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Achieving Faster Realization of Business Value
Business Driven Software Development
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STAKEHOLDER
STAKEHOLDER
PRODUCT MANAGER
Defining our work
STAKEHOLDER
Implementation
PRODUCT OWNER
Business Backlog
Program Backlog
Team Backlogs
Integration Ops
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@AlShalloway
CEO, Founder
Co-founder of Lean-Systems SocietyCo-founder Lean-Kanban University Contributor to SAFe
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Lean-Agile Enterprise
Business
Manage mentTeam
Lean ManagementProject Management
technicaltechnical
Lean for ExecutivesProduct Portfolio Management
Business Product OwnerProduct Owner
Onsite SPC Leading SAFe®Agile ArchitectureProduct Manager/PO
Leanban / Kanban / Scrum ATDD / TDD / Design Patterns
ASSESSMENTSCONSULTING
TRAININGCOACHING
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What is Agile?What is Business Agility?
ScrumDisciplined Agile
Delivery
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Agilea set of values and principles
building value for the businessthat focuses on development teams iteratively
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Business Agilityfocuses on value realized by having the
business identify, prioritize and sequencethe work to be done and allocate it
appropriately to the development teams
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DEFINITIONThe realization of the highest business value in a shorter amount of time, predictably, sustainably, and with high quality.
By working in small delivery increments we continuously adjust to what is needed – enabling change to direction at low cost.
Goal and Benefit of Business Agility
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VALUE must be defined by the business stakeholders and is unique to the business.This definition is the basis for business initiatives.
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Delivering incrementally is not a reason to deliver less. It is a reason to deliver sooner.
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TABLE WORKWhat Are The Value Curves for:
1 team of 9 people, 3 Projects each about 1 month long.Exercise 1: do projects in sequenceExercise 2: split projects up amongst team members having 3 people work on each projectExercise 3: have entire team work on all three projects at onceCreate a value by time graph for each case
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time
valu
e
Serial
time
valu
e
A
B
C
Parallel 1 Team
DEBRIEF
A
B
C
time
valu
e
Parallel 3 Teams
A
B
C
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Business Evolution vs. System Evolution
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Evolving the System
Valu
e de
liver
ed
Time
Requirements completed
Data layer completed
Business layer completed
UIcompleted
Integration completed
%Design completed
`
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Evolving the SystemVa
lue
deliv
ered
Time
Integration completed
Requirements completed
Data layer completed
UI completed
Design completed
Business layer completed
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Evolving the System
Valu
e de
liver
ed
Time
Integration completed
Requirements completed
Data layer completed
UI completed
Design completed
Business layer completed
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Value If We’ve Built The Wrong ThingVa
lue
deliv
ered
Time
Integration completed
Requirements completed
Data layer completed
UI completed
Design completed
Business layer completed
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Evolving the Businessvalue
Valu
e de
liver
ed
Time
Value delivered
Value delivered
Value delivered
Value delivered
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Evolving the Businessvalue
risk
Valu
e de
liver
ed
Time
Value delivered
Value delivered
Value delivered
Value delivered
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Value If We’ve Built the Wrong Thing
Valu
e de
liver
ed
Time
Value delivered
Value delivered
Value delivered
Value delivered
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incrementally realizing Business Value evolving the system
risk
value
valuerisk
Time Time
What risks do these approaches lower?
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incrementally realizing Business Value evolving the system
risk
value
valuerisk
Time Time
What risks do these approaches lower?
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Often reducing batch size is all it takes to bring a system back into control
Eli Goldratt
smaller vs bigger chunks
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Enterprise Agility
Enterprise Agility
BusinessBusiness
Management
ManagementTeamTeam
technicaltechnical
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BUSINESS AGILITYBUSINESS INCREMENTSPRIORITY AND SEQUENCERELEASE PLANNING
BUSINESS AGILITYBUSINESS INCREMENTSPRIORITY AND SEQUENCERELEASE PLANNING
Business
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theBUSINESS
SCOPE,owns
VALUE,and
and only the Business can start and stop work!
TIMELINE
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Summary We want to achieve business agility Smaller incremental releases
• Realize value sooner• Have less risk• Enable us to learn faster
We must avoid the ‘getting while the getting is good’ phenomenon Business must lead based on values to achieve
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The Minimum Viable ProductGeared towards startups.First time a product/service is released.Usually built by a small team that can pivot.What do you do when:• You are an established company?• It is an enhancement to an existing product/service?• The teams required to build it are not aligned?
