From the Vision to the working software and back

1. An approach to align portfolio, programs and teams in the Agile way. FromtheVisionto theWorkingSoftware and backAccomplishment of the Strategic Goals Johnny Ordóñez

2. In a company where I had the opportunity to visit, members from Executive staff told me about three main needs that they have and want achieve urgently...

3. Now, We have three main needs •Alignthe entire company effort to the accomplishment of the strategic goals. •Predict(at high level) what we can deliver for planned releases until 2014. •Measurethe progress on organizational strategic goals.

4. Okay, my proposal...

5. Time Be better Today, We’re here

6. Time Be better Today, We’re here And We want be here

7. Time Be better Today, We’re here And We want be here Vision

8. Time Be better Today, We’re here And We want be here Vision Strategy

9. Time Be better Today, We’re here And We want be here Vision Strategy Strategic Goals Revenues Positioning Operative efficiency Competitiveness

10. Execution Time Be better Today, We’re here And We want be here Vision Strategy Strategic Goals Revenues Positioning Operative efficiency Competitiveness Portfolio Program Teams

11. Time Be better Today, We’re here And We want be here Vision Strategy Strategic Goals Revenues Positioning Operative efficiency Competitiveness Portfolio Program Teams Guide Inform 2 3 Execution 1

12. 1. Strategy

13. Strategy –Customer centric vs Product centric New Products Present Products Present Customers New Customers Create (Disruptive) Manage (Maintain) Adapt (Evolutionary) Extend (Evolutionary)

17. Strategy –Customer centric vs Product centric New Products Present Products Present Customers New Customers Create (Disruptive) Manage (Maintain) Adapt (Evolutionary) Extend (Evolutionary) Product N Product1 Product2 Product3 Product4 Product5 Product6

18. Strategy and Execution Strategy Execution Vision Structure Visibility

19. Why, What and How Portfolio Program Teams What? How? Why?

20. 2. Guide

21. 1. Define strategic goals •IncreasetheValueShare •Increaserevenuesin a sustainableway •Modernizeproductportfolio •Keepattendingourcustomers •Attendto new customers •Be perceivedas a greatplace to work •New configurable, customizableand adaptable product

22. 2. Prioritize the strategic goals Business Value New Value for the Organization Customer Value Value for our Customers Hi Low Low Hi

25. 3. Order the strategic goals by priority Business Value New Value for the Organization Customer Value Value for our Customers Hi Low Low Hi GOAL 1 GOAL 4 GOAL 2 GOAL 5 GOAL 8 GOAL 9 GOAL 7 GOAL 6 GOAL 3

26. 3. Order the strategic goals by priority GOAL 1 GOAL 4 GOAL 2 GOAL 3 + - Priority

27. 4. Create an Epic with an explicit anchor to a strategic goal GOAL 1 GOAL 4 GOAL 2 GOAL 3 E1 E4 E5 E6 E1 E2 E3 E4 GOAL 1 GOAL 4 GOAL 2 GOAL 3 Approved & Prioritized Epics Analysis Funnel Light Business Case Finance return Potential ROI Budget/Costs E2 E3

28. 5. Decompose into features GOAL 1 GOAL 4 GOAL 2 GOAL 3 E1 E2 E3 E4 E5 F1 F2 F3’’’ F1’’ F2’’ F3 F1’ F2’ F3’ F1’’’ F2’’’

29. 6. Estimate new features Product Team gives Business Value estimates. Committee / Dev Team gives Effort estimates.

