WHY AGILE IS FAILING IN LARGE ORGANIZATIONS

twitter.com/mcottmeyer facebook.com/leadingagile linkedin.com/in/cottmeyer MIKE COTTMEYER

A BRIEF HISTORICAL PERSPECTIVE

s USAF & NASA X-15 hypersonic jet Iterative Incremental Delivery Hirotaka Takeuchi & Ikujiro Nonaka The New New Product Development Game Sutherland & Schwaber Scrum Framework DSDN Consortium Dynamic System Development Method Beck, Cunningham, Jeffries Extreme Programming Jeff de Luca Feature Driven Development Alistair Cockburn Crystal Methodologies Robert Charette Lean Development THE AGILE MANIFEST O Taiichi Ohno Toyota Production System Kanban HardwareSoftware

Individuals & interactions Processes & tools over Working software Comprehensive documentation over Customer collaborationContract negotiation over Responding to changeFollowing a plan over That is, while there is value in the items on the right, we value the items on the left more. We are uncovering better ways of developing software by doing it and helping others do it. Through this work we have come to value: Source: MANIFESTO VALUES

Satisfy the Customer Welcome Change Deliver Frequently Collaborate Daily Support & Trust Motivated Teams Promote Face-to-Face Conversations Deliver Working Software Promote Sustainable Pace Promote Technical Excellence Maximize Through Simplicity Have Self-Organized Teams Reflect & Adjust Regularly Source: MANIFESTO PRINCIPLES

BELIEFS ABOUT AGILE & TRANSFORMATION

CulturePracticesStructure BELIEFS…

CulturePracticesStructure Focused on changing hearts and minds Focused on being agile rather than doing agile Focused on values and principles CULTURE DRIVEN

CulturePracticesStructure Focused on changing hearts and minds Focused on being agile rather than doing agile Focused on values and principles Belief that delivery systems will emerge based on new thinking CULTURE DRIVEN

PracticesStructureCulture Focused on the things that you do Focused on roles, ceremonies, and artifacts Can be management driven or technically driven PRACTICES DRIVEN

PracticesStructureCulture Focused on the things that you do Focused on roles, ceremonies, and artifacts Can be management driven or technically driven Belief that agile is a process or way to work PRACTICES DRIVEN

StructureCulturePractices Focused on forming teams and governing the flow of value Focused on aligning the organization first STRUCTURE DRIVEN

StructureCulturePractices Focused on forming teams and governing the flow of value Focused on aligning the organization first Belief that culture and practices only emerge within a rational structural and planning framework STRUCTURE DRIVEN

CulturePracticesStructure... all three are essential, but where you start is also essential… WHERE TO START?

LEADINGAGILE THEORY OF TRANSFORMATION

Theory of Transformation Agile transformation begins by defining a rational system of delivery for the enterprise

Theory of Transformation True agility comes by breaking dependencies between teams across the organization

Theory of Transformation Healthy culture and solid practices emerge within a rational delivery framework

WHY AGILE WORKS

Team

User Story

Team Database Report Screen User Story

Team Database Report Screen User Story Clarity

Team Database Report Screen User Story Clarity Accountability

Team Database Report Screen User Story Clarity Accountability Measureable Progress

Team Database Report Screen User Story Clarity Accountability Measureable Progress Few if any dependencies

WHY AGILE WORKS AT SCALE

Team Database Report Screen User Story Clarity Accountability Measureable Progress

Team Database Report Screen User Story Governance Accountability Measureable Progress

Team Database Report Screen User Story Structure Measureable Progress Governance

Team Database Report Screen User Story Structure Metrics & Tools Governance

Team Database Report Screen User Story Structure Metrics & Tools Governance Teams have autonomy across the organization

WHY AGILE FAILS

Team Database Report Screen User Story

Team Database Report Screen User Story Lack of Clarity

Team Database Report Screen User Story Lack of Clarity Lack of Accountability

Team Database Report Screen User Story Lack of Clarity Lack of Accountability Lack of Measureable Progress

