agile business transformation

Click here to load reader

Post on 02-Nov-2014

173 views

Category:

Business

4 download

Embed Size (px)

DESCRIPTION

Agile has become mainstream for developing software. Organizations that have adopted agile have seen improvements in quality, cycle time, and customer satisfaction. Standish Group research shows that agile projects are three times more successful than traditional plan driven projects. However using Agile Development practices does not make an agile organization. Agile transformation requires focus on four key areas: 1. Agile Discovery 2. Agile Delivery 3. DevOps 4. Agile Business Change Download the recording here: http://bit.ly/1rqbugR

TRANSCRIPT

  • 1. 0 Copyright 2014 Enfocus Solutions Inc. All Rights Reserved. Title Here John Parker, CEO Enfocus Solu5ons Inc. Agile Business Transformation May 15, 2014 http://EnfocusSolutions.com
  • 2. 1 Copyright 2014 Enfocus Solutions Inc. All Rights Reserved. Agenda Agile Transforma5on Challenges Scaled Agile Framework Business and SoAware Agility Transforming the PMO Stakeholder Engagement and Collabora5on Discovery and Valida5on Business Change Management Agile PorIolio Management Agile Program Management Agile Team Management Product Managers PMOs Organiza5onal Change Managers Project Managers PorIolio Mangers Product Owners Agile Teams Audience Agile Transformation
  • 3. 2 Copyright 2014 Enfocus Solutions Inc. All Rights Reserved. John E. Parker Chief Executive Officer of Enfocus Solutions Inc. Previous Positions o Chief Visionary Officer of Enfocus Solutions Inc o EVP and CTO, MAXIMUS Inc. o Outsourced CIO for HSHS (Large Healthcare System) o EVP and Cofounder, Spectrum Consulting Group o KPMG Partner Expertise o IT Strategic Planning o Agile Development using Scrum and Kanban o Agile Portfolio and Program Management o Business Analysis o Recovering Troubled and Challenged Projects o Enterprise and Business Architecture o Business Process Improvement, Reengineering, and Management Contact: http://enfocussolutions.com [email protected]
  • 4. 3 Copyright 2014 Enfocus Solutions Inc. All Rights Reserved. Why Agile? The agile process is the universal remedy for software development project failure. The secret is the trial and error and delivery of the iterative process. Software should be built in small, iterative steps with small, focused teams. The project team delivers functionality in small bites or steppingstones. SoAware applica5ons developed through the agile process have three &mes the success rate of the tradi5onal waterfall method and a much lower percentage of &me and cost overruns. Source: Standish Chaos Report 2011
  • 5. 4 Copyright 2014 Enfocus Solutions Inc. All Rights Reserved. Ken Schwaber is a so/ware developer, product manager and industry consultant. Ken worked with Je Sutherland to formulate the ini?al versions of the Scrum development process.
  • 6. 5 Copyright 2014 Enfocus Solutions Inc. All Rights Reserved. The Scaled Agile Framework (SAFe) The Scaled Agile Framework is a proven, publicly-facing framework for applying Lean and Agile prac?ces at enterprise scale The Scaled Agile Framework is well dened in books and on the web Works well with mul5ple teams in IT organiza5ons of 50 or more people Has been scaled to hundreds of teams and thousands of people Synchronizes vision, planning, interdependencies, and delivery of many teams
  • 7. 6 Copyright 2014 Enfocus Solutions Inc. All Rights Reserved. Scaled Agile Framework Big Picture
  • 8. 7 Copyright 2014 Enfocus Solutions Inc. All Rights Reserved. So7ware Agility does not equal Business Agility
  • 9. 8 Copyright 2014 Enfocus Solutions Inc. All Rights Reserved. What is Business Agility? Agility is the ability of a business to react quickly to change. Quickly sensing problems and opportunities and Rapidly responding with Solutions that address business and customer needs By efficiently changing processes, responsibilities, rules, data, and technology, To Realize expected business and customer outcomes.
