scope transformation approach and realise...scope transformation approach and realise expected...

Can AGILE enable a full scope transformation approach and realise expected benefits more successfully?Transformation Assurance

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2 Scaled agile transformations

1 Needforspeedinbenefitsdeliverytoremaininpoleposition

2 Agiledelivery–thepervasivesolutionformaximisingproject benefits?

3 Scalingagileinordertocomprehensivelyrealize organizationalbenefits

4 Embeddingagileinafullscopetransformationapproach

5 Whentoact–commonriskareasandearlywarning indicators

6 Ourpointofview

7 Contacts

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Scaled agile transformations 3

Nowadayseveryoneistalkingaboutagileanditsgreatpotentialforquicklydeliveringvaluetoorganisations and customers. Anyonefollowingthisdiscussionmight get the impression that agileisasilverbullet.

Althoughsomeorganisationshavedemonstratedsuccessinagileprojectorprogrammedeli-

very,othershavebeenseriouslystrugglingtoquicklydelivertheexpectedbenefits–ortodeliveranythingatall.Whyisthisso?Havetheseorganisationssufferedalackofagileeducationand experienceormadeinappropriateuseofagilemethodsandtools;didtheyencounterresistancetoculturalchange,orwastherejustalackofdiscipline?Maybe

acombinationofallthesefactorswastheproblem?Inthisarticlewewillgiveananswerto1)whyagileprojects,andespeciallylarge-scaleagileprogrammes,oftenstruggle,and2)howthechallengesandrisksofagiledeliverycanbeovercometoensuresmoothandcontinuousproductdeliveryandrealisetheexpectedbenefits.


1 Need for speed in benefits delivery to remain in pole position

Increasingmarketdemandsaretransformingthewayorganisationsrespond to customers’ needs. To address thedrivers,whicharemainlycentredonspeedofdeliveryandbusinessvaluecreated,organisationsareadoptingagilepractices at a rapid pace. According to VersionOne’s 10thAnnualStateofAgileReport,Scrum(58%)andScrum/XPhybrid(10%)arethemostcommonlyusedagilemethodologies.Theremaining32%ofrespondentspractiseeitheroneoracombinationofmorethanadozenotheragilemethodologies,adaptedfromthemarketoriterativelyself-developed.

Thisrecentambitionbringsnewrisksasorganisations,peopleandprocessesevolvetolearnandadapttothenewwayofworking.Hence,fortransformationprojectsandprogrammestodeliverand

maximisethebenefitspromisedfromthem,advancedprojectorprogrammemanagementpracticesandgovernanceneedtobeputinplace.

1% DSDM/Atern 1% XP<1% Agile Unified Process (AgileUP)

2% I Don’t Know1% Feature-Driven Development (FDD)

1% Agile Modeling2% Lean Development

3% Itrerative Development3% Other

Scrum58%

Scrum/xpHybrid

10%

Scrumban7%Kanban5%

Custom Hybrid(multiple

methodologies)

8%

Figure 1: Agile Methodologies Used Source: VersionOne: 10th Annual State of Agile Report


2 Agile delivery – the pervasive solution for maximising project benefits?

Theadvantagesofagiledeliverypractices,especiallyintheITandsoftwaredevelopmentsector,havebeenproven,andmanyorganisationshaveevenadoptedagileastheirdefaultprojectdeliverymethod.Therearealsostudies,suchasthosepublishedbyTheStandish Group1andAmbysoft2,whicharguethatagileprojectsaremoresuccessfulthantraditionalones.

Thereisnodoubtthat,whenproperlyimplementedandmanagedwiththerightcontrolsandgovernanceprotocols,agilecanbesuccessfulinquicklydeliveringfunctionalityandmaximisingbenefits.However,toimplementanagileprojectanorganisationhastoadaptandrealignculturallytosatisfystakeholdersthathigh-qualitysolutionsarebeingdeliveredandthatbusinessriskisbeingeffectivelymitigated.

