LKCE19 - Matías E. Fernández - Continuous Transformation in a Large Complex Organisation

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In 2017 we set out to become 'the best and coolest DevOps team in Switzerland'. Our ambition for the next three year was, and still is, to: * reduce the number of critical incidents by 50 % every year * reduce the cost for centralised quality assurance by 60 % * reduce the amount of central leadership positions to 5 % 'We' means a team of approx 1.400 people working in software development in a large complex organisation, a leading telecommunications provider in Switzerland. This is an experience report of our continuous transformation.

Business

Continuous Transformation
in a Large Complex Organisation
Matías E. Fernández
@matiasfrndz
Lean Kanban Central Europe, 2019-11-06

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Our Market Share

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Strategy

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Organisational Structure

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Bimodal IT
2016
2015
Functional Silos
DevOps & BizDevOps
2017
Swisscom Agility
2018
Our Journey

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Aspects of Transformation
People
Organisation
Processes
Technology

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Organisation

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#SwisscomModel
#ftw

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An Agile Team
at eye level

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A Tribe
Agile Coach & Tribe Chief
approximately 40 to 160 people
at eye level

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A Tribe Cluster

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Our DevOps Organisation

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Organisation
Two Types of Structure

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Organisation
Organisational Structure
&
Operational Structure

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Our DevOps Organisation

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Combining Organisational and Operational Structure
Value Streams

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Our DevOps Organisation

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The Transformation Circle
Transformation Circle

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Transformation Circle
Cross-Functional and Cross-Hierarchy

The best and coolest DevOps Software Team in Switzerland
Purpose Statements &
Impact Indicators
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Impact Indicators
Indicator 2018 2019 2020
Central Leadership Positions <= 5% <= 5% <= 5%
# Critical Incidents 16 8 4
Cost Centralised QA -25% -50% -75%

The best and coolest DevOps Software Team in Switzerland
Purpose Statements &
Impact Indicators
Change Management
Data Security &
Privacy Compliance
Lean-Agile Organisation
Operational Excellence
Quality & Stability Excellence
Software Engineering
Excellence
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MatíasE.Fernández,2019-11-06,ContinuousTransformationinaLargeComplexOrganisation,LKCE2019
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Transformation Capacity
15%

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Jonathan Smart, @jonsmart
«
«
Better Value Sooner Safer Hapier

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What could happen?

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Cumulative Flow Diagram

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This is no Optical Illusion

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WIP Run Chart

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What would you do?

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Reveal the system to itself.

Orientation
Intent
Approach
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Mission Command / Commander’s Intent

The best and coolest DevOps Software Team in Switzerland
Purpose Statements &
Wirkungsindikatoren
Built-in Quality
Must-Win Battle
Flow & Mastery
Focus Topic
Monitoring & Machine Learning
Focus Topic
DevSecOps
Focus Topic
Tribe Transformation Roadmaps
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Tribe Transformation Roadmaps
decentralised decision-making

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Cumulative Flow Diagram

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WIP Run Chart

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What About the Impact Indicators?
Indicator 2018 2019 2020
Central Leadership Positions <= 5% <= 5% <= 5%
# Critical Incidents 16 8 4
Cost Centralised QA -25% -50% -75%

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• Combine Organisational and Operational Structure
• Establish Cross-Functional and Cross-Hierarchy Teams
• Allocate Capacity for Transformation
• Reveal the system to itself
• Decentralise decision making

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thoughts
ideas
opinions
Your feedback is welcome.
… let’s talk and learn together.

MatíasE.Fernández,2019-11-06,ContinuousTransformationinaLargeComplexOrganisation,LKCE2019
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Matías E. Fernández
Agile Coach
@matiasfrndz
linkedin.com/in/matiasfrndz/
Contact

The goal of this presentation is to show how a Financial Technology Company in Brazil sustainable evolve from 20 teams running around 50 initiatives to 140 teams with more then 400 initiatives in 4 years, becoming NYSE's Biggest IPO Since Snap in 2018, following what we call an Agile Journey supported by Kanban. Some of the practices we use in our organization that will be presented here: Fit for Purpose clients segmentation, OKRs to provide alignment between strategic, tactical and operational levels, Lean Canvas and A3 for design, implementation and delivery process follow up and, finally, a Portfolio Kanban that started in a Power Point, with metrics done manually in Excel, based in the Spotify Product Development process and today is evolving based on Flight Levels, supported by tools as Swiftkanban and PowerBI and in the autonomy of people involved in this process, as Management and Product Owners.

