Enterprise Agility

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The ROI of Scaling AgileHow to justify your investment in terms your CFO will understand

March 2017 | Phillip Manketo | Scott Blacker

Phillip  Manketo,  MBA,  SPC,  ICP,  CSM

• SENIOR  AGILE  CONSULTANT  with  the  ELIASSEN  GROUP

• Multi-­‐faceted  agile  practitioner  with  a  proven  track  record  leveraging  agile  practices  to  consistently  deliver  exceptional  results  on  behalf  of  Fortune  500  clients,  start-­‐ups  and  Federal  Government  entities.

• Industry  expertise:  Financial  Services,  Internet,  New  Media,  Cable  &  Telecommunications,  Federal  Government.

• Agile  Community:  AgileDC 2017  (AgileDC.org)  Organizing  Board  Member,  a  role  held  for  the  last  seven  years.

Credentials:SAFe Program  ConsultantCompleted  Kanban  Coursework  IC  Agile  Certified  PractitionerCertified  Scrum  MasterMBA,  University  of  Miami,  Fl.

Enterprise  Agile  Engagements:• Fannie  Mae• Capital  One• United  States  Postal  Service• Comcast

• Agile  Adoption,  Transformation,  and  Scaling

• Agile  Health  Checks• Agile  Tool  Selection  and  

Implementation

Advisory• Executives,  organizations,  teams,• Planning,  implementation,  

oversight,  reporting• Engineering  Practices  (XP,  Lean,  

DevOps,  etc.

Coaching

• Executives,  Leaders,  Organizations

• Teams,  Product  Owners,  Scrum  Masters

• ICAgile,  SAFe,  DevOps,  and  more

Training• Agile  Coaches• SAFe  Release  Train  Engineers• Scrum  Masters,  Product  Owners• BA’s,  Developers,  Testers,  

Architects,  etc.

On  Demand  Support

“Accelerating  Business  Value  Delivery”

ü True  Agile  practice  -­‐ Built,  managed,  and  staffed  with  seasoned  Agile  experts  /thought  leaders

ü Deep  experience  helping  clients  adapt,  transform,  scale  and  succeed  with  Agile

Eliassen  Group  -­‐ Agile  Practice

• 26  year  old  privately  held  company

• $240+  Million  in  Revenue  /  Agile  Practice  ($45+  million)  

• Company  Reach  -­‐ 13  US  offices  serving  clients  in  38  states  and  abroad

• Numerous  awards  including  Inc.  Magazine  50  Best  places  to  work  2016

Scott  Blacker,  VP  Product  &  Services

Simply  Software  at  Scale  To  Gain  Strategic  Advantage

#1

Learning  Objectives

• Understand  the  role  of  the  CFO  • How  to  frame  the  scaled  agile  discussion  in  terms  your  CFO  will  understand

• How  to  measure  value,  progress,  and  ROI  along  the  way

What  Keeps  a  CFO  Up  at  Night?

“We’re  not  innovatingfast  enough  to  keep  up  

with  the  competition.  We  may  be  left  behind.”

“I  have  no  real  picture  of  execution  risks until  they  are  upon  

us”.

“Every  missed  delivery  has  downstream  ramifications  across  my  firm,  to  the  customer  and  all  the  way  to  the  P&L”.  

“The  delivery  teams  are  agile,  but  I  don’t  know  what  they’re  really  

working  on.  Is  our  strategy  connected  to  execution?”

“Our  customers  complain  about  quality being  poor,  which  not  only  hurts  customer  sat  but  also  

hurts  revenue/ROI”.  

“I  want  to  optimize  our  portfolio  and  invest  in  the  highest  ROI  opportunities  and drive

competitive  advantage,  but  it’s  hard  to  know  which  projects  we  have  the  capacity  to  

deliver”.

