How to start implementing Agile into organization? Agile 4 layers framework as a guideline. Agilia Conference 2015

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1 How to start implementing Agile into organization? Agile 4 layers framework as a guideline Michal Vallo Jaroslav Procházka Agilia Conference 2015

2 Michal Vallo Jaroslav Procházka

3 Agile is not a SW development approach it is a company cultural change

4 Therefore need to be supported by business driven by business done together with business and with people (employees, customers)

5 Agile implementa>on differs company by company Different company needs Different implementa4on and used methods

6 Organizational change Define, what is transformation in your environment! Objective: Improve (business) performance Always Business Driven Takes time (years) Objectives changes during implementation Aguarra, s.r.o., Plzeňská 157/98, Praha 5, 6

7 How to start organization change? Traditional Teaching (Coaching) development team Scrum My approach Understanding true needs - ASSESSMENT Aguarra, s.r.o., Plzeňská 157/98, Praha 5, 7

8 Agile Transformation 4 Layer Framework Crystal Clear Prince 2 ITIL DaD Process KPI Collaboration The Work Purpose Recognition Challenge Growth SCRUM Empowerment DSDM Visualization Operation Work Environment Team Engagement Vision Project Management Testing Business Domain LEAN Principles Continuous Integration XP Finance Beyond Budgeting Business Domain Customer Engagement Product Parameters Service Parameters TOC - Theory of Constraints: Elliyahu M. Goldratt Aguarra, s.r.o., Plzeňská 157 / 98, Praha 5, 8

9 Consultants simplify the problem. Consultants often do: Manager have problem with those below him. - Jump to training Scrum/Kanban => Selling MD - Scrum and Methodology is not a problem = low risk strategy. Pitfalls: Organizational hierarchy. - No visible achievements (business related) - Sustainability - Reluctancy to change - People becomes dissillusioned. Aguarra, s.r.o., Plzeňská 157/98, Praha 5, 9

10 Assessment. Listening: What is (declared) problem? Ambiguity: Real vs. Declared problem. Why do you want to be agile? True motivation. What are you willing to do for Change? Who? With whom? What are you NOT willing to do? Constrains. Aguarra, s.r.o., Plzeňská 157/98, Praha 5, 10

11 Assessment. Requirements vs. Customer needs (value) Why are we doing what we do? Where is / being created Value? How to measure Value? For whom Value? Who is customer? What is Value for customer? Aguarra, s.r.o., Plzeňská 157/98, Praha 5, 11

12 US with clear business value/benefit Early and frequent customer involvement Contract form as a sign (WoW over delivery details) Demo as a sign Accep>ng the value delivery how? Measuring the success

13 Measurements & Metrics Transformation process must be measured. Production speed Defects Customer Satisfaction 5 4,5 4 3,5 3 2,5 2 1,5 1 0,5 0 Employee Satisfaction Value Flow Revenue Other ideas: Interrupts, unplanned overtime, downtime planned/unplanned, innovation, hotfixes,... Profit Margin Balanced Scorecard Aguarra, s.r.o., Plzeňská 157/98, Praha 5, 13

14 Exercise 1 Who is your customer? What is a value for them? Does your US have clear business value/ benefit stated? How do you accept delivered value? Time: 2 minutes

15 Layer: Mo4va4on

16 Management focused on people manager s goal is to develop organiza>on manager is enabler, lever

17 Manager: has a vision communicates it makes decisions based on it

18

19 Exercise 2 Do you have a vision? Write it down! What it means for them in daily context? for Line Manager for PMO for Sales for DEV and Test Time: 2 minutes

20 Manager: supports people mo4va4on creates environment (hygiene factors) removes impediments

21 Exercise 3 Do you have F2F regular checks? Do you know what mo>vates your people? Does it fit in your vision? My rewards My frustra4on

22 CASE STUDY case to demo long term process of change ambiguous result... Aguarra, s.r.o., Plzeňská 157/98, Praha 5, 22

23 Assisting with Agile Organization Business: Custom Data Processing Company Size at start: cca Branches: Europe, Asia, America Revenue goal = US$ Million Reason for Agile: Development of project management system. We need to fix some problem with team in production. Aguarra, s.r.o., Plzeňská 157 / 98, Praha 5, 23

24 Agile Transformation Historical attempts: - Select existing system = > Fail - Create own system = > Fail We cannot use existing system, we are VERY SPECIAL here and we have COMPLICATED PROCESS here. Aguarra, s.r.o., Plzeňská 157 / 98, Praha 5, 24

25 Scrum Training 01 Training SCRUM Kick Off We use Scrum for 1 YEAR and somehow it does not work A-HA moments: Scrum is different from what we do now We DO / DO NOT BELIEVE it will work. The fastest way to burn money is jump into methodology. Aguarra, s.r.o., Plzeňská 157 / 98, Praha 5, 25

26 Assessment 01 Training SCRUM Kick Off PROBLEM: 1) Scrum team does not deliver! 2) Save PROJECT running! Invested 6-9 M CZK 04 Inspection Scrum Team Performance 04 Consulting Assessment + Product Design 20+ departments Assessment Motivation Value Response t/change Knowledge VISION We need system!!! Aguarra, s.r.o., Plzeňská 157 / 98, Praha 5, 26

27 Assessment Organization Number of users: cca 40 Departments: 20+ Typical request: change button If you have problem, hire more people! Aguarra, s.r.o., Plzeňská 157 / 98, Praha 5, 27

28 Value Chain Value Chain Analysis How exactly is job done? Where is the value? Key Discovery % of processes are identical in principle. Empower Product Owner to deliver radical change! 1 Play with Scrum Process, Team and PBL to gain productivity. 2 - OPEX: Reorganize delivery process reduce number of departments reduce number of people by Aguarra, s.r.o., Plzeňská 157 / 98, Praha 5, 28

29 PBL Prioritization Release 1 Metrics - How to measure impact? Release 2 1) How many new users? 2) How much money? (Savings / Earnings) Time No of Administrators (PM) a) Time to delivery (Small Batch) b) Estimate (Large batch) Release 3 Aguarra, s.r.o., Plzeňská 157 / 98, Praha 5, 29

30 Scrum and Team 01 Training SCRUM Kick Off 03 Inspection Scrum Team Performance 03 Consulting Assessment + Product Design 8 Coaching Scrum Team 10 Coaching Performance Scrum Team Performance PBL - Prioritized - True Coaching Scrum Master Creating Team (10) + including change of team members. Performance improvement. Aguarra, s.r.o., Plzeňská 157 / 98, Praha 5, 30

31 Achievements & Failures Track Users in 5 months. Project no longer may be put on halt. We have created team, which delivers. Use of product deliveres true value. Aguarra, s.r.o., Plzeňská 157 / 98, Praha 5, 31

32 Failures Track 2 Management Disconnection. Failure to materialize possible savings on business process reorganization expected to 5 million Euro. Aguarra, s.r.o., Plzeňská 157 / 98, Praha 5, 32

33 Agile Transformation 4 Layer Framework Crystal Clear Prince 2 ITIL DaD Process KPI Collaboration The Work Purpose Recognition Challenge Growth SCRUM Empowerment DSDM Visualization Operation Work Environment Team Engagement Vision Project Management Testing Business Domain LEAN Principles Continuous Integration XP Finance Beyond Budgeting Business Domain Customer Engagement Product Parameters Service Parameters TOC - Theory of Constraints: Elliyahu M. Goldratt Aguarra, s.r.o., Plzeňská 157 / 98, Praha 5, 33