Inaddition,agiledeliverytypicallyaffectsbusinessesdifferentlydependingontheirsizeandhowtheyintegratetheagilecomponent into business operations and establishedprojectdeliverymethodology.Eventhoughagileprojectsarecommonlyreportedtobemoresuccessfulthantraditionalprojects,thefactthatagilehasbeenusedtypicallyinsmallormid-sizedITprojectenvironmentshasaconsiderableeffectonprojectcomplexity,andconsequentlythechancesofsuccess.

Inadditiontorapidrealisationofbusinessvalueandbenefitstocustomersandendusers,suchstudiescommonlyhighlightthefollowingagilerelatedadvantages:

• Greatercontrolovertimeandbudget,with the focus on prioritising and refiningscopeinamoreflexibleway,andthusdeliveringontime

• Engagingbusinessstakeholdersthroughoutthedeliverylifecycle(notjustatthebeginning)

• Cross-functionalandself-organisingteamsfacilitatebetterutilisationofresources

• Incrementallydesigningsolutionswithcustomerscreatesrelationshipsandopportunitiestobuildtrust

• Moretransparencywithrespecttoprojectprogress,obstacles,risks,issuesand dependencies

1 The Standish Group, CHAOS Report 2015 2 Ambysoft, IT Project Success Rates Survey 2013


Figure 2: SAFe – Scaled Agile Framework Source: Authors’ illustration derived from SAFe

Althoughmanyprivatebusinessesandpublicorganisationsaretryingtomaximisethefullpotentialofagilewithinsmallandmid-sizedITprojects,fewofthemmanagetosuccessfullyscaleagilepracticestolargetransformationprogrammesandfinallytoenterpriselevel.

Indeed,managingandcoordinatingprojectwork,andultimatelythefastdeliveryofhighqualityproducts,becomesmuchmorecomplexinaprogrammeenvironmentcomprisingacombinationofseveralprojectsthatmayoverlapandbebuiltbyteamsofteams(orteamsofteamsofteams).Toaddressthischallenge,scalingframeworkssuchasSAFe(ScaledAgileFramework,themostdominantapproach),LeSS(LargeScaleScrum)andDaD(DisciplinedAgileDelivery)haveevolvedinthemarket3.

SAFerepresentsaframeworkofintegratedpatternsbasedonleanandagileprincipleswiththeaimofsynchronisingthedeliveryofmultipleautonomousbutalignedagileteamswithinlargerorganisations.Onanoverarchinglevel,EPICs4 representing enterpriseportfolios(thatallowcalculationofROIandareusuallyfacingdevelopmentinitiativesonthecustomersideorinternally)havetobeplanned.

TheprimarydeliveryinstrumentbringingtogetherdevelopedartefactsofindividualteamsiscalledAgileReleaseTrain.WithinanAgileReleaseTrainreleasecycle,regularprogrammeincrements(completedproductartefacts)areusedto ensure that the intended business objectivesaremet.

3 Scaling agile to comprehensively realise organisational benefits

Agilewasoriginallydevelopedforsoftwaredevelopmentprojectsinwhichthecustomer’sendneedscouldnotbefullydefinedatthebeginning.Theseprojectsusuallyaffectedonlyoneortwofunctions,e.g.clientmanagementorsales.However,ifyouwanttogainsignificantbenefitsfromadoptingagileinyourbusinesstransformationprojectsandprogrammes,youneedtobeabletoscaleyouragiledeliverytoenterpriseleveland adopt it in strategic business initiatives.

3 We consider SAFe, LeSS and DaD to be the most commonly used scaling frameworks based on our market experience. However, there are a number of other scaling methods and approaches available. 4 SAFe defines EPICs as significant initiatives that help guide value streams toward the larger aim of the portfolio. They are investment intensive and far ranging in impact. EPICs require a formulation and analysis of cost, impact, and opportunity in a lightweight business case, as well as financial approval before implementation.

