This document discusses modern agile principles and how to succeed in agile transformation. It provides an overview of various agile concepts and practices organized into quadrants. The key points are: 1) Agile transformation should start by focusing on the biggest bottlenecks in development work in order to quickly demonstrate benefits. 2) Practices like Scrum, Kanban, continuous delivery and improvements, user-centered development, and rapid experimentation can help optimize work flow and deliver value. 3) Successful transformation requires a long-term, modular approach and making sure people have the needed skills and self-managing culture.

1. Kuva: Eneas De Troya, Flickr
Modern Agile
How to succeed in agile transformation
Karoliina Luoto · Codento · 7.11.2018

2. Why agile methodologies?
Source: 12th Annual State of Agile Report. 2018, VersionOne.
% of respondents
Better manage distributed teams
Increase software maintainability
Reduce project cost
Improve engineering discipline
Improve team morale
Reduce project risk
Improve business/IT alignment
Enhance delivery predictability
Enhance software quality
Improve business/IT alignment
Increase productivity
Enhanced ability to manage changing priorities
Accelerate delivery

3. Vision work
Vision on future based on market enviroment
and operations understanding
Market environment
mapping
Value chains and change -
opportunities, risks,
inspiration
Operations understanding and
development
How is customer value produced? Recognizing value
adding parts of operations and investing on those
Building and inspecting metrics
Measuring effectiveness, added value to
customer, progress towards goal
Systematic development with rapid
experiments
Continuous improvement as part of work: solving
development impediments and implementing learnings
or testing the next hypothesis
Operational culture
Systematic skills development of leadership and
personnel for inspiration and reward
Setting
development
goal
Recognizing problem
areas based on vision,
customer need and
current operations and
setting development
goals based on that
Customer need
analysis
Who is customer and
what do they need?
Picture copyright Codento Oy 2018

4. From an agile team to a lean system
Four stages, 2-4 years
© 2012 James Shore and Diana Larsen, Agilefluency.com
Start:
Building
code
Focus on
business value
Team
culture shift
Deliver business
value
Optimize
business value
Optimize
for systems
Team
skills shift
Organization
culture shift
Organization
structure shift

5. Modern agile principles
Aiming at the core aspects of
successful agile development:
● Development work produces
continuous measurable value to
customer
● Development is done safely: risks are
restricted and they are managed
together
● Most challenging parts of development
are done as experiments, and results
are measured and learned from
● Motivated and skillful people are the
core of everything
modernagile.org

6. Transparency
Responding
to change
Adaptation
User need
Testing
Continuous
releasing
Roadmap
planning
Strategy
Operational
environment
changes
Measurability
Piloting
Sharing
success points
Measuring
Trans-
parency
Methods
Actor starting
point
Frameworks
NetworksObjectives &
Key ResultsStrategy
(Peer)
evaluation
Piloting
New
business
Kaizen
Ret-
ro-
spec
tives
Courage
Modern Agile
- modular evolvement
User-centered
development
Coaching,
sharing
learnings
Scrum
and kanban
for
co-ordination
Shared
work
agreement
Agile
releases
and
scaling
Lean
portfolio
managementAgile product
leadership and
procuring
Continuous
improvement
Rapid
experiments
Lean
objectives
Internal
Startups
Concretizing
methodology
Measuring
Self-managing
culture
A thoroughly agile
organization needs a
large set of practices.
However, in order to
succeed in agile
transformation, it is
vital to start from
biggest bottlenecks of
development work.
That way everyone
can see the benefits in
practice.

7. Scrum
and kanban
for
co-ordination
Agile product
leadership
Sharing
learnings
Continuous
improvement
Once the selected
modules are part of
everyday life, we can
proceed to
implementing the next
ones.
User-centered
development
Modern Agile
- modular evolvement

8. Photo: California Bakery, Flickr
What would
Make our client happy?

9. Transparency
Responding
to change
Adaptation
Continuous
releasing
Roadmap
planning
Strategy
Operational
environment
changes
Measurability
Measuring
Trans-
parency
Methods
Actor starting
point
Frameworks
NetworksObjectives &
Key ResultsStrategy
(Peer)
evaluation
Piloting
New
business
Kaizen
Ret-
ro-
spec
tives
Courage
Modern Agile
- modular evolvement
User-centered
development
Coaching,
sharing
learnings
Scrum
and kanban
for
co-ordination
Agile
releases
and
scaling
Lean
portfolio
management
Continuous
improvement
Rapid
experiments
Lean
objectives
Internal
Startups
SAFe or
LeSS
User need
analysis
Testing
Prototyping
Shared
work
agreement Agile product
leadership and
procuring
Piloting
Sharing
success points
Concretizing
methodology
Measuring
Self-managing
culture

