Fact or Fiction: ERP Projects Can Be Delivered Using Agile

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1 Fact or Fiction: ERP Projects Can Be Delivered Using Agile August 10, 2011 To contact me after my presentation, text YCM to INTRO (46876)

2 This document is protected under the copyright laws of the United States and/or other countries as an unpublished work. This document contains information that is proprietary and confidential to Genesis Consulting 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 Consulting Partners, LLC and/or its affiliate(s). Any use or disclosure in whole or in part of this information without the express written permission of Genesis Consulting Partners, LLC and/or its affiliate(s) is prohibited Genesis Consulting Partners, LLC and/or its affiliate(s) (Unpublished). All rights reserved. The LSAP and ISAP methodology is a component of Genesis Consulting Partners, LLC implementation content and contains processes, templates and techniques used to deliver Genesis Consulting Partners, LLC services. 2

3 Contents Introductions Our Vision A Lean and Agile Approach to ERP Addressing the Challenges of Agile ERP Agile ERP Customer Case Study Delivery Models for Agile ERP Key Lessons Learned 3

4 Jason Fair, CEO More than 20 years of industry experience, 18 years specializing in implementing ERP technologies. Industry experience includes: Commercial, Consumer Products, Retail, Aerospace and Defense, Healthcare, Federal, Department of Defense, Intelligence Community, State and Local Government and Higher Education Former Managing Director/Partner for SAP Solutions at BearingPoint leading a North American practice with over $250M in revenues and over 350 dedicated SAP consultants Program Manager for a $280M SAP implementation with over 250 team members. Deployed SAP solutions to over 30,000 users at 126 sites worldwide Recently led the delivery of a Lean Agile implementation to deliver enterprise solutions to 25,000 users. Leveraging Agile techniques, delivered the project ahead of schedule and increased the SAP team s performance by over 250% Nationally recognized as a thought leader in the Agile community driving new concepts for a Lean Agile ERP implementation approach. Certified SAP Consultant, Certified Project Management Professional (PMP), Certified Scrum Master (CSM), Certified Public Accountant (CPA), U.S. Government Top-Secret Clearance Regular speaker at SAP, ASUG, Agile Alliance and various industry conferences. In spare time, training for various triathlon, running and cycling races. 4

5 Genesis Consulting Services We specialize in delivering the following services: SAP Technology: Strategy and Planning Project Management Systems Integration and SAP Consulting Lean Agile SAP Data Management Organizational Change Management Business Process Management Enterprise Performance Management Certified small business in the Commonwealth of Virginia and registered with the Small Business Administration 5

6 Genesis Consulting - Our Vision Deliver Value Consistently - Focus on Value Based Delivery Challenge the Status Quo and the Way we have always done it. Introduce concepts of Lean and Agile to instill a culture of continuous improvement Evaluate where in the Lean and Agile adoption cycle an organization is and help them become more Agile Coach organization leaders on enterprise adoption of Lean and Agile 6

7 Who is in the Audience? How many people work for an organization that has an ERP system or COTS? How many people have worked on an implementation project for these software applications? How many people have implemented a project for these applications using Agile? 7

8 Fact or Fiction? Describe a key challenge that an ERP project faces using Agile. 8

9 A Lean and Agile Approach to ERP 9

10 Project Prep Blueprint Waterfall vs. Agile Delivering Incremental Value Realization Final Prep Waterfall Go-Live/Support 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 10

11 Application Development vs. ERP Feature Sets versus Process Sets Not necessarily promoting code to production after each sprint Coding vs. Configuration Complexity of Business Requirements Diverse set of skills required to complete ERP Process Sets Introduction of integration sprints Concurrent Support teams with dependencies Systems Administration Security Organizational Change Quality Assurance / Testing Training / Deployment 11

12 A new way to manage projects Makes all the dysfunction in a team or organization 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 project team members have an attachment to Waterfall development Lack of incentive to increase speed to delivery ERP solutions are all encompassing Challenges in Applying Agile to ERP Environment includes development, proprietary programming system/language, a run time environment, a source code control system Integrated end-to-end business process that are difficult to decompose ERP configuration is NOT programming Managing dependencies and sequencing of stories, tasks, activities Management of development objects integrated with Sprint delivery Integrating off-shore development 12

13 Addressing the Challenges of Agile Adoption 13

14 Addressing the Challenges of ERP Agile Adoption Assessing Agile Readiness Tailor the approach to the Adoption Lifecycle Identify the case for change Identify a Champion for Agile Change in Roles and Responsibilities Select the right first project - demonstrate success Set realistic expectations of delivery Build a GREAT backlog Integrate Organizational Change Management 14

15 Agile Readiness - Is your Organization Ready for Agile? Project Characteristics Requirements Effort/Duration Interfacing Systems (3 or less) Regulatory Compliance Project Inter-dependencies Sponsor Characteristics Sponsor buy-in Sponsor time commitment Training for Agile Periodic Validation End User Adoption Project Resources Team size Resource Dedication Technology / Business Domain knowledge Collaboration Collocation Testing 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 15

