EPMO Achieving Leagility through Implementing Lean and Agile An Organizational Case Study. Session #

Transcription

1 EPMO Achieving Leagility through Implementing Lean and Agile An Organizational Case Study Session # Waffa Karkukly, Ph.D, MIT, PMP 2013 Permission is granted to PMI for PMI Marketplace use only.

2 Outline About the organization EPMO The champion The organization situation Why Lean and Agile The Approach Managing the Change The Learning Summary 2

3 About The Organization Together, Interac Association and Acxsys Corporation operate an economical, world-class debit system that serves Canadians well. Among the highest debit users in the world We securely connect Canadians to their money at the ABM, at retailers across Canada and the US, and online through web based services for online purchases and P2P payments.

4 About EPMO PMO established in 2010 a neutral Enterprise PMO across the business and IT. Mandate: Focus on streamlining the Right initiatives and Improve project delivery Knowledge of PMO head with Lean and Agile approaches Ability to establish executive steering committee and governance flexibility and adaptability to change direction and approach

5 EPMO strength and challenges Interac/Acxsys employs three lifecycle models in various elements of business and operations: Product Development Life Cycle (PDLC), Project Management Life Cycle (PMLC), and System Development Life Cycle (SDLC) PDLC PMLC SDLC Strengths and Challenges

6 The situation The payments landscape is evolving at a fast pace as Canadian consumers increasingly adopt newer mechanisms to pay for products and services Pace of Change in Payments Landscape Product Portfolio Diversification Needs to deliver on it s enterprise strategy of diversifying into new, emerging markets increased competitive pressure on Interac s core products as global card schemes Increased Competitive Pressure Need for an Integrated Interac Delivery Model Speed-tomarket Need to improve speed-to-market for new products / services and deliver successfully to build credibility Need to deliver on a large volume of strategic initiatives to drive competitive advantage Volume of Strategic Projects Project Complexity Need to integrate with external partner increasing project complexity

7 Why lean and agile Lean Focuses primarily on customer satisfaction through quality and speed. Secondly on improving processes through minimizing defects. Involves moving the organization through three major stages of change and becomes integrated into the organization s culture. Foster a high trust culture through transparency, reducing the need to rely on bureaucracy to make decisions. Agile A set of principles and practices for delivering software Continuous innovation, product adaptability, improved time to market, people and process adaptability, and process adaptability

8 Lean focus Primarily on customer satisfaction through quality and speed. Secondly on improving processes by minimizing defects. Value stream mapping through VOC (voice of the customer)and process flow. Source: February 3, 2011, Transforming Application Delivery Forrester report

9 Agile focus Continuous Innovation Product Adaptability Improved Time To Market People and Process Adaptability Reliable Results Source: Software Project Manager s Bridge To Agility (Sliger& Broderick)

10 Benefits of adopting lean / agile for technology product delivery 39% Accelerate Time to Market 37% Manage Changing Priorities 29% 26% 23% 18% 16% 15% 14% Increase Productivity Better Align IT / Business Enhance Software Quality Project Visibility Reduce Risk Simplified Process Reduced Cost The top 2 reasons are very closely aligned with Responsiveness and Agility! VersionOne: State of Agile Survey (2011, n=6000+), percentages show option respondents marked as Highest Important -

11 Organizations across industries have adapted lean approaches Building people then building products Toyota Production System (TPS) A bad process beats a good person every time System of Profound Knowledge Minimize waste and remove variability Lean Six Sigma Focusing on the bottleneck Theory of Constraints Focus on queues and flow Lean Product Development Agile software development Agile Manifesto

12 Implementation approach

13 The approach structure Building people then building products Building process tailored to the organization encompassing cycles from product ideation to operationalization monitored through gates Start small and pilot before going big Build visualization tools (Kanban boards) Build frequent retrospectives Build competency model to measure Manage change Reward and celebrate

14 The approach building people Building people then building products Formal C-Level on value of lean and agile and benefits Formal middle management on new ways of managing Educate all cross-functional teams, new collaboration techniques through visualization and self managed teams Provide time to attend lean and agile tours and conferences JIT Training at all levels Game learning - Get Kanban!!

