Step Away from the Waterfall: You Really Can Use Agile on an ERP Project

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1 Step Away from the Waterfall: You Really Can Use Agile on an ERP Project October 2, 2012

2 This document is protected under the copyright laws of the United States and/or other countries as an unpublished work. This document contains informa,on that is proprietary and confiden,al to Genesis Consul,ng Partners, LLC and/or affiliates or its technical alliance partners, which shall not be duplicated, used, or disclosed in whole or in part for any purpose other than to evaluate Genesis Consul,ng Partners, LLC and/or its affiliate(s). Any use or disclosure in whole or in part of this informa,on without the express wrijen permission of Genesis Consul,ng Partners, LLC and/or its affiliate(s) is prohibited Genesis Consul,ng Partners, LLC and/or its affiliate(s) (Unpublished). All rights reserved. The LSAP and ISAP methodology is a component of Genesis Consul,ng Partners, LLC implementa,on content and contains processes, templates and techniques used to deliver Genesis Consul,ng Partners, LLC services. 2

3 Contents Introduc,on A Lean and Agile Approach to ERP Lean Agile ERP Delivery Models Introducing Kanban to Your Teams Lean Agile ERP Challenges and Success Factors Agile Themes, Epics and Stories Customer Case Study - Orange County, Florida 3

4 Introduc,ons 4

5 Jason Fair CEO, Genesis Consul,ng Welcome and Introduc,ons 20+ years of industry experience leading ERP implementa,ons Func,onal expert, Technical development, Integra,on Management and extensive Project Management PMP, CSM, Cer,fied SAP Consultant, CPA Thought leader for Lean Agile SAP

6 Genesis Consul,ng We specialize in delivering the following services: " SAP Technology: Strategy and Planning Project Management Systems Integra,on and SAP Consul,ng Industry Solu,ons Grantor Management, Public Budget Formula,on (PBF), Procurement for Public Sector (PPS) " Lean Agile Coaching " Enterprise Performance Management " Organiza,onal Change Management Cer$fied small business in the Commonwealth of Virginia and registered with the Small Business Administra$on 6

7 Genesis Consul,ng Clients Genesis clients span multiple industries.. Consumer Products, Retail, Life Sciences, Transportation, A&D, Federal, and State & Local 7

8 Genesis Consul,ng Partners Cricketwing Consulting We are a certified Services Partner with SAP as well as have strategic relationships with top Consulting, Software, and Agile partners. 8

9 Lean Agile SAP Network QVC Nike Intermec Jabil Medtronic McKesson JJ Keller Crayola Vision Service Provider (VSP) Johns Hopkins University CN Railway RIM SAP - Netherlands U.S. Department of Agriculture Northrop Grumman Raytheon U.S. Army U.S. Department of Interior Orange County Public Schools, FL 9

10 A Lean and Agile Approach to ERP 10

11 11

12 Defini,ons " Agile is a methodology, derived using Lean thinking. " Lean is a thinking principle. It tells you how to iden,fy opportuni,es for improvement. " Agile is Lean in IT. It is the proven project management methodology that encourages: Frequent inspec6on and adapta6on A leadership philosophy that encourages team work, self- organiza6on and accountability A set of engineering best prac,ces that allow for rapid delivery of high- quality projects A business approach that aligns development with customer needs and company goals 12

13 " Customer Value Added Work: Agile teams learn to make this work a priority " Business Value Added Work: Agile teams learn to: Develop lighter yet just as effec,ve ar,facts Use new techniques to shorten up these ac,vi,es Lean Out the Waste Replace some of the ar,facts with empirical evidence (demos and stand- ups versus status reports) Iden,fy and simplify the ceremonial ac,vi,es that we tradi,onally perform to stay viable/compliant/lawful " Non Value Added Work (Waste): Agile teams learn to nego,ate this work completely out of a project 13

