1. IBM Corporation The Journey to Agile IntegratedSocialSimple June 30 th, 2015 Bob Bergemann reberge@us.ibm.com CIO Fulfillment Transformation & Operations 1 North Carolina Triagile McKimmon Center N. C. State University © 2016 IBM Corporation

2. Technology Shifts The New IBM Cultural Change The CIO Organization Transition to Agile Communication Organization Environment Education Tooling Measurements Progress The Journey Continues The Journey to Agile 2 Agenda

3. The Journey to Agile “Things have never moved so fast…. Things will never be this slow again” Technology is rapidly shifting.. Mobile devices & anywhere access Hardware, Software & infrastructure as a service Digitalization of everything Cloud computing Internet of things Cognitive and analytics Collaboration & social networking © 2016 IBM Corporation

4. 4 The New IBM…….. The only thing not changing is our values The Journey to Agile Organized by brand & product Maturing offerings Matrixed skills Rigid structures Overly complex Industry solution focused Cognitive - Watson Digital Cloud Analytics Mobility & Social Partnerships ie: Apple Acquisitions ie: The Weather channel Continuous delivery & simplified solutions enabling strong client partnerships Business & Cultural Change © 2016 IBM Corporation

5. Agile is a cultural change - Tops Down & Bottoms up “ In everything we all do, it's all about working in an agile way... envisioning an outcome, prototyping, iterating, multi-disciplinary teams... we do that in many parts of IBM today, but we're scaling it at an enterprise level.” - Ginni Rometty “ 5 The Journey to Agile Scaling at a size, rate & pace that is unprecedented © 2016 IBM Corporation

6. 6 “In 2015 we focused on creating a productive environment for IBMers with initiatives.” “In 2016, we're going to build on our learnings and continue our journey to creating an Agile Culture admired and envied by others” The Journey to Agile IBM CIO - IBM’s Role model for cultural change Collaborative Iterative and fast Empowered and self-directed teams Focus on the customer and business value Flexible, adaptive and continuously improving “Agile is not done to you. It’s not a program or an edict that gets checked off. It’s a frame of mind and a frame of reference for how we work - together - across IBM, a fundamentally new approach to enable us to respond to the opportunities and challenges that lay ahead of us.” “Becoming agile isn’t easy - if it were, everyone would be doing it. The established way of doing things brings order, change brings the unknown. What made IBM successful will not keep us successful in an era where data, cloud and engagement are fundamentally transforming industries and businesses. ” © 2016 IBM Corporation

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8. Agile Communication OrganizationEnvironment Education Tooling Measurements 8 CIO Agile Transformation Identify what best looks like Cluster work & create self directed teams Deploy the best organization model to create a productive work environment Focused CIO initiatives in key areas to create the environment that will rapidly incubate and drive cultural change. The Journey to Agile © 2016 IBM Corporation

9. 9 Senior Executive Sponsorship Corporate wide commitment Executive level agile appointments Agile Visualization Boards Personal Blogs Site Visits Feedback The Journey to Agile Communication Continuously getting the message out with full backing is key © 2016 IBM Corporation “Visualize the Work ”

10. Application, development & infrastructure teams combined into single CIO VIO structure Agile organization structures designed and implemented. Tribes, squads, chapters, guilds around the globe Squad iteration and supporting manager roles to encourage self direction Supporting roles ( PM’s, Mgrs., compliance, etc. ) reduced or eliminated Job roles standardized Open landscapes, whiteboards, video, Mac & smart apps deployed Performance evaluation programs changed The Journey to Agile Redefining the organization to enable agile Organization © 2016 IBM Corporation

11. 11 Over 17k employees across the globe in hundreds of locations who were heavily matrixed and not time zone aligned. Analysis completed and decisions taken to focus on 13 primary sites for current and future investment Capital dollars appropriated to renovate to open landscape Video implemented to bridge distances All squads identified anchor locations to house defined agile roles with colocation metrics and transition plans. Interim activities to realign to time zones and improve work time alignment The Journey to Agile Global focus on agile environments & colocation Environment © 2016 IBM Corporation

12. 12 The Journey to Agile Providing education and training © 2016 IBM Corporation Education Created the “Agile Academy” on line education forum Employed Design thinking approach to create training & drive transformation Employed experienced consultants/experts to deliver Executive & senior level training & planning Created on line courses and materials Delivered live and video stream training Created mandatory & growth education curriculums Created “agile coaches” to work with teams Designed “agile maturity assessments” to chart progress

13. 13 “Project Whitewater” team created to identify and rapidly deploy tools to enable Agile and continuous delivery. Focus on existing and affordable broadly used tools Cloud development environments Mural Rational Team Concert (RTC) GitHub Slack Rational test/build UrbanCode License fees negotiated globally to reduce costs The Journey to Agile Providing the mechanisms and plumbing Tooling © 2016 IBM Corporation

14. 14 Focus on reviewing and eliminating traditional, duplicate and unneeded metrics…measure what matters Elimination of burdensome compliance metrics Iteration manager roles focus on work walls, standups and retrospectives Standardized agile metrics created and implemented using standard tools ie: (RTC) New metrics created for throughput and velocity Evolving to burn rate & other measures Metrics focus on “how do we get better” The Journey to Agile Creating agile metrics to measure what matters Measurements © 2016 IBM Corporation

15. 15 Working Well: We speak and are thinking agile. We move faster and course correct We have sponsored “Agile 24” events – 24 hour rapid development competitions to empower teams, encourage creativity & develop new products Colocation initiatives are paying off in continuous and faster delivery Product owners are engaged and learning. We are learning to prioritize & say NO & work not within our capacity limits Maturity assessments are showing that we getting the hang of it The CIO Role model is spreading across the business Our clients are noticing Puzzling: VIO integration on a global scale has many challenges Simplifying compliance and development standards Adopting simplified finance and capacity funding models. Overall: We have paid the tolls, are well under way and course correcting, but we have not yet crossed the bridge. The key is to get started and keep going. The Journey to Agile So how’s it going? © 2016 IBM Corporation

16. 16 The IBM Agile Road ahead of us... Faster speed to market Demonstrated continuous delivery New & evolving partnerships Outcomes that matter Agile culture across the corporation …… and the road is often unpaved The Journey to Agile © 2016 IBM Corporation

17. 17 The Journey to Agile

18. © 2016 IBM Corporation