Agile & Product Managers. Protect Team Boundaries

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1 Agile & Product Managers Protect Team Boundaries

2 Pollyanna PIXTON Co-Founder, Accelinnova President, Evolutionary Systems Director, Institute of Collaborative Leadership

3 Kent MCDONALD Co-Founder, Accelinnova President, Knowledge Bridge Partners

4 Agenda Why Agile What is Agile Decisions Leadership Success Factors Q&A

5 Why Agile?

6 Faster and Better Results

7 Drive Efficiencies Improve delivery: reduce time to market and throughput of schedules Improve velocity and agility to deal with change, risk and uncertainty Taking systems view to drive out further cost and waste in product development lifecycle

8 Become More Effective Become an enabler of corporate strategy Make sure we are delivering the value customers need and want Reduce cost

9 What role does Agile play? Facing of market and technical uncertainty, agile methods: Improve delivery Decrease time-tomarket Reduce cost

10 Business issues today

11 Must consistently deliver business value

12 in a dynamic environment with constrained resources

13 Business dynamics innovate to differentiate responsiveness tighter linkage to customers time to value

14 Operational dynamics predictability of schedules quality better use of resources improve product development cycles

15 Project Challenges

16 Project Statistics Successful Challenged Failed Standish Group Study, reported by CEO Jim Johnson, CIO.com, How to Spot a Failing Project

17 Project Improvements Due to better: Tools Project Leaders Adaptive Methods Breaking projects into small chunks Delivering pieces faster for user feedback

18 Never or Rarely Used: 64% Rarely 19% Sometimes 16% Always or Often Used: 20% Never 45% Often 13% Always 7% Standish Group Study, reported by CEO Jim Johnson, XP2002

19 We need to Lead in the marketplace Deliver the right product Meet customer s changing needs Deliver to rapidly moving market windows Innovate on both sides of your business model Get more done by doing less

20 How does agile help?

21 Innovate to Differentiate

22 Embrace Change Go in search of change Help your customers lead in their marketplace Understand your customer s success factors Assess market changes and needs continuously

23 Time to market

24 Build highest value first!

25 Don t build what we don t need

26 MS Word vs. Google Docs Word toolbar

27 Agile does this by Breaks work into chunks Prioritize chucks by business value Being flexible Can be stopped or restructured without losing all value Delivers in chunks (working, ready to be deployed software)

28 Cost business driven Agile Increases Revenue Delay Lost Value Time Delays by overzealous planning costs far more than it saves

29 Cost Self-Funding Breakeven Breakeven Business Driven Agile Increases Revenue Profit Staged Releases Single Release Investment Time Agile projects reach a break-even point earlier!

30 Responsiveness to market changes

31 Agile does this by Continuous stakeholder feedback Stakeholders participate in User story development Prioritizing chunks Giving feedback on delivery of working chunks

32 Avoid Surprises!

33 Agile does this by Time box iterations (sprints) Shows progress Demonstrates working code with high quality at the end of each sprint More finished state No technical debt accumulating

34 Mitigate Risk

35 Agile does this by Discovering risks early through continuous short iterations Addressing risks early and often Testing risk mitigation solutions Closing risks Realistically addressing uncertainty

36 Deal with Uncertainty

37 We don t know what we don t know

38 Increasing Knowledge Allow Mid Course Corrections Planned Completion Zone of success Start Actual Path Planned Path As Knowledge increases Leaders use iterations to guide project towards enhanced goal Actual Completion

39 Hurricane Rita

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48 - NASA

49 Deliver Quality

50 Agile Improves Quality Test cases are written first, before anything is developed Go/no-go decisions reached early and often

51 Reduces Technical Debt Anything that makes code difficult to change. Cost of getting out of debt is compounded over time.