15 Non- Technology Regular Maintenance New Products or Major Enhancement The approach building processes Illustrative Delivery model Value Stream Map for Three Project Types Initiate and Plan Elaborate Deliver Release and ongoing Idea Ideation Elaboration Delivery Release Ongoing G Validation G G G G Initiate and Plan Analysis Delivery Release G G Initiate and Plan Design Delivery Launch and Ongoing G G Toll-Gate Review Iterative Cycle

16 The approach building tools Kanban is about introducing a set of small J-Curve effects to a less disruptive path to agility Kanban approach to change New Performance Change Implemented Old Performance Today Traditional Big Bang Change Kanban allows teams to apply Lean thinking to everyday work and acts as an incremental change agent

17 Taking inspiration from modern agile thinking Theory of constraints Systems thinking Lean Manufacturing System of Profound Knowledge Kanban Core Properties Visualize Work Limit Work in Progress Measure and Manage Flow Make Process Policies Explicit Enable Continuous Improvement

18 The approach building measures Plan current phase Size work each other and output Update progress weekly Review progress report weekly

19 Managing the Change

20 Managing change Train and educate Build allies and champions Start small but think big Cultural and Behavioral Change Leadership Alignment and Communication Process Enablement Delivery Model Process Adoption Capability Development Pilots (Lean / Agile / Kanban Adoption)

21 Managing change

22 Pilot and rollout Pick projects volunteered by their project sponsors Select 3-4 pilots of projects with various stages Ensure projects can run at least a gate review Perform frequent retrospectives Have daily Kanban standup Assign Kanban champions Assign process coaches and facilitators to pilot projects Adjust and make changes to the process framework Educate teams to be transparent

23 Start small approach on pilot projects Initiate and Plan Validate through Pilots (test and learn) Scale Delivery Model Delivery Model Pilot Projects Project 1 Target Coverage for Pilot* Ideation Validation Elaboration Delivery Release Core Team for Projects Project 2 Project 3

24 Management: A project Kanban system for delivery model Idea Backlog Ideation Idea Validation Elaboration Iteration Planning Iteration Backlog Delivery G G G Future Current IP Done Next Iteration G Iterations Iteration R D B T Ready for Release Idea Idea Idea Project Project MMF1 F10 F8 F7 F5 F3 F2 F1 MMF2 MMF3 F11 F9 F6 F4 Assumptions Backlog IP Learn F12 A4 A3 Pursue A5 A1 A6 Pursue but Modify A2 Pivot Increased diligence on Product Ideation on the through early stage validation and learning Evolutionary approach towards product delivery by focusing on breaking down work and reducing variability Emphasis on accepting work in small batches but delivering more frequently Focus on improving work flow by removing bottlenecks and reducing wait times

25 Sample of Kanban in action

26 Retrospective type: 4 Ls Identify progress and celebrate it The Retrospective is a chance for the team to act like a team, hearing every voice, integrating their perspective and reaching consensus on how to move forward, better. Closure: it s difficult to start something new when something else remains mentally or emotionally unclosed Regardless of what we discover, we understand and truly believe that everyone did the best job they could, given what they knew at the time, their skills and abilities, the resources available, and the situation at hand. - Kerth s Prime Directive for Retrospectives

27 Retrospective type: 4 Ls List what we: Liked Learned Lacked Long for

28 Sample Retrospective Liked Lacked Learned Longed For

29 Competency overview Objective Qualitative mechanism to validate the success of Delivery Model change components Key behaviors and techniques assessed against a maturity scale Competency chart completed with the teams on a frequent basis To complete, teams will self assess against the behaviors and techniques Maturity Scale Non- Existent (1) Knowledgeable (2) Applied with Support (3) Applied Independently (4) Measurable & Optimized (5)

30 Sample Competency

31 Transparency provides the underpinning for a high trust culture...

32 The learning Reserve enough slack to deliver fast, instead of maximizing utilization Treat unfinished work as a liability, rather than an asset Move forward with imperfect information instead of waiting for the perfect plan Foster a high trust culture through transparency, reducing the need to rely on bureaucracy to make decisions

33 Recap The role of PMO as a champion Why Interac/Acxsys adopted Lean and Agile How to go about approaching and structuring Lean and Agile How to measure its success and sustain the CI journey

34 References Appelo, Management 3.0, leading agile developers developing agile leaders Derby and Larsen, Agile Retrospectives: Making Good Teams Great Highsmith, Agile Software Development Ecosystem Hoek. V, The thesis of leagility revisited, International Journal of Agile Management Systems, Vol.2, No.3, pp Sliger and Broderick, The Software Project Manager s Bridge To Agility State of Agile, ults.pdf Transforming Application Delivery. Forrester report, February 2011 Womack and Jones, Lean Thinking: Banish Waste and Create Wealth in Your Corporation, Revised and Updated

35 Questions

36 Contact Information Waffa Karkukly, Ph.D, PMP Session # 36