SMSWebinar2010 Wednesday3rdNovember

AchievingEnterpriseScaleAgilitywithLean
YourWebinarHost
P.GrantRule
g.rule@smsexemplar.com

ManagingDirector,SMSExemplarGroup,
SpecialistsinEecFveSystemsPerformance

www.smsexemplar.com

WebinarPresenter
AlanShalloway alshall@netobjecFves.com CEO,NetObjecFves www.netobjecFves.com

AlShall @NetObjectives.c om @alshalloway

Agenda

Enterprise Agility Lean thinking The Big Picture Where to start Summary

1. 2. 3. 4. 5.

Enterprise Agility Lean thinking The Big Picture Where to start Summary

The business case for agility Product portfolio management

thinking points

Enterprise Agility
Agility of entire
organizations Requires team agility

Economics of Responsiveness
Investment Period Payback Period Profit Period

Cash flow

Time
Breakeven First Release

from Denne and Cleland-Huang. Software by Numbers

Staged Releases
Investment Period Payback Period Profit Period

Cash flow

Investment Period

Payback Period

Release 1 Net Return

Release 2 Net Return

Time
Breakeven Point First Release Second Release

Staged Releases
Profit Period

Cash flow

Investment Period

Payback Period

Total Return

Time
Breakeven Point Investment

Increased Prot
Staged Releases
Cash flow

Breakeven

Single Release
Time

First Release

CONSIDER
Minimal Marketable Features
Can try out new ideas Get revenue faster Greater scheduling flexibility

Deliver in Stages when possible

focusing on the known, valuable features gives greater certainty produces greater value lowers risk of mis-building and over-building

Businessvaluerealized

release

release

release

PARETO

release

Businessvaluerealized

release

Time release

MINIMUM BUILD RELEASE

Businessvaluerealized

Time release

WATERFALL?

Businessvaluerealized

release

Time

BLEND

release

release

1. 2. 3. 4. 5.

Enterprise Agility Lean thinking The Big Picture Where to start Summary

Attending to time The Value Stream

thinking points

Lean Principle

Opportunity $$$ IdeaCost to Delivery Cost

Project Project Project Project Visioning Development Approval Approval Stafng

Project Project Project Project Support Support & & DeployDevelopment Stafng Deployment Feedback Feedback ment

BUSINESS VALUE
Give Feedback

Selecting what to work on

Developing It

PIPELINE

Concept
BusinessLeaders ProductManagers RegionalCoordinators Trainers&Educators

New Requirements

Customers

Business
Capabilities

ProductChampion(s)

Customer nt e m e g a M an Support
Software Product Software Shared Release Components
Shared Components

ConsumpFon

ProductRelated

ProductRelated

Development

Request

Approv e

Reqts

Sign Off

Analysis

Design

Review

Code

Test

Deploy

1. Identify the actions taken in the value stream

Request
0.5 hrs

Approv e
8 hrs

Reqts
160 hrs

Sign Off
8 hrs

Analysis
100 hrs

Design
120 hrs

Review
2 hrs

Code
280 hrs

Test
240 hrs

Deploy
8 hrs

1. Identify the actions taken in the value stream 2. Calculate calendar time for each action

Request
0.5 hr avg 0.5 hrs

Approv e
.1 hr avg 8 hrs

Reqts
60 hrs avg 160 hrs

Sign Off
1 hr avg 8hrs

Analysis
40 hrs avg 100 hrs

Design
40 hrs avg 120 hrs

Review
2 hrs avg 2 hrs

Code
80 hrs avg 280 hrs

Test
40 hrs avg 240 hrs

Deploy
3 hrs avg 8 hrs

1. Identify the actions taken in the value stream 2. Calculate calendar time for each action 3. Calculate time actually worked on the action

Request
0.5 hr avg 320 hrs

Approv e
.1 hr avg

Reqts
80 hrs 60 hrs avg 320 hrs

Sign Off
1 hr avg

Analysis
80 hrs 40 hrs avg

80 hrs

Design
40 hrs avg 160 hrs

Review
2 hrs avg 80 hrs

Code
80 hrs avg 80 hrs

Test
40 hrs avg 80 hrs

Deploy
3 hrs avg

1. Identify the actions taken in the value stream 2. Calculate calendar time for each action 3. Calculate time actually worked on the action 4. Identify time between actions

