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Why Agile Fails in Large Enterprises—and What to Do about It

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TechWell

Agile works. We get it. You don’t have to sell people on the underlying principles anymore. Even so, many large-scale agile transformations are struggling. Some have failed. Others can’t figure out why things aren't working after multiple attempts. It’s easy to blame the people, the process, and the culture. And it’s especially easy to blame management. However, the underlying problem is that most large organizations weren’t built to be agile. You need a way to safely and pragmatically refactor your company into an organization that can adopt agile and sustain the transformation. Mike Cottmeyer introduces a framework for understanding the type of company in which you work, its delivery constraints, and likely challenges you’ll face in your agile transformation. Mike shares a strategy for establishing an end-state vision and operational model to guide your transformation. Finally, he defines an approach for incrementally introducing change, measuring outcomes, and sustaining those changes.

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AW5 Agile Development Concurrent Session 11/12/2014 1:30 PM "Why Agile Fails in Large Enterprises—and What to Do about It" Presented by: Mike Cottmeyer LeadingAgile, LLC Brought to you by: 340 Corporate Way, Suite 300, Orange Park, FL 32073 888-268-8770 ∙ 904-278-0524 ∙ sqeinfo@sqe.com ∙ www.sqe.com
LeadingAgile cofounder and president Mike Cottmeyer is passionate about solving the challenges associated with agile in larger, more complex enterprises. To that end, his company is dedicated to providing large-scale agile transformation services to help pragmatically, incrementally, and safely introduce agile methods. Mike spends most of his time leading and growing LeadingAgile, and providing strategic coaching for clients. He was on the steering committee that created the PMI-ACP certification and co-led the creation of the DSDM Agile Project Leader certification. A fellow of the Lean Systems Society, Mike served on the boards of the APLN and the Lean Software and Systems Consortium.
11/4/2014 1 WHY AGILE IS FAILING IN LARGE ENTERPRISES WHY AGILE IS FAILING IN LARGE ENTERPRISES …and what you can do about it
11/4/2014 2 mike@leadingagile.com 404-312-1471 MIKE COTTMEYER www.leadingagile.com twitter.com/mcottmeyer facebook.com/leadingagile linkedin.com/in/cottmeyer A BRIEF HISTORICAL PERSPECTIVE
11/4/2014 3 Hirotaka Takeuchi  & Ikujiro Nonaka The New New  Product  Development Game DSDN Consortium Dynamic System Development  Method Jeff de Luca Feature Driven Robert Charette Lean Development Taiichi Ohno Toyota Production System Kanban 1943 1950- 1960s 1985 1990 1995 1996 1997 1998 2000 2001 USAF & NASA Development Kanban Hardware Software USAF & NASA X‐15 hypersonic jet Iterative  Incremental Delivery 1990 - Sutherland & Schwaber Scrum Framework 1996 - Beck, Cunningham, Jeffries Extreme Programming Alistair Cockburn Crystal Methodologies THE AGILE MANIFEST O We are uncovering better ways of developing software by doing it and helping others do it. Through this work we have come to value: MANIFESTO VALUES Individuals & interactions Processes & toolsover Working software Comprehensive documentation over Customer collaboration Contract negotiationover Responding to change Following a planover That is, while there is value in the items on the right, we value the items on the left more. Source: www.agilemanifesto.org
11/4/2014 4 Satisfy the Welcome Deliver Collaborate MANIFESTO PRINCIPLES Satisfy the Customer Welcome Change Deliver Frequently Collaborate Daily Support & Trust Motivated Teams Promote Face-to-Face Conversations Deliver Working Software Promote Sustainable Pace Promote Technical Excellence Maximize Through Simplicity Have Self-Organized Teams Reflect & Adjust Regularly Source: www.agilemanifesto.org BELIEFS ABOUT AGILE & TRANSFORMATION
11/4/2014 5 Culture BELIEFS… PracticesStructure • Focused on changing hearts and minds CULTURE DRIVEN Culture PracticesStructure hearts and minds • Focused on being agile rather than doing agile • Focused on values and principles PracticesStructure
11/4/2014 6 • Focused on changing hearts and minds CULTURE DRIVEN Culture PracticesStructure hearts and minds • Focused on being agile rather than doing agile • Focused on values and principles • Belief that delivery systems will emergePracticesStructure systems will emerge based on new thinking • Focused on the things that you do PRACTICES DRIVEN Practices StructureCulture that you do • Focused on roles, ceremonies, and artifacts • Can be management driven or technically driven StructureCulture
