ING Direct Australia has been transforming their organization to work in an Agile way since 2010. They conducted three waves of transformation:
Wave 1 focused on testing Agile but concluded it would not work for their bank. Wave 2 had some success with two pilot teams but struggled to scale Agile across large projects. Wave 3 involved reorganizing into domains and guilds, establishing new roles, and adopting practices like PACE to help teams deliver value faster through smaller, more frequent releases. This led to major improvements in time to market, on-budget deliveries, and team engagement. The next steps are continuing to evolve the organization and empowering teams to innovate. The key lessons are to start small, build transformation
2. About ING Direct Australia
• Financial Services
• Part of ING Group (Headquarters in Amsterdam)
• Australia’s Most Recommended Bank*
• Over 1.000 employees – 52.000 globally
• 1.5 million customers
Source: Nielsen Consumer & Media View Jul ‘16 – Dec ‘16 (n=9,570) when compared by customers of 15 other banks operating in Australia.
6. Context
2010
• First attempt at Agile
• No internal Agile knowledge
• Limited executive buy in and awareness
Wave 1
7. What we did
• Partnered with Agile delivery consultancy
• Focused on the project delivery
• Embedded ING staff into the project team
• Ran it as a large programme
Wave 1
8. Outcome:
Agile is not for us
• We are a bank
• Our industry is too regulated
• We are too complex
• Agile won’t work here, we
are different
Wave 1
14. Part 1 – Pilot with 2 teams
Dec 2013 – Jun 2014
Context:
• Need to speed up digital delivery
• Building mobile & tablet apps
• Strong buy-in all the way up to CEO
• Full autonomy
• Siloed IT & Digital Channels organisation
Wave 2
15. Part 1 – What we did
• Ran the project internally
• Introduced the Scrum Master
• Formed 2 small cross functional teams
• Adopted Scrum
• Isolated pilot in the Digital space
• Ring-fenced the team
• Bank in a Box & Private cloud
Wave 2
16. Outcome:
It works!
• iPad app released in 6 months
• 100% team engagement
• Collaboration through the roof
• Business stakeholders were
fully involved
Wave 2
18. Part 2 – All teams agile
Jul 2014 – Dec 2015
Context
• Large investment in the Digital and new products
• IT budget tripled from previous year
• 3 major programs kicking off at the same time
• Formed 18 new cross functional teams
• Organisation was still very siloed
• Private cloud was ready and in use
Wave 2
19. Part 2 – What we did
• Teams & Project Structure
• Each program had between 5-9 Scrum teams
• Formed large cross functional teams
• Hired a lot of contractors (70% contractor – 30% Permanents)
Wave 2
20. Part 2 – What we did
• Roles
• Project Managers running the programs
• Scrum Master further embedded in the organisation
Wave 2
21. Part 2 – What we did
• Business Owners, Business Analyst (BA)
• Business Owners as project/product owner
• BA as proxy product owners for the teams
• No changes to roles, engineering practices and governance
Wave 2
22. Outcome:
Can’t release fast
enough!
• Projects were too big
• Limited Agile coaching
• Slow decision making
• Little focus on engineering
practices
• Governance not aligned with
way of working
Wave 2
27. Context
Jan 2016 – Dec 2016
• All teams already doing agile for a while
• Still not able to release fast enough
• Still working on large projects
• Increased focus in building the right products
• Little focus on engineering
• Workforce was mainly contractors
Wave 3
30. Guiding principles
1. Deliver value to customers, faster
2. Reduce hand-offs
3. Simplify and de-layer the organisation
4. Involvement rather than sign-offs
5. Prefer cross functional and consistent
teams
6. Move the work not the people
7. Regular reflection & improvement
Wave 3
31. What we did
• Re-organisation
• New structure: Domains, Guilds and Domains Support Team
• New roles: Product Owner, Domain Delivery Lead, Domain Lead, Agile Coach
• Way of Working
• PACE: Design Thinking, Lean Startup and Agile
• Deliver value to customers in 90 days max
• People, Engineering Practices and Continuous Delivery
• 5 levels of engineers
• Increase the number of permanent staff (close to 80%)
• Learning Culture: Hackathons, Brownbag, tech talks, lunch and learn, Meetups, code dojo, etc
• Governance
• Simplified the business case and the approval process
Wave 3
32. Outcome:
Sweet!!
