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Maersk Line's Agile Journey LESS 2012

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Maersk Line's Agile Journey LESS 2012

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LESS 2012



Maersk Line’s Agile Journey
ozlem.yuce@maersk.com
@OzzieYuce
Özlem Yüce

•  From Izmir, Turkey
•  Degree in
   Economics
•  Lived in 5 different
   countries
•  10 years at Maersk
   Line
•  Product Owner,
   Lean-Agile coach
World’s largest container fleet
Market Leader
Truly global business
Fragmented Technology Landscape
                                                                    SAF
                                                    career.
                                    P&O                             marine               eProfile         iReceivable
          USI           WebSimon                    maersk.co
                                    Nedloyd                         sailing              (SCV)            s (MLIS)
                                                    m
                                                                    schedules
                                    www.
                                                    Mondo-                               Emergency
                        einfo       maersk.co                       LivePerson                            World map
RKST                                                search                               pages
                                    m
                                                                                                          VMLO
GSMS
                MARS               Reference-                                                             (CAF)
                                                      Portal                       GUPS
                service            Data
MARS                                                                                                      ATS2
SAF             Rates                                                              Followup
marine                                                                             shipments              eXport
eRates                                                                                                    booking
Message         MEPC W8
broker                                                                                                    eXport
                                                    eDB                            CCC                    documen-
MEPC            Schedules                                                                                 tation
                                      Phone                                                               SFX
                Office WS             book 3                                                              (document
                client/                                                            ePayment
NGP3 GEO                                                                                                  pouch)
                portal
                service                                   Tracking 3     sROE
NGP3                                                                               Payment
office          MailServic
                                                                                   system
                e
                                                                                   service
NGP3 mall
SAF                                                                                IBM
                                GEO                                       MEX
marine           RKEM                         MCS            GCSS                  payment          SCV
                                mainframe                                 (MLIS)
portal                                                                             systems

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Maersk Line's Agile Journey LESS 2012