10. Deliver value continuously
modernagile.org, kehitetty edelleen Codento Oy:n toimesta
Transparency
Responding
to change
Adaptation
User need
analysis
Testing
Prototyping
Continuous
releasing
Roadmap
planning
Operational
environment
changes
SAFe or
LeSS
Scrum and
kanban for
co-ordination
Agile
releases
and scaling
User-
centered
development

11. Scrum and
Kanban for
co-ordination
Agile
releases
and scaling
● Learn about user needs
● Test solutions
● Optimize work flow
● Respond to change
● Make development transparent
● Make releasing easy, release often
● If several teams develop dependent
products, scale (with e.g. LeSS)
modernagile.org, kehitetty edelleen Codento Oy:n toimesta
User-
centered
development
Deliver value continuously

12. Photo: massdistraction, Flickr
Mitä vaatisi, että oppiminen
Olisi meillä turvallista?
Kuva: Flickr, guilherme jofili
What would safety to change
Require in our environment?

13. Transparency
Responding
to change
Adaptation
Continuous
releasing
Roadmap
planning
Strategy
Operational
environment
changes
Measurability
Measuring
Trans-
parency
Methods
Actor starting
point
Frameworks
NetworksObjectives &
Key ResultsStrategy
(Peer)
evaluation
Piloting
New
business
Kaizen
Ret-
ro-
spec
tives
Courage
Modern Agile
- modular evolvement
User-centered
development
Coaching,
sharing
learnings
Scrum
and kanban
for
co-ordination
Shared
work
agreement
Agile
releases
and
scaling
Lean
portfolio
managementAgile product
leadership
and procuring
Continuous
improvement
Rapid
experiments
Lean
objectives
Internal
Startups
SAFe or
LeSS
User need
analysis
Testing
Prototyping
Piloting
Sharing
success points
Concretizing
methodology
Measuring
Self-managing
culture

14. modernagile.org, kehitetty edelleen Codento Oy:n toimesta
Strategy
Measurability
Piloting
Sharing
success points
Concretizing
methodology
Make safety a prerequisite
Lean
portfolio
management
Agile product
leadership and
procuring
Shared
work
agreement

15. Lean
portfolio
management
Agile product
leadership and
procuring
Shared
work
agreement
Make safety a prerequisite
● Pilot ways of working
● Make a minimum viable work
agreement
● Lead the methodology change
building on successes
● Lead development on objective
level and build on trust
● Measure results
● Strategic priorities for projects
● Fund added value to customer
● Rolling estimating and
budgeting
modernagile.org, kehitetty edelleen Codento Oy:n toimesta

16. Kuva: aglet, Flickr
What is the thing customers
Would want us to try now?

17. Transparency
Responding
to change
Adaptation
Continuous
releasing
Roadmap
planning
Strategy
Operational
environment
changes
Measurability
Measuring
Trans-
parency
Methods
Actor starting
point
Frameworks
NetworksObjectives &
Key ResultsStrategy
(Peer)
evaluation
Piloting
New
business
Kaizen
Ret-
ro-
spec
tives
Courage
Modern Agile
- modular evolvement
User-centered
development
Coaching,
sharing
learnings
Scrum
and kanban
for
co-ordination
Shared
work
agreement
Agile
releases
and
scaling
Lean
portfolio
managementAgile product
leadership
and procuring
Continuous
improvement
Rapid
experiments
Lean
objectives
Internal
Startups
SAFe or
LeSS
User need
analysis
Testing
Prototyping
Piloting
Sharing
success points
Concretizing
methodology
Measuring
Self-managing
culture

18. Experiment & learn rapidly
modernagile.org, kehitetty edelleen Codento Oy:n toimesta
Measuring
Trans-
parency
Piloting
Measuring
New
business
Kaizen
Ret-
ro-
spec
tives
Courage
Sharing
success points
Continuous
improvement
Internal
startups
Rapid
experiments

19. Continuous
improvement
Internal
startups
Rapid
experiments
● If environment requires,
build laboratories for
rapid experiments
● Built in to Scrum and
Kanban
● Not a project but a
constant opportunity for
making work more
meaningful
● Recognize impediment ->
make a hypothesis on solution
-> test -> implement results
modernagile.org, kehitetty edelleen Codento Oy:n toimesta
Experiment & learn rapidly

20. Photo: massdistraction, Flickr
Kuva: Flickr, guilherme jofili
What do our people need now
In order to succeed?

21. Transparency
Responding
to change
Adaptation
Continuous
releasing
Roadmap
planning
Strategy
Operational
environment
changes
Measurability
Measuring
Trans-
parency
Methods
Actor starting
point
Frameworks
NetworksObjectives &
Key ResultsStrategy
(Peer)
evaluation
Piloting
New
business
Kaizen
Ret-
ro-
spec
tives
Courage
Modern Agile
- modular evolvement
User-centered
development
Coaching,
sharing
learnings
Self-managing
culture
Scrum
and kanban
for
co-ordination
Shared
work
agreement
Agile
releases
and
scaling
Lean
portfolio
managementAgile product
leadership
and procuring
Continuous
improvement
Rapid
experiments
Lean
objectives
Internal
Startups
SAFe or
LeSS
User need
analysis
Testing
Prototyping
Piloting
Sharing
success points
Concretizing
methodology
Measuring

