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Organizational Alignment -
The Foundation For Business Agility
Welcome – the session will begin shortly!
Organizational Alignment,
The Foundation For Business Agility
Dr. David Rico
Tom Friend
• Author and speaker
• 30+ years technical lead NASA,
U.S. Navy, U.S. Airforce
• 12+ Years Agile Scrum Experience
• 25+ Year IT Application Scrum
• US Naval Aviator & Air Force Pilot
Agenda
• What is Agility
• Enterprise Agile Case Study
• Pivot or Perish
• Business Agility
• The Power of Alignment
• Q&A
What is Agility?
Maximizing
BUSINESS VALUE
with right sized, just-
enough, and
just-in-time processes
and documentation
Highsmith, J. A. (2002). Agile Software Development Ecosystems. Boston, MA: Addison-Wesley.
Where Agile Movement Came From
Source: www.agilemanifesto.org
Individuals and Interaction over process and tools
Working Software over comprehensive documentation
Customer Collaboration over contract negotiation
Responding to Change over following a plan
XP
Crystal
Kanban
RUP
Scrum
Lean
FLEX
“Agile” is an Ecosystem
Levels of Agile in an Organization
XP
TDD
BDD
Scrum
LSD Agile
Practices
Kanban
DevOps
Scrum of
Scrums
Lean
PDCA
Kaizen
A3
Individual Team Department Organization
Daily
Enterprise
Project
Program
Version One Report
Accelerate product delivery 59%
Manage changing priorities 56%
Increase productivity 53%
Predictability 44%
Alignment 40%
9th
Annual
STATE OF
AGILE
SURVEY
Iteration
24
hours
Iteration Backlog Backlog tasks
expanded
by team
Viable
Increment
Daily Coordination
Meeting
Scrum: Framework
1 month or less
The purpose of a Scrum sprint is to deliver an increment of potentially
releasable functionality of the highest value.
Maximum Value Delivered
Value of Work Not Done
1. Optimize Business Value
2. Mitigate Risk
3. Maximum Transparency
Never Used
Seldom Used
Sometimes
Used
Often Used
Always Used
45%
7%
13%
16%
19%
Comparing The Details?
Lifecycle
Deliverables
Time to Market
TrainDD Test
plan
HLD Tech
spec
Build
Funct
test
Deploy
Doc
Deliverables
Time to
Market
Lifecycle
Iterate,Increment
andInnovate
WaterfallBigBang
VS.
12 to 36 months
Define Code Test
6 Months
Potentially Shippable Product Increments
Getting Value Sooner
Time
Value
x
x
x
x x x
x
What value do we get if we cancel here?
Reduction of Risk
Tested &
Working
RISK
RISK
RISK
Tested &
Working
RISK
RISK
Tested &
Working
Tested &
Working
Waterfall Agile
RISK
The Scrum Team Self Organizes to
Attack Risk
Building a High Performance Team
Forming Storming Norming Performing
Source: Dr. Bruce Tuckman
Teams are the foundation for Enterprise Agile Transformation
EffectivenessofTeam
Performance of Team
• New iteration of all systems released every 6 mos
• $43M cost1 (20% of F-35)
• World’s most cost-effective military aircraft (1)
• $143 billion over budget
• Delayed until 2022 (final systems integration)
• Cost of Navy F-35C grew from $273 million in
2014 to $337 million by 2015
Enterprise Agile Case Study
Dept of Defense: Waterfall vs. Agile
$1.5 trillion $15 billion
(1) Jane’s Aviation Weekly
Businesses Have to Pivot or Perish
Why Banks are Embracing Agile
Amazon, Google, Alibaba, 10 cent – all have ROA in
the high teens (15-20%).
JPMorgan 0.9%,
HSBC 0.5%.
Bank of Montreal 0.67%
Barclays 0.05%.
Return on Assets (ROA)
It is All About $$$
20%
<1%
What are Banks focusing on?
High ROALow ROA
No ROA
Organizational Alignment Leads to Agility
Product Vision
Product
Roadmap
Release Plan
Iteration Plan
Daily
Coordination
Long Range Planning
1 year +
Mid Range Planning
6 Months
Short Range Execution
Capability Maturity Model
Agile
Teams
Agile
at Scale
Business
Agility
Simple FLEX Team Alignment
e Staff and SVP
Centralized Planning | Decentralized Execution
VPs, Champions & BU Owners
Sr Directors, Directors & ICs
PLAN EXECUTE
Questions?
