Discussion of agile strategy tools at PM World in San Jose, CA May2016

1. Linking Agile Strategy to Execution
Gail Ferreira

2. Agile Project Management
@LeanAgilist
@DrGail

3. Outline
1. Background
2. Strategy Planning Tools (Hoshin X, Balanced
Scorecard)
3. The Role of Culture in Strategy Planning
4. Case Study
5. Wrap Up

4. Lean Values using Agile practices
Capacity Planning
(Queuing Theory)
Enterprise Backlogs, Product Backlogs, Prioritization based Biz Value, Release Planning,
Pull (Kanban) Prioritized backlog, Kanban (Scrum board) tracking/status, Feature focused, User Scenarios to Stories,
Personas, Iterative and Incremental, User Acceptance Testing, Sprint Goals, Sprint Planning (only 1-2
iterations),
Takt Time (customer
to customer)
Backlog to Production measurement
Single Piece Flow Small stories, feature based/slicing and swarming, Iterative and Incremental
Waste Elimination Only develop stories that are actionable, only do what’s absolutely necessary, simplicity in all things,
automation, excellence in engineering,
Lean Agile/Scrum/XP
Standardization Standard dev practices, framework usage, communications model
Value Threads Story Mapping from Roadmap to Release to MMF to Epic to Story
Automation Automated testing, Continuous Integration, Code Health, Easy Deploy
Line Stop (Jidoka,
Poka Yoke, Andon)
Refactor, Reuse, Big Visuals, Iterate, Incremental
Fail Fast Iterate, Inspect and Adapt, Retrospectives
No defects No defects, Definition of Done, Test Driven Development, Refactor, Shippable code
Go See Yourself Customer close by, Prototypes, Iterative and Incremental, Early Deploy
Remove Waste Customer close, decisions at lowest level, good estimation, actionable user stories, no gold-plating, team
instead of cowboy, remove needless metrics, automation of almost all testing, no over-the-wall, biz/IT
combined teams, simplify governance, daily stand-ups
Workload Leveling,
Concurrent Eng.
Small stories, slicing and swarming, cross-functional team, daily stand-ups
Quick Changeover Cross-functional team, simple and repeatable practices, no individual Code ownership, consistent build
and deploy, team rotations, daily stand-ups
Automation Automated test, integration, build, deploy tools, andon, communication
Orthogonal Arrays OATS Pairing with Dev and QA, Automation
Increased
accessibility
to Value
Efficiency &
Capability,
Speed
Cost
Quality
Customer
Value
Value Stream
Flow
Customer
Pull
Perfection
Lean Principles
Lean
Tools
Reduce
Waste
+ Six Sigma
Optimal
use of
Resources
Cycle Time
“Lean” is a systematic,
continuous improvement
approach that focuses on
eliminating waste from
your processes.

6. Kaizen
“Change for the Good”

7. Lean + Kaizen + Agile =
Organization as a flow ….

8. Finding Your True North
• Related to company culture
Assets, know-how,
strengths
• Customers you serve (or
want to serve)
• Market, trends,
developments
• What words describe you?
Your business?

9. Defining Value and Vision- Hoshin Kanri

10. Hoshin Kanri

11. Hoshin Kanri

12. Hoshin Kanri

13. Hoshin Kanri
Improve Margin by 5% points by 4Q: Increase of $250 k

14. Hoshin Kanri
Improve Margin by 5% points by 4Q, Increase of $250k.

15. 16
Key Agile Metrics – Using IT Balanced Scorecard
Balanced Scorecard Strategic Objectives Performance Measures
Financial Compliance Improve Budget Performance 1. Time to Value
2. Cost of Value
3. Earned value / release
Customer Value Increase Customer Satisfaction 1. Cycle time.
2. Customer Satisfaction ratings.
Processes Project Delivery 1. Velocity
2. Avg project cycle time
3. Schedule performance index
Decrease Defects 1. Defects
2. Unit Test Coverage
3. System Test Coverage
4. UAT Defects Found
5. Running tested features
Learning and Growth Enable Agile Transformation 1. Increase Agile Utilization.
2. Build community of practice.
Reproducibility: Balanced Scorecard/KPIs

16. Reproducibility: Balanced Scorecard/KPIs
Value Goal IT Goal Measure Lead/ Lag Audience Range Frequency Target Grade
Optimize
Capacity and
Cost
Increase
accuracy of
estimates
WorkdriverE
stimate
Variance
Lag Org 5-10% YTD YTD, Monthly > 60% A
Root Cause
Pareto
Lead Team Iteration Varies F
On Time
Project
Delivery
Schedule
Variance
Lag Org 85% +/- 5
days
YTD, Monthly >60% B
Velocity Lead Program <10%
Variance
Iteration,
Release
<5%
Variance
B
Decrease
Cost through
Increased
Quality
Decrease
Production
Defects
Audit
Compliance
Increase
Margin
through
frequent
delivery
Increase
Intent
Throughput
SCORECARDBalanced Scorecard
Financial
Compliance
Customer
Value
Automated
Test Results
Code
Quality
Customer
Satisfaction
Learning &
Growth

17. Strategic X Matrix Example

18. Changing Culture Aligns Business and IT
Strategic Change Management
(Business)
IT Change Management
Organization Change Management
(People Side)
Organization Level
Group Level
Individual Level

19. What Drives Culture?

20. Case Study: Global Physician Polling
Application – Value Stream Map

21. Case Study: Global Physician Polling
Application – Value Stream Map

22. • Strategy Execution has been around a long time….time
for a change
• We can adopt Lean + Agile best practices from software
development for strategy execution for non software
projects...with refined frameworks, proven methods &
tools
• There needs to be a top driven culture for Lean Agile
Strategy Execution: It is everyone’s job
Conclusion