Addressing Enterprise Complexity with the
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1 Addressing Enterprise Complexity with the Scaled Agile Framework Colin O Neill July 23, Scaled Agile, Inc. and Leffingwell, LLC Scaled Agile Scaled Framework Agile, Inc. and is Leffingwell, a trademark LLC. of All Leffingwell, rights reserved. LLC. 1
2 Speaker President, APAC Operations, Scaled Agile, Inc. SAFe Principal Contributor Worked with some of the world s largest companies Including John Deere, Walmart, and Safeway Lean Agile Leadership and Agile Center of Excellence enthusiast colin.oneill@scaledagile.com 2
3 Agenda World Complexities About the Scaled Agile Framework How the Framework Addresses Complexities Business Results Questions 3
4 We Live in a Complex World 4
5 Keeping Pace Our methods must keep pace with an increasingly complex world Our modern world runs on software. What doesn't now, likely will soon. We ve had Moore s Law for hardware, and Moore s Law+ for envisioning what software could do But our prior development practices waterfall, RAD, iterative and incremental haven t kept pace Agile shows the greatest promise, but was developed for small team environments We need a new approach one that harnesses the power of Agile and Lean but applies to the needs of the largest software enterprises 5
6 Aspects of Complexity 1. Too Many In-Flight Projects 2. Unaligned Organization 3. Thousands of Practitioners 4. Distributed Teams 5. Millions of Lines of Code 6. Chaotic Architecture and Bloated Technology Stack Adapted from 6
7 About the Scaled Agile Framework 7
8 The Scaled Agile Framework (SAFe) The Scaled Agile Framework is a proven, publicly-facing framework for applying Lean and Agile practices at enterprise scale Synchronizes alignment, collaboration and delivery Well defined in books and now on the web Scales successfully to large numbers of practitioners and teams Core values: 1. Code Quality 2. Program Execution 3. Alignment 4. Transparency 8
9 First, Some Thoughts on Agile Methods Scrum Works great. Less filling. Ubiquitous. Scrumptious. Let s use it. Extreme Programming Really great code from really great coders Extremely useful. Let s apply it Kanban Clearest possible thinking on flow, demand management and limiting WIP Very WIP Limiting. Let s learn from it 9
10 Roots of the Scaled Agile Framework Iterative and Incremental Development Lean Thinking Agile Development Product Development Flow Field experience at enterprise scale 10
11 Contributors Creator and Chief Methodologist Associate Methodologist Dean Leffingwell Principal Contributors Drew Jemilo Colin O Neill Alex Yakyma Alan Shalloway Acknowledgements Enterprise Adopters Community 11
12 12
13 Agile Teams Empowered, self-organizing, self-managing teams with developers, testers, and content authority Teams deliver valuable, fully-tested software increments every two weeks Teams apply Scrum project management practices and XP technical practices Teams operate under program vision, system, architecture and user experience guidance 13
14 Scale to the Program Level Self-organizing, self-managing team-of-agile-teams committed to continuous value delivery Continuously aligned to a common mission around enterprise value streams Deliver fully tested, system-level solutions every 8-12 weeks. Common sprint lengths and normalized estimating Face-to-face planning cadence provides development collaboration, alignment, synchronization, and assessment 14
15 Scale to the Portfolio Centralized strategy, decentralized execution Investment themes provide operating budgets for release trains Business and architectural epic kanban systems provide visibility and work-in-process limits for product development flow Enterprise architecture is a first class citizen Objective metrics support governance and kaizen 15
16 What s Behind the Framework? 16
17 Lean Thinking Provides the Tools We Need Respect for People Product Development Flow Kaizen 17
18 Product Development Flow Respect for People Product Development Flow Kaizen Reinertsen, Don. Principles of Product Development Flow 1. Take an economic view 2. Actively manage queues 3. Understand and exploit variability 4. Reduce batch sizes 5. Apply WIP constraints 6. Control flow under uncertainty: cadence and synchronization 7. Get feedback as fast as possible 8. Decentralize control 18
19 Complexity: Aspect #1 Too Many In-Flight Projects 19
20 The Portfolio Kanban System The Portfolio Kanban System manages the flow of Epics with visibility and WIP limits Makes the strategic business initiative backlog fully visible Brings structure to the analysis and decision making Provides WIP limits to ensure the teams analyze responsibly, and do not create unrealistic expectations Helps drive collaboration amongst the key stakeholders in the business, architecture and development teams Provides a quantitative, transparent basis for economic decision-making for the most important business decisions 20
21 The Agile Release Train The Agile Release Train delivers solutions 21
22 The Agile Release Train The ART is a long-lived, self-organizing team of agile teams that delivers solutions A virtual organization of 5 12 teams ( individuals) that plans, commits, and executes together on a common cadence Aligned to a common mission via a single program backlog Operates under architectural and UX guidance Produces valuable and evaluate-able system-level Potentially Shippable Increments (PSI) every 8-12 weeks Define new functionality Implement Acceptance Test Deploy Repeat until further notice. Project chartering not required. 22
23 Complexity: Aspect #2 Unaligned Organization 23
24 Alignment Alignment Alignment, from Portfolio to Program to Team, is built into the framework Business Owners Clear content authority Face-to-face planning Aligned Team, Program and Business Owner objectives Cross-team and crossprogram coordination Architecture and UX guidance Match demand to throughput 24
