Presentation given at AgileDC on Oct 15, 2018

1. © 2018 Fannie Mae Trademarks of Fannie Mae
For Lasting Change, Take an Agile Approach to Your
Agile Transformation Office
David McMunn
Dan Craig

2. © 2016 Fannie Mae. Trademarks of Fannie Mae. 210/23/2018 © 2018 Fannie Mae Trademarks of Fannie Mae
David McMunn is an executive experienced in leading organizations through large-
scale business improvement transformations. His most recent role was as the Director
of an Agile Center of Excellence where he led the organizational transformation to agile
over the last three years. Dave’s experience focuses on organizational change
management and implementing lean management concepts both within the business
and technology organizations. Dave has over 20 years of experience in Agile adoption
and execution.
Your Presenters…
Dan Craig is the Director of the Fannie Mae Agile Center of Excellence. With over 20
years of experience directing business and technical project teams in structured
corporate and dynamic start-up environments. Dan has a proven track record of
strategic planning and tactical execution of large-scale agile and DevOps
transformations in both the public and private sectors. Past transformations include a
diverse group including Fannie Mae, the US Defense Department (DoD), and the
Patent and Trademark Office (USPTO).

3. © 2016 Fannie Mae. Trademarks of Fannie Mae. 310/23/2018 © 2018 Fannie Mae Trademarks of Fannie Mae
Large scale transformation is hard
Organizational Structure / Silos
Governance
Budgeting / Finance
Contracted Labor
Facilities
Metrics / Reporting
EPMO Processes
Scaling
Cross-Organizational Dependencies
Employee Management
Mixed Incentives for individuals
Traditional Command and Control Mindset
Technical Skills Gap
At the
TEAM
At the
PROGRAM
At the
ENTERPRISE

4. © 2016 Fannie Mae. Trademarks of Fannie Mae. 410/23/2018 © 2018 Fannie Mae Trademarks of Fannie Mae
Change strategy guides how you build supporting organization
Enterprise Driven Organically Created
Spectrum of Ownership & Control
Pros
• Recognizable Structure
• Dogma reduces variance
• Management buy-in up-front
• Controlled Rollout Strategy
• Consistent Reporting
Cons
• Old Patterns / Mindsets
• Focus on “How” vs. “Why”
• Limits Innovation
• Only Change Enough to Meet Model
Pros
• Emphasizes Values & Principles
• Empowers Teams & Individuals
• Encourages Experimentation
• Allows Localized Optimizations
• Fosters Earlier Momentum
Cons
• Breaks Working Processes
• Frustrates People
• Harder to Prove ROI
• Management Transparency

5. © 2016 Fannie Mae. Trademarks of Fannie Mae. 510/23/2018 © 2018 Fannie Mae Trademarks of Fannie Mae
COE Balances Mandate vs. Evolution
Enterprise Driven
• Coach & Scrum Master Placement
• Tooling
• Training
• Adoption/Maturation Metrics
• Corporate Ecosystem
Organically Created
• Standards & Processes
• Delivery Metrics
• Scale
• Lean Management
• Product Management*
What was the approach Fannie Mae took to delivery of its services?

6. © 2016 Fannie Mae. Trademarks of Fannie Mae. 610/23/2018 © 2018 Fannie Mae Trademarks of Fannie Mae
Balancing Mandate vs. Evolution
Portfolio’s own their transformation…
• Determine pace and timing of rollout
• Changing mindset within the portfolio
• Investing in skill building
• Removing barriers
• Investing in technical tools and practices (e.g., CI/CD)
• Delivery!
…the COE establishes “guard rails”

7. © 2016 Fannie Mae. Trademarks of Fannie Mae. 710/23/2018 © 2018 Fannie Mae Trademarks of Fannie Mae
COE Products and Services
Agile Center
of Excellence
(COE)
Training &
Coaching
Business
Agility
Skill
Building
Empowerment
&
Community
Standards
&
Practices
Metrics &
Reporting

8. © 2016 Fannie Mae. Trademarks of Fannie Mae. 810/23/2018 © 2018 Fannie Mae Trademarks of Fannie Mae
Implement Transformation Strategy
Agile Center
of Excellence
(COE)
Training &
Coaching
Business
Agility
Skill
Building
Empowerment
&
Community
Standards
&
Practices
Metrics &
Reporting
Primary Focus Areas
• Metrics around “Adoption”
o Agile Teams
o Agile Release %
• Agile “Evangelization”
• Ad Hoc Agile Consultation
• Training
• Placement of Coaches
• Delivery Metrics
• Reporting Standards
• Agile Tooling

