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ManageAgile Berlin 2012

       Lean and agile transformation –
how do you survive the radical shift towards
Inversion of Responsibility and Control while
      staying Accountable for Results?

                             Wolfgang Hilpert
                              Thoralf J. Klatt

                              AGT International
  w/ contributions by Jürgen Habermeier, Mathias Held, Marek Meyer, Jonas Dageförde et al
Leadership Path to Agility

From explicit fine-grained control


… and “active” leadership …


… to “subtle control”*
* The new new product development game - Stop running the relay race and take up
rugby - Harvard Business Review 1986, Hirotaka Takeuchi and Ikujiro Nonaka
Speaker Background:
                     Wolfgang Hilpert
                    VP Development, AGT International
                     whilpert@agtinternational.com


Professional                            Personal
• Led product development               • Husband & father of 2 kids
  teams
   … @ startup, mid-size and industry
                                        • Half-marathon runner,
   leading ISVs incl. IBM, MSFT, SAP      soccer player and cross-
   … through product life cycle from      country skier
   idea on drawing board, design,
   development, market introduction     • Occasional hiker & biker
   and adoption                         • Occasional photographer
   … in plan-driven & agile product
   development
• Initiated lean & agile
  transformation @ SAP
Speaker Background:
                       Thoralf J. Klatt
                 Corporate Agile Coach, AGT International
                      tjklatt@agtinternational.com


Professional                          Personal
• Led and coached product             • Husband & father of 3 kids
  development teams                   • Swimming and running
   … Siemens MED, Nokia Siemens
                                      • Occasional hiker
   Networks, Siemens USA
   … as servant leader, system test   • Street photographer
   lead, senior developer             • Likes Jazz
   … traditional and agile 400+
• Initiated lean & agile
  transformation @ NSN BSS
Storyline
1. Our „view of the universe“
  – Turning traditional world and roles upside down
2. The journey
  A) Evolving team and growing into scrum roles
  B) Tension: existing org vs. Agile greenfield
     • Critical exchange between two worlds
  C) Cont. Improvement of agile methods & tools
Storyline
1. Our „view of the universe“
  – Turning traditional world and roles upside down
2. The journey
  A) Evolving team and growing into scrum roles
  B) Tension: existing org vs. Agile greenfield
     • Critical exchange between two worlds
  C) Cont. Improvement of agile methods & tools
Agile Turns Tradition Upside-Down
Constrained                  Requirements              Budget              Schedule


                                                           Value/ Vision
              Traditional
                                                              Driven
               Waterfall
                                                                               Agile /
                                  Plan                                         Scrum
                                 Driven


Estimated               Budget              Schedule            Features
Agile Turns Reality back on its Feet
Estimated               Budget              Schedule            Features



                                  Plan
                                                                             Agile /
              Traditional        Driven                                      Scrum
               Waterfall

                                                                Value/
                                                                Vision
                                                                Driven
Constrained                  Requirements              Budget              Schedule
Leadership Impact
Command & Control LS style                „Radical Management“ LS Style
• Manager defines the WHAT & the          • Agile manager coaches PO to
  HOW                                       define the WHY and the WHAT
• Flow of information constrained         • Agile team defines (and updates!)
  by expertise level                        the HOW
• Outcome depends heavily on              • Outcome leverages skills of
  skills & foresight of manager             entire team
Instructions




                                            Instructions


               Breadth of understanding                    Breadth of understanding
Loosen the Grip to Extend your Reach!
Storyline
1. Our „view of the universe“
  – Turning traditional world and roles upside down
2. The journey
  A) Evolving team and growing into scrum roles
  B) Tension: existing org vs. Agile greenfield
     • Critical exchange between two worlds
  C) Cont. Improvement of agile methods & tools
Phased Approach

    First small
experimental Scrum
       team            1st Demo




                     Waterfall Projects, Top Down managed

  I) Greenfield
Defining Moments (1/6):
        Settling into Key Scrum Roles



Issue          Product Owner (PO) & Scrum Master (SM) new
               to their roles when Scrum teams where formed