14 What Is the Big Deal? What is the amount of value-added work in most processes? Only 5-30% James Womack What is the amount of value-added time in most processes? Only 0.5% 5% George Stalk 79% of CEO s polled, feel cost and cycle time reduction are a major need Only 31% feel they do a good job The Nations CEOs Look to the Future Foundation for the Malcolm Baldrige National Quality Award Study The problems that exist in the world today cannot be solved by the level of thinking that created them. Albert Einstein 14

15 Founda,ons of Agile Empiricism Ability to perform, stop, reflect, improve, con,nue in a step by step process in efforts to increase produc,vity Priori6za6on Deliver work based on value Self- Organiza6on The team knows best how to deliver the work based on the resources and constraints Time- Boxing Collabora6on

16 Feasibility Definition Waterfall vs. Agile Delivering Incremental Value Design Construction Waterfall Release Sprint 1 Sprint 2 Sprint 3 Sprint 4 Sprint 5 Sprint 6 Sprint 7 Sprint 8 AGILE 2 wks 2 wks 2 wks 2 wks 2 wks 2 wks 2 wks 2 wks Release #1 Release #2 Release #3

17 Different Approaches Waterfall or Tradi6onal PM Detailed, long- term project plans with single,meline Defini,ve and rigid roles Changes in deliverables are discouraged and costly Fully completed product delivered at the end of the,meline Contract- based approach to requirements Customer is involved (generally) only at the beginning and end of a project Phased approach creates dependencies Agile Shorter planning based on itera,ons and mul,ple deliveries Flexible, cross- func,onal team composi,on Changes in deliverables are expected and less impacmul Product delivered in func,onal stages Collabora,ve and interac,ve approach to requirements Customer is involved throughout the sprint Concurrent approach seeks to reduce dependencies

18 Waterfall to Itera,on ASAP Waterfall Agile Approach 18

19 A Lean and Agile Approach to ERP Lean Thinking Eliminate Waste Pull From Demand Focus on business value Empower Workers Enable Con,nuous Improvement Agile is a journey, not a des$na$on. Some Agile Techniques Frequent inspec,on and adapta,on Aligning development with customer needs & company goals Co- loca,on Self- organiza,on and accountability Becoming a team player Elimina,on of waste and ceremony Empirical demonstra,on of results Customer is always present Product managers and owners 5 planning events: product planning, release/ feature planning, itera,on planning, sprint review, and stand- ups 19

20 People: Change in Roles Product Owner Develops and maintains the Product Backlog Defines the features of the product, decides on release content Empowered to make decisions for all customers and users Prioritizes features according to market and/or user value Can change features and priority between iterations Accepts or rejects work results Jointly accountable for the success of the project Sprint Team Business and technical domain skills to build an increment of functionality Organizes itself and its work Responsible for identifying, estimating and committing to work Works with Product Owner to identify iteration goal; specifies work it will commit to Empowered within the boundaries of the project guidelines to do whatever needed to reach the iteration goal; they take ownership for what needs to be done and do it Demos work results to the Product Owner (and stakeholders) Jointly accountable for the success on the project Scrum Master Ensures the process is followed; trains team (and stakeholders) on the process Enables optimum environment for maximum team productivity Enables close cooperation across all roles and functions and removes barriers Shields the team from external interference Ensures impediments are resolved Jointly accountable for the success of the project 20

21 Kanban ( 看 板 ) Literally means signboard in Japanese What is Kanban? Describes a Lean, pull- based process that controls knowledge workflow with visual no,fica,ons and by limi,ng waste from Work in Progress or WIP At the crux of Kanban is as with any lean or agile process ongoing process improvement, with one key principle in the star,ng point: First step is to change nothing (or as ligle as possible)!* and another principle to guide a team toward maturity: Build a culture of metrics- driven delivery improvements. *DJAA Kanban 21

22 Lean Agile ERP Delivery Models 22

23 Phased Planning Planning and Requirements Waterfall Build/Test/Deploy Constraints of resources Unknown scope/requirements Lack of Buy- in from Stakeholders for Scope Known Gaps/Solu,on Complexity 23

24 Itera,ve Waterfall Agilefall Planning Requirements Build Test Not sure if Agile will work for us Introduc,on of Agile to Teams Resistors to Agile Deploy 24

