Agile Means Business. Lee Cunningham Director, Enterprise Agile Enablement VersionOne. October 2014

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1 Agile Means Business Lee Cunningham Director, Enterprise Agile Enablement VersionOne October 2014

2 About me 20 years software industry experience 16+ years in numerous software development & delivery leadership roles 14+ years agile experience Trained, coached, and mentored hundreds of teams in scores of organizations Aligned with executive sponsors of enterprise agile transformations Business experience outside of technology CSM, PMP, PMI-ACP, SPC 2014 VersionOne 2

3 What this session is about Individuals and interactions Working software Responsiveness to change Customer collaboration across every facet of the business Agile Enterprise 2014 VersionOne 3

4 Is one of these really any less believable than the other? TRANSFORM YOUR BUSINESS INTO AN AGILE ENTERPRISE WITHOUT EXECUTIVE LEADERSHIP! 2014 VersionOne 4

5 A (very) short story 2014 VersionOne 5

6 but this guy: 2014 VersionOne 6

7 Why this is important for YOU 2014 VersionOne 7

8 Quick overview of executive roles CEO CFO CIO CTO Leads the enterprise to attain its goals, in accordance with its values and mission; Responsible to the board of directors Responsible for the enterprise's financial capability to achieve its business goals; Reports to the CEO Responsible for the information technology and computer systems used internally to support enterprise goals; Typically reports to the CEO or the CFO Focused on technology integral to products being sold externally to customers or clients to support enterprise goals; Typically reports to the CEO 2014 VersionOne 8

9 And the relationships vary Board CEO CFO CIO CTO CIO CTO 2014 VersionOne 9

10 Gartner Survey of CEOs What are your top priorities for 2014? Adopting SAFe DevOps More Collaboration 2014 VersionOne 10

11 What do CEOs report to be focused on? Growth Cost Management Profit Improvement (Source: 2014 CEO and Senior Executive Survey, Gartner, Inc.) 2014 VersionOne 11

12 What do CIOs report to be focused on? 1. Improve the use of data and analytics (to ID risk and opps, and to use the data for revenue) 2. Support business and marketing goals 3. Improve IT project delivery 4. Develop skills for emerging tech and innovation 5. Reorganize or retrain IT to focus on business outcomes & innovation (Source: 2014 State of the CIO Survey, CIO Magazine) 2014 VersionOne 12

13 Top 3 activities reported by CIOs If IT is seen as a business peer or game changer 1. Driving Business Innovation 2. Cultivating the IT-Business relationship 3. Developing business strategy If IT is seen as a Service Provider or Cost Center 1. Improving IT operations 2. Deploying new systems 3. Controlling IT costs (Source: 2014 State of the CIO Survey, CIO Magazine) 2014 VersionOne 13

14 What do CFOs report to be focused on? Revenue growth and investing cash over lowering costs and returning cash New and old products, targeted at existing geographies Organic growth (Source: CFO Signals, Q3 2014, Deloitte) 2014 VersionOne 14

15 The underlying theme: It s all about the business! ( but we already knew that -- right?) 2014 VersionOne 15

16 Our challenge: Close the gaps Close the gaps in terms of Message Methods Measures 2014 VersionOne 17

17 Value Stream and ROI Defects -$ -$ rework Idea Design & Code Test Deliver/ Deploy Valuable, Working, Delivered Features -$ -$ -$ -$ +$ Investment Operating and Variable Expenses Revenue Until we ve gotten paid, all we ve done is spend money VersionOne 18

18 A familiar example Challenge: We always seem to plan more than we can do, which leads to unrealistic expectations, missed deliverable dates, and poor quality. Message: Why don t we limit our commitment to what our observed capacity to deliver really is. That way, we can set realistic expectations as to scope, schedule, cost, and quality. Method: Use the observed velocity trend to determine our commitment level. Continuously update that trend, and investigate the causes of any negative trending. Measure: Velocity trend; Actual delivery vs. delivery commitment 2014 VersionOne 19

19 Try it out CIO s challenge : I have to somehow balance business innovation and operational excellence. I am finding that difficult to do. Message: Method: Measure: 2014 VersionOne 20

20 Recap In order to have effective influence toward a truly agile enterprise: Understand what s important to your executive leadership Close the gaps in terms of Message Methods Measures Be prepared to seize the opportunities you have to exert influence VersionOne 21

21 On Behalf of Everyone at VersionOne Thanks! 2014 VersionOne 23