Team Database Report Screen User Story Lack of Clarity Lack of Accountability Lack of Measureable Progress Often caused by too many external dependencies

WHY AGILE FAILS AT SCALE

Team Database Report Screen User Story Lack of Clarity Lack of Accountability Lack of Measureable Progress

Team Database Report Screen User Story Lack of Governance Lack of Measureable Progress Lack of Accountability

Team Database Report Screen User Story Lack of Structure Lack of Measureable Progress Lack of Governance

Team Database Report Screen User Story Lack of Metrics & Tools Lack of Governance Lack of Structure

Team Database Report Screen User Story Lack of Metrics & Tools Lack of Governance Lack of Structure Too much coordination between teams

ORGANIZATIONAL BARRIERS TO AGILE

Team

Matrixed Organizations Team

Matrixed Organizations Non-instantly Available Resources Team

Matrixed Organizations Limited Access to Subject Matter Expertise Non-instantly Available Resources Team

Matrixed Organizations Limited Access to Subject Matter Expertise Non-instantly Available Resources Shared Requirements Between Teams Team

Matrixed Organizations Limited Access to Subject Matter Expertise Non-instantly Available Resources Too Much Work In Process Shared Requirements Between Teams Team

Matrixed Organizations Limited Access to Subject Matter Expertise Non-instantly Available Resources Too Much Work In Process Shared Requirements Between Teams Large Products with Diverse Technology Team

Matrixed Organizations Limited Access to Subject Matter Expertise Non-instantly Available Resources Too Much Work In Process Shared Requirements Between Teams Technical Debt & Defects Large Products with Diverse Technology Team

Matrixed Organizations Limited Access to Subject Matter Expertise Non-instantly Available Resources Too Much Work In Process Low Cohesion & Tight Coupling Shared Requirements Between Teams Technical Debt & Defects Large Products with Diverse Technology Team

Corollary One: Solving for the issues that get in the way of effectively practicing agile is what should guide your agile transformation initiative

MAPPING YOUR AGILE TRANSFORMATION

Predictability Adaptability

Predictability Adaptability Emergence Convergence

Predictability Adaptability Emergence Convergence

Predictability Adaptability Emergence Convergence AE PC

Predictability Adaptability Emergence Convergence AE PE PCAC

Predictability Adaptability Emergence Convergence AE PE PCAC Ad-Hoc

Predictability Adaptability Emergence Convergence AE PE PCAC Ad-Hoc Traditional

Predictability Adaptability Emergence Convergence AE PE PCAC Ad-Hoc TraditionalAgile

Predictability Adaptability Emergence Convergence AE PE PCAC Ad-Hoc TraditionalAgile Lean Startup

Predictability Adaptability Emergence Convergence AE PE PCAC Ad-Hoc TraditionalAgile Lean Startup Project

Predictability Adaptability Emergence Convergence AE PE PCAC Ad-Hoc TraditionalAgile Lean Startup Project Pilot

Predictability Adaptability Emergence Convergence AE PE PCAC Ad-Hoc TraditionalAgile Lean Startup Project Pilot

Predictability Adaptability Emergence Convergence AE PE PCAC Ad-Hoc TraditionalAgile Lean Startup Adopt Pilot

Predictability Adaptability Emergence Convergence AE PE PCAC Ad-Hoc TraditionalAgile Lean Startup LOB

Predictability Adaptability Emergence Convergence AE PE PCAC Ad-Hoc TraditionalAgile Lean Startup LOB Low Trust

Predictability Adaptability Emergence Convergence AE PE PCAC Ad-Hoc TraditionalAgile Lean Startup LOB Low Trust LOB Become Predictable

Predictability Adaptability Emergence Convergence AE PE PCAC Ad-Hoc TraditionalAgile Lean Startup LOB Low Trust LOB Become Predictable

