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The Business of Agile: Better, Faster, Cheaper

Ryan Ripley relates that during his last agile transformation project, a key stakeholder asked, “Why are we adopting agile?” Ryan talked about increasing quality, delivering software sooner, and fostering a more collaborative relationship with business partners. After a few moments, the stakeholder raised his hand and said, “I get all that. But how is all of this agile stuff any better, faster, or cheaper than what we do today?” Ryan says that leaders must answer the better, faster, cheaper question if they want their agile transformation and associated projects to move forward. To prepare for this critical question, Ryan explores how better, faster, cheaper translates in an agile organization. Take away experiments to use with your agile teams to define better in your organization, an understanding of how agile helps teams deliver value faster to their stakeholders, and how working in an agile way can make business costs cheaper by reducing team turnover, enhancing learning through pairing, and reducing overall costs of product ownership.

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The Business of Agile: Better, Faster, Cheaper

  1. 1. AW1 Agile Leadership 11/16/2016 11:30:00 AM The Business of Agile: Better, Faster, Cheaper Presented by: Ryan Ripley Independent Consultant Brought to you by: 350 Corporate Way, Suite 400, Orange Park, FL 32073 888--‐268--‐8770 ·∙ 904--‐278--‐0524 - info@techwell.com - http://www.stareast.techwell.com/
  2. 2. Ryan Ripley Independent Consultant For the past ten years Ryan Ripley has worked on agile teams in development, ScrumMaster, and management roles. He’s worked at various Fortune 500 companies in the medical device, wholesale, and financial services industries. Ryan is great at taking tests and holds the PMI-ACP, PSM I, PSM II, PSE, PSPO I, PSD I, CSM, and CSPO agile certifications. He lives in Indiana with his wife Kristin and three children. Ryan blogs at ryanripley.com, hosts the Agile for Humans podcast available on iTunes, and is on Twitter @ryanripley.
  3. 3. The Business of Agile: BETTER – FASTER – CHEAPER
  4. 4. http://ryanripley.com ryan@ryanripley.com @ryanripley A podcast devoted to the individuals and interactions that make agile work.
  5. 5. #BSCADC
  6. 6. @ryanripley #BSCADC
  7. 7. @ryanripley #BSCADC
  8. 8. @ryanripley #BSCADC
  9. 9. http://money.cnn.com/2015/05/12/autos/gm-ignition-switch-recall-100-deaths/
  10. 10. http://www.mcall.com/news/local/watchdog/mc-obamacare-website-failure-watchdog-20160224-column.html
  11. 11. http://www.bloomberg.com/news/articles/2016-04-28/volkswagen-s-namesake-brand-stumbles-to-loss-on-emissions-crisis
  12. 12. @ryanripley #BSCADC
  13. 13. @ryanripley #BSCADC
  14. 14. @ryanripley #BSCADC
  15. 15. @ryanripley #BSCADC
  16. 16. AGILE IMPACTS EVERYONE ?????? • Organizational Change • Leadership Change • Team Change • Status Change • Job Description Change • Role Change • Culture Change @ryanripley #BSCADC
  17. 17. SCRUM IN ONE SLIDE Development Sprint Planning Sprint Review Sprint Retrospective Sprint ROLES: Scrum Master, Product Owner, Developer ARTIFACTS: Product Backlog, Sprint Backlog, Product Increment
  18. 18. PRODUCT OWNER SCRUM MASTER STAKEHOLDERS DEVELOPMENT TEAM WHAT? WHY? IMPEDIMENTS SYSTEM IMPEDIMENTS FEEDBACK (HOW)
  19. 19. SCRUM MANAGEMENT • Manage the boundaries • Build Stable Teams • Hire people – Grow skills • Act transparently • Examine systems & correct faulty ones • Give guidance when asked/needed • Reach across org charts • Definition of Done • Continuous improvement • Expect working software every sprint Vision – Direction – Goals “I finally have time to do my job.”
  20. 20. “I get all that… BUT how is all of this agile stuff any better, faster, or cheaper than what we do today?” @ryanripley #BSCADC
  21. 21. @ryanripley #BSCADC
  22. 22. @ryanripley #BSCADC Creative Commons – dchrisoh “untitled”
  23. 23. Stacey Diagram • Simple: Everything is known • Complicated: More is known than unknown • Complex: More is unknown than know • Chaotic: Very little is known
  24. 24. BETTER SMARTER
  25. 25. @ryanripley #BSCADC
  26. 26. At the heart of agile is experimentation
  27. 27. We are uncovering better ways of developing software by doing it and helping others do it. Through this work we have come to value: Individuals and interactions over processes and tools Working software over comprehensive documentation Customer collaboration over contract negotiation Responding to change over following a plan That is, while there is value in the items on the right, we value the items on the left more.
