When the Business Wants Waterfall Implementing Agile in a Phase-Based Environment

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1 When the Business Wants Waterfall Implementing Agile in a Phase-Based Environment Marjorie Farmer Wireline & Perforating Global Software Discipline Manager

2 Agenda Halliburton Situation and Challenges LIFECYCLE for Software Execution Adoption Challenges Results 2014 HALLIBURTON. ALL RIGHTS RESERVED. 2

3 Halliburton global footprint Halliburton Locations Halliburton Headquarters Halliburton Research Centers 2014 FAST FACTS Founded Employees 1919 Over 80,000 Operational Countries 80 Research Centers 15 Corporate Headquarters Houston Dubai Customers National, International and Independent entities worldwide 2014 HALLIBURTON. ALL RIGHTS RESERVED. 3

4 Program Sanctioning Business Case Development Production Commercialization Initiation Gate Gate Approval Gate Release Gate Release Gate Launch Gate Review Retirement Assessment Stage 0 Definition Stage 1 Design / Build / Qualify Stage 2 Verification Stage 3 Stage 4 Commercialization Stage 5 Lifetime Stage 6 Program Project Mgmt & Business Problem Business Case Management and Program : Resource Management, Risk Management, Schedule Development & Execution, Integrated Launch Plan, Etc. Launch Program Close Product Mgmt & Marketing Product Portfolio Analysis Market Analysis Market Launch and Execution Customer / Commercialization Metrics (Scorecards) Retirement / Obsolescence / Cannibalization Yearly Pricing Review Yearly Product Positioning Review Product Retirement Process Readiness Development Execute Design Plan Execute Verification Plan (Prototype Testing) Execute Plan (Pilot Testing) Operations Design Support Sustaining Cost Reduction Plans Supply Chain & Mfg Initial Manufacturing Assessment Supply Chain / Manufacturing Development & Facilities Prep Execute Production Plans Supplier Monitor Quality Plans Supplier Scorecards Operations Business Need Initial Launch Verification/ Plan Input Operations Deployment Preparation Execute Plan (Pilot Testing) Service / Maintenance Plan (Field / Customer Feedback) Finance/ Accounting Business Case Contributions & Compliance (Legal/HSE) Initial Assessment Regulatory Environmental Analysis Regulatory/Compliance Review 1 Regulatory/Compliance Review 2 IP Landscape and Early IP Opportunities IP Strategy IP Review and File IP Reviews at each Stage Gate 2014 HALLIBURTON. ALL RIGHTS RESERVED. 4

5 LIFECYCLE for Software Executive Mandate Produce a process based on LIFECYCLE that works for software, as much like LIFECYCLE as you can make it. And you have to keep the same stages and gates HALLIBURTON. ALL RIGHTS RESERVED. 5

6 Software Process Agile Ad Hoc Waterfall 2014 HALLIBURTON. ALL RIGHTS RESERVED. 6

7 Adjustments 2 Design / Build / Qualify Stage 2 Verification Stage 3 3 Stage 4 Key Stages run in parallel Design/Build/Qualify Verification 4 5 Stage Gates can be merged 2 Design/Build/Qualify Verification Just in time planning Most scope is not locked Release and Market Requirements Development 2014 HALLIBURTON. ALL RIGHTS RESERVED. 7

8 Program Sanctioning Business Case Development Production Commercialization Initiation Gate Gate Approval Gate Release Gate Release Gate Launch Gate Review Retirement Assessment Stage 0 Definition Stage 1 Design / Build / Qualify Stage 2 Verification Stage 3 Stage 4 Commercialization Stage 5 Lifetime Stage 6 Program Project Mgmt & Business Problem Business Case Management and Program : Resource Management, Risk Management, Schedule Development & Execution, Integrated Launch Plan, Etc. Launch Program Close Product Mgmt & Marketing Product Portfolio Analysis Market Analysis Market Launch and Execution Customer / Commercialization Metrics (Scorecards) Retirement / Obsolescence / Cannibalization Yearly Pricing Review Yearly Product Positioning Review Product Retirement Process Readiness Development Execute Design Plan Execute Verification Plan (Prototype Testing) Execute Plan (Pilot Testing) Operations Design Support Sustaining Cost Reduction Plans Supply Chain & Mfg Initial Manufacturing Assessment Supply Chain / Manufacturing Development & Facilities Prep Execute Production Plans Supplier Monitor Quality Plans Supplier Scorecards Operations Business Need Initial Launch Verification/ Plan Input Operations Deployment Preparation Execute Plan (Pilot Testing) Service / Maintenance Plan (Field / Customer Feedback) Finance/ Accounting Business Case Contributions & Compliance (Legal/HSE) Initial Assessment Regulatory Environmental Analysis Regulatory/Compliance Review 1 Regulatory/Compliance Review 2 IP Landscape and Early IP Opportunities IP Strategy IP Review and File IP Reviews at each Stage Gate 2014 HALLIBURTON. ALL RIGHTS RESERVED. 8