• Time to Market reduced
from 12 to 5 months
• 100% of the initiatives delivered
on budget
• Weekly deployments
• Teams more engaged on
meetups, hackathons, etc
• Teams kept together longer than
1 year
Wave 3
33. Journey Recap
Wave 2
Let’s try agile again
Can’t release
fast enough!
It works!
Accelerate time to market
Wave 3
Building the right things, faster
Sweet!
Accelerate time to market
Wave 1
What is Agile, should we try?
Agile is not for us
Accelerate time to market
34. What’s next
• Empower teams to innovate
• Continuously evolve the organisation design
• Employer of choice for software engineers
• More experimentation mindset
• Continuous Delivery
• Align funding with way of working
Thank you all for being here today.
My intent today is to sharea bit of what’ve been doing at ING Direct over the Last few years
Hoping you can take something away and use it in your organisation.
The highest NPS s ores in the industry
Present in more than 40 countries
Why waves
Motivation was to be faster
Things didn’t quite go as expected
Didn’t go any faster
Sentiment was: Agile is not for us
Won’t spend too much time on wave 1.
The message I want the audience to leave with is that Agile transformation cannot be outsourced. Need to grow from within.
Need to speed up delivery in the digital space (after a long time building a new mobile app)
Strong buy-in all the way up to CEO
Siloed IT Delivery & Digital Channels organisation (many others silos)
Building mobile & tablet apps. Digital stuff
Full autonomy
About 15 people
In the process of moving to our private cloud
Lack of visibility of what the teams were working on
EXCO members not aware what team was building
Are you building the right things?
Support functions not fully engagedCouldn’t release often enough - traditional change process
Large investment in the Digital and new products
IT budget tripled from previous year
3 major programs kicking off at the same time
Formed 18 new cross functional teams
Organisation was still very siloed
Private cloud was ready and in use
Teams & Project Structure
Roles
Business Owners, Business Analyst (BA)
Teams & Project Structure
Roles
Business Owners, Business Analyst (BA)
Engineering Practices
No changes – Not much focus on engineering practices at this stage
Governance
No changes – Traditional status reporting, planning and resource model
Steering committee
No changes - Traditional Project steering committee
Took 1 year for the first release
The visibility exposed issues that the organisation was not ready to deal with
What worked well
Visibility
Issues & risks got more visible than ever
Progress of the teams were visible
Agile practices in the teams were improving
Teams were happy (stakeholders not so much)
Teams stability
Agile awareness in the organisation was growing
This wave is about
Bringing relevant solutions to market faster
I’ll get into the details of the structure, roles.
Before we did anything else we decided to stop
Up until here the focus was on “doing” Agile
This is when started to shift the thinking to “being” Agile
To guide our next steps we’ve decided to create some guiding principles
In reality we co-created these guiding principles with the entire organisation (Finance, HR, Brand, Risk, Legal, Product, Marketing, etc)
Reorg
Customer aligned Domains – Like Spotify tribes
Support function aligned to Domains and part of Domain support team
Way of working
PACE
We call projects Initiatives and MVP should be smaller than 3 months
Engineering practices & continuous delivery
Governance
I’ll get into the details of the structure, roles and PACE, our way of working. Might play a video that explains it https://www.youtube.com/watch?v=6NpjOH8WCvQ.
Will spend 2-3 minutes explaining each wave
Be the employer of choice for software engineers
More experimentation mindset
Continuous Delivery
Align funding with way of working
Start small, experiment and adapt
Build it from within
Focus on people, always
Let your Agile bubble grow organically, don’t force it
Experimentation is king. Try, try , try
Use Lean startup to approach to your agile transformation
Encourage experimentation
Context matter. Learn from other but adapt to your context
Don’t outsource your transformation
Build your capability from within
It is your problem, no one can solve it for you
Think big but take small steps
Don’t push it too far, it might break
Let things emerge as the organisation learns
Your agenda shouldn't be about pushing agile but instead it should be about enabling the organisation goals
No mater what you do people should come first always
Share your intent and let people do it
Hire for culture fit not for technical skill
Let them experiment
Let them fail
So they can learn
You can also replace fall with fail and they quote will be even more relevant