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LKCE19 - Matías E. Fernández - Continuous Transformation in a Large Complex Organisation

1. Continuous Transformation in a Large Complex Organisation Matías E. Fernández @matiasfrndz Lean Kanban Central Europe, 2019-11-06

2. MatíasE.Fernández,2019-11-06,ContinuousTransformationinaLargeComplexOrganisation,LKCE2019 2

3. MatíasE.Fernández,2019-11-06,ContinuousTransformationinaLargeComplexOrganisation,LKCE2019 3 Our Market Share

4. MatíasE.Fernández,2019-11-06,ContinuousTransformationinaLargeComplexOrganisation,LKCE2019 4 Strategy

5. MatíasE.Fernández,2019-11-06,ContinuousTransformationinaLargeComplexOrganisation,LKCE2019 5 Organisational Structure

6. MatíasE.Fernández,2019-11-06,ContinuousTransformationinaLargeComplexOrganisation,LKCE2019 6 Bimodal IT 2016 2015 Functional Silos DevOps & BizDevOps 2017 Swisscom Agility 2018 Our Journey

7. MatíasE.Fernández,2019-11-06,ContinuousTransformationinaLargeComplexOrganisation,LKCE2019 7 Aspects of Transformation People Organisation Processes Technology

8. MatíasE.Fernández,2019-11-06,ContinuousTransformationinaLargeComplexOrganisation,LKCE2019 8 Organisation

9. MatíasE.Fernández,2019-11-06,ContinuousTransformationinaLargeComplexOrganisation,LKCE2019 9 #SwisscomModel #ftw

10. MatíasE.Fernández,2019-11-06,ContinuousTransformationinaLargeComplexOrganisation,LKCE2019 10 An Agile Team at eye level

11. MatíasE.Fernández,2019-11-06,ContinuousTransformationinaLargeComplexOrganisation,LKCE2019 11 A Tribe Agile Coach & Tribe Chief approximately 40 to 160 people at eye level

12. MatíasE.Fernández,2019-11-06,ContinuousTransformationinaLargeComplexOrganisation,LKCE2019 12 A Tribe Cluster

13. MatíasE.Fernández,2019-11-06,ContinuousTransformationinaLargeComplexOrganisation,LKCE2019 13 Our DevOps Organisation

14. MatíasE.Fernández,2019-11-06,ContinuousTransformationinaLargeComplexOrganisation,LKCE2019 14 Organisation Two Types of Structure

15. MatíasE.Fernández,2019-11-06,ContinuousTransformationinaLargeComplexOrganisation,LKCE2019 15 Organisation Organisational Structure & Operational Structure

16. MatíasE.Fernández,2019-11-06,ContinuousTransformationinaLargeComplexOrganisation,LKCE2019 16 Our DevOps Organisation

17. MatíasE.Fernández,2019-11-06,ContinuousTransformationinaLargeComplexOrganisation,LKCE2019 17 Combining Organisational and Operational Structure Value Streams

18. MatíasE.Fernández,2019-11-06,ContinuousTransformationinaLargeComplexOrganisation,LKCE2019 18 Our DevOps Organisation

19. MatíasE.Fernández,2019-11-06,ContinuousTransformationinaLargeComplexOrganisation,LKCE2019 19 The Transformation Circle Transformation Circle

20. MatíasE.Fernández,2019-11-06,ContinuousTransformationinaLargeComplexOrganisation,LKCE2019 20 Transformation Circle Cross-Functional and Cross-Hierarchy

21. The best and coolest DevOps Software Team in Switzerland Purpose Statements & Impact Indicators MatíasE.Fernández,2019-11-06,ContinuousTransformationinaLargeComplexOrganisation,LKCE2019 21

