How do digital innovation and the adoption of Agile methods within the enterprise fit together? What prerequisites are needed to achieve Business Agility? What influence does the leadership culture have on the success of the Agile transformation? What features of a modern leadership role are needed to win in the age of digitization and agility? What does „Leadership Agility“ mean and why is this a critical success factor for the transformation? What do typical hurdles of an Agile transformation look like? How can we measure the success of the transformation?

1. Are You Agile Enough
To Succeed With Your
Digital Transformation?
Wolfgang Hilpert
VP Engineering, HERE Technologies

2. Intro
• 25 years of Software Product & Engineering leadership experience
• Former co-founder of startup,
held various leadership positions at market leading ISVs (IBM, MSFT, SAP)
& mid-size software vendors
• 10 years of Agile leadership experience
• Initiated or led three organizational Agile transformations
• VP Engineering @ HERE Technologies; Agile & DevOps
www.linkedin.com/in/whilpert/
www.xing.com/profile/Wolfgang_Hilpert/
Speaker profile
© 2018 HERE

3. HERE WoW – Our Way of Working
Agenda
01
Crisis – What Crisis?
05
Hurdles to
overcome for the
agile transformation
02
Age of Agile
03
Agile Leadership –
shaping the
Way of Working
04
Business Agility
06
Agile metrics –
How to measure
progress?
© 2018 HERE

4. Crisis? What crisis?
Driverless
cars
Flying drones
3D printers
Big data
Artificial
Intelligence
Robots
© 2018 HERE

5. Critical success factors of digital transformation
© 2018 HERE
Global Digital Transformation
Survey Report 2018
http://www.fujitsu.com/global/vision
/insights/survey2/

6. Agility as key enable of Digital Transformation
“Large companies have found that Agile and DevOps can help them trim the fat
when it comes to real-time responsiveness in today’s marketplace.
That means breaking down silos and focusing on both feedback
and collaboration to move more quickly through development and design.”
© 2018 HERE
Agility Is The Key To Accelerating Digital Transformation

7. Agility as key enable of Digital Transformation
„Agile companies don’t
throw spaghetti at the wall
to see what sticks;
they think of smarter ways to
make spaghetti.”
© 2018 HERE

8. HERE WoW – Our Way of Working
Agenda
01
Crisis – What Crisis?
05
Hurdles to
overcome for the
agile transformation
02
Age of Agile
03
Agile Leadership –
shaping the
Way of Working
04
Business Agility
06
Agile metrics –
How to measure
progress?
© 2018 HERE

9. Digital, Agility, Organization
Digital, Organizational and Agile Transformations are intertwined
© 2018 HERE
How do they fit together?
Most development teams have been trained in agile.
Most executives have not.
Without understanding what "being agile" means
-- and embracing how the philosophy can be applied --
it’s difficult to know how to affect the necessary changes.

10. Most value comes from the mindset/culture, not practices
Doing Agile
(Practices)
Being Agile
(Mindset/Culture)
Revolutionary improvements (3x-5x benefit)
• Customer delight
• Higher employee job satisfaction
• Greater innovation, creativity
• Increased employee engagement
• Continuous learning
Evolutionary improvements (10%-30% benefit)
• Improved visibility
• Increased productivity
• Improved Quality
• Reduced risk
≠
© 2018 HERE

11. 14
Agile – Why do we care?
• Delight our customers
• Increased innovation
• Deliver products with transparency and predictability
• Build the culture for an agile and learning organization
• Measure and reward what matters
• Create an environment that inspires employees to be
more engaged

12. Agile Teams in Software Development
They had solved a fundamental
mangement problem:
How to combine continuous
innovation with disciplined execution.
© 2018 HERE

13. Agile & DevOps
Enablers of continuous innovation & disciplined execution
Break down silos • … between traditionally separate functions
• Encourage sharing and collaboration
CA(L)MS • Culture, Automation, Lean (as in Lean management),
Measurement is crucial, and Sharing
DevOps approach • improve something (often by automating it)
• measure the results, and share those results
DevOps, Agile, & other techniques • Tooling and culture are interrelated
• elements in DevOps aren’t easily separable from each
other
Accidents are normal • more profitable to focus on speeding recovery
than on preventing accidents
Change should be gradual • change is best when it is small and frequent
© 2018 HERE

14. Fast Feedback Cycles!
1. Get your software or product out to enough
people who can show you where you‘ve got it
wrong. Reduce costs of a bug/risk.
2. Observe. Learn. Make improvements.
Ship it again.
3. Keep iterating until you have the confidence
that you‘ve got it right and are ready to do it
for real.
Fail fast, learn fast!
Or: ship all the time
Eric Ries, Author, Lean Start-up
“The only way to win is to learn
faster than everyone else.”
© 2018 HERE

