Rigorous independent Governance - The New Equation For Sustainable Competitive Advantage

RIGOROUS, INDEPENDENT GOVERNANCE
& THE NEW EQUATION FOR SUSTAINABLE COMPETITIVE ADVANTAGE
Presented by Ravi Verma, Moderated by Eric Naiburg

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© 1993-2016 Scrum.org, All Rights Reserved
About: Ravi Verma
•PST & EBMgt Consultant with Scrum.org
•Founder & The Org Whisperer at SmoothApps
•~20 years of experience in Software Delivery
•Agile Coach experience with companies from 10 to 10K team members
•Co-creator of Software Code of Ethics, Scrum Pulse & Scrum Tapas
•Creator of Sabotagile Manifesto, Sabotagile Principles and Agilato Video Series
•Binge watcher of crime dramas on Netflix and Amazon Prime (mute + captions)
•Vegetarian opposed to eating most vegetables (especially green ones)

“I LOVE
SCRUM!”
“I LOVE
AGILE!”
6
“I HATE
SCRUM!”
“I HATE
AGILE!”
AUDIENCE?

“I LOVE
SCRUM!”
“I LOVE
AGILE!” 7
“I HATE
SCRUM!”
“I HATE
AGILE!”

“I LOVE
SCRUM!”
“I LOVE
AGILE!”
8
“I HATE
SCRUM!”
“I HATE
AGILE!”

DO YOU LOVE
SUSTAINABLE
MEASURABLE
BUSINESS
VALUE?
9
DO YOU HATE
NEEDLESS
DESTRUCTION
OF HUMAN
POTENTIAL?

“I LOVE
SCRUM!”
“I LOVE
AGILE!”
10
“I HATE
SCRUM!”
“I HATE
AGILE!”YOU ARE IN THE
RIGHT PLACE

RIGOROUS
REGULAR
GOVERNANCE

FRAMEWORK
INDEPENDENT
GOVERNANCE

VALUE BASED
GOVERNANCE

FOR…
SUSTAINABLE
COMPETETIVE
ADVANTAGE

UNSUSTAINED
COMPETETIVE
ADVANTAGE
17
SUSTAINED
COMPETETIVE
ADVANTAGE
ANY EXAMPLES…?

UNSUSTAINED
COMPETETIVE
ADVANTAGE
19
SUSTAINED
COMPETETIVE
ADVANTAGE
WHAT MAKES THEM DIFFERENT?

COMPLACENCE
20
CLARITY

COMPLACENCE
21
CLARITY
BLOCK-BERRY
SPACE-MART
SYNDROME

COMPLACENCE
22
CLARITY
YES, BUT IN
THE REAL
WORLD...
SYNDROME

WHAT ARE THE MOST
VALUABLE QUESTIONS
WE COULD HAVE ASKED?

WAS IT
VALUABLE?

WAS IT
TIMELY?

WAS IT
SUSTAINABLE?

DELIVER
VALUE
SUSTAIN
VALUE
SUSTAIN
VALUE
CONCEIVE
VALUE
Was it valuable? Was it timely?
Was it sustainable?

BUT HOW DO
WE KNOW?

DELIVER
VALUE
SUSTAIN
VALUE
SUSTAIN
VALUE
CONCEIVE
VALUE
Was it sustainable?

SUSTAINABLE
COMPETETIVE
ADVANTAGE
=Ev{CxDxS}

GUT-BMgt
HIPPO-BMgt
33
EBMgt™EVIDENCE

WHAT ARE THE
TOP 3 INDICATORS
FOR EACH KVA
IN YOUR CONTEXT…?
34

TEAM VELOCITY
INDIVIDUAL VELOCITY
%-AGE INCREASE IN VELOCITY
%-AGE SPRINT COMMITMENT MET
DEFECT LEAKAGE RATIO
%-AGE ON-TIME DELIVERY
%-AGE ON-BUDGET DELIVERY
%-AGE ON-SCOPE DELIVERY

“WHAT GETS MEASURED
GETS MANAGED”
-Peter Drucker

ILLUSTRATIVE KVA’S / KPI’S SCRUM.ORG EBMgt ™
37
CurrentValue Ability to InnovateTime to Market
Installed
Version Index
Usage Index
Innovation
Rate
Defects
Release
Frequency
Release
Stabilization
Cycle Time
Revenue per
Employee
Employee
Satisfaction
Customer
Satisfaction
Product Cost
Ratio
1. CONCEIVE VALUE2. DELIVER VALUE3. SUSTAIN VALUE

ELEVATE
EMPIRICISM
TO EXECUTIVES
E3

SUSTAINABLE
COMPETETIVE
ADVANTAGE
E3 =Ev{CxDxS}

WHAT MIGHT BE
THE TOP 3
OBJECTIONS…?