Transition     -   Focus on respective responsibilities as
needed              - PO ( drive and groom the backlog) and
                        SM( process stewart) and
               -   Let go of other responsibilities

Key            -   Scrum Training
take away      -   Share helpful practices
Separation of Concerns in Scrum
             Product Owner - what
             owns ROI & Vision




                                               TRANSPARENCY
                             Scrum Master*
                             … Process


                                  Team - how
                                  … Quality
Mgmt
               Container
       Strategy, Environment, Budget
Defining Moments (2/6):
        Priority setting during the sprint
Issue           Pressure to complete user
                stories by end of sprint;
                   Team requests delay of
                test automation work as
                mandated by Definition
                of Done (DoD)

Transition      Re-evaluation of what delivery of „Product Increment“
needed          (per DoD) means


Key             Do not compromise agreed quality standards for
take away       misrepresenting the actual progress, learn from over-
                committment etc.
Defining Moments (3/6):
    Priority setting for the next sprint
Issue           Product owner could not rely on system to
                perform demo on short notice

Transition      • readiness to invest in quality measures at
needed             an early stage
                • Product owner initiated discussion &
                   created a sense of urgency within scrum
                   team
Key take away   Best outcome requires full engagement of
                the entire Scrum team („shares the pain“) in
                finding the best possbile solution to
                maximize customer value under given
                circumstances
Defining Moments (4/6):
        Fail Early on new Technology


Issue         To optimize for cross platform mobile development we
              analyzed and selected 3rd party framework.
                 Development progress stalled

Transition    • Re-architect system to adopt 3rd party framework
              • Slice user stories to showcase minimal functionality
needed          in end-to-end manner early on

Key           Targeting end-to-end user stories revealed erroneous
              technology choice early on;
take away        helped to contain loss of development capacity
              (within 3 sprints)
Fail Early, Fail Fast, Fail Often
Phased Approach

                         1st Version
    First small
experimental Scrum
       team            1st Demo



                      CI ready




    2nd Scrum Team     ?
                                 ?
                     Waterfall Projects, Top Down managed

  I) Greenfield II) Interest
Defining Moments (5/6):
        Release Planning Visualized
Issue           Even though teams did regular Agile release
                planning the teams did not see the big
                picture on a daily basis

Transition      •   Continuous and open planning
needed          •   Visualize Vision and Release Goals
                •   Regular interaction and reflection
                •   Utilize coherence
Key take away   Create and maintain Release board
Release Board
Defining Moments (6/6):
    Deal with External Dependencies
Issue           Many external dependencies e.g. OEM,
                remote platform team, global IT, … lead to
                waste (e.g. in the form of „Waiting“)

Transition      •   Clarify responsibilites/ownership
needed          •   Minimize work in progress
                •   Reduce cycle time
                •   Decoupling as possible
Key take away   Take IT into the boat (cf. DevOps), Strive for
                end-to-end ownership/lean architecure,
                Establish broader skill set and automomous
                testing capabilities
Storyline
1. Our „view of the universe“
  – Turning traditional world and roles upside down
2. The journey
  A) Evolving team and growing into scrum roles
  B) Tension: existing org vs. Agile greenfield
     • Critical exchange between two worlds
  C) Cont. Improvement of agile methods & tools
Tension:
      Plan Driven vs. Agile Greenfield
Plan-Driven teams                 Agile, Scrum based teams
• Fixed time, budget & scope      • Fixed budget & delivery
   commitments                      schedule (sprint rhythm)
• Significant quality problems,   • Early discovery of quality
   schedule over-runs               problems
• Many short term change of       • Development priorities
   priorties                        stable at minimum during
                                    sprints
Organization Stereotypes
• Where is your QA team? (to throw the code
  over the fence to ...?)
• Why are you only able to accept changes on a
  bi-weekly basis?
• Who is your project manager?          Fail and
                                         learn fast,
                                           reduce
                                           waste,
                                         tackle risk
Phased Approach
                                                                 Test results
                                                      reflecting real Product maturity
                         1st Version
    First small
experimental Scrum
       team            1st Demo            Mature
                                           Velocity