  • 10. 9 Copyright 2014 Enfocus Solutions Inc. All Rights Reserved. Business and Software Agility Agile Por>olio Management Agile Program Management Agile Team Management Stakeholder Engagement and Collabora&on Business Change Management Business Agility So7ware Agility Stories Sprints Features Releases Epics Outcomes Impacts Stakeholders Discovery and Valida&on Features
  • 11. 10 Copyright 2014 Enfocus Solutions Inc. All Rights Reserved. Transforming Project Management to Agile
  • 12. 11 Copyright 2014 Enfocus Solutions Inc. All Rights Reserved. State of PMOs: It is Time for a Change Most companies with high utilization of PMOs see materially higher IT costs while also failing to deliver projects with higher ROI or better on- time and on-budget performance. (Hackett Group Report, November 2013) Since 2008, the correlated PMO implementation failure rate is over 50% (Gartner Project Manager 2014) 50% of project management offices close within 3 years (Association for Project Management) Only a third of all projects were successfully completed on time and on budget over the past year (Standish Groups CHAOS report) 68% of stakeholders perceive their PMOs to be bureaucratic (2013 Gartner PPM Summit) Only 40% of projects met schedule, budget and quality goals (IBM Change Management Survey of 1,500 execs)
  • 13. 12 Copyright 2014 Enfocus Solutions Inc. All Rights Reserved. The Old Way The New Way Managing tasks and adhering to a rigid plan. Managing a value stream focusing on customer engagement and sa5sfac5on. Tight change management and control over amendments to the plan. An5cipa5ng change and accommoda5ng changes as business needs change Breaking down the project into phases, tasks, and steps Breaking down the project into independent components called Features that can be built and delivered quickly. Project success was determined based on whether the project was delivered on 5me and on budget. Project success is determined based on achieving desired business and customer outcomes. Focus was on managing tasks and resources. Focus is on managing collabora5on between team resources and stakeholders to achieve agreed upon objec5ves. Focus is on tracking costs, 5me, and tasks. Focus is on maximizing the delivery of business value more quickly. Transform the PMO from Bureaucracy to Key Enabler of Agile and Business Value
  • 14. 13 Copyright 2014 Enfocus Solutions Inc. All Rights Reserved. Manage Data Not Paper Collocation of Teams is very important for Agile; however collocation of business stakeholders and users is simply not practical. When agile scales, the amount of interaction between teams and other stakeholders grows exponentially creating significant challenges for organizations. Paper documentation is anti-agile; distribution and version control of paper documents is burdensome and slow. As organizations scale, they will need an automated collaboration and knowledge repository to manage the various enterprise components of Agile such as: o Portfolio and Program Backlogs o Feature discovery and validation information o Conversation between developers and users o Inspect and Adapt information o Impacts of changes in business strategy
  • 15. 14 Copyright 2014 Enfocus Solutions Inc. All Rights Reserved. Achieved a 55% ROI Increased production throughput by 26% Consolidated applications from 29 to 11 Achieved a total savings of $14 million in 9 months Business Outcomes Project Managers must focus on Delivering Business Outcomes instead of Managing Tasks. The Triple Constraints of On-Time, On-Budget, and On-Scope goes away with Agile.
  • 16. 15 Copyright 2014 Enfocus Solutions Inc. All Rights Reserved. Business and Software Agility Agile Por>olio Management Agile Program Management Agile Team Management Stakeholder Engagement and Collabora&on Business Change Management Business Agility So7ware Agility Stories Sprints Features Releases Epics Outcomes Impacts Stakeholders Discovery and Valida&on Features
  • 17. 16 Copyright 2014 Enfocus Solutions Inc. All Rights Reserved. Stakeholder Engagement and Collabora&on Lack of User Involvement is #1 Cause of Project Failure for both Waterfall and Agile Projects
