Stop scaling Start growing an agile organization. agile42 the agile coaching company All rights reserved. Copyright

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1 Stop scaling Start growing an agile organization agile42 the agile coaching company All rights reserved. Copyright

2 Andrea Tomasini Agile Coach

3 What to scale?

4 Delivery Model? Organizational Structure? Teams and Processes?

5 Why to scale?

6 We need to scale agile because our projects are very large So why don t you make your projects smaller?

7 Corporate Hierarchy Compliance Individual

8 Agile Pilot Success! Teams demonstrated that Agile can deliver value faster, with higher quality, and is motivating Organizations are pressed into Agile, and react using a traditional approach...

9 The heart of an agile organization

10 Client & Value focus Self-Organization & Autonomy Iterative & Incremental change to reduce the risk Continuous Improvement

11 One size fits all? Not in practice but in Principles! New Organization (up to 60 people) Grown Organization (from 60 to 500 people) Corporation (from 500 to many thousands people)

12 Basic principles and recurring patterns for growing agile

13 1 st Principle: focus on small incremental changes Whenever changing from one way of working to another, we will go through a hybrid situation where the coexistence of two different ways generates attrition, duplications and other forms of waste. The awareness of this fact should push us in delivering changes fast and in small increments

14 The traditional approach to change management Design Documentation Rollout Fix Issues > 3-4 months t focused on standardization, before stabilization

15 The agile approach to change management Design Coach Design Coach Rollout Doc Rollout Doc Rollout Doc Rollout Doc Rollout Doc 12 weeks t focused on stabilization with emergent standardization

16 Agile Strategy Map Necessary Condition (NC): what is needed in order to fulfill the Success Factor Define the Goal we Goal PSF NC want to achieve Possible Success Factor (PSF) represents a hypothesis about a key factor that would enable us to achieve the Goal

17 Strategy Map from March 2014 The Goal for 2015 has been established The Transition Team identified at least 7 PSFs that would provide a powerful leverage to achieve the final Goal

18 Strategy Map June 2014 Break out groups worked on detailing the various PSFs into actionable experiments to validate the hypothesis for organizational improvement

19 2 nd Principle: focus on value and organize accordingly Focusing on value means to make sure that there are as few obstacles as possible in the direction of the value streams

20 The matrix organization Push in the lines PMO Sub System 1 Sub System 2 Sub System 3 Infrastructure Operations Project 1 Project 2 Project 3 Value Client Handovers and coordination optimized for utilization, not value delivery

21 The agile organization Pull on the streams Sub System 1 Sub System 2 Sub System 3 Infrastructure Operations Stream 1 Stream 2 Stream 3 Value Client optimized for value delivery and time to market

22 Opportunity Canvases to create context and focus on Customer Value Opportunity Name (title) Opportunity Owner (name) 1. Opportunity 2. Customer Segments 4. Benefits 5. Business Readiness 6. Measuring Success What is the problem to be solved? What type of customers & users will benefit from this solution? What are the benefits for the customers? What steps are required from the business side to be able to use this capability? What metrics will be best measure the success of the feature? 3. Possible Solution How is the customer solving the problem right now? What are the key points of a possible solution to the presented problem? 8. Costs Structure How does the cost structure look like for such a feature? One time, ongoing costs, contractors expenses, development costs? 7. Cost of Delay Which profile better represent the cost of delay (CoD)? 9. Value to Customer and Business What are the expected incremental revenue for selling this feature, and what are the strategic and tactical benefit? What are the intangible values (usability, performance, customer knowledge obtained...) Lean Portfolio Canvas have been created by agile42 and are licensed using Creative Common 3.0 with attribution (BY), non commercial usage (NC) and share alike (SA) options. You can reuse and modify the template, but you will always have to leave the logo on it.

23 Unified Portfolio and Program System to increase transparency, to visualize Customer Value and dependencies agile42 the We agile advise, coaching train and company coach companies building software All rights reserved. Copyright

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25 3 rd Principle: decentralize control whenever possible Decentralization of control and decision making, reduces the feedback loops, and enables faster reaction times. It requires defining containers for empowerment, to allow for autonomous decision making.

26 Information & power The hierarchical organization Requests Sub 1 Worker 1 Control! Authorization Centralized Control, ends up overloaded, introducing delays Worker 2 Sub 2 Sub 3 the design is based on mistrust

27 Information & power The agile organization Container for empowerment Worker 1 Worker 2 Decentralized Control reduces overhead, and encourage collaboration Worker 3 Collaboration the design is based on trust

28 Clear Policies describing the range of autonomy the teams have Both on the budget level, as well as on the expected delivery and preparation levels This level of transparency allows to build trust between Portfolio Management and self-organizing teams agile42 the agile coaching company All rights reserved. Copyright

29 Every team has two avatars to volunteer on upcoming Opportunities The Opportunity Owner will get in touch with the team to get their input and enrich the backlog

30 4 th Principle: avoid synchronization of flows unless necessary De-synchronization is unintuitive, but allows for parallel distributed work, without having to carry the excessive burden of coordination and handovers

31 The plan driven organization Synchronization of all Projects for a release, decreases efficiency and increases coordination costs Pm 3 Pm 1 Pm 2 Project 3 Project 2 Project 1 Release t fixed scope and fixed date

