Scrum Studio A Transition to Enterprise Agility

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1 Scrum Studio A Transition to Enterprise Agility by Scrum.org Improving the Profession of Software Development Dave West CEO / Product Owner Scrum.org

2 Improving the profession of software development

3 Who am I and what are we going to talk about Dave West Product Owner / CEO Scrum.org Agenda 1. Scrum and traditional organizations 2. Agile adoption models 3. What is Scrum Studio 3

4 You like potato and I like potahto You like tomato and I like tomahto Potato, potahto, tomato, tomahto Let's call the whole thing off Louis Armstrong Lets call the whole thing off Scrum and traditional organizations 4

5 Observation Exceptions are organizations that have done this the hard way, through continuous improvement on their own. Scrum has been introduced into most IT organizations and ISVs/software houses. The need for large scale organizational agility through Scrum product development is largely unfilled. The transition from waterfall to Scrum has stalled.

6 Why Are Agile Transformations Difficult? 6

7 Culture Change Agile Transformations Current IT organizations fill a need. Attempting to change them to become agile not only interrupts the vital work they currently do, but requires that everyone and everything become something new. 7

8 What Is a Culture? In the pressure of systems development, attempting to mix cultures is wasteful, frustrating, and produces failures and frustrations. Culture is a way of seeing things, or knowing what to do in specific circumstances. Culture is a body of habits that bind people together into a cohesive. Mixing cultures can be done if enough time is provided, guidance and insights are made, and good will ensures that nobody loses.

9 Agile Culture Habit Empiricism Short Cycle Count on Your People Transparency Failure Humor Description Practice the art of the possible. Focus on what is really happening, rather than trying to get what you want to happen. Help people relax the desire for certainty. Short cycle efforts that create learning. Give people direction and help them do the best they can. Do not measure, control, and push them to do what you think they can do the way you think they should do it. Everyone must know what is happening to make the best decisions possible. Create a safe environment for it to flourish. Accept that it will occur. Understand that failure may lead to greater success. Understand that failure is not the end of the world. Who knows, someone else may learn from it. 9

10 Culture Comparison Attribute Traditional Agile Quality Tested at end of development and corrections made. Built in during work. Authority Transparency People Responsibility, Accountability Failure Top down, command and control through management and plan. People do their work and report % done. Only artifacts are visible. Management is very important, resources are fungible. Ensure plausible deniability upon failure. To be avoided. Punishment when failure occurs and becomes visible. Bottom up intelligence, executing best approach to problems. Collaboration. Collaboration and sharing fostered. Complete increments often. People create value in well-formed teams; management bottom, facilitation top. Always focused and known. Occurs and is used to learn. Repeated failure without learning avoided. 10

11 Each Culture Views Success Differently TRADITIONAL All requirements delivered Project ends on planned date Project stays within budget Project follows plan Needed changes are accommodated AGILE Value is maximized Most valuable requirements are turned into functionality Quality is sustained Staff/customers are valued 11

12 Scrum in a Waterfall Culture GETTING PROMOTED WATERFALL Avoid or obscure failures Deliver all functionality within budget by the due date Find plausible deniability if all goals plus changes are not successful Manage upward Avoid risk BEING SUCCESSFUL AGILE Enable the people doing the work Maximize communications and transparency Learn from failures Control risk Promote empiricism to best possible outcomes 12

13 Problems with Mixing Cultures I see the following problems over and over in Scrum projects that are run in the traditional IT organization: Waterfall thinking persists Waterfall culture bleeds onto Scrum projects Effort to gain agility is diluted 13

14 XXXXXXX Agile adoption Models 14

15 Current Adoption Models 1. Subsume Scrum within the traditional organization bottom up 2. Paste an agile approach on top of the current organization, intermingling cultures. (SAFe) 3. Gradually and incrementally change traditional culture into an Agile organization. (Agility Path) 4. Scrum Studio for Agile innovation 15

16 Scrum Adoption Models Subsume Scrum within the traditional organization bottom up 16

17 Mixing Cultures Traditional IT and Agile CIO, CTO, VP Engineering Product Line Manager Product Line Manager Product Line Manager Functional Manager Functional Manager Functional Manager Usability DBA PMO Infrastructure Quality Assurance 17

18 The Reality of Scrum Is Water Scrum Fall 18

19 Scrum Adoption Models Paste an Agile approach on top of the current organization, intermingling cultures. (SAFe) 19

20 Paste the New on Top of the Existing Culture Like when the United States brought democracy to Iraq by pasting it on the current culture. CIO, CTO, VP Engineering CIO, CTO, VP Engineering Product Line Product Line Manager Product Line Manager Product Line Manager Manager Functional Functional Functional Manager Functional Manager Functional Manager Functional Manager Manager Manager PMO Projects PMO Projects Projects Projects Projects Projects Product Line Manager Product Line Manager Usability Usability DBA DBA Infrastructure Infrastructure Quality Assurance Quality Assurance 20