Request
0.5 hr avg 320 hrs

Approv e
.1 hr avg

Reqts
80 hrs 60 hrs avg 320 hrs

Sign Off
1 hr avg

Analysis
80 hrs 40 hrs avg

80 hrs

Design
40 hrs avg 160 hrs

Review
2 hrs avg 80 hrs

Code
80 hrs avg 80 hrs

Test
40 hrs avg 80 hrs

Deploy
3 hrs avg

20% rejected Repeat 1X

65% defective Repeat 3X

1. Identify the actions taken in the value stream 2. Calculate calendar time for each action 3. Calculate time actually worked on the action 4. Identify time between actions 5. Identify any loop backs required
November3,10

Request
0.5 hr avg 320 hrs

Approv e
.1 hr avg

Reqts
80 hrs 60 hrs avg 320 hrs

Sign Off
1 hr avg

Analysis
80 hrs 40 hrs avg

80 hrs

Design
40 hrs avg 160 hrs

Review
2 hrs avg 80 hrs

Code
80 hrs avg 80 hrs

Test
40 hrs avg 80 hrs

Deploy
3 hrs avg

20% rejected Repeat 1X

65% defective Repeat 3X

3433 hrs 1. Identify the actions taken in the value stream 2. Calculate calendar time for each action 3. Calculate time actually worked on the action 4. Identify time between actions 5. Identify any loop backs required Avg Time Worked 6. Calculate Process Cycle Efciency: Total Cycle Time

PCE =

509 hrs

= 14.9%

Request
0.5 hr avg 320 hrs

Approv e
.1 hr avg

Reqts
80 hrs 60 hrs avg 320 hrs

Sign Off
1 hr avg

Analysis
80 hrs 40 hrs avg

80 hrs

Design
40 hrs avg 160 hrs

Review
2 hrs avg 80 hrs

Code
80 hrs avg 80 hrs

Test
40 hrs avg 80 hrs

Deploy
3 hrs avg

20% rejected Repeat 1X

65% defective Repeat 3X

3433 hrs 1. Identify the actions taken in the value stream 2. Calculate calendar time for each action 3. Calculate time actually worked on the action 4. Identify time between actions 5. Identify any loop backs required Avg Time Worked 6. Calculate Process Cycle Efciency: Total Cycle Time

PCE =

509 hrs

= 14.9%

Request
0.5 hr avg 0.5 hrs 320 hrs

Approv e
.1 hr avg 8 hrs

Reqts
80 hrs 60 hrs avg 160 hrs 320 hrs

Sign Off
1 hr avg 8hrs

Analysis
80 hrs 40 hrs avg 100 hrs

Design
120 hrs

40 hrs avg

3433 hrs 1. Identify the actions taken in the value stream 2. Calculate calendar time for each action 3. Calculate time actually worked on the action 4. Identify time between actions 5. Identify any loop backs required Avg Time Worked 6. Calculate Process Cycle Efciency: Total Cycle Time

Time to Market The Core Lean Metric cycle time

80 hrs

Review
2 hrs

Code

Test

Deploy
8 hrs

160 hrs

2 hrs avg

80 hrs

80 hrs avg 280 hrs

80 hrs

40 hrs avg 240 hrs

80 hrs

3 hrs avg

20% rejected Repeat 1X

65% defective Repeat 3X

PCE =

509 hrs

= 14.9%

The Sales Value Stream

Sales
At start Sales: Sell fast! Devs: Deployment problems

Development
Afterwards Sales focus: # of successful deployments Customers happier 20% dev team improvement w/o touching dev teams

Deployment

Which gives a better return?

