SIGIS                                                       T	  Con                                                   Marc...
Allan	  Kelly	  •  Training	  &	  Coaching	  for	  Agile	     adopGon	  and	  deepening	  •  Author:	       –  Changing	  ...
BusinessPatterns forSoftwareDevelopersOut now!John Wiley &SonsISBN:978-1119999249
Agile,	  Agile	  methods	  &	  Agile	  toolkit	                                              The	  State	  of	  Agile	   •...
Agile	  in	  context	  More	                                     XP	  prescrip&ve	                           Scrum	  …	   ...
Where	  do	  you	  find	  Agility?	  •  Sprinkling	  Agile	  dust	  does	  not	  make	     everything	  right	  •  Agile	  ...
Where	  is	  Agile?	                           The	  future	  is	                                      Agile	  is	  alread...
Agile	  is	   already	  here	                                                               (	                            ...
Defining	  Agile	                                                     Professor	  Donald	  Sull	  of	  the	  London	       ...
Why	  be	  Agile?	                                                           What	  is	  Agile	  to	  you?	  	            ...
I	  can’t	  think	  of	  anything	  more	  important	    than	  building	  an	  agile	  company,	  because	    the	  world...
Strategy,	  Porqolio	  &	  OperaGonal	  Strategic	                 • 	  PaGence:	  wait	  for	  right	  opportunity	      ...
Today	  -­‐	  OperaGonal	  Agility	                                     • 	  Exploit	  opportuniGes,	  cut-­‐costs	  faste...
Porqolio	  Agility	  (the	  next	  challenge)	                              • 	  CulGvate	  new	  opportuniGes;	  cull	  f...
Porqolio	  Agility	                              • 	  CulGvate	  new	  opportuniGes;	  cull	  failing	  ones	  PorFolio	  ...
Remember:	  Agile	  is	  Empirical	  •  Can’t	  know	               –  How	  long	  it	  will	  take	  unGl	  you	  start	...
Simple	  Porqolio	  recipe	  •  10th	  of	  each	  month	               –  Management	  by	  rhythm	  •  Each	  team	  15	...
Strategy	                              • 	  PaGence:	  wait	  for	  right	  opportunity	  Strategic	                 • 	  ...
Strategy	                                  Strategy	                OperaGonal	                                    Structu...
Strategy:	  OperaGonal	  Decisions	  •  Thousands	  of	  small	  decisions	  make	  difference	               –  Between	  ...
Strategy:	  OperaGonal	  Decisions	  •  Fail	  fast,	  fail	  cheap	               –  ExperimentaGon	  over	  planning	   ...
Strategy:	  Structure	  &	  Form	  •  Resource	  strategically	               –  Keep	  teams	  together	               – ...
Strategy:	  Structure	  &	  Form	  •  Limit	  Work	  In	  Progress	               –  End	  salami	  slicing	  people	  bet...
Strategy:	  Structure	  &	  Form	  •  Succession	  planning	  for	  Knowledge	               –  Grow	  your	  own	  expert...
What	  does	  this	  mean?	     Build	  effecGve	  delivery	                machine	                   	                 Th...
Move	  on	  up…	                                                Only	  about	  20%	  of	                                  ...
Push	  Up	  to	  Push	  Down	          Pushing	                                                             Pushes	       ...
Use	  Agile	  to….	  	  •  Validate	  the	  market	  in	  the	  market	                     	  Agile	  +	  Modern	  tools	...
The	  Agile	  Advantage	  •  Agile	  Strategy	                                                           Live	  or	  Die	 ...
Thank	  you!	  allan	  kelly	  So@ware	  Strategy	  Ltd.	                                     ...
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Objective Agility


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Objective Agility - what does it take to be an Agile company?

