tuesday, December 8, 2009 30
  53. 53. END Or Beginning? Tuesday, December 8, 2009 30
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