Development Strategy for Engineering Going Forward at Pitney Bowes Sue McKinney Vice President, Engineering Pitney Bowes Incorporation

challenges strategic directions summary tools

successful business?

 Sustainable  Competitive advantage sustain a competitive advantage

consistently deliver business value

business challenges

 Build Trust? deliver the right product

in the optimal market windows

 At the lowest cost lowest cost

and …

increase productivity

Protect Team Boundaries meet customer’s changing needs

develop great solutions

 Leadership Influence innovate!

software challenges

business dynamics innovate to differentiate responsiveness tighter linkage to customers time to value

operational dynamics predictability of schedules quality better use of resources improve product development cycles

Always or Often Used: 20% Never or Rarely Used: 64% Standish Group Study, reported by CEO Jim Johnson, XP2002 Sometimes 16% Rarely 19% Never 45% Often 13% Always 7%

Project Statistics Standish Group Study, reported by CEO Jim Johnson, CIO.com, ‘How to Spot a Failing Project’

Improvements due to better…  Tools  Project Managers  Adaptive Methods  Breaking projects into small chunks  Delivering pieces faster for user feedback

too much churn

Lead change Less waste Respond to market changes

complexity split teams & multiple locations multiple time zones interdependent products acquisitions

Uncertainty market uncertainty technical uncertainty project duration

how ?

Trust do more smart stuff

… and less stupid stuff.

process to deal with complexity

tools coupled with best practices

 Self-organizing, self-managing  Do we need leaders?  What kind of Leadership? what about agile? what is that?

Provide Capacity Gain Create Market Opportunities Improve Customer Satisfaction Prevent / Reduce Business Costs Cost Avoidanc e (i.e. avoid new expenses) Waste Avoidance (i.e. eliminate current expenses) Productivity Gain (i.e. do things faster) 3 atomic elements: Increase Revenues / Profits Analysis through Value Stream Mapping technique E 2 Framework elements

Products & HC/Product improving Product deliveries Brand W Products Brand T Products Brand W HC/productBrand T HC/product

Hc / Product GA SWG Average doing More with Less

improving Bottom line Growth Effectiveness $$ per HC SWG Average $K / HC

take risks

 Get more done by doing less support

the approach

empower educate enable

 Sustainable  Competitive advantage focus on business results

laying the Foundation for Measurements team Productivity Quality Stakeholder Satisfaction cost of Development

use Agile and…

vision and strategy

Project Management  Focus, Communication, and Expectation Management communication

empowerment

give and re- enforce ownership

teams figure out how

make better decisions with less churn

Purpose Considerations Costs and Benefits Business Value Model

it’s a conversation

resolve differences

group chunks high – medium - low

What are your largest value chunks?

what can you defer ?

“build” a chunk …

at the end of the “chunk”

did the value inputs change?

adjust BV model run the chunk features thru model

now you can ask…

Do we have enough business value to go to market?

Should we continue?

What goes in the next cycle or chunk?

run candidate features thru model re- prioritize

value Model objectives / projects / ideas Value Model prioritized chunks build highest value chunks Do we have enough value to deploy? deferred Will we ever have enough value to deploy? STOP Yes No Adjust value model if inputs have changed

discovery Parting Thoughts ……

summary

time saved productivity improved

risk management cannot be siloed

Thank You!

step up without stifling innovation keep focus step back and

Project Management  Remove Obstacles remove obstacles

influence not authority

results applying collaborative leadership

leaders empowered to change within scope of influence

Summary building Trust across distributed teams

collaborating to set goals

keeps focus through questions

Leadership Role project experiences

foster innovation collaborative leadership enables us to …… stand back and deliver. the answers are in your organization. make better decisions deliver more value increase productivity empowered to solve problems unleash talent foster innovation

Work with corporate HR, learning and values team. cultural collaboration integration

Project Methods  Waterfall:  Function Definition, Design, Build, Check Functions Design Build CheckDone  New Methods:  Single Cycle Review and Adjust  Spiral: Multiple Cycles of Waterfall  Agile: Adapt As You Go: Short Iterations

What is Agile? From recognition and acceptance of increasing levels of unpredictability in our turbulent economy  A chaordic perspective  Collaborative values and principles  Barely sufficient methodology - Jim Highsmith

What is Agile?  A development process that conforms to the values and principles of the Agile Alliance (agilealliance.org)  Originally for software development

Agile Manifesto While there is value in the items on the right we value the items on the left more.  Individuals and interactions over processes and tools  Working software over comprehensive documentation  Customer collaboration over contract negotiation  Responding to change over following a plan

Agile Overview Agile:  Iterative and Incremental  Light-Weight  Meets Changing Needs of Stakeholders  Highly Collaborative: Involves Customers  Minimizes Documentation  Test First

Agile Principles

Light Weight  Utilize only practices that make sense for the project and environment  “Barely sufficient” artifacts, methodology, and documentation  “Appropriate” vs “Best Practices”

Practice Excellence  Requires self discipline to improved quality  Relies on the team to practice technical excellence instead of imposing discipline  Adopt technical practices that support the other practices such as:  Continuous Integration  Test Driven Development  Refactoring

Reflect and Adapt  Learn from past to improve performance  Retrospectives after each iteration  Harness change for improved efficiency  Multi-Horizon planning allows adaptation

The Process Pendulum Code and FixWaterfallAgile No ProcessPrescriptiveEmpirical  Frequent inspection  Collaboration  Adaptive responses Prescriptive  Defined set of steps to follow  Plan the work, work the plan  Plan is assumed to be correct

How Does Agile Work?  “Requirements” called features, defined using user stories: As a _____ I want to_______ Pick a project. Define the major features in terms of user stories.

Agile ‘Process’  Features listed in a backlog  Backlog prioritized based on value  Highest priorities estimated and grouped into an iteration, one-four weeks long  At end of iteration, ask if enough value to go to market?  Add any new features to backlog and reprioritize and select next iteration

Project Methods Done? Planning Project Definition and Iterations Completed Deliverables Review and Adjust Implement  Envision  Iterate:  Plan  Implement  Done?  Adapt  Complete YES NO

Agile Cycles Vision Planning Develop Iteration Plan Review / Adapt Iteration Planning Iterations Plan High Level Planning Detailed Planning

Agile ‘Process’  Test cases are written first, before anything is developed  Go/no-go decisions reached early and often

Trustworthiness support from senior leaders

tools coupled with best practices