  • 1. LESS 2012 Maersk Line’s Agile Journey ozlem.yuce@maersk.com @OzzieYuce
  • 2. Özlem Yüce •  From Izmir, Turkey •  Degree in Economics •  Lived in 5 different countries •  10 years at Maersk Line •  Product Owner, Lean-Agile coach
  • 6. Fragmented Technology Landscape SAF career. P&O marine eProfile iReceivable USI WebSimon maersk.co Nedloyd sailing (SCV) s (MLIS) m schedules www. Mondo- Emergency einfo maersk.co LivePerson World map RKST search pages m VMLO GSMS MARS Reference- (CAF) Portal GUPS service Data MARS ATS2 SAF Rates Followup marine shipments eXport eRates booking Message MEPC W8 broker eXport eDB CCC documen- MEPC Schedules tation Phone SFX Office WS book 3 (document client/ ePayment NGP3 GEO pouch) portal service Tracking 3 sROE NGP3 Payment office MailServic system e service NGP3 mall SAF IBM GEO MEX marine RKEM MCS GCSS payment SCV mainframe (MLIS) portal systems
  • 8. Analyse Design Test Develop
  • 19. “Make it as simple to book a container as it is to buy a book through Amazon.com – Maersk Line CEO ” Source: http://epn.dk/brancher/transport/skib/article2069838.ece
  • 20. Individuals and interactions Co-located teams in Copenhagen • Making progress visible • Delivering working software • Collaboration towards shared goal • Acting as Scrum Master • Various roles in Feature Teams
  • 21. Working Software Beta Release of the new booking application
  • 22.       Customer  Collabora-on   Focus  on  Customer  and  Innova-on  
  • 24. Responding to change Taking on different roles and self organising o Adapt t ing mer Ob serv eeds Custo N Customer ack mer Feedb C usto Experience Design Developing ng Product Fac ilitati ion Roadmaps Prior itisat Business Feature Analyst Team Coach Real wn ing do Options Break nts requireme Scrum Product Master Owner ng M anagi Managing ies dependenc change
  • 25. Learning from a revolutionary approach Don’t attempt Tacit to scale until knowledge of you’re ready agile Manage Stakeholder Expectations Dependencies Defer are really architectural painful decisions
  • 26. 600 Cycle time analysis From Lightbulb (idea) to Live (in production) 500 # Requirements 400 Median = 150 days 300 GCSS 200 During 2010 Med = 373 days 100 0 Days Source: Focal Point (requirements that have been put into production over the last 2yrs: 2008-Oct 2010)
  • 27. Existing Project, Platform, Team Evolutionary Lean  Product  Development  
  • 28. Our vision Faster delivery of value (<90 days lead time) More Faster Better Value Flow Quality Supported by an agile mindset Customer doesn’t really The developer doesn’t Things know what they want really know how to build it change
  • 29. Mature IT Practices we weren’t leveraging Lean Product Enterprise Development Practices Agile Project Practices SCRUM Team Practices XP* Engineering Practices * Extreme Programming
  • 30. Selected LPD practices for Maersk Line First steps in improving the whole... Contains 8 practices selected for Maersk Line: 1.  Get to initial prioritisation faster 2.  Improve prioritisation 3.  Pull Requirements from Dynamic Priority List 4.  Reduce size of requirements 5.  Get to the point of writing code quickly 6.  Actively manage Work-In-Progress (WIP) 7.  Enable Faster Feedback 8.  Enable smooth, sustainable flow
  • 31. Problem: Demand is unlimited Consumerisation I.T. high expectations… Most change is enabled by I.T. so they need more
  • 32. HiPPO: Highest Paid Person’s Opinion
  • 34. Improve Prioritisation Using CD3: Cost of Delay Divided by Duration How value Benefits decays over time Information $ discovery value Cost of Delay Prioritise features by Duration
  • 35. Benefits of using Cost of Delay •  ‘less yelling and screaming’ data-driven, more visible •  Enables better trade-off decisions and increased ROI •  Handles dependencies between teams •  Changes the conversation… Delivering “on time” Delivering value quickly Cutting I.T. costs
  • 36. Value! Cost Scope Schedule
  • 37. Try this at home… Ask each person on one of your project teams: What would you estimate the Cost of Delay for this project to be?
  • 38. Selected practices for Maersk Line First steps in improving the whole... Contains 8 practices selected for Maersk Line: 1.  Get to initial prioritisation faster 2.  Improve prioritisation 3.  Pull Requirements from Dynamic Priority List 4.  Reduce size of requirements 5.  Get to the point of writing code quickly 6.  Actively manage Work-In-Progress (WIP) 7.  Enable Faster Feedback 8.  Enable smooth, sustainable flow
  • 39. Feast and Famine The effect of creating large release batches upstream S Des Dev T Requirements R25 S Des Dev T R24 S Des Dev T R23 S Des Dev T R22 Jan Apr Jul Oct Jan 2011 2012 Development Perspective: Dev Dev Dev Dev Vendor team had ~10,000 hours of idle time in 2010
  • 40. Next train: 13 weeks ?
  • 42. Pull System From Dynamic Priority List Dynamic Triage Priority Refine Realise Release List
  • 43. Fund the capacity to deliver change Make small adjustments over time Throughput Learning curve (18 months?) Go! Stop Time Mobilise (3mo?)
