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Adjugo intro lean agile

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Faster to market with a lean-agile transformation.

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Adjugo intro lean agile

  1. 1. Lean-agile transformation The main business drivers Chris Verlinden cverlinden@adjugo.com +32 474 891 705
  2. 2. What drives companies to agile? 18% 21% 23% 26% 31% 36% 37% 42% 47% 50% 51% 63% 71% 0% 10% 20% 30% 40% 50% 60% 70% 80% INCREASE SOFTWARE MAINTAINABILITY BETTER MANAGE DISTRIBUTED TEAMS IMPROVE ENGINEERING DISCIPLINE REDUCE PROJECT COST IMPROVE TEAM MORALE IMPROVE PROJECT VISIBILITY REDUCE PROJECT RISK ENHANCE SOFTWARE QUALITY ENHANCE DELIVERY PREDICTABILITY IMPROVE BUSINESS/IT ALIGNMENT INCREASE PRODUCTIVITY ABILITY TO MANAGE CHANGING PRIORITIES ACCELERATE PRODUCT DELIVERY Driver Source : VersionOne 14th Report on Agility
  3. 3. The three winners are … 0% 10% 20% 30% 40% 50% 60% 70% 80% Increase productivity Ability to manage changing priorities Accelerate product delivery Driver
  4. 4. Results of agile adoption versus expected 0% 10% 20% 30% 40% 50% 60% 70% 80% Increase software maintainability Better manage distributed teams Improve engineering discipline Reduce project cost Improve team morale Improve project visibility Reduce project risk Enhance software quality Enhance delivery predictability Improve business/IT alignment Increase productivity Ability to manage changing priorities Accelerate product delivery Result Driver
  5. 5. Agile does better than expected except … 0% 10% 20% 30% 40% 50% 60% 70% 80% Increase productivity Ability to manage changing priorities Accelerate product delivery Driver Result
  6. 6. Agile does better than expected except … 0% 10% 20% 30% 40% 50% 60% 70% 80% Increase productivity Ability to manage changing priorities Accelerate product delivery Driver Result Agile Lean Lean-Agile
  7. 7. Shorter time to market • Lean thinking: eliminate waste • Faster to market = eliminate time waste • Time waste • Work waiting for next step • Doing too many things, each of them gets finished slower • Time wasted in attention switching
  8. 8. Idea The traditional workflow: creation of a new product Business case Budget approval Plan project, assemble team Build Deliver Who slows everything down?
  9. 9. Waterfall vs lean flow We tend to believe that delays happen where work is being done. In reality, most delays happen where work is waiting. The best way to improve your time to market is by eliminating non-value-added process time.
  10. 10. Faster to market = eliminate waiting Idea waiting for its business case to become a project proposal Project proposal waiting for approval in budget cycle Approved projects wait for project manager and team Waterfall: • Functional analysis waits for approval by ‘business’ • Technical design waits for peer review and approval • Programs wait for testers Tested programs wait for deployment into production
  11. 11. Move to agile teams Idea waiting for its business case to become a project proposal Project proposal waiting for approval in budget cycle Approved projects wait for project manager and team Agile project: •Team delivers in small increments •Working functionality •Waiting times eliminated Tested programs wait for deployment into production Eliminate waiting times between development stages • Analysis • Development • Testing  Multifunctional team required
  12. 12. Maintain teams between project Idea waiting for its business case to become a project proposal Project proposal waiting for approval in budget cycle Teams are long-living and take up work as it arrives Agile project: •Team delivers in small increments •Working functionality •Waiting times eliminated Tested programs wait for deployment into production Eliminate waiting time to assemble team • Long-living teams optimize their way of working • Delays in one team do not affect the assembly of other teams Stop thinking about people as resources
  13. 13. DevOps and frequent deployment Idea waiting for its business case to become a project proposal Project proposal waiting for approval in budget cycle Teams are long-living and take up work as it arrives Agile project: •Team delivers in small increments •Working functionality •Waiting times eliminated Implement DevOps and continuous deployment Eliminate waiting time for code to go in production • Frequent delivery • Small batch size Continuous delivery, release on demand