Request Request
0.5 hr avg 0.5 hrs 320 hrs

Approv Approve e .1 hr avg

.1 hr avg 8 hrs

Reqts
80 hrs 60 hrs avg 160 hrs 320 hrs

Sign Sign Off Off 1 hr avg

1 hr avg 8hrs

Analysis Analysis
80 hrs 40 hrs avg 100 hrs

80 hrs

Design Design
40 hrs avg 120 hrs 160 hrs

Review Review
2 hrs avg 2 hrs 80 hrs

Code
80 hrs avg 280 hrs 80 hrs

Test
40 hrs avg 240 hrs 80 hrs

Deploy Deploy
3 hrs avg 8 hrs

20% rejected Repeat 1X

65% 65% defective defective Repeat Repeat 3X 3X

3433 3433 hrs hrs 1. Identify the actions taken in the value stream 2. Calculate calendar time for each action 3. Calculate time actually worked on the action 4. Identify time between actions 5. Identify any loop backs required Avg Time Worked Worked Avg Time 6. Calculate Process Cycle Efciency: Total Time Total Cycle Cycle Time

PCE =

509 509 hrs hrs

= 14.9%

Value Stream

Now What?

when do you

know
you have all the pieces?

1. 2. 3. 4. 5.

Enterprise Agility Lean thinking The Big Picture Where to start Summary

Team agility is only part of the picture Big picture thinking is possible in Agile Failure modes of team agile What to attend to

thinking points

am s Te ces o Pr

Pareto vs Parkinsons

75%

of organizations using Scrum

will not succeed

in getting the benefits that they hope for from it.
Ken Schwaber

www.agilecollab.com/interview-with-ken-schwaber

WhY?

Maybe weve got the right solution

but the wrong problem

Why Scaling Doesnt Work

Starts at team level
May not be your problem. Providing customer and business value is #1.

Incomplete focus
What works at the team level is not what is needed at management and business level.

Lacks common vision

Need a common vision across the entire organization; development teams view does not provide this.

Legacy Organization: Matrix Resources to Projects

Project1 Project2 Project3 Project4 ProjectN

Lets Create a Pilot Project

Project1 Project2 Project3 Project4 ProjectN %

BusinessAnalyst,Architect,UsabilityExpert, Developer,Developer,Tester,Project ManagerExpert

Experiencehasshownthatifyou createacrossfuncFonalco locatedteamyouwillimprove3x withoutchangingyourprocess.

Whats Required
Proper selection & sizing
of projects Agile teams Coordination of teams Visibility

VALUE

MAKE

technic al

FLOW

MAKE
technic al

INCREMENTAL DELIVERY CREATIVELY SOLVING THEIR PROBLEMS QUALITY BUILT IN

VALUE
PRIORITIZATION BUSINESS ITERATIONS RELEASE PLANNING
technic al

FLOW
VALUE STREAM VISUALIZATION IMPEDIMENT IMPACT WORKFLOW AS PROCESS
WITH

ACCOUNTABILITY
MANAGE (LIMIT) technic QUEUES al VISUAL CONTROLS MANAGE FLOW (PROCESS)

1. 2. 3. 4. 5.

Enterprise Agility Lean Thinking The Big Picture Where to start Summary

Look at the value stream to decide One part affects others

thinking points

Where Should You Start Your Transition to Agile?

It Depends

What to Do
See what your
impediments are Address them Dont look just where the light is better

y a l e d s

thrashing
s t c e f e d
s t c e j o r p y too man

y t i c a p a c g n i d e e c ex

Concept
BusinessLeaders ProductManagers RegionalCoordinators

New Requirements

Customers

ConsumpFon
ProductChampion(s) Trainers&Educators

Business
Capabilities

Software Product
ProductRelated

Customer nt e m e g a an
Software Release
SharedComponents SharedComponents

Support

Managin g here

ProductRelated ProductRelated

Development

Can reduce induced waste here

Product Portfolio Management

1. 2. 3. 4. 5.

Enterprise Agility Lean thinking The Big Picture Where to Start Summary

Speed to Market Metrics Visibility Predictability

thinking points

Predictability
Improve your pre
cognitive abilities Lower the variation in your efciency

Thank You & Questions!

Register at www.netobjectives.com/register Contact me at alshall@netobjectives.com Twitter tag @alshalloway Download the recording from the webinar archive at: www.smsexemplar.com/library/webinars

copyright 2010 Net Objectives Inc.

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