Scaling Agile with the Lessons of Lean Product Development Flow Copyright 2012 Net Objectives, Inc. All Rights Reserved

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3 Lean for Executives Product Portfolio Management Business Product Owner Business Lean Enterprise ASSESSMENTS CONSULTING TRAINING COACHING technical Team process Lean-Agile Kanban / Scrum ATDD / TDD / Design Patterns Manag ement Lean Management Project Management Copyright 2012 Net Objectives, Inc. All Rights Reserved 3

7 Scrum is often a good start to spin up Agile teams It is not necessarily a good start at achieving Agility across an organization But in any event, you can leverage your investment Copyright 2012 Net Objectives, Inc. All Rights Reserved 7

10 Input Iteration 0 Business Priority Business Planning Business Staging Ready to Pull Iterative Development Incremental Deployment Support & Feedback LEAN KANBAN ITERATIVE AGILE AGILE provides framework and practices for producing increments of functionality LEAN provides principles and practices which enable defining and prioritizing increments of highest business value Copyright 2012 Net Objectives, Inc. All Rights Reserved 10

12 Scaling Agility using methods that work at team level to get teams to work together Agility at Scale Focus on entire value stream Shortening cycle time Avoid excessive WIP at product level Copyright 2012 Net Objectives, Inc. All Rights Reserved 12

15 WASTE and the DELAY OF VALUE Always 7% Never Used 45% Often 13% Sometimes 16% Usage of Features and Functions in Typical System Rarely 19% Source: Standish Group Study of 2000 projects at 1000 companies Copyright 2012 Net Objectives, Inc. All Rights Reserved 15

16 Cash flow conomics of responsiveness Investment Period Payback Period Profit Period Time First Release Breakeven Mark Denne and Jane Cleland-Huang Software by Numbers Copyright 2012 Net Objectives, Inc. All Rights Reserved 16

19 Cash flow taged releases Profit Period Investment Period Payback Period Total Return Time Investment Breakeven Point Use Minimal Business Increments (MBI) (sometimes called MMFs, MVPs, MVFs, MMRs) Copyright 2012 Net Objectives, Inc. All Rights Reserved 19

20 ncreased profit Cash flow Staged Releases Breakeven Single Release Time First Release Requires a focus on sustainability of realizing value by attending to architectural roadmap of product line Copyright 2012 Net Objectives, Inc. All Rights Reserved 20

21 Deliver in Stages w h e n p o s s i b l e focusing on the known, valuable features gives greater certainty produces greater value lowers risk of mis-building and over-building Copyright 2012 Net Objectives, Inc. All Rights Reserved 21

23 What Work Do You Do? Getting Requirements Design Programming Testing Planning Collaboration Integration Re-doing requirements Working from old requirements Fixing bugs Building unneeded features Documentation Deployment Training Integration errors Overbuilding frameworks/too much design Essentially duplicating components Copyright 2012 Net Objectives, Inc. All Rights Reserved 23

25 Request Approve Reqts Sign Off 0.5 hrs 8 hrs 160 hrs 8 hrs Analysis 100 hrs Design Review Code Test 120 hrs 2 hrs 280 hrs 240 hrs Deploy 8 hrs 1. Identify the actions taken in the value stream 2. What was the real time from start to finish of the action? Copyright 2012 Net Objectives, Inc. All Rights Reserved 25

26 Request 0.5 / 0.0 hr Approve.1 / 7.9 hrs Reqts 60 / 100 hrs Sign Off 1 / 7 hrs Analysis 40 / 60 hrs 0.5 hrs 8 hrs 160 hrs 8hrs 100 hrs Design 40 / 80 hrs Review 2 / 0 hrs Code 80 / 200 hrs Test 40 / 200 hrs Deploy 3 / 5 hrs 120 hrs 2 hrs 280 hrs 240 hrs 8 hrs 1. Identify the actions taken in the value stream 2. What was the real time from start to finish of the action? 3. What was the average time working on this vs working on other things? Copyright 2012 Net Objectives, Inc. All Rights Reserved 26

27 Request 0.5 / 0.0 hr Approve Reqts Sign Off 320 hrs.1 / 7.9 hrs 80 hrs 60 / 100 hrs 320 hrs 1 / 7 hrs 80 hrs 0.5 hrs 8 hrs 160 hrs 8hrs Analysis 40 / 60 hrs 100 hrs 80 hrs Design 40 / 80 hrs Review Code 2 / 0 hrs 160 hrs 80 hrs 80 / 200 hrs 80 hrs 40 / 200 hrs 80 hrs 120 hrs 2 hrs 280 hrs 240 hrs Test Deploy 3 / 5 hrs 8 hrs 1. Identify the actions taken in the value stream 2. What was the real time from start to finish of the action? 3. What was the average time working on this vs working on other things? 4. Identify time between actions Copyright 2012 Net Objectives, Inc. All Rights Reserved 27

