ADJUGO Lean-Agile transformation: comparing agile models at scale

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Based on what companies expect from lean and agile, we have compared the different agile models at scale.

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27.

22. Portfolio Kanban

24. Portfolio layer in SAFe

35. Decentralize decision making

45. SAFe is the leading scaled agile framework

17. Strategic themes fund valuestreams

18. Focus on value and prioritization

30. Do not build what is not used

10. Scrum facilitates continuous development

50. Spotify Spotify plays down the role of Scrum Master (team self - organizing), but calls for an Agile coach instead

38. Compare results to competitors (significant KPI’s)

13. Traditional walls of confusion Business Development Operations

52. Spotify caveats Not a model, explicitly stated Developed in specific circumstances Companies want to adopt the Spotify model in order to become more like Spotify

49. What is SAFe Freely available Best practices of lean - agile product development at scale (> 50 people) In a model ...

2. Why do companies move to agile Source: VersionOne 12 th Annual State of Agile Report (2018) The main business reasons

20. SAFe : Prioritization of backlogs Portfolio Backlog Program Backlog Team Backlog Stories Feature Team’s part of a Feature / Enabler

48. SAFe: Scaled Agile Framework Agile teams work together in lean product development constrained by system thinking Scaled (Lean) - agile Framework

6. Do not look at the people working, look at the progress “Organizations with slack time are faster than organizations where the goal is to keep people busy all the time.” Henrik Kniberg

28. Adaptive periodic planning Adaptive planning Periodic planning Agile team Scrum master

7. Process of new product delivery Once a year 1 – 4 per year Slows everything down? Business case

26. From fixed to flexible, responsive scope Responsive scope Product backlog Product demo’s Product owner

1. Lean - agile transformation : comparing models for agile at scale Chris Verlinden cverlinden@adjugo.com +32 474 891 705

25. Ability to react to changes in priority Upfront central decision Project scope Project budget Project manager

53. SAFe provides a solution for these topics Move from Command and Control to decentralized decision making Replace yearly budget cycle with a more flexible system Make business and IT work together to create value for the customer Make agile work at corporate level instead of just team level Integrate development and operations

47. Scaling agile • SAFe • LeSS Huge • DaD • Spotify Large scale (> 50 people):

14. Building alignment is a critical goal • Different groups in the organization have different goals and direction • The lack of alignment means their different efforts cancel each other out • This creates a feeling of constant work with little or no progress

31. Focus on value, not on cost Business case Keep alternatives open Do not build the useless parts Time to market matters

34. So what are some of the challenges here Move from Command and Control to decentralized decision making Replace yearly budget cycle with a more flexible system Make business and IT work together to create value for the customer Make agile work at corporate level instead of just team level Integrate development and operations

29. Increase productivity → more value per effort and unit time Business case Single point solution Fixed scope Business case time independent

46. Scaling agile • Nexus • Scrum of Scrums • LeSS (Large Scale Scrum) Small scale (up to 8 teams):

3. Top three priorities 0 10 20 30 40 50 60 70 80 Faster delivery Adapt priority Increase productivity Main drivers

32. Be more productive without working harder People, not resources Stable teams Limit Work in Progress Do not waste talent

41. Follow the plan over adapt to reality Plan deviations are result of poor management and execution On Budget On Scope On Time Nobody got fired over following a plan and staying within budget

15. SAFe DevOps Dev Ops Maximum speed Maximum stability Development Operations Business Security Architecture Compliance ...

