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1Copyright © 2007 - 2018, Innolution, LLC. All Rights Reserved.
Agile Transition Lessons
That Address Practical Questions
Bucharest Agile Software Meetup
April 25, 2018
by Ken Rubin
@krubinagile
2
1980’s 1990’s 2000’s 2010’s
Ken Rubin Overview
Trained > 26,000 people
Coached >100 companies
Worked with 9
startup companies
1st Scrum Project
1st Managing
Director
3
Essential Scrum in Ten Languages
Copyright © 2007 - 2018, Innolution, LLC. All Rights Reserved.
Japanese
Traditional
Chinese
Polish
German
Russian
French
Brazilian
Portuguese
English
Korean
Simplified
Chinese
4Copyright © 2007 - 2018, Innolution, LLC. All Rights Reserved.
Agenda
Agile
Approach to
Transitioning
Role of
Training and
Coaching
Traditional
Approach to
Transitioning
Agile Mindset
First
Leveraging
Existing
Scaling
Frameworks
Restructuring
Teams for
Flow
Scope of
Transition
Measuring the
Transition
5Copyright © 2007 - 2018, Innolution, LLC. All Rights Reserved.
Traditional
Approach to
Transitioning
6
Agile is a Journey Not a Destination
Copyright © 2007 - 2018, Innolution, LLC. All Rights Reserved.
7
Using Agile, We Don’t Believe We Can
Get the Requirements Right Up Front
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8
“Traditional” Transition Approach
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9Copyright © 2007 - 2018, Innolution, LLC. All Rights Reserved.
Agile Approach
to Transitioning
10
No details “Complete” detailsContinuum of details
Continuum of Transitioning Detail
We’re not going to do
any upfront transition
planning. Just get
started and we’ll just
figure it out
Create the
complete,
accurate, written
transition plan
before we start
Copyright © 2007 - 2018, Innolution, LLC. All Rights Reserved.
11
Upfront Transition Planning Should
be Helpful without Being Excessive
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12
Agile Principles Provide the
Foundation for the Transition
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Agile principles provide the foundation for
transitioning to agile!
13
Comparison of Traditional vs. Agile
Transition Approaches
Copyright © 2007 - 2018, Innolution, LLC. All Rights Reserved.
Means Uncertainty
EndsUncertainty
High Low
Low
Means Uncertainty
EndsUncertainty
High Low
Low
How will we
get there?
What will it
look like when
we arrive?
“Traditional” Transition “Agile” Transition
14
Executive-level Scrum Team
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Executive change /
impediment backlog
15
Iterating Towards Agility
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16
Managing Transition Issues with a
Kanban System
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Engage Execute Done
DE
F
B
C
A
Backlog
G
Verify
H
I
j
17
Many Agile Transition Frameworks
Copyright © 2007 - 2018, Innolution, LLC. All Rights Reserved.
18Copyright © 2007 - 2018, Innolution, LLC. All Rights Reserved.
Leveraging
Existing Scaling
Frameworks
19
Some Companies Equate “Agile Transition”
to Adopting a Scaling Framework
Copyright © 2007 - 2018, Innolution, LLC. All Rights Reserved.
20
SAFe Implementation Framework
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21
Many Companies Create Their Own
Company-Specific Agile Framework
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It is sensible to review and at least consider starting
with one or more existing scaling frameworks
Mine the frameworks for the elements that you feel
would be a good starting point for our organization
Create first pass of your company’s agile framework
Continuously inspect and adapt your company’s agile
framework based on real experience
22
LEGO Example
(SAFe Customization)
Copyright © 2007 - 2018, Innolution, LLC. All Rights Reserved.
Used SAFe as “launchpad,” but adopted less than 20% of
framework
Framework contains way to much details for LEGO needs
Framework is optimized for a bunch of teams working on
ONE product, while LEGO teams work on a number of
different products and services
For each program increment LEGO customized and
tweaked the process, adding needed elements and
removing elements that weren’t adding value
Main value add was big-room planning (program
increment planning)
23Copyright © 2007 - 2018, Innolution, LLC. All Rights Reserved.
