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LeSS Introduction at Merkur Insurance

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JIPP.IT GmbH
Agile Change Agency
Neugasse 111
8200 Gleisdorf
Austria
+43 (0) 3112 90 3000
office@jipp.it
https://www.jipp.it
CASE STUDY
LeSS Introduction at Merkur Insurence
22 May 2019 © JIPP.IT GmbH
CONTEXT & CUSTOMER
• one of Austria’s largest insurance
companies
• Founded in 1798
• About 800 employees in total
• About 50 employees at Merkur IT
22 May 2019 © JIPP.IT GmbH 2
PRE-AGILE – HOW IT ALL BEGAN
• Start in 2012
• Replacement of a legacy system
• Framework chosen: Scrum
• First try with agile methods
• Single team
• Major change in their work habits
• Agility was not welcomed by
everyone
• First delivery after two weeks
• First major release after 6 months
• Complete replacement took two
years
• Successfully delivered!
22 May 2019 © JIPP.IT GmbH 3
WHAT NEXT?
• All 5 teams?
• Operations?
• Scaling?
• Service respectively product?
• What about the rest of the
organization?
22 May 2019 © JIPP.IT GmbH 4
PRE-LESS – PREPARATIONS
• Workshop: Head of IT & Head
of Software Development
• Risks
• Chances
• Stakeholders
• Processes
• Limitations
• Goals
• …
22 May 2019 © JIPP.IT GmbH 5
MAIN GOALS
• More flexibility
• More focus
• A common picture aka whole product focus
• A better way of prioritizing requirements aka one Product Backlog
• Better communication within and between teams, and other departments
in the larger organization to achieve the highest customer value
• Quality (as a more abstract definition)
• Also more responsibility of teams was mentioned, and more understanding of requirements in the
teams, but they were not identified as the main goals.
22 May 2019 © JIPP.IT GmbH 6

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LeSS Introduction at Merkur Insurance

  • 1. JIPP.IT GmbH Agile Change Agency Neugasse 111 8200 Gleisdorf Austria +43 (0) 3112 90 3000 office@jipp.it https://www.jipp.it CASE STUDY LeSS Introduction at Merkur Insurence 22 May 2019 © JIPP.IT GmbH
  • 2. CONTEXT & CUSTOMER • one of Austria’s largest insurance companies • Founded in 1798 • About 800 employees in total • About 50 employees at Merkur IT 22 May 2019 © JIPP.IT GmbH 2
  • 3. PRE-AGILE – HOW IT ALL BEGAN • Start in 2012 • Replacement of a legacy system • Framework chosen: Scrum • First try with agile methods • Single team • Major change in their work habits • Agility was not welcomed by everyone • First delivery after two weeks • First major release after 6 months • Complete replacement took two years • Successfully delivered! 22 May 2019 © JIPP.IT GmbH 3
  • 4. WHAT NEXT? • All 5 teams? • Operations? • Scaling? • Service respectively product? • What about the rest of the organization? 22 May 2019 © JIPP.IT GmbH 4
  • 5. PRE-LESS – PREPARATIONS • Workshop: Head of IT & Head of Software Development • Risks • Chances • Stakeholders • Processes • Limitations • Goals • … 22 May 2019 © JIPP.IT GmbH 5
  • 6. MAIN GOALS • More flexibility • More focus • A common picture aka whole product focus • A better way of prioritizing requirements aka one Product Backlog • Better communication within and between teams, and other departments in the larger organization to achieve the highest customer value • Quality (as a more abstract definition) • Also more responsibility of teams was mentioned, and more understanding of requirements in the teams, but they were not identified as the main goals. 22 May 2019 © JIPP.IT GmbH 6
  • 7. DECISIONS • Scaling • LeSS • “Only” software development – operations later • Selected inhouse-customers first • Some “old” processes need to remain 22 May 2019 © JIPP.IT GmbH 7
  • 8. PRODUCT / SERVICE DEFINITION One of the main responsibilities of Merkur IT is to ensure a trouble-free infrastructure, individual software development for the larger organization and support various heterogeneous applications needed to perform the daily business. 22 May 2019 © JIPP.IT GmbH 8
  • 9. PRE-LESS – DELAYS • Changes in some management functions had influence to the planned endeavor. • A rebranding campaign, from a typical insurance company, to a “Vorsicherung” (preventive medicine, and activities) was launched. This had potential impact to the product definition. • The market image was planned to be changed, to become more modern. More transparency, but it had to be decided what to make transparent. 22 May 2019 © JIPP.IT GmbH 9
  • 10. PRE-LESS SITUATION & ACTIVITIES • Fake Product Owner • Hired an external Product Owner • Formal LeSS and Scrum Training • Additional Delay due to changes at relevant positions 22 May 2019 © JIPP.IT GmbH 10
  • 11. ORGANISATIONAL STRUCTURE • Feature Team finding workshop • Collocation • Knowledge silos, and “independent” tasks for individuals slowing down team-building • Cross-team cooperation happened automatically • Better coordination across teams for better Increments 22 May 2019 © JIPP.IT GmbH 11
  • 12. ORGANIZATIONAL STRUCTURE 22 May 2019 © JIPP.IT GmbH 12 Head of IT Head of Development Group 1 Group 2 Head of Operations Group 3
  • 13. WHAT/HOW – THE PRODUCT • Update of Product Definition • What is the product? • Only one? • Are there many? • From which perspective? • Customer Centric Product Definition: IT-Innovation, software- and system-services for management and sales of Merkur insurance. • This shift was hard to grasp 22 May 2019 © JIPP.IT GmbH 13
  • 14. WHAT/HOW – PRODUCT OWNERSHIP • Why not having Requirement Areas? • Gatekeeper Gremium • PO interaction with stakeholder • Elimination of direct control of end-users/stakeholders over developers. • The approval process changed to an approval checklist. • The role of Project Managers changed to the role of clients. • The overview over all planned, or wanted endeavors improved significantly. 22 May 2019 © JIPP.IT GmbH 14
  • 15. THE CEREMONIES 22 May 2019 © JIPP.IT GmbH 15 Pull in order Facilitator Focus Areas Topic Focused + Alignment Team Retros Overall Retrospektives Overview session Details in Team Rooms Left to the team Team rooms Alignment
  • 16. PITFALLS – LESSONS LEARNED • Not “brave” enough in terms of transparency • Scrum Master assignment to teams • Transition from component to feature teams very difficult in this environment • Acceptance of new Product Owner difficult • Room situation hindered ceremonies 22 May 2019 © JIPP.IT GmbH 16
  • 17. COMPROMISES WE HAD TO LIVE WITH • Project Managers in the Merkur group • acting mainly as stakeholders and/or customers • some clarifying items and adding items to the Product Backlog • Gatekeeper Gremium for more global implications and escalations • IT Operations not fully integrated in the Feature Teams, yet 22 May 2019 © JIPP.IT GmbH 17
  • 18. THANK YOU JIPP.IT GmbH Agile Change Agency Neugasse 111 8200 Gleisdorf Austria +43 (0) 3112 90 3000 office@jipp.it https://www.jipp.it Christoph Schmied Certified LeSS Practitioner Tel.: +43 (0) 660 90 300 22 Email: christoph.schmied@jipp.it Web: www.jipp.it Twitter: @_SchmiedChris Dr. Wolfgang Richter Certified LeSS Trainer Tel.: +43 (0) 664 4423884 Email: wolfgang.richter@jipp.it Web: www.jipp.it Twitter: @woof0815