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and Let us know how we can meet your learning needs
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Afterburner Webinars | Organizational Alignment - The Foundation of Business Agility

  • 1. Organizational Alignment - The Foundation For Business Agility Welcome – the session will begin shortly!
  • 2. Organizational Alignment, The Foundation For Business Agility Dr. David Rico Tom Friend • Author and speaker • 30+ years technical lead NASA, U.S. Navy, U.S. Airforce • 12+ Years Agile Scrum Experience • 25+ Year IT Application Scrum • US Naval Aviator & Air Force Pilot
  • 3. Agenda • What is Agility • Enterprise Agile Case Study • Pivot or Perish • Business Agility • The Power of Alignment • Q&A
  • 4. What is Agility? Maximizing BUSINESS VALUE with right sized, just- enough, and just-in-time processes and documentation Highsmith, J. A. (2002). Agile Software Development Ecosystems. Boston, MA: Addison-Wesley.
  • 5. Where Agile Movement Came From Source: www.agilemanifesto.org Individuals and Interaction over process and tools Working Software over comprehensive documentation Customer Collaboration over contract negotiation Responding to Change over following a plan
  • 7. Levels of Agile in an Organization XP TDD BDD Scrum LSD Agile Practices Kanban DevOps Scrum of Scrums Lean PDCA Kaizen A3 Individual Team Department Organization Daily Enterprise Project Program
  • 8. Version One Report Accelerate product delivery 59% Manage changing priorities 56% Increase productivity 53% Predictability 44% Alignment 40% 9th Annual STATE OF AGILE SURVEY
  • 9. Iteration 24 hours Iteration Backlog Backlog tasks expanded by team Viable Increment Daily Coordination Meeting Scrum: Framework 1 month or less
  • 10. The purpose of a Scrum sprint is to deliver an increment of potentially releasable functionality of the highest value. Maximum Value Delivered Value of Work Not Done 1. Optimize Business Value 2. Mitigate Risk 3. Maximum Transparency Never Used Seldom Used Sometimes Used Often Used Always Used 45% 7% 13% 16% 19%
  • 11. Comparing The Details? Lifecycle Deliverables Time to Market TrainDD Test plan HLD Tech spec Build Funct test Deploy Doc Deliverables Time to Market Lifecycle Iterate,Increment andInnovate WaterfallBigBang VS. 12 to 36 months Define Code Test 6 Months Potentially Shippable Product Increments
  • 12. Getting Value Sooner Time Value x x x x x x x What value do we get if we cancel here?
  • 13. Reduction of Risk Tested & Working RISK RISK RISK Tested & Working RISK RISK Tested & Working Tested & Working Waterfall Agile RISK
  • 14. The Scrum Team Self Organizes to Attack Risk
  • 15. Building a High Performance Team Forming Storming Norming Performing Source: Dr. Bruce Tuckman Teams are the foundation for Enterprise Agile Transformation EffectivenessofTeam Performance of Team
  • 16. • New iteration of all systems released every 6 mos • $43M cost1 (20% of F-35) • World’s most cost-effective military aircraft (1) • $143 billion over budget • Delayed until 2022 (final systems integration) • Cost of Navy F-35C grew from $273 million in 2014 to $337 million by 2015 Enterprise Agile Case Study Dept of Defense: Waterfall vs. Agile $1.5 trillion $15 billion (1) Jane’s Aviation Weekly
  • 17. Businesses Have to Pivot or Perish
  • 18. Why Banks are Embracing Agile
  • 19. Amazon, Google, Alibaba, 10 cent – all have ROA in the high teens (15-20%). JPMorgan 0.9%, HSBC 0.5%. Bank of Montreal 0.67% Barclays 0.05%. Return on Assets (ROA) It is All About $$$ 20% <1%
  • 20. What are Banks focusing on? High ROALow ROA No ROA
  • 21. Organizational Alignment Leads to Agility Product Vision Product Roadmap Release Plan Iteration Plan Daily Coordination Long Range Planning 1 year + Mid Range Planning 6 Months Short Range Execution
  • 23.
  • 24. Simple FLEX Team Alignment
  • 25. e Staff and SVP Centralized Planning | Decentralized Execution VPs, Champions & BU Owners Sr Directors, Directors & ICs PLAN EXECUTE
  • 27. Our Greatest Accomplishments are Yours We invite you to get a closer look at what Afterburner can do for you and your organization and Let us know how we can meet your learning needs www.afterburner.com team@afterburner.com @AfterburnerInc Join our Discussions on LinkedIn