Scope of
Transition
24
Not “Selling” or “Convincing” a
Company to Transition to Agile
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Assuming a company has already substantially decided to
use agile
25
Do Agile in the Small before Agile
in the Large
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If you can’t do small-scale agile, you
should have no confidence you can do
large-scale agile
26
So, the Company Could (Should) Already
Be Doing Agile On a Smaller Scale
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27
Most Companies Focus Their
Transition Effort on Dev / IT
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28
Need to Determine How Broad to
Focus in Dev / IT?
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All of Dev / IT
Particular Department
Specific Product
Development Value Stream
29
Not Involving Other Departments In
Transition Can Cause Misalignment
Throughout the Value Chain
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We want fixed-date,
budget, & scope
We write contracts to shift
risk to other party
We need well-defined,
legally defensible annual
performance assessmentsWe need an annual budget
that pre-allocates every $ to
be spent
We need to know the complete
feature set and delivery date
upfront so we can plan
We build things our own way,
we’ll get you the finished
stuff when it’s done
We push work into
the system as fast as
we can
We’re AGILE!
We release according
to our own schedule
30
Departments Outside of IT Using
Scrum
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2015 Scrum Alliance State of Scrum Report
31
Tension Due to Misalignment
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2015 Scrum Alliance State of Scrum Report
32Copyright © 2007 - 2018, Innolution, LLC. All Rights Reserved.
Agile Mindset
First
33
Agile Adoption
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First focus on adopting agile mindset
Second focus on adopting agile practices
Avoid cargo-cult adoption
34
US Airdrops and Cargo Staging
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35
Cargo Cult
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36
Cargo Cult Issues…
Copyright © 2007 - 2018, Innolution, LLC. All Rights Reserved.
Imitating actions alone produces desired results
Correlation implies causation
Process is more important than core principles
No need to know the foundational “why”
37
Agile Principles Provide Context
for Inspecting & Adapting
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People who apply Agile without understanding its
underlying principles lack the necessary context to
understand why they are doing things and when and
how best to inspect and adapt their approaches
38Copyright © 2007 - 2018, Innolution, LLC. All Rights Reserved.
Role of
Training and
Coaching
39
Importance of Training and
Coaching
Copyright © 2007 - 2018, Innolution, LLC. All Rights Reserved.
Agile training and coaching are critical
success factors in an agile transition
effort!
40
Internal stakeholders
Internal Coaches
Teams
Agile Training – Who to Involve
and Timing (An Example)
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Time
DecisiontoAdoptatScale
Internal stakeholders
Internal Coaches
Teams
Pilot Teams
Managers
41
Internal vs. External Trainers
Copyright © 2007 - 2018, Innolution, LLC. All Rights Reserved.
Initial training is almost always provided by
outside trainers
Good idea to leverage the training expertise of
people who do this for a living
Over time, some (or all) of the training can
transition to internal trainers
Internal trainers might participate in a train-the-
trainers program with external trainers
42
Internal vs. External Coaches
Copyright © 2007 - 2018, Innolution, LLC. All Rights Reserved.
On large transitions it would be foolish to not
leverage a battle-proven external coach
You want to leverage the expertise of someone
who has assisted a number of different companies
with their agile adoptions
Given the scale that most companies want to
embrace agile, they will need to have internal
coaches as well
43
Internal Coach the Coaches
Program
Copyright © 2007 - 2018, Innolution, LLC. All Rights Reserved.
1. Candidate internal coaches receive agile training
Set up an internal program to assist employees in
becoming agile coaches
2. External coaches initially provide the transition and team
coaching while internal coaches act as apprentices
3. After an appropriate apprentice period, candidate coaches
become internal coaches and external coaches observe
and provide next-level issue backup
4. Experienced internal coaches acts as mentors to the next
wave of candidate coaches
5. External coaches are weaned out
44
Companies Dislike This Dialog with
Their External Coach!