25 Lag Teams Iteration #1 Iteration #2 Iteration #3 Iteration #4 Development Team Quality/ Testing Team Compliance and regulatory tes,ng Independent tes,ng and QA teams 25

26 Agile Itera,ons PLAN/REQUIREMENTS/BUILD/TEST/DEPLOY Release #1 Release #2 Release #n Known scope and requirements Teams with func,onal and technical exper,se Smaller projects Shorter release cycles Smaller teams 26

27 INTEGRATION LAYER Scrum of Scrums Team 1 Team 2 Team 3 Large teams Complex solu,ons Integrated Dependencies 27

28 Introducing Kanban to Your Team 28

29 Evolu,onary Change Agile/Scrum v. Kanban Change Curve " Agile can require significant up-front development process and organizational change " Kanban seeks to leverage existing development processes and limited initial organizational change

30 Kanban Board Input Queue Analysis In Prog Done Dev Development Ready In Prog Done Build Ready Test Release Ready Stage Prod. Flow Courtesy David J. Anderson & Associates, Olav Maassen QNH 30

31 Manage Flow Input Queue (WIP 1 =5) Analysis (WIP 1 =3) DEV (WIP 1,2 =7) INT Test (WIP=4) QA Ready QA Release/ Verify (WIP=4) PROD Ready PROD Release/ Verify (WIP 3 =3) Expedite (Max 2) In Progress Done In Progress Done Minimize time from start to finish CYCLE TIME! Fixed Delivery Date (Max 3) Blockers building Standard/ Intangible (No Max) These queues are getting low 31

32 corporatekanban.com 32

33 Lean Agile ERP Challenges and Success Factors 33

34 34

35 Applica,on Development vs. ERP Feature Sets versus Process Sets Not necessarily promo,ng code to produc,on auer each sprint Coding vs. Configura,on Complexity of Business Requirements Diverse set of skills required to complete ERP Process Sets Introduc,on of integra,on sprints Concurrent Support teams with dependencies Systems Administra,on Security Organiza,onal Change Quality Assurance / Tes,ng Training / Deployment 35

36 A new way to manage projects Makes all the dysfunc,on in a team or organiza,on visible Bad products will be delivered sooner, and doomed projects will fail faster People may follow the mechanics but not the values of Agile People are most comfortable with what they know ERP consultants have an ajachment to waterfall development Lack of incen,ve to increase speed to delivery ERP solu,ons are all encompassing Environment includes development, proprietary programming system/language, a run,me environment, a source code control system Integrated end- to- end business process that are difficult to decompose ERP configura,on is NOT programming Managing dependencies and sequencing of stories, tasks, ac,vi,es Management of RICEFW objects in line with Sprint delivery Integra,ng off- shore development Challenges in Applying Agile to ERP 36

37 Success Factors for an Agile SAP Team Establish Buy- In to the process at all levels Start with something that can deliver a quick win Establish Confidence The Art of Storytelling Do not be discouraged at the moment of First Awkward Use Integra,ng members of team that are not co- located Ability to remove impediments Manage the flow of work Establish a process and framework that works best with your culture, resources, and environment Con,nuously update process and framework Learn and Adjust 37

38 1. Conduct Agile Readiness and Cultural Assessments 2. Iden,fy the Execu,ve Champion(s) Key Lessons Learned 3. Be flexible in crea,ng a model that works for the culture of the organiza,on 4. Consider varying steps of adop,on (it s a journey ) 5. Select the right first project Not all projects are good candidates for Agile 6. Train the team at all levels 7. Develop a Product Council that is willing to work 38

39 Key Lessons Learned 8. Find the right Product Owner and engage Stakeholders 9. Focus on Team Work over mechanics 10. Collabora,on over co- loca,on 11. Building the Backlog Story Mapping and Stories 12. Set rules of engagement for the team 13. Selec,ng the right metrics and the right repor,ng tools 14. Align team and individual performance metrics to tangible project goals 39