21 Scrum Adoption Models Gradually and incrementally change traditional culture into an Agile organization. (Agility Path) 21

22 Do not skip any stage. Do not stop too soon or ignore the anchoring. Immediate results. Embedding takes years. John Kotter s Organizational Culture Change Model 1. Establish a sense of urgency 2. Create a guiding coalition 3. Develop a vision and strategy 4. Communicate frequently 5. Create an Agile implementation backlog 6. Empower broad-based action 7. Generate short-term wins 8. Anchor new approaches into the culture 9. DOES NOT WORK - Cisco 22

23 Continuous Culture Change and Improvement 23

24 What is Scrum Studio? 24

25 Abstract Be the best you can rather than something that your customer regrets having worked with. The Scrum Studio is a new initiative that can be used for innovating and creating, and recreating new possibilities and products. Scrum Studio builds on professionalism, best practices, and the best of what our profession has to offer. But, undertaking the Scrum Studio and building each product there has to be a conscious, informed decision.

26 Completely Separate from Existing IT organizations 1. Agile Culture 2. Product-oriented 3. Planning through Operations 4. All services and administration provided 5. Onboarding qualified products 6. Value based measurement and management 7. Persistent team and tribal culture 8. Methodology driven development 9. Modern, proven tool sets and infrastructure 10. Professional software Scrum Studio

27 Professional Scrum Studio Requirements Separate from rest of organization. Own budget, management, personnel. Every Product has its own budget. Own operational environment and development infrastructure. Everyone must be retrained on Scrum and be qualified. Complete development environment defined by Scrum Development Kit (SDK) must be adhered to. Value of work will be measured periodically with EBM (Evidence-Based Management). Professional, adhering to Agile and Scrum values and principles. Products instead of projects with dedicated staff for business, development, operations, and infrastructure engineering. Products and people must be vetted before entering and using Studio. 27

28 Scrum Studio 1. Scrum Studio Leadership Administration, HR, Finance Professional organization 2. Value driven development EBM (Evidence-Based Management) 3. Product Services Onboarding and sustenance SDK (Scrum Development Kit) development and customization Operations infrastructure 4. Shared Services with IT Data UX 5. Product Strategy and formulation Development Operations 28

29 Leadership Self Organization» Allows teams and Nexus s to decide A safe environment» Failure is key to learning An environment that promotes the Scrum values» Courage, Focus, Commitment, Respect and Openness Encourages professionalism» Apprentice, journey, master type model Can shield / protect the Studio from the other organization» Works the politics necessary to thrive Includes finance Manages its own P&L» Treats Studio as a project rather than cost center Includes HR Hires, trains and supports Studio employees» Includes compensation and contracts to support Agility 29

30 Value Driven Development Current Value» Revenue per employee» Employee satisfaction» Customer satisfaction» Product cost ratio Time to market» Release frequency» Release stabilization» Cycle time Ability to innovate» Installed version» Usage Index» Innovation rate» Defect density» Product cost ratio 30

31 Product Services Onboarding products Operating products 31

32 Scrum Development Kit (SDK) An artifact that enables you to scale and automate your definition of done Development environment(s) Done definition Practices, done to ops Infrastructure tools Architecture tools (API, services) Development standards Apps and module calls Supports complete ALM toolsets 32

33 Shared Services The reality is there will be some dependencies on the legacy organization But each dependency may reduce your ability to be agile Concentrate on keeping them to a minimum and making them transparent Work with the organization to remove them Some things to watch for Dependencies that are not clearly encapsulated and have a nice interface Dependencies that require work that is placed in a queue Legal and compliance that have their own time table 33

34 Product Product ownership inside the Studio Funded as a product NOT as a series of changes to products Vision, strategy, roadmap all live within the Studio Interface with traditional organization will depend on many factors including» Coupling between business plans» Dependency on traditional support services and channels» Regulation and compliance requirements» Other legal requirements associated with go to market That means the Studio includes» Product leadership» Product management» Operational support» Product marketing / enablement / training 34

35 Success in management requires learning as fast as the world is changing. -Warren Bennis Closing 35

36 Summary Traditional organizations are NOT built for agility they are built for efficiency Putting Scrum into a traditional organization is always lipstick on a pig If you want an Agile Business then you need to build a different sort of organization The Scrum Studio is an environment for Agile But that means» Separate organization» Different measurement» Only professionals inside» Scrum and Nexus product teams» SDK Think of it as building a startup to deliver innovation within a environment built for scale 36

37 Thank You 37

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