Copyright © 2007 - 2018, Innolution, LLC. All Rights Reserved.
What do you think about X?
X is really important
How should we proceed with X?
There are 3 ways to proceed, which would
you like to do? I’ll support whichever you prefer
I don’t know, that’s why I’m paying you!
45Copyright © 2007 - 2018, Innolution, LLC. All Rights Reserved.
Restructuring
Teams for Flow
46
Component teams
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Example component: Routing algorithms
(component) inside of a GPS
47
Feature teams
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48
Example – Typical Large Company
with Many Component Teams
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49
Creating Staggering Dependencies
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50
Each Team Has Multiple Competing
Requests in Its Product Backlog
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51
Where Teams Deal with Competing
Priorities
Do my stuff!
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52
Leading to Team Misalignment
We’re
ready
now!
Okay,
now
we’re
ready!
Finally,
we’re
ready!
Time
Copyright © 2007 - 2018, Innolution, LLC. All Rights Reserved.
53
And the Accrual of Economically
Damaging Inventory
This is all
inventory
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54
Consequences of Relying on Too
Many Component Teams
Copyright © 2007 - 2018, Innolution, LLC. All Rights Reserved.
Organizations that relies heavily on
components could have idle work up to
90% or more of the time!
55
Want to Structure Teams to Achieve Fast,
Flexible, and Economically Sensible Flow
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56
Issue – Organizational Resistance
Copyright © 2007 - 2018, Innolution, LLC. All Rights Reserved.
Interferes with
fiefdoms
Too hard to
reorganize into
feature teams
A general belief
that feature teams
will lead to
significant
technical debt
57
Example Company –
Many Component Teams
Copyright © 2007 - 2018, Innolution, LLC. All Rights Reserved.
Geo 1
Geo 2
Geo 3
Geo 4
Geo 5
Geo 6
10 teams
2 teams
2 teams
5 teams
8 teams
1 team
20 teams 25 teams 15 teams
58
Example Issues Impeding
Immediate Team Restructuring
Copyright © 2007 - 2018, Innolution, LLC. All Rights Reserved.
Team as currently structured are responsible for
getting in-flight releases out the door
Making significant team-structure changes early on
is considered risky from a cultural perspective
Not enough information to know what is the
“proper” team structure
59Copyright © 2007 - 2018, Innolution, LLC. All Rights Reserved.
Measuring the
Transition
60
Quantifying Agile Transition Costs
Copyright © 2007 - 2018, Innolution, LLC. All Rights Reserved.
How much will the agile transition cost?
For some companies, naively the bottom-line
number in the response to an RFP!
Cost of training Cost of coaching
Cost of (re)tooling
But there are many other costs…
E.g., cost of organizational restructuring
61
Measuring Agile Transition
Success – the Right Way
Copyright © 2007 - 2018, Innolution, LLC. All Rights Reserved.
Which is more compelling?
A company that increased its velocity by 400%
after adopting agile, or
A company that increased its share price by
40% after adopting agile
62
Output vs. Outcome Measures
Copyright © 2007 - 2018, Innolution, LLC. All Rights Reserved.
Outputs measure “what we do or produce”
Outcomes measure “what difference we make or
the value we create”
E.g., velocity, throughput, cycle time, utilization, #
of widgets created, # of hamburgers server, # of
clients served
E.g., net promoter score, profitability, delighted
customers, % reduction in malaria infections
63
Applicability of Agile Output
Measures
Copyright © 2007 - 2018, Innolution, LLC. All Rights Reserved.
If we double velocity, it implies we get twice the work
done in the same amount of time
If we get twice the work done in half the time, then we
increased velocity by 400%
Maximizing output could have little correlation with
delivering products or services that delight customers
Producing more output could contradict a core Agile
Manifesto principle: “Simplicity — the art of maximizing
the amount of work not done…”
From an economics perspective, minimizing output
while maximizing outcome (value to customer) is more
favorable
64
How Success is Measured with
Agile Initiatives
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65
How Success is Measured on a
Day-to-Day Basis
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66
Measuring Agility (Using
Comparative Agility as an Example)
Copyright © 2007 - 2018, Innolution, LLC. All Rights Reserved.