  • 18. 17 Copyright 2014 Enfocus Solutions Inc. All Rights Reserved. Engaging Stakeholders In Agile, the focus is on Engaging Stakeholders rather than on Managing Stakeholders. Stakeholders are involved at the Portfolio, Program, and Team Level. Stakeholder engagement requires transparency and visibility into what is important to them. o Stakeholders need to understand why, who, what, and when. o Keep stakeholders informed on progress and major events or ceremonies. Stakeholders need to participate and be held accountable for necessary business changes. It is usually impractical to collocate stakeholders; a tool is needed to provide transparency and get engagement.
  • 19. 18 Copyright 2014 Enfocus Solutions Inc. All Rights Reserved. Stakeholder Engagement Stakeholders are usually not collocated with the Team. S5cky note boards simply do not work. Email is too slow and inecient. An automated collabora5ve tool is needed to eec5vely engage stakeholders.
  • 20. 19 Copyright 2014 Enfocus Solutions Inc. All Rights Reserved. There are three levels of backlogs with Stakeholders involved in each level. Backlogs
  • 21. 20 Copyright 2014 Enfocus Solutions Inc. All Rights Reserved. Stakeholder Managers
  • 22. 21 Copyright 2014 Enfocus Solutions Inc. All Rights Reserved. Stakeholder Engagement should be Measured and Discussed at Each Retrospective
  • 23. 22 Copyright 2014 Enfocus Solutions Inc. All Rights Reserved. Transparency Transparency Shows all work being done at the Por>olio, Program and Team Level Makes everything visible between team and among teams Coordinates agile business ac&vi&es with development team ac&vi&es Knowing all impacts signicantly reduces the risk
  • 24. 23 Copyright 2014 Enfocus Solutions Inc. All Rights Reserved. Signoffs and Approvals For Agile, it is impera5ve to move away from a tradi5onal Review and Approve process to an Inspect and Adapt process. To do this requires: Transparency Stakeholder Engagement Ecient Inspect and Adapt Methods
  • 25. 24 Copyright 2014 Enfocus Solutions Inc. All Rights Reserved. Discovery and Valida&on
  • 26. 25 Copyright 2014 Enfocus Solutions Inc. All Rights Reserved. Agile is an eec&ve delivery process! Agile is not eec&ve for discovering what to build.
  • 27. 26 Copyright 2014 Enfocus Solutions Inc. All Rights Reserved. Source: Jim Johnson, Chairman of Standish Group, quoted in 2006 in: http://www.infoq.com/articles/Interview-Johnson-Standish-CHAOS The Problem: 64% of Func&onality is Rarely or Never Used The Cause: Poor Discovery and Valida&on The Result: Higher Costs, Lower Value, Longer Cycle Times
  • 28. 27 Copyright 2014 Enfocus Solutions Inc. All Rights Reserved. So7ware PorIolio Program Team Epics Epics Feature Feature Feature Story Story Story Story Story Discovery and Validation Business Customer User Product Business Model Customer Assump5ons User Personas Conversa5on Product Vision Use Cases MVPs Buyer Personas Business Outcomes Customer Outcomes Prototypes Capability Gaps Business Processes User Assump5ons Hypothesis Assump5ons Business Case Scenarios Customer Needs Impact Analysis Conversa5on Conversa5on Conversa5on Conversa5on Conversa5on Conversa5on Conversa5on Conversa5on Conversa5on Conversa5on Conversa5on Conversa5on Conversa5on Conversa5on Conversa5on Feature
  • 29. 28 Copyright 2014 Enfocus Solutions Inc. All Rights Reserved. Business Case for Better Discovery Better Discovery will ensure business and stakeholder needs are understood and will result in better business outcomes. Better validation practices will eliminate working on Features that provide little or no value. Savings will result from more cost effective validation: using code to validate ideas is very expensive. Savings will result from capturing defects much earlier in the process. Savings will result from less rework and less development iterations. Better utilization of resources: Designers and analysts skills are more aligned to discovery than delivery. Increases velocity of delivery team through having better defined user stories and spending less time grooming the backlog. Provides efficient method to validate assumptions about the market, customers, and the business model before building the product.
  • 30. 29 Copyright 2014 Enfocus Solutions Inc. All Rights Reserved. Business Change Management