                      CI ready



                                            Agile Projects, Scrum, CI



    2nd Scrum Team     ?                        !
                                 ?     !
                     Waterfall Projects, Top Down managed

  I) Greenfield II) Interest           III) Surprise
Pleasant Surprises w/ Scrum
• Test (code) coverage fully embraced by scrum
  teams
• Full transparency of test results (CI radiator)
• Velocity track record sprint by sprint
  – Minimal negative impact on quality by change
    requests
Transparency CI Radiator
   Big Screen in the coffee lounge
  Where Teams meet and discuss …
Example:
  Agile Release Tracking and Rebase

               Consolidated
                 Release
                 Planning

                                                                Release
                                                               Candidate


                      Roadmap
                       update



VIP 1 Scope
   added
                                         Architecture Rebase
              VIP 2 scope                      Decision
                                                                           RC
                added            today
storyline
1. Our „view of the universe“
  – Turning traditional world and roles upside down
2. The journey
  A) Evolving team and growing into scrum roles
  B) Tension: existing org vs. Agile greenfield
     • Critical exchange between two worlds
  C) Cont. Improvement of agile methods & tools
Phased Approach
                                                                 Test results
                                                      reflecting real Product maturity
                         1st Version
    First small
experimental Scrum
       team            1st Demo            Mature
                                           Velocity

                                                           Test Automation
                      CI ready                             Coverage > 80%


                                            Agile Projects, Scrum, CI



    2nd Scrum Team     ?                        !
                                 ?     !
                     Waterfall Projects, Top Down managed

  I) Greenfield II) Interest           III) Surprise                 IV) Transformation
Metrics that worked for us
•   Burndown of user stories, projected release
•   Velocity
•   Estimation accuracy
•   Test automation coverage

… and ScrumBan
• Cycle Times for Stories
• Lead Times for Defects
Code Coverage by Test Automation
Estimation Accuracy


                         Split into 2
                           Teams




                  Sustainable Challenge




                      New Technology
Subtle Control
‘Although project teams are largely on their own, they
are not uncontrolled… the emphasis is on "self-
control," "control through peer pressure," and
"control by love,'' which collectively we call "subtle
control.“’

From: The new new product development game - Stop running the relay race and
take up rugby - Harvard Business Review 1986, Hirotaka Takeuchi and Ikujiro Nonaka
Team Flow
Mental States
Leadership Path to Agility


Problem-solving Leader (Expert)
   • tend to micro-manage

Strategic Leader (Achiever)
    • leading actively

Visionary Leader (Catalyst)
    • growing capabilities
Michael Sahota:
http://agilitrix.com/2012/08/leadership-agility-a-
model-for-understanding-managers/
whilpert@agtinternational.com
 tjklatt@agtinternational.com

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Manage agile-berlin-2012-hilpert-klatt