  • 45. 3 potential models: A.  Time-based: Fund a given team size for a period of time B.  Buffering: Fund small batches of requirements in advance C.  Just-in-Time: Fund individual requirements on demand
  • 46. Smooth, sustainable flow Reduce batching of requirements upstream : Ac tion ching at ge b Requirements C han S Des Dev T Releases
  • 47. Cost Flexible Pull scope! System! Scope Schedule
  • 48. Predicting scope based on probability DPL Refine Q: Realise Produ Q: Dev ction Priority Clarify WHW Check Dev Demo Tests RQ-XXX RQ-XXX RQ-XXX RQ-XXX RQ- RQ-XXX RQ-XXX RQ-XXX XXX RQ-XXX RQ- RQ-XXX RQ-XXX XXX RQ-XXX RQ-XXX Rn 23/06 27/06 04/07 05/07 07/07 14/07 18/07 08/08 14/08 Rn+1 14/07 18/07 02/08 03/08 05/08 12/07 15/08 05/09 11/09 ➙  Use cycle-time analysis to compute length of each step then compute backwards the dates from the fixed release dates.
  • 49. Try this at home… Consider what impact your funding and approval process has downstream: What would be the optimum batch size for smoothing the flow of work?
  • 50. Cost Value Schedule Speed Scope Feedback
  • 51. Key Performance Measures for IT Variable   Typical  measures   Usual  outcomes   Lean-­‐Agile  alternaBves   Time   Delivering  on  a   Incen-vises  hidden  -me   Maximise  speed  in  ge>ng  to   predicted  date   buffers  and  slower   the  point  where  value  starts   delivery   to  be  realised   Scope     Delivering  all  of  the   Incen-vises  gold  pla-ng   Minimize  size  of  work   originally  predicted   and  discourages   packages  to  maximize  both   scope   exploita-on  of    learning.   learning  and  early  release  of   value   Cost   Delivering  at  or   Incen-vises  hidden  cost   Maximize  value  delivered   below  a  predicted   con-ngencies,  pushing   (trade  development  cost   development  cost   costs  up.   against  the  opportunity    cost   of  delay)   Quality   Delivering  changes   Resistance  to  making  any   Shorten  feedback  cycles  at   with  zero  down-me   changes.  Overinvestment   many  levels  (coding,  defects…)   and  no  errors   in  tes-ng  &   documenta-on.  
  • 52. Try this at home… What are your key success measures? What is the impact of your success measures on value, speed and quality?
  • 53. Selected practices for Maersk Line First steps in improving the whole... Contains 8 practices selected for Maersk Line: 1.  Get to initial prioritisation faster 2.  Improve prioritisation 3.  Pull Requirements from Dynamic Priority List 4.  Reduce size of requirements 5.  Get to the point of writing code quickly 6.  Actively manage Work-In-Progress (WIP) 7.  Enable Faster Feedback 8.  Enable smooth, sustainable flow
  • 54. Faster Delivery How do we know the changes are an improvement? 208 days GCSS 104 days Half FACT SAP 168 days the 60 days time All 150 Apps Target 90
  • 55. Better Quality How do we know the changes are an improvement? 11.2 8.2 88% 80% 85% 2.2 2 1 0.3 Defects Delays Patches
  • 56. More Value How do we know the changes are an improvement? $44.80 $26.30 $4.10 MLIT Average GCSS FACT (Before) (After) Benefits per dollar invested
  • 57. And… delivering Cheaper Not what we were aiming for, but reducing waste has led to… 9% 22% $82.8 7.3 $75.6 6 Cost per hour Throughput
  • 58. People love it! “Fewer defects in a release to handle” “Daily calls provide good visibility “Smaller and clear of changes” changes delivered faster” “Less yelling & screaming” “We have not had such a smooth launch since Release 16 – I thought my phone had stopped working” “Absolutely worth it”
  • 59. highly   fit  for   knowingly   unknowingly   func-onal   purpose   broken   broken   chaos   Exis6ng  Process   highly   severely   func-onal   func-onal   ok   dysfunc-onal   dysfunc-onal   Team  dynamics   excellent   fair   fit  for  purpose   poor   miserable   Product  Quality   highly   severely   func-onal   func-onal   ok   dysfunc-onal   dysfunc-onal   PO  relaBon   highly   severely   func-onal   func-onal   ok   dysfunc-onal   dysfunc-onal   Vendor  relaBon   outstanding   support   suppor-ve   neutral   non-­‐suppor-ve   opposed   Mgmt  buy-­‐in   excellent   fair   ok   poor   miserable   IT  understanding   <10   10   20   50   >100   Dev  team  size   same   same  floor   building   same  city   same  con-nent   overseas   Proximity  to  us   <10  kUSD   10  kUSD   100  kUSD   1  MUSD   >10  MUSD   Budget  
  • 60. The Oracle The  oracle  predicts:   Drawn  out  and   MASSIVE   Failure  
  • 62. Address systemic issues To Do In Progress Mobilise new Reduce ”big projects design up Address faster front” Decouple organisational complexity funding and Fix availability Break work approval & quality of down Fix environments engineering Embed lean- practices agile mindset
  • 63. Our vision Faster delivery of value (<90 days lead time) More Faster Better Value Flow Quality Supported by an agile mindset Customer doesn’t really The developer doesn’t Things know what they want really know how to build it change
  • 64. Making it stick! Org chart Processes Roles Formal system Tools Informal system Behaviours Customs “Culture” Language Values Traditions Beliefs Stereotypes Taboos
  • 67. Anyone who has never made a mistake …has never tried anything new ” Albert Einstein