40 Agile Themes, Epics, Stories 40

41 Requirements / Backlog Decomposi,on Release Process Level 1 / 2* i.e. work stream and/or core functionality Theme 1 Theme Process Level 2 i.e. Sales Order Process Theme 2 Theme n Epic 1 Epic 2 Epic n Ø Maintain an iterative process of analysis to continually refine and decompose Requirements into discrete units of work Ø Level of Effort (LOE) estimates are iteratively refined as decomposition reveals new information (gaps, complexities, redundancies, etc ) Epic 1 (aka. Feature) Story 1 Story 2 Story n Blueprint Document level i.e. BPxxx_Services_Order_Process Story 1 Task 1 Task 2 Task n Detailed Requirement / Process Step level i.e. Create Services Order Task 1 Unit of Work i.e. BPxxx_B_001 *May be a Business Requirement, RICEFW, Configuration, etc 41

42 Story Mapping * Represents business process flow and steps with tasks and ac,vi,es Discuss the steps of the process with candidate users Record tasks as they say them Rearrange tasks and insert tasks as you clarify the big story Add ac,vi,es as you iden,fy them from discussion activity task time necessity sub-tasks or task details For a user to successfully engage in this ac,vity, is it necessary they perform this task? If it s not absolutely necessary, how cri,cal is it? * From Jeff Patton at Agile Product Design 42

43 Story Mapping * Release Planning necessary less optional more optional optionality first release second release third release time Choose coherent groups of features that consider the span of business func,onality and user ac,vi,es Support all necessary ac,vi,es with the first release Improve ac,vity support and add addi,onal ac,vi,es with subsequent releases * From Jeff Patton at Agile Product Design 43

44 Story Mapping * User Story Mapping is an approach to Organizing and Priori,zing user stories * From Jeff Patton at Agile Product Design 44

45 Customer Case Study - OCPS 45

46 OCPS Proof of Concept Orange County Public Schools 10 year SAP customer Full SAP suite of applica,ons (FI/CO, MM, HR/Payroll, etc.) Ac,ve produc,on support team Pormolio of on- going con,nuous improvement projects Developed Lean Agile SAP Proof of Concept with Genesis Selected Performance Management Project Defined scope, selected resources Legisla,ve mandate to automate performance appraisals by 3/1/ weeks behind schedule before Lean Agile SAP Implement EP and Performance Appraisals 46

47 Raise OCPS Lean Agile Awareness Just- In- Time training Frequent demonstra,on of completed product to customer All- Hands demonstra,on of Scrum Technique High visibility of project health via informa,on radiators Led Team through First Awkward Use U,lized a seasoned Lean Agile Master Coach to mentor team, customer and management Hands- on demonstra,on of disciplines, techniques and tools POC Approach 47

48 Project Team Training Cer,fied Scrum Master Training Advanced Project Management training for PMO Program and Project Managers, Business Managers and Project Coordinators Team Training Lean- Agile Orienta,on Release Planning Scope Confirma,on Team Roles Story Telling and Documenta,on Project/Release Backlog Crea,on Itera,on Planning and Tasking of Work Effec,ve Daily Stand- ups Sprint Close- out and Performance Data Collec,on Uncovering Root Cause of Barriers Applying Improvements Leadership training 48

49 Planning Tools " LSAP introduces batch processing by breaking scope up into small product units called stories " Stories sit in a list controlled by the Product Owner 49

50 Lean Agile to Manage SAP Ini,a,ves Visual Management approach Promotes self- management Transparency of assigned work Facilitates teamwork and cross- training Immediate knowledge of project status Genesis Consul,ng, LLC 50

51 POC Results Completed project 1 week ahead of schedule Team realized a 200% increase in produc,vity and efficiency Project validated that customer needs evolve Scope Changes 20% Adds 18% Drops Process validated Lean Agile processes are adap,ve Team was not disrupted by the scope changes Team adapted to change in just 4 sprints Customer, Team Members and Project Management Confirm empirical evidence is bejer that Progress Reports Scrum planning events free up significant,me for teams to focus on Value Add work Work products completed significantly faster Team habits have changed becoming Lean Thinkers OCPS now deploying Lean Agile approach across pormolio of SAP Projects Change is an Asset and Not a Liability 51

