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Agility mgt v2md

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Agile practices vs organizational agility - why management can be the barrier to organizational agility.

For more, see www.netobjectives.com

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Agility mgt v2md

  1. 1. Marc Danziger CDO, Enterprise Consultant Agile v. Agility …the problem of management
  2. 2. © Copyright Net Objectives, Inc. All Rights Reserved 2 Marc Danziger marc.danziger@NetObjectives.com CDO, Enterprise Consultant Chief Delivery Officer Marc Danziger is the Chief Delivery Officer of Net Objectives. With over 20 years of experience, Marc is a leading practitioner in project and program management, project rescue, product portfolio management, SAFe, Scrum and business architecture. He helps companies transform to Lean and Agile enterprises. He has a Masters in Planning Theory from U.C. Berkeley where by random chance he studied with the originators of the concepts of Wicked Problems and Design Patterns.
  3. 3. © Copyright Net Objectives, Inc. All Rights Reserved 3 Lean Management Project Management Kanban / Scrum ATDD / TDD / Design Patterns technical ASSESSMENTS CONSULTING TRAINING COACHING Lean for Executives Product Portfolio Management Business Product Owner Product Owner Onsite SPC Leading SAFe SAFe Architecture PM/PO
  4. 4. © Copyright Net Objectives, Inc. All Rights Reserved 4 What’s we talking about? Differentiating ‘Practicing Agile’ from ‘Organizational Agility.’ Discussing the barrier typical management practices place between the two.
  5. 5. © Copyright Net Objectives, Inc. All Rights Reserved 5 Agile is about practices s *Sprint = Iteration • PM • POs • POs • Users • POs • Users • BAs • PM • POs • PM
  6. 6. © Copyright Net Objectives, Inc. All Rights Reserved 6 Agility is about overall control and responsiveness
  7. 7. © Copyright Net Objectives, Inc. All Rights Reserved 7 Simple: The tight connection between strategic decision and execution When an organization can make a decision and promptly deliver an outcome that accurately manifests that decision, the organization is demonstrating agility. What’s “Agility?”
  8. 8. © Copyright Net Objectives, Inc. All Rights Reserved 8 Don’t Agile practices lead us to Agility? …not always
  9. 9. © Copyright Net Objectives, Inc. All Rights Reserved 9 • Friction at the working service goes down • Reliability of delivery improves But: • Does value of delivery improve? • Post-transformation, does this persist? If not, why not? We’ve all lived through this
  10. 10. © Copyright Net Objectives, Inc. All Rights Reserved 10 Improve the delivery of value. Change our model so that the transformations persist. Why? …and how? So we have to do two things…
  11. 11. © Copyright Net Objectives, Inc. All Rights Reserved 11 Delivering Value
  12. 12. © Copyright Net Objectives, Inc. All Rights Reserved 12 “It’s all about the Benjamins.”
  13. 13. © Copyright Net Objectives, Inc. All Rights Reserved 13 No. It’s about delivering value. But in our economy, money is a decent proxy for value. …and, by the way, when we rapidly deliver value other good things happen. Is it all about Money?
  14. 14. © Copyright Net Objectives, Inc. All Rights Reserved 14 First Release Investment Period Payback Period Profit Period Breakeven Cashflow Time economics of responsiveness Mark Denne and Jane Cleland-Huang Software by Numbers
  15. 15. © Copyright Net Objectives, Inc. All Rights Reserved 15 First Release Invest- ment Period Profit Period Pay- back Period Cashflow Time Release 1 Net Return staged releases
  16. 16. © Copyright Net Objectives, Inc. All Rights Reserved 16 Profit Period Second Release Invest- ment Period Pay- back Period Release 2 Net Return Cashflow Time Release 1 Net Return staged releases
  17. 17. © Copyright Net Objectives, Inc. All Rights Reserved 17 Profit Period Investment Invest- ment Period Pay- back Period Breakeven Point Total Return Cashflow Time staged releases
  18. 18. © Copyright Net Objectives, Inc. All Rights Reserved 18 Cashflow Breakeven Single Release First Release Time Staged Releases Requires a focus on sustainability of realizing value by attending to architectural roadmap of product line increased profit
  19. 19. © Copyright Net Objectives, Inc. All Rights Reserved 19 Cashflow Breakeven Single Release First Release Time Staged Releases when competition is intense
  20. 20. © Copyright Net Objectives, Inc. All Rights Reserved 20 Source: Standish Group Study of 2000 projects at 1000 companies Usage of Features and Functions in Typical System DELIVER the IMPORTANT THINGS …NOT EVERYTHING
  21. 21. © Copyright Net Objectives, Inc. All Rights Reserved 21 1 2 3 but incrementing calls for a fully formed idea courtesy Jeff Patton “incrementing” builds a bit at a time...
  22. 22. © Copyright Net Objectives, Inc. All Rights Reserved 22 1 2 3 to allow you to move from vague idea to realization courtesy Jeff Patton “iterating” builds a rough version, validates it, then slowly builds up quality…
  23. 23. © Copyright Net Objectives, Inc. All Rights Reserved 23 Program: Straight Through Processing Value Criteria Improve Operations Increase capacity for handling transactions Customer Satisfaction Shorten resolution time Reduce Cost Reduce manual processing cost (headcount) Synopsis Customer transactions/requests/issues/problems are handled by process associates in the customer service area. The volume of transactions which need to be resolved on a daily basis is nearing the capacity of what can be handled within a 24 hour period; in addition, resolution time is longer due to the manual effort involved in resolving the problem. The company is committed to investing in technology which would automate (no touch) current manual processes, handle more requests in a shorter amount of time, with a reduced number of process associates. Investment Budget $20M Payback / ROI 1-3 years