67
Correlating Agile Measures with
Business Outcome Measures
Copyright © 2007 - 2018, Innolution, LLC. All Rights Reserved.
Correlations
Outcome Measures
68Copyright © 2007 - 2018, Innolution, LLC. All Rights Reserved.
Contact Info for Ken Rubin
Email: krubin@innolution.com
Website: www.innolution.com
Phone: (303) 827-3333
LinkedIn: www.linkedin.com/in/kennethrubin
Twitter: www.twitter.com/krubinagile
Facebook: www.facebook.com/InnolutionLLC
Google+ plus.google.com/+KennyRubin1/
Essential Scrum: A Practical
Guide to the Most Popular
Agile Process
www.essentialscrum.com

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Agile Transition Lessons That Address Practical Questions

  • 1. 1Copyright © 2007 - 2018, Innolution, LLC. All Rights Reserved. Agile Transition Lessons That Address Practical Questions Bucharest Agile Software Meetup April 25, 2018 by Ken Rubin @krubinagile 2 1980’s 1990’s 2000’s 2010’s Ken Rubin Overview Trained > 26,000 people Coached >100 companies Worked with 9 startup companies 1st Scrum Project 1st Managing Director
  • 2. 3 Essential Scrum in Ten Languages Copyright © 2007 - 2018, Innolution, LLC. All Rights Reserved. Japanese Traditional Chinese Polish German Russian French Brazilian Portuguese English Korean Simplified Chinese 4Copyright © 2007 - 2018, Innolution, LLC. All Rights Reserved. Agenda Agile Approach to Transitioning Role of Training and Coaching Traditional Approach to Transitioning Agile Mindset First Leveraging Existing Scaling Frameworks Restructuring Teams for Flow Scope of Transition Measuring the Transition
  • 3. 5Copyright © 2007 - 2018, Innolution, LLC. All Rights Reserved. Traditional Approach to Transitioning 6 Agile is a Journey Not a Destination Copyright © 2007 - 2018, Innolution, LLC. All Rights Reserved.
  • 4. 7 Using Agile, We Don’t Believe We Can Get the Requirements Right Up Front Copyright © 2007 - 2018, Innolution, LLC. All Rights Reserved. 8 “Traditional” Transition Approach Copyright © 2007 - 2018, Innolution, LLC. All Rights Reserved.
  • 5. 9Copyright © 2007 - 2018, Innolution, LLC. All Rights Reserved. Agile Approach to Transitioning 10 No details “Complete” detailsContinuum of details Continuum of Transitioning Detail We’re not going to do any upfront transition planning. Just get started and we’ll just figure it out Create the complete, accurate, written transition plan before we start Copyright © 2007 - 2018, Innolution, LLC. All Rights Reserved.
  • 6. 11 Upfront Transition Planning Should be Helpful without Being Excessive Copyright © 2007 - 2018, Innolution, LLC. All Rights Reserved. 12 Agile Principles Provide the Foundation for the Transition Copyright © 2007 - 2018, Innolution, LLC. All Rights Reserved. Agile principles provide the foundation for transitioning to agile!
  • 7. 13 Comparison of Traditional vs. Agile Transition Approaches Copyright © 2007 - 2018, Innolution, LLC. All Rights Reserved. Means Uncertainty EndsUncertainty High Low Low Means Uncertainty EndsUncertainty High Low Low How will we get there? What will it look like when we arrive? “Traditional” Transition “Agile” Transition 14 Executive-level Scrum Team Copyright © 2007 - 2018, Innolution, LLC. All Rights Reserved. Executive change / impediment backlog
  • 8. 15 Iterating Towards Agility Copyright © 2007 - 2018, Innolution, LLC. All Rights Reserved. 16 Managing Transition Issues with a Kanban System Copyright © 2007 - 2018, Innolution, LLC. All Rights Reserved. Engage Execute Done DE F B C A Backlog G Verify H I j
  • 9. 17 Many Agile Transition Frameworks Copyright © 2007 - 2018, Innolution, LLC. All Rights Reserved. 18Copyright © 2007 - 2018, Innolution, LLC. All Rights Reserved. Leveraging Existing Scaling Frameworks
  • 10. 19 Some Companies Equate “Agile Transition” to Adopting a Scaling Framework Copyright © 2007 - 2018, Innolution, LLC. All Rights Reserved. 20 SAFe Implementation Framework Copyright © 2007 - 2018, Innolution, LLC. All Rights Reserved.