28 Request 0.5 / 0.0 hr Approve Reqts Sign Off 320 hrs.1 / 7.9 hrs 80 hrs 60 / 100 hrs 320 hrs 1 / 7 hrs 80 hrs 0.5 hrs 8 hrs 160 hrs 8hrs Analysis 40 / 60 hrs 100 hrs 80 hrs Design 40 / 80 hrs Review Code 2 / 0 hrs 160 hrs 80 hrs 80 / 200 hrs 80 hrs 40 / 200 hrs 80 hrs 120 hrs 2 hrs 280 hrs 240 hrs Test Deploy 3 / 5 hrs 8 hrs 20% rejected Repeat 1X 65% defective Repeat 3X 1. Identify the actions taken in the value stream 2. What was the real time from start to finish of the action? 3. What was the average time working on this vs working on other things? 4. Identify time between actions 5. Identify any loop backs required Copyright 2012 Net Objectives, Inc. All Rights Reserved 2 July

29 Request 0.5 / 0.0 hrs Approve Reqts Sign Off 320 hrs.1 / 7.9 hrs 80 hrs 60 / 100 hrs 320 hrs 1 / 7 hrs 80 hrs 0.5 hrs 8 hrs 160 hrs 8hrs Analysis 40 / 60 hrs 100 hrs 80 hrs Design 40 / 80 hrs Review Code Test 2 / 0 hrs 80 / 200 hrs 40 / 200 hrs 160 hrs 80 hrs 80 hrs 80 hrs 120 hrs 2 hrs 280 hrs 240 hrs Deploy 3 / 5 hrs 8 hrs 20% rejected Repeat 1X 65% defective Repeat 3X 509 hrs PCE = = 14.9% 3433 hrs 1. Identify the actions taken in the value stream 2. What was the real time from start to finish of the action? 3. What was the average time working on this vs working on other things? 4. Identify time between actions 5. Identify any loop backs required Avg Time Worked 6. Calculate Process Cycle Efficiency: Total Cycle Time Copyright 2012 Net Objectives, Inc. All Rights Reserved 29

30 Request 0.5 / 0.0 hrs Approve Reqts Sign Off 320 hrs.1 / 7.9 hrs 80 hrs 60 / 100 hrs 320 hrs 1 / 7 hrs 80 hrs 0.5 hrs 8 hrs 160 hrs 8hrs Analysis 40 / 60 hrs 100 hrs 80 hrs Design 40 / 80 hrs Review Code 2 / 0 hrs 80 / 200 hrs 40 / 200 hrs 160 hrs 80 hrs 80 hrs 80 hrs 120 hrs 2 hrs 280 hrs 240 hrs Test Deploy 3 / 5 hrs 8 hrs 20% rejected Repeat 1X 65% defective Repeat 3X = 2924 Which gives a better return? Getting better at what you do Eliminating delays between what you do Copyright 2012 Net Objectives, Inc. All Rights Reserved 30

31 Case Study: Coordinating Teams Background Multiple teams Specialized Each team completed sprints in two weeks but value not delivered for months and then with challenges 2+2=??? Copyright 2012 Net Objectives, Inc. All Rights Reserved 31

32 verall Team Organization Product Line A applications Product Line B applications Component team for line A applications System-Wide Component Team Component team for line B applications Copyright 2012 Net Objectives, Inc. All Rights Reserved 32

33 eams on a Project Product Line A applications Product Line B applications Component team for line A applications Component team for line B applications System-Wide Component Team Copyright 2012 Net Objectives, Inc. All Rights Reserved 33

34 MBI MBI Teams Split MBI work according to on their parts Teams Teams split according to components Eventually Teams work integrating on their them part together until done Feedback times for: Team Across teams Customer 2 weeks 6 weeks 8 weeks Progress bar Copyright 2012 Net Objectives, Inc. All Rights Reserved 34

35 Principles to Guide Us Front of the Value Stream Value Minimal Business Increment Flow making our teams efficient People work on one thing No delays in workflow People must pull work when ready Work must be available to teams in a coordinated fashion Copyright 2012 Net Objectives, Inc. All Rights Reserved 35

36 Input Iteration 0 Shared Backlog Integration Train P O R T F O L I O CONTEXT OF THE SOLUTION BUSINESS DISCOVERY BUSINESS DELIVERY Business Priority Business Planning Business Staging Ready to Pull Iterative Development Iterative Iterative Development Incremental Deployment Support & Feedback Decision High enough business value? Decision Technically feasible, sufficient ROI? Decision Is there capacity? Iterative Development Decision Ready to release? Review business value, approve, and prioritize Define value increments and sequence Define acceptance criteria and feature sequence Define product backlog Build iteratively, deploy incrementally Copyright 2012 Net Objectives, Inc. All Rights Reserved 36

37 MBI MBI Split MBI into subfeatures but teams takes integrate much less their time Integration After one still iteration, required Development Teams work teams on components split according their to part components Feedback times for: Team Across teams Customer 2 weeks 2 weeks 2 weeks Progress bar Copyright 2012 Net Objectives, Inc. All Rights Reserved 37

38 Drive From Business Value Deliver Value as Soon as Possible Organize for Value Delivery Build Quality In Make Everything Visible Attend to Change key points Copyright 2012 Net Objectives, Inc. All Rights Reserved 38

40 Q U E S T I O N S? Lean for Executives Product Portfolio Management Business Product Owner Scaled Agile Framework technical Team process Lean-Agile Kanban / Scrum ATDD / TDD / Design Patterns Busines s Lean Enterprise Manag ement Lean Management Project Management ASSESSMENTS CONSULTING TRAINING COACHING For more info on free resources see: Copyright 2012 Net Objectives, Inc. All Rights Reserved 40