  • 31. 30 Copyright 2014 Enfocus Solutions Inc. All Rights Reserved. Identify What Business Changes Are Needed Define Impacts. Address what the needed changes will impact. What needs to change to solve the problem? People. Which people or organizations will be impacted by the project? Processes. What business processes will be impacted? Governance. What rules constrain the project? Data. What data and knowledge is needed? Technology. What IT services and technologies will be impacted? Projects. What other projects will be impacted by the project?
  • 32. 31 Copyright 2014 Enfocus Solutions Inc. All Rights Reserved. SoAware PorIolio Program Team Epics Epics Feature Feature Feature Story Story Story Story Story So7ware Delivery Value Discovery Investment Funding People Process Technology Data Rules Impact Business Change Impact Impact Impact Impact Impact Impact Impact Impact Impact Impact Impact Impact Impact Impact Impact Impact Impact Impact Impact Impact Impact Business Change Management Capacity and Conicts Task Task Task Task Task Task Task Features are Used for Managing Software Impacts are Used for Managing Business Change
  • 33. 32 Copyright 2014 Enfocus Solutions Inc. All Rights Reserved. Business Change Impacts: People Assign impacts to organiza5onal change professionals or super users within the organiza5ons. Engaging stakeholders like this can signicantly improve outcomes and decrease risk.
  • 34. 33 Copyright 2014 Enfocus Solutions Inc. All Rights Reserved. Business Change Impacts: Processes It is very important to dene and manage needed changes to business processes before star5ng on soAware development. Not doing this will result in soAware that supports an problem business process and require signicant rework to x. Assigning this responsibility to business stakeholders takes a load o of the team and helps ensure that the new solu5on addresses the To- Be process versus AS-IS workow signicantly reducing the amount of rework.
  • 35. 34 Copyright 2014 Enfocus Solutions Inc. All Rights Reserved. Agile Por>olio Management
  • 36. 35 Copyright 2014 Enfocus Solutions Inc. All Rights Reserved. Since 2008, there has been a high rate of PMO startup activity with an implementation failure rate of more than 50%. Even though program and portfolio management (PPM) is a growing area of need for many organizations, the results it delivers often don't live up to expectations. Organizations must consider moving beyond traditional IT portfolio management to align with mission critical business objectives. The focus of PPM needs to must shift to be able to adapt to changing strategies to create maximum business value for minimum cost, quickly. Enterprise Portfolio Management Offices are beginning to emerge. The key driver is the need to merge technology and business projects under the same organization. Dont start a PMO unless it focuses on demonstrable results and business value vs. process and administrative burden. Gartners View of Por>olio Management Source: Gartner Group Project Manager 2013 Eec5ve porIolio management requires managing strategy, people, processes, and technology and focuses on delivering business value, not crea5ng an addi5onal process or administra5ve burden.
  • 37. 36 Copyright 2014 Enfocus Solutions Inc. All Rights Reserved. Portfolio Management The Old Way and New Way The Old Way The New Way Focused on funding and priori5za5on of technology projects. Focuses on enabling business change through people, process, and technology. Primary emphasis is on enforcing compliance to process. Primary focus is delivering business value and becer business outcomes. Burdening the organiza5on with administra5on and process. Allowing the organiza5on to move faster. User adop5on never considered as part of porIolio management process. Extensive focus on user adop5on. Focus is tracking costs, 5me, and tasks. Focus is on maximizing the delivery of business value more quickly. Alloca5ng resources to projects Enabling business change faster using business architecture, cloud services, and selec5ve sourcing. Documen5ng the train wreck. Accountability involves direct execu5on of strategic program. Gartner Predic5on 2014: PPM Leaders Must Prepare for Extreme Transforma5on or Prepare New Resumes.
