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www.luxoft.com ORGANIZATIONAL CHANGES AT A CORPORATE SCALE Sergey Prokhorenko Luxoft Agile Practice

Organizational Changes at a Corporate Scale

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Page 1: Organizational Changes at a Corporate Scale

www.luxoft.com

ORGANIZATIONAL CHANGES AT A

CORPORATE SCALE

Sergey Prokhorenko

Luxoft Agile Practice

Page 2: Organizational Changes at a Corporate Scale

www.luxoft.com

About Me

Agile coach, head of Luxoft Agile Practice

Page 3: Organizational Changes at a Corporate Scale

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Top Client Problems

0% 50% 100%

Improve project visibilty

Increase productivity

Enhance ability to managechanging priorities

Accelerate product delivery

Reasons for Adopting Agile 1. PAYING FOR THE WRONG THINGS

60% of money are spent on features

which are never or rarely used by real users

2. ALWAYS LATE WITH THE THINGS WE REALLY NEED

Engineers tend to reinventing the wheel and focusing on interesting

engineering stuff instead of business priorities

3. TOO EXPENSIVE TO MAKE EVEN LITTLE CHANGES

Long change cycles due to complicated change management

procedures which consumes time and money

4. DIFFICULT TO UNDERSTAND WHERE WE ARE RIGHT NOW

Client is overburden with different reports

but have no clue of real progress in terms of working features

VersionOne® 11th State of Agile Report (2017)

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What Went Wrong?

Page 5: Organizational Changes at a Corporate Scale

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COMMON PITFALLS

Page 6: Organizational Changes at a Corporate Scale

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Perception of Agile as a Silver Bullet

Addressing product development

challenges…

Doing right things for business

Change for free

Clear progress

Cross-functional feature teams

…while following non-Agile vendor

management restrictions

Greater vendor accountability

Fixed scope

Ring-fenced change

Shared resource models

Source: Developing Modern Applications With Agile Outsourcing, Forrester Research, 2014

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Agile Is About IT Training and Coaching

Page 8: Organizational Changes at a Corporate Scale

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What “Good Scrum” Looks Like (Enterprise View)

Agile Practices

- Sprint planning meeting

- Daily stand up

- Backlog refinement

- Sprint retrospective

- Sprint review / demo

Agile technical design – ensuring that the short cycle approach does not

lead to no overarching design, and equally that there is not a large

waterfall style design process which becomes a blocker in itself

Following a Quality Scrum Process (avoid a "Cargo Cult") – effectively

breaking down large tasks, writing good quality stories, running the scrum

board, running sprints effectively, understanding the drivers behind why

we're following the Agile approach (i.e. efficiency and responding to

change)

A common understanding of the Agile Practices

Proof of continuous improvement (e.g. automated testing)

High team morale

Self organising & managing – the coach can be extracted and the team

keeps functioning

Understanding the concept of "done", and not being satisfied until that is

achieved

Strong focus on testable software, and a clear trend on the amount of

testing done automatically and within the Sprint

Strong working partnership with Product Owner to maximise business

value

Changed behaviour and mind-set to lean / Agile – not a "Cargo Cult" simply

emptily following practices

Avoidance of anti patterns

Desire to track and understand team velocity, and to use this in the

planning of future Sprints to manage Product Owner expectation, and to

show continuous improvement

Desire to share success stories (and failures) with other teams as part of a

desire to continuously improve the entire organisation

Page 9: Organizational Changes at a Corporate Scale

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“Pilot” Projects

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No Changes in Organizational Structure

Functional team managers (development managers, QA leads, BA leads etc)

Product owners from IT (BA) rather than business

PM becoming Scrum Master but still responsible for delivery

Architects

Dedicated release engineers

Development and QA testing outsourced to different vendors

Page 11: Organizational Changes at a Corporate Scale

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Rigid Contracting

Page 12: Organizational Changes at a Corporate Scale

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We Don’t Need Basics, We’re Mostly There

Page 13: Organizational Changes at a Corporate Scale

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SURVIVAL KIT

Page 14: Organizational Changes at a Corporate Scale

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Start With “Why”

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Define Transformation Vision, Strategy and Roadmap

May — Jun

FULL TRANSITION OF THE

LARGER PROJECT PORTFOLIO

• 5 Scrum teams and one

Kanban team w/ 50 total

people

• Shortened and aligned release

cycle across all teams

• Each team took delivery

ownership of the given stream

• Introduced team based KPIs

• 20 FTEs followed legacy

process in the second program

Jan – Feb

FIRST SCRUM TEAM

• Team formed of 8 FTEs

including developers,

QAs and BA

• 60+ FTEs following

legacy process

Feb — Apr

L3 SUPPORT/SMALL

CHANGES

• Kanban team of 7 people

including developers,

QAs and BA

• Full Delivery Ownership of L3

support and continuous

enhancements program

• 50+ FTEs followed

legacy process

Jun — Nov

FULL SCALE

PROGRAM

TRANSFORMATION

• 7 scrum teams and

2 Kanban teams

w/ 90+ total people

• Unified Scrum process

in both programs

• Large increase in

headcount due to

process clarity and

reliability

Page 16: Organizational Changes at a Corporate Scale

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Leadership and Executive Sponsorship

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Leadership and Executive Sponsorship (Hard Way)

Elaborate vision

Define strategy

Take accountability

Review progress

Provide feedback

Eliminate blockers

Page 18: Organizational Changes at a Corporate Scale

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Empirical Approach and Systems Thinking

Lean thinking

ToC

Kaizen

Page 19: Organizational Changes at a Corporate Scale

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Grow Structure

Page 20: Organizational Changes at a Corporate Scale

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Continue Asking “Why”

Page 21: Organizational Changes at a Corporate Scale

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THANK YOU!

[email protected]

sergeyprokhorenko