51. SAFe caveats More revolutionary than it looks 01 Role for management but important changes Managers try to map their role on the SAFe - model 02 It is still a big transformation 03

21. Examine ideas in a continuous Kanban flow Ideas examined and approved in Portfolio process Teams are funded based on strategy Teams are long - living and pull work in as it arrives Agile teams deliver in iterations Integrate DevOps and continuous deployment

42. Budget thinking leads to resource utilization maximization Financial thinking: best result when everybody 100 % active 100 % resource utilization leads to slower flow Watch the baton, not the runners Fast delivery has value

16. Fund development capacity, not projects Idea waiting to be explored and become project proposal Teams are funded based on strategy Teams are long - living and pull work in as it arrives Agile teams deliver in iterations Integrate DevOps and continuous deployment

4. 0 10 20 30 40 50 60 70 80 Faster delivery Adapt priority Increase productivity Reduce cost Main drivers Cost ... or value creation? Value creation

33. Top three priorities LEAN AGILE LEAN - AGILE 0 10 20 30 40 50 60 70 80 Faster delivery Adapt priority Increase productivity Main drivers

43. Value creation 0 0,5 1 1,5 2 2,5 3 3,5 4 4,5 Fixed scope Agile scope Value generated per effort Very high High Medium Low 90 % of value for 75 % effort 20 % more productive

5. Top three priorities LEAN AGILE LEAN - AGILE 0 10 20 30 40 50 60 70 80 Faster delivery Adapt priority Productivity Main drivers and results Expected Result

11. Maintain the teams between projects Idea waiting to be explored and become project proposal Project proposals waiting for budget cycle (often once per year) Teams are long - living and take up work as it arrives Agile teams deliver in iterations Tested programs wait for deployment into production

12. DevOps and frequent deployment eliminate more waiting Idea waiting to be explored and become project proposal Project proposals waiting for budget cycle (often once per year) Teams are long - living and take up work as it arrives Agile teams deliver in iterations Integrate DevOps and continuous deployment

19. Focus on value and prioritization 0 0,5 1 1,5 2 2,5 3 3,5 4 4,5 Fixed scope Agile scope Value generated per effort Very high High Medium Low 90 % of value for 75 % effort 20 % more productive

23. Continuous and end to end flow increases speed of value creation Strategic themes translated into priorities Ideas examined and approved in Portfolio process Teams are funded based on strategy Teams are long - living and pull work in as it arrives Agile teams deliver in iterations Integrate DevOps and continuous deployment Scope of SAFe Lean Portfolio Management

8. Product development in projects slows down by waiting Idea waiting to be explored and become project proposal Project proposals waiting for budget cycle (often once per year) Approved projects wait for project manager and team Waterfall: • Functional analysis waits for approval by ‘business’ • Technical design waits for peer review and approval • Programs wait for testers Tested programs wait for deployment into production

9. Product development in agile projects still waits a lot Idea waiting to be explored and become project proposal Project proposals waiting for budget cycle (often once per year) Approved projects wait for project manager to be assigned and team assembled Agile project: • Team delivers in iterations • Waiting times largely eliminated Tested programs wait for deployment into production

37. Beyond budgeting principles of Leadership Organisation - Cultivate a strong sense of belonging and organise around accountable teams; avoid hierarchical control and bureaucracy Autonomy - Trust people with freedom to act; don’t punish everyone if someone should abuse it Customers - Connect everyone’s work with customer needs; avoid conflicts of interest

36. Beyond budgeting principles of Leadership Purpose - Engage and inspire people around bold and noble causes; not around short - term financial targets Values - Govern through shared values and sound judgement; not through detailed rules and regulations Transparency - Make information open for self - regulation, innovation, learning and control; don’t restrict it

39. Traditional budgeting Detailed upfront (financial) projections and business plans Use this year or lose next year Rigidity : budgets are hard to change Detailed upfront (financial) projections and business plans Often complex: one project touching many cost centers

44. We focus on cost far more than on creation of value IT used to be about ‘cost reduction’ (less administrative work) But is now part of value creation And flexible IT opens new markets (Google → self - driving cars) IT plays a major role now in company valuestreams Budget negotiations made it worse Companies offering fixed price make money on change requests We never were very good at estimating cost of projects Customer has far more information Major influence of social media The customer has become far less predictable

40. Planning up front in a fast changing world Reality has a way of surprising us Plans are useless but planning is essential ( Eisenhower ) The farther away , the less certain future is Budget is more detailed than what we know about the future We cannot make accurate plan 15 months ahead

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