  • 38. 37 Copyright 2014 Enfocus Solutions Inc. All Rights Reserved. Procure to Pay Service Order to Cash Service Hire to Re5re Service Service Por>olio Services Suppor&ng Business Capabili&es Product Por>olio Accounts Payable Purchasing Purchase Data Warehouse Vendor Data Management Accounts Receivable Customer Rela5onship Management Order Management Sales Data Warehouse Payroll Human Resources Employee Master Data Sales Data Warehouse Storage Servers Network Database Management Security Agile Portfolio Applica&on So7ware Teams DevOps Teams
  • 39. 38 Copyright 2014 Enfocus Solutions Inc. All Rights Reserved. Budget and plans are completed eciently and on 5me. Budgets and opera5ng plans accurately es5mate nancial outcomes. Investments are directed at strategic priori5es. Business Outcomes Business Processes Develop Capital Budget (CAPEX) Develop Opera5ng Budget (OPEX) OPEX Budget Development CAPEX Budget Development Budget Review and Approval Budget Reports Budget Dashboard and Monitoring Support Services Service Components Budget Applica5on SAP ERP Interface and Integra5on BI Analy5cs Applica5on Service Desk Support Infrastructure Services (Servers, Network and Storage) Provide all the technology, informa5on and IT service support needed by nance and business unit to prepare and manage capital budgets and annual opera5ng plans Service Assets End-to-End Service Example of an IT Service Provided to the Business
  • 40. 39 Copyright 2014 Enfocus Solutions Inc. All Rights Reserved. Agile Portfolio Management Transformation PMOs must make significant changes to support an Agile Organization Old rigid bureaucratic control and governance structures must go away PPM goes from managing projects to managing value and change (Gartner) Transition from IT PMOs to Enterprise PMOs (EPMO) (Gartner) The P in PMO changes to Portfolio or Program instead of Project (Gartner) Organizational change and business analysis become key skills for the EPMO Service Portfolio Management with emphasis on delivering business capabilities becomes key strategy for EPMOs. Business Architecture will become necessary ingredient for making portfolio management decisions Big projects must go away and be broken into a set of independently delivered features (Standish Group) Lean Startup methods will be applied to portfolio management using what Gartner calls a Fail-Forward-Fast approach Transparency will be essential for tomorrows PMO
  • 41. 40 Copyright 2014 Enfocus Solutions Inc. All Rights Reserved. Agile Program Management
  • 42. 41 Copyright 2014 Enfocus Solutions Inc. All Rights Reserved. Agile Program Management 2. Facilita&ng So7ware Delivery Send Approved Features to Delivery Teams Manage Scrum of Scrums Par5cipate in Demos and Retrospec5ves Inspect and Adapt Dene NFRs Plan and manage Release Trains 3. Enabling Business Change Dene needed changes using impacts Assign impacts to accountable technical and business stakeholders Monitor stakeholder engagement Assess business and customer outcomes Inspect and Adapt 1. Discovering Business Needs Dene program objec5ves and expected outcomes Dene Features that can be delivered independently Validate Features using MVPs and other Lean Methods Priori5ze and Eliminate Features that Provide Licle or No Value Perform Roadmap Planning
  • 43. 42 Copyright 2014 Enfocus Solutions Inc. All Rights Reserved. Two Core Concepts for Successful Projects From 2013 CHAOS Manifesto Report 1. Break down projects into small components 2. Eliminate components that provide little or no value
  • 44. 43 Copyright 2014 Enfocus Solutions Inc. All Rights Reserved. Breaking Down Projects Into Small Components The Standish Group flatly state that that there is no need for large projects, and that any IT project can be broken into a series of small projects. It is important not to interpret breaking down projects into smaller projects as defining milestones, phases, critical paths, and activities. Delivery of concrete and usable results demarks a successful completed project. Small projects deliver a valuable result that is actually used to create a return on investment (ROI). The benefits of using this approach are quickly evident when the organization starts to receive value early in the project cycle. Source 2013 CHAOS Manifesto Report, Standish Group Think Big, Act Small