9 Program Initiation Gate 0 - Software Projects Sanctioning Gate 1 Boxes with striped backgrounds to be used where relevant (e.g. standalone software projects) Business Case Development Production Commercialization Approval Gate Release Gate Release Gate Launch Gate Review Retirement 7 Assessment Stage 0 Definition Stage 1 Design / Build / Qualify Stage 2 Verification Stage 3 Stage 4 Commercialization Stage 5 Lifetime Stage 6 Program Project Mgmt & Initial Release Plan Launch Release Close Product Mgmt Business Problem Release and Market Requirements Value Proposition, Messaging, Pricing Release Objective Confirmation Product Reassessment Readiness Development Tier III Support Build and Installation Management Build & Installation Assessment Initial Dev Environment Setup Build & Installation Environment Implementation Product Rollout Channel Readiness Assessment Communication / Marketing Plan & Preparation Training & Support readiness Plan Customer Previews and Feedback Tier I & Tier II Support Rollout Finance/ Accounting Business Case Contributions & Operations Business Need / Partnering Opportunities Initial Launch Plan Input Operations Deployment Preparation Execute Plan (Pilot Testing) Field/Customer Feedback IP/ Compliance Legal/HSE/IT) Landscape & Early IP Opportunities IP & Security Strategy IP, Security, Export & Regulatory Compliance Review and File 2014 HALLIBURTON. ALL RIGHTS RESERVED. 9 IP Reviews at each Stage Gate

10 Feature Complete Gold Candidate Design/Build/Qualify (Stage 2) End of Verification (Stage 3) Agile Box Version 1.0 7Jul2012 End of (Stage 4) Iteration Cycle Potentially Shippable Software For mature agile teams, the gap between end of D/B/Q and end of Verification may be quite small Potentially Shippable Software Release Backlog including defects and technical debt, sized & prioritized Story Clarification Development Testing Retrospection Backlog Grooming for next iteration Exercise and review of past iteration Daily Cycle - Check-Ins - Automate Tests - Continuous Integration - Collaborate Iteration Cycle Development Testing Retrospection Exercise & Stabilize Final Testing Defects Limited Dev Testing Retrospection Showstopper Customer Defects Gap between Gold Candidate and Launch may be short or nonexistent depending on extent of customer validation activities in previous phases Build and Deployment Management. Organizational Change Management. Customer Previews and Feedback HALLIBURTON. ALL RIGHTS RESERVED. 10

11 Execution 2014 HALLIBURTON. ALL RIGHTS RESERVED. 11

12 Executive Mandate Produce a process based on LIFECYCLE that works for software, as much like LIFECYCLE as you can make it. And you have to keep the same stages and gates. Team Landmark Chief Project Manager Cementing Product Manager Consultants Organizational Change Mgmt Expert Professor of Computer Science Product Management Expert, Agile 2 Agile Coaches Organizational Change Mgmt Logistics Discovery Level of software process in each Business Line varied widely Significant variance in the size of software groups Almost all Business Lines leveraged offshoring and distributed teams Challenges around Product Management coverage and Automated Testing Questions around articulating software value when revenue is indirect at best Every Business Line was either using Scrum or planning to adopt Scrum Software development often a black box to the Business Line executives Discovery Dev Pilots Rollout Q1 Q2 Q3 Q4 Q1 Q HALLIBURTON. ALL RIGHTS RESERVED. 12

13 Material 2014 HALLIBURTON. ALL RIGHTS RESERVED. 13

14 2014 HALLIBURTON. ALL RIGHTS RESERVED. 14 Adoption Challenges

15 Challenge: Business lines don t want the process Source: Small Software Shops why does software need to be different? Response It won t look so different to you Executive Sponsorship Peer Support Value to the executive Software is different because Results Cautious acceptance Compliance 2014 HALLIBURTON. ALL RIGHTS RESERVED. 15 Source: Big Software Shops we re already doing fine Response Due diligence Corporate alignment and synergy Value of Gates Results Generally a few opportunities Often some best practices to share Good enthusiasm and buyin

16 Challenge: Change Resistance Issue Awareness Checkbox Adoption Agile resistance among some teams General Change Resistance Response Executive sponsorship Formal Change Management effort Support/Value-add Customize approach by Business Line Results Strong awareness and buy-in Agile skills and adoption are improving Gates are now being held Executives rate that software effectiveness has taken a big step up Establishing a Sense of Urgency Creating the Guiding Coalition Developing a Change Vision Communicating the Vision for Buy-in Empowering Broad-based Action Generating Short Term Wins Never Letting Up Incorporating Changes into the Culture John Kotter: 8 Step Process for Leading Change 2014 HALLIBURTON. ALL RIGHTS RESERVED. 16

17 Challenge: Skills and Staffing Issues Issue Product Management and Product Owner Gaps Role coverage for non-developer roles Gate presentation issues Mitigation Leverage LIFECYCLE Specific Material for Product Managers and Owners Leveraged external expertise Share learnings across divisions Results Steady increase in Product Owner skills and coverage Teams not so heavily skewed toward development General increase in automated testing Gates now generally successful and providing good value 2014 HALLIBURTON. ALL RIGHTS RESERVED. 17

18 Outcome Success of the Adoption = Quality of Product being Adopted x Quality of Rollout Results Corporate buy-in Ad-hoc teams are transitioning to agile Gates are being held, with positive results Cross Business Unit initiatives leveraging the process Cross Business Unit communication Adoption spreading beyond original scope Takeaways Solid executive sponsorship is critical Organized Change Management: Communicate, and communicate again! Offer value, not just a corporate mandate Customize the implementation by Business Unit 2014 HALLIBURTON. ALL RIGHTS RESERVED. 18

19 Thank you. Questions? 2014 HALLIBURTON. ALL RIGHTS RESERVED. 19

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