52 Customer Tes,monials "Having the business decision-makers in the room to answer my questions in a timely manner, as well as to make decisions right when I needed them, was very powerful. In the past seven days, I saved one week s worth of work." SAP Developer This team was able to get three weeks worth of work done in just one week by using this Lean Agile SAP approach." Business Process Specialist "By being collocated there is a higher awareness of each of the team members' contributions towards the project's common goal. This has helped us as a project team have clearer communication on levels we don t normally have" NetWeaver Analyst "Post production support will be much easier and quicker, because the support people have been involved from the beginning and truly understand what we will be delivering on golive" Business SME "This process requires that we demonstrate our work every few weeks. The project stakeholders are now so much more informed about what we are doing, and the business is more prepared for what we will be delivering to them when we go live." Configuration Analyst "I was just so impressed. Everyone was so happy and proud when they demonstrated their work to the stakeholders after each iteration" Project Manager Before this process, I was uncertain how this project would get done in time. Now I am comfortable that we will get it done in time. Business SME SAP project teams are realizing up to 200% increase in productivity and efficiency. 52

53 Expanding Lean Agile to Manage SAP Opera,ons Genesis Consul,ng, LLC 53

54 A New Process Evolves Portfolio Planning Portfolio of Work Blue Print Backlog of Customer Valued Stories To stay productive these activities must be ready to request work Just-in-Time Customer Care Escalated Problem Product Council Approved Stories/Release Plan Service Request Power User Break Fix Expediter Capacity Stats Urgent Request to Fix Business Realization Business Solutions Independent Test The Lean Agile Team performs work here Deploy Validated Production Ready 54

55 Agile Readiness 55

56 Agile Readiness - Is your organiza,on ready for Agile? Project Characteris,cs Requirements Effort/Dura,on Interfacing Systems (3 or less) Regulatory Compliance Project Inter- dependencies Sponsor Characteris,cs Sponsor buy- in Sponsor,me commitment Training for Agile Periodic Valida,on End User Adop,on Project Resources Team size Resource Dedica,on Technology / Business Domain knowledge Collabora,on Colloca,on Tes,ng automated Agile Awareness and Acceptance Training at all levels Ability to apply agile techniques for all aspects of the project Coaches are available do not do it alone 56

57 INNOVATION COOKBOOK CATEGORY Relative Score 1< >10 Requirements - Definition 0 0 => "INNOVATION" "COOKBOOK" <= 10 Requirements are ill defined, uncertain and/or constantly open to change per team and customer. Requirements are very well defined. Customer is able to communicate them clearly. Time is available at the start of the project to create documentation. Change 0 Scope changes frequently. Scope is relatively stable. Experience 0 Little or no experience with this type of project in the past. Relatively new technology or business process. Technology or business process is mature. Project methodology is already established and consists of repetitive tasks. Resources - Dedication 0 Project team resources can be 100% dedicated to the project. Project teams cannot be dedicated 100% to one project. Resources are spread across different projects and tasks. Resources - Physical Location 0 Project team resources are co- located. Project Teams resources are not co- located. Customer - Involvement 0 Customer is available to be involved on a consistent and regular basis. Customer involvement is intermittent at best, usually at requirements definition and sign off, scope verification and user acceptance upon completion. Customer - Timelines 0 Customer does not require end date for all deliverables. Customer requires a project completion delivery date early on in the engagement. Documentation 0 Minimum documentation is acceptable. Rigorous and detailed documentation is required. 57

58 58

59 Connect with Genesis Consul,ng Blog: hjp:///archives/category/blog LinkedIn: hjp:// Facebook: hjp:// YouTube: hjp:// 59

60 jason fair CEO 5207 Hickory Park Drive, Suite E Glen Allen, VA e t w mary fowlkes Managing Partner 5207 Hickory Park Drive, Suite E Glen Allen, VA e t w kevin lotenberg Chief Operating Officer 5207 Hickory Park Drive, Suite E Glen Allen, VA e t w 60

61 Visit our website at:

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