Bpm Agile Bucharest Nov 2011


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Using SCRUM for Process Improvement, Agile Tour 2011 Bucharest Romania presentation Luciano Guerrero

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Bpm Agile Bucharest Nov 2011

  1. 1. Agile business processes Presentation at Agile Tour 2011 Bucharest, Romania 25 Nov 2011 Luciano Guerrero President Procesix Inc.Procesix 2011 www.procesix.com e-SCM © 2006 by Carnegie Mellon University. All rights reserved. SM: CMM Integration, CMMI, SCAMPI, and IDEAL are service marks of Carnegie Mellon University ITIL® is a Registered Trade Mark, and a Registered Community Trade Mark of the Office of Government Commerce, and is Registered in the U.S. Patent and Trademark Office. “PMI” and “PMP” are registered marks of Project Management Institute, Inc. COBIT 4.1 is property of the IT Governance Institute (ITGI)  Copyright Procesix Inc. 1
  2. 2. Agenda Agile business processes  Needs and challenges  Process as a tool  Agile approach to process improvementProcesix 2011  Copyright Procesix Inc. 2
  3. 3. Agile business processes Businesses are facing dramatic challenges during this decade, from economy, technology and globalization. The business approaches that were successful a few years ago are no longer fit for a rapidly changing environment. There are new players, different markets and greater new opportunities. There is only one thing that will never change: to be a successful enterprise (a survivor) you NEED to continuously optimize your productivity, improve quality, and to be one step ahead of your competitors for satisfying your customers’ needs. Mature processes are the basis to build a solid enterprise architecture, to optimize the investment in technology and to obtain the best from the human talent. Well implemented processes are a powerful tool to support business goals, capture know-how and to lower the risk posed by expertise turnover. The process need to be seen from a customer perspective, integrating the outputs of teams and functional areas in order to deliver high-quality services and products. The industry seems to be moving to adopt multimodel, pragmatic approaches oriented to measurable results.Procesix 2011 In order to meet the need for highly efficient and adaptable practices, the industry is using agile process management approaches without lowering maturity . Sound enterprise architectures can use ready-to-use process solutions, using better the investment and integrate business functions and customer.  Copyright Procesix Inc. 3
  4. 4. Procesix 2011 Agile business processes WHO ARE WE Copyright Procesix Inc.4
  5. 5. Procesix Inc. purpose Agile business processes Expertise providing Value proposition Presence services since 1999 Business Process Offices Management (BPM) Consulting, Training, Assessment •Canadá consulting services to improve services to implement solutions to •Chile our customer’s: common risks and problems •Brasil • Process efficiency and •Colombia productivity • Aligning business objetctives •Argentina with core processes •Partners in Latin America and • Core processes workflows Team of consultants (SME) in Europe based on industry practices and governance, process management, •In Romania by 3PRO-LAB standards enterprise architecture, project management, system engineering, software development, service, quality assurance and other IT coreProcesix 2011 areas Partnership with SEI, ITSqc, Leadership in introducing industry models and recommended practices:Togaf, eSCM, PSP, TSP, C- BOK, CMMI-SVC y CMMI-DEV, among others  Copyright Procesix Inc. 5
  6. 6. Agile business processes NEEDS & CHALLENGESProcesix 2011  Copyright Procesix Inc. 6
  7. 7. The IT industry is facing many challenges Agile business processes Globalization New technologies Shortage of creating more talent and demand for software expertise development Challenges Customers expect lower Global prices, shorter economy development and higher problemsProcesix 2011 quality Increasing system complexity  Copyright Procesix Inc. 7
  8. 8. Common business objectives Agile business processes Satisfy customer Increased Costs under needs productivity control Architecture Deliver high- Shorter time-to- oriented to quality products market maintenance and & services reuseProcesix 2011 Maintain risks Need for better Repeatable under control governance results  Copyright Procesix Inc. 8
  9. 9. Market trends Agile business processes • Offer is bigger than demand • What You See Is What You Get • Real improvement in performance (WYSIWIG) • Second decade customers expect • Long, complex, costly lifecicles instant solutions • Dependency on providers and big • They have growth in the culture of download companies and personalization • Inflated costs • Expecting continually decreasing costs • Protected markets • Globalization • Silos, island, hermits • Cloud ITC IN OUTProcesix 2011  Copyright Procesix Inc. 9
  10. 10. Methodologies lifecycle Agile business processes CMMI, Agile are widely adopted, mature methodologies Crossing the Chasm (1991, 1999), Geoffrey A. Moore,Procesix 2011 Diffusion of Innovations , Everett Rogers  Copyright Procesix Inc. 10
  11. 11. Basic components Agile business processes Governance Organization Enterprise Capturing Architecture knowledge Solutions Talent Tools Expertise Process Know-howProcesix 2011 Technology People  Copyright Procesix Inc. 11
  12. 12. Multimodel approach to business processes Agile business processes Governance (COBIT) Project Management (PMBOK) Development (CMMI) Service(ITIL) CMMI SVCProcesix 2011 CMMI Acquisition CM QA Subcontracts Process Metrics e-SCM © 2006 by Carnegie Mellon University. All rights reserved. SM: CMM Integration, CMMI, SCAMPI, and IDEAL are service marks of Carnegie Mellon University ITIL® is a Registered Trade Mark, and a Registered Community Trade Mark of the Office of Government Commerce, and is Registered in the U.S. Patent and Trademark Office. “PMI” and “PMP” are registered marks of Project Management Institute, Inc. COBIT 4.1 is property of the IT Governance Institute (ITGI)  Copyright Procesix Inc. 12