30. 6.1. Estimate new features –Business Value Product Team 7 +/-2 people Product Managers Product Owners Business/Epic Owners (optional) PM PO PO PO PM Using Business Value points Planning Poker Business Value Game Value Sliders Fibonacci sequence 3 pts 5 pts 8 pts 13 pts 20 pts 40 pts 100 pts

31. 6.1. Estimate new features –Cost of Delay Product Team 7 +/-2 people Product Managers Product Owners Business/Epic Owners (optional) Using Cost of Delay points Fibonacci sequence by each variable Time Criticality User| Business Value Cost of Delay RiskReduction| OpportunityEnablementValue = + +

32. 6.1. Estimate new features –Business Value or Cost of Delay GOAL 1 GOAL 4 GOAL 2 GOAL 3 E1 E2 E3 E4 E5 F1 F2 F3’’’ F1’’ F2’’ F3 F1’ F2’ F3’ F1’’’ F2’’’ 18 24 18 35 25 48 23 10 34 21 31

33. 6. Estimate new features –Effort Estimating Committee 7 +/-2 people Teams representatives (until 5) Architects representatives Operations representatives Team Team Team Architect DevOps Using T-Shirt Sizes Middle abstraction level Planning Poker Story Points equivalence (adjustable in time) XS => 5 pts S=> 8 pts M=> 13 pts L=> 30 pts XL=> 40 pts XXL=> 100 pts

34. 6. Estimate new features –Effort GOAL 1 GOAL 4 GOAL 2 GOAL 3 E1 E2 E3 E4 E5 F1 F2 F3’’’ F1’’ F2’’ F3 F1’ F2’ F3’ F1’’’ F2’’’ 10 50 25 18 35 25 48 23 10 34 21 18 24 18 35 25 48 23 10 34 21 31

35. 7. Prioritize features – Maximize the ROI ROI  How many value I will get? How much I pay to create this value? Businesses move and take decisions based on ROI.

36. 7. Prioritize features – Maximize the ROI ROI  Σ Business Value points Σ Effort Points Businesses move and take decisions based on ROI.

37. 7,0% 13,0% 16,0% 19,0% 45,0% Always Often Regularly Rarely Never 7. Prioritize features –Maximize the ROI Chaos Report 2011, Standish Group 80% of the business value is located at 20% of the features (Pareto). Find the 20%. Features used in a Typical Software System 20% Rarely/ Neverused Always/ Oftenused 64%

38. 7. Prioritize features –Maximize the ROI

39. 7. Prioritize features –Maximize the ROI Business Value Effort + - + -

40. 7. Prioritize features –Maximize the ROI Business Value Effort + - + - F1 F2 F3’’’ F1’’ F2’’ F3 F1’ F2’ F3’ F1’’’ F2’’’

41. 7. Prioritize features –Maximize the ROI Business Value Effort + - + - F1 F2 F3’’’ F1’’ F2’’ F3 F1’ F2’ F3’ F1’’’ F2’’’ 1 2 3 4

42. 7. Prioritize features –Qualitative valuation

43. 8. Check dependencies across the program GOAL 1 GOAL 4 GOAL 2 GOAL 3 E1 E2 E3 E4 E5 F1 F2 F3’’’ F1’’ F2’’ F3 F1’ F2’ F3’ F1’’’ F2’’’ 10 50 25 18 35 25 48 23 10 34 21 18 24 18 35 25 48 23 10 34 21 31

44. 9. Reorganize the features GOAL 1 GOAL 4 GOAL 2 GOAL 3 E1 E2 E3 E4 E5 F1 F2 F3’’’ F1’’ F2’’ F3 F1’ F2’ F3’ F1’’’ F2’’’ 10 50 25 18 35 25 48 23 10 34 21 18 24 18 35 25 48 23 10 34 21 31 + - Priority - Priority

45. 10. Set the Release Plan by real capacity What’s real velocity of our teams right now? What’s the capacity of our organization? How are evolving our teams? Determine the organizational capacity doing a tracking of the real and historical performance by each team. Real velocity is equal to the number of story points delivered by sprint; not calculated.

