A comparison of lean and agile models at scale. How to Get on the Lean-Agile Highway?

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1 A comparison of lean and agile models at scale How to Get on the Lean-Agile Highway?

2 Why do companies move to agile Source: VersionOne 11 th Annual State of Agile Report

3 Weighted acceptance criteria for enterprise agility model Source: VersionOne 11 th Annual State of Agile Report

4 Main drivers Top three priorities Accelerate product delivery Enhance ability to manage changing priorities Increase productivity

5 Main drivers Value creation Cost or value creation? Accelerate product delivery Enhance ability to manage changing priorities Increase productivity Reduce project cost

6 Top three priorities Accelerate product delivery Main drivers Enhance ability to manage changing priorities Increase productivity LEAN AGILE LEAN-AGILE

7 Do not look at the people working, look at the progress

8 Process of new product delivery Once a year Business case 1 4 per year Slows everything down?

9 Product development in projects slows down by waiting Idea waiting to be explored and become project proposal Project proposals waiting for budget cycle (often once per year) Approved projects wait for project manager and team Tested programs wait for deployment into production Waterfall: Functional analysis waits for approval by business Technical design waits for peer review and approval Programs wait for testers

10 Product development in agile projects still waits a lot Idea waiting to be explored and become project proposal Project proposals waiting for budget cycle (often once per year) Approved projects wait for project manager to be assigned and team assembled Tested programs wait for deployment into production Agile project: Team delivers in iterations Waiting times largely eliminated

11 Maintain the teams between projects Idea waiting to be explored and become project proposal Project proposals waiting for budget cycle (often once per year) Tested programs wait for deployment into production Teams are longliving and take up work as it arrives Agile teams deliver in iterations

12 DevOps and frequent deployment eliminate more waiting Idea waiting to be explored and become project proposal Project proposals waiting for budget cycle (often once per year) Teams are longliving and take up work as it arrives Integrate DevOps and continuous deployment Agile teams deliver in iterations

13 Fund development capacity, not projects Idea waiting to be explored and become project proposal Teams are funded based on strategy Integrate DevOps and continuous deployment Teams are longliving and pull work in as it arrives Agile teams deliver in iterations

14 Ideas examined and approved in Portfolio process Examine ideas in a continuous Kanban flow Teams are funded based on strategy Integrate DevOps and continuous deployment Teams are longliving and pull work in as it arrives Agile teams deliver in iterations

15 Continuous and end to end flow increases speed of value creation Strategic themes translated into priorities Ideas examined and approved in Portfolio process Teams are funded based on strategy Integrate DevOps and continuous deployment Agile teams deliver in iterations Teams are longliving and pull work in as it arrives

16 Ability to react to changes in priority Upfront central decision Project scope Project budget Project manager

17 From fixed to flexible, responsive scope Responsive scope Product backlog Product demo s Product owner

18 Adaptive periodic planning Adaptive planning Periodic planning Agile team Scrum master

19 Increase productivity more value per effort and unit time Business case Single point solution Fixed scope Business case time independent

20 Do not build what is not used

21 Focus on value, not on cost Business case Keep alternatives open Do not build the useless parts Time to market matters

22 Be more productive without working harder People, not resources Stable teams Limit Work in Progress Do not waste talent

23 Top three priorities Accelerate product delivery Main drivers Enhance ability to manage changing priorities Increase productivity LEAN AGILE LEAN-AGILE

24 So what are some of the challenges here Move from Command and Control to decentralized decision making Replace yearly budget cycle with a more flexible system Make agile work at corporate level instead of just team level Integrate development and operations Make business and IT work together to create value for the customer

25 But what are they The next step in human evolution Or back to our genes as social animal Agile relies on self-governing teams Individualism Autonomy Mastery Purpose Or collective reponsibility Sense of belonging Responsible as a team

26 From Command and Control to decentralized decision making Engaging, great ideas, solo trip Management 3.0 Sociocracy Many people like the stories, shaky theory, great for Buddhists Reinventing organizations Many models, collaborative effort

27 Beyond budgeting principles of Leadership Purpose - Engage and inspire people around bold and noble causes; not around short-term financial targets Values - Govern through shared values and sound judgement; not through detailed rules and regulations Transparency - Make information open for self-regulation, innovation, learning and control; don t restrict it

28 Organisation - Cultivate a strong sense of belonging and organise around accountable teams; avoid hierarchical control and bureaucracy Beyond budgeting principles of Leadership Autonomy - Trust people with freedom to act; don t punish everyone if someone should abuse it Customers - Connect everyone s work with customer needs; avoid conflicts of interest

29 Compare results to competitors (significant KPI s)

30 Scaling agile Small scale (up to 8 teams): Nexus Scrum of Scrums LeSS (Large Scale Scrum)

31 Scaling agile Large scale (> 50 people): SAFe LeSS Huge DaD Spotify

32 Basically singleteam Scrum scaled up Up to a few thousand on one product LeSS Huge An organizational design framework Minimal additional structure

33 DaD: Disciplined agile (Delivery) Very complete set of practices Covering the entire organisation A rich library and publicly accessible It is hugely unfair that it is not more popular but it is not

34 Scaled (Lean)- agile Framework SAFe: Scaled Agile Framework Agile teams work together in lean product development constrained by system thinking

35 Freely available What is SAFe Best practices of lean-agile product development at scale (> 50 people) In a model

36 Spotify Spotify plays down the role of Scrum Master (team self-organizing), but calls for an Agile coach instead

37 Comparing SAFe and LeSS Huge Extrapolating Scrum to program level Fractal scaling: team collaboration Scrum of Scrums PO Sync PI Planning Iteration Planning Iteration Retro Daily Standup Backlog Refinement Iteration Review System Demo Inspect & Adapt Prepare for PI Planning

38 Comparing SAFe and LeSS Huge Roles at program level Scaled role

39 Comparing SAFe and LeSS Huge SAFe Portfolio level SAFe: optional Portfolio layer LeSS: No PMO, no portfolio (single product)

40 LeSS Huge caveats (in the view of a company developing multiple products to support its business) VERY team oriented major coaching effort Ambiguous attitude to Lean DevOps not integrated success of Toyota thanks to listening to the workforce reducing WIP will not automatically reduce average cycle time

41 More revolutionary than it looks SAFe caveats Role for management but important changes Managers try to map their role on the SAFe-model It is still a big transformation

42 DaD caveats Need very experienced guide Few people know DaD Very comprehensive, makes the transformation more complex

43 Spotify caveats Not a model, explicitly stated Developed in specific circumstances Companies want to adopt the Spotify model in order to become more like Spotify

44 Are very comfortable with Scrum Use Huge LeSS if you Believe profoundly that self-governing teams are all you need In real life Work on only one product Multiple products All others use SAFe (+ Spotify + DaD) A significant role for management Want end-toend flow

45 Questions?

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