  • 45. 44 Copyright 2014 Enfocus Solutions Inc. All Rights Reserved. Reducing and Managing Solution Scope Standish Group Research shows that 20% of features are used regularly and 50% of features are hardly ever or never used. The gray area is about 30%, where features and functions get used sometimes or infrequently. Focusing on the 20% of the features that give you 80% of the value will maximize the investment in software development and improve overall user satisfaction. Reducing scope and not delivering 100% of the functionality is not only a valid strategy, but a prudent one. Think Big, Act Small Source 2013 CHAOS Manifesto Report, Standish Group
  • 46. 45 Copyright 2014 Enfocus Solutions Inc. All Rights Reserved. Iteration (Sprint)" Agile ReleaseTrain" is to team! is to program! as! Agile Program Management: Releases
  • 47. 46 Copyright 2014 Enfocus Solutions Inc. All Rights Reserved. Inspect and Adapt for Continuous Improvement Agile approaches are based on an empirical process a process of making decisions based on the what has actually occurred. An empirical process is very important for software projects and is used for both new product development and enhancement and upgrade of existing products. The team's ability to inspect and adapt has a major impact on a projects success or failure. In fact, some surveys show that ineffective use of retrospective is the number one reason Agile adoptions fail. Empirical control requires: o Transparency: Everyone involved on an agile project knows what is going on and how the project is progressing. o Frequent inspection: Team members and stakeholders regularly evaluate the product and process. o Adaptation: Adjustments are made quickly after a problem has been identified.
  • 48. 47 Copyright 2014 Enfocus Solutions Inc. All Rights Reserved. Agile Team Management
  • 49. 48 Copyright 2014 Enfocus Solutions Inc. All Rights Reserved. Scrum or Kanban? Scrum Kanban Kanban is a con5nuous ow process: items enter the queue and then get pulled through a series of steps in the development process. Kanban is oAen visualized on a Kanban board and each step is represented by a column. Scrum is a simple yet incredibly powerful set of principles and prac5ces that help teams deliver products in short cycles, enabling fast feedback, con5nual improvement, and rapid adapta5on to change. As the leading Agile development framework, Scrum has predominantly been used for soAware development, but it is also proving to be eec5ve in eorts far beyond.
  • 50. 49 Copyright 2014 Enfocus Solutions Inc. All Rights Reserved. DevOps Development Wants Rapid Change Measured by Amount of Valuable So/ware Delivered Opera&ons Wants Stability Over 80% of Outages are caused on Change. The Business Wants Both Features are Needed for increased revenues and growth. Outages cost the business signicant dollars
  • 51. 50 Copyright 2014 Enfocus Solutions Inc. All Rights Reserved. Enfocus Solutions Complete Support for Agile Portfolio and Program Management Stakeholder Engagement and Collaboration Provide efficient methods for Stakeholder Engagement and Collaboration Provide complete Transparency to Agile Teams and Stakeholders Discovery and Validation Define Project Vision, Objectives, Constraints, and Business Case Gain understanding of customer and their needs using Personas and Scenarios Define Customer and Business Outcomes using Objectives Breaking Down Project or Epics into Features Review and Validate and Prioritize Features Define and Manage Needed Business Changes using Impacts Mange Inspect and Adapt Activities Manage Retrospectives Inspect Features, Stories, Releases, and Impacts Use action items needed for adaptation Team Integration Define User Stories In Our Software or through Integration with backend Agile Team Tools such as JIRA. Define Transition Requirements for Release Management Define Nonfunctional Requirements for software development
  • 52. 51 Copyright 2014 Enfocus Solutions Inc. All Rights Reserved. Thank You Please provide comments what you liked or didnt like or topics for other webinars to the email below. [email protected]