PortfolioLayer Strategic Themes and Direction

Multi-Product Roadmap

Program or ReleaseTrain

Program (or RT)

Multi-ProductRoadmap

Value StreamLayer

ProgramLayer

Agile TeamLayer

Feature Team Feature Team Feature Team Feature Team Feature Team


PortfolioLayer

Value StreamLayer

ProgramLayer

Agile TeamLayer

Feature Team Feature Team

Head PO

Feature Team Feature Team Feature Team

Head PO

Product BacklogProduct Backlog

Figure 3: LeSS – Large Scale Scrum Source: Authors’ illustration derived from LeSS

Figure 4: SAFe – DaD – Disciplined Agile Delivery Source: Authors’ illustration derived from DaD

LeSSscalesupScrumactivitiesonthe basis of the team-of-teams concept whichaddressespractices,suchas Scrum of Scrums5,agilerelease

DaD represents a process decision frameworkthatadoptsandtailorsagilestrategiesandprinciplesfromexistingmethods,withthefocusonpeopleand

planning,coordinatedScrumevents,andamanagedorganisationalagiletransformation.

learningaswellassolutionandrisk-valuefocuseddeliveryofITandsoftwareartefacts within an organisation.

PortfolioLayer

Product and Portfolio Management based on Organisation goals

CoordinatedRelease

CoordinatedRelease

OrganisationLevel

DisciplinedDevOps

IT DeliveryLayer

Feature Team andArchitecture Owner



TechnicalExperts

Specialists

TechnicalExperts

5 Scrum of Scrums enables collaboration between multiple Scrum teams. Each team identifies one team member to attend the Scrum of Scrums meeting to coordinate work with other Scrum teams.


Typically,suchtransformationprogrammeshavebeenruninatraditionalwaterfall-orientedapproachinthehopeofachievingaligned,managementcontrolledproductdeliveryandacceptance;thedrawbackofaslowertimetomarketistakenintoaccount,andtheinitialproductisonlydeliveredmanymonthsafterprojectstart.

Withthegrowingvogueofagile,thesewell-knowntraditionalpracticeshavebeenheavilydisrupted,inmostcasesbothtop-down(‘managementwantstofollowtheagiletrend’)andbottom-up(‘agilegivesmoreautonomytotheteams’).However,agilecannotbeenforcedinlinewithatextbookimplementationapproach.Thefactorsgivenbelowareamongthemostprominentobstaclestoadapting(orevensubstituting)agileintraditionaldeliveryapproachesandstructures6:

• Organisationalandcompanyphilosophyorcultureatoddswithcoreagilevalues,and/orlackofmanagementsupportforculturaltransition

• Insufficientpersonnelwiththenecessaryagileknowledgeandexperience

• Inconsistentand/orineffectiveagilepractices,methodsandtoolsthroughout the organisation

Youneedtobeclearaboutthebenefitsandthedrawbacksofagile(comparedtothetraditionalapproach)tomakesureitis the appropriate method to be used so thataprogrammecansuccessfullydelivertheintendedbusinessbenefits.Problemswithdeliverywillnotbefixedbyjustmovingtoagile.Somemethodologiescanhideproblems,suchaspoorcommunicationandpoorqualitydelivery;agilebringstheseissuestotheforefront,soitmayoftenbethoughttobethecauseoftheproblem.

Thereisnoone-size-fits-allmethodology,however,andeachdeliverymethodologyhas its pros and cons depending on the natureoftheprogramme.Consequently,eachandeveryprogrammewillneedaslightlydifferentapproach.Organisationsneedtobeawareofthisiftheyaretofullyunderstand when it is appropriate to use agileandhowtoscaleproductdeliverywithinalarge-scaletransformationprogramme.Furthermore,oftentraditionalprojectandprogrammemanagementframeworkshavebeenestablishedinorganisationsformanyyearswithhigheffort.Tointegrateandscalefastdelivery,thesetraditionalframeworksneedtobeadaptedwithagileprinciples,e.g.towardsahybridapproach.

