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Financial	  Improvements?!	    Jürgen	  De	  Smet	                         	  jurgen@co-­‐learning.be	       @JurgenLACoac...
My	  Journey	  •  1996	  -­‐	  SoIware	  Engineer	  	  •  2001	  –	  Team	  Lead	  •  2008	  –	  Started	  Co-­‐Teaching	 ...
Value	  Chain	  (Phased	  Process)	  Customer	         Account	  Manager    Project	  Manager                             ...
Agile	  Development	  Customer	     Account	  Manager   Project	  Manager                                                 ...
Managers	  Point	  of	  View	  
Focus	  on	  Net	  Profit?!	  Net	  Profit	  =	  Top	  Line/Revenue	   	   	   	   	   	   	  -­‐	  Bo5om	  Line/	   	   	  ...
More	  with	  Less?	  
Which	  Focus?	  Top	  Line?	                        Bo5om	  Line?	                                             Net	  Profi...
Only	  1	  Focus!	  ROI	  =	  Net	  Profit	  /	  Investment	  
What	  is	  Investment?	  
What	  about	  SoIware?	  Customer	         Account	  Manager    Project	  Manager                                        ...
An	  example…	   Customer	         Account	  Manager    Project	  Manager                                                 ...
An	  example…	   Customer	         Account	  Manager    Project	  Manager                                                 ...
An	  example…	   Customer	         Account	  Manager    Project	  Manager                                                 ...
An	  example…	   Customer	         Account	  Manager    Project	  Manager                                                 ...
So…	  It’s	  All	  Management?!	  
Let	  us	  zoom	  in	  on	  Scrum…	  
Stressed	  Out	  PO?!	  
Product	  Backlog	  Inventory?!	  
Product Backlog           Strategic	  Plan	                         next                             Priority             ...
Focus	  ≠	  100%	  Bussy!	  Doing	  the	  right	  things	  to	  increase	  ROI	  of	  the	  team!	  
Did	  you	  get	  it?	  
OpYmizing	  Business	  =	  Kaizen	  •  Invest	  in	  capacity	  improvement	  acYons	  •  Which	  will	  lead	  to	  great...
Why	  ROI?	  •  Because	  it	  increases	  the	  company	  profitability	  
Why	  Agile?	  •  Because	  it	  helps	  focusing	  on	  capacity	     improvements	  (retro’s)	  •  Pull	  mechanisms	  (...
2	  words	  
OpenAgileRO - The financials behind Software development
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OpenAgileRO - The financials behind Software development

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OpenAgileRO - The financials behind Software development

  1. 1. Financial  Improvements?!   Jürgen  De  Smet    jurgen@co-­‐learning.be   @JurgenLACoach   In/jurgendesmet  
  2. 2. My  Journey  •  1996  -­‐  SoIware  Engineer    •  2001  –  Team  Lead  •  2008  –  Started  Co-­‐Teaching  CSx  trainings  &   help  other  companies  •  …  2011  –  Manager  of  400+  OrganizaYon  •  Self  Employed  &  Happy  
  3. 3. Value  Chain  (Phased  Process)  Customer   Account  Manager Project  Manager Customer   Request   (s)   (s)   Analyst(s)   Development   IntegraYon   Deployment   Accepted   Register  Demands   Budgets   Requirements   Code,  Tests…   Defects,  Performance…  
  4. 4. Agile  Development  Customer   Account  Manager Project  Manager Customer   Request   (s)   (s)   Analyst(s)   Development   IntegraYon   Deployment   Accepted  
  5. 5. Managers  Point  of  View  
  6. 6. Focus  on  Net  Profit?!  Net  Profit  =  Top  Line/Revenue              -­‐  Bo5om  Line/              Opera9onal  Expense  
  7. 7. More  with  Less?  
  8. 8. Which  Focus?  Top  Line?   Bo5om  Line?   Net  Profit?  
  9. 9. Only  1  Focus!  ROI  =  Net  Profit  /  Investment  
  10. 10. What  is  Investment?  
  11. 11. What  about  SoIware?  Customer   Account  Manager Project  Manager Customer   Request   (s)   (s)   Analyst(s)   Development   IntegraYon   Deployment   Accepted   Register  Demands   Budgets   Requirements   Code,  Tests…   Defects,  Performance…  
  12. 12. An  example…   Customer   Account  Manager Project  Manager Customer   Request   (s)   (s)   Analyst(s)   Development   IntegraYon   Deployment   Accepted   Register  Demands   Budgets   Requirements   Code,  Tests…   Defects,  Performance…   AssumpYons:   -­‐  Revenue  =   1.000.000€   -­‐  OperaYonal  Cost  =  ROI  =  700.000€  /  150.000€  à  4,6   300.000€  
  13. 13. An  example…   Customer   Account  Manager Project  Manager Customer   Request   (s)   (s)   Analyst(s)   Development   IntegraYon   Deployment   Accepted   Register  Demands   Budgets   Requirements   Code,  Tests…   Defects,  Performance…   AssumpYons:   -­‐  Revenue  =   1.000.000€   -­‐  OperaYonal  Cost  =  ROI  =  700.000€  /  80.000€  à  8,75   300.000€  
  14. 14. An  example…   Customer   Account  Manager Project  Manager Customer   Request   (s)   (s)   Analyst(s)   Development   IntegraYon   Deployment   Accepted   Register  Demands   Budgets   Requirements   Code,  Tests…   Defects,  Performance…   AssumpYons:   -­‐  Revenue  =   1.000.000€   -­‐  OperaYonal  Cost  =  ROI  =  700.000€  /  80.000€  à  8,75   300.000€  
  15. 15. An  example…   Customer   Account  Manager Project  Manager Customer   Request   (s)   (s)   Analyst(s)   Development   IntegraYon   Deployment   Accepted   Register  Demands   Budgets   Requirements   Code,  Tests…   Defects,  Performance…   AssumpYons:   -­‐  Revenue  =   1.500.000€   -­‐  OperaYonal  Cost  =  ROI  =  1.200.000€  /  80.000€  à  15   300.000€  
  16. 16. So…  It’s  All  Management?!  
  17. 17. Let  us  zoom  in  on  Scrum…  
  18. 18. Stressed  Out  PO?!  
  19. 19. Product  Backlog  Inventory?!  
  20. 20. Product Backlog Strategic  Plan   next Priority iteration Business  Case  &  Drivers   Epic/ Story CapabiliYes  –  Features  Use  Cases  –  Themes  –  Epics   Themes/ Capabilities User  Stories   Bus. Case & Drivers Test  Cases   Strategic Plan Velocity  Based!  
  21. 21. Focus  ≠  100%  Bussy!  Doing  the  right  things  to  increase  ROI  of  the  team!  
  22. 22. Did  you  get  it?  
  23. 23. OpYmizing  Business  =  Kaizen  •  Invest  in  capacity  improvement  acYons  •  Which  will  lead  to  greater  capacity  and  thus   beper  ROI  of  your  organizaYon  •  This  instead  of  invesYng  in  building  even  more   inventory!  •  Not  focussing  on  sales  funnel  or  bopom  line   but  on  ROI  all  the  way.  
  24. 24. Why  ROI?  •  Because  it  increases  the  company  profitability  
  25. 25. Why  Agile?  •  Because  it  helps  focusing  on  capacity   improvements  (retro’s)  •  Pull  mechanisms  (sprint  planning,  kanban…)  •  It  helps  limiYng  the  inventory  thus  increasing   the  ROI  
  26. 26. 2  words  

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