Understanding What Is Needed For Agile at Scale By Looking at the Value Stream

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1 Understanding What Is Needed For Agile at Scale By Looking at the Value Stream Or, how to use the value stream to poke the box Al Shalloway CEO, Enterprise Consultant Al Shalloway CEO, Co-founder of Lean-Systems Society Co-founder Lean-Kanban University Contributor to SAFe Copyright Net Objectives, Inc. All Rights Reserved 2 1

2 Lean for Executives Product Portfolio Management Business Product Owner Product Owner Onsite SPC Leading SAFe Agile Architecture Product Manager/PO ASSESSMENTS CONSULTING TRAINING COACHING technical Leanban / Kanban / Scrum ATDD / TDD / Design Patterns Lean Management Project Management Copyright Net Objectives, Inc. All Rights Reserved 3 Thus, the task is not so much to see what no one yet has seen, but to think what nobody yet has thought about that which everybody sees. Schopenhauer Copyright Net Objectives, Inc. All Rights Reserved 4 2

3 Agenda 1. Business Agility 2. The Value Stream 3. Why Delays Cause Waste 4. MVPs vs. MBIs 5. Achieving Business Agility Copyright Net Objectives, Inc. All Rights Reserved 5 Goal and Benefit of Business Agility DEFINITION The realization of the highest business value in a shorter amount of time, predictably, sustainably, and with high quality. By working in small delivery increments we continuously adjust to what is needed enabling change to direction at low cost. Copyright Net Objectives, Inc. All Rights Reserved 6 3

4 Value must be defined by the business stakeholders and is unique to the business. This definition is the basis for business initiatives. Copyright Net Objectives, Inc. All Rights Reserved 7 Agenda 1. Business Agility 2. The Value Stream 3. Why Delays Cause Waste 4. MVPs vs. MBIs 5. Achieving Business Agility Copyright Net Objectives, Inc. All Rights Reserved 8 4

5 Common Organizational Structure Marketing Product Management Development Support Copyright Net Objectives, Inc. All Rights Reserved inspired by Dan North, BSC/ADP The Nature of Our Work Marketing Product Management Development Support Copyright Net Objectives, Inc. All Rights Reserved 10 5

6 We Manage Our People this Way even though our value flows this way Copyright Net Objectives, Inc. All Rights Reserved 11 Time-to-Market Marketing Product Management Development Support Copyright Net Objectives, Inc. All Rights Reserved 12 6

7 Time-to-Market Marketing Product Management Development Support Copyright Net Objectives, Inc. All Rights Reserved 13 Agenda 1. Business Agility 2. The Value Stream 3. Why Delays Cause Waste 4. MVPs vs. MBIs 5. Achieving Business Agility Copyright Net Objectives, Inc. All Rights Reserved 14 7

8 Waiting How often does work wait? What percent of the time is our work moving forward? How much of the time is it waiting for something else to be done? How would you know? No one is managing this in most companies. Waiting Marketing Waiting Waiting Product Management Development Support Copyright Net Objectives, Inc. All Rights Reserved 15 the more we push the more we fall behind too many projects projects are too large value delivered too late Copyright Net Objectives, Inc. All Rights Reserved 16 8

9 The Whole Picture Marketing Product Management Development Support Copyright Net Objectives, Inc. All Rights Reserved 17 You don't define value streams You map them. Manage flow and reorganize your talent to reduce time from concept to value realization Copyright Net Objectives, Inc. All Rights Reserved 18 9

10 Lean shifts us from looking at people to looking at the value streams and the workflow to remove delays Copyright Net Objectives, Inc. All Rights Reserved 19 Agenda 1. Business Agility 2. The Value Stream 3. Why Delays Cause Waste 4. MVPs vs. MBIs 5. Achieving Business Agility Copyright Net Objectives, Inc. All Rights Reserved 20 10

11 The Minimum Viable Product Geared towards startups building products for early adopters. First time a product/service is released. Usually built by a small team that can pivot. What do you do when: You are an established company? It is an enhancement to an existing product/service? The teams required to build it are not aligned? Copyright Net Objectives, Inc. All Rights Reserved 21 Minimum Business Increment (MBI) DEFINITION The minimum amount of business value that can be built, deployed and consumed that makes sense from a business perspective Mark Denne and Jane Cleland-Huang Software by Numbers Copyright Net Objectives, Inc. All Rights Reserved 22 11

12 autonomy An MBI is not a reason to deliver less. It is a reason to deliver sooner. It must contain all that is needed for value realization. It provides something to align around. Copyright Net Objectives, Inc. All Rights Reserved 23 actions to realize intent what to do and how the more alignment you have, the more autonomy you can grant alignment intent what to achieve and why Stephen Bungay Art of Action Copyright Net Objectives, Inc. All Rights Reserved 24 12

13 value There s nothing quite so useless, as doing with great efficiency, something that should not be done at all. -Peter Drucker Copyright Net Objectives, Inc. All Rights Reserved 25 Exercise: Value Delivery Your team has three projects. Each will take the entire team one month and delivers one unit of value. Plot value delivery curves for two different scenarios. Scenario 1: Doing the projects serially. Project A Project B Project C time time Scenario 2: Doing the projects in parallel (simultaneously). Assume 20% task switching overhead for each team member. Project A Project B Project C time TIME: 10 MINUTES Copyright Net Objectives, Inc. All Rights Reserved 26 13