Havingrealisticexpectationsaboutwhatandwhentheprojectteamwilldeliver,aswellasfocusingontherightprioritiestodeliverthedesiredbusinessoutcomes,willbuildconfidenceinthenewagilemethod.However,variousobstacleswillneedtobeovercomeonthepathtosuccessfulagileprojectdelivery.

4 Embedding agile in a full scope transformation approach

Largestrategicprogrammesthattransformthewholebusiness,oratleastsignificantpartsofit,requireafullscopetransformationapproachthatcoversdeliveringanddrivingchangeaspectsthroughoutthewholetransformationlifecycle.Suchcoverchallengesalongalldisciplinesfromtargetoperatingmodeldesigntothecompleterolloutofasolutionintotheorganisation,accompaniedbyorganisationalchange,stakeholder and communications management.

6 Based on VersionOne, 10th Annual State of Agile Report


• Productownerisonlyassignedlimitedauthoritytodefineandprioritiserequirementsandformallyacceptproductas‘readyfordeployment’onbehalfoftheorganisation.

• Riskandassurancefunctionsarenotsupportiveoftransparentprogrammestatus,resultinginalackoftransparencyaroundqualitycontrolsandassurances;assuranceisnolongerprovidingproactiveinsightandchallengetoprogrammesponsorandsenior management.

Organisational culture and governance not supportive of agile

• Siloorganisationalstructuresandimplementedgovernancecreateconflictswithcross-functionaldeliveryteamsandhinderself-organisationinagileteams.

• Accountabilitystructuresarenotclearlydefined,preventingthedeliveryteamsfromworkingtowardscommongoals.

• Productowner,teammembersandbusinessrepresentativesdonothaveenoughcapacityandarestilldedicatedtobusiness-as-usualactivities,resultingininadequateperformanceofagileceremonies(e.g.planningmeetings,dailystand-ups).

5 When to act – common risk areas and early warning indicators

Therearemanyhiddenpitfallswhenimplementingandadoptingagiledeliverypracticesintransformationprojectsandprogrammesatscale.Thefollowingareafewconsiderationsandquestionsorganisations,sponsorsandmanagementshouldthinkabout.

Organisation

Processes Methodsand Tools

PeopleExperience

Figure 5: Common risk areas Source: Authors’ illustration


Delivery processes, methods and tools not supportive of value-oriented, fast-pace agile delivery

• Keydeliveryelementssuchas‘definitionofdone’,qualitycriteriaandacceptancecriteriahavenotbeenconsistentlydefinedonanenterpriselevelpriortothestartofdevelopment.

• Inappropriateornon-defineddeliveryKPIsdonotsupporttransparentreportingoftheactualprogrammedeliverystatus.

• Underpinningtechnicalfoundations,such as architecture and data governance,arenotfullyconsideredintheagiledeliverymodel,resultinginanon-streamlineddeliveryprocess.

• Releaseplanningacrossteamsisnotalignedandpre-determinedduetoadifferentpaceofdeliverythathindersthe creation of a coordinated product definitioninlinewiththeneedsofthecustomer.

• Insufficientautomated(regression)testing and continuous integration techniquesandtoolshinderregulardeliveryofworkingproductartefactswiththerequiredqualitywithoutimpacting production.

• Deliveryteamsarenotinterdisciplinaryenoughand/orconsistoftoomanystaffmembers.

• Deliveryteamsdonotworkcloselyenough throughout an iteration due to non-focusedcollaborationandtoolittleregularface-to-faceinteractionwithinthe team.

• Teammembersarenotco-locatedbutrather spread across different time zones.Ifoffshoreresourcesneedtobeused,initiallyagileteamsshouldbesuccessfullyscaledonshorebeforeconsideringanoffshoremodel.Inaddition,adeliberateapproachmustbeemployedtokeeptheseteammembersfullyengagedwiththerestoftheteamandtheprojectorprogramme.