  • 11. 21 Many Companies Create Their Own Company-Specific Agile Framework Copyright © 2007 - 2018, Innolution, LLC. All Rights Reserved. It is sensible to review and at least consider starting with one or more existing scaling frameworks Mine the frameworks for the elements that you feel would be a good starting point for our organization Create first pass of your company’s agile framework Continuously inspect and adapt your company’s agile framework based on real experience 22 LEGO Example (SAFe Customization) Copyright © 2007 - 2018, Innolution, LLC. All Rights Reserved. Used SAFe as “launchpad,” but adopted less than 20% of framework Framework contains way to much details for LEGO needs Framework is optimized for a bunch of teams working on ONE product, while LEGO teams work on a number of different products and services For each program increment LEGO customized and tweaked the process, adding needed elements and removing elements that weren’t adding value Main value add was big-room planning (program increment planning)
  • 12. 23Copyright © 2007 - 2018, Innolution, LLC. All Rights Reserved. Scope of Transition 24 Not “Selling” or “Convincing” a Company to Transition to Agile Copyright © 2007 - 2018, Innolution, LLC. All Rights Reserved. Assuming a company has already substantially decided to use agile
  • 13. 25 Do Agile in the Small before Agile in the Large Copyright © 2007 - 2018, Innolution, LLC. All Rights Reserved. If you can’t do small-scale agile, you should have no confidence you can do large-scale agile 26 So, the Company Could (Should) Already Be Doing Agile On a Smaller Scale Copyright © 2007 - 2018, Innolution, LLC. All Rights Reserved.
  • 14. 27 Most Companies Focus Their Transition Effort on Dev / IT Copyright © 2007 - 2018, Innolution, LLC. All Rights Reserved. 28 Need to Determine How Broad to Focus in Dev / IT? Copyright © 2007 - 2018, Innolution, LLC. All Rights Reserved. All of Dev / IT Particular Department Specific Product Development Value Stream
  • 15. 29 Not Involving Other Departments In Transition Can Cause Misalignment Throughout the Value Chain Copyright © 2007 - 2018, Innolution, LLC. All Rights Reserved. We want fixed-date, budget, & scope We write contracts to shift risk to other party We need well-defined, legally defensible annual performance assessmentsWe need an annual budget that pre-allocates every $ to be spent We need to know the complete feature set and delivery date upfront so we can plan We build things our own way, we’ll get you the finished stuff when it’s done We push work into the system as fast as we can We’re AGILE! We release according to our own schedule 30 Departments Outside of IT Using Scrum Copyright © 2007 - 2018, Innolution, LLC. All Rights Reserved. 2015 Scrum Alliance State of Scrum Report
  • 16. 31 Tension Due to Misalignment Copyright © 2007 - 2018, Innolution, LLC. All Rights Reserved. 2015 Scrum Alliance State of Scrum Report 32Copyright © 2007 - 2018, Innolution, LLC. All Rights Reserved. Agile Mindset First
  • 17. 33 Agile Adoption Copyright © 2007 - 2018, Innolution, LLC. All Rights Reserved. First focus on adopting agile mindset Second focus on adopting agile practices Avoid cargo-cult adoption 34 US Airdrops and Cargo Staging Copyright © 2007 - 2018, Innolution, LLC. All Rights Reserved.