11/4/2014 7 • Focused on the things that you do PRACTICES DRIVEN Practices StructureCulture that you do • Focused on roles, ceremonies, and artifacts • Can be management driven or technically driven B li f th t il iStructureCulture • Belief that agile is a process or way to work • Focused on forming teams and governing the STRUCTURE DRIVEN Structure CulturePractices teams and governing the flow of value • Focused on aligning the organization first CulturePractices
11/4/2014 8 • Focused on forming teams and governing the STRUCTURE DRIVEN Structure CulturePractices teams and governing the flow of value • Focused on aligning the organization first • Belief that culture and practices only emerge within a rational structuralCulturePractices within a rational structural and planning framework Culture ... all three are essential, but where you start WHERE TO START? PracticesStructure is also essential…
11/4/2014 9 LEADINGAGILE THEORY OF TRANSFORMATION Theory of Transformation Agile transformation beginsAgile transformation begins by defining a rational system of delivery for the enterprise
11/4/2014 10 Theory of Transformation Tr e agilit comes bTrue agility comes by breaking dependencies between teams across the organization Theory of Transformation Health c lt re and solidHealthy culture and solid practices emerge within a rational delivery framework
11/4/2014 11 WHY AGILE WORKS Team
11/4/2014 12 User Story User Story Team User Story User Story User Story User Story User Story Screen User Story User Story Team Database Report User Story User Story User Story User Story User Story
11/4/2014 13 Screen User Story User Story Team Database Report User Story User Story User Story User Story User Story Clarity Screen User Story User Story Team Database Report User Story User Story User Story User Story User Story Clarity Accountability
11/4/2014 14 Screen User Story User Story Team Database Report User Story User Story User Story User Story User Story M blClarity Accountability Measureable Progress Screen User Story User Story Team Database Report User Story User Story User Story User Story User Story M blClarity Accountability Measureable Progress Few if any dependencies
11/4/2014 15 WHY AGILE WORKS AT SCALE Screen User Story User Story Team Database Report User Story User Story User Story User Story User Story M blClarity Accountability Measureable Progress
11/4/2014 16 Screen User Story User Story Team Database Report User Story User Story User Story User Story User Story M blGovernance Accountability Measureable Progress Screen User Story User Story Team Database Report User Story User Story User Story User Story User Story M bl Structure Measureable Progress Governance
11/4/2014 17 Screen User Story User Story Team Database Report User Story User Story User Story User Story User Story M t i & Structure Metrics & Tools Governance Screen User Story User Story Team Database Report User Story User Story User Story User Story User Story M t i & Structure Metrics & Tools Governance Teams have autonomy across the organization
11/4/2014 18 WHY AGILE FAILS Screen User Story User Story Team Database Report User Story User Story User Story User Story User Story
11/4/2014 19 Screen User Story User Story Team Database Report User Story User Story User Story User Story User Story Lack of Clarity Screen User Story User Story Team Database Report User Story User Story User Story User Story User Story Lack of Clarity Lack of Accountability
11/4/2014 20 Screen User Story User Story Team Database Report User Story User Story User Story User Story User Story L k fLack of Clarity Lack of Accountability Lack of Measureable Progress Screen User Story User Story Team Database Report User Story User Story User Story User Story User Story L k fLack of Clarity Lack of Accountability Lack of Measureable Progress Often caused by too many external dependencies
11/4/2014 21 WHY AGILE FAILS AT SCALE Screen User Story User Story Team Database Report User Story User Story User Story User Story User Story L k fLack of Clarity Lack of Accountability Lack of Measureable Progress
11/4/2014 22 Screen User Story User Story Team Database Report User Story User Story User Story User Story User Story L k fLack of Governance Lack of Measureable Progress Lack of Accountability Screen User Story User Story Team Database Report User Story User Story User Story User Story User Story L k f Lack of Structure Lack of Measureable Progress Lack of Governance