32 The agile organization De-synchronization of development teams to reduce cost of release Team 1 Team 2 Team 3 Feature A Feature B Feature D Feature E Team 4 Feature C Release Release Release Release Release t variable scope and variable date

33 Automated testing in short cycles Delivered serviceable Product in just 2 months Release incrementally, with higher quality

34 Continuos Integration & Delivery Switch from big product releases to incremental change, every feature is released on all platforms Focusing on one Feature at a time allowed for faster feedback also involving stakeholders was easier deliver fast to learn fast

35 5 th Principle: make your culture explicit Organizational culture exists, whether we acknowledge it or not, and making explicit allows for better alignment and context creation

36 This is how we do things around here Culture is the set of behaviors that have been established and accepted within an organization

37 Organization Cultural Profile (CVF) Internal focus & Integration Clan Hierarchy 50 Flexibility & Discretion Agile Values & Principles Ad-hocracy Market External focus & Differentiation Most of the organizations today have a strong Hierarchy oriented profile They struggle to introduce a more agile and lean approach to work, because the hierarchical culture is not supportive of agile values and principles 60 Stability & Control

38 Organization Cultural Profile (CVF) Internal focus & Integration Clan 60 Hierarchy Flexibility & Discretion Stability & Control Ad-hocracy Market External focus & Differentiation Most of the organization today have a strong Hierarchy oriented profile They struggle to introduce a more agile and lean approach to work, because the hierarchical culture is not supportive of agile values and principles To create the right context to move toward a more agile and lean culture, we need to transition toward Clan or Ad- Hocracy

39 If you can make culture explicit, you can agree where you stand, and where you want to go There are two ways of encouraging behaviours within an organization: 1. Story telling and role-modeling (e.g: empathy and tradition, walk the talk) 2. Ritualization (e.g: Scrum events, Ritual Dissent, Open Space)

40 Overall lessons learned Changes in behaviour happened thanks to focus on principles and values, the resulting emergent systems showed recurring and reusable patterns that may reproduce similar behaviours

41 Most significant Changes after 7 years through transition Commitment We have moved from the question are you committed? to how can we deliver? Distribution instead of hierarchy Planning/forecasting is distributed: many people do this from different angles (Strategy, Product Roadmap, Product Release, Feature, Sprint) Each party trusts the other that they do their part of the whole. Continuous flow of planning, follow-up and adaptation Collaboration instead of co-existence No contracts between parts of Ericsson Collaboration with a lot of interaction to drive alignment and by this enable autonomy. EDD Hendrik Esser Commercial in confidence Ericsson AB Page 2

42 Fast Lane PLC319F Lean transformation in practice Learnings Direct communication is the enabler for doing the necessary things at the right time Timeboxed development is mandatory to establish learning methods Ranked backlog / visualization creates unknown transparency on where we stand - over 7 teams, with more than 40 people Giving responsibility into the teams leads to outstanding engagement and results Thinking in customer value within each iteration gives us control on the functionality of our deliverables Page 14 MC Conference May 2014 Gunther Birk / I DT MC R&D 11 Restricted Siemens AG All rights reserved

43 Fast Lane PLC319F Adopting lean thinking to hardware development The Question How can we be sure, that our redesign will be o.k.?! Parallel Sourcing - Serial material - Testing Equipment - Rapid Prototypes Parallel Qualification - Typetest - Loadtest Speed-up by 40% Enhanced Quality Risk Exclusion - Execute Complete DVT - Evaluate Production process - Build up production samples Enhanced Design for Production Blog: LEAN@MC - english Blog Page 12 MC Conference May 2014 Gunther Birk / I DT MC R&D 11 Restricted Siemens AG All rights reserved

44 se As y eg rat St ss me n t Enterprise Transition Framework (ETF) Pilot Projects t u llo Ro agile42 the agile coaching company All rights reserved. Copyright

45 so what?

46 1. There is no blueprint for an Agile Organization, as from the moment you ll try to define one, it won t be Agile anymore! agile42 the We agile advise, coaching train and company coach companies building software All rights reserved. Copyright

47 2. Scaling the delivery model won t make your organization agile, you need to change the culture too! agile42 the We agile advise, coaching train and company coach companies building software All rights reserved. Copyright

48 3. Becoming an Agile organization should never be your goal, it is a means at best! agile42 the We agile advise, coaching train and company coach companies building software All rights reserved. Copyright

49 4. Becoming an agile organization is a team sport, and still everyone needs to start the change from within! agile42 the We agile advise, coaching train and company coach companies building software All rights reserved. Copyright

50 5. Experience shows that there are recurring patterns emerging by embracing specific principles so use them! At your own risk! ;-) agile42 the We agile advise, coaching train and company coach companies building software All rights reserved. Copyright

51 Thank You!

52 More food for thought...

53 Copyrights notice All material produced in this presentation is protected by the Creative Common License 4.0 (by-nc-sa). The brands and logos of agile42, Enterprise Transition Framework ETF ( Team Coaching Framework TCF ( and Agile Strategy Map ( are Copy Rights and Trademarks of agile42 GmbH, and agile42 International GmbH and can t be reused without written authorization