  • 18. 35 Cargo Cult Copyright © 2007 - 2018, Innolution, LLC. All Rights Reserved. 36 Cargo Cult Issues… Copyright © 2007 - 2018, Innolution, LLC. All Rights Reserved. Imitating actions alone produces desired results Correlation implies causation Process is more important than core principles No need to know the foundational “why”
  • 19. 37 Agile Principles Provide Context for Inspecting & Adapting Copyright © 2007 - 2018, Innolution, LLC. All Rights Reserved. People who apply Agile without understanding its underlying principles lack the necessary context to understand why they are doing things and when and how best to inspect and adapt their approaches 38Copyright © 2007 - 2018, Innolution, LLC. All Rights Reserved. Role of Training and Coaching
  • 20. 39 Importance of Training and Coaching Copyright © 2007 - 2018, Innolution, LLC. All Rights Reserved. Agile training and coaching are critical success factors in an agile transition effort! 40 Internal stakeholders Internal Coaches Teams Agile Training – Who to Involve and Timing (An Example) Copyright © 2007 - 2018, Innolution, LLC. All Rights Reserved. Time DecisiontoAdoptatScale Internal stakeholders Internal Coaches Teams Pilot Teams Managers
  • 21. 41 Internal vs. External Trainers Copyright © 2007 - 2018, Innolution, LLC. All Rights Reserved. Initial training is almost always provided by outside trainers Good idea to leverage the training expertise of people who do this for a living Over time, some (or all) of the training can transition to internal trainers Internal trainers might participate in a train-the- trainers program with external trainers 42 Internal vs. External Coaches Copyright © 2007 - 2018, Innolution, LLC. All Rights Reserved. On large transitions it would be foolish to not leverage a battle-proven external coach You want to leverage the expertise of someone who has assisted a number of different companies with their agile adoptions Given the scale that most companies want to embrace agile, they will need to have internal coaches as well
  • 22. 43 Internal Coach the Coaches Program Copyright © 2007 - 2018, Innolution, LLC. All Rights Reserved. 1. Candidate internal coaches receive agile training Set up an internal program to assist employees in becoming agile coaches 2. External coaches initially provide the transition and team coaching while internal coaches act as apprentices 3. After an appropriate apprentice period, candidate coaches become internal coaches and external coaches observe and provide next-level issue backup 4. Experienced internal coaches acts as mentors to the next wave of candidate coaches 5. External coaches are weaned out 44 Companies Dislike This Dialog with Their External Coach! Copyright © 2007 - 2018, Innolution, LLC. All Rights Reserved. What do you think about X? X is really important How should we proceed with X? There are 3 ways to proceed, which would you like to do? I’ll support whichever you prefer I don’t know, that’s why I’m paying you!
  • 23. 45Copyright © 2007 - 2018, Innolution, LLC. All Rights Reserved. Restructuring Teams for Flow 46 Component teams Copyright © 2007 - 2018, Innolution, LLC. All Rights Reserved. Example component: Routing algorithms (component) inside of a GPS
  • 24. 47 Feature teams Copyright © 2007 - 2018, Innolution, LLC. All Rights Reserved. 48 Example – Typical Large Company with Many Component Teams Copyright © 2007 - 2018, Innolution, LLC. All Rights Reserved.
  • 25. 49 Creating Staggering Dependencies Copyright © 2007 - 2018, Innolution, LLC. All Rights Reserved. 50 Each Team Has Multiple Competing Requests in Its Product Backlog Copyright © 2007 - 2018, Innolution, LLC. All Rights Reserved.
  • 26. 51 Where Teams Deal with Competing Priorities Do my stuff! Copyright © 2007 - 2018, Innolution, LLC. All Rights Reserved. 52 Leading to Team Misalignment We’re ready now! Okay, now we’re ready! Finally, we’re ready! Time Copyright © 2007 - 2018, Innolution, LLC. All Rights Reserved.