Role  of  the  CFO

https://www2.deloitte.com/us/en/pages/finance/articles/gx-­‐cfo-­‐role-­‐responsibilities-­‐organization-­‐steward-­‐operator-­‐catalyst-­‐strategist.html

Focus  on  improvement  and  optimization  of  cross-­‐functional  business  

execution

Ensure  timely/accurate  books,  compliance,  

optimized  value  delivery,  risk  management

Run  an  efficient  finance  org

Ensure  proper  long-­‐term  investments  and  continuous  

innovation  as  part  of  executive  management  team

Strategist    |    Catalyst

• Software  has  become  a  strategic  asset  to  virtually  every  large  organization

• Agility  has  replaced  scale  as  key  driver  of  competitive  advantage

• Strategically,  CFOs  understand  that  agility  is  key  to  long-­‐term  growth  and  viability

CFO  Wants Scaled  Agile  Enables• Market  Differentiation• Innovation• Competitive  Advantage• Revenue  &  EBITDA  Growth• Churn  Reduction

• Faster  macro-­‐level  delivery  cycles  measured  in  months,  not  quarters  and  years

• Flexibility  to  adopt  to  market  changes• Innovative  culture  • Increased  customer  responsiveness

Operator  |  Steward

• Agile  (at  the  team  level)  is  inevitable

• Teams  naturally  locally  optimize• Scaled  agile  practices  link  strategy  

to  execution• CFOs  that  don’t  embrace  scaled  

agile  risk  losing  visibility  and  alignment  with  what  the  teams  are  doing

CFO  Wants Scaled  Agile  Enables• Quality• Predictability• Alignment

• Linkages  between  work  items  from  theme  to  story

• Realistic,  flexible  planning  horizons• Constant  prioritization  at  all  levels• Risk  Mitigation

Agile’s  Key  Business  Value  Drivers

1. Reduce  Cycle  Time  from  Start  to  Finish2. Focus  on  Minimum  Viable  Increments  (MVI)  3. Reduce  the  number  of  projects  in  flight  at  

any  given  time4. Realize  the  value  of  Alignment5. Ensure  effective  governance

Small,  repeating  cycles  which  can  include  production  deployments  and  /  or  the  ability  to  bundle  (Rack  and  Stack)  “Usable  Product”  into  larger  releases.  

While  the  work  /  deliverables  are  planned  out  in  advance,  the  “Magic”  happens  when  the  customer(s)  and  Agile  Delivery  Teams  re-­‐confirm  and  deliver  the  work  as  close  to  the  actual  build  cycle  as  possible.    

1.  Reduce  Cycle  Time

IT  Organizations  and  Customers  benefit  from  the  ability  to  “Plan,  Do,  Check,  Act,  Repeat    (Learn  and  Improve)  as  they  go.

Let  us  Remember  Why  are  we  Here?    

To  deliver  high  quality  and  timely  products  and  services  to  our  customers!      To  make  a  profit  to  fuel  our  company!

Inc.  1

Design

Develop

Test

Deploy

Inc.  2

Design

Develop

Test

Deploy

Inc.  3

Design

Develop

Test

Deploy

Inc.  x

Design

Develop

Test

Deploy

Usable  Product Usable  Product

Usable  Product

Usable  Product

Usable  Product

Usable  Product

Usable  Product

Usable  Product

Usable  Product

Usable  Product

$

$ $ $

$ $ $ $ $ $

$ $ $ $ $ $ $ $

Small,  repeating  cycles  which  can  include  production  deployments  and  /  or  the  ability  to  bundle  (Rack  and  Stack)  “Usable  Product”  into  larger  releases.  

While  the  work  /  deliverables  are  planned  out  in  advance,  the  “Magic”  happens  when  the  customer(s)  and  Agile  Delivery  Teams  re-­‐confirm  and  deliver  the  work  as  close  to  the  actual  build  cycle  as  possible.    