52 Technical Debt Cost over Time

53 Examples

54 Agile Examples 1 year projects reduced to 5 months with better quality (custom systems) Past: 3 months to develop 2 year roadmap Present: 3 days Financial: 50% time cut; 60% cost reduction

55 Revenue per HC $M E/R as % Improving Bottom-Line Growth: IBM SW Revenue per DE HC $M Rev per DE HC E/R

56 HC / Product GA SWG Revenue in $$ s Improving Productivity to Reinvest Capacity HC / Product GA SWG Revenue *

57 Products & HC/Product Improving Product Deliveries Brand W Products Brand W HC/product Brand T Products Brand T HC/product

58 What is Agile?

59 What is Agile? Delivers business value in chunks Relies on stakeholder feedback Embraces change Continuous learning A framework for conversation No accumulation of technical debt

60 Agile defined

61 Agile Manifesto We are uncovering better ways of developing software by doing it and helping others do it. Through this work we have come to value: Individuals and interactions over processes and tools Working software over comprehensive docs Customer collaboration over contract negotiation Responding to change over following a plan That is, while there is value in the items on the right, we value the items on the left more

62 Agile Process Breaks work into chunks Prioritize chunks by business value Builds highest value chunks in a time-boxed iteration called a Sprint Delivered chunks are working, ready to be deployed software Deployed when stakeholder says there is enough business value to go to market

63 Agile Process process

64 Definitions Who does what?

65 Roles and Responsibilities Stakeholders: Input to Product Business Objectives Product Owner: Defines the problem and ensures the solution solves the problem Delivery Team: Deliver the product right Scrum Master: Help Product Owner and Delivery Team work together

66 Product Owner Assess product opportunities Define the problem from the customer and user point of view Does NOT define the solution The team defines the solution

67 Product Owner Builds roadmap and prioritizes features in collaboration with: Business Leaders Stakeholders Scrum Master Functional representatives from team

68 Scrum Master Removes barriers between development and customer so customer directly drives development Facilitates creativity and empowerment Improves productivity of development team in any way possible Improves engineering practices and tools so each sprint is ready to deploy

69 Scrum Master Is not a project manager Team manages itself Does not have authority over the team Team makes decisions Always asks the question: How are the Product Owner and Delivery Team doing? Challenges the organization, key-role in the change

70 The Whole Team stakeholders marketing sales line of business development architecture testing support

71 Whole Team & Delivery Team Involved but not personally committed to delivery May be involved in planning & retrospectives May observe daily standups Committed to delivery Active participants in planning & retrospective Active participant in daily standup Whole Team Delivery Team

72 Agile Organizational Structure Product Manager Profit and Loss Product Strategy Product Roadmap Inception Team Product Owner Product Backlog Release Backlog Continuous Innovation on Project Architect UX Developer Whole Team Delivery Team Team Sprint Backlog Development Manager Unblocking Resource Management

73 Product Development Team Engineering Project Status Reporting Stage Gate Updates PMT Services Delivery Sales Customers PDT Leader (Product Manager) Stage Gating Finance IT Marketing Support

74 Where are my requirements?

75 Leading Agile User Stories User Stories Collaboration Model Collaboration Process

76 Two Kinds of User Stories Epic User Stories (aka Epics) High level features of a product Fit into a release Each release has a Release Theme All epics form the Product Backlog User Stories Breakdown of Epics into smaller features Fit into a sprint (iteration) User Stories form Release Backlog

77 What does a user story look like?

78 User Story Defined A concise, written description of a piece of functionality that will be valuable to a stakeholder. As a <role>, I can <goal> so that <business value>

79 Example: NASA User Story As an < astronaut > I want to < write easily with a ball point pen while in Zero gravity > So that < I can record key information that I might otherwise forget >

80 User Story Example NASA specified and developed, at great expense, a ball point pen that Apollo astronauts could use in space where gravity would not make the ink flow. Russian cosmonauts used crayons. Moral: specify what you want to achieve, not how to achieve it.

