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Measure Beyond Agile

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Measure Beyond Agile workshop, New Delhi, September 23, 2018

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Measure Beyond Agile

  1. 1. Measure Beyond Agile New Delhi, September 23, 2018 Workshop by Dr. Janne J. Korhonen
  2. 2. Facilitator • Janne J. Korhonen • D.Sc. Enterprise Systems • M.Sc. Computer Science • B.A. Cognitive Science • Independent consultant and scholar • 20 years of versatile industry experience
  3. 3. Introductions 1. What is your name, title, organization? 2. How is your work related to the day’s topic? 3. What are your expectations for today?
  4. 4. Agenda for Today • From Agile Development to Business Agility • Agile Vision and Reality • Agile Logics • Requisite Agility • Measure Beyond Agile • Agile Enterprise Questionnaire
  5. 5. From Agile Development to Business Agility
  6. 6. Episodic Change Continuous Change Disruptive Change Objective: Control change Strategy: Build redundancies and boundaries, fortify resources Objective: Embrace change Strategy: Open the organization, remove boundaries and barriers to change Objective: Prepare for change Strategy: Build resiliency by planning for contingencies, build capacity for recovery and renewal Laminar Environment Discontinuous Environment Turbulent Environment The Nature of Change is Changing
  7. 7. What is your Agile Vision?
  8. 8. Requirements Design Implementation Verification Maintenance BRUF is Duff • Minimize cost • Minimize change
  9. 9. Agile Manifesto Individuals and interactions over processes and tools Working software over comprehensive documentation Customer collaboration over contract negotiation Responding to change over following a plan
  10. 10. Adapted from Lakeworks@Wikimedia Product Backlog Sprint Backlog Sprint Working increment of the software 30 days 24 h Scrum is Plum • Minimize cost of change
  11. 11. Scrum of Scrums Team of Teams Team
  12. 12. Agile at Scale Strategic Themes Agile Portfolio Identification, prioritization, estimation and maintenance of epics Agile Programs Planning and steering of development trains Solution scoping in terms of features Agile Teams Incremental implementation of user stories within the development trains Business Needs Architectural Choices Team Backlog Program Backlog Portfolio Backlog Architectural Initiatives (Epics) Architectural Prioritization Architectural Refactoring and Design Spikes
  13. 13. Agile Enterprise needs to be considered along multiple dimensions P – Production & Delivery • P1: Infrastructure • P2: Manufacturing / Service Delivery • P3: Logistics C – Customers and Markets • C1: Sensing and Foresight • C2: Customer Engagement • C3: External Collaboration D – Product/Service Dev • D1: Innovation and Development • D2: Development Method • D3: Architecture I – Continuous Improvement • I1: Engineering • I2: Management • I3: Quality T – Transversal • T1: Culture • T2: Leadership • T3: Governance E – Business Enablement • S1: Resources Sustainment • S2: Control Functions • S3: Specialist Advisory
  14. 14. How is business agility played out in your organization along these dimensions? Agile Enterprise Customer/ Market Engagement Production / Service Delivery Product/ Service Development Continuous Improvement Business Support Leadership, Culture, Governance
  15. 15. Break
  16. 16. Requisite Agility
  17. 17. Complexity of the Environment Must be Matched with Complexity of Work Episodic Change Continuous Change Disruptive Change Turbulent Environment Discontinuous Environment Laminar Environment I II III IV V VI VII
  18. 18. Work Levels Level Description V – Business Define and articulate the organization’s identity and intent to provide internal coherence and determine external position in the present and future. IV – Function Interrelate and coordinate a functioning set of products/services, structures, systems, internal and external relationships to maintain viability in a changing environment. III – Practice Integrate and manage a coherent work system of people, technology, processes, and resources to meet the current and foreseeable needs of known customers. II – Process Apply knowledge and experience to a particular situation within prescribed boundaries and available resources. I – Activity Produce a specified output (product, service or a combination of both), which is largely prescribed, tangible and measurable.
  19. 19. Maturity Levels Level Description 5 – Optimized Processes are continuously improved. Root causes of process defects are analyzed and eliminated. 4 – Predictable Processes are usually quantitatively managed: measured, analyzed, controlled, and improved. 3 – Defined Processes are generally well-defined, documented, and consistent across the organization. 2 – Managed Basic processes are established. Processes are repeated for similar projects. 1 – Initial Processes are generally poorly defined and unpredictable. Success is based on individual efforts.
  20. 20. Link Between Work Levels and Maturity Levels V – Business Level Initial Business Managed Business Defined Business Predictable Business Optimized Business IV – Function Level Initial Function Managed Function Defined Function Predictable Function Optimized Function III – Practice Level Initial Practice Managed Practice Defined Practice Predictable Practice Optimized Practice II – Process Level Initial Process Managed Process Defined Process Predictable Process Optimized Process I – Activity Level Initial Activity Managed Activity Defined Activity Predictable Activity Optimized Activity 1 – Initial 2 – Managed 3 – Defined 4 – Predictable 5 – Optimized Maturity Level