16 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. 16

17 Requirements / Backlog Decomposition 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 Maintain an iterative process of analysis to continually refine and decompose Requirements into discrete units of work 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 17

18 Story Mapping * Represents business process flow and steps with tasks and activities 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 activities as you identify them from discussion activity task time necessity sub-tasks or task details For a user to successfully engage in this activity, is it necessary they perform this task? If it s not absolutely necessary, how critical is it? * From Jeff Patton at Agile Product Design 18

19 Story Mapping * Release Planning necessary less optional priority first release second release time more optional third release Choose coherent groups of features that consider the span of business functionality and user activities Support all necessary activities with the first release Improve activity support and add additional activities with subsequent releases * From Jeff Patton at Agile Product Design 19

20 Story Mapping User Story Mapping is an approach to Organizing and Prioritizing user stories * From Jeff Patton at Agile Product Design 20

21 Agile ERP Customer Case Study 21

22 OCPS Proof of Concept Orange County Public Schools 10 year SAP customer Full SAP suite of applications (FI/CO, MM, HR/Payroll, etc.) Active production support team Portfolio of on-going continuous improvement projects Developed Lean Agile SAP Proof of Concept with Genesis Selected Performance Management Project Defined scope, selected resources Legislative mandate to automate performance appraisals by 3/1/ weeks behind schedule before Lean Agile SAP Implement EP and Performance Appraisals 22

23 Raise OCPS Lean Agile Awareness Just-In-Time training Frequent demonstration of completed product to customer All-Hands demonstration of Scrum Technique High visibility of project health via information radiators Led Team through First Awkward Use Utilized a seasoned Lean Agile Master Coach to mentor team, customer and management Hands-on demonstration of disciplines, techniques and tools POC Approach 23

24 Project Team Training Certified Scrum Master Training Advanced Project Management training for PMO Program and Project Managers, Business Managers and Project Coordinators Team Training Lean-Agile Orientation Release Planning Scope Confirmation Team Roles Story Telling and Documentation Project/Release Backlog Creation Iteration Planning and Tasking of Work Effective Daily Stand-ups Sprint Close-out and Performance Data Collection Uncovering Root Cause of Barriers Applying Improvements Leadership training 24

25 Lean Agile to Manage SAP Initiatives Visual Management approach Promotes selfmanagement Transparency of assigned work Facilitates teamwork and cross-training Immediate knowledge of project status 25

26 POC Results Completed project 1 week ahead of schedule Team realized a 200% increase in productivity and efficiency Project validated that customer needs evolve Scope Changes 20% Adds 18% Drops Process validated Lean Agile processes are adaptive 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 better that Progress Reports Scrum planning events free up significant time 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 portfolio of SAP Projects Change is an Asset and Not a Liability 26

27 Customer Testimonials "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. 27

28 Expanding Lean Agile to Manage SAP Operations 28

29 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 29

30 ERP Customer Adoption of Agile 30

31 Survey Results from Agile Product Teams & Mgt 31

32 Survey Results from Agile Product Teams & Mgt 32

33 Agile Metrics FY

34 Delivery Models for Agile ERP 34

35 Agile ERP Delivery Models Lean Approach Iterative Waterfall Waterfall Planning Agile Delivery Agile Iterations Lag Teams Scrum of Scrums 35

36 Lean and Kanban Reducing waste in the project Focus on Customer Value Add activities Focus on Continuous Improvement Introducing the Concept of Flow of Work and WIP Streamline Governance Reduce documentation 36

37 Agile ERP Lessons Learned 37

38 38

39 12 Key Lessons Learned 1. Be flexible in creating a model that works for the culture of the organization 2. Consider varying steps of adoption 3. Find the Champion 4. Select the right first project Not all projects are good candidates for Agile 5. Train the team at all levels 6. Develop a Product Council that is willing to work 39

40 12 Key Lessons Learned 7. Find the right Product Owner 8. Focus on Team Work over mechanics 9. Collaboration over co-location 10. Building the Backlog Story Mapping and Stories 11. Set rules of engagement for the team 12. Selecting the right metrics and the right reporting tools 40

41 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 Integrating members of team that are not co-located Ability to remove impediments Manage the flow of work Success Factors for an Agile SAP Team Establish a process and framework that works best with your culture, resources, and environment Continuously update process and framework Learn and Adjust 41

42 42

43 Connect with Genesis Consulting Blog: LinkedIn: Facebook: YouTube: 43

44 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 richard dolman Director of Lean and Agile Solutions 5207 Hickory Park Drive, Suite E Glen Allen, VA e t w To contact me after my presentation, text YCM to INTRO (46876) 44

45 Visit our website at:

[ SHERRYANNE MEYER. Lean and Agile SAP Sprint Team Sprint! John Choate National Chair. Jason Fair CEO, Genesis Consulting [ STEVE RUGGIERO [ ED HUDAK

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