  • 1. ManageAgile Berlin 2012 Lean and agile transformation – how do you survive the radical shift towards Inversion of Responsibility and Control while staying Accountable for Results? Wolfgang Hilpert Thoralf J. Klatt AGT International w/ contributions by Jürgen Habermeier, Mathias Held, Marek Meyer, Jonas Dageförde et al
  • 2. Leadership Path to Agility From explicit fine-grained control … and “active” leadership … … to “subtle control”* * The new new product development game - Stop running the relay race and take up rugby - Harvard Business Review 1986, Hirotaka Takeuchi and Ikujiro Nonaka
  • 3. Speaker Background: Wolfgang Hilpert VP Development, AGT International whilpert@agtinternational.com Professional Personal • Led product development • Husband & father of 2 kids teams … @ startup, mid-size and industry • Half-marathon runner, leading ISVs incl. IBM, MSFT, SAP soccer player and cross- … through product life cycle from country skier idea on drawing board, design, development, market introduction • Occasional hiker & biker and adoption • Occasional photographer … in plan-driven & agile product development • Initiated lean & agile transformation @ SAP
  • 4. Speaker Background: Thoralf J. Klatt Corporate Agile Coach, AGT International tjklatt@agtinternational.com Professional Personal • Led and coached product • Husband & father of 3 kids development teams • Swimming and running … Siemens MED, Nokia Siemens • Occasional hiker Networks, Siemens USA … as servant leader, system test • Street photographer lead, senior developer • Likes Jazz … traditional and agile 400+ • Initiated lean & agile transformation @ NSN BSS
  • 5. Storyline 1. Our „view of the universe“ – Turning traditional world and roles upside down 2. The journey A) Evolving team and growing into scrum roles B) Tension: existing org vs. Agile greenfield • Critical exchange between two worlds C) Cont. Improvement of agile methods & tools
  • 6. Storyline 1. Our „view of the universe“ – Turning traditional world and roles upside down 2. The journey A) Evolving team and growing into scrum roles B) Tension: existing org vs. Agile greenfield • Critical exchange between two worlds C) Cont. Improvement of agile methods & tools
  • 7. Agile Turns Tradition Upside-Down Constrained Requirements Budget Schedule Value/ Vision Traditional Driven Waterfall Agile / Plan Scrum Driven Estimated Budget Schedule Features
  • 8. Agile Turns Reality back on its Feet Estimated Budget Schedule Features Plan Agile / Traditional Driven Scrum Waterfall Value/ Vision Driven Constrained Requirements Budget Schedule
  • 9. Leadership Impact Command & Control LS style „Radical Management“ LS Style • Manager defines the WHAT & the • Agile manager coaches PO to HOW define the WHY and the WHAT • Flow of information constrained • Agile team defines (and updates!) by expertise level the HOW • Outcome depends heavily on • Outcome leverages skills of skills & foresight of manager entire team Instructions Instructions Breadth of understanding Breadth of understanding
  • 10. Loosen the Grip to Extend your Reach!
  • 11. Storyline 1. Our „view of the universe“ – Turning traditional world and roles upside down 2. The journey A) Evolving team and growing into scrum roles B) Tension: existing org vs. Agile greenfield • Critical exchange between two worlds C) Cont. Improvement of agile methods & tools
  • 12. Phased Approach First small experimental Scrum team 1st Demo Waterfall Projects, Top Down managed I) Greenfield
  • 13. Defining Moments (1/6): Settling into Key Scrum Roles Issue Product Owner (PO) & Scrum Master (SM) new to their roles when Scrum teams where formed Transition - Focus on respective responsibilities as needed - PO ( drive and groom the backlog) and SM( process stewart) and - Let go of other responsibilities Key - Scrum Training take away - Share helpful practices
  • 14. Separation of Concerns in Scrum Product Owner - what owns ROI & Vision TRANSPARENCY Scrum Master* … Process Team - how … Quality Mgmt Container Strategy, Environment, Budget
  • 15. Defining Moments (2/6): Priority setting during the sprint Issue Pressure to complete user stories by end of sprint; Team requests delay of test automation work as mandated by Definition of Done (DoD) Transition Re-evaluation of what delivery of „Product Increment“ needed (per DoD) means Key Do not compromise agreed quality standards for take away misrepresenting the actual progress, learn from over- committment etc.
  • 16. Defining Moments (3/6): Priority setting for the next sprint Issue Product owner could not rely on system to perform demo on short notice Transition • readiness to invest in quality measures at needed an early stage • Product owner initiated discussion & created a sense of urgency within scrum team Key take away Best outcome requires full engagement of the entire Scrum team („shares the pain“) in finding the best possbile solution to maximize customer value under given circumstances