Inc.  1

Design

Develop

Test

Deploy

Inc.  2

Design

Develop

Test

Deploy

Inc.  3

Design

Develop

Test

Deploy

Inc.  x

Design

Develop

Test

Deploy

Reduce  Cycle  Time

Usable  Product Usable  Product

Usable  Product

Usable  Product

Usable  Product

Usable  Product

Usable  Product

Usable  Product

Usable  Product

Usable  Product

IT  Organizations  and  Customers  benefit  from  the  ability  to  “Plan,  Do,  Check,  Act,  Repeat    (Learn  and  Improve)  as  they  go.

Let  us  Remember  Why  are  we  Here?    

To  deliver  high  quality  and  timely  products  and  services  to  our  customers!      To  make  a  profit  to  fuel  our  company!

$

$ $ $

$ $ $ $ $ $

$ $ $ $ $ $ $ $

Drive  Predictability

Track  Cumulative  FlowMinimize  Cycle  Time

2.  Focus  on  MVI

Focus  on  MVI

2 4 61 3 5 7 9 11 138 10 12 14 15 1716 18

months

$0 $300K $600K $900K

MVI  1 MVI  2 MVI  3

60  %  of  value

40  %  of  value

2 4 61 3 5 7 9 11 138 10 12 14 15 1716 18

months

$0 $180K $480K

MVI  1

MVI  2

Track  Value  Delivery Earned  Value  Management

Drillable  Roadmaps

3.  Reduce  Work  in  Progress

2 4 61 3 5 7 9 11 138 10 12 14 15 1716 18months

Project  F

Project  E

Project  D

Project  B

Project  C

Project  A

2 4 61 3 5 7 9 11 138 10 12 14 15 1716 18

Prioritize  and  Match  Demand  to  Capacity

Project  D

Project  A

$0 $600K $1.2M

Project  F

$2.4M $3.6M

Project  E

Project  C

Project  B

Receive  an  extra  $3.6M

months

2 4 61 3 5 7 9 11 138 10 12 14 15 1716 18

Prioritize  and  Match  Demand  to  Capacity

Project  D

Project  A

$0 $600K $1.2M

Project  F

$2.4M $3.6M

Project  E

Project  C

Project  B

Receive  an  extra  $3.6M

months

Reduce  Work  in  Process Manage  Dependency  Risk

Visualize  WIP  Across  all  Levels

4.  Align  Strategy  to  Execution

• Cost  of  working  on  the  wrong  project• Cost  of  over-­‐investing  in  projects  where  MVP  has  already  been  met

• What  if  20%  of  your  development  effort  isn’t  aligned  to  your  top  corporate  priorities?• Pet  projects• Low  priority  technical  debt• Last  year’s  priorities

4.  Align  Strategy  to  Execution

Align  Strategy  to  ExecutionMatch  Investments  to  Actual  Spend

Validate  Progress

Agile  Governance  

• Traceability• CapEx /  OpEx• Regulation– HIPA– Dodd  Frank– PCI  DSS– SOX  Compliance

Agile  Governance  

• SOX  Compliance• Traceability• CapEx /  OpEx

Measure  CapEx &  OpExAudit  &  Trace  Work

Track  Time  

The  “Hard ROI”  of  Enterprise  Agility

CFO  Profile  /  Wants Scaled  Agile  Enables Empirical  Evidence

Strategist  /  Catalyst • Market  

Differentiation• Innovation• Competitive  

Advantage

• Faster  macro-­‐level  delivery  cycles  measured  in  months,  not  quarters  and  years

• Flexibility  to  adopt  to  market  changes

• Innovative  culture• Revenue  &  EBITDA  growth  • Churn  reduction

• Cycle  Time  Reduction• Cumulative  Flow• Increasing  

Predictability• Steady  Value  Delivery• Earned  Value• Validated  Roadmaps• WIP  Reduction• Dependency  

Reduction• Match  Investment  to  

Actuals• Govern  Process

Ope

rator  /

 Steward • Quality

• Predictability• Alignment

• Linkages  between  work  items  from  theme  to  story

• Realistic,  flexible  planning  horizons

• Constant  prioritization  at  all  levels

• Risk  Mitigation

Questions?

Thank you for attending today’s webinar!

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