81 Get inside consumer s mind

82 Outside In Development Understand your Stakeholders Align with Stakeholder s goals Define success in your Stakeholders terms Understand Organizational Context Make Products Consumable

83 The customer is always moving, changing, and if you re not out there all the time trying to understand the functional and emotional needs of consumers, your design will simply fall flat. - Matthew May

84 What s an Epic User Story?

85 Epic User Stories Epic User Stories capture stakeholder goals for release themes. Epic User Stories fit into releases Will not likely fit in an iteration Team has an idea of how large the effort is Create Epic User Stories with Stakeholders All the Epics form the product backlog.

86 PB Example Theme: Presort services with most often used presort methods Epic: As a mailer, I want to sort by zipcode 1 st class automation letters and flats So I can.. What is the business value for this user story?

87 PB Example Theme: Presort services with most often used presort methods Epic: As an application developer, I want to configure the presort engine to sort on 1 st class letters & flats by zipcode So I can.. What is the business value for this user story?

88 Example: Epic User Stories As a principal, I can have the software deployed and running in production less than one month after purchase, So that. What is the business value for this user story?

89 Start Up Exercise: Practicum Pick a project. Pick a project

90 Create a Product Backlog Select a Product Owner Identify themes for your releases Write 1-2 epic stories for each release As a <role>, I can <goal> so that <business value>

91 Where s my plan?

92 Project Management It is a bad plan that admits to no modifications. -- Publilius Syrus (ca. 42 BCE)

93 A Plan plan is NOT a Commitment commitment! If plans are commitments, then we are committing to decisions made when we were the most ignorant (recall cone of uncertainty, NASA s 5%). Measuring conformance to plan is measuring the wrong thing because the plan will change.

94 What makes planning Agile? More focused on planning than the plan Encourages change Plans are easily changed Done throughout the project Incorporates customer feedback

95 What s an Agile plan? In the form of three backlogs: Product Backlog Epics and Themes for Product Release Backlog Release Theme and User Stories Sprint Backlog User Stories and tasks planned for the Sprint (iteration)

96 Product Planning

97 Product Planning Product Backlog: Develop Epic User Stories Prioritize based on Business Value Define release themes Place Epics into releases Who: Stakeholders, Business and Team

98 Release Planning

99 Release Planning Product Backlog (Prioritized Epics and Themes) H Release Planning Meeting H M M Release Backlog for Epic High BV Medium BV Low BV L L

100 Release Planning, part 1 Create a Release Backlog: Develop User Stories for ONE release Prioritize based on Business Value Who: Stakeholders, Business and Team

101 Release Planning, part part 2 2 Estimate Story Points on User Stories Break User Stories into tasks if needed Who: Development Team

102 Agile Estimating

103 Exercise: How long will it take. to read the latest Harry Potter book?. to drive to Austin, TX?

104 Determining Duration Size Calculation Duration 300 units Velocity = /20= 15 iterations

105 measure of size

106 Traditional Measure of Size Traditional measures of size: Lines of Code Function Points

107 Agile Measure of of Size Size Agile measures of size: Story Points

108 Story Points The bigness of a task Points are unit-less Influenced by How hard it is How much there is As a buyer, I want to be able to have some but not all items in my cart gift wrapped. 8

109 Velocity

110 Velocity Long-term measure of work completed in iterations NOT the amount completed in an iteration

111 Track Velocity Multiple Ways Last Observation=36 Mean (last 8)=33 Mean (lowest 3)=28

112 Extrapolate from Velocity Assume five iterations left Finish here at lowest velocity: 5x28 Finish here at average velocity: 5x33 Finish here at current velocity: 5x36

113 How much can I get by <date>?

114 Fixed Date Planning Example Will have 12x15 Might have 12x20 Won t have

115 60/40 Rule

116 Fixed Date Planning Example Will have (60% of time) (8 iterations) 8x18 Might have (40% of time) (4 Iterations)

117 for every sprint

118 Scrum Release Backlog

119 Daily Standup Scrum Meetings Daily 15 minute status meeting Same place and time every day Chaired by Scrum Master Attended by entire sprint team Others can attend Chickens and pigs (only the deliverers speak)

120 daily scrums Each team member answers: What did you do yesterday? What are you doing today? What are your blocking issues? No problem solving! Leave after 15 minutes!