25 Release Planning Cadence-based PSI/Release Planning meetings are the pacemaker of the agile enterprise Two days every 8-12 weeks Everyone attends in person if at all possible Product Management owns feature priorities Development team owns story planning and high-level estimates Architects, UX folks work as intermediaries for governance, interfaces and dependencies Result: A committed set of program objectives for the next PSI 25
26 Complexity: Aspect #3 Thousands of Practitioners 26
27 How Big Can Agile Release Trains Be? Effective Agile Release Trains typically consist of people Optimum ART size is based on: Dunbar s number a suggested cognitive limit to the number of people with whom one can maintain stable social relationships * Dunbar s number a range of people Empirical evidence. Beyond 125, logistics and interteam dependencies are more difficult. Alignment is harder to achieve. Queue size and WIP. Larger numbers of teams create more dependencies (per team), longer delay queues, and more work in process Internal queue BO * 27
28 Program Backlog Program Backlog Program Backlog Portfolio Backlog Self-organized ARTs in the Portfolio Strategy Portfolio Vision... Investment Themes Kanban Business Epics Architectural Epics Agile Programs Themes Drive Release Train Operating Budgets 28
29 Complexity: Aspect #4 Distributed Teams 29
30 Distributed development SAFe evolved in distributed environments where program teams can be on different continents Joint ceremonies Backlog grooming Release planning System demo Inspect & Adapt Other practices Local content authority Collective ownership Integration and branching approaches 30
31 Distributed PSI Planning Used by permission of Infogain Corporation 31
32 Complexity: Aspect #5 Millions of Lines of Code 32
33 Code Quality You can t scale crappy code Automated Testing Agile Architecture Continuous Integration Collective Ownership Test-First Refactoring Pair Work Code Quality Provides: Higher quality products and services, customer satisfaction Predictability and integrity of software development Development scalability Higher development velocity, system performance and business agility Ability to innovate 33
34 Program Composition SAFe recommends feature-oriented teams for the critical mass of the program Feature orientation fosters holistic view of the codebase Faster cycle time prevents knowledge depreciation Fast feedback allows to capture defects with minimum damage Feature team Feature team Feature team Component team Component team Feature team Feature team Feature team 34
35 Complexity: Aspect #6 Chaotic Architecture and Bloated Tech Stack 35
36 Level of abstraction Intentional Architecture and Emergent Design Intentional Architecture and Emergent Design enable programs to effectively create and maintain large-scale solutions High Now Intentional Architecture System Architect Emergent Design Low Teams The Principle of Early Contact: Make early and meaningful contact with the problem. -- Reinertsen 36
37 Design Simplicity Design simplicity enables fast response to changing requirements Welcome changing requirements, even late in development. Agile processes harness change for the customer's competitive advantage. -- Principle 2 of Agile Manifesto Design simplicity includes: Using a simple common language to describe the system Keeping the solution model as close to the problem domain as possible Making object / component interfaces express the intent Following good old design principles: Open-Closed, Single Responsibility, etc. Continuously refactoring to support all of the above What s the simplest thing that can possibly work? --Ward Cunningham 37
38 Business Results 38
39 Success Stories SAFe Enterprises John Deere Nokia BMC Software Nordstrom Visa TradeStation Technologies Tripwire Mitchell International Discount Tire Nokia Siemens Networks SEI Global Services ValPak...and more 39
40 Business Results John Deere ISG Field Issue resolution time: down 42% Warranty Expense: down 50% Time to production: down 20% Time to market: 20% faster Employee engagement: Up 9.8% More responsive to market changes and customer demands Development teams more engaged, empowered Productivity up 20-50% Significantly improved Product Management-Development teamwork Higher returns, reduced investments in unfinished or unshipped work Source: Chad Holdorf, John Deere, Intelligent Systems Group. Dallas, Texas Presentation, Dec 2011 Source: QSM Associates Press Release, Sep,
41 Business Results Productivity has increased by at least 20-25% Time to market and level of quality has increased dramatically Nearly zero defects after each tire store system release No additional headcount and we're taking on more than we ever have March 12, 2012 News Release TradeStation Receives Highest Rating In Barron s Magazine s Annual Ranking of Online Brokerage Firms Best Trading Experience and Technology Higher star-rating than 23 other offerings leading brokers, including TDAmeritrade, Charles Schwab, Fidelity, E*TRADE Source: Chris Chapman, Director of Product Development, Discount Tire Source: Keith Black, CTO and VP, Product Development, TradeStation Technologies 41
42 SAFe Delivers Business Results Significant increase in employee engagement - John Deere Agile teams average 37-50% faster to market QSM research We experienced a 20-50% increase in productivity BMC Case Study Our agile programs introduced 50% less defects into production Confidential 42
43 Questions? Special offer for Agile Auckland! Limited spaces available for SPC Training and Certification course next week in Auckland. Contact Gillian Clark, Assurity for $600 off the list price of $
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