Mark Denne and Jane Cleland-Huang Software by Numbers
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First Release
InvestmentPeriod
PaybackPeriod
ProfitPeriod
Breakeven
Cash
flow
Time
Mark Denne and Jane Cleland-Huang Software by Numbers
Economics of Responsiveness
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First Release
Invest-ment
PeriodProfitPeriod
Pay-back
Period
Cash
flow
Time
Release 1 Net Return
Staged Releases
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ProfitPeriod
SecondRelease
Invest-ment
Period
Pay-back
Period
Release 2 Net Return
Cash
flow
Time
Release 1 Net Return
Staged Releases
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ProfitPeriod
Investment
Invest-ment
Period
Pay-back
Period
BreakevenPoint
Total Return
Cash
flow
Time
Staged Releases
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Cash
flow Breakeven
SingleRelease
First Release
Time
Staged Releases
Requires a focus on sustainability of realizing value by attending to architectural roadmap of product line
Increased Profit
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UX
Client
Server
DB schema
C
System Evolution vs. Business Evolution
Iterative = Start with what we know, implement some, show the customer, adjustIncremental= Feature Driven ... Value in short cycles ... Slices vs. Layers
BIG Batch
11
small Incremental
VALUE2 3
MORE BusinessVALUE ... OR DONE
C
UX
Client
Server
DB schema
4 ... 50
Iterative Business Slices
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DEFINITIONThe minimum amount of business value that can be built, deployed and consumed that makes sense from a business perspective
Minimum Business Increment (MBI)
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An MBI is not a reason to deliver less. It is a reason to deliver sooner.
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If you quantify one thing, quantify cost of delay.
Don Reinertsen
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The Business wants toSpecify what is most important at any given point in timeLearn from what is already implemented Learn from changing environmentUpdate and reprioritize requirements
Business Agility
Do not build what you do
not need!
The Business may know what is valuable but in the beginning they may not know or understand everything involved in achieving it
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Value CriteriaImprove Operations Increase capacity for handling
transactionsCustomer Satisfaction Shorten resolution timeReduce Cost Reduce manual processing cost
(headcount)
SynopsisCustomer transactions/requests/issues/problems are handled by process associates in the customer service area. The volume of transactions which need to be resolved on a daily basis is nearing the capacity of what can be handled within a 24 hour period; in addition, resolution time is longer due to the manual effort involved in resolving the problem.
The company is committed to investing in technology which would automate (no touch) current manual processes, handle more requests in a shorter amount of time, with a reduced number of process associates.
InvestmentBudget $20MPayback / ROI 1-3 years
Program: Straight Through Processing
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Setup Plan
Ent. Data
Workflow
Auto. STP
Business Backlog for STPProgram: No touch STP
High Low
Setup Plan Ent. Data Workflow Auto. STP
Bus Inc
Bus Inc
Bus Inc
Bus Inc
Bus Inc…
9 months
80% 10% 10%
6 months!
4 months
1 month of a dev team vs.
realizing value 3 months sooner!
Business Evolution
System Evolution
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Why This WorkedAble to validate architecture soonerIf a 7 month project is increased by 50% it will take more than 50% longer to build. (100->150)Correspondingly, if a project is decreased by 33% IT will take less than 2/3 of the time (150->100)
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Lean Principle
Descope as soon as possible
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The Iron Triangle
Scope(fixed)
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Rethinking the Iron Triangle With Agile
Scope(fixed)
Time(fixed)
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Rethinking the Agile Iron Triangle With Lean
Time(fixed)
Time(fixed)
EpicIterations
MBIFlow/WIP
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Summary MVPs are about discovering what is of value quickly Minimum Business Increments is about realizing value quickly Both are about getting value in one form or another quickly Business defines chunks of value, technology provides architecture
and time frames Use MVPs and MBIs to increase innovation and increase alignment
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Lean-Agile Enterprise
Business
Manage mentTeam
Lean ManagementProject Management
technicaltechnical
Lean for ExecutivesProduct Portfolio Management
Business Product OwnerProduct Owner
Onsite SPC Leading SAFe®Agile ArchitectureProduct Manager/PO
Leanban / Kanban / Scrum ATDD / TDD / Design Patterns
ASSESSMENTSCONSULTING
TRAININGCOACHING
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Have a why descoping early is important
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There is more value created with overall alignment than with local excellence.
Don Reinertsen
Visualize the result and allow teams to form their own solutions.
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Usage of Features and Functions in Typical System
Source: Standish GroupStudy of 2000 projects at 1000 companies
What should we align on?