A look at Agile beyond software and operations/

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Objective Agility

  1. 1. SIGIS T  Con Marc ference   h  201 2  Objec&ve  Agility  What  does  it  take  to  be  an  Agile  company?   allan  kelly   Twi8er:  @allankellynet   h8p://   h8p://  
  2. 2. Allan  Kelly  •  Training  &  Coaching  for  Agile   adopGon  and  deepening  •  Author:   –  Changing  So8ware  Development:   Learning  to  be  Agile,  Wiley  2008.   97  Things  Every  Programmer  Should  Know   Henney,  2010     Context  EncapsulaGon  in   PaHern  Languages  of  Program  Design     Volume  5,  2006  (c)  Allan  Kelly   h8p://   2  
  3. 3. BusinessPatterns forSoftwareDevelopersOut now!John Wiley &SonsISBN:978-1119999249
  4. 4. Agile,  Agile  methods  &  Agile  toolkit   The  State  of  Agile   •   Quick  on  our  feet   (our  objecGve)   •   Deliver  quickly   •   Respond  to  change  rapidly   •   Seize  opportuniGes   Kanban   Agile  Methods   ...   DSDM   Promise  to  create  the  state  of  Agile   Scrum   XP   •   Test  Driven  Development,  Refactoring   The  Agile   •   IteraGons,  Time  boxing   Toolkit   •   User  Stories,  Feature  injecGon   •   RetrospecGves,  ....  (c)  Allan  Kelly   h8p://   4  
  5. 5. Agile  in  context  More   XP  prescrip&ve   Scrum  …   More   philosophical:   Agile   value,  idea  based   Lean  thinking   Organiza&onal  Learning   Applicability   (c)  Allan  Kelly   h8p://   5  
  6. 6. Where  do  you  find  Agility?  •  Sprinkling  Agile  dust  does  not  make   everything  right  •  Agile  paints  a  picture  of  sweetness  and  light   –  An  aspiraGon  •  Agile  is  a  reverse  engineered  term   –  A  term  used  to  describe  where  we  want  to  be  (c)  Allan  Kelly   h8p://   6  
  7. 7. Where  is  Agile?   The  future  is   Agile  is  already   already  here  -­‐  it   here  -­‐  it  is  just   is  just  unevenly   unevenly   distributed.     distributed.     William  Gibson,  author,   Allan  Kelly,  2010   NPR  interview  1999  (c)  Allan  Kelly   h8p://   7  
  8. 8. Agile  is   already  here   (   )   -­‐  it  is  just   •  Many  companies  exhibit   unevenly   some  Agile  characterisGcs   distributed.     –  Easier  for  small  companies  to   be  Agile   •  Large  companies   –  Agile  in  some  ways   –  Maybe  not  in  others     All  logos  and  trademarks   acknowledged  (c)  Allan  Kelly   h8p://   8  
  9. 9. Defining  Agile   Professor  Donald  Sull  of  the  London   Agile  is  what  both   the  latest  business   Business  School  …  defines  [Agility]   strategy  and   as  a  company’s  ability   so@ware   consistently  to  idenGfy  and   development   seize  opportuniGes  more   methodology  aspire   quickly  and  effecGvely  than   to  be.   rivals.   Repeatedly  demonstrate   Financial  Times,  20  November,  2007,  “Agility:   Flexibility  takes  over  from  planning”   agility  -­‐  not  a  one  off  (c)  Allan  Kelly   h8p://   9  
  10. 10. Why  be  Agile?   What  is  Agile  to  you?     •  Fashion?   –  Everyone  else  is  doing  it?   •  Reduce  costs?   •  Today:     •  Improve  ROI?   –  Agile  means  be8er   –  Which  means?   –  Be8er  IT  delivery   •  Avoid  failure?   •  Tomorrow     –  Agile  creates  new   opportuniGes   –  CompeGGve  advantage  (c)  Allan  Kelly   h8p://   10  