46. 10.1 Determining the team real velocity TEAM 1 Sprint DeliveredStoryPoints Sprint1 8 Sprint 2 5 Sprint3 3 Sprint 4 5 Sprint5 6 0 1 2 3 4 5 6 7 8 9 Sprint 1 Sprint 2 Sprint 3 Sprint 4 Sprint 5 Delivered Story Points

47. 10.1 Determining the team real velocity TEAM 1 Average = 5 pts Sprint DeliveredStoryPoints Sprint1 8 Sprint 2 5 Sprint3 3 Sprint 4 5 Sprint5 6 0 1 2 3 4 5 6 7 8 9 Sprint 1 Sprint 2 Sprint 3 Sprint 4 Sprint 5 Delivered Story Points Average = 5 pts

48. 10.1 Determining the team real velocity TEAM 1 Sprint DeliveredStoryPoints Sprint1 8 Sprint 2 5 Sprint3 3 Sprint 4 5 Sprint5 6 0 1 2 3 4 5 6 7 8 9 Sprint 1 Sprint 2 Sprint 3 Sprint 4 Sprint 5 Delivered Story Points Average = 5 pts 2 pts 2 pts Average = 5 pts Standard Deviation = 2 pts

49. 10.1 Determining the team real velocity TEAM 1 Sprint DeliveredStoryPoints Sprint1 8 Sprint 2 5 Sprint3 3 Sprint 4 5 Sprint5 6 0 1 2 3 4 5 6 7 8 9 Sprint 1 Sprint 2 Sprint 3 Sprint 4 Sprint 5 Delivered Story Points Average = 5 pts 2 pts 2 pts Average = 5 pts Standard Deviation = 2 pts Best case = 7 pts Expected case = 5 pts Worst case = 3 pts Best case = 7 pts Worst case = 3 pts

50. 10.1 Determining the team real velocity TEAM 1 Sprint DeliveredStoryPoints Sprint1 8 Sprint 2 5 Sprint3 3 Sprint 4 5 Sprint5 6 7pts Points Average = 5 pts Standard Deviation = 2 pts Best case = 7 pts Expected case = 5 pts Worst case = 3 pts Time Fixed Week 1 Week 2 5 pts 3pts

51. 10.1 Determining the team real velocity TEAM 1 Sprint DeliveredStoryPoints Sprint1 8 Sprint 2 5 Sprint3 3 Sprint 4 5 Sprint5 6 10 pts Points Average = 5 pts Standard Deviation = 2 pts Best case = 7 pts Expected case = 5 pts Worst case = 3 pts Scope Fixed Week 1 Week 2 Week 2 + X Days Week 2 + X + Y days 7 pts

52. 10.1 Determining the team real velocity TEAM 1 Sprint DeliveredStoryPoints Sprint1 8 Sprint 2 5 Sprint3 3 Sprint 4 5 Sprint5 6 Points Average = 5 pts Standard Deviation = 2 pts Best case = 7 pts Expected case = 5 pts Worst case = 3 pts Velocity in the time Sprint 1 Sprint 2 Sprint 3 Sprint 4

53. 53 Private & Confidential 10.1 Determining the team real velocity TEAM 1 Sprint DeliveredStoryPoints Sprint1 8 Sprint 2 5 Sprint3 3 Sprint 4 5 Sprint5 6 Average = 5 pts Standard Deviation = 2 pts Best case = 7 pts Expected case = 5 pts Worst case = 3 pts Real Velocity = 5 pts (Expected) Select a velocity depending on scenario (perception) Scenarios: Optimist, Expected or Pessimist

54. 10.1 Determining the team real velocity TEAM 1 Sprint DeliveredStoryPoints Sprint1 8 Sprint 2 5 Sprint3 3 Sprint 4 5 Sprint5 6 Average = 5 pts Standard Deviation = 2 pts Best case = 7 pts Expected case = 5 pts Worst case = 3 pts Add a risk perspective Dispersion or Risk Factor: Rotation, Vacations, Sick, Unplanned Real Velocity = 5 pts (Expected) Select a velocity depending on scenario (perception) Scenarios: Optimist, Expected or Pessimist Dispersion Factor = Size of Loss (points) * % Probability = 2 pts * 30 % = 0,6 pts