  • 17. Defining Moments (4/6): Fail Early on new Technology Issue To optimize for cross platform mobile development we analyzed and selected 3rd party framework. Development progress stalled Transition • Re-architect system to adopt 3rd party framework • Slice user stories to showcase minimal functionality needed in end-to-end manner early on Key Targeting end-to-end user stories revealed erroneous technology choice early on; take away helped to contain loss of development capacity (within 3 sprints)
  • 18. Fail Early, Fail Fast, Fail Often
  • 19. Phased Approach 1st Version First small experimental Scrum team 1st Demo CI ready 2nd Scrum Team ? ? Waterfall Projects, Top Down managed I) Greenfield II) Interest
  • 20. Defining Moments (5/6): Release Planning Visualized Issue Even though teams did regular Agile release planning the teams did not see the big picture on a daily basis Transition • Continuous and open planning needed • Visualize Vision and Release Goals • Regular interaction and reflection • Utilize coherence Key take away Create and maintain Release board
  • 22. Defining Moments (6/6): Deal with External Dependencies Issue Many external dependencies e.g. OEM, remote platform team, global IT, … lead to waste (e.g. in the form of „Waiting“) Transition • Clarify responsibilites/ownership needed • Minimize work in progress • Reduce cycle time • Decoupling as possible Key take away Take IT into the boat (cf. DevOps), Strive for end-to-end ownership/lean architecure, Establish broader skill set and automomous testing capabilities
  • 23. Storyline 1. Our „view of the universe“ – Turning traditional world and roles upside down 2. The journey A) Evolving team and growing into scrum roles B) Tension: existing org vs. Agile greenfield • Critical exchange between two worlds C) Cont. Improvement of agile methods & tools
  • 24. Tension: Plan Driven vs. Agile Greenfield Plan-Driven teams Agile, Scrum based teams • Fixed time, budget & scope • Fixed budget & delivery commitments schedule (sprint rhythm) • Significant quality problems, • Early discovery of quality schedule over-runs problems • Many short term change of • Development priorities priorties stable at minimum during sprints
  • 25. Organization Stereotypes • Where is your QA team? (to throw the code over the fence to ...?) • Why are you only able to accept changes on a bi-weekly basis? • Who is your project manager? Fail and learn fast, reduce waste, tackle risk
  • 26. Phased Approach Test results reflecting real Product maturity 1st Version First small experimental Scrum team 1st Demo Mature Velocity CI ready Agile Projects, Scrum, CI 2nd Scrum Team ? ! ? ! Waterfall Projects, Top Down managed I) Greenfield II) Interest III) Surprise
  • 27. Pleasant Surprises w/ Scrum • Test (code) coverage fully embraced by scrum teams • Full transparency of test results (CI radiator) • Velocity track record sprint by sprint – Minimal negative impact on quality by change requests
  • 28. Transparency CI Radiator Big Screen in the coffee lounge Where Teams meet and discuss …
  • 29. Example: Agile Release Tracking and Rebase Consolidated Release Planning Release Candidate Roadmap update VIP 1 Scope added Architecture Rebase VIP 2 scope Decision RC added today
  • 30. storyline 1. Our „view of the universe“ – Turning traditional world and roles upside down 2. The journey A) Evolving team and growing into scrum roles B) Tension: existing org vs. Agile greenfield • Critical exchange between two worlds C) Cont. Improvement of agile methods & tools
  • 31. Phased Approach Test results reflecting real Product maturity 1st Version First small experimental Scrum team 1st Demo Mature Velocity Test Automation CI ready Coverage > 80% Agile Projects, Scrum, CI 2nd Scrum Team ? ! ? ! Waterfall Projects, Top Down managed I) Greenfield II) Interest III) Surprise IV) Transformation
  • 32. Metrics that worked for us • Burndown of user stories, projected release • Velocity • Estimation accuracy • Test automation coverage … and ScrumBan • Cycle Times for Stories • Lead Times for Defects
  • 33. Code Coverage by Test Automation
  • 34. Estimation Accuracy Split into 2 Teams Sustainable Challenge New Technology
  • 35. Subtle Control ‘Although project teams are largely on their own, they are not uncontrolled… the emphasis is on "self- control," "control through peer pressure," and "control by love,'' which collectively we call "subtle control.“’ From: The new new product development game - Stop running the relay race and take up rugby - Harvard Business Review 1986, Hirotaka Takeuchi and Ikujiro Nonaka
  • 37. Leadership Path to Agility Problem-solving Leader (Expert) • tend to micro-manage Strategic Leader (Achiever) • leading actively Visionary Leader (Catalyst) • growing capabilities Michael Sahota: http://agilitrix.com/2012/08/leadership-agility-a- model-for-understanding-managers/