Ideas and observations from the project in Brno in 2014 (Agile Transformation), which started as slight improvement to Scrum process in one team, then moved to rescueing product (internal project platform) via radical strategy change, to discovery of need for structural change in the organization, that will save more that €5 millions just in the very first year. CASE STUDY.

1. Agile Transformation
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Aguarra, s.r.o., Plzeňská 157 / 98, 150 00 Praha 5, www.aguarra.cz
(c) 2014, Michal Vallo
5 Millions of Euro
Big money or small change?

2. Introduction
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Aguarra, s.r.o., Plzeňská 157 / 98, 150 00 Praha 5, www.aguarra.cz
Aguarra
Michal Vallo
Experience
 15+ years in technology business management
 1 Scrum Master in Czech Republic, introducing Scrum to CZ & SK
 1st Agile Transformation of company in CZ
 Founder Agilia community, Founder Agilia Conference in Brno and Budapest
 Training experience: around 1000 Scrum Masters
 I help organizations to improve performance

3. Agile Transformation 4 Layer Framework
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Aguarra, s.r.o., Plzeňská 157 / 98, 150 00 Praha 5, www.aguarra.cz
SCRUM
DSDM
Prince 2
Crystal
Clear
ITIL
Business
Domain
Testing
Continuous
Integration
Project
Management
Finance
Visualization
Business
Domain
KPI
Purpose
Vision
Team
Work
Environment
Engagement
Product
Parameters
Service
Parameters
DaD
LEAN
Principles
The Work
Growth
TOC - Theory of Constraints:
Elliyahu M. Goldratt
XP
Process
Challenge
Recognition
Collaboration
Empowerment
Customer
Engagement

4. Assisting with Agile
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Aguarra, s.r.o., Plzeňská 157 / 98, 150 00 Praha 5, www.aguarra.cz
Organization
Business: Custom Data Processing
Company Size at start:
cca 400 – 500+
Branches: Europe, Asia, America
Revenue goal = US$ 80-100 Million
Reason for Agile: Development of project management system.
„We need to fix some problem with team in production“.

5. Agile Transformation
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Aguarra, s.r.o., Plzeňská 157 / 98, 150 00 Praha 5, www.aguarra.cz
Historical attempts:
- Select existing system = > Fail
- Create own system = > Fail
„We cannot use existing system, we are VERY SPECIAL here and
we have COMPLICATED PROCESS here.“

6. Scrum Training
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Aguarra, s.r.o., Plzeňská 157 / 98, 150 00 Praha 5, www.aguarra.cz
01 – Training
SCRUM Kick Off
We use Scrum for 1 YEAR and somehow it does not
work.
---------------
A-HA moments: Scrum is different from what we do
now.
---------------
We DO / DO NOT BELIEVE it will work.
The fastest way to burn money is jump into methodology.

7. 04 – Inspection
Scrum Team
Performance
Assessment
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Aguarra, s.r.o., Plzeňská 157 / 98, 150 00 Praha 5, www.aguarra.cz
01 – Training
SCRUM Kick Off
04 – Consulting
Assessment +
Product Design
PROBLEM:
1) Scrum team does not
deliver!
2) Save PROJECT running!
Invested 6-9 M CZK
0 10 20 30 40 50
Knowledge
Response t/change
Value
Motivation
Assessment
20+ departments
VISION
We need system!!!

8. Assessment
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Aguarra, s.r.o., Plzeňská 157 / 98, 150 00 Praha 5, www.aguarra.cz
Organization
---------------
Number of users: cca 40
Departments: 20+
Typical request: change button
„If you have problem, hire more people!“

9. Value Chain
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Aguarra, s.r.o., Plzeňská 157 / 98, 150 00 Praha 5, www.aguarra.cz
Value Chain Analysis
---------------
How exactly is job done? Where
is the value?
Key Discovery
---------------
95% of processes are identical in
principle.
Empower Product Owner – to deliver radical change!
2 - OPEX: Reorganize delivery process – reduce number of
departments – reduce number of people by 100-150.
1 – Play with Scrum Process, Team and PBL to gain productivity.

10. PBL Prioritization
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Aguarra, s.r.o., Plzeňská 157 / 98, 150 00 Praha 5, www.aguarra.cz
Release 1
Release 2
Release 3
Metrics - How to measure impact?
---------------
1) How many new users?
2) How much money? (Savings / Earnings)
• Time
• No of Administrators (PM)
a) Time to delivery (Small Batch)
b) Estimate (Large batch)

11. Scrum and Team
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Aguarra, s.r.o., Plzeňská 157 / 98, 150 00 Praha 5, www.aguarra.cz
03 – Inspection
Scrum Team
Performance
01 – Training
SCRUM Kick Off
03 – Consulting
Assessment +
Product Design
8 – Coaching
Scrum Team
Performance
10 – Coaching
Scrum Team
Performance
PBL
- Prioritized
- True
Coaching Scrum
Master
Creating Team (10) +
including change of
team members.
Performance
improvement.

12. Achievements & Failures
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Aguarra, s.r.o., Plzeňská 157 / 98, 150 00 Praha 5, www.aguarra.cz
600+ Users in 5 months.
Project no longer may
be put on halt.
We have created team,
which delivers.
Use of product deliveres
true value.
Track 1

13. Failures
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Aguarra, s.r.o., Plzeňská 157 / 98, 150 00 Praha 5, www.aguarra.cz
Management
Disconnection.
Failure to materialize
possible savings on
business process
reorganization expected
to 5 million Euro.
Track 2

14. Conclusion - Wrapping Up
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Aguarra, s.r.o., Plzeňská 157 / 98, 150 00 Praha 5, www.aguarra.cz
Bottom up approach in Agile
adoption/transformation is NOT
sustainable.
Implementing Agile is
organization wide project – not
a single activity.
True objectives are often
different than declared goals.
Employee afraid of radical
change, personal interest
prevails.
External consultants often do
not help either, it is against
their interest.

15. Agile Transformation
15
Aguarra, s.r.o., Plzeňská 157 / 98, 150 00 Praha 5, www.aguarra.cz
@aguarrawolf Czech & Slovak Agile Community
5 Millions of Euro
Big money or small change?

16. Contacts
Thank you for your attention......Any questions?
Ing. Michal Vallo, MBA, CSP
Tel. +420 604 226 125
E-mail: mvallo@aguarra.com
www.aguarra.com
@aguarrawolf
Aguarra, s.r.o., Plzeňská 157 / 98, 150 00 Praha 5, www.aguarra.cz 16