11/4/2014 23 Screen User Story User Story Team Database Report User Story User Story User Story User Story User Story L k fLack of Metrics & Tools Lack of Governance Lack of Structure Screen User Story User Story Team Database Report User Story User Story User Story User Story User Story L k fLack of Metrics & Tools Lack of Governance Lack of Structure Too much coordination between teams
11/4/2014 24 ORGANIZATIONAL BARRIERS TO AGILE Team
11/4/2014 25 Matrixed Organizations Team Matrixed Organizations Non-instantly Available Resources Team
11/4/2014 26 Matrixed Organizations Non-instantly Available Resources Limited Access to Subject Matter Expertise Team Matrixed Organizations Non-instantly Available Resources Limited Access to Subject Matter Expertise Team Shared Requirements Between Teams
11/4/2014 27 Matrixed Organizations Non-instantly Available Resources Too Much Work In Process Limited Access to Subject Matter Expertise Team Shared Requirements Between Teams Matrixed Organizations Non-instantly Available Resources Too Much Work In Process Limited Access to Subject Matter Expertise Large Products with Diverse Technology Team Shared Requirements Between Teams
11/4/2014 28 Matrixed Organizations Non-instantly Available Resources Too Much Work In Process Limited Access to Subject Matter Expertise Large Products with Diverse Technology Team Shared Requirements Between Teams Technical Debt & Defects Matrixed Organizations Non-instantly Available Resources Too Much Work In Process Limited Access to Subject Matter Expertise Large Products with Diverse Technology Team Low Cohesion & Tight Coupling Shared Requirements Between Teams Technical Debt & Defects
11/4/2014 29 Corollary One: Sol ing for the iss es that getSolving for the issues that get in the way of effectively practicing agile is what should guide your agile transformation initiative MAPPING YOUR AGILE TRANSFORMATION
11/4/2014 30 Predictability Adaptability Emergence Predictability Adaptability Convergence
11/4/2014 31 Emergence Predictability Adaptability Convergence Emergence Predictability Adaptability AE PC Convergence
11/4/2014 32 Emergence Predictability Adaptability AEPE PC AC Convergence Emergence Ad-Hoc Predictability Adaptability AEPE PC AC Convergence
11/4/2014 33 Emergence Ad-Hoc Predictability Adaptability AEPE PC AC Convergence Traditional Emergence Ad-Hoc Predictability Adaptability AEPE PC AC Convergence Traditional Agile
11/4/2014 34 Emergence Ad-Hoc Lean Startup Predictability Adaptability AEPE PC AC Convergence Traditional Agile Emergence Ad-Hoc Lean Startup Project Predictability Adaptability AEPE PC AC Convergence Traditional Agile
11/4/2014 35 Emergence Ad-Hoc Lean Startup Project Pilot Predictability Adaptability AEPE PC AC Convergence Traditional Agile Emergence Ad-Hoc Lean Startup Project Pilot Predictability Adaptability AEPE PC AC Convergence Traditional Agile
11/4/2014 36 Emergence Ad-Hoc Lean Startup Adopt Pilot Predictability Adaptability AEPE PC AC Convergence Traditional Agile Emergence Ad-Hoc Lean Startup LOB Predictability Adaptability AEPE PC AC Convergence Traditional Agile
11/4/2014 37 Emergence Ad-Hoc Lean Startup LOB Low Trust Predictability Adaptability AEPE PC AC Convergence Traditional Agile Emergence Ad-Hoc Lean Startup LOB Low Trust Predictability Adaptability AEPE PC AC Convergence Traditional Agile LOB Become Predictable
11/4/2014 38 Emergence Ad-Hoc Lean Startup LOB Low Trust Predictability Adaptability AEPE PC AC Convergence Traditional Agile LOB Become Predictable Emergence Ad-Hoc Lean Startup LOB Low Trust Predictability Adaptability AEPE PC AC Convergence Lean/Agile Agile LOB Become Predictable
11/4/2014 39 Emergence Ad-Hoc Lean Startup LOB Low Trust Predictability Adaptability AEPE PC AC Convergence Lean/Agile Agile LOB Become Predictable LOB Reduce Batch Size Emergence Ad-Hoc Lean Startup LOB LOB Low Trust Fully Decouple Predictability Adaptability AEPE PC AC Convergence Lean/Agile Agile LOB LOB Become Predictable Reduce Batch Size
11/4/2014 40 Corollary Two: Agile can mean differentAgile can mean different things to different companies and not all agile approaches will work well for every organization INCREMENTAL AND ITERATIVE IMPROVEMENT
11/4/2014 41 Emergence Ad-Hoc Lean Startup Org Slice Low Trust Fully Decouple Predictability Adaptability AEPE PC AC Slice Convergence Lean/Agile Agile Become Predictable Reduce Batch Size Emergence Ad-Hoc Lean Startup Org Slice Low Trust Fully Decouple Predictability Adaptability AEPE PC AC Slice Convergence Lean/Agile Agile Become Predictable Reduce Batch Size Phase One