1. CORRECTNESS

2. CAUSALITY

3. COMPLEXITY

HOW CAN WE
MANAGE
THE 3 C’s
1.CORRECTNESS
2.CAUSALITY
3.COMPLEXITY

SUSTAINABLE
COMPETETIVE
ADVANTAGE
E3 = Ev{CxDxS} + MC3

SO NOW WE HAVE
KVA’S & KPI’S

ARE THEY
LEADING
OR
LAGGING

WHY BOTHER…?

LEADING LAGGING
Usually…
Business outcome related
Easy to measure
Hard to influence
Usually…
Activity related
Hard to measure
Easy to influence

Plot indicators on this spectrum…
50
LEADING LAGGING
CONCEIVE VALUE
DELIVER VALUE
SUSTAIN VALUE

What’s the point of maximum leverage?
How would you influence it?
51
LEADING LAGGING
CONCEIVE VALUE
DELIVER VALUE
SUSTAIN VALUE

LEADING LAGGING
CONCEIVE VALUE
DELIVER VALUE
SUSTAIN VALUE
What’s the ultimate lag indicator for
your product? Why?

WILDLY IMPORTANT GOAL
Express your product’s ultimate lag indicator as a WIG…
• Increase / Decrease:
• From:
• To:
• By:
53
INDICATOR
CURRENT VALUE
TARGET VALUE
TARGET DATE

VALUE BASED SCOREBOARD
Time
ULTIMATE LAG INDICATOR
LEADING INDICATORS
QUALITY ISSUES
Time
Time
CYCLE TIME
Time
TimeTime
Time
VALUE
TimeTime Time
ENGAGEMENT
Create a value
based scoreboard

IMAGINE…

YOU COULD TRAVEL
TO THE FUTURE…

YOUR CURRENT COMPANY
IS THE POSTER-CHILD OF
BLOCK-BERRY-SPACE-MART
SYNDROME OF THE FUTURE

HOW WOULD
YOU FEEL?

WHAT WOULD YOU DO TODAY
TO CREATE A BETTER TOMORROW?

WHAT MIGHT GET IN THE WAY?

COMPLACENCE
61
CLARITY
CHOOSE WISELY!
EVIDENCE

REGULARLY
INSPECT
VALUE

USE WHATEVER
DELIVERY
FRAMEWORK
WORKS FOR YOU

IN CASE
YOU USE
SCRUM…

•Inspect your product scoreboard
•Learn
•Adapt your future
65

GUT-BMgt
HIPPO-BMgt
Activity-BMgt
Output-BMgt
Efficiency-BMgt
Scope-Time-Budget-
BMgt
Guarantee-BMgt
66
EBMgt™
Effectiveness-BMgt
Outcome-BMgt
Value-BMgt
Adaptation-BMgt
Humility-BMgt
Curiosity-BMgt
Learning-BMgt
EVIDENCE

ENABLE RIGOROUS, REGULAR VALUE DRIVEN GOVERNANCE
VALUE…
1. UNIFIES US (FRAMEWORKS POLARIZE US)
2. RESONATES WITH EXECUTIVES
3. ENABLES SUSTAINABLE COMPETETIVE ADVANTAGE

SUSTAINABLE
COMPETETIVE
ADVANTAGE
E3 = Ev{CxDxS} + MC3

APPLICATION
69
DELIVER
VALUE
SUSTAIN
VALUE
1. Incrementally develop your product
scoreboard.
1. Add one indicator every 30 days or less
2. Inspect every 30 days or less
2. If you use Scrum…
1. Inspect during each Sprint Review
2. Extract validated learning in Sprint Review and
Sprint Retrospective
3. Adapt your direction every 30 days or less!
• Backlog Refinement
• Release Planning
• Sprint Planning

“ONLY THE
PARANOID
SURVIVE”
-Andy Groves

LEARN MORE…
71

1. What was the most
valuable insight from this
presentation?
2. How will you apply it to
achieve sustained
business Agility…?
3. What would you like to
learn more about?
Q&A / TAKE-AWAYS
72
MOST VALUABLE
INSIGHT
HOW YOU WILL
APPLY IT
WHAT YOU WILL
EXPLORE

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