121 Daily Scrum Outcome Records Sprint Backlog up to date Scrum Master updates the blocks list

122 Sprint Review Meeting Held the last day of the sprint Attended by team Team demos done user stories to stakeholders Requests feedback Team holds retrospective Updates the process for the next sprint

123 Demonstration Only DONE working user stories. Ask for attendance from the following for the first 4 iterations as numbered: 1. Executive 2. Internal users 3. Stakeholders 4. Customers

124 Retrospective Keep Drop Add Keep? Drop? Add? What surprised you?

125 The Team owns the learning from the retrospective. They do not have to share it with the rest of the organization..

126 Unleashing Innovation Scrum Exercise Collaboration Process

127 Develop a Brochure in a 3-day Sprint Complete Sprint Planning Meeting -10min Day Day Day Select at least 5 Product Backlog Items Identify 2 to 3 Tasks per Item 8 minute day 2 minute Daily Scrum 8 minute day 2 minute Daily Scrum Meeting 8 minute day Demo & Reflection

128 Scrum on a Page Roles Stakeholders Product Owner Scrum Master Team Artifacts Product Backlog Release Backlog Sprint Backlog Blocks List Information Radiator Meetings Product Planning Release Planning Sprint Planning Daily Scrum Sprint Review Meetings Concept inspired by William Wake s Scrum on a Page,

129 We prioritize based on value, but, what s that?

130 Legacy System Name: Phone: Address: Replacement System Name: Address: Phone: What s the value of change? this required

131 Defining Value Costs Benefits calculation Value Calculation Business Value

132 Valuing the Inputs Estimate Guess calculation Value Calculation Business Value

133 We need some help!

134 Business Value Model Purpose Considerations Costs and Benefits

135 Where we do start?

136 Business Value Model Purpose

137 Purpose Based Alignment Model High Market Differentiating Low Partner? Who cares? Differentiate Parity Low Mission Critical High

138 Purpose Based Alignment Model High Market Differentiating Low Do we take this on? Minimize or Eliminate Innovate, Create Achieve and Maintain Parity, Mimic, Simplify Low Mission Critical High

139 How about an example? enterprise business intelligence product

140 Competitor s competitor s Killer killer UI UI

141 Project Plan: Big team Millions of dollars Many months to out-do competitors UI

142 Where Does My UI Belong? High Market Differentiating Analytics Engine + UI? Low Low Mission Critical High

143 Where Does My UI Belong? High UI? Market Differentiating Analytics Engine? Low Low Mission Critical High

144 Where Does My UI Belong? High Market Differentiating Analytics Engine? UI Gap? Low Low Mission Critical High

145 UI As Parity

146 New design goals: go to school on competitor s UI don t be so bad

147 Results Market-aligned project, cut time by 50% and costs by 40%. Resources to create next evolution of analytics engine.

148 The Challenge? Strategy High Market Differentiating Low Partner? Who cares? Differentiate Parity Low Mission Critical High

149 Strategy = sustainable competitive advantage Sustainable Competitive advantage

150 6 important questions: 1. Who do we serve? 2. What do they want and need most? 3. What do we provide to help them? 4. What is the best way to provide this? 5. How do we know we are succeeding? 6. How should we organize to deliver?

151 the billboard test

152

153 To be the low cost airline. - Southwest Airlines

154 Will this help us be the low cost airline? - Southwest Airlines

155 Strategy creates decision filters a HUGE idea!

156 Decision Filters: make daily decisions schedule projects what to develop

157 Cascade decision filters throughout the organization

158 How about another example? single purchase, multiple credit cards

159 High Market Differentiating Customer Service Low Low Mission Critical High

160 requires customization

161 High Differentiate Market Differentiating OR Parity Low Low Mission Critical High

162 High Differentiate Market Differentiating Low Low Mission Critical High

163 pass the billboard test?