11/4/2014 42 Emergence Ad-Hoc Lean Startup Org Slice Low Trust Fully Decouple Predictability Adaptability AEPE PC AC Slice Convergence Lean/Agile Agile Become Predictable Reduce Batch Size Phase One Phase Two Emergence Ad-Hoc Lean Startup Org Slice Low Trust Fully Decouple Predictability Adaptability AEPE PC AC Slice Phase Three Convergence Lean/Agile Agile Become Predictable Reduce Batch Size Phase One Phase Two
11/4/2014 43 Emergence Ad-Hoc Lean Startup Org Slice Low Trust Fully Decouple Predictability Adaptability AEPE PC AC Slice Phase Three Phase Four Convergence Lean/Agile Agile Become Predictable Reduce Batch Size Phase One Phase Two Emergence Ad-Hoc Lean Startup Org Slice Low Trust Fully Decouple Phase Five Predictability Adaptability AEPE PC AC Slice Phase Three Phase Four Convergence Lean/Agile Agile Become Predictable Reduce Batch Size Phase One Phase Two
11/4/2014 44 Corollary Three: Organi ational change can beOrganizational change can be mapped out in such a way that outcomes are measureable and predictable and economically justified DEVELOPING YOUR ROADMAP
11/4/2014 45 Screen User Story User Story Team Database Report User Story User Story User Story User Story User Story M t i &Structure Governance Metrics & Tools Screen User Story User Story Team Database Report User Story User Story User Story User Story User Story M t i &Structure Governance Metrics & Tools
11/4/2014 46 Screen User Story User Story Team Database Report User Story User Story User Story User Story User Story M t i & Governance Metrics & Tools Structure Screen User Story User Story Team Database Report User Story User Story User Story User Story User Story M t i & Governance Metrics & Tools Structure
11/4/2014 47 STRUCTURE Services Teams – These teams support common services across product lines. These teams support the needs of the product teams. Team
11/4/2014 48 Product Teams – These teams integrate services and write customer facing features. This is the proto- typical Scrum team. Team Services Teams – These teams support common services across product lines. These teams support the needs of the product teams. Team Programs Teams – These teams define requirements, set technical direction, and provide context and coordination. Product Teams – These teams integrate services and write customer facing features. This is the proto- typical Scrum team. Team Team Services Teams – These teams support common services across product lines. These teams support the needs of the product teams. Team
11/4/2014 49 Portfolio Teams – These teams govern the portfolio and make sure that work is moving through the system. Programs Teams – These teams Team define requirements, set technical direction, and provide context and coordination. Product Teams – These teams integrate services and write customer facing features. This is the proto- typical Scrum team. Team Team Services Teams – These teams support common services across product lines. These teams support the needs of the product teams. Team TeamTeamTeam Product & Services Teams Team Team Team Team
11/4/2014 50 Program Team Team Team TeamTeamTeam Product & Services Teams Program Teams Team Team Team Team Team Program Portfolio Teams Team Team Team TeamTeamTeam Product & Services Teams Program Teams Team Team Team Team
11/4/2014 51 GOVERNANCE Team Program Portfolio Teams Team Team Team TeamTeamTeam Product & Services Teams Program Teams Team Team Team Team
11/4/2014 52 Team Program Portfolio Teams Product & Services Teams Scrum Team Team Team TeamTeamTeam Program Teams Team Team Team Team Program Portfolio Teams Kanban Team Product & Services Teams Program Teams Scrum Kanban Team Team Team TeamTeamTeam Team Team Team Team
11/4/2014 53 Program Portfolio Teams Kanban Kanban Team Product & Services Teams Program Teams Scrum Kanban Team Team Team TeamTeamTeam Team Team Team Team METRICS
11/4/2014 54 Program Portfolio Teams Kanban Kanban Team Product & Services Teams Program Teams Scrum Kanban Team Team Team TeamTeamTeam Team Team Team Team Program Portfolio Teams Kanban Kanban Team Product & Services Teams Program Teams Scrum Kanban Team Team Team • Backlog Size • Velocity • Burndown • Escaped Defectsp • Commit % Ratio • Acceptance % Ratio • Scope Change
11/4/2014 55 Program Portfolio Teams Kanban Kanban Team • Cycle Time Product & Services Teams Program Teams Scrum Kanbany • Features Blocked • Rework/Defects • Backlog Size • Velocity • Burndown • Escaped Defectsp • Commit % Rate • Acceptance % Ratio • Scope Change Program Portfolio Teams Kanban Kanban • Cycle Time • Takt Time/Cycle Time • Time/Cost/Scope/Value • RIO/Capitalization Product & Services Teams Program Teams Scrum Kanban • Backlog Size • Velocity • Burndown • Escaped Defects y • Features Blocked • Rework/Defects p • Commit % Ratio • Acceptance % Ratio • Scope Change