  13. 13. 12 principles of Agile manifesto Agile business processes • Our highest priority is to satisfy the customer through early and continuous delivery of Customer satisfaction valuable service. • Welcome changing requirements, even late in development. Agile processes harness Requirements management change for the customers competitive advantage. • Deliver working outputs frequently, from a couple of weeks to a couple of months, with a Timely delivery preference to the shorter timescale. Customer involvement • Business people and developers must work together daily throughout the project. • Build projects around motivated individuals. Give them the environment and support they Teamwork need, and trust them to get the job done. • The most efficient and effective method of conveying information to and within a Peer reviews development team is face-to-face conversation. Delivering quality • Working outputs is the primary measure of progress. • Agile processes promote sustainable development. The sponsors, developers, and users Predictable productivity should be able to maintain a constant pace indefinitely. System Architecture • Continuous attention to technical excellence and good design enhances agility.Procesix 2011 Efficiency • Simplicity--the art of maximizing the amount of work not done--is essential. Process maturity • The best architectures, requirements, and designs emerge from self-organizing teams. • At regular intervals, the team reflects on how to become more effective, then tunes and Continuous improvement adjusts its behavior accordingly.  Copyright Procesix Inc. 13
  14. 14. How CMMI address Agile principles Agile business processes Requirement development Customer satisfaction Requirements management Requirements management Project planning Timely delivery CMMI Project monitoring & control Customer involvement Configuration management Teamwork Measurements Peer reviews Peer reviews Testing Delivering quality Agile Continuous improvement Predictable productivity Design, build & integration System Architecture Integrated managementProcesix 2011 Efficiency Process maturity Subcontracting Process maturity Organizational support Continuous improvement  Copyright Procesix Inc. 14
  15. 15. Characteristics of Process Maturity Agile business processes 5 4 We can make 3 significant We can predict improvements performance We share knowledge 2 Capability to achieve excellence We have control of the project Continuous improvement 1 Statistical understanding of process We do something variation Common processes agreed upon Knowledge is captured and sharedProcesix 2011 Basic Project Management Engineering knowledge not shared Knowledge depends of individuals Too many risks  Copyright Procesix Inc. 15
  16. 16. What is process? Agile business processes Translation of “Process” in Classic definition the 2010’s Model activities with adequate level of details in order to understand what the business does and how it performs Provide effective control on what we are doing Potentiate innovation, productivity and Flow of activities to obtain an output sustaining business A major investment made by the company that must provide returnsProcesix 2011 What differentiate our company from the competition  Copyright Procesix Inc. 16
  17. 17. Customer perspective Agile business processes Customer perspective Customer Provider Customer Needs Process Satisfaction Management, Price Quality Availability Selection Customer, TeamProcesix 2011 Functionality Service Brand Partnership  Copyright Procesix Inc. 17
  18. 18. Manifesto for Agile Software Business Development Agile business processes  We are uncovering better ways of developing software business by doing it and helping others do it.  Through this work we have come to value:  Individuals and interactions over processes and tools  Working practices 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 Meeting Ensure long- expectations term Risks Achieve Capture BusinessProcesix 2011 productivity know-how objectives Validate Benefits Governance satisfaction  Copyright Procesix Inc. 18
  19. 19. Agile business processes AGILE PROCESSProcesix 2011 IMPROVEMENT  Copyright Procesix Inc. 19
  20. 20. Business drivers to improve processes Agile business processes According to recent survey, the main drivers motivating executives to start process improvement programs in their organizations are: Save resources and lower costs To be better prepared for market challenges Improve the performance of specific existing processes or introduce innovation Improve customer satisfaction Compliance to regulationsProcesix 2011 Respond to special events (acquisitions, mergers) Adapted from The State of BPM – 2010, Paul Harmon & Celia Wolf  Copyright Procesix Inc. 20
  21. 21. Process agility Agile business processes Efficiency is still of paramount importance, but operational excellence requires process agility: Capability of the organization to make significant changes and performance improvement People and systems capability to adapt to continuous change and innovationProcesix 2011 Process transparency and governance • Adapted from Gartner Magic Quadrant February 2010  Copyright Procesix Inc. 21
  22. 22. Business case to improve process Agile business processes The cost of bad quality is always higher than investing in good quality “Quality is Free”, Philip Crosby, 1979, ISBN 0-451-62247- 2 The results in performance resulting from processProcesix 2011 improvement justify the investment needed to make changes  Copyright Procesix Inc. 22