164 A fist full of credit cards

165 Give Me Your Tired, Your Poor, Your Maxed Out Credit Cards

166 treat exceptions as exceptions

167 Caveats

168 Managing Risks List Three Professional Options Common sense not common practice

169 Parity is mission critical

170 Purpose is not priority

171 Differentiating changes over time

172 Leadership Influence innovate!

173 Start Up Exercise: Practicum Pick a project. Pick an objective, a brand, or a project.

174 What is the purpose? High Market Differentiating Low Partner? Who cares? Differentiate Parity Low Mission Critical High

175 What s On Your Billboard?

176 Your decision filter?

177 Other considerations?

178 Business Value Model Purpose Considerations

179 Collaboration Model flexibility

180 dependencies Collaboration Model

181 time to market

182 Complexity team size mission criticality team location team capacity domain knowledge gaps dependencies technical complexity

183 Uncertainty market uncertainty technical uncertainty project duration dependents

184 Your considerations?

185 Prioritize

186 Business Value Model Purpose Considerations Costs and Benefits

187 Costs and benefits?

188 Business Value Model Purpose Considerations Costs and Benefits

189 It s a conversation

190 Group chunks high medium - low

191 Resolve differences

192 What are your largest value chunks?

193 Build a chunk

194 At the end of the chunk

195 you can ask

196 Do we have enough business value to go to market?

197 Should we continue?

198 What goes in the next cycle or chunk?

199 objectives / projects / ideas deferred Value Model prioritized chunks Value Model STOP No Will we ever have enough value to deploy? build highest value chunks Adjust value model if inputs have changed Do we have enough value to deploy? Yes

200 Leadership Success Factors

201 Leadership Challenges The answers are in Get More Done by Doing Less your organization Lead Change Deliver the Right Product Meet Customer s Changing Needs Meet Market Windows

202 Project Management None of us are as smart as all of us. How Do We Deliver? - Japanese Proverb

203 Collaboration

204 Project Management Quality Create Management open environment

205 fosters creativity and innovation, team commitment and ownership encourages ideas

206 fosters creativity and innovation, team commitment and ownership encourages ideas what makes it open?

207 open environment right people

208 bring the right people together from the entire enterprise customers marketing finance technology sales manufacturing stakeholders

209 open environment right people foster innovation

210 Trustworthiness stimulate creativity through collaboration process

211 open environment right people foster innovation step back

212 and let them work

213 open environment right people foster innovation step back

214 Project Management Dependency Management collaboration process

215 agree to goals and objectives

216 brainstorm

217 group in silence

218 prioritize based on business value

219 Business Value Model Purpose Considerations Costs and Benefits

220 individuals volunteer for what and by when

221 Trust Trust

222 Unleashing Innovation Why is trust important? Collaboration Process

223 The data

224 : high trust companies out perform low trust companies by 43% add 2009: high trust companies out perform low trust companies by 126% - Great Place to Work

225 Leadership & Business Process Trust/Ownership Model Trust Failure No One Cares Energy & Innovation Team Trusted Team Accountable Leader Freed Command & Control Conflict Control Team Does as Instructed No Ownership Leader / Process is Bottleneck Team Demotivated Mired in Bureaucracy & Wasted Effort Low Team/Individual Ownership High

226 Project Management Remove debilitating fear Dependency Management

227 Team based Leading Agile measurements Collaboration Model Collaboration Process

228 People do what they are measured by Measure results

229 Let teams evaluate themselves

230 Project Management Trust First! Risk Management

231 Leadership Role Suspicion is a permanent condition. - Marcus Buckingham

232 Ownership

233 Use authentic motivation - Alfie Kohn Punished By Rewards

234 Let teams collaborate to make their decisions

235 Let people choose how, what, and when

236 Provide meaningful work

237 back Don t take their ownership

238 answers Don t give the

239 or give them the solutions

240 Ask questions

241 Questions that help teams discover solutions

242 Exercise: leader and worker conversation

243 Leadership Role Autocracy dampens people s creativity and motivation - Ricardo Semler, The Seven-Day Weekend

244 Free team to question, analyze and investigate

245 A place where people want to be

246 have People what they need succeed to

247 People don t resist change; they resist being changed. - Peter Scholtes

248 Tools and Processes

249 Design Studio

250 Goal Customer focus Shared understanding Products customers love! Collaborate Create product roadmap Invite stakeholders, managers, customers and development, marketing, sales, support.