  11. 11. I  can’t  think  of  anything  more  important   than  building  an  agile  company,  because   the  world  changes  so  quickly  and   unpredictably   [Agility]  comes  in  different  forms,   but  basically  it’s  the  ability  to   quickly  adapt  to  or  even  anGcipate   and  lead  change.       Agility  in  the  broadest  form  affects   strategic  thinking,  operaGons,   technology  innovaGon  and  the   ability  to  innovate  in  products,   Michael  A  Cusumano   processes  and  business  models.   DisGnguished  Professor  of  Management  at   the  MIT  Sloan  School  of  Management  (c)  Allan  Kelly   h8p://   11  
  12. 12. Strategy,  Porqolio  &  OperaGonal  Strategic   •   PaGence:  wait  for  right  opportunity   •   Boldness:  to  act  Agility   •   Small  probes:  small  acquisiGons,  alliances,   minority  stakes  PorFolio   •   CulGvate  new  opportuniGes;  cull  failing  ones   •   Tools  to  evaluate  projects;  make  difficult  Agility   decisions   •   Develop  internal  staff  and  managers  Opera&onal   •   Exploit  opportuniGes,  cut-­‐costs  faster  than   compeGtors  Agility   • Spot  opportuniGes:  systems  to  gather  and  share   informaGon   •     Act  on  informaGon:  processes  to  make  decisions  Donald  Sull,  McKinsey  Quarterly,  December  2009,  h8ps://  (c)  Allan  Kelly   h8p://   12  
  13. 13. Today  -­‐  OperaGonal  Agility   •   Exploit  opportuniGes,  cut-­‐costs  faster  than  compeGtors  Opera&onal   • Spot  opportuniGes:  systems  to  gather  and  share  Agility   informaGon   •     Act  on  informaGon:  processes  to  make  decisions   Where  we  are  today   •   IT  centric   Tension  with  non-­‐Agile     •   Scrum  for  Project  Management   •   Porqolio     •   XP  for  Engineering   •   Strategy   •   Lean  for  Improvement   Are  we  there  yet?  (c)  Allan  Kelly   h8p://   13  
  14. 14. Porqolio  Agility  (the  next  challenge)   •   CulGvate  new  opportuniGes;  cull  failing  ones  PorFolio   •   Tools  to  evaluate  projects;  make  difficult  decisions  Agility   •   Develop  internal  staff  and  managers  •  Apply  Agile  principles   –  Time  box  /  Regular  rhythm   –  Decide  as  late  as  possible   –  Decide  on  value   –  Embrace  change  (c)  Allan  Kelly   h8p://   14  
  15. 15. Porqolio  Agility   •   CulGvate  new  opportuniGes;  cull  failing  ones  PorFolio   •   Tools  to  evaluate  projects;  make  difficult  decisions  Agility   •   Develop  internal  staff  and  managers  •  End  annual  planning  cycle   –  Embrace  experimentaGon  •  IteraGve  Porqolio  review   –  Regular  schedule  –  monthly,  quarterly  •  Projects  &  Teams  demonstrate:     RIP:  14  September  2008   –  Value  added  v.  Cost  •  Align  with   –  Strategy,  Risk  profile,  Resourcing  (c)  Allan  Kelly   h8p://   15  
  16. 16. Remember:  Agile  is  Empirical  •  Can’t  know   –  How  long  it  will  take  unGl  you  start  doing   –  How  many  people  you  need  unGl  you  start  doing  •  Teams  have  responsibility   –  Give  them  the  tools,  give  them  the  problem   Do  a  li8le  –  Measure  -­‐  Adjust   Deming  /  Shewhart  cycle   Eric  Ries  –  Lean  Start-­‐Up   PDCA:  Plan,  Do,  Check,  Adjust   Build-­‐Measure-­‐Learn  (c)  Allan  Kelly   h8p://   16  
  17. 17. Simple  Porqolio  recipe  •  10th  of  each  month   –  Management  by  rhythm  •  Each  team  15  minutes   –  Benefits  delivered  /  opGons  created  this  month   –  Cost  this  month   –  What’s  next?   –  Alignment  to  strategy  (why  do  this?)   –  Requests,  impediments,  new  opportuniGes  •  AcGon:  Status  Quo,  Grow,  Shrink,  Close  •  Balance  company  resources,  risk,  innovaGon.  etc.  (c)  Allan  Kelly   h8p://   17  
  18. 18. Strategy   •   PaGence:  wait  for  right  opportunity  Strategic   •   Boldness:  to  act  Agility   •   Small  probes:  small  acquisiGons,  alliances,   minority  stakes  (c)  Allan  Kelly   h8p://   18  
