Many people confuse strategy (the "what") with operations (the "how") and as a result spend time spinning their wheels without getting anywhere. Actually Agile is not a strategy at all, its an ongoing operational priority. Agile might help you get to your destination faster, but if the destination is wrong the last thing we need is to get there sooner. Sometime our business executives or customers come to us with vague images that are short on the what and why and rich on the how. In order to help them and yourself you need to think at a higher level of abstraction. Come and find out what strategy is and how to implement it. As a result you will know how to think strategically and help executives do the same.

1. Agile is a Bad Strategy
5 Things Every Agile Practicioner Should
Know About Strategy
Hanno Jarvet

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Strategy
Strategy is the framework which guides those
choices that determine the nature and direction
of an organization.

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Strategy
vs.
Opera.ons
A
B
C
D
WHAT?
HOW?
+
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+

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Driving Force
The strategic area which exerts greatest influence.
Exists by default if not deliberately chosen.
1. Products and services offered
2. Markets served
3. Technology
4. Method of sale
5. Method of distribution
6. Natural resources
7. Production Capability
8. Size / Growth
9. Return / Profit

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Givens
• Quality
• Customer service
• Low cost manufacturing
• Growth
• Profit

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Areas of Excellence
1. Products Offered:
– Product Development + Sales/Service
2. Markets Served:
– Market/User Research + Customer Loyalty
3. Technology:
– Technology Research + Application Marketing
4. Production Capability
– Manufacturing Efficiency + Substitute Marketing
5. Method of sale
– Sales recruitment + Sales Effectiveness
6. Method of distribution
– System Effectiveness + System Organisation
7. Natural resources
– Exploration + Conversion
8. Size / Growth
– Volume Maximization + Asset Management
9. Return / Profit
– Portfolio Management + Information Systems

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Critical Issues of Strategy
Implementation
1. Structure
2. Systems / Processes
3. Skills / Competencies
4. Compensation

8. Problems With Current Product
www.jarvet.com
Development Orthodoxy
1. Failure to correctly quantify economics
2. Blindness to queues
3. Worship of efficiency
4. Hostility to variability
5. Worship of conformance
6. Institutionalization of large batch sizes
7. Managing timelines instead of queues
8. Absence of WIP constraints
9. Inflexibility
10. Noneconomic flow control
11. Centralized control
Source: D. Reinertsen

9. Scaled
Agile
Framework™
Big
Picture

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Sequence of Strategy
1. Driving Force
2. Future Scope: product/service/market/geography
3. Performance and Timing Required
4. Key Capabilities Required *
5. Size/Growth Guidelines * #
6. Profit/Return Guidelines * #
7. Business Unit Missions * #
8. Departmental Missions * #
9. Individual Accountabilities #
* Critical issues emerge
# Evaluation required frequently

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Sample Strategic Business
Concepts 1/3
We proactively seek out the building, repair, and remodeling needs of
professional trades people and DIYers in the commercial and
residential construction industry.
We respond with cost effective, differentiated staple products that
enhance the performance or ease the installation of key building
materials and are category leaders.
We concentrate in geographic markets with a significant and/or a
growing construction industry and an adequate distribution
infrastructure to reach a critical mass of end users.
Our intent is to be the recognized leader in the products we offer.

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Sample Strategic Business
Concepts 2/3
Our strategy is to fulfill the complete spectrum of health care needs
of cancer patients and their families.
We respond with treatment options that truly “make a difference”,
delivered by the ablest professionals in a seamless and sensitive
manner that empowers patients to make coherent decisions.
We will concentrate on geographic markets in which we can develop
competitive advantage with all constituencies involved in the
continuum of cancer care.
Our intent is to be the recognized leader in providing positive,
measurable outcomes.

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Sample Strategic Business
Concepts 3/3
We will proactively seek out the market of the professional
information/education needs of the health science market.
We will respond with added-value content that maximizes the
development of valuable copyright materials through multiple
formats, languages and/or distribution channels to capitalize on
profitable customer segments in English-speaking countries.

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Recommended Reading
• The Principles of Product Development Flow: Second Generation
Lean Product Development. Reinertsen
http://www.amazon.co.uk/The-Principles-Product-Development-Flow/dp/1935401009/
ref=sr_1_1?ie=UTF8&qid=1414418416&sr=8-1&keywords=reinertsen+flow
• Top Management Strategy. Tregoe, Zimmerman.
http://www.amazon.co.uk/Top-Management-Strategy-B-B-Tregoe/dp/0906237165/
ref=sr_1_2?ie=UTF8&qid=1414418571&sr=8-2&keywords=top+management+strategy
• 90 min video: Decentralizing Control: How Aligned Initiative
Conquers Uncertainty – Reinertsen
http://vimeo.com/45947817
• http://scaledagileframework.com/