251 Process Create an end to end Customer Journey Identify your product Touch Points, differentiators and parity gaps Create decision filters List features that pass the filters Group and prioritize by business value Roles and responsibilities: who owns what How will you get and process customer feedback

252 What Next? What resonated with you? Other Tools: Collaborative Leadership Making Better Decisions Create a Culture of Trust Step Up and Step Back

253 Summary summary

254 Agile defined (IBM) Uses continuous stakeholder feedback to deliver high-quality, consumable code through user stories and a series of short, stable, time-boxed iterations.

255 Scrum on a Page Roles Stakeholders Product Owner Scrum Master Team Artifacts Product Backlog Release Backlog Sprint Backlog Blocks List Information Radiator Meetings Product Planning Release Planning Sprint Planning Daily Scrum Sprint Review Meetings Concept inspired by William Wake s Scrum on a Page,

256 Agile Defines needs from a customer point of view Delivers business value in chunks Relies on stakeholder feedback Embraces change Continuous learning A framework for conversation No accumulation of technical debt

257 Agile Decreases time to market Increases revenues Reduces cost and waste Delivers products and services that customers love Increases customer loyalty Delivers the right value

258 Leadership Role Agile is continuous learning and adaptive planning. - M. Buckingham

259 Business Value Model Purpose Considerations Costs and Benefits

260 It s a collaboration

261 Leadership Open Environment Collaboration Process Stand Back Trust Measure Results Team Decides Ownership Ask Questions

262

263 Pollyanna PIXTON accelinnova.com evolutionarysystems.net collaborativeleadership.com

264

265 product planning Product Backlog Input Output Who SOW, Purpose Prioritized Product Backlog (Epics and Release Themes) Business, Product Owner, Dev Team representatives

266 Release release Planning planning, Meeting part 1 1 Product Backlog H H M M M L Release Backlog Theme H H H H H M M M M M M L M L Input Product Backlog Output Prioritized Release Backlog (User Stories) Who Business, Product Owner, Dev Team

267 Release release Planning planning, Meeting part 2 2 Release Backlog Theme H H H 1 M 3 M 8 M 1 M 5 M 2 M H L H M L Input Output Who Release Backlog Estimated and Prioritized Release Backlog (story points) Development Team using planning poker

268 Sprint sprint Planning planning Meeting WP WIP WD Input Release Backlog New User Stories Output Sprint Backlog, Definition of Done, Information Radiator Who Development Team

269 daily scrums Each team member answers: What did you do yesterday? What are you doing today? What are your blocking issues? No problem solving! Leave after 15 minutes!

270 sprint review meeting Held the last day of the sprint Attended by team and stakeholders Team demos done user stories to stakeholders Requests feedback Team holds retrospective Updates the process for the next sprint

271 retrospective Keep? Drop? Add? What surprised you?

272 trust companies double performance over S&P for 10 years - Great Place to Work high trust companies out perform low trust companies by 300% - Watson Wyatt study

273 Unleashing Innovation Foster collaboration Collaboration Process

274 Let people choose

275 Content

276 Definitions Give up command and control

277 Agile defined (IBM)

278 uses continuous stakeholder feedback

279 uses continuous stakeholder feedback principals end users partners insiders

280 to deliver high quality, consumable working code

281 through user stories

282 and a series of short, stable, timeboxed iterations.

283 The opposite of control is discovery discovery

284 Leadership Role A good agile project will build something that meets customers needs but may be different from original plans. - Jim Collins

285 Inception Team Responsible for continuous innovation during the release Consists of: Product Owner Architect UX Developer

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