Carmen DeArdo presentation at 2018 Souther Fried Agile conference on moving from a Project delivery model to a Product Model

1. © Tasktop 2018© Tasktop 2016
Project to Product
© Tasktop 2018Image Source: BMW Group
Carmen DeArdo, Tasktop Senior VSM Strategist

2. © Tasktop 2018
Carmen DeArdo
Carmen has experience both leading and consulting on Enterprise wide
DevOps Journeys over the last decade. His current focus is on utilizing
this experience and Value Stream Management principles to help
companies accelerate their flow of business value work.
@carmendeardo
Senior VSM Strategist @ Tasktop Technologies,
Former member of DevOps leadership team @ Nationwide

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A Little About Tasktop
Founded 2007
Committed to customer and partner-centric innovation
4 product lines & contributor to open source products
160

4. © Tasktop 2018
The Problem
We have implemented Agile!
We have implemented New Technologies!
We have certified Processes!
So why is the Business Still Unhappy?

5. © Tasktop 2018
Increase Flow across the entire Value Stream
Time
BUT must also
connect to the
Business
Agile is a
good place to
start
AND ”Code
To Cloud” is
necessary
Agile Design /
Develop / Test
Stories
from Backlog
through Iterations
Customer Concept (IDEA)
through Feature
Definition
Stories Done until
deployed into production

6. © Tasktop 2018
Barclays’ Value Stream
Image taken with permission from Jon Smart presentation at DOES London 2018 – credit Klaus Leopold

7. © Tasktop 2018
IT is disconnected from
the business and vision.
Leadership is tracking
activities not the results.
Project funding is
fundamentally broken.
Business feels IT is solving its own problems, not delivering
more
IT feels like a black box to
the business.
Common Problems
01 02 03
04 05

8. © Tasktop 2018
Technological Revolutions
Figure: Adapted from Carlota Perez

9. © Tasktop 2018
The Turning Point
Creative
Destruction
Wealth
Generation
Figure: Adapted from Carlota Perez

10. © Tasktop 2018
Technological Revolutions
Factory systems
Subcontracting
Taylorism
Fordism
Figure: Adapted from Carlota Perez
Project Management

11. © Tasktop 2018 Mawdud Choudhury “Brick & Mortar US Retailer Market Value” ExecTech
Stock Price Change 2006-2016
50% of S&P 500 projected
to be replaced in 10 years

13. © Tasktop 2018
Project vs Product Orientation
Budgeting Timeframes Success Teams
Prioritization RiskVisibility

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Waterfall orientation Flow orientation
Project to Product: Planning
Project Product

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Start
Delivery
All learning,
specification, and
strategic decision
making up-front
Project to Product: Budgets
Project Product

16. © Tasktop 2018
Project 1 Project 2
Project 3
Product 1
Product 2
Product 3
People are brought to work Work is brought to People
Project to Product: People
Project Product

17. © Tasktop 2018
Lean Principles
• Precisely specify value by product,
• Identify the value stream for each product
• Make value flow without interruptions
• Let the customer pull value from the producer
Lean Thinking by James P. Womack
Image Source: BMW Group

18. © Tasktop 2018
Integrated production lines
Managed as products
Architected around flow
Optimized end-to-end
Measurement of business results
Car production
Disconnected tool chains
Managed as projects
Architected as technology layers
Optimized in siloes
Measurement of proxy metrics
Enterprise IT

19. © Tasktop 2018
Business value flow at BMW Plant
Quality cars that deliver “sheer driving pleasure”
Designed in yearly cycles, delivered every 70s
Creative and manufacturing process are decoupled
Flow across a linear production line
Business value flow in IT
New features that deliver success and delight
Designed and delivered in daily cycles
Creative and manufacturing process are one
Flow across a value stream networkImage Source: BMW Group

20. © Tasktop 2018
What flows in software delivery?
Features
Defects
Risks
Debts
New business value, pulled by customer
Quality improvements, pulled by customer
Security, availability, compliance, pulled by risk officers
Technical debt improvements, pulled by architects
Flow Items are MECE*
*Mutually Exclusive and Comprehensively Exhaustive

21. © Tasktop 2018
Death Spiral
Debts
& Risks
Quality
Feature Work
Defect Work
Diagram: Adapted from Gene Kim

22. © Tasktop 2018
The Flow Framework™ was created by Mik Kersten, CEO of Tasktop. The Flow Framework diagram is protected by
copyright laws and may not be copied, modified or distributed without the express written permission of Tasktop.
FlowFramework

23. © Tasktop 2018
The Flow Framework™ was created by Mik Kersten, CEO of Tasktop. The Flow Framework diagram is protected by
copyright laws and may not be copied, modified or distributed without the express written permission of Tasktop.
FlowFramework

24. © Tasktop 2018
Flow Time

25. © Tasktop 2018
Flow Distribution

26. © Tasktop 2018
Flow Efficiency

27. © Tasktop 2018
Flow Metrics Dashboard

28. © Tasktop 2018
How can we do this?

29. © Tasktop 2018
From silos and proxy metrics
To a connected value stream network

30. © Tasktop 2018

31. © Tasktop 2018

32. © Tasktop 2018
Flow Framework at Tasktop
Example

33. © Tasktop 2018
tasktop.com

34. © Tasktop 2018
Top Priority: New Features
Result: Defects & Debt
Last year: Unhappiest team
This year: Happiest team
Less Happy

35. © Tasktop 2018
Advice
Business leaders
Ensure product portfolio and Value Stream Metrics are tracked
Empower delivery teams to allocate Flow Distribution to match strategy
Know when hitting north star requires global focus (e.g., Debt reduction)
Technologists
Create your value stream network by connecting your tool network
Define your value stream architecture & mapping to product model
Use the flow metrics to identify bottlenecks, dependencies & opportunities

36. © Tasktop 2018
FlowFramework
Project & Cost Centers
Siloes & proxy metrics
Fragmented value streams
Product Value Streams
Flow Metrics & Business Results
Integrated Value Stream Network
The Flow Framework™ was created by Mik Kersten, CEO of Tasktop. The Flow Framework diagram is protected by
copyright laws and may not be copied, modified or distributed without the express written permission of Tasktop.

37. © Tasktop 2018
Actions to Take Today
CONNECT
Get Your Tools Talking
01
MODEL YOUR PRODUCT
MODEL
Model Your Artifacts
Model Your Statuses
02

38. © Tasktop 2018
Available Nov 20th @mik_kersten
tasktop.com/blog
@carmendeardo
project2product.org
flowframework.org