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An Agile Approach to Starting an Agile Transformation Office (COE)
- 1. © 2018 Fannie Mae Trademarks of Fannie Mae For Lasting Change, Take an Agile Approach to Your Agile Transformation Office David McMunn Dan Craig
- 2. © 2016 Fannie Mae. Trademarks of Fannie Mae. 210/23/2018 © 2018 Fannie Mae Trademarks of Fannie Mae David McMunn is an executive experienced in leading organizations through large- scale business improvement transformations. His most recent role was as the Director of an Agile Center of Excellence where he led the organizational transformation to agile over the last three years. Dave’s experience focuses on organizational change management and implementing lean management concepts both within the business and technology organizations. Dave has over 20 years of experience in Agile adoption and execution. Your Presenters… Dan Craig is the Director of the Fannie Mae Agile Center of Excellence. With over 20 years of experience directing business and technical project teams in structured corporate and dynamic start-up environments. Dan has a proven track record of strategic planning and tactical execution of large-scale agile and DevOps transformations in both the public and private sectors. Past transformations include a diverse group including Fannie Mae, the US Defense Department (DoD), and the Patent and Trademark Office (USPTO).
- 3. © 2016 Fannie Mae. Trademarks of Fannie Mae. 310/23/2018 © 2018 Fannie Mae Trademarks of Fannie Mae Large scale transformation is hard Organizational Structure / Silos Governance Budgeting / Finance Contracted Labor Facilities Metrics / Reporting EPMO Processes Scaling Cross-Organizational Dependencies Employee Management Mixed Incentives for individuals Traditional Command and Control Mindset Technical Skills Gap At the TEAM At the PROGRAM At the ENTERPRISE
- 4. © 2016 Fannie Mae. Trademarks of Fannie Mae. 410/23/2018 © 2018 Fannie Mae Trademarks of Fannie Mae Change strategy guides how you build supporting organization Enterprise Driven Organically Created Spectrum of Ownership & Control Pros • Recognizable Structure • Dogma reduces variance • Management buy-in up-front • Controlled Rollout Strategy • Consistent Reporting Cons • Old Patterns / Mindsets • Focus on “How” vs. “Why” • Limits Innovation • Only Change Enough to Meet Model Pros • Emphasizes Values & Principles • Empowers Teams & Individuals • Encourages Experimentation • Allows Localized Optimizations • Fosters Earlier Momentum Cons • Breaks Working Processes • Frustrates People • Harder to Prove ROI • Management Transparency
- 5. © 2016 Fannie Mae. Trademarks of Fannie Mae. 510/23/2018 © 2018 Fannie Mae Trademarks of Fannie Mae COE Balances Mandate vs. Evolution Enterprise Driven • Coach & Scrum Master Placement • Tooling • Training • Adoption/Maturation Metrics • Corporate Ecosystem Organically Created • Standards & Processes • Delivery Metrics • Scale • Lean Management • Product Management* What was the approach Fannie Mae took to delivery of its services?