22. MatíasE.Fernández,2019-11-06,ContinuousTransformationinaLargeComplexOrganisation,LKCE2019 22 Impact Indicators Indicator 2018 2019 2020 Central Leadership Positions <= 5% <= 5% <= 5% # Critical Incidents 16 8 4 Cost Centralised QA -25% -50% -75%

23. The best and coolest DevOps Software Team in Switzerland Purpose Statements & Impact Indicators Change Management Data Security & Privacy Compliance Lean-Agile Organisation Operational Excellence Quality & Stability Excellence Software Engineering Excellence MatíasE.Fernández,2019-11-06,ContinuousTransformationinaLargeComplexOrganisation,LKCE2019 23

24. MatíasE.Fernández,2019-11-06,ContinuousTransformationinaLargeComplexOrganisation,LKCE2019 24 Transformation Capacity 15%

25. MatíasE.Fernández,2019-11-06,ContinuousTransformationinaLargeComplexOrganisation,LKCE2019 25 Jonathan Smart, @jonsmart « « Better Value Sooner Safer Hapier

26. MatíasE.Fernández,2019-11-06,ContinuousTransformationinaLargeComplexOrganisation,LKCE2019 26 What could happen?

27. MatíasE.Fernández,2019-11-06,ContinuousTransformationinaLargeComplexOrganisation,LKCE2019 27 Cumulative Flow Diagram

28. MatíasE.Fernández,2019-11-06,ContinuousTransformationinaLargeComplexOrganisation,LKCE2019 28 This is no Optical Illusion

29. MatíasE.Fernández,2019-11-06,ContinuousTransformationinaLargeComplexOrganisation,LKCE2019 29 WIP Run Chart

30. MatíasE.Fernández,2019-11-06,ContinuousTransformationinaLargeComplexOrganisation,LKCE2019 30 What would you do?

31. MatíasE.Fernández,2019-11-06,ContinuousTransformationinaLargeComplexOrganisation,LKCE2019 31 Reveal the system to itself.

32. Orientation Intent Approach MatíasE.Fernández,2019-11-06,ContinuousTransformationinaLargeComplexOrganisation,LKCE2019 32 Mission Command / Commander’s Intent

33. The best and coolest DevOps Software Team in Switzerland Purpose Statements & Wirkungsindikatoren Built-in Quality Must-Win Battle Flow & Mastery Focus Topic Monitoring & Machine Learning Focus Topic DevSecOps Focus Topic Tribe Transformation Roadmaps MatíasE.Fernández,2019-11-06,ContinuousTransformationinaLargeComplexOrganisation,LKCE2019 33

34. MatíasE.Fernández,2019-11-06,ContinuousTransformationinaLargeComplexOrganisation,LKCE2019 34 Tribe Transformation Roadmaps decentralised decision-making

35. MatíasE.Fernández,2019-11-06,ContinuousTransformationinaLargeComplexOrganisation,LKCE2019 35 Cumulative Flow Diagram

36. MatíasE.Fernández,2019-11-06,ContinuousTransformationinaLargeComplexOrganisation,LKCE2019 36 WIP Run Chart

37. MatíasE.Fernández,2019-11-06,ContinuousTransformationinaLargeComplexOrganisation,LKCE2019 37 What About the Impact Indicators? Indicator 2018 2019 2020 Central Leadership Positions <= 5% <= 5% <= 5% # Critical Incidents 16 8 4 Cost Centralised QA -25% -50% -75%

38. MatíasE.Fernández,2019-11-06,ContinuousTransformationinaLargeComplexOrganisation,LKCE2019 38 • Combine Organisational and Operational Structure • Establish Cross-Functional and Cross-Hierarchy Teams • Allocate Capacity for Transformation • Reveal the system to itself • Decentralise decision making

39. MatíasE.Fernández,2019-11-06,ContinuousTransformationinaLargeComplexOrganisation,LKCE2019 39 thoughts ideas opinions Your feedback is welcome. … let’s talk and learn together.

40. MatíasE.Fernández,2019-11-06,ContinuousTransformationinaLargeComplexOrganisation,LKCE2019 40 Matías E. Fernández Agile Coach @matiasfrndz linkedin.com/in/matiasfrndz/ Contact

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