Linking Agile Strategy to ExecutionGail Ferreira

Agile Project Management

@LeanAgilist@DrGail

Outline

1. Background2. Strategy Planning Tools (Hoshin X, Balanced

Scorecard)3. The Role of Culture in Strategy Planning 4. Case Study5. Wrap Up

Lean Values using Agile practices

Capacity Planning (Queuing Theory)

Enterprise Backlogs, Product Backlogs, Prioritization based Biz Value, Release Planning,

Pull (Kanban) Prioritized backlog, Kanban (Scrum board) tracking/status, Feature focused, User Scenarios to Stories, Personas, Iterative and Incremental, User Acceptance Testing, Sprint Goals, Sprint Planning (only 1-2 iterations),

Takt Time (customer to customer)

Backlog to Production measurement

Single Piece Flow Small stories, feature based/slicing and swarming, Iterative and Incremental

Waste Elimination Only develop stories that are actionable, only do what’s absolutely necessary, simplicity in all things, automation, excellence in engineering,

Lean Agile/Scrum/XP

Standardization Standard dev practices, framework usage, communications model

Value Threads Story Mapping from Roadmap to Release to MMF to Epic to Story

Automation Automated testing, Continuous Integration, Code Health, Easy Deploy

Line Stop (Jidoka, Poka Yoke, Andon)

Refactor, Reuse, Big Visuals, Iterate, Incremental

Fail Fast Iterate, Inspect and Adapt, Retrospectives

No defects No defects, Definition of Done, Test Driven Development, Refactor, Shippable code

Go See Yourself Customer close by, Prototypes, Iterative and Incremental, Early Deploy

Remove Waste Customer close, decisions at lowest level, good estimation, actionable user stories, no gold-plating, team instead of cowboy, remove needless metrics, automation of almost all testing, no over-the-wall, biz/IT combined teams, simplify governance, daily stand-ups

Workload Leveling, Concurrent Eng.

Small stories, slicing and swarming, cross-functional team, daily stand-ups

Quick Changeover Cross-functional team, simple and repeatable practices, no individual Code ownership, consistent build and deploy, team rotations, daily stand-ups

Automation Automated test, integration, build, deploy tools, andon, communication

Orthogonal Arrays OATS Pairing with Dev and QA, Automation

Increased accessibility

to Value

Efficiency & Capability,

Speed

Cost

Quality

Customer Value

Value Stream

Flow

Customer Pull

Perfection

Lean Principles

Lean Tool

s

Reduce Waste

+ Six Sigma

Optimaluse of

Resources

Cycle Time

“Lean” is a systematic, continuous improvement approach that focuses on

eliminating waste from your processes.

Kaizen

“Change for the Good”

Lean + Kaizen + Agile =Organization as a flow ….

Finding Your True North

• Related to company culture Assets, know-how, strengths

• Customers you serve (or want to serve)

• Market, trends, developments• What words describe you?

Your business?

Defining Value and Vision- Hoshin Kanri

Hoshin Kanri

Hoshin Kanri

Hoshin Kanri

Hoshin Kanri

Improve Margin by 5% points by 4Q: Increase of $250 k

Hoshin Kanri

Improve Margin by 5% points by 4Q, Increase of $250k.

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Key Agile Metrics – Using IT Balanced ScorecardBalanced Scorecard Strategic Objectives Performance Measures

Financial Compliance Improve Budget Performance 1. Time to Value2. Cost of Value3. Earned value / release

Customer Value Increase Customer Satisfaction 1. Cycle time.2. Customer Satisfaction ratings.

Processes Project Delivery 1. Velocity2. Avg project cycle time 3. Schedule performance index

Decrease Defects 1. Defects 2. Unit Test Coverage3. System Test Coverage4. UAT Defects Found5. Running tested features

Learning and Growth Enable Agile Transformation 1. Increase Agile Utilization.2. Build community of practice.

Reproducibility: Balanced Scorecard/KPIs

Reproducibility: Balanced Scorecard/KPIsValue Goal IT Goal Measure Lead/ Lag Audience Range Frequency Target Grade

Optimize Capacity and Cost

Increase accuracy of estimates

WorkdriverEstimate Variance

Lag Org 5-10% YTD YTD, Monthly > 60% A

Root Cause Pareto

Lead Team Iteration Varies F

On Time Project Delivery

Schedule Variance

Lag Org 85% +/- 5 days

YTD, Monthly >60% B

Velocity Lead Program <10% Variance

Iteration, Release

<5% Variance

B

Decrease Cost through Increased Quality

Decrease Production Defects

Audit Compliance

Increase Margin through frequent delivery

Increase Intent Throughput

EXAMPLE

SCORECARDBalanced Scorecard

FinancialCompliance

Customer Value

Automated Test Results

CodeQuality

Customer Satisfaction

Learning & Growth

Strategic X Matrix Example

Changing Culture Aligns Business and IT

Strategic Change Management (Business) IT Change Management

Organization Change Management (People Side)

Organization Level

Group Level

Individual Level

What Drives Culture?

Case Study: Global Physician Polling Application – Value Stream Map

Case Study: Global Physician Polling Application – Value Stream Map

• Strategy Execution has been around a long time….time for a change

• We can adopt Lean + Agile best practices from software development for strategy execution for non software projects...with refined frameworks, proven methods & tools

• There needs to be a top driven culture for Lean Agile Strategy Execution: It is everyone’s job

Conclusion