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Scrum Deutschland 2018 - Wolfgang Hilpert - Are you agile enough to succeed with your Digital Transformation?

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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?

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Scrum Deutschland 2018 - Wolfgang Hilpert - Are you agile enough to succeed with your Digital Transformation?

  1. 1. Are You Agile Enough To Succeed With Your Digital Transformation? Wolfgang Hilpert VP Engineering, HERE Technologies
  2. 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. 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. 4. Crisis? What crisis? Driverless cars Flying drones 3D printers Big data Artificial Intelligence Robots © 2018 HERE
  5. 5. Critical success factors of digital transformation © 2018 HERE Global Digital Transformation Survey Report 2018 http://www.fujitsu.com/global/vision /insights/survey2/
  6. 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. 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. 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. 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. 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. 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. 12. Agile Teams in Software Development They had solved a fundamental mangement problem: How to combine continuous innovation with disciplined execution. © 2018 HERE
  13. 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. 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. 15. You want us to learn about management from software developers? © 2018 HERE
  16. 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. 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. 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. 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. 20. Culture shift is no accident Mind Shift Skill Shift Behavior Shift Culture Shift © 2018 HERE
  21. 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. 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. 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. 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. 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. 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. 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. 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. 29. Alignment enables Autonomy Enterprise alignment on practices enables team autonomy © 2018 HERE
  30. 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. 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. 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. 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. 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. 35. Waves of Agile Business Agility Agile @ Scale Agile teams © 2018 HERE
  36. 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. 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. 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. 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. 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. 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

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