  24. 24. © Copyright Net Objectives, Inc. All Rights Reserved 24 Business Backlog for STP Program: No touch STP High Low Plan Setup Ent. Data Workflow Auto. STP Bus Inc Bus Inc Bus Inc Bus Inc Bus Inc… 9 months Plan Setup Ent. Data Workflow Auto. STP 80% 10% 10% 6 months! 4 months 1 month of a dev team’s vs. Realizing value 3 months sooner!
  25. 25. © Copyright Net Objectives, Inc. All Rights Reserved 25 Why don’t Agile transformations persist?
  26. 26. © Copyright Net Objectives, Inc. All Rights Reserved 26
  27. 27. © Copyright Net Objectives, Inc. All Rights Reserved 27 “In a poll last Wednesday of some 400 people working in many different firms where the practices known as Agile and Scrum are being implemented, 88% reported tension between the way Agile/Scrum teams are managed in their organization and the way the rest of the organization is managed. Only 8% reported ‘no tension.’ “ - Steve Denning, Forbes January 2015
  28. 28. © Copyright Net Objectives, Inc. All Rights Reserved 28
  29. 29. © Copyright Net Objectives, Inc. All Rights Reserved 29 What’s management’s problem?
  30. 30. © Copyright Net Objectives, Inc. All Rights Reserved 30 ”I don't think investors and money managers are aware of the rate of change coming down the pike. The rate of change is too hard to fathom. But they need to be aware that many of today's F500 are in danger. A study from the John M. Olin School of Business at Washington University estimates that 40 percent of today's F500 companies on the S&P 500 will no longer exist in 10 years.” - Peter Diamandis, X-Prize founder Why is Management fearful?
  31. 31. © Copyright Net Objectives, Inc. All Rights Reserved 31 • Technological change • Cultural change • Economic change • Political / Regulatory change • _______________ change
  32. 32. © Copyright Net Objectives, Inc. All Rights Reserved 32
  33. 33. © Copyright Net Objectives, Inc. All Rights Reserved 33 How We Manage People
  34. 34. © Copyright Net Objectives, Inc. All Rights Reserved 34 Costs of Interrupting a Team What we think will happen What does happen Current state Rework Overhead Planned Work Rework Overhead Planned Work New Features Rework Overhead Planned Work New Features Extra work The cost of interrupting a team is not just the delay of other work, it is the additional work it creates that would otherwise not have to be done.
  35. 35. © Copyright Net Objectives, Inc. All Rights Reserved 35 We Manage This Way even though our value flows this way
  36. 36. © Copyright Net Objectives, Inc. All Rights Reserved 36 Let’s Create a Pilot Project Project 1 Project 2 % Project 3 Project 4 Project N Business Analyst, Architect, Usability Expert, Developer, Developer, Tester, Project Manager Expert Just creating a cross-functional, co-located team you will improve 3x without changing your process. While it may be successful as a pilot, it will likely not be sustainable.
  37. 37. © Copyright Net Objectives, Inc. All Rights Reserved 37 Let’s look at this again. …reducing friction in monolithic systems can be a good thing.
  38. 38. © Copyright Net Objectives, Inc. All Rights Reserved 38 • Strategy • Budgeting • HR …are the top 3. Let’s discuss them. ..but it leaves us with some issues.
  39. 39. © Copyright Net Objectives, Inc. All Rights Reserved 39 Project Manager > Program Manager > Portfolio Manager > CIO HR and Agile Scrum Master > RTE > ??
  40. 40. © Copyright Net Objectives, Inc. All Rights Reserved 40 • Stack rank • Individual reviews • Bonus/promotion policies Other HR Issues
  41. 41. © Copyright Net Objectives, Inc. All Rights Reserved 41 • Budgeting by project • Inflexible annual budgets • Managing variance down Budgeting and Agile
  42. 42. © Copyright Net Objectives, Inc. All Rights Reserved 42 Given all this - what is to be done?
  43. 43. © Copyright Net Objectives, Inc. All Rights Reserved 43 Input Priority BUSINESS DISCOVERY BUSINESS DELIVERY Planning Staging Ready to Pull c h u n k i n g s l i c i n g Decision High enough business value? Decision Technically feasible, sufficient ROI? Iteration 0 Iterative Development Incremental Deployment Support & Feedback Decision Ready to release? Decision Is there capacity? Define acceptance criteria and feature sequence Build iteratively, deploy incrementally Review business value , approve, and prioritize Define value increments and sequence Define product backlog The Value Stream Doing “Left of Do”
  44. 44. © Copyright Net Objectives, Inc. All Rights Reserved 44 • Dynamic, responsive strategy • Budgeting aligned with value streams • Agile leadership becomes a characteristic of the management team • Agile team members have both a pro-Agile set of HR goals and a career path that doesn’t require that they abandon Agile (or Lean) practices to advance into management roles What happens if we make ‘left of do’ Agile?
  45. 45. © Copyright Net Objectives, Inc. All Rights Reserved 45 Observations Related To Moral Conflict No fixed recipes for organization, communications, tactics, leadership, etc. Wide freedom for subordinates to exercise imagination and initiative – yet harmonize within intent of superior commanders. Heavy reliance upon moral (human values) instead of material superiority as basis for cohesion and ultimate success. Commanders must create a bond and breadth of experience based upon trust – not mistrust – for cohesion. - John Boyd, “Patterns of Conflict” slide 118
  46. 46. © Copyright Net Objectives, Inc. All Rights Reserved 46 “In command – and out of control.” - LtGen. Paul Van Riper

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