55. 10.1 Determining the team real velocity TEAM 1 Sprint DeliveredStoryPoints Sprint1 8 Sprint 2 5 Sprint3 3 Sprint 4 5 Sprint5 6 Average = 5 pts Standard Deviation = 2 pts Best case = 7 pts Expected case = 5 pts Worst case = 3 pts Add a risk perspective Dispersion or Risk Factor: Rotation, Vacations, Sick, Unplanned Real Velocity = 5 pts (Expected) Select a velocity depending on scenario (perception) Scenarios: Optimist, Expected or Pessimist Dispersion Factor = Size of Loss (points) * % Probability = 2 pts * 30 % = 0,6 pts Velocity to projections = Real Velocity –Dispersion Factor = 5 –0.6 pts = 4.4 => 4 pts Velocity to projections = 4 pts

56. 10.2 Determining real velocity for all teams COMPANY CAPACITY Team VelocitybySprint VelocitybyMonth VelocitybyRelease (4 months) Team1 4 8 32 Team2 5 10 40 Team3 2 4 16 Team4 2 4 16 TeamN 4 8 32 Organizational Capacity* = 136 pts by release

57. 10.2 Determining real velocity for all teams COMPANY CAPACITY Team VelocitybySprint VelocitybyMonth VelocitybyRelease (4 months) Team1 4 8 32 Team2 5 10 40 Team3 2 4 16 Team4 2 4 16 TeamN 4 8 32 Organizational Capacity* = 136 pts by release *Organizational velocity is reviewed and assessed at the end of each sprint; this moves the release line to adjust the new capacity.

58. 10.2 Determining real velocity for all teams The idea is create a Pull system that is limited by our actual capacity (Kanban) .

59. 10.3 Put the release lines by capacity GOAL 1 GOAL 4 GOAL 2 GOAL 3 E1 E2 E3 E4 E5 F1 F2 F3’’’ F1’’ F2’’ F3 F1’ F2’ F3’ F1’’’ F2’’’ 10 50 25 18 35 25 48 23 10 34 21 136 pts 136 pts Dec 2014 Abr2015 Dec 2015 299 Points

60. 10.3 Put the release lines by capacity GOAL 1 GOAL 4 GOAL 2 GOAL 3 E1 E2 E3 E4 E5 F1 F2 F3’’’ F1’’ F2’’ F3 F1’ F2’ F3’ F1’’’ F2’’’ 10 50 25 18 35 25 48 23 10 34 21 136 pts 136 pts Dec 2014 Abr2015 Dec 2015 299 Points

61. 10.4 Move Features, fit them about capacity. GOAL 1 GOAL 4 GOAL 2 GOAL 3 E1 E2 E3 E4 E5 F1 F2 F3’’’ F1’’ F2’’ F3 F1’ F2’ F3’ F1’’’ F2’’’ 10 50 25 18 35 25 48 23 10 34 21 136 pts 136 pts Dec 2014 Abr2015 Dec 2015 157 Points

62. 10.4 Move Features, fit them about capacity. GOAL 1 GOAL 4 GOAL 2 GOAL 3 E1 E2 E3 E4 E5 F1 F2 F3’’’ F1’’ F2’’ F3 F1’ F2’ F3’ F1’’’ F2’’’ 10 50 25 18 35 25 48 23 10 34 21 136 pts 136 pts Dec 2014 Abr2015 Ago 2015 132 Points

63. 3. Inform

64. Inform Inform = Measuring + Visual Management Valuable Metrics Artifacts PMO Reporting Transparency Information Radiator Visual Tracking