  23. 23. Agile business processes Costs and roadblocks Benefits Usually there is measurable Resistance to change ROI Efficient and effective support Side effects in the short term of business objectives Unrealistic expectations not Better risk management met Isolated initiatives not aligned Improved learning curves with business needsProcesix 2011 Enable governance, control Partial implementations and visibility  Copyright Procesix Inc. 23
  24. 24. Real value added by industry models Agile business processes Questions when adopting models and methodologies as reference for your organizations process framework: What business needs are addressed by the model? Does the business process need to complement other models as well? To what extent we need to implement the practices?Procesix 2011 What are the costs and expected results? Are these recommended practices suitable for our organizational culture and maturity?  Copyright Procesix Inc. 24
  25. 25. Process trends in the 2010’s Agile business processes Management will have Process will be managed Process adaptability to better control of directly by users specific needs will be performance and will be (management, more easy able to make proactive empowered users) process changes The shift from application Process models with development to a friendly graphics and paradigm of composing explicit capabilities will solutions will challenge potentiate capture of traditional methodologies organizational knowledge and modelsProcesix 2011 – Adapted from Gartner (January 2010)  Copyright Procesix Inc. 25
  26. 26. Multimodel approach: From strategy to action Agile business processes Identify “pains” and business objectives Models are tools to be adapted to business process • The purpose is to improve performance • Models are not ends by itself Models are roadmaps to guide process implementation There is no such thing as a “universal model” • They address different aspects of the businessProcesix 2011 Improvements need to be addressed from a business perspective • “Silo” improvements usually are not very effective  Copyright Procesix Inc. 26
  27. 27. Roadmap for improvement Agile business processes Assessment of Process As Is Process To Be Implementation business needs D Diagnose M Measure A Analyze I Improve C ControlProcesix 2011 D Define M Measure A Analyze D Design V Verify  Copyright Procesix Inc. 27
  28. 28. Roadmap for improvement - 1 Agile business processes Assessment of Process As Is Process To Be Implementation business needsProcesix 2011 Inventory, modeling, and discovery of the current processes used by the organization, including its weaknesses What we are, understanding our risks  Copyright Procesix Inc. 28
  29. 29. Roadmap for improvement - 2 Agile business processes Assessment of Process As Is Process To Be Implementation business needsProcesix 2011 Systematically identify the cost of our weaknesses, threats and setting the priorities for improvement to address the business objectives Understand our capacity and quantify the pain  Copyright Procesix Inc. 29
  30. 30. Roadmap for improvement - 3 Agile business processes Assessment of Process As Is Process To Be Implementation business needsProcesix 2011 Identify and design the process architecture needed to improve significantly the performance and capability of the organization Plan improvement in order to achieve business objectives  Copyright Procesix Inc. 30
  31. 31. Roadmap for improvement - 4 Agile business processes Assessment of Process As Is Process To Be Implementation business needsProcesix 2011 Implement efficient, effective and agile solutions to meet business plans and survive in the marketplace Implement solutions to needs as planned  Copyright Procesix Inc. 31
  32. 32. Case study: Agile approach to process improvement Agile business processes  Process Improvement master plan  “Pains” were developed in process improvement activities (requirements)  Improvement plan activities prioritized  “SCRUM” approach applied  Requirements broken down in backlog list  Developed User stories, Use Cases  Preparation phase leaded by consultant  Team received training on methodology and applicable models  Consultant had experience in BPM, SCRUM Master, and applicable models  Working sessions are structured and monitored  SCRUM practices applied consistently  A high level model is agreed upon  Limited to 4 sessions to agree upon on common process and tailoringProcesix 2011  Documented by BPM consultant  The Process To Be is communicated  Sponsor support, diffusion, training  During implementation process could be automated  Copyright Procesix Inc. 32
  33. 33. Summary Agile business processes There is no magic book to provide solutions to the many challenges of the TIC industry in the 2010’s decade Nevertheless there are several models covering specific areas and common problems of the business Organizations are learning to adapt and integrate these models to their specific needs The industry is still waiting for a coherent vision to facilitate their application The needs for faster, cheaper, better software are the same as in the past two decades, only that this time are much bigger Agile approaches are powerful accelerators when used in a mature process environmentProcesix 2011  Copyright Procesix Inc. 33
  34. 34. Recommended reading Agile business processes Guide to BPM Common Body of www.abpmp.org Knowledge (C-BOK) ISBN: 1442105666 eSourcing Capability Model for Service www.itsqc.org Providers (eSCM-SP) ISBN: 9789087535612 eSourcing Capability Model for Client www.itsqc.org Organizations (eSCM-CL) ISBN: 9789087535599 CMMI for Services: Guidelines for sei.cmu.edu Superior ServiceProcesix 2011 CMMI-SVC, CMMI® for Services, sei.cmu.edu Version 1.3  Copyright Procesix Inc. 34
  35. 35. Questions? Agile business processesProcesix 2011  Copyright Procesix Inc. 35
  36. 36. Thank you for your attendance! Agile business processes Luciano Guerrero, President Procesix Inc. luciano.guerrero@procesix.com Our partner in Romania: Nicolae Giurescu Nicolae.Giurescu@3pro-lab.ro www.procesix.comProcesix 2011  Copyright Procesix Inc. 36