• Externaldeliveryteamsandvendorsarenotfullyalignedandintegratedwithintheorganisation’sagiledeliverymodel.Membersrepresentingdifferentsubcontractedorganisationsmayhavedifferentobjectives,hinderingefficientcollaborationwithinagiledeliveryteams.

• Noformalchangecontrolhasbeenimplemented,resultinginaconstantiterativespiralbetweenendusersanddeliveryteams.

• Lackofanintegratedbenefitsmanagementwithintheoveralldeliveryapproach chosen.

People’s experience and discipline not supportive of agile

• Limitedconfidenceinthedeliveryteamsachievingthedesiredoutcomesduetolackofknowledgeorexperiencewithagile.

• Productownersdonotcontinuouslyupdateandprioritiseproductbacklogitemsbasedonbusinessneeds,anddonotactivelyparticipateinagileceremonies(e.g.planningmeetings,product demos).

• Toomanypart-timeteammemberspreventefficientandeffectivecontinuousdeliveryofproductartefacts.

• Relevantinternalandexternalstakeholdersotherthanbusinessendusersarenotinvolvedinproductdelivery(e.g.legal,compliance,risk,internalaudit).


Agileisaboutfocusingonspeed,valueandfunctionality.Itcangeneratesignificanttimeandcostsavingsandimproveflexibility.However,agiledoesnotdeliverbydefault.Itmustbesetupforsuccess–whichinvolvestherightculture,peopleandexpertise,andprocesses,methodologiesandtools.Youalsoneedtobeconfidentthatyourtransformationprojectsandprogrammeshavetrulyadoptedtheseagileprinciples,andfollowthemwithmaximumdiscipline.

Agilepracticesareinherentlydesignedtodeliverincreasedvisibility.Consequently,governanceandassurancefunctionsalsoneedtofullyexperienceandexhibitthesamecoreprinciplesastheagiledeliveryteamssothattheycanprovidevaluableinsightandtransparencyoneffectiveprogrammedelivery.

Asanewmindsetagileneedstobeembedded in the business and IT organisationandamongallstakeholdersinvolved−fromdeliveryteamsandbusiness sponsors to those who monitor them.Bothagileand(especially)scaledagilerequireculturaladaptationandrealignmenttomakesurestakeholdersaresatisfied,thebusinessvisionisrealised,highqualityITsolutionsaredelivered,andthatbusinessrisk(duetotransformation)iseffectivelymitigated.

Tosuccessfullyembedandscaleagiledeliverypracticesinlargetransformationprogrammes,weconsiderthefollowingstepstobeessential:

1. Understandtheoriginofagilemethodologies

2. Educateprojectworkers,managementandstakeholdersinagilevalues,methods and practices

3. Buildaneffectiveagilecultureandorganisation

4. Understandagilesuccessandfailure

5. Buildmetricstomeasureagilesuccessandbenefitsrealisation

6. Scaleagiletothesizeofyourprojectsand programmes

6 Our point of view

There is increasing dependence on agile-enabledbusinesstransformationprogrammestoremaincompetitive.However,lackofexperiencewithagileandlimitedorganisationalcommitmentcan deter the most seasoned programmeandprojectmanagementveteransfromcomprehensivelyadoptingagile.


7 Contacts

Manuel ProbstSeniorManager,Assurance +41587922762 [email protected]

Marc LahmannDirector,Assurance +41587922799 [email protected]

PwCSchweizBirchstrasse 160Postfach,8050Zürich

©2016PwC.Allrightsreserved.“PwC”referstoPricewaterhouseCoopersAG,whichisamemberfirmofPricewaterhouseCoopersInternationalLimited,eachmemberfirmofwhichisaseparatelegalentity.

scope transformation approach and realise...scope transformation approach and realise expected...

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