  28. 28. “Three pillars uphold every implementation of empirical process control: transparency, inspection, and adaptation.” --The Scrum Guide
  29. 29. Scrum is not a problem solving framework. It’s a problem finding framework.
  30. 30. @ryanripley #BSCADC
  31. 31. Better means different things at different times
  32. 32. @ryanripley #BSCADC Creative Commons – Roger Schultz “Cockpit”
  33. 33. Copyright © 2015 Scrum Alliance®
  34. 34. @ryanripley #BSCADC
  35. 35. EPISODE 35: Agile Driven Coaching with Troy Magennis http://ryanripley.com/data-driven-agile-coaching-with-troy-magennis/ An in-depth discussion on using metrics to drive coaching insights Creative Commons – Michael Nugent “Safety” “The second you embarrass someone with a metric, your metric program is over.”
  36. 36. EPISODE 35: Agile Driven Coaching with Troy Magennis http://ryanripley.com/data-driven-agile-coaching-with-troy-magennis/ An in-depth discussion on using metrics to drive coaching insights “Metrics are often in contention with one another.” Creative Commons – Hans Splinter “balance”
  37. 37. EPISODE 35: Agile Driven Coaching with Troy Magennis http://ryanripley.com/data-driven-agile-coaching-with-troy-magennis/ An in-depth discussion on using metrics to drive coaching insights “Your metrics have a half- life of about 3 months…”
  38. 38. EPISODE 35: Agile Driven Coaching with Troy Magennis http://ryanripley.com/data-driven-agile-coaching-with-troy-magennis/ An in-depth discussion on using metrics to drive coaching insights “People want to be treated fairly and know when they aren’t.”
  39. 39. EPISODE 35: Agile Driven Coaching with Troy Magennis http://ryanripley.com/data-driven-agile-coaching-with-troy-magennis/ An in-depth discussion on using metrics to drive coaching insights “Trends, not individual data points.”
  40. 40. EPISODE 35: Agile Driven Coaching with Troy Magennis http://ryanripley.com/data-driven-agile-coaching-with-troy-magennis/ An in-depth discussion on using metrics to drive coaching insights “Favor the cheapest metric.” Creative Commons – 401k “Money”
  41. 41. EPISODE 35: Agile Driven Coaching with Troy Magennis http://ryanripley.com/data-driven-agile-coaching-with-troy-magennis/ An in-depth discussion on using metrics to drive coaching insights “Our highest priority is to satisfy the customer through early and continuous delivery of valuable software.” Creative Commons – klt “projection”
  42. 42. 5 Metrics to Help Get Started 1. Throughput 2. Defect Density 3. Customer Satisfaction 4. Team Satisfaction 5. Value Delivered Per Sprint
  43. 43. 5 Metrics to Help Get Started 1. Throughput 2. Defect Density 3. Customer Satisfaction 4. Team Satisfaction 5. Value Delivered Per Sprint
  44. 44. @ryanripley #BSCADC
  45. 45. People do not fail, systems do • Commitment to continuous improvement • Trend more important than individual data points • Investigate the bottlenecks • Monitor cycle time
  46. 46. 5 Metrics to Help Get Started 1. Throughput 2. Defect Density 3. Customer Satisfaction 4. Team Satisfaction 5. Value Delivered Per Sprint
  47. 47. The number of bugs discovered during a sprint • Commitment to quality • Trend more important than individual data points • Increasing # of bugs could mean too much WIP • Downward trends could point to improvements in practices
  48. 48. 5 Metrics to Help Get Started 1. Throughput 2. Defect Density 3. Customer Satisfaction 4. Team Satisfaction 5. Value Delivered Per Sprint
  49. 49. How happy is your customer? • Commitment to alignment • Trend more important than individual data points • Address negative feedback quickly • Glad – Mad – Sad is low-res means to collect data • Net-promoter scoring
  50. 50. @ryanripley #BSCADC
  51. 51. Copyright © 2015 Scrum Alliance®
  52. 52. 5 Metrics to Help Get Started 1. Throughput 2. Defect Density 3. Customer Satisfaction 4. Team Satisfaction 5. Value Delivered Per Sprint
  53. 53. How happy is your team? • Commitment to safety • Trend more important than individual data points • Possible retrospective activity • Is it safe to say you’re unhappy about something?