  14. 14. Fund valuestreams, not projects Idea waiting for its business case to become a project proposal Fund teams, not projects Teams are long-living and take up work as it arrives Agile project: •Team delivers in small increments •Working functionality •Waiting times eliminated Implement DevOps and continuous deployment Fund teams, not projects: • Valuestreams decide what gets done • No need to fully estimate projects up front No longer wait for budget cycles (often one budget per year!). The budget cycle is often the slowest cycle. Eliminating this has a major effect on time to market.
  15. 15. Examine ideas in continuous Portfolio management Ideas examined and approved in Portfolio process Fund teams, not projects Teams are long-living and take up work as it arrives Agile project: •Team delivers in small increments •Working functionality •Waiting times eliminated Implement DevOps and continuous deployment Incoming ideas immediately examined Most promising move into Portfolio decision flow Go/no go decision  Work flows to teams
  16. 16. Link to corporate strategy: the chain of why Strategic themes translated into priorities Ideas examined and approved in Portfolio process Fund teams, not projects Teams are long-living and take up work as it arrives Agile project: •Team delivers in small increments •Working functionality •Waiting times eliminated Implement DevOps and continuous deployment Strategy determines portfolio and funding of valuestreams We now have a complete chain of value creation where we minimize waiting times and optimize the flow of value
  17. 17. Second driver: ability to change priorities Traditional project management makes a change in priorities a heavy procedure Upfront central decision Project scope Project budget Project manager
  18. 18. Second driver: ability to change priorities Agile product development is inherently responsive: • Continuous prioritization: product backlog • Customer involvement: demo’s • Scope decisions: P.O. Responsive scope Product backlog Product demo’s Product owner
  19. 19. Second driver: ability to change priorities The team adapts to changing priorities through adaptive planning: • Periodic • By the whole team • Facilitated by the Scrum master Adaptive planning Periodic planning Agile team Scrum master
  20. 20. Third driver: more productive Traditional management needs to compare a fixed cost – fixed scope with a fixed benefit • One cost = one solution up front • One benefit = one scope • We often ignore the effect of time Business case Single point solution Fixed scope Business case time independent
  21. 21. Third driver: more productive Agile can handle uncertainty • Alternatives open  best solution to be discovered • We and customers learn over time what is most valuable • Often more in scope than needed • Often what is needed is not in scope • Value is time dependent Business case Keep alternatives open Do not build the useless parts Time to market matters
  22. 22. Third driver: more productive Agile creates a more productive work environment • Stable, optimized teams • Limit WIP • Really, I mean it, LIMIT WIP • You have too many projects, everybody has • That is why you go slow! • And do not waste talent People, not resources Stable teams Limit Work in Progress Do not waste talent
  23. 23. Top three priorities LEAN AGILE LEAN-AGILE 0 10 20 30 40 50 60 70 80 Faster delivery Adapt priority Increase productivity Main drivers
  24. 24. And the big challenges are… Move from Command and Control to decentralized decision making Replace yearly budget cycle with a more flexible system Make business and IT work together to create value for the customer Make agile work at corporate level instead of just team level Integrate development and operations
  25. 25. How to get away from pushing and overload
  26. 26. Focus on Value creation 0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 Fixed scope Agile scope Value generated per effort Very high High Medium Low 90 % of value for 75 % effort 20 % more productive
  27. 27. Learn about the customer We do not know what the customer wants (and wants to pay for) • We make a hypothesis • We create an MVP to test that hypothesis about the customer • We go on if the hypothesis is validated, or pivot if not • We examine how our product is used and generate new hypotheses • Persona’s, Empathy Map, Customer Journey: we try to capture what the customer wants
  28. 28. Attitudes in lean-agile • Focus on the creation of value • Hypothesize what the customer wants (to pay for) • Build product features and learn • Shorter time to market and fast feedback • Be conscious of the Cost of Delay • Remove obstacles to flow • Deliver work in small batches • Your customer and your employees are people • Treat them as such • Create a safe environment • Support the teams • Let the people decide where the information is

Faster to market with a lean-agile transformation.

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