9. © 2016 Fannie Mae. Trademarks of Fannie Mae. 910/23/2018 © 2018 Fannie Mae Trademarks of Fannie Mae
Moving from Organically Created to Enterprise Driven
Agile Center
of Excellence
(COE)
Training &
Coaching
Business
Agility
Skill
Building
Empowerment
&
Community
Standards
&
Practices
Metrics &
Reporting
Primary Focus Areas
• Metrics around “Maturity”
o Self-Assessment
o Technical Practices
• Reporting Standards
• Best Practices
• Scaling Frameworks
• Formation of CoPs
• Role Based Self-
Assessments
• Staff Rotations

10. © 2016 Fannie Mae. Trademarks of Fannie Mae. 1010/23/2018 © 2018 Fannie Mae Trademarks of Fannie Mae
Pivot from a COE to an ATO
Agile
Transformation
Office
(ATO)
Training &
Coaching
Business
Agility
Skill
Building
Empowerment
&
Community
Standards
&
Practices
Metrics &
Reporting
• Role Based Self-Assessments
• Staff Rotations
• Agile Playbook
• Gamified Learning
Primary Focus Areas
• Metrics around “Outcomes”
o Time to Market
o Production Quality
• Product Management
o Customer Interaction/Analytics
o Marketing
o Design
• Enabling Organizations
o Finance
o Human Resources (HR)
o Governance/SDLC
o Facilities

11. © 2016 Fannie Mae. Trademarks of Fannie Mae. 1110/23/2018 © 2018 Fannie Mae Trademarks of Fannie Mae
COE Communication Channels
Fannie Mae
Agile Center of Excellence
Fannie Mae
Business Portfolios
SFCapitalMarkets
SFFrontEnd
SFSecuritization
MultiFamily
EnterpriseData
Others
1.
Coaches and Scrum
Masters
2.
Communities
of Practice
3.
Portfolio
Transformation
Teams
Agile Center
of Excellence
(COE)
Training &
Coaching
Business
Agility
Skill
Building
Empowerme
nt &
Community
Standards
&
Practices
Metrics &
Reporting

12. © 2016 Fannie Mae. Trademarks of Fannie Mae. 1210/23/2018 © 2018 Fannie Mae Trademarks of Fannie Mae
The Results
215
Agile Teams
1.5 Months
Average Release
Frequency
86%
Employee Satisfaction
(ESAT)
90th Percentile
Customer Satisfaction
(CSAT)
92%
Agile Release
Percentage

13. © 2016 Fannie Mae. Trademarks of Fannie Mae. 1310/23/2018 © 2018 Fannie Mae Trademarks of Fannie Mae
The Benefits…and Costs!
• Teams are delivering by mindset
• Continuous improvement culture
• Culture of innovation
• Leaner organization
• Ecosystem matures with teams
• Buy-In to standards & practices
• True business engagement
• Sustained momentum
• Highlighted actual organizational
impediments
• Requires unwinding of bad processes /
practices
• Effort to cross-pollinate good practices
• Portfolios are at different points in their
respective journeys and potentially gating
each other
• Scaling conflicts between portfolios
• Frustration by staff accustomed to always
being told the answer
• Centralized functions are struggling to
engage and support (Audit, HR, EPMO)
Benefits Realized Costs Accepted

14. © 2016 Fannie Mae. Trademarks of Fannie Mae. 1410/23/2018 © 2018 Fannie Mae Trademarks of Fannie Mae
Parting Thoughts
Get explicit on your guiding principles and approach
• Portfolios must own their own transformation
• COE exists to guide; Lead through influence not edict
Plan ahead, but expect change
• Think of your transformation in quarters and half-years
• Constantly challenge operating assumptions and adjust tactics accordingly
Keep leadership engaged; not just informed
• Make them own the problem and help them mechanically to do it.
• Set metrics to drive demand and guardrails to guide the wave of demand
Stay small
• Don’t grow to the point where you have to defend your existence
• Customer Satisfaction / Intuition should show your value

15. © 2018 Fannie Mae Trademarks of Fannie Mae
THANK YOU!