ADJUGO Lean agile management

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ADJUGO uses SAFe to support the lean agile transformation

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1. ADJUGO Lean - agile transformation: Involving management and teams www.adjugo.com 0474/891.705

10. 10 budgets need to be evaluated every quarter, not just once every year. Managing people will not be l imite d to one or two talks , but require s more subtle coaching and helping teams to funct ion optimally, probably at a much higher level than before. T he time saved by no longer micro - managing the individuals in their teams will need to go to managing important stuff: alignment to strategy, assuring quality, contributing to team mot ivation. Setting priorities is not an individual exercise for each manager, either. It turns out that a team of managers can be high - performing as well, generating real change, creating a better functioning organization beyond the boundaries of collaborating teams. It is this opportunity for change that Adjugo wants to help r ealize . Removing Command and Control may look like a disfavor to those in command, but it really is not. Micro - managing is not fun for most who are subject to it, but neither is it for most peo ple who believe it is expected from hem. Agile is more fun for the teams, but it can also be way more interesting for those who now have a management (or micro - management) function. S o , we would lik e management to start working as a multi - functional, agile team as well ... A gradual transition to a functioning whole We want to achieve flow, a gradual transition from a current situation with slow progress, heavy processes and serious overload to a leaner, more agile and in general more rewarding environment. Please feel free to contact us if you want to hear more about it. W e are glad to offer you more information and discuss how we can help you. Chris Verlinden CEO ADJUGO 0474/891.705 Bd Lambermontlaan 336 1030 BRUSSELS w ww.adjugo.com

8. 8 Create flow across the entire Val u estream Envision the future We need to run our current operations and at the same time prepare for the future. We watch what is coming to u s and need to generate ideas on how to make technology help us stay in business. We create an image of where the world is going and what place we want and can occupy. Think about sending yourself a postcard ‘from the future’, thanking yourself for the decisions you are taking, or should be taking, right now. Which one will be the decision that is most useful, that you will be most proud of? Against this background of yo ur image of the future, companies should draft their strategy and look out for disruptive technology that can be a game changer. Build a map on how to reach your destination, not the definitive map, but still one that will bring you closer. Generate ideas, collect all ideas and swiftly evaluate them. Think ‘blind auditions’, decide on the ideas that will go to the next round. Evaluate again, more thoroughly, the ideas that make it to the next round. Again, eliminate the ones that do not stand the test and l et the best ones pass. They are approved ... and then they wait until the teams are ready to start working on them. At this portfolio level, strategy is translated into initiatives. These will start when the teams have sufficient capacities. If we want flow, the number of initiatives generated needs to be limited as well, of course. Lean - Agile and SAFe SAFe® (Scaled Agile Framework) is a framework to scale agile, as the name implies. The model however integrates lean thinking, system design and agile into a c oherent whole that provides a solid base on which to build your own lean - agile transformation. One of the main principles of SAFe is to organize work into programs (called Agile Release Trains or ART’s), long - living and stable teams of self - organizing agil e teams that learn how to work together in a continuously improving way. Programs strive for a predictable and reliable production of as much business value as can be produced in a sustainable way. Agile Release Trains are self - organizing as well, with thr ee clear roles: • The release train engineer (program manager), who helps the team to run efficiently and is the scrum master of the scrum masters • The product manager, who is responsible for managing business priorities and is the scrum master of the product owners • The system architect, who is responsible for building the architectural runway, the foundation on which future products or services can be built Agile Release Trains take in initiatives that are prepared in the portfolio level, whenever they are re ady and have sufficient capacity. The ART’s work in cadence, synchronized, and produce value in the teams in sprints of two to three weeks, and on program level in Program Increments of 10 to 13 weeks. At the end of each Program Increment, the features in the Program Backlog are prioritized again and the teams establish a planning, considering t heir capacity and the dependency between the features. These are established during an intensive event, the Big Room planning, where all team members