15. You want us to learn
about management
from software
developers?
© 2018 HERE

16. 19
The Drucker Forum 2014
The world’s leading management experts scoffed
•“Agile is only for software”
•“Agile doesn’t scale”
•“Agile can’t handle complexity”
•“Agile isn’t reliable”
•“Agile doesn’t last”

17. What is an Agile Mindset?
Provide our customers with a constant
stream of incremental & iterative value
deliveries, maximizing customer value
The Agile mindset reflects three central ideas
• The Law of the Customer
• The Law of the Small Team
• The Law of the Network
These ideas are
observed in all kinds
of organizations.
© 2018 HERE

18. Agile Leaders loosen the grip to extend their reach!
Managers still exist, but their role
changes
• From controlling to enabling
• Helping resolve priorities
• Removing impediments
• Ensuring teams resolve
dependencies on other teams
Steve Jobs:
„It doesn‘t make sense to hire smart
people and tell them what to do;
we hire smart people so they can
tell us what to do.“
© 2018 HERE

19. HERE WoW – Our Way of Working
Agenda
01
Crisis – What Crisis?
05
Hurdles to
overcome for the
agile transformation
02
Age of Agile
03
Agile Leadership –
shaping the
Way of Working
04
Business Agility
06
Agile metrics –
How to measure
progress?
© 2018 HERE

20. Culture shift is no accident
Mind
Shift
Skill
Shift
Behavior
Shift
Culture
Shift
© 2018 HERE

21. Agile Leadership Behavior at the Team Level
Agile Leaders DO Agile Leaders DON’T
Estimates Expect teams to own estimates Tell teams what estimates should be
Task allocation Expect teams to define & allocate
tasks
Assign tasks to team members
Problem solving Guide teams to solve problems Solve all problems for teams
Dealing with Impediments Solve problems teams can’t Leave teams stuck
Processes defined Enforce defined processes Ignore deviations from defined
processes
Interruptions Protect their teams Ignore external interruptions to
team focus
Progress monitoring Monitor progress Assume progress is OK
Dealing with bad news Warn dependents quickly about
trouble
Hide bad news
Meetings & time-boxes Facilitate meetings and keep them
time-boxed and focused
Ignore time boxes and let meetings
drag on
© 2018 HERE

22. HERE Way of Working Foundation
HERE WoW is a
Mindset
• Desire continuous learning
• Confront uncertainties
• Embracing challenges
• Not afraid to fail
• Feedback is about current capabilities
© 2018 HERE

23. HERE Way of Working Foundation
HERE WoW is a
Mindset
Described by
Values
Defined by
Principles
Manifested through
Practices
ScrumKanban HERE
© 2018 HERE

24. „Why we do not need a Scrum Master ?”
We never miss a “deadline”, actually, there is no “deadline”, we do not even like the word
“dead”… really? Dead? We do not need nor want “dead”!
Our product increments are just always as we plan them and releases are always linear.
There is nobody lazy, nobody toxic, nobody not engaged with the team and watching his mobile
phone or checking his email instead.
Our Product owner is the best, ever: he is the best user of our product that a team can possibly
desire. He always knows how to innovate and what we need to increment our product with to get
lots of end-user and business value by baby stepping during each sprint.
He always writes perfect user stories. Each user story is always independent, valuable, estimable,
small and testable.
We do not need retrospective nor we need a facilitator to help us through it. Our process is the
best possible and nevertheless we have a continuous feedback loop that make it possible to
readjust for dynamic optimal improvements.
….
https://medium.com/why-we-do-not-need-a-scrum-master/a-letter-from-the-dev-team-to-management-e5b4a2ac66c
Really?
© 2018 HERE

25. HERE Way of Working Foundation
Practice: Agile Roles & Team Setup
Separation of Concern
Product Owner
Focus:
What to build
Doing the right
thing
Squad
Focus:
How to build it
Doing the thing
right
Agile Team Coach /
Scrum Master
Focus:
High-performing teams
Learn quickly
Agile Roles & Team SetupFoundation
© 2018 HERE

26. HERE Way of Working Foundation
Practice: DoR & DoD - Proper application of agile methods enable “Quality Built-in”
BacklogBacklog
Work Item
Backlog
Backlog
Work Item
Is it ready? Is it done?
Definition of Ready (DoR) & Definition of Done (DoD)Foundation
© 2018 HERE

27. Release Burndown
• If DoD (DoR) is NOT applied properly, typically
hidden, undone work piles up
• If DoD is applied properly, the burn-down
chart represents the real picture of work done
Time
Remaining
work
Remaining
scope
Undone
work
© 2018 HERE

28. HERE Way of Working Foundation
• DoR & DoD simple but take effort &
discipline
• Let‘s iterate and learn!
• „Pull principle“ drives quality
upstream
• Balance alignment with autonomy
Quality built-in doesn‘t happen by chance!
Built-in quality