- 6. © 2016 Fannie Mae. Trademarks of Fannie Mae. 610/23/2018 © 2018 Fannie Mae Trademarks of Fannie Mae Balancing Mandate vs. Evolution Portfolio’s own their transformation… • Determine pace and timing of rollout • Changing mindset within the portfolio • Investing in skill building • Removing barriers • Investing in technical tools and practices (e.g., CI/CD) • Delivery! …the COE establishes “guard rails”
- 7. © 2016 Fannie Mae. Trademarks of Fannie Mae. 710/23/2018 © 2018 Fannie Mae Trademarks of Fannie Mae COE Products and Services Agile Center of Excellence (COE) Training & Coaching Business Agility Skill Building Empowerment & Community Standards & Practices Metrics & Reporting
- 8. © 2016 Fannie Mae. Trademarks of Fannie Mae. 810/23/2018 © 2018 Fannie Mae Trademarks of Fannie Mae Implement Transformation Strategy Agile Center of Excellence (COE) Training & Coaching Business Agility Skill Building Empowerment & Community Standards & Practices Metrics & Reporting Primary Focus Areas • Metrics around “Adoption” o Agile Teams o Agile Release % • Agile “Evangelization” • Ad Hoc Agile Consultation • Training • Placement of Coaches • Delivery Metrics • Reporting Standards • Agile Tooling
- 9. © 2016 Fannie Mae. Trademarks of Fannie Mae. 910/23/2018 © 2018 Fannie Mae Trademarks of Fannie Mae Moving from Organically Created to Enterprise Driven Agile Center of Excellence (COE) Training & Coaching Business Agility Skill Building Empowerment & Community Standards & Practices Metrics & Reporting Primary Focus Areas • Metrics around “Maturity” o Self-Assessment o Technical Practices • Reporting Standards • Best Practices • Scaling Frameworks • Formation of CoPs • Role Based Self- Assessments • Staff Rotations
- 10. © 2016 Fannie Mae. Trademarks of Fannie Mae. 1010/23/2018 © 2018 Fannie Mae Trademarks of Fannie Mae Pivot from a COE to an ATO Agile Transformation Office (ATO) Training & Coaching Business Agility Skill Building Empowerment & Community Standards & Practices Metrics & Reporting • Role Based Self-Assessments • Staff Rotations • Agile Playbook • Gamified Learning Primary Focus Areas • Metrics around “Outcomes” o Time to Market o Production Quality • Product Management o Customer Interaction/Analytics o Marketing o Design • Enabling Organizations o Finance o Human Resources (HR) o Governance/SDLC o Facilities
- 11. © 2016 Fannie Mae. Trademarks of Fannie Mae. 1110/23/2018 © 2018 Fannie Mae Trademarks of Fannie Mae COE Communication Channels Fannie Mae Agile Center of Excellence Fannie Mae Business Portfolios SFCapitalMarkets SFFrontEnd SFSecuritization MultiFamily EnterpriseData Others 1. Coaches and Scrum Masters 2. Communities of Practice 3. Portfolio Transformation Teams Agile Center of Excellence (COE) Training & Coaching Business Agility Skill Building Empowerme nt & Community Standards & Practices Metrics & Reporting
- 12. © 2016 Fannie Mae. Trademarks of Fannie Mae. 1210/23/2018 © 2018 Fannie Mae Trademarks of Fannie Mae The Results 215 Agile Teams 1.5 Months Average Release Frequency 86% Employee Satisfaction (ESAT) 90th Percentile Customer Satisfaction (CSAT) 92% Agile Release Percentage
- 13. © 2016 Fannie Mae. Trademarks of Fannie Mae. 1310/23/2018 © 2018 Fannie Mae Trademarks of Fannie Mae The Benefits…and Costs! • Teams are delivering by mindset • Continuous improvement culture • Culture of innovation • Leaner organization • Ecosystem matures with teams • Buy-In to standards & practices • True business engagement • Sustained momentum • Highlighted actual organizational impediments • Requires unwinding of bad processes / practices • Effort to cross-pollinate good practices • Portfolios are at different points in their respective journeys and potentially gating each other • Scaling conflicts between portfolios • Frustration by staff accustomed to always being told the answer • Centralized functions are struggling to engage and support (Audit, HR, EPMO) Benefits Realized Costs Accepted
- 14. © 2016 Fannie Mae. Trademarks of Fannie Mae. 1410/23/2018 © 2018 Fannie Mae Trademarks of Fannie Mae Parting Thoughts Get explicit on your guiding principles and approach • Portfolios must own their own transformation • COE exists to guide; Lead through influence not edict Plan ahead, but expect change • Think of your transformation in quarters and half-years • Constantly challenge operating assumptions and adjust tactics accordingly Keep leadership engaged; not just informed • Make them own the problem and help them mechanically to do it. • Set metrics to drive demand and guardrails to guide the wave of demand Stay small • Don’t grow to the point where you have to defend your existence • Customer Satisfaction / Intuition should show your value
- 15. © 2018 Fannie Mae Trademarks of Fannie Mae THANK YOU!