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Slide 1: YEAR OF LIVING DANGEROUSLY How Salesforce.com delivered Extraordinary Results through a “Big Bang” Enterprise Agile Revolution Scrum Gathering Conference, Chicago April 2008 Steve Greene | Chris Fry

Slide 4: History

Slide 5: 8 Age of Salesforce in years

Slide 6: from the beginning

Slide 7: 3 Number of people in R&D

Slide 8: smart fast innovative

Slide 9: 4 Number of Major Releases per year

Slide 10: 7 years later

Slide 11: rapid success

Slide 12: 41,000+ Customers

Slide 13: 1,000,000 Subscribers

Slide 14: 150 Million transactions per day

Slide 15: 200+ people in R&D

Slide 16: it was getting more difficult to deliver

Slide 17: Days between Major Releases Features Delivered per Team 2000 2001 2002 2003 2004 2005 2006

Slide 18: 1 Number of Major Releases in 2006

Slide 19: Yep, that’s it. (just one release all year)

Slide 20: Why?

Slide 21: Lack of visibility at all stages in the release Late feedback on features at the end of our release cycle

Slide 22: Long and unpredictable release schedules

Slide 23: Gradual productivity decline as the team grew

Slide 24: What did we do about it?

Slide 25: Major enterprise-wide Agile Transformation to ADM in just 3 months + another 12 months of continuous improvement

Slide 26: “ I knew we needed radical change to get us back on track to ” regular releases and agile delivered. Parker Harris Founder and Executive Vice President, Technology Salesforce.com

Slide 27: Transformation Results Features Delivered per Team Days between Major Releases 2000 2001 2002 2003 2004 2005 2006 2007

Slide 28: Agile Transformation Timeline “Agile Launch” Big Bang Rollout 144 146 148 150 152 154 October January April July October January April Rollout Adoption Excellence Expansion

Slide 29: Customers

Slide 30: Our customers are happy…

Slide 31: “ ADM has delivered total visibility, total transparency and unbelievable productivity… a complete win! ” Steve Fisher Sr. Vice President, Platform Division Salesforce.com

Slide 32: 152 150 On time delivery? 148 146 Last waterfall release 144

Slide 33: No really. Every agile release has been deployed on-time (down to the exact minute)

Slide 34: “ Since implementing our iterative development methodology which enables us to deliver more frequent releases, we have seen statistically significant improvements in our satisfactions scores across our service attributes from our features to our ” platform.   Wendy Close Salesforce Customer Satisfaction Survey Sr. Manager Product Marketing Salesforce.com (Source: Salesforce.com Relationship survey, conducted by independent third party CustomerSat Inc., July 07 and Feb. 08. Sample size equals 4000+ randomly selected worldwide respondents from all size companies and industry sectors.)

Slide 35: 94 % % of customers that indicate they definitely or probably will recommend salesforce.com to others * Source: Salesforce.com Relationship survey

Slide 36: +61 % improvement in “mean time to release” for major releases in 2007

Slide 37: Cumulative Value (features) delivered in Major Releases 2500 Cumulative Value (features) 2000 1500 2007 1000 500 2006 2007 0 Jan Feb 2006 Aug Sep Oct Nov Dec Mar Apr May Jun July Month 2006 2007 +568%

Slide 38: +94 % Increase in feature requests delivered - 2007 v. 2006

Slide 39: +38 % Increase in feature requests delivered per developer - 2007 v. 2006

Slide 40: Our teams are happier…

Slide 41: “ Simple is better.  With our agile approach to product development we've put our amazing people in charge.  T hey work as a team to do the right thing for the customers, their fellow employees and our shareholders. ” Todd McKinnon Sr. Vice President, Research & Development Salesforce.com

Slide 42: 92 % of respondents believe ADM is an effective approach for their scrum teams

Slide 43: 91 % of respondents believe the quality of our products have improved or stayed the same * 59% say our quality has improved

Slide 44: 86 % of respondents are having the “best time” or a “good time” at Salesforce * Improved from 40% 15 months ago

Slide 45: 92 % of respondents would recommend ADM to their colleagues inside or outside Salesforce

Slide 47: How’d we do it?

Slide 48: Launched organizational change program

Slide 49: Created a dedicated, cross- functional rollout team

Slide 50: Everyone jumped in together

Slide 51: Positioned as a return to our core values

Slide 52: KISS Listen to your Iterate customers

Slide 53: Distributed Ken Schwaber’s Agile book Developed 2-hour Agile overview

Slide 54: Sent 30 ScrumMasters to ScrumMaster Certification Sent 35 Product Managers to Product Owner Certification

Slide 55: Created weekly ScrumMaster and Product Owner forums

Slide 56: Created internal, wiki-based website as a reference for team members

Slide 57: Just get started. (the rest will come later)

Slide 58: Change isn’t easy. (get ready to be hated)

Slide 59: “Scrum doesn't account for the fact of the reality of the waterfall. You cannot deny this by superimposing scrum over it.” “Management is not proactive as we wait for decisions from management. Scrum gives me the feeling that Big Brother is watching and monitoring everything we do…” “It seems like we spend more time talking about scrum…than we spend time talking and working on salesforce.com.” “In many ways, scrum seems like an inflexible, bureaucratic process akin to something at the Department of Motor Vehicles.” “…ditch the stupid annoyingly dumb excel spreadsheet.”

Slide 60: They don’t like us. (and may never like us again)

Slide 61: Team is effective but productivity is lower “Stop trying to implement scrum, and look at how many releases we can really do in a year.” Lack of innovation. No innovation. I can't innovate. I am at the mercy of my product owner, who cares not for innovation, only the chirpings of customers... “We've managed to take a lightweight process and attach enough … to it to make it just as bad as our previous process, good job!” “Scrum does not meaningfully affect the team's effectiveness; it is structure and process that often distracts the team from their goal, and can be used to micromanage the team.” “The lingo is ridiculous”

Slide 62: But, they got over it.

Slide 63: And. Finally. The rollout is over! (but we’re not done)

Slide 64: Now for the later stuff.

Slide 65: Continuous Improvement “Agile Launch” Big Bang Rollout 144 146 148 150 152 154 October January April July October January April Rollout Adoption Excellence Expansion

Slide 66: Continuous Improvement PTOn System Testing Cross Team Impact Virtual Architecture “Agile Launch” Sustainable Velocity Big Bang Rollout Release Planning Release Management Dependencies Office Hours Open Space SoS Scrumforce October January April July October January April Rollout Adoption Excellence Expansion

Slide 67: Don’t be like us. (or what would we’d do differently)

Slide 68: Involve more individual contributors early

Slide 69: Train Product Owners earlier and with more intensity

Slide 70: Get outside coaching earlier

Slide 71: Give key executives concrete deliverables around the rollout

Slide 72: Be more clear about what the agile ‘rules’ are

Slide 73: Keys to success?

Slide 74: Ensure executive commitment to the change

Slide 75: Focus on principles over mechanics

Slide 76: Focus on getting several teams to excellence

Slide 77: Focus on automation

Slide 78: Code Coverage for Salesforce.com 85% 70.3% 75% 64.9% 26212 65% 16332 % of Coverage 2005 55% 2006 46.7% 2007 45% 5752 2008 31.1% 35% 2656 25% 2005 2006 2007 2008 2009 Year

Slide 80: Provide radical transparency

Slide 82: When the heat is on stick to your guns

Slide 83: We failed. (all along the way)

Slide 84: Experiment, be patient and expect to make mistakes

Slide 85: Don’t be afraid to change the entire company all at one time