  19. 19. Strategy   Strategy   OperaGonal   Structure  &   Decisions   Form   Strategy  realized  in  OperaGonal  Decisions  and   the  Structure/Form  of  organizaGon    (c)  Allan  Kelly   h8p://   19  
  20. 20. Strategy:  OperaGonal  Decisions  •  Thousands  of  small  decisions  make  difference   –  Between  Agile  or  not   –  Between  strategy  alignment  or  not  •  Know  the  decisions  you  can  delay   –  And  those  you  cannot   –  Avoid  early  commitment   –  Recognize  value  in  opGons  (c)  Allan  Kelly   h8p://   20  
  21. 21. Strategy:  OperaGonal  Decisions  •  Fail  fast,  fail  cheap   –  ExperimentaGon  over  planning   –  Modern  tools  (+  Agile  methods)  =  cheap  to  try   –  Only  way  to  know  is  to  try  •  Know  thy  customer   –  Who  are  they?   –  What  problems  to  they  have?   –  What  problem  do  you  solve?  (c)  Allan  Kelly   h8p://   21  
  22. 22. Strategy:  Structure  &  Form  •  Resource  strategically   –  Keep  teams  together   –  Start  small,  grow  slowly   –  Shrink  to  close  •  VerGcal  teams  with  responsibility   –  End-­‐to-­‐end  delivery  •  Balance  Managers  to  workers   –  Avoid  too  many  Chiefs  and  too  few  Indians  (c)  Allan  Kelly   h8p://   22  
  23. 23. Strategy:  Structure  &  Form  •  Limit  Work  In  Progress   –  End  salami  slicing  people  between  projects   –  More  WIP,  Less  delivered   –  WIP  makes  it  hard  to  see  issues   –  Task  switching  is  expensive  •  Focus  on  outputs   –  Not  inputs   –  Value  add  over  cost  (c)  Allan  Kelly   h8p://   23  
  24. 24. Strategy:  Structure  &  Form  •  Succession  planning  for  Knowledge   –  Grow  your  own  experts   –  Outsourcing  can  hollow  out  knowledge  •  Short  planning  horizons  with  feedback   –  Railway  Gmetable  Porqolio  reviews   –  Plan  early,  plan  o@en,  include  feedback  (c)  Allan  Kelly   h8p://   24  
  25. 25. What  does  this  mean?   Build  effecGve  delivery   machine     Then     Move  outwards  and  upwards   (c)  Allan  Kelly   h8p://   25  
  26. 26. Move  on  up…   Only  about  20%  of   features  &  funcGons  •  Know  your  customer   in  typical  custom   –  Segment   so@ware  are  used   –  Target   Mary  &  Tom  Poppendieck  •  Say  No   ImplemenGng  Lean  So8ware   Development  2007   –  Saying  Yes  is  easy   –  Saying  No  is  real  strategy  (c)  Allan  Kelly   h8p://   26  
  27. 27. Push  Up  to  Push  Down   Pushing   Pushes   Agile  up   Agility   to   down  by   Porqolio   devolving   &   decisions   Strategy   •  Employees  make  decisions  when  &   where  they  are  needed   •  More  informaGon,  more  Gmely   •  Be8er  decisions  (c)  Allan  Kelly   h8p://   27  
  28. 28. Use  Agile  to….    •  Validate  the  market  in  the  market    Agile  +  Modern  tools  =                Cheap  to  Try  =                Cheap  to  Fail  •  Try:  fail  fast,  fail  cheap   –  Know  when  to  try   –  Know  when  to  stop  •  Keep  it  Simple  (c)  Allan  Kelly   h8p://   28  
  29. 29. The  Agile  Advantage  •  Agile  Strategy   Live  or  Die   –  Try  lots  of  stuff,  see  what  works   Agile    •  Agile  Porqolio   –  Keep  experiments  flowing   Think  Agile   –  Stop  the  stuff  that  doesn’t  work  •  Agile  OperaGons   –  Keep  it  fast   Agile  Toolkit   –  Keep  it  cheap   &  Methods   –  Keep  quality  (c)  Allan  Kelly   h8p://   29  
  30. 30. Thank  you!  allan  kelly  So@ware  Strategy  Ltd.   QuesGons?  Twi8er:  @allankellynet  (c)  Allan  Kelly   h8p://   30