14 value value value value Why MBIs are so useful SERIAL PARALLEL C C B B A A time time C C SERIAL MBIs A B PARALLEL MBIs B A C C B B A A time time Copyright Net Objectives, Inc. All Rights Reserved 27 Visualize the result and allow teams to form their own solutions. There is more value created with overall alignment than with local excellence. Don Reinertsen Copyright Net Objectives, Inc. All Rights Reserved 28 14

15 What risks do these approaches lower? Serial risk Parallel value risk value Time Time Copyright Net Objectives, Inc. All Rights Reserved 29 What risks do these approaches lower? incrementally realizing Business Value risk evolving the system value risk value Time Time Copyright Net Objectives, Inc. All Rights Reserved 30 15

16 Agility is about Business Value Increments not Development Cycles Copyright Net Objectives, Inc. All Rights Reserved 31 Viewing SAFe from a Value Stream Perspective 1. Business Agility 2. The Value Stream 3. Why Delays Cause Waste 4. MVPs vs. MBIs 5. Creating Context Across the Value Stream 6. Achieving Business Agility Copyright Net Objectives, Inc. All Rights Reserved 32 16

17 Enterprise Portfolio strategic themes Value stream Portfolio Epics Solutions, MVPs LEAN PORTFOLIO MANAGEMENT STRATEGIC PLANNING BUSINESS TECHNOLOGY STAKEHOLDER STAKEHOLDER ENTERPRISE ARCHITECT OTHER STAKEHOLDER SAFe Large Solution SOLUTION ARCHI/ENG SOLUTION MGNT Solutions Solutions Capabilities Program SOLUTION TRAIN ENGINEER Program MMFs, Features, PRODUCT MANAGER SYSTEM ARCHITECT Team RTE PRODUCT OWNER PLAN- NING IMPLEMENTATION & INTEGRATION RELEASE Team s Features, stories, SHARED SERVICES OPS SUPPORT MARKETING Note: Feedback loops are not shown but are present throughout the value stream Copyright Net Objectives, Inc. All Rights Reserved 33 SAFe LEAN PORTFOLIO MANAGEMENT STRATEGIC PLANNING LEAN-AGILE PRODUCT MANAGEMENT BUSINESS TECHNOLOGY STAKEHOLDER STAKEHOLDER strategic themes ENTERPRISE ARCHITECT OTHER STAKEHOLDER Portfolio Epics Solutions, MVPs RTE SYSTEM ARCHITECT Solutions Capabilities Solutions PRODUCT OWNER PRODUCT MANAGER Program MMFs, Features, PLAN- NING Team s Features, stories, Solutions Train IMPLEMENTATION & INTEGRATION SHARED SERVICES OPS RELEASE SUPPORT MARKETING Value stream SOLUTION ARCHI/ENG SOLUTION TRAIN ENGINEER SOLUTION Copyright Net Objectives, Inc. All Rights Reserved 34 MGNT 17

18 Technology Delivery Manager can be thought of as a combination of the RTE & STE roles. Application Development Manager encompasses the solutions roles in SAFe Business Architect attends to the relationship between new offerings and existing capabilities LEAN PORTFOLIO MANAGEMENT STRATEGIC PLANNING LEAN-AGILE PRODUCT MANAGEMENT BUSINESS TECHNOLOGY STAKEHOLDER STAKEHOLDER What to invest in strategic themes Initiatives strategic themes SAFe ENTERPRISE ARCHITECT Portfolio Business Increments OTHER STAKEHOLDER Portfolio Epics Solutions, MVPs TECHNOLOGY DELIVERY MANAGER RTE SYSTEM PRODUCT ARCHITECTMANAGER APPLICATION BUSINESS DEV MGR ARCHITECT MBI MBIs Solutions Capabilities Solutions PRODUCT OWNER Program Features Program MMFs, Features, Team s Features, stories, PLAN- NING Solutions Train IMPLEMENTATION & INTEGRATION FLEX with MBIs SHARED SERVICES OPS RELEASE SUPPORT MARKETING Value stream SOLUTION ARCHI/ENG SOLUTION TRAIN ENGINEER SOLUTION Copyright Net Objectives, Inc. All Rights Reserved 35 MGNT A system must be managed. It will not manage itself. Left to themselves, components become selfish, competitive, independent profit centers, and thus destroy the system The secret is cooperation between components toward the aim of the organization. W. Edwards Deming Copyright Net Objectives, Inc. All Rights Reserved 36 18

19 Viewing SAFe from a Value Stream Perspective Value streams are mapped, not defined Useful for seeing context of downstream items MBIs are useful concepts to encapsulate solutions, MVPs, MMFs, capabilities, enablers Copyright Net Objectives, Inc. All Rights Reserved 37 Lean for Executives Product Portfolio Management Business Product Owner Product Owner alshall@netobjectives.com portal.netobjectives.com Onsite SPC Leading SAFe Agile Architecture Product Manager/PO ASSESSMENTS CONSULTING TRAINING COACHING technical Leanban / Kanban / Scrum ATDD / TDD / Design Patterns Lean Management Project Management Copyright Net Objectives, Inc. All Rights Reserved 38 19