11/4/2014 56 Corollary Four: Organi ational constr ctsOrganizational constructs, governance models, metrics and controls can be established without violating the principles of agile INCREMENTAL TRANSFORMATION
11/4/2014 57 Program Portfolio Teams Kanban Kanban Team Agile Pilot Product & Services Teams Program Teams Scrum Kanban Team Team Team TeamTeamTeam Team Team Team Team Increment One Program Portfolio Teams Kanban Kanban Team Agile Pilot Agile Rollout Product & Services Teams Program Teams Scrum Kanban Team Team Team TeamTeamTeam Team Team Team Team Increment One Increment Two
11/4/2014 58 Program Portfolio Teams Kanban Kanban Team Agile Pilot Agile Rollout Product & Services Teams Program Teams Scrum Kanban Team Team Team TeamTeamTeam Team Team Team Team Increment One Three - N ITERATIVE TRANSFORMATION
11/4/2014 59 Program Portfolio Teams Kanban Kanban Team Agile Pilot Product & Services Teams Program Teams Scrum Kanban Team Team Team TeamTeamTeam Team Team Team Team Iteration One Program Portfolio Teams Kanban Kanban Team Agile Pilot Product & Services Teams Program Teams Scrum Kanban Team Team Team TeamTeamTeam Team Team Team Team Iteration Two
11/4/2014 60 Program Portfolio Teams Kanban Kanban Team Agile Pilot Product & Services Teams Program Teams Scrum Kanban Team Team Team TeamTeamTeam Team Team Team Team Iteration Three Program Portfolio Teams Kanban Kanban Agile Pilot Team Product & Services Teams Program Teams Scrum Kanban Team Team Team TeamTeamTeam Iteration Four Team Team Team Team
11/4/2014 61 Program Portfolio Teams Kanban Kanban Agile Pilot Team Product & Services Teams Program Teams Scrum Kanban Team Team TeamTeamTeam Team Iteration Five Team Team TeamTeam ITERATIVE & INCREMETNAL CHANGE
11/4/2014 62 Program Portfolio Teams Kanban Kanban Agile Pilot Team Product & Services Teams Program Teams Scrum Kanban Team Team TeamTeamTeam Team Iteration One Team Team TeamTeam Program Portfolio Teams Kanban Kanban Agile Pilot Team Product & Services Teams Program Teams Scrum Kanban Team Team TeamTeamTeam Team Team Team TeamTeam Iteration Two
11/4/2014 63 Program Portfolio Teams Kanban Kanban Agile Pilot Agile Rollout Team Product & Services Teams Program Teams Scrum Kanban Team Team TeamTeamTeam Team Iteration Three Iteration One Team Team TeamTeam Program Portfolio Teams Kanban Kanban Agile Pilot Agile Rollout Team Product & Services Teams Program Teams Scrum Kanban Team Team TeamTeamTeam Team Iteration Four Iteration Two Team Team TeamTeam
11/4/2014 64 Program Portfolio Teams Kanban Kanban Agile Pilot Agile Rollout Team Product & Services Teams Program Teams Scrum Kanban Team Team TeamTeamTeam Team Iteration Five Iteration Three Team Team TeamTeam Corollary Five: Organi ations can adopt agileOrganizations can adopt agile safely and pragmatically by iteratively and incrementally introducing structure, governance, and metrics and maturing practices and culture over time
11/4/2014 65 SUMMARY Theory of Transformation Agile transformation beginsAgile transformation begins by defining a rational system of delivery for the enterprise
11/4/2014 66 Theory of Transformation Tr e agilit comes bTrue agility comes by breaking dependencies between teams across the organization Theory of Transformation Health c lt re and solidHealthy culture and solid practices emerge within a rational delivery framework
11/4/2014 67 Corollary One: Sol ing for the iss es that getSolving for the issues that get in the way of effectively practicing agile is what should guide your agile transformation initiative Corollary Two: Agile can mean differentAgile can mean different things to different companies and not all agile approaches will work well for every organization
11/4/2014 68 Corollary Three: Organi ational change can beOrganizational change can be mapped out in such a way that outcomes are measureable and predictable and economically justified Corollary Four: Organi ational constr ctsOrganizational constructs, governance models, metrics and controls can be established without violating the principles of agile
11/4/2014 69 Corollary Five: Organi ations can adopt agileOrganizations can adopt agile safely and pragmatically by iteratively and incrementally introducing structure, governance, and metrics and maturing practices and culture over time Summary B foc sing on the f ndamentalsBy focusing on the fundamentals of agile delivery, while systematically and methodically breaking dependencies, we can achieve true enterprise agility
11/4/2014 70 WHY AGILE IS FAILING IN LARGE ENTERPRISES …and what you can do about it

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