22. Make people awesome
modernagile.org, kehitetty edelleen Codento Oy:n toimesta
Methods
Actor starting
point
Frameworks
Networks
Objectives &
Key ResultsStrategy
(Peer)
evaluation
Piloting
New
business
Lean
objectives
Coaching,
sharing
learnings
Self-managing
culture

23. Lean
objectives
Coaching,
sharing
learnings Self-
managing
culture
● Link team and personal
obectives to vision
● Let them modify their
objectives
● Make sure people get support
for learning
● Enable people interested in same
subject to learn from each other ● Degelate everyday decisions to
those doing the work
● Encourage self-management
modernagile.org, kehitetty edelleen Codento Oy:n toimesta
Make people awesome

24. Transparency
Responding
to change
Adaptation
User need
Testing
Continuous
releasing
Roadmap
planning
Strategy
Operational
environment
changes
Measurability
Piloting
Sharing
success points
Measuring
Trans-
parency
Methods
Actor starting
point
Frameworks
NetworksObjectives &
Key ResultsStrategy
(Peer)
evaluation
Piloting
New
business
Kaizen
Ret-
ro-
spec
tives
Courage
Modern Agile
- modular evolvement
User-centered
development
Coaching,
sharing
learnings
Scrum
and kanban
for
co-ordination
Shared
work
agreement
Agile
releases
and
scaling
Lean
portfolio
management
Agile
product
leadership
and
procuring
Continuous
improvement
Rapid
experiments
Lean
objectives
Internal
Startups
Concretizing
methodology
Measuring
Self-managing
culture
Which quadrant do
you feel is the most
relevant for your table?
Which of the three
tools inside it would
make most sense to
start from?
What would it require
that it would be
implemented?

25. The pace of the change
Depends on the environment
Photo: Karoliina
Luoto

26. Understanding the status quo
and the scaled agile transformation
Working using the scaled
agile approaches
Setting mutual
framework
Observation
of work
Large scale
trials and trust
Documentation of
learning
A unified
scaled agile
way of working
Research and teach Facilitate Mentoring of development
Focus of
development
Consulting
approach
Employee
focus
Stage of
maturity
1 2 3 4 5
The goal: an enterprise not afraid to learn

27. Käyttäjä-
lähtöinen
kehittäminen
Kehityksen
arki:
Scrum tai
Kanban
Yhteinen
työtapa-
sopimus
Ketterät
julkaisut
Lean
portfolion-
hallintaKetterä
ohjaus ja
hankinta
Lean
tavoitteen-
asetanta
Valmennus
ja oppien
jakaminen
Itseohjautuva
kulttuuri
Jatkuva
parantaminen
Sisäiset
Startupit
Nopeat
kokeilut
(PDCA)
Kaikilta tasoiltaan ketterä
organisaatio tarvitsee paljon
toimivia käytäntöjä.
Projekteissa on kuitenkin
hyvä aloittaa siitä, mikä juuri
nyt tuntuu vaativan eniten
kehittämistä. Silloin uusista
käytännöistä saadaan eniten
hyötyä.
Kun valitut moduulit on saatu
eläväksi elämäksi,
toimintamallia voidaan
täydentää seuraavilla
oleellisilla osilla.
Läpinäkyvyys
Muutokseen
reagoiminen
Sopeuttaminen
Asiakkaan
tarve
Testaaminen
Julkaistaan
jatkuvasti
Tiekartta-
suunnittelu
Asiakkaan
tarve
Strategia
Toiminta-
ympäristön
muutos
Mitattavuus
Pilotointi
Onnistumisten
levittäminen
Mittaa-
minen
Läpi-
näkyvyys
Viitemallit
Toimijan
lähtökohdat
Työkalut
VerkostotObjectives &
Key ResultsStrategia
Vertaisarviointi
Pilotointi
Mittaa-
minen
Uusi
liike-
toiminta
Kaizen
Ret-
ro-
spek-
tiivit
Rohkeus
Pikku hiljaa
ketteräksi
Visio
Lean change
management
Kuva: Flickr, José María Pérez Nuñez
Change is systemic
Fixing one thing often fixes others

28. Development challenge
Which obstacle will be
tackled next?
Based on model from (c) Mike Rother
Current condition What prevents us?
1
2
3
4
5
6...
Target condition
●

29. Photo: Javier Martínez Solera, Flickr
Learning together
Opens new horizons
anu.takala@codento.com · kaj.mustikkamaki@codento.com ·
miika.kuha@codento.com · karoliina.luoto@codento.com ·