View from the Executive Suite, MN-PMI May 2014

View from the Executive Suite

What, you want me to become involved?

Start Building Code

Focus on ValueSee progress from a business perspectiveRedirect teams when

needed

Deliver ValueShip on market cadenceCapture value frequentlyReveal obstructions early

Optimize ValueMake excellent product

decisionsEliminate handoffs

Speed decision making

Optimize for Systems

Cross-pollinate perspectivesStimulate innovation

Optimize value stream

Team culture shift

Team skills shift

Organization structure

shift

Organization culture shift

50%

35%

5%

Very few

© James Shore and Diana Larsen

3

Agile Value Curve

Strategies• Adaptive• Evolutionary• Collaborative• Just-in-Time• Plan

Where is the right cut-off point?

Time (iterations)

Mon

ey

Value to Cost Curve

Value

Cost

AGILE METHODOLOGIES

Look, I am calling it “agile” – isn’t that enough?

What Flavor of Agile?

• Scrum• Crystal Clear• Extreme Programming (XP)• Adaptive Software Development• Feature Driven Development• Dynamic Systems Development Method

(DSDM)• Lean Software Development

Scrum

• Primarily a project management method– Project planning– Release planning– User Stories– Daily stand-up– Story points– Velocity

Ken Schwaber and Mike

Beedle

EstimatingAs a user I need to blah blah so that blah

4

As a user I need to blah blah so that blah

2

As a user I need to blah blah so that blah

4

As a user I need to blah blah so that blah

8

As a user I need to blah blah so that blah

1

As a user I need to blah blah so that blah

2

As a user I need to blah blah so that blah

4

As a user I need to blah blah so that blah

8

As a user I need to blah blah so that blah

8

As a user I need to blah blah so that blah

1

As a user I need to blah blah so that blah

2

As a user I need to blah blah so that blah

2

Universe of work =

46 points

Team velocity=

8 points

POIN

TS

TIME

Extreme Programming (XP)

• Primarily a developer-centric approach– Test Driven Development (TDD)– Unit tests– Pairing– Continuous Integration (CI)– Refactoring

Kent Beck

“Continuous Integration is a software development practice where members of a team integrate their work frequently, usually each person integrates at least daily - leading to multiple integrations per day. Each integration is verified by an automated build (including test) to detect integration errors as quickly as possible. Many teams find that this approach leads to significantly reduced integration problems and allows a team to develop cohesive software more rapidly.”

http://www.martinfowler.com/articles/continuousIntegration.html

Crystal Clear

• Focuses on people, not methods or artifacts– Teams of 6 to 8– Co-location– Reflective improvement– Team safety– Singular focus

Alistair Cockburn

Singular Focus..or “Focus and Finish”

Value realization

Lean Software Development

• Optimize the whole• Eliminate waste• Build quality in• Learn constantly• Deliver fast• Engage everybody• Keep getting better

Mary Poppendieck

Optimize the Whole

Requirements Development Testing

As an online banking customer, I want to be able to monitor my daily balance so that I never over-spend my account.

2

Training

Project kick-off

Release planning

Iteration planning

Daily stand-up

Review / demo

Retrospective

Short feedback loops

Inspect and adapt

Collaboration and teamwork

Deliver high-value, high-quality working software quickly and frequently

User stories

Task cards

Iterations

Story boardBurn chart

Planning poker

Pairing

Unit tests

Continuous

integration

Grooming

the backlog

Done-done-done

Participate

Fundamentals

Ceremonies

Techniques

So What?

Co-location

TDD

Goal

How Important is Health (Being)?• “Organizations that focused on performance AND health

simultaneously • were nearly twice as successful as those that focused on

health alone, • and nearly three times as successful as those that focused

on performance alone.”

Beyond Performance: How Great Organizations Build Ultimate Competitive Advantage, Scott Keller & Colin Price (McKinsey & Co.)

Execution Levers

The Standish GroupCHAOS Manifesto

©2011 ThoughtWorks, Inc.