© 2018 HERE

29. Alignment enables Autonomy
Enterprise alignment on practices enables team autonomy
© 2018 HERE

30. Capabilities are foundation for continuous learning
Continuous delivery capabilities
Product & process capabilities
Lean management capabilities
Cultural capabilities
Maturity levels:
1. “Arrive” at mature state & declare “done“
2. Linear and same formula across all teams
3. Measure without tying to outcome
4. Static
Capabilities:
1. Continually improve and progress
2. Multidimensional, dynamic & contextual
3. Outcome based
4. Dynamically changing to remain competitive
© 2018 HERE

31. 53
Is Agile more about quality or
speed – or can it be about both?
Agile isn’t a speed play -
it’s a quality play
that might be able to go fast
(under the right circumstances).
https://www.linkedin.com/pu
lse/do-we-still-need-quality-
management-agile-delivery-
world-shanks/

32. 54
Transparency • How reliable is visibility into true quality status of all projects, defined
metrics/KPIs etc.?
Predictability
• Regular release cadence
• Good grip on average velocity of engineering team
• Minimized standard deviation of velocity
Optimizing
Throughput
• Based on stable, regular velocity,
continuous imporovement measures
and growing team self-awareness
• Enable sustainable growth
Quality • Quality by design – quality as result of proper engineering
process, tools, skills, culture and priorities
Speed of
Innovation
• New products, faster time
to market, better
processes create room for
creativity & innovation

33. HERE WoW – Our Way of Working
Agenda
01
Crisis – What Crisis?
05
Hurdles to
overcome for the
agile transformation
02
Age of Agile
03
Agile Leadership –
shaping the
Way of Working
04
Business Agility
06
Agile metrics –
How to measure
progress?
© 2018 HERE

34. 57
Agile Enterprise defined
„An agile enterprise is
• an organization of engaged people
• that is relentlessly focused on customer value;
that continually improves the way it operates; and
• that uses empiricism to swiftly embrace change in a
sustainable manner.“

35. Waves of Agile
Business
Agility
Agile @
Scale
Agile
teams
© 2018 HERE

36. 59
Enterprise Agility = Agile Teams + Agile at Scale + Business Agility
Agile at Scale
Business Agility
Agile
Teams
Agile
Teams
Agile at Scale
Business Agility
Agile
Teams
Agile
Teams
Agile
Teams
Agile
Teams
Agile
Teams
Agile
Teams
Agile
Teams
Agile
Teams
Agile
Teams
Agile
Teams
Agile Mindset + Values + Principles + Practices
Leadership

37. HERE WoW – Our Way of Working
Agenda
01
Crisis – What Crisis?
05
Hurdles to
overcome for the
agile transformation
02
Age of Agile
03
Agile Leadership –
shaping the
Way of Working
04
Business Agility
06
Agile metrics –
How to measure
progress?
© 2018 HERE

38. 63
Agile Transformation – hurdles to overcome
Culture
mismatch
Culture
mismatch
Resistance
to change
Resistance
to change Inadequate
management
support
Inadequate
management
support
Lack of
skills &
adequate
training
Lack of
skills &
adequate
training
Unrealistic
expectations
Unrealistic
expectations
Too much
too fast
Too much
too fast
Lack of
executive
leadership
engagement
Lack of
executive
leadership
engagement
„Doing“
Agile versus
„Being“
Agile
„Doing“
Agile versus
„Being“
Agile
Not using
qualified
Agile
Coaches
Not using
qualified
Agile
Coaches
Lack of
Product
Owner
availability
Lack of
Product
Owner
availability
Inadequate
Compensation
& Rewards
Inadequate
Compensation
& Rewards
Neglecting the
need for
technical
excellence
Neglecting the
need for
technical
excellence

39. HERE WoW – Our Way of Working
Agenda
01
Crisis – What Crisis?
05
Hurdles to
overcome for the
agile transformation
02
Age of Agile
03
Agile Leadership –
shaping the
Way of Working
04
Business Agility
06
Agile metrics –
How to measure
progress?
© 2018 HERE

40. Holistic, Competing Metrics
Viewed as trends over time help provide meaningful view of continuous improvement
and drive a more agile way of working
Building the
things right?
Building the
right thing?
Building at the
right speed?
Metrics
 Net Promoter Score (NPS)
 % Sales from New Offerings
Metrics
 Rework costs
 Mean time to recover
 Escaped defects
 Change Failure Rate
Metrics
 Lead Time
 Flow Efficiency
 Delivery Frequency
© 2018 HERE

41. Focus on the Balance of Culture & Practices
Manifested through
Practices
Defined by
Principles
Described by
Values
HERE WoW is a
Mindset
yin and yan
describes how seemingly
opposite or contrary forces may
actually be complementary,
interconnected, … and how they
may give rise to each other as
they interrelate to one another
© 2018 HERE