4. 4 Traditional organization s Command and control Many companies and organizations still adhere to a model of Command and Control. The company ’ s upper management sets strategic goals, translates them into year objectives, decides on year plans and ditto budgets and allocates them to line managers and to projects. Top management decides, middle management and project manage rs translates the decisions into operational instructions, and staff and project teams perform the work. We measure performance against the budget, both for projects and for organizational units. The goal is to achieve ‘On time, on budget, on scope’, and t his is monitored carefully. The approach is a ‘push’ model. Work is pushed into the organization and onto project teams. A hierarchical approach is established and all individuals receive objectives and possibly bonuses. The company tries to achieve 100 % resource utilization and uses this as the yardstick to measure performance. The problem with the Push Model The main thing that is going wrong with the Push Model is that it implicitly relies on predictability: technology moving at a steady pace, the custo mer all in all reliable and predictable, political stability with relatively minor changes. The world we knew say twenty years ago. Internet and other technology have changed this stability . The customer has received far more power and options to change, m aking his behavior less predictable. Social Media have changed politics and unprecedented foreign meddling have caused unexpected election results. And the pace of technology change keeps accelerating. As a result, the pace at which new products and servic es need to be launched increases. As the Red Queen puts it in Alice in Wonderland: “My dear, here we must run as fast as we can, just to stay in place. And if you wish to go anywhere you must run twice as fast as that.” More is needed for innovation, unce rtainty makes prioritization more difficult. With financial means tight , the need for process improvement goes up as well. All contribute to a major increase in workload. From Push to Overload The increase in work in a traditional environment puts a lot of pressure on individuals. Traditional work organization leads to fragmentation . The increased complexity of the faster pace of change creates contradictory impulses. Middle management finds itself having to deal with year plans, strict budgets, operational goals combined with the need for process improvement and innovation, as well as that of supporting multiple projects. Priorities are hard to set , as the year plan spans several organizational units that need to collaborate . Also, programs, projects and opera tions are all competing for the same resources. The teams suffer from the massive input of work , the conflicting instructions and the lack of prioritization. The results are major pressure on middle management and on the teams. Work seems to come to a stand - still, although everybody feels stressed by the massive amount of work. Demotivation and burn - out are lurking around the corner, further reducing productivity. The gap between what is needed and what gets done widens.

9. 9 participate, as well as the main business stakeholders, to have full transparency on priorities, scope, dependencies between teams and business value to be created. Beyond Budgeting Beyond Budgeting is a movement originating in finance departments, with i ts deepest roots back into the 1970’s, but gaining more prominence at the end of the 1990’s, just before the agile movement started taking off in IT. The core ideas of Beyond Budgeting have a striking similarity to the ideas in lean - agile, in particular th eir focus on ending the Command and Control way of management rampant in traditional organizations and replacing it with more responsibility at the local level. Lean - agile, combined with Beyond Budgeting, offers a complete alternative to the traditional ap proach to management . We do try to predict the future and we do make plans. But we keep them agile, revisit the budgets every quarter, determine our priorities in our projects and process improvement every quarter. We may decide to put extra money in an in itiative that has become more promising and we can stop funding a brilliant idea that does not seem to work out. We spend less time at making a long - term prediction and more time at improving our insight as it develops. We measure our progress in terms tha t are essential to stay in business, not by comparing the execution of the plan versus the plan itself. We delegate more responsibility to local teams and branches, work more based on trust, no longer set individual goals and build on autonomous teams as t he cornerstone of our product development and running business. The lean - agile transformation as ADJUGO sees it Agilism and agilistas Working in an autonomous, agile team can be exhilar ating. Inspiring, fast - paced, intensive learning, close collaboration, achieving goals: agile at its best is a fun way of working, a far cry from the work in a command and control environment. So, people get carried away, believing the future of companies lies in creating agile structures of agile teams. And they may start re jecting other approaches. SAFe e.g. is often criticized for being ‘far too complex to be called agile’. With some reason. But t he reality is that nearly all companies will need to become more agile and will need to make a major transformation. The other realit y is that companies will need to do so gradually, slowly replacing the familiar and trusted ways by more lean and agile approaches to enter uncharted waters. H aving a very solid model is reassuri ng , when we need to tackle more complex issues as happens in large organizations. Middle management still has an important role to play In a world of self - managing, autonomous teams, it becomes somewhat unclear what role management still must a nd can play. Coaching leadership for the teams, certainl y, but what else? And then we find out: the move towards lean - agile requires more management, not less. As the proponents of Beyond Budgeting point out: after leaving behind the idea of strict budget control as the way to control costs, the work of finance people and all managers increases instead of decreasing. N ow we really need to watch costs and we can no longer assume that if we stay within the budget we are managing correctly and wisely. There no longer is a relatively simple go – no go decision for a project, after which the PMO will just monitor progress measured against the initial plan. Instead, stake holders will need to monitor real progress of the product, a n d validate the business value of the remaining work in an initiative in compari son to what new initiatives will bring. Strategic decisions and