Do Less (But Get More)

19

Do the simplest

thing possible that delights the customer

+ Throughput

+ Innovation

+ Value

+ Quality

Span PlanningFunctio

nEpic

Story

Function

Function

Epic Epic Epic

Story

Story

Story

Story

Story

Story

Story

Story

Story

Story

Story

Story

Story

Time

Necessity

MM

F

Execution Levers

Iron Triangle

Cost

Schedule Scope

Speed to Value: The Agile Triangle

23

External Quality(Value, Releasable Product)

Internal Quality(Reliable, Adaptable Product)

Constraints(cost, schedule, scope)

Current and Future Quality

Robust “done”

Weak “done”

Technical debt

Appropriate Quality

Pizza Company – “many of our customers can barely read…”

Medical device company – “Our software truly is mission critical to our patients…”

Execution Levers

Scale What is measured?

MeterHow it will be measured?

BenchmarkSituation as it stands now

ConstraintMinimum acceptable value

Target Desired result

Tom Gilb, Competitive Engineering

Success Metrics

Identify the metrics defining when the project is a success

Value Calculation Framework

Value Cost

Portfolio Financial Business Case (NPV/IRR) Portfolio T-Shirt Sizing

Project Same as aboveInception - Revised Cost Estimate

Iterative Development - Monthly Forecast

Capability Decision Making Sweet SpotWhere we want to start/continue to make better informed

Value Engineering Decisions

ROI = Value/CostFeature

StoryMoSCoW or other prioritization

methodStory Points (3,5,8)

Value Cost

Portfolio Financial Business Case (NPV/IRR) Portfolio T-Shirt Sizing

Project Same as aboveInception - Revised Cost Estimate

Iterative Development - Monthly Forecast

Capability Decision Making Sweet SpotWhere we want to start/continue to make better informed

Value Engineering Decisions

ROI = Value/CostFeature

StoryMoSCoW or other prioritization

methodStory Points (3,5,8)

Top Down –Allocation of

Value

Bottoms Up –Calculation of

Cost

We need to understand both Value and Cost at the Capability/Feature level.

Source: Pat Reed

Features with Value Points

As a sales associate, the ability to calculate the total amount of the sale.

C-5

As a sales executive, the ability to view all sales by product type, geographic region, and sales associate. C-8

As a sales supervisor, the ability to Verify the adequacy of the Customer’s Credit Rating.

C-3V-13

V-11

V-2

Feature Points are a calculation of cost. Value Points are an allocation of revenue.

If we do not measure both the cost and the value, the entire project can cost us more than it is worth.

Measuring Value Against Iterations

When to finish?

This is the art of leadership – and the agile approach gives us the option to finish anytime we see “enough” value.

What is your definition of enough?

We could finish here, or here, but never here

Measuring Value Against Iterations

Execution Levers

Build Capability

©2011 ThoughtWorks, Inc. 33

People Technology Process Culture

©2011 ThoughtWorks, Inc.

Engage/Inspire

Daniel Pink, Drive: The Surprising Truth about What Motivates Us

34

35

Create an Innovative Team Culture

©2010 Jim Highsmith

TeamEngagement

Autonomy

Empowerment

Self-organizing

Delegation

DecisionFraming

Leadership

Peer-to-Peer

SO WHAT GETS IN OUR WAY?Executive Leadership in the Agile Enterprise

Culture – “how we get things done”

AgileProjectTeam

Indicative Team Composition

Product OwnerArchitectTech Lead

Developer

Tester

IM

BusinessAnalyst

UX Designer

Project Owner / Sponsor

Database Administrator

Infrastructure Delivery Mgr.

Operations, Integration & Support

Program Manager

CoreTeam

Security Architect

Other Business Representatives

ExtendedTeam

Coach

Project Stakeholder Board PM

Architects, Process Specialists and SMEs

Team ratios

One Analyst One TesterTwo Develop Pairs

Geography

Technology

Offshore / Near Shore

Communicate!

Information Radiators

1 2 3 4 5 6 7 8 9 100

50

100

150

200

250

ScopeDone

Effort

Project Burn-Up

Scope

Velocity

Running Tested Features

Iterations

Num

ber o

f run

ning

te

sted

feat

ures

©2011 ThoughtWorks, Inc.

Goals of Adaptive Leaders

49

Envision a Responsive Enterprise

Deliver a Continuous Stream of Value

Create an Innovative Culture

Why Agile?

Be Agile

Do Agile

Portfolio Agility