  54. 54. @ryanripley #BSCADC
  55. 55. 5 Metrics to Help Get Started 1. Throughput 2. Defect Density 3. Customer Satisfaction 4. Team Satisfaction 5. Value Delivered Per Sprint
  56. 56. What is the value of the work? • Commitment to delivery • Trend more important than individual data points • Higher numbers expected earlier in the project • Downward trend could be an indicator to end the project
  57. 57. “Wait…what about velocity??? I love that metric.” @ryanripley #BSCADC
  58. 58. @ryanripley #BSCADC
  59. 59. @ryanripley #BSCADC
  60. 60. Agile enables “better” by helping us act smarter
  61. 61. EXERCISE 1
  62. 62. @ryanripley #BSCADC
  63. 63. @ryanripley #BSCADC
  64. 64. @ryanripley #BSCADC
  65. 65. @ryanripley #BSCADC
  66. 66. @ryanripley #BSCADC
  67. 67. FASTER SOONER
  68. 68. @ryanripley #BSCADC
  69. 69. “Now you’re talking: Baby we were born to run!!!” @ryanripley #BSCADC
  70. 70. @ryanripley #BSCADC
  71. 71. @ryanripley #BSCADC
  72. 72. Agile isn’t faster…
  73. 73. @ryanripley #BSCADC
  74. 74. Cheer up Boss. We do get a lot of things SOONER. @ryanripley #BSCADC
  75. 75. @ryanripley #BSCADC
  76. 76. PROJECT • Value delivery • Features • Alignment • Predictability • Decreased risk • Engagement • Adaptability • Visibility LEARNING • Continuous Improvement • Spikes • Knowledge sharing • Onboarding FEEDBACK • Fail Fast • Know right thing/right time sooner • Quality improvement • Trust @ryanripley #BSCADC
  77. 77. @ryanripley #BSCADC
  78. 78. PROJECT • Value delivery • Features • Alignment • Predictability • Decreased risk • Engagement • Adaptability • Visibility LEARNING • Continuous Improvement • Spikes • Knowledge sharing • Onboarding FEEDBACK • Fail Fast • Know right thing/right time sooner • Quality improvement • Trust @ryanripley #BSCADC
  79. 79. But the development isn’t faster…
  80. 80. Sprints are fixed length. Teams are fixed size. Going faster can only mean lower quality…and that isn’t faster.
  81. 81. @ryanripley #BSCADC
  82. 82. @ryanripley #BSCADC
  83. 83. CHEAPER SAFER
  84. 84. No matter which methodology your team uses, you will spend the same amount to employ them
  85. 85. Comparing cost of output doesn’t work either If an agile team builds a better feature faster than a waterfall team builds a similar feature, are we satisfied if what we really needed was a different feature?
  86. 86. @ryanripley #BSCADC
  87. 87. Simplicity - the art of maximizing the amount of work not done - is essential
  88. 88. @ryanripley #BSCADC
  89. 89. Customer collaboration over contract negotiation 1. Transparency is essential 2. The team is upfront about their limitations 3. Stakeholders are open about their needs
  90. 90. Copyright © 2015 Scrum Alliance®
  91. 91. EPISODE 37: Cost of Delay with Johanna Rothman http://ryanripley.com/afh-037-cost-of-delay-with-johanna-rothman/ An in-depth discussion on how Cost of Delay impacts projects
  92. 92. EPISODE 37: Cost of Delay with Johanna Rothman http://ryanripley.com/afh-037-cost-of-delay-with-johanna-rothman/ An in-depth discussion on how Cost of Delay impacts projects Causes of Delays: • Missed Dates • Multitasking • Experts • Gold Plating • Technical Debt • Doing the Wrong Things • Indecision • Not Starting • Dependencies
  93. 93. @ryanripley #BSCADC Creative Commons – Jesus V “blackjack”
  94. 94. WHY are you changing the way you work? • Visualize the goal • Set targets • Measure the improvements • Show the value
  95. 95. BETTER – FASTER - CHEAPER SMARTER – SOONER – SAFER
  96. 96. Alignment
  97. 97. That’s what I’m talking about! @ryanripley #BSCADC
  98. 98. http://ryanripley.com ryan@ryanripley.com @ryanripley A podcast devoted to the individuals and interactions that make agile work.

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