6. 6 From push to pull: creating flow Agile teams pull work in The move to a lean - agile approach can get the work flowing again. The solution is not to do more work, but to limit the amount of work in progress. Using the lean mantra: stop starting, start finishing, individuals and team focus on fewer different work it ems at the same time. With fewer ongoing work items, they get finished faster. And start delivering value earlier. This is not just the ‘physics of flow’, though. People focusing more on fewer items achieve flow themselves, wasting less time when shifting attention. Progress itself through finished work is satisfying, removing the stress of work overload. Teams that can by themselves decide how much work they ‘pull in’ , feel more autonomy . This diminishes the r isk of burnout a nd increas es commitment. Improve value delivery by prioritization So, teams are responsible for pulling work in and for figuring out how to tackle i t . W e do n o t add wor k to increase the a mount of value deliver ed , but w e focus on the order in which the work is perform ed. The items that will generate the most value f astest , a re t aken on first. In a lean production environment, we u se the concept of Cost of Delay of features and projects: what does a w ork item cost if it is delayed? The ones with the largest Cost of Delay had better be performed sooner, items that do not cost a lot when delayed, well, they can be delayed. M anagement’ s task is no longer to assign tasks to teams and individuals, but to determine as well as possib le the priority of the work and remove all obstacles to a speedy and smooth delivery . P rioritization is an ongoing process . Fro m big up - front planning to cadence and agility Up - front planning and strict budgeting allow for the more efficient use of resources . They also give a very satisfactory feeling to the strategists in command, when all big parts fall into place. But in an en vironment with a high level of uncertainty, big up - front planning quickly loses its value. Measuring progress by comparing to the plan becomes way less attractive if that plan has made wrong assumptions about the future. The likelihood of making wrong pred ictions of course increase when the pace of change increases and the o utcome becomes less predictable at the same time. A nd a second issue is that by aiming for full utilization , the speed of delivery go es down, even dramatically when achieving near 100 % occupation. Think traffic jam here. However, big planning is deeply engrained in the DNA of most companies. This is probably clearest in the process of budgeting, where companies, most often in the fall, make their budget for the next year. The budget becomes a fixed concept, hard to move; deviation from the budget is looked upon as a serious mistake in management. Worse, the budget is translated into objectives for managers and finally for teams, possibly with bonuses attached to them. And e verything cater s to the idea that we know what the customers will do next years, that our competitors will not make a surprise move or that voters will decide against the Brexit or for the best pres idential candidate. This is an illusion, and it becomes more so every year. Instead, lean - agile focuses on speedy delivery rather than full utilization, on making progress in small steps, and on periodica lly reassessing t he results to determine the best way ahead.

2. 2 ADJUGO: Company presentation C onsultancy ADJUGO was created in 2006 and focused on IT - Governance, using standard frameworks such as COBIT, ITIL , Prince 2 and CMMi to improve the maturity and quality of IT - p rocesses. In 2015, we decid ed to connect again with agile . Chris Verlinden, CEO of Adjugo, has been one of the early ado pters of Agile and eXtreme Programming as far ago as 2003 and always enjoyed the simp licity and focus on quality. B ut Agile was hard to sell in a world focusing on offshor e developmen t . Agility has mat ured, by itself and by incorporating Lean and Lean start - up . Introducing agile and lean in business using SAFe Our consulting m ission have fast taken us beyond agility in IT - teams to the introduction of Lean - Agile and SAFe ® in larger organizations, where business meets IT, and more recently, entirely inside the regular business operations of a major customer . We base the agile transformation on SAFe ® , with elements of other schools of thought (Management 3.0, Beyond Budgeting, Lean start up ... ), to help our customers in gradually transforming from a Push - oriente d, Command and Control, strict Budgeting organization to a leaner, more agile organization focusing on fast delivery of business value, based on more autonomous teams that pull in work i nstead of having wo rk imposed on them. We begin to realize that most models of the agile transformation seem to underestimate the important role middle management must play during and after the transformation to lean and agile. A n d that is where we are focusing right now , making sure that lean and agile can make the work of man agement as well of that of the operational teams more satisfying and less stressful. Because we need to stop wasting people ’ s talents and submit them to w ork environments that lead to demotivation, stress and ultimately burn - out. In the rest of this bro c hure we describe our view on th e gradual lean - agile transformation of a traditional ‘ command and control ’ organization. ADJUGO’s training offer A DJUGO has decide d to bring a very complete training offer o f SAFe and we have organized most public training sessions for SAFe Agilist in Belgium to date. W e can add experience in implementing SAFe in Belgium to our training, making the sessions more interactive and fun. Our starship training is the two - day SAFe Agilist training, giving a comprehensive overview of the model, aimed at management le vel professional s and c onsultants. A fter the training session, participants are invited to take an on - line test that results in a certification. W e provide other training sessions as well, for the specific roles in the SAFe organization and for the management of the Portfolio layer in SAFe. In addition, we can organize the SAFe City workshop that simulates the management of a portfolio of initiatives and the prioriti zat ion. Upcoming training sessions f or SAFe Agilist in Brussels are: • May 18 – 19 • June 26 – 27 • August 29 – 30 Fees at 1.250 € include meals and certification . C heck out: www.adjugo.com/event...

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