  • 27. 53 And the Accrual of Economically Damaging Inventory This is all inventory Copyright © 2007 - 2018, Innolution, LLC. All Rights Reserved. 54 Consequences of Relying on Too Many Component Teams Copyright © 2007 - 2018, Innolution, LLC. All Rights Reserved. Organizations that relies heavily on components could have idle work up to 90% or more of the time!
  • 28. 55 Want to Structure Teams to Achieve Fast, Flexible, and Economically Sensible Flow Copyright © 2007 - 2018, Innolution, LLC. All Rights Reserved. 56 Issue – Organizational Resistance Copyright © 2007 - 2018, Innolution, LLC. All Rights Reserved. Interferes with fiefdoms Too hard to reorganize into feature teams A general belief that feature teams will lead to significant technical debt
  • 29. 57 Example Company – Many Component Teams Copyright © 2007 - 2018, Innolution, LLC. All Rights Reserved. Geo 1 Geo 2 Geo 3 Geo 4 Geo 5 Geo 6 10 teams 2 teams 2 teams 5 teams 8 teams 1 team 20 teams 25 teams 15 teams 58 Example Issues Impeding Immediate Team Restructuring Copyright © 2007 - 2018, Innolution, LLC. All Rights Reserved. Team as currently structured are responsible for getting in-flight releases out the door Making significant team-structure changes early on is considered risky from a cultural perspective Not enough information to know what is the “proper” team structure
  • 30. 59Copyright © 2007 - 2018, Innolution, LLC. All Rights Reserved. Measuring the Transition 60 Quantifying Agile Transition Costs Copyright © 2007 - 2018, Innolution, LLC. All Rights Reserved. How much will the agile transition cost? For some companies, naively the bottom-line number in the response to an RFP! Cost of training Cost of coaching Cost of (re)tooling But there are many other costs… E.g., cost of organizational restructuring
  • 31. 61 Measuring Agile Transition Success – the Right Way Copyright © 2007 - 2018, Innolution, LLC. All Rights Reserved. Which is more compelling? A company that increased its velocity by 400% after adopting agile, or A company that increased its share price by 40% after adopting agile 62 Output vs. Outcome Measures Copyright © 2007 - 2018, Innolution, LLC. All Rights Reserved. Outputs measure “what we do or produce” Outcomes measure “what difference we make or the value we create” E.g., velocity, throughput, cycle time, utilization, # of widgets created, # of hamburgers server, # of clients served E.g., net promoter score, profitability, delighted customers, % reduction in malaria infections
  • 32. 63 Applicability of Agile Output Measures Copyright © 2007 - 2018, Innolution, LLC. All Rights Reserved. If we double velocity, it implies we get twice the work done in the same amount of time If we get twice the work done in half the time, then we increased velocity by 400% Maximizing output could have little correlation with delivering products or services that delight customers Producing more output could contradict a core Agile Manifesto principle: “Simplicity — the art of maximizing the amount of work not done…” From an economics perspective, minimizing output while maximizing outcome (value to customer) is more favorable 64 How Success is Measured with Agile Initiatives Copyright © 2007 - 2018, Innolution, LLC. All Rights Reserved.
  • 33. 65 How Success is Measured on a Day-to-Day Basis Copyright © 2007 - 2018, Innolution, LLC. All Rights Reserved. 66 Measuring Agility (Using Comparative Agility as an Example) Copyright © 2007 - 2018, Innolution, LLC. All Rights Reserved.
  • 34. 67 Correlating Agile Measures with Business Outcome Measures Copyright © 2007 - 2018, Innolution, LLC. All Rights Reserved. Correlations Outcome Measures 68Copyright © 2007 - 2018, Innolution, LLC. All Rights Reserved. Contact Info for Ken Rubin Email: krubin@innolution.com Website: www.innolution.com Phone: (303) 827-3333 LinkedIn: www.linkedin.com/in/kennethrubin Twitter: www.twitter.com/krubinagile Facebook: www.facebook.com/InnolutionLLC Google+ plus.google.com/+KennyRubin1/ Essential Scrum: A Practical Guide to the Most Popular Agile Process www.essentialscrum.com