Predictability Adaptability Emergence Convergence AE PE PCAC Ad-Hoc Lean/AgileAgile Lean Startup LOB Low Trust LOB Become Predictable

Predictability Adaptability Emergence Convergence AE PE PCAC Ad-Hoc Lean/AgileAgile Lean Startup LOB Low Trust LOB Become Predictable LOB Reduce Batch Size

Predictability Adaptability Emergence Convergence AE PE PCAC Ad-Hoc Lean/AgileAgile Lean Startup LOB Low Trust Become PredictableReduce Batch Size Fully Decouple

Corollary Two: Agile can mean different things to different companies and not all agile approaches will work well for every organization

INCREMENTAL AND ITERATIVE IMPROVEMENT

Predictability Adaptability Emergence Convergence AE PE PCAC Ad-Hoc Lean/AgileAgile Lean Startup Org Slice Low Trust Become PredictableReduce Batch Size Fully Decouple

Predictability Adaptability Emergence Convergence AE PE PCAC Ad-Hoc Lean/AgileAgile Lean Startup Org Slice Low Trust Become PredictableReduce Batch Size Fully Decouple Phase One

Predictability Adaptability Emergence Convergence AE PE PCAC Ad-Hoc Lean/AgileAgile Lean Startup Org Slice Low Trust Become PredictableReduce Batch Size Fully Decouple Phase One Phase Two

Predictability Adaptability Emergence Convergence AE PE PCAC Ad-Hoc Lean/AgileAgile Lean Startup Org Slice Low Trust Become PredictableReduce Batch Size Fully Decouple Phase One Phase Three Phase Two

Predictability Adaptability Emergence Convergence AE PE PCAC Ad-Hoc Lean/AgileAgile Lean Startup Org Slice Low Trust Become PredictableReduce Batch Size Fully Decouple Phase One Phase Three Phase Four Phase Two

Predictability Adaptability Emergence Convergence AE PE PCAC Ad-Hoc Lean/AgileAgile Lean Startup Org Slice Low Trust Become PredictableReduce Batch Size Fully Decouple Phase One Phase Three Phase Four Phase Two Phase Five

Corollary Three: Organizational change can be mapped out in such a way that outcomes are measureable and predictable and economically justified

DEVELOPING YOUR ROADMAP

Team Database Report Screen User Story Structure Governance Metrics & Tools

Team Database Report Screen User Story Structure Governance Metrics & Tools

Team Database Report Screen User Story Governance Metrics & Tools Structure

Team Database Report Screen User Story Governance Metrics & Tools Structure

STRUCTURE

Services Teams – These teams support common services across product lines. These teams support the needs of the product teams. Team

Product Teams – These teams integrate services and write customer facing features. This is the proto- typical Scrum team. Services Teams – These teams support common services across product lines. These teams support the needs of the product teams. Team

Programs Teams – These teams define requirements, set technical direction, and provide context and coordination. Product Teams – These teams integrate services and write customer facing features. This is the proto- typical Scrum team. Services Teams – These teams support common services across product lines. These teams support the needs of the product teams. Team

Portfolio Teams – These teams govern the portfolio and make sure that work is moving through the system. Programs Teams – These teams define requirements, set technical direction, and provide context and coordination. Product Teams – These teams integrate services and write customer facing features. This is the proto- typical Scrum team. Services Teams – These teams support common services across product lines. These teams support the needs of the product teams. Team

Product & Services Teams

Team Product & Services Teams Program Teams

Team Product & Services Teams Program Teams Portfolio Teams

GOVERNANCE

Team Product & Services Teams Program Teams Portfolio Teams

Product & Services Teams Scrum Team Program Teams Portfolio Teams

Product & Services Teams Program Teams Portfolio Teams Scrum Kanban Team

Product & Services Teams Program Teams Portfolio Teams Scrum Kanban Team

METRICS

Product & Services Teams Program Teams Portfolio Teams Scrum Kanban Team

Product & Services Teams Program Teams Portfolio Teams Scrum Kanban Team Backlog Size Velocity Burndown Escaped Defects Commit % Ratio Acceptance % Ratio Scope Change