  21. 21. Agility Logics Aspect Discrete– Elementary Procedural– Managed Systemic– Proactive Enterprise– Agile Ecosystem– Agile Customer/ Market One-off external interactions Issue-specific generalizations Customer segmentation; Resources sharing; Customization, personalization, contextualization. Dynamic integration Production / Service Delivery Prescribed output Situational response Systematic provision Comprehensive provision Field coverage Product/ Service Development Work optimization Changes in work specification Work system development Conceptual innovation Value innovation Continuous Improvement Ad-hoc improvement Reactive improvement Proactive improvement Quantitative improvement Dynamic improvement Business Enablement Informal, unmanaged Basic support Full practice Strategically federated Embedded Transversal Opportunistic Rules and routines Demarcation of expertise Coordination of competencies Integrated and fluid capability
  22. 22. What is Requisite AgilityTM? • Requisite Agility™ (RA) refers to organization design principles, patterns and practices that enable the organization to effectively adapt, responsively or preemptively, to changes in its environment. It provides a constructive scaffolding that helps the organization sense these changes, make sense of them, and act accordingly, while learning from the experience. • RA is agnostic to any specific agile methodology, best practice, or framework. Drawing on the systems and complexity theories, it entails theoretically informed and organization-specific diagnosis, analysis, design and implementation of organizational structures, processes and practices that are adaptive in their context.
  23. 23. RequisiteAgility
  24. 24. Is your organization agile enough?
  25. 25. Measure Beyond Agile
  26. 26. To win, everyone must play for the team • Imagine soccer team KPIs: • For the defense: minimize goals allowed • For the offense: maximize goals scored • If you were a defensive player, would you rather: a) Win 5–4 b) Lose 0–1 • If you were an offensive player, would you rather: a) Win 1–0 b) Lose 4–5
  27. 27. Cross-functional metrics transcend optimization of silos Success Metrics Along Functional Activities • Perpetuates disconnected, dysfunctional silos • Optimization of subsystems results in sub-optimization of the system as a whole Cross-Functional Metrics • Success metrics cut organizational structures • Customer-centric • Multiple functions must work together • Shared understanding of data needed • Calls for a cultural change
  28. 28. Effective metrics are actionable, credible, transparent, and have a shared interpretation across the organization Good metrics Actionable Accessible, credible data Common interpretation Transparent, simple calculation When the metric value changes, it is clear what caused the change and/or what actions should be taken. People in the organization recognize what the metric means. The data can be acquired with modest effort from a source that people trust. The method for generating the metric is shared and well understood. Adapted from Gemignani et al. (2014): Data Fluency
  29. 29. Enterprise Agility Diagnosis Variant 1 Enterprise Agility Questionnaire Workshop with Key Informants Agile Capability Assessment Report
  30. 30. Enterprise Agility Diagnosis Variant 2 Enterprise Agility Questionnaire Key Informant Interviews Agile Capability Assessment Report
  31. 31. Enterprise Agility Questionnaire • Six dimensions with three categories each • Four questions per category • Five-step scale of forced-choice alternatives P – Production & Delivery • P1: Infrastructure • P2: Manufacturing / Service Delivery • P3: Logistics C – Customers and Markets • C1: Sensing and Foresight • C2: Customer Engagement • C3: External Collaboration D – Product/Service Dev • D1: Innovation and Development • D2: Development Method • D3: Architecture I – Continuous Improvement • I1: Engineering • I2: Management • I3: Quality T – Transversal • T1: Culture • T2: Leadership • T3: Governance E – Business Enablement • S1: Resources Sustainment • S2: Control Functions • S3: Specialist Advisory
  32. 32. Sample Question D1.3: What are the primary development activities in your organization? 1. Improvement of procedural tasks based on trial and error. 2. Improvement of work specifications. 3. (Re)design of work processes within and across work streams; systematic development of products and services. 4. Re-engineering of the organization to introduce and disseminate innovative products and services. 5. Rethinking the organization in terms of whole new combinations of products, services, markets, and technologies.
  33. 33. Enterprise Agility Questionnaire is an effective measure • Actionable • Report provides practicable recommendations • Common Interpretation • Joint appreciation of the results • Accessible • Easy data collection • Timely results • Transparent • Straightforward arithmetic • Uniform scale
  34. 34. What is your agile logic? • Demo survey: http://www.measurebeyondagile.com/demo/

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