65. Measuring Focus on accomplishmentof goals , predictability, technical excellence and quality.

66. Composition of Goal-based metrics GOAL 1

67. Composition of Goal-based metrics GOAL 1 E3 E4

68. Composition of Goal-based metrics GOAL 1 E3 E4 50% 50%

69. Composition of Goal-based metrics GOAL 1 E3 F4 E4 F1 F2 F3 50% 50% 10 20 10 50

70. Composition of Goal-based metrics GOAL 1 E3 F4 E4 F1 F2 F3 50% 50% 10 20 10 50 20% 10% 60% 90 pts 100% 10%

71. Composition of Goal-based metrics GOAL 1 E3 F4 E4 F1 F2 F3 50% 50% 10 20 10 50 20% 10% 60% 90 pts 100% 10%

72. Composition of Goal-based metrics GOAL 1 E3 F4 E4 F1 F2 F3 50% 50% 10 20 10 50 20% 20% 10% 60% H1 H2 H3 5 2 3 10% 50% 30% 90 pts 100%

73. Composition of Goal-based metrics GOAL 1 E3 F4 E4 F1 F2 F3 50% 50% 10 20 10 50 20% 20% 10% 60% H1 H2 H3 5 2 3 10% 50% 30% 90 pts 100%

74. Composition of Goal-based metrics GOAL 1 E3 F4 E4 F1 F2 F3 50% 50% 10 20 10 50 20% 20% 10% 60% H1 H2 H3 5 2 3 10% 50% 30% 90 pts 100%  Done How much the goal is completed?

75. Composition of Goal-based metrics GOAL 1 E3 F4 E4 F1 F2 F3 50% 50% 10 20 10 50 20% 20% 10% 60% H1 H2 H3 5 2 3 10% 50% 30% 90 pts 100%  Done How much the goal is completed? Goal completion = 50% * 10% * 50 %= 2,5 % Epic completion = 50% * 10% = 5 % Feature completion = 50% = 50 % Story Feature Epic

76. Progress on Strategic Goals 0 1 2 3 4 5 6 7 8 G1 G2 G3 G4 G5 StrategicGoalscompletion To Do Done

77. Goalsvs Epics GOAL 1 E3 30% 2/4 E1 1/3 GOAL 2 E1’ 45% 3/3 E2’ 2/3 GOAL N E1’’ 100% 4/4 E2’’ 3/3 E3’ 0/3

78. Goalsvs Epics GOAL 1 E3 30% 2/4 E1 1/3 GOAL 2 E1’ 45% 3/3 E2’ 2/3 GOAL N E1’’ 100% 4/4 E2’’ 3/3 E3’ 0/3 + - Priority - Priority

79. Epicsvs Features E3 2/4 F1 3/3 10 points 100% F2 2/2 20 points 100% F3 0/3 10 points 0% F4 4/4 50 points 0% E1 4/4 F1’’ 3/3 10 points 100% F2’’ 2/2 20 points 100% E5 2/4 F1’’ 3/3 10 points 100% F2’’ 2/2 20 points 100% F3’’ 0/3 10 points 0% F4’’ 4/4 50 points 0%

80. Epicsvs Features E3 2/4 F1 3/3 10 points 100% F2 2/2 20 points 100% F3 0/3 10 points 0% F4 4/4 50 points 0% E1 4/4 F1’’ 3/3 10 points 100% F2’’ 2/2 20 points 100% E5 2/4 F1’’ 3/3 10 points 100% F2’’ 2/2 20 points 100% F3’’ 0/3 10 points 0% F4’’ 4/4 50 points 0% + - Priority - Priority

81. ReleaseBurndownChart Points Sprint 1 Sprint 2 Sprint 3 Sprint 4 136 Points

82. ReleaseBurnUpChart Scope Story Points Sprint 1 Sprint 2 Sprint 3 Sprint 4 Trend Best Velocity Worst Velocity Cumulative progress

83. Work by Team (Features by Team) E1 E2 E3 E4 E5 F1 F2 F3’’’ F2’’ F1’ F2’ F3’ 10 25 18 35 25 23 34 TEAM 1 TEAM 2 25 Points TEAM 3 77 Points 58 Points

84. Work by Team (Stories by Team) F2 F3 F1 F4 H1 H2 H3’’’ H2’’ H1’ H2’ H3’ 10 25 18 35 25 23 34 TEAM 1 TEAM 2 25 Points TEAM 3 77 Points 58 Points