Product & Services Teams Program Teams Portfolio Teams Scrum Kanban Team Cycle Time Features Blocked Rework/Defects Backlog Size Velocity Burndown Escaped Defects Commit % Rate Acceptance % Ratio Scope Change

Product & Services Teams Program Teams Portfolio Teams Scrum Kanban Backlog Size Velocity Burndown Escaped Defects Commit % Ratio Acceptance % Ratio Scope Change Cycle Time Features Blocked Rework/Defects Takt Time/Cycle Time Time/Cost/Scope/Value RIO/Capitalization

Corollary Four: Organizational constructs, governance models, metrics and controls can be established without violating the principles of agile

INCREMENTAL TRANSFORMATION

Product & Services Teams Program Teams Portfolio Teams Scrum Kanban Team Agile Pilot Increment One

Product & Services Teams Program Teams Portfolio Teams Scrum Kanban Team Agile Pilot Increment One Agile Rollout Increment Two

Product & Services Teams Program Teams Portfolio Teams Scrum Kanban Team Agile Pilot Increment One Agile Rollout Three - N

ITERATIVE TRANSFORMATION

Product & Services Teams Program Teams Portfolio Teams Scrum Kanban Team Agile Pilot Iteration One

Product & Services Teams Program Teams Portfolio Teams Scrum Kanban Team Agile Pilot Iteration Two

Product & Services Teams Program Teams Portfolio Teams Scrum Kanban Team Agile Pilot Iteration Three

Product & Services Teams Program Teams Portfolio Teams Scrum Kanban Agile Pilot Iteration Four Team

Product & Services Teams Program Teams Portfolio Teams Scrum Kanban Agile Pilot Iteration Five Team

ITERATIVE & INCREMETNAL CHANGE

Product & Services Teams Program Teams Portfolio Teams Scrum Kanban Agile Pilot Iteration One Team

Product & Services Teams Program Teams Portfolio Teams Scrum Kanban Agile Pilot Team Iteration Two

Product & Services Teams Program Teams Portfolio Teams Scrum Kanban Agile Pilot Iteration Three Agile Rollout Iteration One Team

Product & Services Teams Program Teams Portfolio Teams Scrum Kanban Agile Pilot Iteration Four Agile Rollout Iteration Two Team

Product & Services Teams Program Teams Portfolio Teams Scrum Kanban Agile Pilot Iteration Five Agile Rollout Iteration Three Team

Corollary Five: Organizations can adopt agile safely and pragmatically by iteratively and incrementally introducing structure, governance, and metrics and maturing practices and culture over time

SUMMARY

Theory of Transformation Agile transformation begins by defining a rational system of delivery for the enterprise

Theory of Transformation True agility comes by breaking dependencies between teams across the organization

Theory of Transformation Healthy culture and solid practices emerge within a rational delivery framework

Corollary One: Solving for the issues that get in the way of effectively practicing agile is what should guide your agile transformation initiative

Corollary Two: Agile can mean different things to different companies and not all agile approaches will work well for every organization

Corollary Three: Organizational change can be mapped out in such a way that outcomes are measureable and predictable and economically justified

Corollary Four: Organizational constructs, governance models, metrics and controls can be established without violating the principles of agile

Corollary Five: Organizations can adopt agile safely and pragmatically by iteratively and incrementally introducing structure, governance, and metrics and maturing practices and culture over time

Summary By focusing on the fundamentals of agile delivery, while systematically and methodically breaking dependencies, we can achieve true enterprise agility

WHY AGILE IS FAILING IN LARGE ENTERPRISES …and what you can do about it