85. AssessingPredictability 85 Private & Confidential Teams can plan, coordinate and delivery predictably enough to make a release level commitment. Does the team deliver the functionality it intended each iteration? Has the team established a stable velocity? Is working, tested, remediated code being delivered frequently? Does the team have everything expected to perform the work each iteration? Does the team have the confidence they will deliver the functionality expected for the release? Story Ratio Velocity Variance Cycle Time Resource Availability Release Confidence

86. MetricsforAgile Teams METRIC SUCCESS CRITERIA TREND Story Completion Ratio The goal is help teams become predictable in their estimating. > 90% Stories Committed / Delivered 80% -90% Stories Committed / Delivered < 80% Stories Committed / Delivered Velocity Variance The goal is help teams become stable in their velocity. 20% of Variance of last 3 sprints 40% of Variance of last 3 sprints 40%+ of Variance of last 3 sprints Cycle Time / Ready to Release There should not be more than 4 weeks work of throughput active in a team from Ready to Delivered. <2 weeks 2 weeks –4 weeks >4 weeks

87. MetricsforAgile Teams(continuation) METRIC SUCCESS CRITERIA TREND Resource Availability Is the team getting the resource available that was planned?. We need an indication when planned resources aren’t available. Resources are available as planned 2 off planned resource availability 3+ off planned resource availability On time release confidence Teams should be able to roughly estimate and identity risks and dependencies sufficiently that can make and keep release commitments. Team is very confident Team is challenge Release can’t be delivered QA Ratio / % Technical Debt Automated Tests / Total Test or Code Coverage or % Technical Debt. > 90% Automated Tests / Total Tests 80% -90% Automated Tests / Total Tests < 80% Automated Tests / Total Tests

88. Artifactsformeasuringand tracking

89. Artifactsformeasuringand tracking

90. GOAL 1 GOAL 4 GOAL 2 GOAL 3 E1 E2 E3 E4 E5 F1 F2 F3’’’ F1’’ F2’’ F3 F1’ F2’ F3’ F1’’’ F2’’’ 136 pts 136 pts Dec 2014 Abr2015 Dec 2015 132 Points Artifactsformeasuringand tracking

91. Artifactsforplanningand tracking PortfolioBacklog Implementing Done Accepted Analysis Planned Implementation Done Deployed StoryBacklog TaskBacklog In Progress TaskDone StoryDone E3 F1 H1 F2 F3 H2 H3 H4 Portfolio Program Teams

92. Artifactsforplanningand tracking PortfolioBacklog Implementing Done Accepted Analysis Planned Implementation Done Deployed StoryBacklog TaskBacklog In Progress TaskDone StoryDone E3 F1 H1 F2 F3 H2 H3 H4 Portfolio Program Teams KANBAN SCRUM KANBAN

93. KaizenThinking–ContinuousImprovement Guide Prioritize Execute Measure Learn

94. KaizenThinking–ContinuousImprovement Guide Prioritize Execute Measure Learn Plan Do Check Act

95. Now, We have three main needs and three tools •Alignthe entire company effort to the accomplishment of the strategic goals: Goal-based priorization. •Predict(at high level) what we can deliver for planned releases until 2014: Release Planning based on current capacity. •Measurethe progress on organizational strategic goals:Valuable metrics and artifacts.

96. "A good plan violently executed now is better than a perfect plan executed next week." -George S. Patton

97. Teaching an Elephant to Dance or Scaling Agile to Large Project Teams References Teaching an Elephant to Dance or Scaling Agile to Large Project Teams http://www.slideshare.net/VersionOne/teaching-an-elephant-to-dance Agile FeaturesPrioritization http://www.targetprocess.com/blog/2005/10/agile-features-prioritization.html WSJF http://scaledagileframework.com/wsjf/

98. Thankyou @JohnnyOrdonez Agile Consultant& Trainer